How Data Visualisation Can Help Your Business Grow
Success of a business depends on many factors which also include efficiency of analysis and interpretation of a large amount of data such as records of sales, wages, market trends, etc. This helps the firm make the right decisions and a strategy that is based on relevant information. But it also increases confidence in business decisions or alarms the firm that it needs to reconsider its strategy.
Since business decisions and strategy are never made by a single person, data analysis and interpretation need to be presented to all key people in the firm in an understandable way. This, however, is not as easy as it may seem at a first glance because just about all businesses deal with large amount of complex data. The way they are presented therefore plays an important role in the overall success of the business.
Every business has its own way of data analysis, interpretation and presentation but in the recent years, most firms started using data visualisation in all processes especially presentation. This is due to the fact that it is a lot easier to understand an information in a visual than textual format. For example, a graph or chart can be understood virtually instantly by just about everyone, while reading a 20 page report which consists mainly of numbers requires a great deal of concentration as well as a considerable amount of time. In addition, pure textual format increases the risk of misinterpretation of the key data which in turn can lead to poor business decisions.
The use data visualisation to both interpret and present the key information does not only save a lot of time but it also dramatically reduces the risk of misunderstandings and misinterpretations as a graph, dial, chart and other visual data presentation method is instantly understood. This reduces uncertainty and increases confidence in relevant decisions, while the decisions which are made on the basis of analysis of all key information play the key role in the success of the firm. A single graph, dial, chart or other data visualisation tool, however, is not enough to maximize the potential of the available data.
In most cases, one or more people have to transform textual data into a visual form which means that the accuracy of analysis and interpretation depends greatly on the personnel which is responsible for this task. In order to take advantage of data visualisation and avoid the risk of misinterpretation at the same time, data presentation should always include other materials including textual ones which support relevant information, while the data which are not included in the presentation should be explicitly mentioned. The person who presents the report should explain which data were left out, why and how they influenced the interpretation. Also, data visualisation should be broken into several graphs, dials, etc. rather than being presented in a single visualisation in order to make it more understandable.