''The greatest value of a picture is when it forces us to notice what we never expected to see''.
This notable quote by John Wilder Turkey, an American mathematical statistician, details the expansive power and capabilities of data visualisation. As big data continues to inundate our databases, companies around the world seek an efficient way to make sense of such information. This is where the field of data visualisation comes into play. Whenever we are flooded with a heap of disorderly information, we often attempt to structure such information into a comprehensible format that is easy to glean insights from. Data visualisation essentially does the same. By taking trillions upon trillion of rows of data, removing the unnecessary elements, and bringing attention to the important details in a comprehensible visual format, data visualisation allows analysts to perform their jobs at a much more efficient rate. Statistical trends become easier to notice, outliers are spotted with ease, forecasting abilities are strengthened, and much more.
Why is Data Visualisation Important?
The applications of data visualisation are not limited to any one industry in particular. In fact, in almost any modern industry you find, examples of data visualisation are likely to be found. That’s just how important it is. But why exactly are so many companies using it? As mentioned in the section above, the answer lies in its ability to take large portions of unstructured data, alter it into an intelligible format, and strategically represent the data in a way that effectively highlights its significant aspects. By doing so, businesses can make educated decisions, predict future sales volumes and growth, identify and fix any errors, and get a better grip on their company as a whole.
What are the benefits?
The advantages of data visualisation vary in terms of industry and even company, but here, we will list some general benefits to implementing this practice in your company.
1. Examining and reacting to the market:
Through data visualisation, companies are able to accumulate their data in an orderly manner in order to give your business insights into which particular demographics in the market are interested in your services and which are not.
2. Understanding correlations:
By analysing charts and graphs constructed from company data, your business will be able to identify the relationships between specific independent variables and their outcomes in the market. With an enhanced understanding of such relationships, you will be able to manipulate your company’s independent variables to an optimal point that guarantees the most benefit.
3. Analysing frequencies:
By observing the rate at which your clients purchase a particular service or product, your company will be able to predict the rate at which new clients interact with your company. Based on this information, you can plan for new marketing events, develop new customer retention strategies, and more.
4. Analysing trends:
The final and most obvious benefit of data visualisation is the ability to examine and analyse trends. Trends, like frequencies, allow us to take past information, and apply it to a broad spectrum of future endeavors. Trends give your company a way to envision itself in the future and highlights potential areas of growth or loss.
Basic Data Visualisation Techniques
At its core, what makes data visualisation so powerful is its freedom to express data in a multitude of ways. Modern data consultancies provide a wide range of visualisation services to cater towards your company’s needs, and below we have listed just some of the many unique techniques that they often implement.
1. Histograms:
Histograms specialise in the representation of frequencies and are intended to provide an estimate as to where particular values are concentrated over a certain period of time. They are also helpful in singling out any potential outliers or data gaps.
2. Heatmap Data Visualisation:
A heatmap visualisation is a unique way of graphically representing numerical via rectangles, where each rectangle indicates a particular data value. The rectangles differ in color and size based on the data they are composed of, and in this way, are helpful in highlighting sections that are performing below average.
3. Infographics:
As opposed to a typical visualisation, infographics do not specialise in representing just one area of information. Instead, they incorporate several data visualisations in an appealing yet detailed and straightforward format.
With the rising popularity of big data as the standard source of information for businesses around the world, data visualisations are a vital component needed to effectively display such data. Regardless of how big or small your company may be, or what industry your company is situated in, data visualisations are certainly a tool that you should implement. From its ability to allow for quick reactions to market changes, to its ability to increase customer retention, the possibilities are truly endless with data visualisation.
About the author: Mark Roychowdhury is a Copywriter Intern at ei² niche consulting for #data #insights #performance www.eisquare.co.uk