A business can have all the data necessary for success and still fail if nobody knows how to utilize it effectively. Data empowers enterprises to recognize trends, analyze the results, make informed decisions, and set realistic goals. Taking raw data and turning it into something easy to understand is the goal of data visualization.
Without data visualization, datasets can seem like a foreign language to those outside of the analytics department.
Here are some of the top data visualization tools suitable for business professionals, along with an overview of what data visualization is and why it’s crucial.
DATA VISUALIZATION: WHAT IS IT?
Visualizing data is the process of presenting information within a dataset as a visual display. The data visualization allows decision-makers to grasp complex concepts or identify new patterns through pictorial or graphical presentations. With interactive visualizations, you can change what data you see, or process is based on technology.
DATA VISUALIZATION: WHY IS IT IMPORTANT?
Regardless of what career or business you’re in, data visualization can provide the most efficient way to deliver data. Business intelligence is built from raw data, modeled, and presented in a way that allows conclusions to be drawn. Data visualization is one of the essential steps in this process. Machine learning algorithms are used by advanced analytics to create visualizations that are easier to understand and interpret by users. With data visualization, information can be conveyed easily, quickly, and effectively using visual data. Companies can use this practice to identify what areas need improvement, what factors affect customer satisfaction, and what to do with specific products (where should they be sold). Visualized data also allows stakeholders, business owners, and decision-makers to predict sales volumes and future growth.
DATA VISUALIZATION: WHICH TECHNIQUES ARE USED?
Some visualizations are manually created, while others are automated. A variety of graphs and tables may be utilized to make an easy-to-understand dashboard. Depending on the data being modeled and its intended purpose, there are many different types available.
- Infographics: An infographic lets you explore a complex topic with a comprehensive visual presentation instead of just a single visualization of data. Infographics are great for analyzing complex, highly subjective topics.
- Heatmap Visualization: Studies have shown that humans interpret colors better than numbers and letters. Hence, using this method of data visualization helps the viewers identify the information according to the data. This method uses a graph whose numerical data points are highlighted in light colors.
- Fever Charts: We could use a fever chart to show changing data over time. We could compare the previous year’s performance with the year earlier to get an accurate projection for next year as a marketing tool. This would help the decision-makers interpret many sources of data efficiently.
- Area Chart (or Graph): Area charts are excellent for visualizing the data’s time-series relationship. Whether you’re looking at the earnings for individual departments on a month-to-month basis or the popularity of a product since the 1980s, area charts can visualize this relationship.
- Histogram: Instead of measuring trends over time, histograms measure the frequency of numerical data. By using an automated formula, they show the distribution of numerical data and convey the values.
DATA VISUALIZATION: WHO USES IT?
All industries use data visualization to increase sales with existing customers and target new markets and demographics for potential customers. Approximately half of the advertising dollars around the world will be spent online by 2020, according to the World Advertising and Research Center (WARC). This means that online data has become increasingly important to firms all over the world. It has become obsolete to look through thousands of rows of spreadsheets to find ideas and patterns in data. Data visualization allows organizations to gain access to information they would otherwise miss.
BEST DATA VISUALIZATION TOOLS TO BE USED: