5 Reasons Why Data Visualization is Important for Business
Every company has data that needs to be analyzed. However, more than the analyzed data is often needed to explain the full meaning that the data can deliver. Data visualization is a way to make the analysis of data easier to read and understand.
In the world of data, data visualization is no less important than data analysis. Because It’s represents data in another form such as graphs, diagrams, or histograms, so makes the data easy to understand.
In this article, we will explore further why visualization can have a significant impact on business.
What is Data Visualization?
Data visualization is the process of using visual elements such as charts, graphs, or maps to represent data. The goal of visualization is to translate complex, high-volume, or numerical data into visual representations that are easy to understand.
In business, data visualization allows decision-makers to see analytics presented visually. In that way, they can understand difficult concepts or identify new patterns. This makes decision-making easier and more precise.
Understanding Data Visualization and Big Data
In the growing era of big data, it is becoming increasingly important to curate the reams of databases that are generated every day. The implementation of data visualization will go a long way in presenting information in a clear form that will help highlight significant trends and differences.
In addition, it is also necessary to use the right analytical techniques and tools to analyze big data. Some technologies of big data analysis will help identify trends, patterns, and business insights that can be used to make decisions.
At the same time, DataViz will help explain and summarize the information that has been analyzed from big data. This allows organizations to effectively communicate insight and findings to the various parties involved. Thus, visualization not only plays an important role in data annotation and understanding but also in data-driven decision-making.
Advantages and Disadvantages of Data Visualization
Compared to using text, visualization can be a method to provide the audience with an easier understanding of information. In addition, visualization also provides benefits in several ways:
- Improving understanding
The main advantage of data visualization is its ability to increase understanding of the information presented. Humans tend to process and remember information in visual form more easily than information presented in text form.
Visualization makes data possible to present complex information more simply and intuitively.
- Provides insight or information quickly
Data visualization can capture the whole story of the outputs from data management so that it can be digested more easily in a short period of time. If there is no visualization, people will take longer to get insight or information because they have to search for the information manually.
- Uncover patterns and relationships
Visualization also allows us to uncover patterns and relationships hidden in the data. Through graphs and charts, we can see trends, comparisons, and correlations between variables.
This will certainly help in gaining new insights and a deeper understanding of the data.
Although has many advantages, there are also several challenges that must be faced in its use. Some of the challenges in data visualization are:
- Wrong interpretation
If not presented clearly or without sufficient context, it can lead to incorrect interpretation. Therefore, it is necessary to ensure that the cold message can be clearly understood by the audience, and include explanatory captions if needed.
- Data quality and quantity
The quality and quantity of data used in visualization greatly affect the results of the data visualization. Inaccurate, incomplete, or irrelevant data can lead to incorrect visualizations. However, too little or too much data can also affect the effectiveness of the visualization.
- Too much or lack of detail
Another one of the challenges in datavis is finding a balance between the presentation of data. A good visualization is expected to provide enough detail to understand the information, while still maintaining the simplicity of the visualization.
Too much detail can make the visualization look complicated and take time to understand. Meanwhile, too little detail can make the visualization uninformative.
5 Types of Data Visualization
- Table
Table is a presentation of data through columns and rows. Columns are the Y-axis and rows are the X-axis. Compared to other types, tables are more effective for displaying qualitative data in an organized manner and explaining the relationship between the data.
- Chart
Charts are visualization of data in the form of maps, diagrams, graphs, or tables. There are many types of charts that can be chosen according to data needs, such as pie charts, line charts, bar charts, stacked bar graphs, and many more.
- Graph
This type is in the form of a line, curve, point, or area graph whose presence represents certain variables. Graphs are usually drawn along two axes at right angles.
- Geospatial
This is the presentation of data in the form of a map. It generally uses different colors and shapes to show the differences and relationships between one piece of data and another.
- Infographic
An infographic is a data that combines visual elements and words. This type of data is usually presented with diagrams or charts. It is an effective way to present data and can help explain complex issues in an efficient and timely manner.
What is Data Visualization Role in Supporting Business Growth?
- Help identify the business problem
Data that has been presented into easily digestible information will be able to present several important insights, covering potential issues, trends, or certain patterns. This will help the company to take preventive action and overcome problems that can harm the business.
- Accelerate business decision-making
The longer it takes to understand data and problems, the longer it takes to make a decision. With the help of visualization, policymakers can quickly understand an issue and can make decisions as soon as possible.
- Make more strategic business decisions
In addition to saving time with faster and easier data analysis, data visualization allows key stakeholders and upper management of the business to identify patterns, including trends, and gain insight to stay ahead in various aspects of the business intelligence.
- Enrich the team’s perspective
When data and information are easily digested and consumed by more people, its easier for them to get ideas to share their opinions.
Imagine if in one team there are only a few people who understand a fairly technical data presentation. Surely some other parts will feel hesitant and not confident to express their opinions about it.
- Increase sales in business
Data visualization produces credible and accurate insight. When executives, stakeholders, managers, and the rest of the team understand the data well, they can act on the data to turn it into business strategies.
The right strategy based on data makes the possibility of increasing sales even greater.
5 Examples of Data Visualization in Various Industries
- Healthcare
There are many benefits when the healthcare industry implements data visualization in its business activities. This has proven to be very effective and beneficial.
The need for data visualization tools for crisis management was very apparent during the Covid-19. The data generated by various roles can help monitor quarantine activities, monitor health facilities, map the spread of the virus, provide a picture of the accessibility of pharmacies, and help depict risks.
- Retail
Regional and local companies can greatly apply data visualization in their business operations. Simply, data visualization allows businesses to save a lot of operational budgets.
For example, a local business can obtain data on potential customers by conducting demographic analysis as well as checking based on income data set.
- Public Sector
The way of analyzing fake data has changed from a conventional way to a modern and more effective way. In the past, the fastest way to find out the validity of data was by directly asking some questions. Nowadays, fact-checking can be quickly done using text mining, predictive framework, anomaly detection, and pattern identification methods.
Through data visualization, policymakers in the public sector discover intuitive techniques for displaying data insight that can help focus attention on bad cations. In addition, the application of visualization can help the public sector detect fraud, waste, and abuse in order to reduce the risk of future fraud.
- Transportation and logistic
In this sector, Data Visualization can help present data about road monitoring, the condition and number of transportation modes, and effective optimization to minimize obstacles and accidents.
Another example of application is the use of geographic information systems to estimate the right space in the construction of parking spaces, parks, or road access.
- Environment
Ecologists experience problems and difficulties in identifying patterns that cause various ecological phenomena. The application of data visualization can be a perfect solution to this problem.
Ecologists can use data visualization that shows the macro and micro levels in determining the causes of ecological phenomena. Environmental consulting using data visualization techniques to utilize information from sensors and transfer it to the system will create a stable solution for the project.
Unlock the Power of Data Visualization with IBM!
In essence, the presence of data visualization can make it easier to run a business in various aspects. Many things can be optimized if an organization applies visualization to its business.
But unfortunately, there are still has its own challenges behind the many benefits it offers. One of the biggest challenges is how to quickly process data presentations from various data sources. Of course, this will be painful if done manually.
Of course, technological developments can always provide solutions for this. In the market, there are many data visualization tools that can be used to process various needs and data analysis.
IBM Cognos Analytics helps you dive into data, and uncover valuable insights and trends to drive informed decision making. These tools can help businesses confidently navigate complex data landscapes, identify growth opportunities, and get ahead in a competitive market.
Partner with Optus, and discover the transformative power of IBM Cognos Analytics to unlock the full potential of data visualization. Through Optus, you will have full access to IBM’s platform, which is renowned for analyzing and visualizing data with precision and clarity.
In addition, Optus also ensures personalized support and guidance, ensuring seamless integration, and optimal utilization of IBM Cognos Analytics to help boost business.