What Are the Benefits of Data Visualization?

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Short attention spans are killing productivity and affecting current and future business decisions. So, how can you spot it?

Data visualization can help. Since TARGIT's inception, we have had the pleasure of helping our customers improve their data visualization, which has been vital in helping organizations be more successful.

What Is the Goldfish Effect?

The goldfish effect is used to describe people's short attention spans. Goldfish are said to have an attention span longer than human beings. That's right, folks, we have shorter attention spans than a goldfish. So think about how this translates to the business world, where you need to concentrate and focus on tons of information to gain insight to make the best possible decision.

So now we know we only have a few seconds to digest tons of information — which is key to gaining business insight. It's crucial to view the information in the best possible way.

Today, though, we still rely on information in the form of tables and crosstabs to analyze our data. When we onboard new customers, we see that 90% of the time, they gravitate toward tables and crosstabs when building and presenting analytics.

But this reporting practice makes the decision process just harder because it adds more work that leads to the commonly known "Spreadsheet Syndrome:"

Problem
Solution: Spreadsheet
Another problem
Solution: Bigger Spreadsheet
Go back to #1

Don't worry; the cure is within reach!

Visualization has been helping humans identify trends and patterns since primitive times. Modern-day data visualizations have the same guiding power.

They turn detailed datasets into compelling graphics that clearly illustrate trends, patterns, and other key insights hidden within company data.

BP#2 - What Are the Benefits of Data Visualization_

The Benefits of Data Visualization

Creating compelling data visualizations allows you to understand the key takeaways behind your data much quicker than staring at never-ending columns and rows; plus, it makes it easier to take decisive action to correct errors, pursue opportunities, and get ahead of trends.

Here are just a few of the benefits of data visualization:

- Improve Clarity and Understanding
  Data visualization simplifies complex data sets, making it easier for employees of various backgrounds and technical skill levels, from stakeholders to frontline workers, to understand trends, patterns, and insights. Visual representations provide a clear and concise way to communicate information, which improves collaboration, paves the way for new ideas, and ultimately leads to more informed decision-making.
- Enhance Storytelling and Engagement
  Data visualizations can tell engaging stories by combining data with narratives. Whether presenting to investors, clients, or internal teams, visualizations enhance storytelling and persuasion, making data more engaging and memorable.
- Identify Trends and Patterns
  By visualizing data in graphs, charts, maps, and more, businesses can quickly identify trends, patterns, and correlations that may not be apparent in raw data. Visualizations help organizations spot opportunities, anticipate market changes, and make predictions based on the latest data available.
- Simplify Communication
  Visualizations are powerful tools that transcend language barriers and technical jargon. They allow teams to communicate insights effectively, fostering collaboration and alignment throughout multiple departments, between stakeholders, and even across geographies.
- Monitor Daily Numbers
  With interactive dashboards and data visualization tools, businesses can track key metrics and performance indicators daily or even hourly. This agility enables proactive decision-making and helps employees respond swiftly to changing business and market conditions.
- Spot Anomalies and Errors
  Visualizations highlight anomalies, outliers, and data inconsistencies so users can identify errors and take corrective action promptly. Graphs, charts, and scatter plots make it easy for users to see everything from minor inconsistencies in daily performance to financial anomalies that may impact revenue if left unchecked.