BI, BA & AA: Väljer du rätt analysmetod?

Business Intelligence, Business Analytics and Advanced Analytics are three different tools for digital data analysis. See the differences and benefits here.

Data analytics has become central to modern companies, and there are many good reasons for this. First and foremost, it is now easier than ever to send relevant information to analysis tools, which quickly generate reports and make it more transparent to make decisions with a qualified and knowledge-based basis.

Three methods differ from the crowd, Business Intelligence, Business Analytics and Advanced Analytics. But there can easily be doubt as to which method produces the desired result. Therefore, we present here the most important differences between the systems and their respective benefits.

Business Intelligence: What is happening right now?

Business Intelligence is about collecting, consolidating and reporting data as a basis for making better decisions about the business in question. Business Intelligence delivers value by filtering large amounts of data about processes going on here and now. Thus, it is very much about analyzing and finding faults in ongoing business processes, whether in production, e-commerce systems or financial transactions.

Example: A larger organization with many departments and sales channels traditionally uses manual methods to collect sales data. With BI, the collection of this data can be consolidated, rectified, implemented in real time and extracted into clear reports so that you can, for example, act quickly in the event of deviations. BI can save your organization a lot of manual work and optimize the ability to make informed and updated decisions – for example, if stocks are running low or if there are unusual things in the finance department that you should know about and maybe fix.

Business Analytics: What will happen tomorrow?

Business Analytics (BA) is an analysis that is on top of Business Intelligence and works in the longer term. Simply put, BA can analyze the results that BI produces. Another way to see it all is that BI is suitable for keeping an overview of what is happening here and now. BA, on the other hand, can give an idea of ​​why it happened, and whether it is likely to happen again. BA thus uses existing data to predict future patterns, opportunities and risks, so that the organization can adjust its strategy and be prepared. Business Analytics is based on large amounts of data – Big Data – used to identify and present contexts that are often impossible for human analysts to identify.

Example: A service company that delivers thousands of meals daily to business customers would like to reduce waste and increase sales with the help of BA. This is done, for example, by analyzing historical data on customer patterns, seasons, response to menus, etc. to optimize workflow. At the same time, the company can more accurately predict the quantities to be produced, optimize future purchases and minimize waste.

Advanced Analytics: How do you act optimally?

Advanced Analytics – popularly – takes Business Analytics to a new level. This is not just about insights and predictions based on existing data. With advanced technology such as machine learning, artificial intelligence and semantic analysis, Advanced Analytics can work with think-about scenarios and also support a certain degree of automatic decision-making.

Example: A worldwide shipping company started feeding its Advanced Analytics systems with external data on traffic in ports and weather forecasts. The new data sources created a much more complete digital overview of the business and could help explain both the causes of past problems and plan future routes. In addition, today the company can even more accurately calculate the consequences of establishing routes to new ports, and Advanced Analytics can present optimal transport routes based on thousands of data points.

Better decisions at all levels

In a nutshell, you can put it like this:

  • Business Intelligence provides insight and the ability to act quickly on real-time data in existing installations
  • Business Analytics offers more basic analytics that can point out patterns and relationships in the future. These can then form the basis for decisions on new strategies, production organizations and market opportunities
  • Advanced Analytics goes through data at an even deeper level and can propose changes to the business structure, anticipate changes in the market and use existing data to analyze conceivable scenarios and optimize actions.

Read more: Better decision-making with Business Analytics

Read more: 3 tips from the IT manager: Digitize with Advanced Analytics

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