What Is Business Intelligence Analytics?

Business intelligence (BI) analytics refers to the processes businesses and data professionals use to collect, analyze, and report on data to make informed data-driven decisions. Working in business analytics means using business intelligence tools, which continue to advance significantly as technology improves.

In 1958, BI came onto the scene using technology to collect data related to business. It has grown since then, becoming indispensable for businesses in today's data-rich environment. The data technology market was worth $349.40 billion in 2023, so it’s unsurprising that businesses are using BI analytics to use the available data [1]. 

Discover types of business intelligence analytics, what companies and organizations use them for, and the advantages and disadvantages of doing so. Also, find out the steps you can take to start a career in business intelligence analytics or develop a further understanding of this field.

Types of business intelligence analytics 

Business intelligence analytics encompasses a range of tools, platforms, and methodologies for analyzing, managing, and reporting data to inform business decisions. Most of these fall under one of three categories depending on whether they are used for summarizing historical data, predicting future trends, or devising strategies. 

Descriptive analytics: This method summarizes historical data to identify patterns and trends useful for understanding a business's performance. An example is the number of products a company sells year to year. 

Predictive analytics: This type of BI analytics uses statistical models to forecast future trends based on historical data. It is more complex than descriptive analytics as it involves calculations and predictions rather than just interpreting what is already known. An example of this could be a marketing department using predictive analytics to determine whether an audience will likely respond to a certain marketing campaign. 

Prescriptive analytics: This type of analytics allows you to suggest actions and strategies by analyzing complex raw data sets. It allows you to predict what should happen in the future as opposed to what could happen, with an understanding of why, using a range of tools and methodologies, including machine learning, artificial intelligence, and statistical modeling. An example of prescriptive analytics is accessing health care risks and treatment decisions to optimize a new product. 

What can you use business intelligence analytics for? 

BI analytics streamline decision-making processes, enhance strategic planning, and predict future opportunities. The process of business intelligence analytics follows a series of steps to accomplish this:

• Identifying possible data for analysis

• Gathering, collecting, and cleaning data

• Analyzing data

• Creating data visualizations for reporting

• Making data-driven decisions and action plans

You’ll use various business intelligence tools, platforms, and dashboards within each step. How you go about this will depend on the data you’re working with. Examples of business intelligence uses include:

• Performance monitoring

• Business scalability 

• Market analysis

• Analyzing competition 

• Workflow improvements 

• Improving customer experience

• Improving job satisfaction

Who uses business intelligence analytics? 

Data is a big business that organizations use to help make informed decisions. Key industries that utilize business intelligence analytics include:

• Customer service

• Finance

• Marketing

• Health care

• Sales

• Retail

• Manufacturing 

• Telecommunications 

Numerous specific professional roles in these fields rely heavily on business intelligence analytics and BI tools. Take a look at some of these below.

Data analyst

Median annual US base salary: $74,680 [2]

Job outlook (projected growth from 2023 to 2033): 8 percent [2]

Data analysts gather, clean, monitor, and interpret data using BI tools to support businesses in making data-driven decisions. 

Requirements: A bachelor's degree in data analysis, math, statistics, or similar

Data scientist 

Median annual US base salary: $108,020 [3] 

Job outlook (projected growth from 2023 to 2033): 36 percent [3]

Data scientists build and use algorithms to analyze and interpret data so they can answer questions and solve problems, often related to business. 

Requirements: A bachelor’s degree in math, statistics, computer science, or similar 

Marketing manager

Median annual US base salary: $156,580  [4]

Job outlook (projected growth from 2023 to 2033): 8 percent [4]

Marketing managers use BI tools to predict market demand, analyze trends, and understand competitors better to build a business strategy.

Requirements: A bachelor’s degree in marketing or a business field like communications and relevant experience

Management analyst

Median annual US base salary: $99,410  [5]

Job outlook (projected growth from 2023 to 2033): 11 percent [5]

Management analysts use business intelligence to support businesses in improving their efficiency or increasing their revenue by analyzing financial data and suggesting changes. 

Requirements: A bachelor’s degree in business, social science, or engineering and relevant experience

Pros and cons of using business intelligence analytics 

Business intelligence allows businesses to analyze data and gain insight in a way not previously possible. It comes with many advantages, including making decisions using data and improving accuracy. As with any technology, you’ll also find some challenges that need addressing. 

Advantages of business intelligence analytics

The benefits of BI analytics drive the market to be worth nearly $350 billion [1]. Examples include:

• Greater decision making: Based on data, and increasing accuracy, depth of knowledge, and speed to make decisions

• Competitive edge: Due to insights gained on competitors from historical data

• Operational efficiency: Using data to identify past issues and predicting how to avoid them

Disadvantages of business intelligence analytics

The benefits BI tools and processes bring are apparent, but you may also encounter challenges around cost and security. These include:

• Initial costs: Setting up business intelligence processes and operations requires upfront costs, which can be challenging for some.

• Security: Handling and storing so much data means having the correct security protocols to protect it and your users.

• Skills gap: Success in data analytics requires a range of skills that integrate many disciplines. For this reason, businesses may find skill gaps in recruitment.

How to work in business intelligence analytics 

If you are interested in business intelligence analytics, this is an in-demand field with higher-than-average salaries and a wide range of job opportunities. You’ll likely need a bachelor’s degree and some relevant experience to show your commitment and knowledge through relevant certifications. 

Education

The entry point for a career as a business intelligence analyst is a bachelor's degree with majors such as computer science, data science, business administration, economics, statistics, or similar. It’s important to cover coursework relevant to the role in areas like data analytics and technology. You may wish to continue your education to a graduate degree level with a master’s in business administration or similar.

Experience

Experience is important, so consider taking an internship with your degree in a relevant field, such as business. Gaining more experience in the technology or business field following your bachelor's degree is beneficial. Consider entry-level positions such as data analyst or business analyst to build your skills and knowledge. 

Certifications and professional certificates

In addition to your degree, business intelligence certifications and certificates are an excellent way of showing you have the relevant skills and knowledge for the role and can help you stand apart from other candidates. Possible options include:

• Microsoft Certified: Power BI Data Analyst Associate

• Microsoft Certified Power BI Data Analyst Professional Certificate

• Certified Business Intelligence Professional (CBIP) certification

• IBM Business Intelligence Analyst Professional Certificate 

Getting started with business intelligence analytics on Coursera 

Business intelligence analytics is advancing businesses in all industries, allowing for greater business decision-making based on data. If a career in business intelligence analytics sounds like it’s for you, a great place to start is by building your knowledge with an online course. Check out the Google Business Intelligence Professional Certificate or the Tableau Business Intelligence Analyst Professional Certificate.