You’ve probably heard the terms data and business intelligence (BI) thrown around a lot, but what do they mean? And more importantly, what’s the difference between the two?
Data is information that has been collected. This can be anything from customer purchase records to website traffic data. On the other hand, business intelligence is the process of turning that data into insights. So, data is the raw material, and business intelligence is turning it into something useful. Simple, right? Let’s look at each term to see what it entails.
What is data?
As we mentioned, data is simply information that has been collected through a variety of means. Data can be either structured or unstructured. Structured data is information that can be easily organized and processed, such as customer purchase records. Unstructured data is more difficult to organize and process such as social media data. The data is then typically stored in a database, a computer system designed to store and retrieve data.
What Is Business Intelligence?
Business intelligence (BI) converts data into insights by heeding the following steps:
Data Collection And Storage
As mentioned earlier, you can collect data through various means, such as surveys, customer purchase records, website traffic data, social media data, and so on. Once data has been collected, it needs to be stored in a database.
Data Processing And Analysis
The next step is to process the data to be analyzed. This usually involves cleaning up the data, organizing it, and running various statistical analyses. This is where the insights are generated. Data analysts will use various techniques, such as data visualization and machine learning, to uncover patterns and trends in the data.
Once the data has been analyzed, the insights must be presented in an easy-to-understand and actionable manner. This is typically done through reports, dashboards, and data visualizations.
What’s The Difference Between Data And Business Intelligence?
The main difference between data and business intelligence is that data is simply information collected. In contrast, business intelligence is turning that data into insights that you can use to make better business decisions.
The raw material is data, and business intelligence is the process of turning it into something useful. So, if you want to make better business decisions, you need to start with data and then use business intelligence to turn it into insights. Now that you know the difference between data and business intelligence, it’s time to put it into action. Start collecting data and then turn it into insights that you can use to improve your business.
What Are Some Common Business Intelligence Tools?
There are a variety of different business intelligence tools that businesses can use. Some of the most common include:
Data warehouses are specifically designed databases for business analysis. They are typically used to store large amounts of data to be analyzed. Businesses can use data warehouses to better understand their customer data, website data, social media data, and so on.
Data Visualisation Tools
Data visualization tools are used to create visual representations of data. You can use these visualizations to generate insights or make data easier to understand.
Business Intelligence Platforms
A business intelligence platform is a software application specifically designed for business intelligence. Business intelligence platforms typically provide a way to store, analyze, and visualize data.
Reporting tools are used to generate reports based on data. These reports can be used to generate insights or to keep track of business performance.
Data Mining Tools
Data mining tools extract data from sources. This data can then be used for business intelligence purposes. Businesses can utilize a number of different BI tools. If you’re not still unsure, our team of experts can help find the right tool for your business according to your specific needs. We have a wealth of experience with business intelligence tools, and we can help you select the right one for your business.
How Can Businesses Use Business Intelligence?
Let’s look at how businesses can use business intelligence for their benefit. You can use business intelligence for a variety of purposes, such as:
Business intelligence is used to generate insights to make better business decisions. This could involve anything from identifying new market opportunities to streamlining business processes.
Another common use for business intelligence is to improve decision-making. This could involve using data to make more informed decisions about allocating resources or which products to develop.
Businesses can also use business intelligence to manage risk. This could involve using data to identify potential risks and then taking steps to mitigate those risks.
Businesses can also use business intelligence to increase their efficiency. This could involve using data to streamline business processes or identify areas where resources are being wasted.
Enhancing Customer Relationships
Businesses can also use business intelligence to enhance customer relationships. This could involve using data to understand customer behavior or identify ways to improve the customer experience.
As you can see, you can use business intelligence for various purposes. And, as data becomes more and more important, business intelligence is only going to become more common. If you wish to stay ahead of the competition, you need to start using business intelligence.
How Can I Get Started With Business Intelligence?
If you’re interested in getting started with business intelligence, there are a few things you need to do. You need to identify your business needs. Once you know what your business needs are, you can start looking for business intelligence tools to meet those needs.
Once you’ve selected a business intelligence tool, you need to set it up and run. And finally, you need to start using it to generate insights.
Business intelligence is a powerful tool that businesses can use to generate insights and improve their decision-making. However, it’s important to remember that business intelligence is not the same as data. In today’s world of digits and data, it’s more important than ever to understand data and business intelligence and know-how to use each one effectively. Hopefully, this article has helped you better understand the difference and guide how businesses can benefit from each one.
About the Author
Jenna Kramer works as a Growth Assistant for a social platform where people ask questions, get expert video consultations, and share knowledge and experience. She has a Bachelor’s Degree in Computer Science Engineering and has been working in the field of Digital Marketing for the past two years. She is also a voracious reader and a big sports fan.