Business Analysis vs. Business Analytics – FvFreak

There is often a mix-up between the two terms – business analysis and business analytics.

People tend to pretend that both are the same professions. However, they are not.

These two professions are also used interchangeably, yes, even by the organizations at a few times.

Many of the times, usually start-up companies end up seeking out business analytics professionals when they are actually in need of a business analyst. 

Every analytics enthusiast out there is confused about whether they want to pursue a career in business analysis or business analytics.

Hence, it is imperative to make this confusion very clear. So let us try and understand the difference between the two – business analysis and business analytics.

Business Analyst

A business analyst is the one who guides the businesses in improving the process, service, product, and software with the help of data analysis.

Business Analysts are supposed to bridge the gap between business and IT.

They use data analytics to determine requirements, assess processes, and deliver data-driven reports and recommendations to the executives.

To understand how data-driven changes to the process, service, product, hardware, and software can add value and improve efficiency, the Business Analysts engage with the business leaders.

Business Analysis is a disciplined approach when it comes to managing and introducing changes in organizations.

Job Description:

Business Analysts are supposed to create new models that support business decisions.

They need to work closely with the IT and Finance reporting teams to establish new strategies, take initiatives to improve importing and optimize costs.

They need much experience in budgeting, forecasting, and financial analysis, along with understanding key performance indicators and regulatory and reporting requirements.

RELATED  SYPWAI - a start-up helping people

Skills Required: 

Few of the essential skills for a Business Analyst is Oral and written communication skills, 

  • Organizational skills
  • Interpersonal and consultative skills 
  • Understanding of networks 
  • databases and other technology 
  • Facilitation skills 
  • Processes modeling 
  • Analytical thinking and problem-solving 
  • Costs benefit analysis 
  • Being detail-oriented and capable of delivering a high level of accuracy 
  • Stakeholder analysis 
  • Knowledge of business structure, and Requirements engineering.

Example of Business Analysis projects:

  1. Making a Business Architecture
  2. Documentation of Requirements
  3. Creating a Business Case
  4. Analysis of Business Process
  5. Conducting a risk assessment
  6. Requirements elicitation

Architectural Domains:

  1. Enterprise architecture
  2. Organization architecture
  3. Process architecture
  4. Technology architecture

Business Analytics Professional

Business analytics is a combination of computer programming, business intelligence, and data analytics.

It is the science of analyzing the data to find the patterns that will help develop strategies for business.

The practice of business analytics can be found in almost every small as well as large scale industry.

It is estimated by the Interactive Data Corporation (IDC) that by 2025, the data creation will reach 163 zettabytes.

Entrepreneurs, governments, and big corporations use business analytics to generate insights by making sense out of data and decoding it.

These understandings are then used to improve the organization’s efficiency and offer innovative solutions to business problems.

To become an exceptional business analytics professional, get the business analytics certification.

YouTube video

Job Description:

The process of business analytics is as followed:

  1. Firstly, the purpose of the analysis is to be known. Understanding what the business is about and trying to achieve is essential to frame the business problem.
  2. Concerning the analytics, the business problem framed before is now reformulated. A set of factors and their relation to the output is proposed by the data analytics professional and defines a metric of success of the model created.
  3. Then, the data is identified and selected for analysis. The data is cleaned and structured to make it analysis-ready.
  4. Once the data is worked upon, it is time to select the analysis method. It depends upon the data and the type of analysis the business analytics professional wishes to perform.
  5. Lastly, the deployment of the model. The model is being checked and verified if it provides accurate predictions. This model is then deployed in the company’s system, which produces forecasts by performing analysis on the new incoming data. However, it needs to be continuously monitored for the sake of accuracy.
RELATED  Role & Impact of Mobile Banking Development in Banking Sector

As mentioned in the 4th step, the selection of methodology of analysis, it remains entirely unclear there. Let us understand it here. There are different types of analytics:

  • Descriptive Analytics

As the name suggests, this type of analytics analyses and finds an answer to the questions.

It describes or summarizes the raw data into data, which is understandable and interpretable for humans.

  • Predictive Analytics

This type of analytics uses the method of forecasting techniques and statistical models to predict what will happen in the future.

It foretells the future of the business and, at the same time, takes the necessary measures.

  • Prescriptive Analytics

This type of analytics uses simulation algorithms and optimizations to answer questions like “What can be done?” These analytics give solutions and advice on possible outcomes.

It is a new field in analytics that allows the user to provide several solutions and guide the business with the best possible solution.

Skills Required:

The essential skills which a business analytics professional should possess are as followed – 

Technical and business knowledge, ability to work well with others, ability to understand the specific software which the company is using, ability to speak in technical terms, Understanding of the overall business function and pain points within the business, in-depth knowledge of R programming language, python coding, MS Excel, expertise in mathematics, strategy/business acumen.

The business analytics certification will help you in acquiring all the necessary skills!

Example of Business Analytics projects:

  1. Preparing a dashboard to track the main performance metrics
  2. Explaining why a particular result occurred
  3. Forecasting future results
  4. Conducting simulations to investigate various scenarios
  5. Experimenting to test previous decisions
  6. Analyzing data to find new patterns and relationships
  7. Using a data warehouse to report last performance
  8. Depending on statistical methods to predict future sales. It is based on past sales
RELATED  Signature Generator - Create Signatures Online for Free

Architectural Domains:

  1. Data architecture
  2. Information architecture
  3. Technology architecture

Hopefully, now you can clearly distinguish between Business Analysis and Business Analytics.

Though there are few everyday things between these two terms, their differences resist them from being called the same profession.

If you wish to work as a business analytics professional, you can look forward to getting the business analytics certification.