What Is Data Visualization? Definition, Types, and Functions

Are you looking for ways to analyze your company's data and achieve your business goals? Have you considered data visualization? 

This powerful tool is increasingly popular among businesses, especially those that are scaling up their operations. 

The visualization of data comes in various types, each one tailored to a company's specific needs. It's no wonder that many businesses see it as a key component of their success! 

In this article, we'll explore everything you need to know about visualizing data. We'll dive into what it is, how it helps businesses, its various types, and even share some tips on creating it.

Plus, we will highlight some of the best visualizing data software available. So, be ready to learn and grow your business!

What Is Data Visualization?

According to Simplilearn, visualizing data is the art of presenting data and information in the form of graphs, charts, or maps.

So, what is data visualization? In simpler words, it is a technique for transforming datasets into more readable and clearer visual assets.

In the business sector, data visualization has become an important tool for those who make informed choices since it allows them to see the data analysis portrayed visually.

It is critical to remember that visualization of data is not just about graphs, but more about how to visualize relevant and useful information to decision-makers in the company.

By utilizing the visualization of data, organizations can improve transparency and strengthen their business analysis to make more accurate decisions while enhancing their business strategy in the face of competitors.

Data Visualization Function

Once you understand what is data visualization, you also need to know why this element is important for business actors. Here are the general functions of visualizing data:

1. As a Problem Identifier

The data visualization function is to serve as a tool for identifying problems. By presenting easily digestible visual data, one can quickly identify issues, trends, or certain patterns that may disrupt business performance. 

Additionally, one can anticipate and overcome business problems more effectively because the insights obtained from visualizing data can provide a deep understanding of the internal and external dynamics of the company.

2. Speeding Up Decision-Making

In addition to identifying problems, visualization of data also helps teams to communicate data and issues effectively, making it an essential technique in speeding up the decision-making process and leading to more accurate decisions. 

The clarity of information presented in the visualizing data plays a significant role in the effectiveness of the decision-making process, and hence, businesses must take greater responsibility for any necessary changes.

3. Gaining More Ideas

Furthermore, using visualization of data as a method for presenting information may assist teams in gaining a new perspective and developing new ideas.

By presenting complicated data in a visually appealing and easy-to-understand style, other teams may actively participate in the analysis and decision-making process.

4. Simplifying Stakeholder Communication

The last data visualization function is to facilitate communication among corporate stakeholders. 

Visualizing data may offer a thorough knowledge of the company's performance by displaying key information depending on the relevant factors.

Without visualization of data, providing information in raw form can be difficult to grasp, particularly for business executives. 

As a result, visualization of information is essential for describing information in a way that is understandable to everyone concerned.

Data Visualization Types

There are several categories of how the visualization of data occurs. You may use the following data visualization types:

1. Charts

A chart is one of the simplest data visualization types. It can be represented as a diagram, map, graph, or table. 

Depending on the features of the data being shown, each form of chart has a unique set of applications and benefits. The following chart kinds can be selected based on the data requirements:

• Column charts: These are helpful when monitoring changes in data over time, observing trends, and quickly comparing figures in various categories.
• Pie charts: are an example of the visualization of data where sections of a whole or proportions are shown, such as in the case of constant statistics displayed in several categories that make a graph's sections.
• Bar charts: A two-axis data comparison tool. The way each category is shown involves using a bar or line whose height corresponds to the category's value in the data.

2. Graphs 

In addition to charts, there is another sort of data visualization type known as graphs. Graphs are often drawn with two axes at right angles, with the horizontal and vertical axes indicating separate variables. 

Here are the sorts of graphs that can be chosen depending on data requirements:

• Line graphs: can be utilized to illustrate trends, developments, or changes across time. This sort of visualizing data is extremely helpful for measuring or observing a condition.
• Polar Graph: A useful method of displaying data when the values differ from one another. This sort of representation can help show huge differences in values more clearly.

3. Table 

Tables are one of the most popular methods of data display. Tables are thought to be efficient for showing qualitative data in an ordered manner while also illustrating the links between each item of data.

Tables may explain information straightforwardly and understandably by using columns as the Y-axis and rows as the X-axis.

4. Geospatial 

Geospatial data is data that is presented in the form of a map to represent geographic information. 

Generally, this data makes use of colors, shapes, and symbols to demonstrate the differences and links between various types of data. Examples include rivers, mountains, highways, and other geographical characteristics.

5. Infographic 

Infographics are the visualizations of data that use visual components like diagrams and charts. Infographics allow you to present useful content compactly and simply. Infographics may also help to communicate difficult topics understandably.

6. Dashboard

Dashboard is one of the data visualization types that you may implement in a business presentation. The type of data provided graphically in this dashboard depends on the analysis goals and requirements to assist you in making better decisions.

How to Create Visualization of Data

Creating visualization data is a multi-step process that ensures the end product provides a straightforward and in-depth comprehension of the data provided. Here are the steps to follow:

• Determine an objective: The first step is to establish a goal for showing the facts. This goal will direct the process of developing your visualizing data more precisely. The visualization of data is used as a data analysis tool, helps data exploration, or simply presents information.
• Figure out the purpose of the data presentation: After establishing the goal, the next step is deciding on the audience for the data display. The intended audience here refers to the people who will view the visualizing data.
• Find and process data: This is the longest stage since it involves researching the required information, arranging it, and filtering or cleaning it out of noise or mistakes.
• Choose the type of data presentation: At this point, you can choose from the several data visualization types that have been discussed earlier.
• Create a visualization data design: The last step in visualizing data is to create a design based on the goal and presentation type to boost the accuracy of the data through visuals. You may also use specific software for the visualization of data and presentation.

Data Visualization Softwares

Here are some applications or software that could assist you generate engaging and useful visualization of data. These tools can help you turn complicated data into something easier to understand.

• Tableau.
• Google Chart Tools.
• QlikView.
• Microsoft Power BI.
• Sisense.
• Microsoft Excel.
• Chartio.
• Hubspot.
• Databox.
• Datawrapper.
• RAW.
• Visual.ly. 

This concludes the comprehensive explanation of data visualization in business analysis. The visualization of data is a strategy for breaking down complicated data into useful information to boost company performance.

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