Data Visualization: Why It’s So Important and How to Get Started

Data is everything for businesses in this day and age. Business leaders rely on data to measure profitability, guide teams, improve processes, interact with stakeholders, and make informed business decisions. But data isn’t useful in its “raw” state – it tends to be generated in large quantities by every business process and requires significant analysis before it’s ready for use. Data visualization makes it easy for business leaders to understand data and thereby act upon it. 

This guide covers the ins and outs of data visualization in a business context. We also offer some suggestions on how your small business can get started with data visualization.

Data is key to informed decision-making 

Data visualization is important because data is important. In the information era, quality data enables informed, guided decision-making. Below are some examples:  

• Customer behavior: You can learn more about customers, including preferences, history, pain points, and purchase patterns. This information can help you better interact with or serve your customers 

• Operations: Measuring key performance indicators (KPIs) for every department, from marketing to IT, can help you troubleshoot problems and improve processes. Oracle NetSuite lists operational metrics most companies track. 

• Risk mitigation: Data can help you define risks and challenges your business might be facing. You can better navigate risks and mitigate them. 

• Marketing: With solid data on your customers, your competition, and marketing conditions, you can create personalized marketing campaigns that make a bigger splash. 

What is data visualization? 

Data visualization is a way to represent data through visual means like charts or graphics. Visually representing data makes it easier for people to grasp. The human brain instantly understands visuals; words and numbers are much harder to process. Visualizing data organizes it, helps pinpoint relationships between data members, and can help you (and your stakeholders) derive key insights in an intuitive way. 

The business case for data visualization 

For the average stakeholder (an employee, customer, investor, or similar), data might as well be rocket science. Understanding data in an unprocessed or non-visually organized state requires an advanced understanding of data analytics that most people lack. 

By putting the information in a visual format, you can quickly and conveniently convey insights even to a layman. Internally, this helps you and your teams make better decisions. Externally, it can help customers and investors understand you (and your goals) better. It can result in many tangible and intangible gains.

What can you do with data visualization? 

Data visualization has several practical uses in a business setting. The HBR explains four in detail: idea generation, idea illustration, visual discovery, and data visualization. You can use visualization to brainstorm ideas, communicate brainstormed ideas, pinpoint patterns, and organize data. The ultimate aim is to enable informed decision-making. 

You can use digital tools for easy data visualization 

You don’t need to be a graphic designer, illustrator, or data scientist to visualize data. There are several specialized data visualization apps out there that can help you gather, analyze, and visually represent data. Furthermore, most of the apps you already use likely have data visualization features built-in. Some examples are Microsoft Word and Google Sheets. 

Use PDFs to conveniently share your data visualization findings 

PDFs are generally the best format for sharing your data visualization graphics (and related findings). PDFs are easy to view, print, and share across different platforms. They also maintain the original formatting and layout. You can rotate PDF pages to portrait or landscape mode for better representation using a PDF rotator. Utilize this tool to rotate a PDF online – upload the file, rotate pages, and download and share your PDF. 

Data visualization could help you make sense of all your data, be more understandable to stakeholders, and make more accurate business decisions. Ultimately, data visualization will help you fatten up your bottom line. You can get started with data visualization tools without burning a hole in your pocket. Eventually, once your business grows enough, you can look into building up a full-fledged data analytics team.