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An image with the title: "Business intelligence and Big Data, what are the differences?" in a box
An image with the title: "Business intelligence and Big Data, what are the differences?" in a box

Summary

Table of contents
Table of contents

Business Intelligence and Big Data, what are the differences?

Jul 8, 2024

It is difficult to overlook terms like " business intelligence " and " big data " in our current world where data analysis is constantly evolving. But do you know how to differentiate between these two concepts? It is essential for your business to understand the difference between the two and to know what they can bring you. Qotid explains.

It should be noted that these two concepts allow for the collection and processing of data to achieve better performance. This is virtually their only common point.

What is Business Intelligence (BI)?

What is business intelligence ? Business Intelligence, also known as Decision Support Systems, refers to a set of tools, IT resources, and techniques that allow for the collection of data, its consolidation, and processing into different forms of databases. Once the data is processed, it enables a company to make the best possible decisions in order to improve its performance. This is often done using dashboards, reports, or graphs that allow for better visualization of the entire data set.


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What is Big Data?

Big Data literally means mega data, massive data, or large data. It refers to a collection of large data sets that cannot be processed with traditional database management tools. Invented by web giants, Big Data presents itself as a solution allowing everyone to access massive databases in real-time. 

According to the Gartner consulting firm, big data encompasses a family of tools, commonly referred to as the 4 Vs. that address several issues

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  • Velocity: the speed of generation and processing of data including the creation, collection, and sharing of this data.

  • Volume: the amount of data to be processed

  • Value: what are the most important data?

  • Variety: various types of data are collected from different sources (texts, images, videos…)

These large data sets come from all over the web.

Business Intelligence VS Big Data

People often confuse BI and big data because they both use data to assist companies in decision-making. However, these two concepts do have some differences!

Business Intelligence uses descriptive statistics, with data that is high in information density which allows for the detection of trends and helps a company make decisions by finding answers to the questions it poses. One could say that Business Intelligence is concerned with questions like "what" and "where".

Big Data uses "inferential" statistics, which allows for uncovering questions, answers, and perspectives that one might not have thought of. One could say that Big Data allows for answering questions like "how" and "why".

Thus, the difference between big data and business intelligence lies in the collection, processing, and the use of data which is not the same for both concepts. 

While BI focuses on structured data typically internal to a company, Big Data deals with both structured and unstructured data. This is where an issue of BI can be identified and where Big Data can also appear as a solution. 

There are different types of data: structured data, which are organized and formatted data. These are pieces of information, such as words, numbers, or signs that are controlled by references and represented in database fields enabling processing and interpretation by machines.

Then, unstructured data are all data without a predefined format. Mainly, two types are identified: text-based unstructured data such as instant messaging, Word documents, PowerPoint presentations, emails, or social networks, and non-text based unstructured data, such as audio files, video files, or images.

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Competition or Complementarity?

Although business intelligence and big data have two different and well-defined analysis methods, one can say that they complement each other. The rapid and constant evolution of data processing offers great opportunities for both. However, it seems that the classic databases of BI are slowly being replaced by more complex ones. For now, they remain a key mechanism for businesses. Big Data, on the other hand, is far from reaching maturity. Indeed, companies are increasingly being prompted to use it in conjunction with BI, as it can address issues beyond the scope of Business Intelligence. It is a newer method that allows for deeper exploration.

Several theories exist. Those that promote the replacement of BI by Big Data, BI VS Big Data or the theory of the complementarity of the two methods. The one that stands out the most from industry specialists is that of complementarity. It seems that Business Intelligence and Big Data are not in direct competition and that they can evolve together.

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In summary:

Business Intelligence (BI) and Big Data are two different concepts that allow for the collection and processing of data to improve the performance of a company.

BI uses descriptive statistics with structured data to detect trends and aid in decision-making, while Big Data employs inferential statistics to discover questions, answers, and perspectives that one might not have thought of. BI primarily processes structured, internal company data, while Big Data processes structured and unstructured data from various sources.

Although the two concepts have different analysis methods, they complement each other and evolve together.

F.A.Q:

1. What is Business Intelligence (BI)?

Business Intelligence (BI) is a set of tools, IT resources, and techniques that allow for the collection, consolidation, and processing of data in various forms of databases to help a company make the best possible decisions in order to improve its performance.

2. What is Big Data?

Big Data refers to a collection of large data sets that cannot be processed with traditional database management tools. It presents itself as a solution enabling everyone to access massive databases in real-time and encompasses a family of tools addressing several issues: velocity, volume, value, and variety.

3. What is the difference between BI and Big Data?

The difference between BI and Big Data lies in the collection, processing, and use of data. BI uses descriptive statistics with structured data to detect trends and assist in decision-making, while Big Data uses inferential statistics to discover questions, answers, and perspectives that one might not have thought of. BI mainly deals with structured, internal company data, while Big Data processes structured and unstructured data from various sources.

Transform your daily life with complete simplicity management

Transform your daily life with complete simplicity management

Transform your daily life with complete simplicity management