Management Information Systems
Data analytics, business analytics and business intelligence are all managerial concepts that use data
driven tools to help business make decisions. With reference to the above, the essay provided
herewith provides a tabular difference between the 3 concepts based on key areas -
Key Areas Data Analytics Business Analytics Business intelligence (BI)
History of data analytics spans The use of analytics by The phrase “business
from 18,000 BCE, with the business can be found as far intelligence” was coined
creation of the Ishango Bone, to back as the 19th century, by Richard Millar Devens
modern technological when Frederick Winslow in 1865. 3
advancements such as the Taylor initiated time
Originated in the 1950s
creation of large data centers management exercises.2 It
and 1960s as businesses
and the inception of the builds upon the foundations
Origin of the began to develop systems
internet.1 Began in the mid-20th of data analytics but focuses
Concepts to gather and organize
century with the advent of specifically on applying
information for decision-
computing technology, enabling analytical tools to solve
making. BI focuses on the
large-scale data processing and business problems.
collection, visualization,
analysis. The growth of big data
and interpretation of
and machine learning in the 21st
historical data.
century has further propelled
data analytics into prominence.
Encompass several activities Business analytics is a subset Business intelligence is
aimed at extracting meaningful of data analytics with a narrower in scope,
insights from raw data. It specific focus on business concentrating on the
includes – context. It emphasizes using transformation of raw
Descriptive: Describes what statistical and quantitative data into actionable
has happened over a given methods, predictive information for strategic
period. modelling and data
and tactical decision-
Scope and Diagnostic: focuses more on visualization to improve
making. BI primarily deals
Meaning why something happened. business decision-making.
Predictive: what is likely going with historical and current
to happen in the near term. data of the company.
Prescriptive analytics: This
suggests a course of action.4
Its scope is not limited to
business applications and spans
fields such as healthcare,
finance, sports and scientific
research.
Goals 1. Identify patterns and trends 1. Optimize business 1. Improve reporting and
1
Ginsberg, Corey (2025), A Brief History of Data Analytics,
[Link] Accessed on 24.01.2025
2
Foote, K.D. (2021) A Brief History of Analytics, [Link] . Accessed
on 24.01.2025
3
Miller Devens, Richard (1865). Cyclopaedia of Commercial and Business Anecdotes; Comprising Interesting
Reminiscences and Facts, Remarkable Traits and Humors of Merchants, Traders, Bankers Etc. in All Ages and
Countries. D. Appleton and company. p. 210. Retrieved 24.01.2025. business intelligence.
4
Investopedia Team (2024), Data Analytics: What It Is, How It's Used, and 4 Basic Techniques
[Link] . Accessed on 24.01.2025
in data. processes and data visualization.
2. Generate insights for a wide performance. 2. Facilitate access to
range of applications. 2. Support strategic historical data for
3. Enable data-driven decision- planning and operational better decision-
making through advanced improvements. making.
analysis. 3. Provide actionable 3. Enhance
insights to solve specific organizational
business problems. understanding of key
performance
indicators (KPIs).
Functionality: Broad data Functionality: Focused Functionality:
manipulation, data analysis for business Enterprise reporting,
cleansing, data visualisation strategy, scenario dashboard creation,
and machine learning. simulation and performance
forecasting. scorecard and real-
Functionalit Techniques:
time reporting.6
y and Techniques: Predictive
o Cluster analysis
Techniques modelling, optimization, Techniques: OLAP, ETL
o Factor analysis sensitivity analysis and (Extract, Transform,
performance Load), and ad hoc
o Cohort analysis benchmarking. SAP and analysis and data
Tableau are primarily querying. Excel, Power
o Regression analysis5
used. BI, Reporting
software, Google Docs
can be used.
Structured, semi-structured, Primarily structured and Structured data stored
and unstructured data. Use semi-structured data in data warehouses
of NLP or sentiment analysis relevant to business and data marts.
can be required. processes. Examples XML
Data Types Historical data
and JSON files.7
Used Data from diverse sources, generated from
including IoT, social media Data from enterprise internal business
and transactional databases. systems, customer operations.
databases and market
research.
Business What trends are present in How can inventory What were last
Questions customer behaviour across management be quarter’s sales figures
Answered markets? optimized to reduce by region?
costs?
How can machine learning Which product lines
models predict future What strategies should performed best in the
outcomes? be employed to increase previous fiscal year?
customer retention?
How has employee
5
Types of Data Analysis Techniques (2024) ,[Link]
techniques/ . Accessed on 25.01.2025
6
Investopedia Team, Business Intelligence Technologies: Some Common Functions (2025)
[Link]
[Link] Accessed on 25.01.2025
7
What Are the Different Types of Data in Business Analytics? [Link]
business-analytics/ . Accessed on 25.01.2025
What factors contribute to Which marketing turnover trended over
discrepancy in production campaigns are most the past five years?
processes? effective for specific
demographics?
Figure 1 : Architecture of BI (Data Analytics, Business Analytics and BI in a single frame)8
While data analytics, business analytics, and business intelligence share a common goal of enabling
better decision-making through data, they differ in their scope, goals and methodologies. Data
analytics serves as the foundation, providing a large and comprehensive toolkit for analysing diverse
datasets. Business analytics narrows this focus to address specific business challenges based on
strategy. Business intelligence emphasizes the organization and visualization of historical/internal
data to inform strategic decisions. Together, these tools provide a holistic approach to use data in
today’s dynamic business environment.
8
Sharda,R et al., Business Intelligence : A Managerial Perspective on Analytics 3rd ed. ,Pearson Pg. 34 Figure 1.3
