For every day a business stays operational, it generates data which has to be converted into actionable insight before it can be used to inform decision making. When talking about data management solutions for such problems, business intelligence and analytics are some of the terms that pop up often. But what exactly is the difference between the two? Let’s take a closer look at each of these solutions:
What is Business Intelligence?
Business intelligence is the combination of tools and practices geared towards collecting, storing and analyzing data from historical and current business operations. It is primarily about understanding what has been tried, what worked and how to enhance it while also changing what didn’t work. In the context of building a product, this often means visualizing data from various databases.
What is Analytics?
In the context of product development, this is the process of collecting, comprehending, and communicating significant patterns in product usage data (like button clicks, page visits, etc.). This process is often used to predict future events. The patterns identified also inform future product development decisions
Applying Analytics and Business Intelligence from a tools perspective
When you have a minimum viable product (MVP) out there in users’ hands, you’ll want to measure its performance. With an analytics tool like PostHog, you can track various user metrics and use quantitative analysis to identify bottlenecks associated with certain events.
You can then test and release updates to your product based on the findings regarding the elements of the user experience that resonate with customers.
And with a business intelligence tool like Metabase in hand, you can ask questions about the data in your application’s database and get answers in comprehensible formats. This tool also enables you to store and share data and the insights derived from it with other members of your organization. With such tools, a startup can simplify the app design process by relying on the resultant analyses to make decisions on what direction to take with product development. To learn more about building MVP apps, and to learn how to quickly get started with Metabase and PostHog, register for the Chewy community hub.