In the data-driven world, big businesses have more opportunities to learn about their customers, analyze marketing campaigns, and identify ways to increase sales.
Unfortunately, many businesses aren't equipped to harness data and use it to their advantage. These organizations need to recognize that utilizing a proficient BI tool to collect, manage, and present data in a visual format is an essential component of a successful business strategy.
Visually presenting information will make it easily understandable to the leadership team and other important decision-makers. These stakeholders can then use the valuable insights they gain from data visuals to change business strategies, increase the bottom line, and improve customer service.
Here's everything to know about data visualization and its benefits-
What is Data Visualization?
Data visualization is the display of data in a visual format or graphical configuration. Because the human brain understands visuals at a 60,000 higher rate than text alone, utilizing a data visualization tool in the workplace is essential.
It allows management and workers to see analytics understandably, comprehend complicated ideas or data sets, and pinpoint pattern trends.
An effective business intelligence solution allows users to interact and drill down into different types of data visuals to develop greater insights to improve decision-making. There are several different ways to use visuals to explain data sets, including-
Scatterplot- A graph that shows a correlation between two variables by plotting them along an X and Y-axis.
Bubble- charts Bubble charts present financial data and emphasize specific values.
Pie graphs- A chart that displays a statistical graphic divided into slices to indicate proportion.
Bullet graphs- A variation of the bar graph, bullet graphs compare the performance of a primary measure to one or more secondary measures.
Heat maps- A data visualization technique that demonstrates the magnitude of an event by utilizing color in two dimensions.
Radial trees- A mechanism to display a tree structure in a way that expands outward, or radially.
Line charts- A chart that presents data as a series of markers connected by straight line segments.
Bar graphs- A graph that displays data with rectangular bars with height and length proportional to the values they represent.
Make certain there is a finalized and clean set of data to utilize before finalizing a data visualization to present to management. If the collected data is inaccurate or outdated, it will be reflected in a visual format as well.
Consider the type of information and which chart would best tell a story to the audience. For example, a line chart is frequently utilized to show a time series because viewers can easily understand what an upward/downward line movement conveys. In summary, research and pick the visual that will most accurately tell the story that needs to be told.
Why is Data Visualization Important?
Businesses are utilizing data to monitor performance and adjust workflow processes to continue improving over time.
When management is in the middle of a complex project, data visualizations can help them easily and quickly comprehend how a metric or department is performing. Other benefits of utilizing data visualizations include-
Ability to identify inefficient workflows that need adjustments and improvements
Can verify the elements and factors that influence client behavior
Helps decision-makers know which resources to position and where
Ability to forecasts sales and revenue volume
Regardless of the industry or size of the business, most organizations now use data visualizations to make sense of important information. Other reasons to utilize data visualizations to describe data points include-
1. Allows Viewers to Comprehend Data Quickly By using a visual representation of essential company information, organizations can visualize large data sets in a comprehensible and transparent way.
Decision-makers then use that knowledge to draw insights and find inefficiencies. Because it's quicker to understand analytics data in a graphical representation as opposed to a spreadsheet, it's easier to tackle problems and find solutions.
2. Identify Patterns and Make Predictions Utilizing data visualizations to display information makes it easier for companies to see patterns and identify trends that otherwise may go unnoticed.
For example, those who look at a pie chart can easily see the different value proportions because each slice varies in size.
Though not all correlations and trends will be this obvious in a pictorial representation, there's a much higher chance of noticing a trend by viewing a data visual than by looking at a spreadsheet or compilation of numbers. Decision-makers can then use their interpretations to make decisions that improve future outcomes.
3. Communicate Findings with Other Stakeholders Once insights have been uncovered from data analysis, users need to communicate those findings with others.
Utilizing a pictorial representation to present data provides an engaging, interactive experience for the viewer. Businesses that regularly use data visualization tools will create a culture that promotes knowledge sharing, best practices, and better communication.
Here are the key takeaways to remember about data visualizations-
Data visualizations present important information through graphs, charts, and other illustrative means.
The most common types of visuals include scatterplots, bubble charts, pie charts, line graphs, bullet graphs, heat maps, and radial trees.
Data visuals should be used to tell a story that delivers insights and allows stakeholders to make better business decisions.
The benefits of utilizing data visualizations include the ability to pinpoint inefficiencies, verify factors that influence client behavior, allow decision=makers to place resources in the right place, and predicts sales/revenue volume.
Data visualizations allow viewers to comprehend data quickly, identify patterns and make predictions, and communicate findings with others.