There is always a story behind numbers and data visualization can help bring that to life. While it is not a new concept, data visualization has become popular in the last few years because of the vast amount of data that is being generated and processed every day in this age of the internet. Communicating large amounts of data in a visual manner or turning raw data into detailed insights can make it easy for people to understand and interpret your data. For businesses, correctly applying data visualization isn’t an option anymore, it is now a necessity
What is Data Visualization
The practice of transforming raw data into visual reports like graphs, charts, maps, and complex dashboards is called data visualization. In other words, data visualizations can turn small and large datasets into visuals so that they can be easily understood, processed, and
analysed. As compared to graphics, human brains have a much more difficult time understanding complex data. By showcasing massive amounts of information in the most efficient and visual form, you are not just able to make the data more comprehensible and understandable, but you are also able to get your point across easily and convince people. There are many types of charts available that you can use and the right one will depend on your goal and type of data. Picking the right data visualization chart can make all the
1- Comparing data
When you are comparing data, you can use the following types of charts.
- Bar or column charts: These straightforward charts can be used to compare qualitative values like revenue or marketing numbers.
- Stacked charts: You can use it to bifurcate the data into different categories like year and region.
- Radar charts: These charts are perfect for comparing cyclic data like temperature or air pollution in different months of the year.
2- Showing part-to-whole relationships
These charts are perfect for when you want to display the overall part-to-whole composition of your data.
- Pie charts: These can help you showcase the percentage composition of every value/category
- Pyramid charts: With these charts, you can show the overall composition of any hierarchical data. For more complex hierarchical data, you can use treemap charts.
- Funnel charts: Mainly created to display different stages of a process, funnel charts can help discover any bottlenecks or inefficiencies that the processes might have.
3- Tracking project data
You can use data visualization to examine and showcase project data to the company management or team members. There are two types of charts you can use for this:
- Gantt chart: It illustrates all the project tasks in the form of a timeline. While the vertical axis has all the tasks that need to be performed, the horizontal axis has the time intervals
- Resource chart: With this chart, you can quickly review the overall resource occupancy for the project
Why businesses need to adopt data visualization
1- Amplify your company’s messaging
Visuals are more strongly tied to our memory and that is why they have a stronger impact on us compared to numbers or written text. For businesses, that means data visualization can help them amplify their message and achieve their organizational goals. Of course, companies cannot expect to accomplish their goals by just any type of data visualization. In order to be truly effective, they need to pick the right charts according to the data that they have. Choosing the wrong data visualization can not only be confusing for the audience, but it can actually have the opposite effect on them.
2- Give a clearer understanding
By allowing you to showcase a large amount of information all at once, data visualization makes it possible for you to explain the inner workings or operations of your business to investors, stakeholders, or the management. After all, key decision-makers in the company are not always experts in all the areas that the company deals in. But with the right data visualization reports, they aren’t just able to
understand the impact of different departments within the company, but they are also able to make quicker and more informed decisions.
3- Find out the emerging trends
With data visualization, you can discover emerging trends — both in the company and the industry. Instead of analyzing historical data separately, you can feed it all to the data visualization tool to create comprehensive reports in order to understand what the customers are really looking for and address the issues before they become bigger problems for your business.
Implementing data visualization is not enough, you need to implement it correctly for it to be impactful. At Anecdote Media, we help our clients create attractive visualizations to better engage their customers. Reach out to us today to learn how we can help you.