Data Visualization and Its Importance in Business

Data Visualization is, in general, describes the method of transforming data into visual content for a better understanding of it. Meaning it’s the visual representation of data. In short, Data visualization is the representation of data in a pictorial or graphical format.

Generally, data is in the form of numbers and statistics and understanding those are difficult and time-consuming. So, to make them simpler Analysts use tools like Tableau, Qlikview and Microsoft Excel to process the data present them in simpler Graphs, Charts, and Plots.

It enables the Top managers to see the Analytics presented visually, so they can grasp difficult concepts or find new patterns.

History of Data Visualization:

The practice of using photos or graphs to understand data has been around since 17th century. Where people used Maps for navigation purposes and Graphs for statistical purposes.

history books show that Charles Minard - A french Civil engineer, back in 1869 mapped Napoleon's invasion of Russia. He used temperature and time scale to plot a map showed the size of the troops as well as the path of Napoleon's retreat from Moscow.

Now the time has changed. Today, Computers are capable of processing millions and millions of lines of data in a fraction of seconds. And to present this analysis, we need Data Visualization tools.

Nowadays Data Visualization trend is growing rapidly and a lot of Businesses are adopting various Data Visualization techniques to get ahead of their Competition.

And if this trend continues Data Visualization will surely change the corporate landscape over the next few years.

Importance of Data Visualization for a Business:

Studies show that our brain can process an image 60,000 times faster than a text. And its more accustomed to processing photos (Graphs, Charts, Plots). Also, 90% of the information sent to the brain is visual, and 93% of all human communication is visual.

So you see our brain processes an Image faster and retains it for a longer time and hence you can understand the importance of Data Visualization.

And for a business Informed decision-making is the foundation. As a decision maker, you need access to visual business intelligence tools that help you take the right decision quickly.

As your company grows, so does the amount of data collected. And interpreting data in spreadsheet tabular forms is just not an option. So, In today’s data-focused business world data visualization is a must.

Here are the five ways Data Visualization will help your Business:

1. Absorb Information quickly: A picture is worth a thousand words. Or, in this case, it’s worth a thousand rows of sales data. As the volume of data increases, Visualization makes it easy to understand and find new trends.

2. FInd Patterns and Trends in Data: Data Visualization not only shows Marketing Trends and Patterns. It also shows correlations and relationships between variables which will affect the success of the product. It Helps you understand which products to place where.

3. Grab the Attention of your Customer: People today have a very short attention span, In fact, it's shorter than that of a Goldfish and Data Visualization is just the tool required to convey your message to your customer without boring your customers. And also It Clarifies which factors influence customer behavior.

4. Share your Results with ease: Graphs, Charts, and Plots are easy to share and can be distributed among teams very easily. And the Visual Insights are sure to grab their attention than a massive spreadsheet.

5. Act Quickly: Data visualization allows you to find areas that need attention or improvement and take more informed decisions faster. You can understand your data with much ease and help meet the success with fewer mistakes and great speed.

There are a various Data Visualization tools that a data analyst uses to present the data in understandable graphs, charts, and plots.

Some of the Examples are Tableau, QlikView, Google Charts, Raw and many more. But Microsoft Excel is the most widespread tool.

Microsoft Excel supports Data Visualization through charts, Data bars, Conditional Formatting. These all are great to create a graphical model of data.

While Pivot Tables and Pivot Charts allows you to total data values across multiple dimensions and enables you to see the relationships between them.

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