Many people use the terms BI and Big Data as if they were synonyms. Currently, there is some confusion in defining terminologies related to the corporate environment, but understanding the difference between Big Data and Business Intelligence is very important to be able to benefit from both technologies.

BI and Big Data are two distinct processes that occupy unique roles in the market. It is still difficult for many people to differentiate between them. Many believe that Big Data is a replacement for BI, which is not true, and we will understand why. To put an end to your doubts once and for all, continue reading this article.

What is Business Intelligence?

When we talk about Business Intelligence (Business intelligence, or simply BI), we think of action. This is because the term refers to the analysis of raw data and its transformation into valuable business information. Thus, BI brings about a true transformation of information, which will lead the manager to make better decisions, more efficiently, and with a greater chance of increasing profits.

The role of BI is to find answers to certain questions by looking at the company's performance in systems such as ERP and CRM. Speaking a bit more technically, Business Intelligence uses systems that import data streams of any size and uses them to generate reports that will serve as the basis for specific decisions. It may be necessary to use specific tools for this.

What is Big Data?

Just like Business Intelligence, Big Data is a technology used by companies that want to gain a competitive advantage through strategic information. Nowadays, we all suffer from information overload, which we often can barely process. In companies, this volume is even greater, as within an organization there is data from employees, customers, competitors, suppliers, etc.

All this information is very valuable, but only if it's handled correctly. This is where Big Data comes in, which aims to organize and make a large volume of data available so that everything can be more easily used and accessed.

Benefits of BI

With BI, companies transform their data into easily understandable and relatable languages, enabling information sharing between management and employees—identifying the right processes, focusing on company objectives, and meeting customer needs.

We've listed some benefits of BI to help you with your business management. Check them out:

• Assists in management planning
• Decision-making assistance
• Minimize errors and risks
• Bring improved metrics and indicators
• Retain customers
• Market Trend Identification

Benefits of Big Data

With cloud technology and an infinite number of servers, companies can efficiently collect and analyze over a million data points in just a few minutes. This information can range from GPS data collected from all app users to website tracking transactions – alongside demographic information about each customer.

Let's look at five benefits that can make this technology work for your company:

• It aids in decision-making
• Pattern identification
• Competitor Tracking
• Marketing strategy creation and media monitoring
• Customer relationship
• Internal process optimization
• Risk management
• Cybersecurity Improvement

To make the difference between BI and Big Data even clearer, we point out below how to identify and distinguish them.

What is the difference between BI and Big Data?

Although many don't realize it, BI and Big Data are not the same thing.

Big Data is a more generalized and comprehensive term. Digital systems are generating increasingly more data, and the goal of Big Data is precisely to create new approaches for storing it. Business Intelligence (BI), on the other hand, is a technology with more specific purposes, as its process includes collecting and monitoring information, as well as filtering and organizing it. The goal is to offer this data concisely, so that managers receive it processed to make strategic decisions.

The major difference between BI and Big Data is also why they are complementary. One operates in a more systemic and continuous way, while the other works with a specific objective.

While Big Data solutions are used to mine data more precisely, BI tools analyze and condense information for decision-making. Both are of great importance and must be well understood so that companies can leverage them in the best way, adding and achieving the desired values and results for their businesses. It's an infallible duo for business competitiveness!

Now that you know the differences between BI and Big Data, and the benefits of each, how about understanding more about differences between BI and Strategic Management, and learn how each of them can significantly help your company grow? Find out much more in our article!