The importance of data visualization in BI

Data visualization assists in narrating stories by crafting data into an understandable form, showing the outliers and trends. In 2017, the global data visualization market was $4.51 billion. But in 2023, it's expected to hit $7.76 billion, with a CAGR of 9.47%.

The target of BI is to gather and transform data into actionable details. This is how you can accomplish strategic and operational goals and underpin a person's decision-making. However, the importance of data visualization in business intelligence is committed to visual functions. It means 90% of the details are transferred to your brain visually.

The human brain processes visuals 60,000 times more rapidly than text. This is why visuals remain in the memory and boost comprehension. Data visualization tools for business intelligence are essential as everyone produces a staggering 5,6 zettabytes of data yearly.

Data visualization gives birth to business intelligence. With the help of this strategy, business leaders can narrow down the data to check if they can boost operational processes.

Importance of Data Visualization

What is the importance of data visualization in business intelligence? Data Visualization gives an efficient way to pass on details in a universal method. Such a good practice help companies find out the factors affecting customer behavior.

Also, it helps identify the areas, which need more consideration. This is how you can make data memorable for your stakeholders. They will know where and when to put particular products and assume sales volumes.

The other benefits of using data visualization for business analysis are the following:

A magnified understanding of the subsequent steps for improving the company.
An improved capability of acting on findings rapidly.
The ability to grasp details faster, which helps boost insights.
A hassle-free distribution of details, which maximizes the scope to share insights.

Top Data Visualization Techniques

Different types of data visualization for business intelligence are available in the 21st century. Based on the modeled information and its motto, a wide array of distinct tables & graphs are used to build a dashboard.

A few visualizations can be automated, and others might be created manually. Irrespective of the creation strategy, different types of data visualization for business intelligence are there to fulfill your needs. However, these are the primary data visualization techniques for business intelligence.

Pie charts

These are one of the most basic data visualization techniques for business intelligence. It uses a wide array of applications and is perfect for showing proportions. If your audience is usually keen on knowing the key takeaways, you can create a pie chart for a simple data demonstration.

Let's consider an example of the Earth's atmosphere composition:

Earth consists of 78% of Nitrogen, 21% of Oxygen, and 2% other gases.

So, thanks to the pie chart, you can easily show the composition of different gases.

Bar charts

Bar charts are easy-to-use data visualization techniques for business intelligence. You may compare the quantities of distinct groups or categories with these charts. Below is the best example of Apple's bar chart from November 2020 to May 2021. The period of high volatility is shown in red, and each period is demonstrated in long bars. You may use these charts to detect trends in assets or securities instantly.

Gantt charts

These are the simple project timelines in the bar chart forms. The leading motive of a Gantt chart is to assist you in:

Planning work in sprints.
Comparing actual vs. planned timeline.
Envisioning how several tasks and projects grow over time.

The best example of a Gantt chart lies in designing projects. You may use these charts to plan design launches if you're a designer. You can also use it to track brainstorming and share draft progress.

It helps you break each step down of the design project. It means you can quickly envision the total duration of the project.

Role of Data Visualization in Business Intelligence

Before understanding the role of data visualization in BI, you must know how is data visualized in BI. It's usually a description of how business intelligence works.

You must interpret the data types and sources.

Consider the data sources and types first. The interpretation of data aids researchers in classifying, manipulating, and summarizing the details to answer questions.

Determine the transformation methods and database qualities.

Once data type and sources are interpreted, you may determine transformation methods and database qualities. Modified data makes better-organized results.

Check if the data originated from its elementary storages, such as CRM, GA, ERP, and SCM systems.

Combined CRM and ERP software lets your sales team get into every customer interaction in a single place. These include purchase inventories, year-over-year trends, supplier details, etc.

Check if the data shifts to a staging location using API channels.

Data shifts are made to function with common program sources. It does so while making a few broad assumptions about the structure of the source material.

Cleaned data needs to be transferred into a data warehouse.

Your data warehouse must have reliable, precise, and deduplicated data for downstream analytics programs and other corporate systems. Having clean data will boost overall efficiency and let the highest quality details be in the decision-making.

Here are the leading roles of data visualization in BI:

Super-fast decision-making

Are you thinking of how does data visualization impact business intelligence? It helps evaluate complex data, detect patterns, and withdraw precious insights. Untangling tricky details and demonstrating them visually allows decision-makers to make in-depth business decisions quickly.

Trustworthy impact on businesses

BI takes maximum data strips and transforms them into insightful data points while big data wins industries. Here comes data visualization, which does its part by showing the data to send the details to a human brain. Therefore, visualization has plenty of aesthetic value and can express & communicate an unambiguous message.

Checkout here the Common Challenges of Business Intelligence Implementation

The Significance of Data Visualization Tools for Business Intelligence

Specialized data visualization tools for business intelligence that depict complicated details make it feasible to visualize data. To depict enormous data sets, they use a variety of visualization formats, including graphs, charts, and heat maps.

As a consequence, analyzing a lot of data is much simpler than having to comb through spreadsheets or reports that are filled with raw measurements. Ultimately, these tools assist you in quickly comprehending essential facts and making effective business decisions. These are the top benefits of data visualization tools for business intelligence:

Top-notch business decisions.
Straightforward trend assessment and exploration.
More authentic customer sentiment assessment.
Detect correlation between operations and results rapidly.
Nurture more business users to communicate with their data.
Detailed insight into newer trends and hidden patterns.
A view into contextualized data and predictive analysis.

By 2025, the amount of data generated globally is anticipated to surpass 180 zettabytes. Therefore, lacking the proper tools for converting it for the general public, incoming big data and the intricacy of that data may be intimidating.

Humans are visual beings, and data visualization helps give people who use BI tools to get information quickly. Additionally, it helps businesses and product managers create analytics experiences for their customers that promote and support data-driven choices.

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