Data Analytics vs. Business Analytics: All You Need to Know

Today, the number of people using the internet for information on different products and services continues to increase with each passing day. As a result, business-related data or information present currently is enormous. Finding the right way to analyses, develop it into information that is useful for the business is the work of data analysts and business analysts. 

However, at a deeper level, the two have distinct functionalities when it comes to data available for their use. These responsibilities help in differentiating their roles, especially in corporate business setups. As a result, it is essential to be conversant with the expectations of each and have all that you need to know at your fingertips!

 

Definitions 

Business analytics explores the use of data, technology, past company actions or data on performance and operations and comprises of continuous investigations of the data. It aims at developing an insight into business planning to learn better and more efficient ways to aid the business. 

Data analytics is the process of using raw data from different business areas, identifying any form of patterns it may have, introducing other variations and observing changes or transformations of the original data set, and finally developing reports and presentations with this as their base. The work with raw data and establish trends and other metrics. As a result, it is essential in optimizing business processes and improving the corporate business system efficiency levels.

 

Both business and data analytics employ:

  • Management knowledge in providing a suitable decision for businesses to take.
  • Descriptive analysis to understand the company’s past actions and consequences of the same.
  • Predictive analysis using different technological innovation to help determine the future’s possible outcomes and alternatives.
  • The prescriptive analysis which allows aid to optimize the results of decisions it recommends after review.

Here are the significant differences between data analytics and business analytics. 

 

Goals 

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By using data analysis for management, data analysts are responsible for identifying and recognizing different patterns in the given dataset. From the set, their goal is to make accurate predictions after mining, cleaning, transforming, and drawing conclusions from the data set. They provide reports to the business, which makes a basis on which the company makes its decisions independently from the data analysts. 

 

On the other hand, business analytics aims at identifying trends and how better to optimize them for better performance levels of the business. For instance, if the data from a coffee shop indicates that people tend to take more cappuccino than regular coffee. The business analysts aim to optimize information on cappuccino to increase sales, improves business service delivery of the beverage, among others.  

 

Continuity and Progression 

Data analytics provide an answer to a query, and once the data set transformations are complete, their involvement in company activities ends with the submission of their report. The data set manipulation and how best it can serve the business is a one-time thing and lacks continuity. Besides, it aims at offering different probability outcomes for your business and not a single version of the actual outcome. As a result, the probabilities come with alternative findings indicating what to try if one solution does not work. 

Business analytics, on the other hand, aims at providing continuous support, both technologically and through the business implementation of any changes they suggest. They offer the opportunity to learn and assess the developed models during their implementation stage in the business. As a result, they provide and support new ways to improve and enhance a process model under implementation continuously. Business analyst’s aim at reaching a predefined goal or a single truth in regards to the business. 

 

Data 

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Business analytics use predefined data from business or corporate organizations. The goals and objectives of the data are readily available. Based on these targets, data analysts have to examine and learn the truth from the data sources they have at their disposal. 

Data analysts, on the other hand, are freer and independently in regards to their data sources. However, some organizations may issue predefined data and goals to the data analysts. The difference is in their ability to incorporate other data sources on the original data set and analyzing the transformations that may occur. They indicate the different data correlations and develop their decisions from such data interactions

 

Approaches 

Business analysts use a retrospective view to define company goals and objectives of the analysis. Similarly, they are highly descriptive in their data analytics, especially in regards to the projects and programs in hand. Their approach aims at:

  • Analyzing the overall business or company requirements or needs.
  • Taking the business case study or data and conducting an in-depth definition.
  • Speaking and interacting with the business, organization or company’s executive, employees and other stakeholders for information on the subject.
  • Developing models based on information gathered and data provided. 
  • Conducting validation tests of different solutions, they identify and reviewing possible hiccups through project or program management. 
  • Developing the project and implementing it through the business.
  • Testing project quality and continuously improving its performance.

 

Data analytics aims at providing more prescriptive and predictive outcomes of the task at hand. They strive to deliver futuristic answers to current and future probabilities, as identified in the data analysis they complete. Data analytics aims at giving your business a competitive advantage over other firms in the industry. Their approach is:

  • Independent with no interactions with other people or business stakeholders.
  • They collect data, organize, interpret, conduct in-depth study/analysis, develop solutions according to the report, and apply the data statistically to determine the outcomes of each. 
  • They conduct research, interpret and extrapolate data and conduct projections and reach other advisory goals for the business using provided data.
  • As experts, they can find and troubleshoot different challenges that come with the business systems to improve performance levels.

 

Conclusion 

Deciding what to take between data analytics and business analytics can be a daunting task. Even though in small businesses, the two can work in any area, in established corporate organizations, the functions of either are entirely different. Therefore, selecting what you want to do in the future lies in what interests you the most, Data Analytics or Business Analytics!