Data visualization and its growing significance in business decision making

As Carly Fiorina, tech stalwart cites,

“The goal is to turn data into information, and information into insight.” 

Digging for business insights that are far outreaching than just the key metrics is indeed more muscle added to business analysis. Data visualization helps businesses to look at information differently, with more imagination which gives insights that will actually promote business decision making to the next level.

In this write up, I am going to dissect how exactly Data visualization is going to help businesses chop down large chunks of data into meaningful nuggets that deliver value.

The four major benefits of data visualization can be presented as below: 

The above benefits of data visualization are applicable for businesses of all sizes and shapes. Even smaller businesses that are gearing up to launch themselves amidst leagues of big corporations can use data visualization to predict their sales volumes and market capitalization with ease.

Spot areas/processes where improvement is required

Business processes can get redundant with time. The changing market scenario demands every business to adapt themselves to remain agile and competitive. For this detailed understanding of the current customer behaviour, the product positioning of the business, market volume and similar statistics are required. Analysing them and comprehending information quickly for decision making requires data visualization. Mere statistics mean and median figures are no longer sufficient.

Identify factors that can affect customer behaviour

Extensive information and statistics about sales volumes, customer preferences/behaviour will begin to make sense when they are seen from a different angle. Especially with data visualization a better understanding of customer behaviour can be gained. It will lead to better product designs as pictorial understanding of which product sold the most, during which season and what price point, etc. can be known. Correlation and relationships between product choices and customer wants will become more evident helping businesses to fine tune their products.

Improve product placement/Portfolio management

Data visualization is being continuously deployed to pin-point emerging trends in products with better features. The return on investment on various products can be interpreted from a market point of view in a better light to decide whether to introduce new product lines to discontinue present ones. Investment banks and stock broking houses are using data visualization to zero in on investments that will increase in net worth in the future. Portfolio management using data visualization is a topic of its own Big Data Certification courses.

Simplifies business reports communication

Even now, most businesses are relying on pages long black and white table and columns with irrelevant data for decision making. It is no surprise that most businesses are suffering from a lag in quick decision as interpreting trends and key insights from conventional reporting formats are difficult. Data visualization depicted with graphs and diagrams makes it easier for businesses to better communicate the results amidst their own departments. There is also an increasing trend of businesses investing in Big Data training and certification programs for their key employees to take leverage of data visualization.

Benefits explained, is it easy to implement data visualization? It is easy, however, a business needs to prepare well in advance since adapting to a new technology requires investment in personnel training and development.

Here is what needs to be done before integrating data visualization into business decision making:

- Make users (employees, team lead and managers) understand the nature of data that will be used for data visualization

- Use what form of data visualization is going to be used

- Communicate the use of charts, graphs and diagrams across the organization for consistency

- Train employees how to prepare minimalist charts and diagrams that deliver information aptly

- Decide whether to use auto chart preparing software or tools or go for ingenious data visualization programs.

The Bottom Line

Data visualization is a magnificent business tool for any business that wants to maximize its business volumes without overshooting expenses. It simplifies strategy formulation, product placement and improves interpersonal communication of business reports within the organization. The only challenge that businesses will have to overcome is the training of personnel who will be using it routinely. Establishing consistency is the key to attaining success through data visualization.