13 Feb 2023
Data is used very extensively nowadays to gain valuable insights. However, raw data is less effective than its pictorial representation. This is where data visualization comes into play. Data visualization simply refers to representing textual, numeric, or any other sort of data in a visual format. Now, most people wonder why data visualization is so important. I mean you have all the data at hand and all the refinement tools are also available. Then what is the need for visualizing this data in the form of a chart, graph, map, etc?
Well, it is so because according to research, the human brain processes visuals 60,000 times faster than text or numbers. This is indeed a very sharp contrast. It surely signifies the worth of data representation in a visual format. It literally means that you can save a large chunk of your time with a smart depiction of data. Today, we will try to highlight the importance of data visualization with the help of 3 associated facts. So, let us go through them quickly.
Suppose that you are the owner of a software house that deals with extensive amounts of data. Now, not everyone on your team is a data analyst or a data scientist. Therefore, for conveying the information from raw data effectively to everyone on board, it must be in a visual format. The tables and spreadsheets can be helpful but only if the dataset is small. When you have a large bulk of data, it gets humanly complex to view and gain valuable insights from it in numeric format. However, some form of charts, graphs, or maps can significantly ease this task for you. Hence, you will be able to explain your data to a diverse audience in a much better way.
With a pictorial representation of data, you can quickly grasp all the trends and patterns. Assume that you have a spreadsheet representing a company’s sales from the years 1990 to 2022. Now, you want to know in which year the company made the most and the least profit. It is practically very difficult to gain this information directly by looking at the spreadsheet. However, if for example this data is represented in the form of a bar chart, then you will quickly be able to pinpoint the years for maximum and minimum profits. In the same manner, you can conveniently identify and analyze all the different market trends and patterns.
With the correct data visualization strategy, you can make well-informed decisions and that too very swiftly. Suppose that your organization works on 15 to 20 different product lines. Let us say, under each product line, there are 10 to 15 different products. Now, you want to know which is your declining product so that you can redefine its marketing strategies for generating better revenues. It is very complex to identify this product by looking at the sales of your vast product range. However, with the help of data visualization, you can instantly identify this product. Afterward, you can create effective marketing strategies for improving its sales growth.
With this useful discussion, you will no longer question the importance of data visualization. Having said that, it is also very important to use the right tools for this purpose. This way, you will be able to get the most benefit from data visualization. Also, if you want any help in manipulating your big data, you can reach out to Folium AI.
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