Importance of Data Visualizations Tools


Data visualization is a visual communication method that helps to read, analyze data and information with higher speed and accuracy. Data visualization is important to create meaningful information and decision-making power in the brain. Data is useless if it’s not creating any meaning. That’s why data visualization helps to present meaningful and productive data to its users.

Today, you can see that it’s tough to analyze the data in a shorter period of time with less human power. It’s because the amount of data that is generated by websites, e-commerce stores, CRM applications, Website Analytics applications, Social Media Analytics applications etc. is big, even sales and purchasing details are a big amount of data that is tough to understand each day.

That’s why data visualization tools are integrated into almost all the business applications such as websites, marketing tools, Facebook analytics, Twitter analytics, Google analytics, CRM; Sales & Customer support tools and many more.

Even there are third-party applications that only specialize and provide data visualization services.  And Microsoft Excel is still used by thousands of small business owners, banks, and companies to visualize the business data so that it helps to understand alternative transformational situations.

Daily life example of data visualization is network signal bars in mobile phone and wifi signal bars in the computer. And you understand very quickly about the signal strengths in the area. If that was in dynamic numbers such as 394G#h5.000, Can you understand that? No. Even when you use a TV remote to increase volume, you see the horizontal bar indicating the level of sound instead of displaying sound frequency that is a data visualization.

Data visualization is when you represent normal data in meaningful and productive methods. Especially data in which thousands of variants exist and that is not possible or very difficult to create the meaningful and powerful decisional platform.

Now see the below example, in which capsicum vegetables containing various colors, but it’s tough to find out each color code. I did it manually to create this example so that you can understand the basic concept. Now data is similar to capsicum vegetable (any object) colors that contain various information such as website visitor age, interest, demography, traffic source, time on the website, device, internet connection and hundreds of other things.

greatest example about the importance of data visualization

It’s impossible to collect, read, visualize and then analyze big data manually and to reach conclusion. Especially when the decision is about large investment. That’s why data visualization is recommended to find meaningful information.

You know that in Microsoft Word, Excel and PowerPoint applications there are various Smart Art, Charts, and Graphs, diagrams to represent and animate data visually. But that was the practical beginning of basic data visualizations.

Now let’s understand with a basic and simple excel chart, why data visualization is important for small business owners?

data visualization sample - income and expense chart report

In the above chart, you can see that data is visualized. Now, what this visualization is representing?

  1. You can see quickly what was the income up and down a level in 2016, as well as expenses and savings.
  2. You can see that income from May 2016 to Aug 2016 is very low. And low-income level representing that lower expenses, cash in hand is less and there is not the big amount of savings as compared to other months.
  3. Now, the above-visualized bar chart is easy to compare the business inventory and growth and downside of business.
  4. The above chart is easy to understand and even high school students can see the difference between data. So you don’t have to be very smart to understand the data visualization, that’s what is required by a data visualizer to represent data in the easiest formats.
  5. Now you can see and investigate the results, why in few months income is low? What you did before your income level is highest. Even you can see the growth pattern in income and even you can compare last year’s income report.


Related: Importance of Data in Business

I hope the above data visualization can help you to understand how data visualization can create the difference between business decisions. The above example is created manually but nowadays there are various business inventory tools that not only calculate the business transactions but also showcase the important data visually.

Let’s understand why data visualization is important for online businesses, website owners or website data analysts?

You know that there are various uses of the Internet in our daily life. Almost all kinds of businesses, organizations, teachers, and innovators have websites, and many looking to create a website. And that’s why it’s more important for online business owners, companies, educational institutions, and every website owner to conduct website traffic data analysis on a regular basis so that they keep leading in a competitive market.

Here you can learn more about it: How can businesses benefit from using analytics on their website

In the following example, you can see the age of website traffic and gender in a pie chart. Which it’s indicating that more than 45% of people are between 18-24 age and 64.8% are females. Now it depends on the decision-maker how they see and analyze this data to make the next change or update or optimize the website.

demographics - Gender and Age data visualization

There are various website analytics tools such as Google Analytics in which you get the website traffic data with visualizations. Even you can export the data to excel to create a filtered visualization. There are various other data visualizations such as real-time website data, bounce rate, traffic, frequency, and sessions etc. Website traffic data visualization is automatically created by Google Analytics applications that are an easy, faster, and effective method to understand the website status. That’s why data visualization is important for website owners.

I think the above two examples are enough to understand data visualization and its importance in the current era. Data visualization is important in education as well. If teachers use visualized data materials then it will be easier for students to understand complex statistical and mathematical structures.

Data is visualization is important for social media marketing campaigns, print media, and digital media companies. Today’s business decisions are influenced by the behaviors of internet users. Digital markets or online businesses are very competitive that’s why it’s important to stay focused on the business process and development.

It’s important to create and organize complex data structures from multiple sources. It’s important for social media marketing companies to use data visualization tools to understand and compare multiple data sources they are getting from Facebook, Twitter, and other social media platform. So that it can help them to target the right people at the right time on the right social media platform.

It’s important to represent data visually that look meaningful along with text, speech, and news on TV, YouTube videos, and print media, and blogs.

It’s helpful for readers to see relationships & compare the pattern of data nodes. But it was a tough task even for expert analysts to compose a large amount of data. That’s why Business intelligence tools, visual analytics applications not only compose big data but also represent it quickly & accurately with various methods such as line charts, bars and pie charts, filters etc.

That’s why,  It will create importance of data visualization for new generation businesses to use the power of AI integrated data visualization tools, cloud computing, and cloud storage features to build and share outstanding digital solutions for people.

Data visualization is important in science, banking, engineering, trading, and aerospace, energy, digital business, and digital marketing fields. In these fields it’s important to visualize big data in real-time with heat maps, rendering layers, 3d charts, maps etc. so that users can make the right decision to reach the highest performance and productivity in the market.

That’s why data visualization tools are important to create reports, analyze the real-time situation of daily life business and organizational situations.

There are various data analysis applications to create smart visualization. Smart and meaningful visualizations help to discover the hidden parts or problematic facts that are not possible through traditional data visualization tools.

We are living in the digital world where artificial intelligence, machine learning, predictive analytics, the internet of things and cloud computing etc. technologies very soon change the way we take, communicate, operate and predict daily business and personal online offline activities and decisions.

Even AI predictive analytics implementations in data visualization explore and create new big data database management techniques. In the effective representation of data techniques, it’s important that it will explore new insights & stories that inspire and win the trust of the analyst to take a decision in real-time. And in all these tasks data visualization is playing a role to make it simple and effective that consume less time and improves productivity.

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