Data Analytics vs. Business Analytics
Data has transformed the world and is powering decision-making in industries. From higher institutions to tech firms, government agencies to non-profits, data has helped organisations to boost sales, launch new products and services, expand operations, and increase efficiency. This is the simple reason why organisations have embraced both data analytics and business analytics. While the two are often used interchangeably, there are significant differences. This article will make a comparison between data Analytics vs. business Analytics; relax and read further.
What is Data Analytics?
A data analyst focuses on collecting, analysing and processing data with the primary aim of getting insights that can help businesses and organisations grow. Data analytics can be carried out using:
- Machine Learning: This makes use of statistical probabilities to teach computers to process data more quickly.
- Predictive analytics: This helps aggregate and analyse historical data to help organisations make better-informed decisions.
- Data Mining: This involves examining and sorting large data sets to identify patterns, relationships and trends.
- Big data analytics: This brings everything together; it applies predictive analytics, machine learning, and data mining to transform data into business intelligence.
What is Business Analytics?
Business analytics is deeply about boosting efficiency and solving problems using managerial strategies, data-driven insights and effective communication. It’s all about utilising data to make practical, concrete decisions for an organisation.
There are three major types of business analytics. These include predictive analytics, prescriptive analytics and descriptive analytics. Descriptive analytics evaluates historical data for insights on a plan. Predictive analytics uses statistical techniques and machine learning to help businesses predict future events. Prescriptive analytics provides possible actions to take based on the outcomes of predictive and descriptive analytics.
Comparison between Business Analytics and Data Analytics
- Data source: For business analytics, the data sources are defined in advance based on the project goals. However, for data analytics, data sources are defined on the go as correlations are uncovered.
- Approach: Data analytics are typically more predictive and are majorly about answering questions to discover new insights to gain a competitive advantage. However, business analytics is more descriptive and retrospective. It largely involves defining goals and requirements for the project.
- Team members: Business analytics involves an analytics manager, data warehouse engineer, and business analyst. Data analytics simply requires a data analyst.
The reality is that every organisation, from new startups to already established global companies, needs to leverage data for business growth and innovation. Both data analytics and business analytics share the same goal of optimising data to solve problems and improve efficiency, but with a few fundamental differences.
Regardless of the path you choose as a company, you will need to collect relevant data from trusted sources fast and without stress. At Axual, we can help you speed up your analytics process to be able to make effective business decisions at the right time. You don’t need to go through any hassle as our team has several decades of experience with competence in data and business analytics. Let’s get started now!
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