Data Visualization is an important ingredient to a perfect recipe for the success of an organization in today’s competitive market. Visualizing data using the appropriate techniques can reveal insights which the decision makers can incorporate in their decision-making pipeline in order to make informed decisions which are driven by data.
This not only helps to identify key performance indicators for a given business or
department but also helps an organization to attain competitive edge over the others which are not using data.Organizations can benefit from analyzing and visualizing their data irrespective of the scale, size, type, domain.
It only means that whether we talk about an emerging startup, SMBs or large and established enterprises, all of them can gain huge ROIs by investing wisely in data analytics and visualization.
Most of the leading organizations have been leveraging data to make better decisions. Customer-facing businesses have realized the importance of data and analytics in reaching the closest to the actual needs and requirements of the customers. Hence, the demand for visualization tools has mounted.
However, the paucity of human resources like data scientists, who could make the most of the piles of data, makes it inevitable for organizations to embrace tools that could atleast present the data to them in the most suitable matter—making it most suitable for analysis.
It is imperative for business leaders to realize and accept that the human brain may not be as compatible with data piles as a computer, but it is indeed immensely capable of interpreting graphics and patterns. Also, visuals are far more easy to interpret data forms than mundane text.
It’s time for you as a business leader to think that how do others like you interpret and analyze data and make complex decisions—considering all those past experiences, predicting all possible outcomes and backing these decisions up with data.
Indeed, they leverage data visualization to get their “complex decisions” yield favorable outcomes. Let us take you through a quick round up, through this blog post, on how to utilize data visualization and make the most of the statistical data, old experiences/learnings and fresh ideas to generate new products.
Here is what all you need to take into account to leverage data visualization and analytics.
An Outline On Data Sources
Most organizations today possess the need to monitor a huge volume of data coming at a high velocity and from varied sources like:
1. Social media data
2. Consumer complaints data
3. Financial data
4. Human resource data
5. Google analytics data
Using data visualization, you can collect all the data coming from different sources at a single place where you can apply further operations on it.
- Once the data has been loaded the tools will help you:
- Clean the dataset for errors.
- Detect relationships in data automatically which is an important part of data modeling.
- Create new columns or transform existing columns.
- Merge columns or models, e.g. you may want to keep all social media data in a single model.
- Present the data in an intuitive way using the visuals.
- Create insightful reports and share them with colleagues and teams.
Business Benefits of Data Visualization
Data visualization can magically add life of data piles by bringing insightful visuals. And, the fact that this visualization can be automated makes it all the more important for the organizations to leverage it. As a business leader, you can empower your employees by presenting to them an entirely novel way of looking at the data and analysing it for strategizing the best business outcomes. It also elevates the opportunities for you to keep complete focus on the most critical data.
Data visualization also helps your organization assess the direction of your of business. It enables you to qualify answers to key business questions. For example, when you try to answer that how you can reduce operational costs, you can qualify your strategies by backing it up with data.
Below is an example of a footwear brand. The simple sales data which might have been dumped around as plain text or mere compilation has been visualized in the following ways. The organization can assess its highest selling product by looking at this data and analyze it further by looking at sales in specific categories. The revenue stats are also available at a click of a button.
1. Assimilate Vast Amount of Data In One Go
Data visualization is a great enabler for decision makers to view huge piles of data in one go. It beautifully puts together data in the form of visuals which help you identify trends and direction of the graphs. It also allows decision-makers to view possible connections between different operations and domains. It provides single view to multi-dimensional data sets A survey by Aberdeen Group found that managers in organizations that use visual data discovery tools are 28 percent more likely to find relevant information compared to those who rely only on managed dashboards & reporting. It also makes way for insights to be converted into actions. The data which a visualization tool will bring to the table will be far more interactive than those presented in the form of charts and tools.
2. Establish Clear Correlation Between Business Operations And Activities
Since the data is visualized in a highly comprehensive and interactive manner, establishing existing or possible correlations between various business operations comes in easy here. This gives business leaders a clear insight into business performance and need for further strategies.
Data visualization allows decision makers to make sense out of the visible patterns and parallel operations in terms of the overall business performance. It also allows them to establish a correlation between the daily tasks and the long-term outcomes for these in terms of business performance.
Here, you get a chance to also segregate old data, learnings and experiences from more recent strategies and implementations. Further, it allows a comparative view and analysis.
3. Identify Upcoming Trends Prepare Strategies In Advance
Knowing about an upcoming trend in your business and planning for it, well in advance, is what you must have been striving for. Here, the challenge lies more in identifying those upcoming trends and learning what more you can add on it and frame a magnificent strategy. To save yourself from immersing in a pool of data, you need to make it simpler. Data visualization can come to your rescue here. Each time there is a change the preferences of the customers, data visualization will help you catch it immediately and enable you to capture the further trend.
Big data is something every organization, irrespective of the size, wants to focus upon. The bottleneck in understanding all this data is the scarcity of individuals who can use this data to glean meaningful insight. This has historically been a challenge for many organizations, but data visualization tools can help us bridge this gap.
Empowering executives with data visualization can provide new ways of looking at business strategy & operations, and enable senior management to drive business performance better. This allows the executives to identify the reason for growth and repeat it, or find the root cause of the dip and fix it.