Business Analytics is “the study of data through statistical and operations analysis, the formation of predictive models, application of optimization techniques, and the communication of these results to customers, business partners, and college executives.” Business Analytics requires quantitative methods and evidence-based data for business modeling and decision making; as such, Business Analytics requires the use of Big Data.

Business Intelligence (BI) and Business Analytics are similar, though they are not exactly the same.

Business Intelligence involves the process of collecting data from all sources and preparing it for Business Analytics. Business Intelligence is more of a first step for companies to take when they need the ability to make data-driven decisions. Business Analytics, on the other hand, is the analysis of the answers provided by Business Intelligence. While Business Intelligence answers what happened, Business Analytics answers why it happened and whether it will happen again.

Business Intelligence includes reporting, automated monitoring and alerting, dashboards, scorecards, and ad hoc query; Business Analytics, in contrast, includes statistical and quantitative analysis, data mining, predictive modeling, and multivariate testing.

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