Question

What is the relationship between business intelligence and analytics?

How can managers use business analytics and business intelligence to create successful organizational outcomes?

Please provide a scenario, based on your experience, in which analytics and business intelligence was used successfully to achieve a business goal.

Answer 1

Analytics is mainly done in two types of data- predictive and descriptive data.

Predictive data is nothing but the data we use for predictive analytics. Predictive data use to predict future event, in the means out output of a model. Predictive data is used to build predictive model like forecasting , logistics regression etc. Some, feature of it will be life variables which is relevant to modelling.

Descriptive data are used for descriptive analytics. It is more of a dump of historical data which are used to do exploratory analysis to get information for the data to make it good business insight.

Business intelligence is using descriptive analytics to get pattern or trend of the data. This representation is in such a way that the data is refreshed periodically.

BI used to get the trend and pattern from the data. For that we need to build analytical data set combining two or more data set. We use descriptive analytics using excel, pivot chart, Dashboards and other advance analytics tools.

Analytics is used to get prediction from the data which is advance stage of business analytics.

Both are combined do all type of analytics- Descriptive, predictive and prescriptive. So, this all results are used to make organisation business process smooth and more efficient.

Also, if we dis churn analysis, we multivariant analysis to get pattern from the data which is effecting the churn. Also, we can use modern machine learning algorithms like random forest, Boruta , RFE to get significant variables which are affecting churn. Here, we used both BI and advance analytics to achieve our business goal.