Data visualization is the representation of data or information in a graph, chart, or other visual format. It communicates relationships of the data with images. Today, information is better absorbed if it is presented in the form of beautiful diagrams and graphs. So, why is it important for companies to use data visualization techniques and how to use it - that's what we'll talk about.
Why is data visualization important?
According to a recent Microsoft study, the average human attention span is 8 seconds, which, by the way, is a second shorter than the average attention span of a fish.
Humans respond better to visuals than to any other type of stimulation. The human brain processes visual information 60,000 times faster than text. Visual data makes up 90% of the information sent to the brain. Data visualization is used in all industries: it is an important step in data analytics and gives companies the ability to critically evaluate information and audience requests. Sum up, we can say that data visualization is important because it allows trends and patterns to be more easily seen.
How do companies use data visualization?
Introducing an analytics culture into an organization is not an easy task. A company can face many obstacles along the way, the biggest of which is the lack of data processing and analysis skills.
This is where data visualization comes in handy. Anyone can perceive visual information and identify anomalies and outliers. Thus, these capabilities help in analyzing, interpreting data not only to managers at the highest level, but also to managers of departments and branches and their employees. A side effect of such a process may be that all stakeholders will have access to a single field of relevant information. However, this issue is resolved by setting up access rights.
Data visualization tools are also used for separate purposes, such as detecting anomalies in multi-million dollar datasets. There is no other way to look at such voluminous data.
As an example, you can see the Jenji Studio visualization tool that can bring you a storyline behind your data: coming from ERP, corporate cards and so on. With just one tool you can have a 360 degree overview of your expenses.
Learn more about Jenji Studio here
How does data visualization improve decision making?
High-quality data visualization is critical for data analysis and data-driven decision making. Visualization allows you to quickly and easily notice and interpret connections and interactions, and identify evolving trends that would not attract attention as raw data. In most cases, no special training is required to interpret graphical representations, reducing the likelihood of misunderstandings. A well-designed graphical presentation not only contains information, but it also enhances its effectiveness by being clear, attracting attention, and holding interest, unlike tables and documents. The better the visualization, the easier it is for decision makers and stakeholders to arrive at business-critical insights that can inform their strategic decisions.
Which data visualization techniques are used?
Most data visualization tools can connect to local or cloud-based data sources, such as relational databases. In this way, data is extracted for analysis. Users can choose the most appropriate way to present data from several options. Some tools automatically recommend the use of views depending on the data being analyzed.
There are several data visualization techniques available : pie chart, line chart, area chart, bar chart, frame diagram, map and so on.
Fortunately, Jenji has thought about all the benefits that companies can have by analysing and transforming their expense management data into data visualization. With Jenji Studio, your company can have the overview of all expenses, gaining insights and develoding rolling forecasts. To learn more about Studio click here