/ Big data vs. business intelligence: What do they mean?
Big data vs. business intelligence: What do they mean?
The past few years have seen companies and organizations make massive shifts from traditional methods of doing business to more digital and technologically-focused ones. This is in large part due to the advent of a concept known as “big data.”
Big data encompasses the vast amount of information that is now available online, thanks to the internet and new technology.
Every day, human beings create roughly 2.5 quintillion bytes of data, and this data is only going to continue to grow. This data comes from a variety of sources, including social media, sensors, mobile devices, and more.
This data can be extremely valuable to businesses and organizations, as it can provide insights into consumer behavior and trends.
However, big data can also be very overwhelming, and it can be difficult to know how to access it, let alone make sense of it all.
For companies to be able to make use of big data, they need a way to collect, store, and analyze it. This is where business intelligence (BI) comes in.
BI is the process of using data in order to make better business decisions. It involves using a variety of tools and methods to turn data into insights that can be used to improve business operations.
So, what is the difference between business intelligence and big data? And how can your company make use of both?
Defining big data in a world of increasing data
As we mentioned before, big data is the vast amount of information that is now available online that comes from a variety of sources.
But what exactly classifies data as big data?
Big data can be defined in a number of ways, but most experts agree that there are three key characteristics that define it:
1. Volume: The sheer amount of data that exists today is staggering, and it’s only going to continue to grow.
2. Variety: Data comes in many different forms, including text, images, audio, and video.
3. Velocity: Data is generated at an unprecedented rate—the velocity is the speed at which data is generated and collected.
These three characteristics—volume, variety, and velocity—are what make big data so challenging to work with. It can be difficult to know how to access it, let alone make sense of it all.
However, while big data may be challenging, it also presents a number of opportunities for those who know how to make use of it.
The benefits of big data
While big data may be daunting, there are a number of reasons why your company should care about it. Big data can be used to improve a variety of business functions, including marketing, product development, and customer service.
Some of the specific benefits of big data include:
Improved decision-making: Big data can be used to improve decision-making by providing insights into consumer behavior, trends, and more.
Increased efficiency: By understanding how customers interact with your business, you can make your processes more efficient and reduce waste.
Increased revenue: Big data can be used to identify new opportunities for revenue growth.
Cost savings: Big data can be used to reduce costs by identifying inefficient processes and improving resource allocation.
Big data is still a relatively new field, and there are many ways that it can be used to improve business. As the field continues to grow, we will likely see even more uses for big data in the future.
What is business intelligence?
With so much data being generated, it’s becoming increasingly difficult for companies to make sense of it all. They need a simple way to collect, store, and analyze it. This is where business intelligence (BI) comes in.
BI is the process of analyzing data in order to make better business decisions. It involves using a variety of tools and methods to turn data into insights. This can include things like data mining, predictive analytics, and more.
BI is different from big data in a few key ways:
1. Big data is about volume, velocity, and variety. BI is about insights.
2. Big data is unstructured. BI is structured.
3. Big data is raw. BI is processed.
4. Big data is overwhelming. BI is actionable.
While big data presents a number of challenges, business intelligence can help companies make sense of it all. BI can be used to improve a variety of business functions, including marketing, product development, and customer service.
How business intelligence makes sense of big data
Business intelligence helps companies make sense of big data in a few different ways:
Data mining: Data mining is the process of extracting valuable information from large data sets.
Data visualization: Data visualization is the process of making data easy to understand. This can be done through methods like charts, graphs, and maps.
Predictive analytics: Predictive analytics consist of using data to make predictions about future events. This can be used to improve decision-making and help companies plan for the future.
Data-driven decision-making: Data-driven decision-making is the process of using data to inform business decisions. This can help companies make better decisions by taking into account all of the available data.
Business process management: Business process management is the process of streamlining and improving business processes, which is supported by data insights.
By helping teams make sense of big data, business intelligence can improve a variety of business functions.
How to choose the right business intelligence solution
The power of business intelligence comes down to the BI tools that you use. Many modern BI tools offer a variety of features, such as
Apps and dashboards:Apps and dashboards help you easily visualize data and spot trends.
Data discovery: Data discovery tools help you find hidden patterns in data.
There are a number of different BI tools on the market, and choosing the right one can be difficult. Here are a few things to consider when choosing a BI solution:
The size of your data sets: Not all BI solutions are created equal. Some are designed for small data sets, while others can handle large data sets. Make sure to choose a solution that can handle the size of your data.
The type of data: There are a variety of different data types, including structured and unstructured. When using BI, it’s important to choose a solution that can handle the type of data that you collect.
The complexity of your data: The complexity of your data will determine how difficult it is to analyze. When using BI, it’s important to choose a solution that can handle the complexity of your data.
Your budget: Some BI solutions are more expensive than others. Make sure to choose a solution that fits within your budget.
Your business needs: The BI solution that you choose should be based on your business needs. Make sure to choose a solution that will help you achieve your specific goals.
Don’t be afraid to try different solutions until you find one that works best for you. The right BI solution can help your company make better decisions, improve its processes, and achieve its goals.
The bottom line
Business intelligence and big data are two important aspects of the modern business world.
BI is the process of analyzing data in order to make better business decisions, while big data is the vast amount of data that is now available thanks to the internet and new technology.
If you are ready to make sense of your big data, business intelligence is the way to go. Choose a BI solution that fits your specific business needs in order to reap the available benefits.
Check out some related resources:
Domo Named a Leader in Nucleus Research’s 2023 Analytics Technology Value Matrix
Data Never Sleeps 10.0
Domo for Marketers: Tips and tools to seamlessly manage marketing data
Try Domo for yourself. Completely free.
Domo transforms the way these companies manage business.