7 Reasons Why Data Visualization Is Important

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Data is all around us!

Because it is being generated at an astonishing rate, its volume is only expected to continue to grow in the years to come.

The challenge for businesses is being able to make sense of all this data and turn it into actionable insights.

This is where data visualization comes in.

By creating data visualizations, data can be made more understandable and easier to interpret.

This can help you find trends and patterns that would be otherwise difficult to identify.

In this blog post, we will discuss the seven reasons why data visualization is so important!

Read on for more information:

What is Data Visualization?

Data visualization is the process of transforming raw data into a graphical representation, such as charts and graphs. It allows easy identification of relationships between various data points and makes sense of large and complex datasets more quickly.

Visualization methods can vary, but most involve representing wrangled data in a graphical format on a pie chart, line chart, bar chart, etc.

Now that you know what it is, is data visualization important?

What is the Importance of Data Visualization?

1. Enhances data understanding

Data visualization provides a visual representation of data, making it easier for users to interpret and understand.

This helps them better comprehend the data, identify trends or patterns quickly, and draw meaningful conclusions.

Although not many are educated well in developing data visualizations, many are able to appreciate easy-to-understand data visualization charts.

2. Improves communication between team members and stakeholders

Data visualizations help to communicate complex ideas and data in an easier format.

By using visuals, stakeholders can better understand the data which helps them make decisions based on facts rather than assumptions.

This improves collaboration between teams as everyone has access to the same information at the same time.

Data visualizations that track key performance indicators help other members of the data team and even business leaders identify patterns in the raw data.

This helps to centralize discussions around a data product: a data visualization graph. Data scientists, data analysts, and business leaders can then more easily work together to understand complex data.

3. Facilitates better decision making

Data visualizations can provide better insights into the data, which helps decision-makers make informed decisions.

These graphical representations of data allow business leaders to quickly identify key trends and patterns that are otherwise difficult to find in raw numbers.

As a picture speaks a thousand words, an obvious trend can communicate data findings more clearly than just simply text read off from a presentation slide.

4. Quickly exposes hidden relationships in data

Data visualizations can easily draw out the relationships between different data points, which might otherwise be unseen to the naked eye.

Of course, this will require more knowledge of data visualization tools and data visualization techniques to perform relatively hefty data analysis work, but the result brings valuable insights.

By putting all the data together in one place and analyzing it, key correlations can be quickly identified. This helps businesses discover hidden opportunities that may not have been seen before.

5. Provides an interactive platform for the data exploration

Data visualizations offer an interactive platform for exploring data.

This allows users to drill down into the data and explore different things about it such as patterns, trends, and outliers.

Users can also interact with the visualization by changing parameters or zooming in and out of various parts of the graph.

This helps them gain a more comprehensive understanding of the data and draw meaningful conclusions.

With effective data visualization tools and libraries like plotly, Shiny, Tableau dashboards, and other interactive charts software, stakeholders will find it a much more user-friendly and efficient experience of understanding data trends in big data.

6. Enhances efficiency in reporting

Data visualizations make it easier to tell stories with data, making them a great tool for efficient reporting.

Rather than presenting raw numbers that can be difficult to understand at times, visualized data makes things much simpler by providing a concise way to present and communicate data findings.

This also helps to save time when compared to traditional methods of gathering and analyzing data, making it quicker for businesses to take action on the insights that are found.

By utilizing visuals, stakeholders can quickly spot key trends or patterns that would otherwise be difficult to identify in a spreadsheet.

7. Enhances overall understanding of complex datasets

Data visualizations can also help to enhance the overall understanding of complex datasets.

By presenting data in an orderly way, stakeholders can compare different sets of data more effectively, identify patterns, and draw meaningful conclusions from them.

This helps individuals gain a better appreciation of the data that may have otherwise been difficult to comprehend without a visualization.

For example in the field of bioinformatics, genomic data is visualized in order to understand genetic patterns and relationships between genes. The complexity of these data sets is not easily understood without visual representations of their relationships.

Other complex datasets such as customer behavior or financial transactions can be explored using data visualizations, allowing stakeholders to draw meaningful conclusions quickly.

What are Data Visualization Tools?

Data visualization tools are software applications used to create data visualizations for the purpose of conveying information.

These tools allow users to easily manipulate and visualize data, making it easier to gain insights from large datasets. Common examples of these tools include Tableau, Qlikview, Microsoft Power BI, Google Sheets, Chartio, Python libraries, R libraries, and Highcharts.

These tools provide a range of features, including the ability to create charts, graphs, and other visuals that can be used to effectively communicate data in a meaningful way.

In addition to this, these tools also allow users to filter their datasets and explore different aspects of the data more thoroughly.

By using data visualization tools, stakeholders can quickly and easily gain insights from their datasets to inform better decision-making.

Final Thoughts

Data visualizations are a powerful tool for businesses to explore data in an effective and efficient way to better understand their data and gain valuable insights.

By presenting data in an interactive platform, visually-appealing way, companies are able to quickly identify patterns, correlations, and trends that would otherwise be difficult to spot.

This helps them make informed decisions more quickly, enhance reporting efficiency, and get a more comprehensive understanding of their data.

Data visualization is an essential part of any business, and with the right tools and techniques, organizations can unlock the potential of big data and draw meaningful insights from it.

So make full use of data visualization tools, techniques, and software to enhance your data team today!

Thanks for reading and all the best in implementing data visualization techniques in your data team!

Justin Chia

Justin is the author of Justjooz and is a data analyst and AI expert. He is also a Nanyang Technological University (NTU) alumni, majoring in Biological Sciences.

He regularly posts AI and analytics content on LinkedIn, and writes a weekly newsletter, The Juicer, on AI, analytics, tech, and personal development.

To unwind, Justin enjoys gaming and reading.

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