A professional conversation about Business Intelligence, Machine Learning and the differences between them led me to write this post that deals with that topic.
Business intelligence is a profession that deals with collection, concentration and assembly of data into data models that then after are made accessible, to consumers via reports and dashboards.
Business Intelligence focuses on analysis of accurate data for example: Income by customer, total expenses and so forth.
So where is the intelligence?
The intelligence refers to human intelligence of understanding processes that leads to data modeling and an assembly of a visual displays of data that enables the consumer to make rational decisions based on the display of information set in front of them.
What are the benefits of implementing business intelligence?
- Automated collection and organisation of data enables the consumers to focus on analysis and value.
- Presentation of visual and numeric data that enables decision making based on facts.
Examples of optional solutions:
- A company that is a group of companies where we are required to measure the activity of each company separately and of all companies in a whole.
- Measuring planned sales performance compared to actual sales performance.
- Measuring resource utilisation.
Then why do we need Machine Learning?
Machine Learning is actually a complementary/expanding trait to Business Intelligence. First, Machine Learning relies on the business intelligence because 90% of the required activity in Machine Learning is based on the preparation of a data panel, the statistical analysis comes after the data preparation stage.
Machine Learning treats information that is not absolute and statistical by nature, and when for these use cases we would like to make more accurate and knowledgeable decisions.
What opportunities does artificial intelligence open for us?
- Prediction with statistical significance can help us manage our resources better and reach our goals at a much lower cost.
- Identification of business opportunities that would not be identified by human intelligence.
- Identification of out layers
Machine Learning cannot exist without Business Intelligence. Business Intelligence puts the focus on supporting decision based on accurate data on the contrary Machine Learning focusses on statistical data and prediction.