What Are The Benefits of Data Visualization?
Shivaam Jaiswal
?????????? SE @ Accenture ? Vedic Astrologer ? Microsoft Certified AI-102 ? GenAI ? Machine Learning ? WebSphere Administrator ? Middleware ? Personal Development ? Ex- Associate Business Analyst ? Graphic Designer
Data visualization positively affects an organization’s decision-making process with interactive visual representations of data. Businesses can now recognize patterns more quickly because they can interpret data in graphical or pictorial forms. Here are some more specific ways that data visualization can benefit an organization:
Correlations in Relationships:
Without data visualization, it is challenging to identify the correlations between the relationship of independent variables. By making sense of those independent variables, we can make better business decisions.
Trends Over Time:
While this seems like an obvious use of data visualization, it is also one of the most valuable applications. It’s impossible to make predictions without having the necessary information from the past and present. Trends over time tell us where we were and where we can potentially go.
Frequency:
Closely related to trends over time is frequency. By examining the rate, or how often, customers purchase and when they buy gives us a better feel for how potential new customers might act and react to different marketing and customer acquisition strategies.
Examining the Market:
Data visualization takes the information from different markets to give you insights into which audiences to focus your attention on and which ones to stay away from. We get a clearer picture of the opportunities within those markets by displaying this data on various charts and graphs.
Risk and Reward:
Looking at value and risk metrics requires expertise because, without data visualization, we must interpret complicated spreadsheets and numbers. Once information is visualized, we can then pinpoint areas that may or may not require action.
Reacting to the Market:
The ability to obtain information quickly and easily with data displayed clearly on a functional dashboard allows businesses to act and respond to findings swiftly and helps to avoid making mistakes.
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Which Data Visualization Techniques are Used?
There are many different methods of putting together information in a way that the data can be visualized. Depending on the data being modeled, and what its intended purpose is, a variety of different graphs and tables may be utilized to create an easy to interpret dashboard. Some visualizations are manually created, while others are automated. Either way, there are many types to meet your visualization needs.
Infographics:
Unlike a single data visualization, infographics take an extensive collection of information and gives you a comprehensive visual representation. An infographic is excellent for exploring complex and highly-subjective topics.
Heatmap Visualization:
This method uses a graph with numerical data points highlighted in light or warm colors to indicate whether the data is a high-value or a low-value point. Psychologically, this data visualization method helps the viewer to identify the information because studies have shown that humans interpret colors much better than numbers and letters.
Fever Charts:
A fever chart shows changing data over a period of time. As a marketing tool, we could take the performance from the previous year and compare that to the prior year to get an accurate projection of next year. This can help decision-makers easily interpret wide and varying data sources.
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:
Rather than looking at the trends over time, histograms are measuring frequencies instead. These graphs show the distribution of numerical data using an automated data visualization formula to display a range of values that can be easily interpreted.
We need data visualization because the human brain is not well equipped to devour so much raw, unorganized information and turn it into something usable and understandable. We need graphs and charts to communicate data findings so that we can identify patterns and trends to gain insight and make better decisions faster.
SaaS-y Sales Specialist helping companies build connections through communication | COPC CX Performance Leader
3 年Great article! Out of the six benefits you have listed, which do you think is the most important for a company?
Zonal Lead Hyperlocal| Adglobal360
3 年Data is the DNA in any field without it the existence in any aspect of business is not possible....well articulated mate Shivam Jaiswal ????
?????????? SE @ Accenture ? Vedic Astrologer ? Microsoft Certified AI-102 ? GenAI ? Machine Learning ? WebSphere Administrator ? Middleware ? Personal Development ? Ex- Associate Business Analyst ? Graphic Designer
3 年Shivam Jaiswal Data Visualization plays an important role in Data Science career then why not learn about it. So go through my latest post. ??