The art of data visualization entails offering numerical and text data in a graphical or pictorial form, through various forms of charts and reports. It helps the observers in gaining a better insight into the data quickly. Apart from that, with the help of data visualization, decision-makers are able to drill down through the layers of detail that transforms the perspectives so that they can easily review the facts behind the analysis and take better decisions accordingly. Here, we will delve into seven most frequently asked questions about data visualization by the curious enthusiasts, and offer appropriate replies to them. Have a look.
- Q. – How can data visualization help an enterprise monitor the performance of its various departments?
A– Primarily speaking, data visualization offers a ready means to tell stories from the data. For example, heat maps can show the development of product performance over time in multiple geographic areas, making it easier to see those that are performing very well or below the minimum required levels. It allows executives to drill down into specific locations to see what’s being done well or poorly.
Additionally, it may help them learn that targeting higher income market segments doesn’t sell higher-priced products, or that traditionally solid sales of cleaning products are now less popular compared to environmentally-friendly green products. These insights could be used to brainstorm marketing strategies by region to support higher sales overall.
Also, data visualization tools provide a more efficient way to use operational data, as it makes it convenient for the business leaders to recognize and respond to the changes in real-time performance and market indicators.
- Q. How may data visualization be of help in keeping track with the changing market scenarios?
A- A huge amount of data is being collected on consumer behavior nowadays, and it can efficiently expose many new opportunities for adaptable companies. However, that requires that they are consistently collecting and analyzing this information. By using data visualization for monitoring key indicators, business leaders can more easily spot market shifts and trends in varied and large datasets.
For instance, a clothing chain may see that in the Southwest, sales of darker suits and narrower ties are on the rise. This may allow them to promote clothing packages including both, or a new line of narrow ties well ahead of rivals who haven’t noticed the trend yet.
- Q. – Does data visualization also provide any advantage in the field of artificial intelligence (AI) and machine learning?
A- Machine learning is one among the hottest terms being used in the global business sectors today, and the use of data visualization only enhances its application. As a matter of fact, the big companies like Amazon, Google are using machine learning to eliminate spam email, while companies like Pinterest use machine learning to show you relevant content, Yelp uses machine learning to sort through user-uploaded photos. Even Disqus uses machine learning to weed out spam comments. Therefore, it is imperative for every enterprise now to get ready to start using machine learning for their businesses or user-generated content that obviously includes a substantial amount of data visualization.
- Q. – How does data visualization empower an enterprise in responding quickly to dynamically changing conditions?
A- This is a scientifically proven fact that the human brain tends to process visual information far more easily than written information. Use of a chart or graph to summarize complex data ensures faster comprehension of relationships than cluttered reports or spreadsheets.
It, therefore, provides a very clear form of communication allowing business leaders to interpret and act upon their information more rapidly. data visualization tools can provide real-time information that’s easier for stakeholders to evaluate across the enterprise. Faster responses to market changes and quick identification of new opportunities is a competitive advantage in any industry.
- Q. – How can data visualization help me correlating business functions and market performance effectively?
A– The process of data visualization is predominantly visual in nature, which makes it easier for the users to track connections between operations and overall business performance. Finding a correlation between business functions and market performance is essential in a competitive environment.
For instance, the executive sales director of a national software company may see immediately in a bar chart that sales of their flagship product are down eight percent in the Southwest region. The director can then drill down to see where the variances are occurring and start formulating a plan. In this way, data visualization allows executives to spot problems immediately and act on them.
- Q. – Is data visualization going to help me in analyzing my data in multiple manners and finding more insights into it?
A– As a matter of fact, one of the biggest benefits of data visualization is that it exposes changes in a very quick manner. Also, interactive data visualizations encourage users to explore and even manipulate the data to uncover other factors. This creates a better attitude for use of analytics.
For instance, data visualization tools can show a boat manufacturer that sales of its larger craft are down. This could be due to a number of reasons. But team members actively exploring related issues and correlating them to actual boat sales can identify the root causes and find ways to minimize their impact to drive more sales.
- Q. – Can data visualization also make the organizational communication more seamless and helpful?
A– It’s a usual process in business enterprises that various reports of crucial importance are submitted to senior management as formalized documents that are often inflated with static tables and a variety of chart types. They become so elaborate that they fail to make information vibrant and memorable for those whose opinions matter most.
Reports coming from data visualization tools, however, make it possible to encapsulate complex information on operational and market conditions in a brief series or even single graphic. Decision makers can easily interpret wide and varying data sources through interactive elements and new visualizations such as heat maps and fever charts. Rich but meaningful graphics help engage and inform busy executives and business partners on problems and pending initiatives.
In a nutshell, we can conclude that while data visualization is helpful to business enterprises of all sizes in a number of manners and ways, it is highly imperative that the companies offer a serious thought towards adopting proper strategies for leveraging maximum benefits out of data visualization in their processes.
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