Visualization is the practice of converting numbers and data into pictorial representation for better understanding of the information. Visualizations provide an easier and faster way to grasp data, which also facilitates smoother decision-making. In a way, it’s a more interactive way to explore data.
For example, if you looked at a sales chart, you could instantly tell which product was most liked amongst customers across multiple cities. On a deeper note, you could also explore trends and the peak sales period. However, if you tried analyzing the same with figures and numerous columns of data, it would probably take more time and effort to arrive at the same result. And, that’s exactly how the human brain is wired to function. It can process images in 13 milliseconds. This is where visualization comes in!
So, how does data visualization add value to an organisation? Let’s have a look:
I. Benefits of Data Visualizations
- Increases productivity
It not only reduces the cognitive load of information processing but also improves the memory retention power of the graphical representation. This leads to better productivity of the staff.
- Spot and track trends
With data visualization, identifying patterns and analysing trends becomes easier. Over a period of time, comparing past trends with the current trends gives a better perspective of the business growth.
- Puts data into context
The artistic illustration makes the content more vivid and engaging for the users. The recreation of a simulation or understanding the effects of an algorithm in a graphical form gives a better outlook of the actual scenario.
- Make informed decisions
It simplifies the complexities that enable easy identification of data in terms of patterns or relationships. It draws people’s attention to areas of interests or differences enhancing their decision-making abilities.
II. Downsides of not adopting visualizations to represent data
- There is a high possibility that certain points may be missed out in the traditional presentation of reports. Due to clustering of numbers and data, hidden information may be looked through.
- The presentation of raw data may not attract response from those who view it. On the other hand, visualizations can make stronger value propositions and have a deeper impact on the audience.
- Analysing complex data requires a lot of effort and can be time-consuming. Visualization solves this problem by presenting information in a simple yet meaningful way, which is easily understandable by the human brain.
- Competitors may have a stronger presence by creating a better user experience through visualizations.
Visualizations can be used as a means to communicate insights through impactful and engaging representation of data. This aids in improving productivity and clearer understanding of information for better decision making. Knowing all this, companies can leverage this powerful business tool to reveal an array of business opportunities.