Major differences between Business Analysis & Business Analytics

Business Analysis and Business Analytics are similar terms but vary in their core meaning. Business Analysis is the qualitative and quantitative examination of a business requirement by splitting it into smaller problems and then recombining all the results to conclude. It is popularly known as the divide and conquer strategy. 

To understand the difference between business analysis and business analytics, experts suggest that Business Analytics is the study of business analysis and its every aspect. It deals with studying the processes involved in the analysis and the methods incorporated. Though many things are in common such as the key fuel for them is only and only data. Therefore the quote ‘Data is the new oil’ is apt here. Both are guided by facts and figures rather than intuitions and blind forecasts.

This article will show the similarities, differences, applications, and key skills required to excel in Business Analysis and Business Analytics. 

What is business analysis?

Business analysis is an explorative study of the business demands and ways to fulfill them feasibly. It involves identifying a business plan’s problems, possible loopholes, and shortcomings by keeping a futuristic vision based on past data and experience. 

The business analysis evaluates an organization’s operations, goals, and resources to identify problems and opportunities for improvement. The business analysis aims to understand a business’s current state and determine the changes needed to achieve its desired future. 

Business analysts use various techniques such as data analysis, process modeling, and stakeholder interviews to identify business needs and define requirements. These requirements can include changes to business processes, organizational structure, or technology solutions. 

Business analysis ensures that the organization’s resources are utilized effectively and efficiently to achieve its strategic objectives. Business analysis is analogous to the self-introspection of a business, which can assist in finding solutions to very tedious business issues.

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Applications of business analysis 

The business analysis finds its applications in every successful business model. The SWOT analysis of a company is done through the conclusions of business analysis. It does the (SWOT analysis is a procedural technique for finding a subject’s Strengths, Weaknesses, Opportunities, and Threats.)

It is also used in government departments like railways and healthcare for requirement gathering and planning. It is used to document every detail and to make a report of the whole project by the team.

What is business analytics?

Business analytics uses statistical and quantitative analysis, data mining, predictive modeling, and other analytical techniques to extract insights from data and make informed business decisions. Due to the similarities, it is sometimes called the alias of data analytics. 

It is the procedural method of dealing with the huge amount of data collected in a business. It involves the steps such as fetching data, performing evaluation on it using the various data and business analytics tools, and then bringing out the conclusive insights from the data. 

Here the data is from the previous year’s performance relevant to the field of interest. ‘Those who do not learn from the past are bound to repeat it in the future’. Therefore business analytics is used to derive insights for the coming years’ plans and business models. The primary goal of business analytics is to use data to identify patterns and trends, understand customer behavior, and predict future outcomes. 

Business analysts use various data analysis tools and software platforms to collect and analyze large data sets and present the results in an easily understandable format. The insights generated from business analytics can optimize business processes, improve decision-making, and develop data-driven strategies for growth and success.

Business analytics vs. Data Analytics

Data analytics and business analytics are two connected but different disciplines.

• Data analytics: Large data sets are analyzed using statistical and computational methods to find patterns, trends, and insights that might guide decision-making. Such methods include predictive analytics, machine learning, and data mining. Data analytics can be applied to various industries, including marketing, finance, healthcare, and sports.
• Business analytics: On the other side, business analytics is a subset of data analytics concerned with using data to enhance company procedures and make data-driven decisions. Techniques like financial modeling, forecasting, and data visualization can be used. Businesses trying to boost revenue, save costs, and enhance operational efficiency find business analytics helpful.

Read this article to know more about the difference between business analytics and data analytics.

Applications of Business Analytics

Business analytics tools are an important part of modern business operations, particularly in industries that generate large volumes of data, such as finance, healthcare, and e-commerce. Similar to business analysis, business analytics is applied in various domains, such as:

• Finance
• Government projects
• Human resources
• Banking etc

You may like to know more about the applications of business analytics.

Similarities of business analysis and business analytics

Though both have some critical differences, they share some common things.

• Business-oriented: Both methods aim to evaluate, examine and improve the businesses. Every analysis is useless if it does not bring value to a business.
• Solution focused: Whatever process is done in a business has two main reasons. One is to increase the value, and the other is to find a solution.
• Based on data: Both are based on the data. The analysis results are proportional to the quality of the data fed.

Difference between business analysis and business analytics

The difference between business analytics vs. business analysis can be understood with the following points: 

• Focus: Business Analysis is focused on processing and functioning, while Business Analytics focuses on data and statistics.
• Domain: Knowledge of the businesses and related domains is needed for Business Analysis, while knowledge of statistics and mathematics is required for Business Analytics.
• Outcome: Business Analysis improves quality by defining standards for different methods, while Business Analytics discovers the things that help improve the process.

Know about the future of business analytics in Canada.

Skills to excel in Business Analysis

Following are the skills that are good to have for Business Analysis:

• Soft skills: Good speaking skills, managing teams, a research-oriented mindset, and good problem-solving qualities are needed to make a mark in Business Analysis.
• Good knowledge of tools: One should possess a basic knowledge of software development, maintenance, updating, etc.
• Document the details: Documentation, creatively presenting, and comprehending the analysis topic.

Skills to excel in Business Analytics

Following are the skills that are good to have for Business Analytics:

• Statistics: Business analytics has an optional prerequisite of the knowledge of statistics as it will help give an edge over others.
• Mathematical knowledge: Having good knowledge of mathematics and basic theorems related to statistics is a plus. 
• Skilled presentation: Presentation of data and visualizing it in charts, graphs, etc., gives a better showcase to the business client.

Read more about the must-have business analytics skills

Conclusion

To successfully operate a business, it is important to understand the difference between business analysis and business analytics. The blog suggests that business analysis primarily concerns identifying the business needs and requirements that will provide value to stakeholders. 

Conversely, business analytics primarily focuses on examining previous business performance, identifying issues, and predicting future outcomes to aid in making informed business decisions. 

If you’re keen to earn a formal degree in business analytics, enroll in online M.Sc. in Business Analytics program from Manipal Academy of Higher Education (MAHE). Offered on Online Manipal, the program covers various concepts in-depth. MAHE also offers a one-year online PGCP in Business Analytics. Check out the details and enroll!