Business Intelligence VS Predictive Analytics: Key Differentiators

Aashish Yadav | May 18, 2022 | 189 views

Business Intelligence VS Predictive Analytics: Key Differentiators
Predictive analytics and business intelligence have become some of the most important tools for businesses because of their outstanding capabilities. Most people believe that predictive analytics is a part of business intelligence (BI), but that is not the case.

If we look at the definition of business intelligence, we can argue that predictive analytics actually falls under the umbrella of BI, but that's not entirely true. While that definition is pretty much correct for both terms, if we dig down a little deeper, we will see that there are significant differences between business intelligence and predictive analytics in both practices as well as theories.

Let’s drill down to understand the key differentiators between predictive analytics and business intelligence.

Key Differentiators: Predictive Analytics VS BI

BI seeks to answer queries like "what happens now" and "what is happening now," whereas predictive analytics tries to predict "what will happen" and provides a more practical method to assess information.

  • Data
Raw data is processed into insights for direct consumer use during the business intelligence process. With predictive analytics, unstructured data is turned into structured data that can be used to make predictions about the future.

  • Decision
Users can make decisions based on insights provided by business intelligence. Businesses can use predictive analytics to make decisions based on facts, data sets, and predictions.

  • Purpose
The objective of business intelligence tools is to equip users with information about their company's historical data performance. Predictive analytics utilizes forecasting techniques to help in the solving of complex business challenges.

  • Methods
Business intelligence uses data visualization, data mining, reporting, dashboards, OLAP, etc., with previous performance indicators. Predictive analytics predicts future occurrences and analyzes raw data patterns.

  • Technologies
Ad-hoc reporting technology, alerting technology, and other technologies are covered in business intelligence. Predictive analytics includes technologies such as predictive modeling, forecasting, etc.

Use Predictive Analytics in Business Intelligence to Optimize Marketing Efforts

Businesses now have a plethora of information about their customers’ and target audience's purchasing patterns and preferences, all thanks to business intelligence insights. With all of this information, predictive analytics can determine the possibility of a consumer purchasing a product, allowing businesses to target their marketing efforts on customers who are more likely to purchase their items. Businesses that employ predictive analytics and business intelligence solutions can constantly remain one step ahead of their competition.

Summing Up

At times, the sheer variety of tools available can be intimidating, and misinformation can sometimes hamper the selection process of technology. Business intelligence and predictive analytics are two of the most productive technologies in the market, but when combined, they can do wonders for businesses.

Spotlight

Targetbase

Targetbase is a data-driven, strategic communications agency that provides marketing technology, business intelligence, analytics and creative services to its clients. Our agency believes that clients become stronger when they leverage the wealth of information consumers provide online every day. Targetbase applies its experience in acquiring knowledge and key consumer insights and turn that into relevant data that its creative team can generate brand experiences that consumers want. The agency brings together direct marketing principles, the innovative nature of digital thinking and the intelligence of marketing analytics, all integrated in one agency backed by the Omnicom family.

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