Just how similar are business intelligence and business analytics? We dive into how they differ and where they overlap.
Business intelligence and business analytics are sometimes used interchangeably, but there are differences between the two terms. Understanding these differences helps leaders implement the right tools and processes for business growth. Familiarity with these terms will help students or career switchers prepare for their desired career path.
Business Intelligence | Business Analytics | |
---|---|---|
Definition | Business intelligence is used to analyze historical and present data to understand and drive current business operations | Business analytics is used to analyze historical data to drive current and future business |
Usage | Present business operations | Future business operations |
Application | Suitable for large companies | Suitable for all companies |
Tools | PowerBI, SAP, QlikSense, etc. | Microsoft Office (Excel), Google Analytics, Looker, etc. |
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Business intelligence (BI) is an infrastructure for storing and analyzing data collected from business operations. The process of collecting and analyzing data provides real-time metrics that support better business decisions. A well-made business intelligence dashboard can help you track performance benchmarks, spot trends and patterns, and maximize workflow.
Business intelligence tools include software and other systems, from Excel spreadsheets to reporting or supply chain management software, that help track real-time data.
Business analytics, sometimes considered a subset of business intelligence, is the process of taking the data collected from business intelligence tools and turning it into useful and actionable insights. Common business analytics methods include data mining, aggregation, forecasting, and data visualization.
In business analytics, teams often partner with data scientists to help make sense of the data and inform strategy.
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Launch your career as a business analyst. Build job-ready skills for an in-demand career in business analysis in as little as 3 months. No prior experience required to get started.
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Microsoft Visio, Data Analysis, Stakeholder Management, Business Analysis, Microsoft Excel, Pivot Tables, Formulas and Functions, Preparing Data, Chatbot, Business Process, Power BI, Data Visualization, Business Analysis Concepts, Problem Identification and Analysis, Stakeholder Communication, Quantitative and Qualitative Analysis Methods, Data Modeling, Process Modeling, Impact Analysis, Gap Analysis, Capability Assessment, Stakeholder Information Gathering, Formulate Business Case, Risk Management, Quality Management, SCRUM, Agile, Project Planning
There are a few differences between business intelligence and business analytics that are important to know. The following factors provide context behind the differences so that you can decide which types of tools and systems are best suited for your business.
One of the most common identifiers for distinguishing business intelligence and analytics is whether they focus on present or future challenges. Business intelligence uses historical data to understand and make decisions on current business operations. Meanwhile, business analytics tends to use data to predict future trends and opportunities.
This may manifest as business intelligence working through pain points in an organization’s internal workflow to meet certain goals or increase efficiency, whereas business analytics provides more useful insights on product innovation within the global marketplace.
The focus on the present versus the future can be referred to as “descriptive” or “predictive” in that business intelligence gives detailed information that describes the current situation, and business analytics identifies patterns and trends to predict future events.
The size and age of a business can influence whether business intelligence or analytical tools are used. Typically, BI tools are used in larger organizations, while organizations of all sizes can use business analytics.
Furthermore, a younger business or one that has gone through major restructuring might be more likely to focus on business analytics that predict future trends based on its history. More established organizations may be comfortable with their growth rate and choose to focus on business intelligence tools that provide information about current performance and operations.
However, most businesses will benefit from using a combination of both.
Business intelligence tools are better for structured data, which can be pulled from financial software and enterprise resource planning (ERP) systems. Business analytics tools can be used to transform unstructured and semi-structured data into organized data that can be analyzed more easily using predictive analytics.
Those in an organization who need access to real-time data are often managers, marketers, accountants, and departments that don’t have data analysis technical expertise. Business intelligence tools provide information, so they can make sound decisions without the help of a data analyst or scientist. All they need to learn is how to navigate the software to view the dashboards they need.
Business analytics requires more navigation and expertise to decipher the data to transform it into something meaningful. It’s often data analysts and data scientists who can build and apply machine learning algorithms (such as predictive analytics) that work through large data sets to produce useful insights.
When exploring career options in business intelligence or analytics, you'll likely find that there are differences in the job titles and the salaries you can earn. Here are some examples, with yearly salary averages taken from Glassdoor as of April 2025:
Business intelligence analyst: $93.701 [1]
Business intelligence developer: $107,198 [2]
Business intelligence engineer: $110,669 [3]
Business analyst: $83,141 [4]
Business analytics specialist: $96,885 [5]
Business systems analyst: $97,490 [6]
Start learning today with a 7-day free trial for Coursera Plus. With the Google Business Intelligence Professional Certificate, you’ll learn data visualization, modeling, dashboarding, and reporting in two months or less.
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Learn in-demand skills like data modeling, data visualization, and dashboarding and reporting in less than 2 months.
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Sheets, Data Analysis, Business Process, Data Modeling, Dashboarding and Reporting, Business Analysis, Data Visualization, Bigquery, Tableau Software, Extraction, Transformation And Loading (ETL), Business Intelligence, SQL, Interviewing Skills, Key Performance Indicators (KPIs), Business Reporting, Stakeholder Communications, Presentations, Scalability, Data Presentation, Presenting Data Insights, Effective Communication, Performance Analysis, Dashboard, Data Visualization Software, Databases, Data Management, Performance Tuning, Performance Testing, Data Pipelines, Data Validation, Data Warehousing, Data Integrity, Extract, Transform, Load, Data Mart, Database Design, Data Quality, Database Optimization, Data transformation, Google Dataflow/Google BigQuery, Database Systems, Cross-Functional Team Dynamics, Business Metrics, Real Time Data, Data Storytelling, Project Implementation, Business Analytics, Stakeholder Management, Stakeholder Engagement, Sharing Insights With Stakeholders, Requirements Elicitation, Data Integration, Asking Effective Questions, Business Processes and Requirements
If you're considering transitioning into a business analyst role, you might consider boosting your resume with the Microsoft Business Analyst Professional Certificate. You can gain hands-on experience with popular data tools like Power BI and Microsoft Excel in just one month while earning an employer-recognized Professional Certificate from Microsoft.
professional certificate
Launch your career as a business analyst. Build job-ready skills for an in-demand career in business analysis in as little as 3 months. No prior experience required to get started.
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51,323 already enrolled
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Average time: 3 month(s)
Learn at your own pace
Skills you'll build:
Microsoft Visio, Data Analysis, Stakeholder Management, Business Analysis, Microsoft Excel, Pivot Tables, Formulas and Functions, Preparing Data, Chatbot, Business Process, Power BI, Data Visualization, Business Analysis Concepts, Problem Identification and Analysis, Stakeholder Communication, Quantitative and Qualitative Analysis Methods, Data Modeling, Process Modeling, Impact Analysis, Gap Analysis, Capability Assessment, Stakeholder Information Gathering, Formulate Business Case, Risk Management, Quality Management, SCRUM, Agile, Project Planning
To deepen your understanding of business analytics, consider enrolling in UPenn Wharton’s Business Analytics Specialization. In just a month or less, you’ll learn how to work with analytics to understand customers, operations, people, and accounting.
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Spreadsheet Software, Operations Management, Customer Analytics, Data Analysis, Mathematics, Leadership and Management, Probability & Statistics, Business Analysis, Business Analytics, Market Research, Human Resources, Accounting, People Development, Organizational Development, Analytics, Marketing, Decision Tree, Collaboration, People Analysis, Mathematical Theory & Analysis, Strategy, Finance, Simulation, Mathematical Optimization, Solver, Strategic Management, Earnings Management, Marketing Performance Measurement And Management, Regression Analysis, Predictive Analytics, Talent Management, Performance Management
Glassdoor. "How much does a Business Intelligence Analyst make?, https://www.glassdoor.com/Salaries/business-intelligence-analyst-salary-SRCH_KO0,29.htm." Accessed April 10, 2025.
Glassdoor. "How much does a Business Intelligence Developer make?, https://www.glassdoor.com/Salaries/business-intelligence-developer-salary-SRCH_KO0,31.htm." Accessed April 10, 2025.
Glassdoor. "How much does a Business Intelligence Engineer make?, https://www.glassdoor.com/Salaries/business-intelligence-engineer-salary-SRCH_KO0,30.htm." Accessed April 10, 2025.
Glassdoor. "How much does a Business Analyst make?, https://www.glassdoor.com/Salaries/business-analyst-salary-SRCH_KO0,16.htm." Accessed April 10, 2025.
Glassdoor. "How much does a Business Analytics Specialist make?, https://www.glassdoor.com/Career/business-analytics-specialist-career_KO0,29.htm." Accessed April 10, 2025.
Glassdoor. "How much does a Business Systems Analyst make?, https://www.glassdoor.com/Career/business-systems-analyst-career_KO0,24.htm." Accessed April 10, 2025.
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