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Author: Admin | 2025-04-28
Data mining, statistical analysis, predictive modeling, and the like, but is focused on driving better business decisions.4.What is the difference between business analytics and business intelligence?Business analytics and business intelligence (BI) serve similar purposes and are often used as interchangeable terms, but BI can be considered a subset of business analytics. BI focuses on descriptive analytics, data collection, data storage, knowledge management, and data analysis to evaluate past business data and better understand currently known information. Whereas BI studies historical data to guide business decision-making, business analytics is about looking forward. It uses data mining, data modeling, and machine learning to answer “why” something happened and predict what might happen in the future.Business analytics techniquesAccording to Harvard Business School Online, there are three primary types of business analytics: Descriptive analytics: What is happening in your business right now? Descriptive analytics uses historical and current data to describe the organization’s present state by identifying trends and patterns. This is the purview of BI.Predictive analytics: What is likely to happen in the future? Predictive analytics is the use of techniques such as statistical modeling, forecasting, and machine learning to make predictions about future outcomes.Prescriptive analytics: What do we need to do? Prescriptive analytics is the application of testing and other techniques to recommend specific solutions that will deliver desired business outcomes.Simplilearn adds a fourth technique: Diagnostic analytics: Why is it happening? Diagnostic analytics uses analytics techniques to discover the factors or reasons for past or current performance.Examples of business analyticsSan Jose Sharks
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