The significance of data visualization has often been looked down upon, especially by those who do not work with data on a daily basis. While it is true that data on its own can be entirely useless, it can be worked on in such a way so as to draw meaningful insights. This is where data visualization comes into play. Every organization, be it small, medium-sized, or big, has access to vast chunks of data. This kind of data requires data visualization experts who can offer specific problem-solving guidance on the analysis and representation of data. With data visualization, you can design dashboards and graphs that are quite interactive, and also ones that represent the fundamental values in your data. Here we highlight how data visualization can transform simple metrics to meaningful business insights.
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Why is data visualized?
Data visualization is more of a human concept. When data has been presented in graphical form, it does not change, but the manner in which you view it does. Human beings are visual creatures. If data is presented with a long list of numbers, the information can neither be communicated to our brains nor can it be processed. Here are some of the reasons why data visualization is carried out:
- To comprehend huge chunks of data at scale
- To compare and contrast data
- To identify data trends and patterns
- To identify questions that most likely would have been missed
It is all about gaining insights
One amazing fact about online marketing is that everything can be measured. The number of the physical shop visits you receive can be directly attributed to the digital advertising efforts you make. If the data is presented well, once a person clicks on an ad, the chances of seeing him or her at your shop days later are high. The only challenge with having lots of data is that you can be overwhelmed easily. Many people are analyzing data daily, and drawing some insights from the data needs more than formulas and spreadsheets.
Communicating your data findings to key stakeholders is challenging
While many organizations have lots of data to work with, merely half of those organizations’ executives can manage to convey the data insights to stakeholders. While passing the same communication to executives is not difficult, it becomes challenging trying to communicate with other stakeholders, especially if the data is presented in non-contextual spreadsheets or poor graphics. If the presentation is backed with insightful visuals, then the challenge is dealt with. Data visualization tools can transform data into something that can be acted upon. The importance of data visualization in organizations is not just for data presentation, but goes as far as strategic decision-making.
The need for data visualization in business is growing
As mentioned above, data is nothing if it is not visualized. Huge amounts of data are produced on a daily basis; therefore, understanding the visualization basics can be crucial in creating operational efficiency, boosting profits, and identifying markets that are untapped. Having data science skills in every business has been increasingly prioritized, as the data created every day can easily overwhelm businesses.