Data visualization means representing information in the form of charts, diagrams, pictures, and other visual forms.
The human brain grasps visual information faster than it grasps raw data. Highly intricate reports can be summed up using simple graphics and visual representations. Through data visualization, decision-makers can focus more on the action and less on number crunching.
Take for example a graph showing the sales performance of one of your regional offices. If you simply look at the figures, it will be a bit difficult to know the overall performance. But if you can chart a bar graph using various sales figures with the x-axis representing the months and the y-axis representing the sales figures, it becomes easier to immediately know what the overall trend is and in which months the sales dip or rise.
Of course, this is a very simplistic example of BI-powered data visualization.
In big data, data visualization tools are essential for analyzing massive amounts of information for enabling data-driven decisions. Such visualizations can help us immediately identify trends and outliers.
Visualization is more so important when we are dealing with big data. Just imagine, if you simply look at the various data points running into millions, if not billions, you won’t be able to make any sense of it. On the other hand, if the various distinctions can be highlighted with the help of colors and shapes, you can easily distinguish between various trends and facts that must be highlighted. The data visualization tools embedded within a capable BI system turn your granular data into visually compelling and useful business information. Combined with basic computer logic, artificial intelligence and machine learning, from production metrics to costing to key performance indicators to risk analysis & forecasting, everything is almost just a visual glance away.
How the BI technology uses data visualization to help you make sense of big data
The concept of data visualization isn’t new. If you have been using the Excel spreadsheet software (or some other version) you must have generated bar charts and pie charts using rows and columns of data.
But data visualization in BI is completely in a different league. Data visualization in BI doesn’t just create charts and graphs, it presents stories. It becomes a powerful tool for sharing and communicating information in an easily digestible form. You can use it to demonstrate performance. You can interpret and predict trends. You can comprehend and make sense of the impact your new strategies are making. You can evaluate the performance of your individual employees working in individual departments in individual offices in individual cities, states, and countries. You can go as micro and macro as you want.
Listed below are some prominent benefits of using data visualization in BI
Of course, no matter how startling the imagery is, the end benefit of data visualization is that it helps you drive better decision-making. Here is how data visualization facilitates strategic decision-making:
See the big picture
Data can be enlightening, but the sheer size of it can also be confounding. You don’t want to see every number. You just want to see the big picture. Looking at the individual tree cannot tell you how much a forest has depleted. But a view from a satellite or even a helicopter can give you a realistic image.
How has your company been fairing in the month of November every year for the past 10 years? What about the first week of November, for the past 10 years? What would be the revenue if the raw material consumption could be brought down by 5%, within two years?
Data visualization allows you to identify high-level scenarios without you having to wade through thousands of numbers and calculations. Even small changes can completely alter the picture that is in front of you. You can color-code important information. You can choose different figures to represent different facts. You can drag-and-drop various elements to see what universal impact they’re going to have on your organization.
Make informed decisions, faster
As mentioned above, since you can see the bigger picture, you don’t need to spend lots of time going through individual figures and it enables you to make informed decisions, faster. Looking at the visual information, you can be confident that your decisions are backed by data. In the absence of data visualization, you may have to scour through gigabytes of data, or even if you don’t have to go through the numbers one by one, you may have to run complicated algorithmic functions to make sense of disparate data points.
Make data user-friendly
Complex and intricate data analysis used to be a realm of financial wizards or data experts. With data visualization, you can make complex concepts easy to grasp even by laypeople. It doesn’t mean you are completely doing away with numbers; it is just that, only those people need to delve into numbers who know what those numbers mean. For the rest of the people, the visualization can focus on the main story of your organization. For example, if you’re looking for investors for your startup, some investors may understand the raw data, but most of the investors will need to understand your ideas and your revenue model visually.
Almost all business intelligence software services put lots of stress on their data visualization module because they understand that ultimately, it is the data visualization capabilities of your BI software that are going to be one of the most valuable assets for your organization. No matter with which business intelligence solutions company you decide to partner with, just make sure that the solution also comes with strong data visualization capabilities.
Data visualization can help you introduce new products in the market with greater speed without the risk of introducing the wrong product. It can help you implement organization-wide changes in employee policies. It can help you give your advertising and marketing a completely new direction. You can maintain your inventory or stock up items in advance when the data visualization module of your business intelligence system tells you when demand for a particular item peak. We are always better prepared, in less time.
