What are the benefits of data visualization? Can graphical representation of information streamline operations, accelerate decision making, and potentially improve your bottom line?
If the research is anything to go by, then it’s an emphatic yes. Data visualization leads to decision making that's faster, smarter, and more strategic.
But what exactly is data visualization and what are the different ways it can help your business? Let’s explore.
What is data visualization?
In simple terms, data visualization translates information into a visual format – typically a map, graph, or table. As a result, data becomes easier to understand and easier to pull actionable insights from.
In essence, data visualization is another method of communication that’s used between data sets, data sources, and end users.
How is data visualization used?
At this point, you might be wondering just what sort of technologies you need for data visualization. Honestly, you don't need anything that extravagant. Modern tools and the right strategic partnership can go a long way. However, the best data visualization software is:
Able to transform structured complex data into coherent visual representations
Versatile with the capacity to process disparate data sources
Flexible, interactive, and intuitive
Able to provide automatic, real-time data
Able to provide secure access to data sources
Able to export graphical representations with just a few clicks
Top 3 benefits of data visualization
Data visualization makes it possible for end users to better explore and understand data – especially when compared to text-based reports or Excel spreadsheets.
This can mean instantly uncovering patterns and trends, highlighting problem areas, and discovering anomalies.
These aren’t the only benefits however. Let’s break it down even further.
Benefit #1: Faster understanding of data
There can be no doubt that raw data is difficult to analyze as-is and text-based reports are laborious to create, read, and understand. Thankfully, decision-makers don’t have to contend with these data sources any longer.
When people make use of data visualization tools, it’s easier than ever to convert structured and unstructured data into graphical representations (examples of data visualization can include pie charts and heat maps).
Presented with such visual representations, everyone from executives to entry level associates are able to understand issues faster, gain actionable insights quicker, and make business decisions in a more timely fashion.
Keep Reading: What is business intelligence?
Benefit #2: Easier identification of errors
When information is captured into data visualization tools and converted into a graphical form, it’s incredibly easy to uncover errors or anomalies.
In some cases, these can indicate end user error (data sets were inputted incorrectly). In other cases, it could be actual issues with production, sales, or other departments. This is crucial for correcting and avoiding potentially costly issues in the future.
Benefit #3: Gain a quick overview of the market conditions
Do you want to expand into new territory? Do you want to know who your competitors will be? Do you want to know how well those competitors are doing?
Whatever your business objectives for growth and expansion are, data is a critical part of your decision-making process. But without automated and simplified visualizations of market data, it would be near impossible to read, analyze, and understand all the data out there.
Methods of data visualization can take data from different sources, hosts, and times and combine it into one easy-to-explore platform. What does this mean? You get more insight, in less time and more action, for less cost. The benefits of data visualization and the business intelligence you can extract from these visualizations extend far and wide.
Keep Reading: How is business intelligence used in the real world?
Want to get started with data visualization?
The benefits of data visualization are innumerable. In our contemporary world where decision-makers are inundated with tons of information on a daily basis, using data visualization tools can significantly make life easier for them.
However, getting started with data visualization doesn’t need to be complicated or confusing and easier than ever to remove barriers to entry. As a data visualization vendor (trusted and used by SMB enterprises and organizations across various industries and sectors), our consultants are always ready to answer any questions you may have.
Contact us today to learn more about data visualization and your business intelligence options.
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