In a world where data is driving the strategic decisions of organisations, it is imperative to translate data into simpler forms and make it more accessible. This has led to an increase in the demand for skilled Data Science professionals. Accordingly, Data Visualization is becoming an increasingly essential part of the business world serving numerous benefits in terms of effective organisational decision-making.
This blog post will focus on the significance of Data Visualization, its key benefits and the various types of Data Visualization tools trusted by specialists for making data accessible.
What is Data Visualization?
Data Visualization is the process through which data and information are represented in the graphical format. These graphical depictions include graphs, tables, charts, etc. The objective is to make data presentation more comprehensible. Data Visualization helps in outlining trends, patterns as well as outliers in data. The use of the graphical representation ensures easy comprehension of complex information by the non-tech people. Decision-making being an essential part of any organisation, it may be identified that Data Visualization is a huge contributor for making essential organisational decisions.
Importance of Data Visualization in Data Science
Data Visualization may be considered as an essential part of the Business Intelligence process enabling organisations to derive conclusions more effectively. Data Science experts make use of raw data from where it goes into a completely a modelling process and finally is delivered to the organisational authority using to reach the final conclusions.
The importance of Data Visualization in Data Science can be understood by the fact that it is able to present data and communicate in a visual format that is universal and fast. Organisations mainly use Data Visualizations for the purpose of understanding customer behavioural patterns, industry trends, etc, enabling them to understand their market conditions. Moreover, it also allows organisations to understand which areas need to be improved and what innovations need to be induced in their businesses for excelling in the market. It becomes also important to understand that Data Visualization also allows decision-makers to gain a clear insight of the possibility of future growth.
Benefits of Data Visualization
The impact of Data Visualization is high on an organisation’s decision-making process and it becomes essential to reap all the benefits for a business. Essentially, the following points cover the various benefits that Data Visualizations may have for an organisation:
Establish a clear link:
Business decisions are made based on understanding and evaluating the relationships between independent variables of data. With the help of Data Visualisation it is possible to evaluate the correlation between the independent variables and make sense of those variables.
Exploring market trends:
Predictions are necessary for an organisation to identify and analyse in the form of market trends which can enable a business to undertake tasks catering to the new trends in the market. With the help of Data Visualization using charts and graphs, industrial trends are identified and hence, contribute to business decisions.
Effective strategy building:
It is important for businesses to undertake effective strategies for customer acquisition and customer engagement with a brand. However, it is also essential that businesses have an understanding regarding the customer behaviour and their purchase decisions for a brand over a period of time. To understand the frequency at which customers make decisions to purchase from a brand is possible through Data Visualization.
Identifying potential customer base:
With graphical Data Visualization, it is possible to identify the target market for a business. Identifying an effective target market is important so that a business is able to develop and innovate through its products and services based on the needs and requirements of the target audience and focus on this group of customers for engagement.
Unveiling the potential risk:
It is also essential for businesses to identify risk metrics and the values in order to understand the potential risks faced by a company that it needs to deal with. Certainly, with the help of Data Visualization it is possible to evaluate complex spreadsheets in a simplified way and identify the numbers in a more understandable way. This makes it easier to have a clear idea on the areas of risks needed to endure plausible actions.
Faster result display:
Data Visualization results are often depicted through a functional dashboard. With the analysis of market changes and patterns, use of Data Visualization tools helps in displaying the results faster and ensures that actions and responses are undertaken accordingly. Further, the actions taken based on the Data Visualization conclusions should not include and must avoid mistakes.
Easy representation of complex data:
Data Visualization is also used in the field of education and might not be quite famous. Simply relying on data makes it difficult for students to just understand the numbers by observing a table. Synthesising the data in an easily readable form is important for transmitting knowledge to the students. Accordingly, this requires Data Visualization to present educational information in the most appropriate manner.
Best Data Visualization Tools
In order to perform Data Visualization there are specifically efficient tools that can be utilised in order to present any raw data in a much more influential manner. There are a host of Data Visualisation tools are available and can be used by specialists, some of these are:
- Business Intelligence Reporting tool- With this tool it becomes possible for an expert to create automatic dashboards. These dashboards can be utilised for keeping track of the progress of a business, thus, enhancing the possibility of growth of the business
- MS Excel- This is yet another most effective Data Visualization tool that can be used to evaluate and interpret Data in the form of numbers and graphs, thus, presenting it in the most effective manner.
Some other Data Visualization tools: IBM Cognos Analytics, Qlik Sense, and QlikView, Microsoft Power BI, Oracle Visual Analyzer, SAP Lumira, SAS Visual Analytics, Tibco Spotfire, Zoho Analytics and D3.js
Also read: Data Visualizations in Python and R
From the above discussion, we can conclude that Data Visualization is pivotal in ensuring effective decision-making capabilities and actions of business organisations. Accordingly, it is possible for experts to make use of different tools to undertake decisions and ensure that the data is presented in a much more understandable manner. Since Data Visualization helps in making data comprehension easier and more accessible for the decision-makers, every Data Science aspirant must have expertise in this skill.