What is data visualization: The practical guide for SME business owners?

Data visualization is going to be the future of data analysis. Starting from small businesses to large organizations – none will be able to do without it. The reason being - if a business doesn’t analyze the massive amount of data being churned, it won't be able to survive in the market. This article has shared all that an SME needs to know before venturing into data visualization. So let's start with what is data visualization and its importance.

What is data visualization?

Data visualization is the process of presenting data through visuals like maps, graphs, and charts. Thus, it helps you understand your business’s trend, market patterns and find out the outliers.

Why is data visualization important?

Some primary advantages and benefits of using data visualization are:

• Through visuals and infographics, DataViz provides information very clearly. Thus, helping business leaders construe and make informed decisions more rapidly. It also helps in grabbing stakeholder's attention for a longer span.
• Analysis present through interactive visuals helps in encapsulating intricate information. Thus, making complex data easy to read.
• It helps in drawing a correlation between different market factors and business functions. So, leaders can take holistic business decisions.
• The web is full of customer information. All you need to do is collect them. And analyze them correctly to connect with your customers.
• Using DataViz to monitor KPIs (Key Performing Indicators), you can promptly understand market trends and spot shifts. In turn, it'll also help you to make quick, informed decisions.

The future of data visualization

Data visualization in sync with AI and Machine learning is slowly transforming the way leaders make business decisions. Under the current scenario, when digitalization is crucial for a business’s survival, DataViz has a promising future. So, implementing it in your business is sure to benefit you significantly.

How data visualization helps business

Now that we know what is data visualization and its importance let us check out how it helps businesses.

• A business study by Wharton School of Business found that using DataViz in business meetings can shorten them by 24%.
• Managers who use BI dashboards have an 86% chance of finding the information more timely, i.e., 28% more likely than their colleagues using traditional reports and dashboards.
• A BI tool with data visualization competencies offers a Return on Investment of USD 13.01 on each dollar spent.
• Improves employee efficiency because when people get instructions with illustrations, they follow it 323% better than when instruction is in text only.

Top data visualization tools/software, best practices, and poor examples

Top four data visualization tools/software

Microsoft Power BI

Using Power BI, you can connect to a wide range of data sources to gather information and analyze your data. You can access real-time dashboards from anywhere. Furthermore, using Natural language processing, you can get explore data using standard texts. Very suitable for SMEs.

Pricing: 9.99$ per user, per month.

Tableau

Tableau is more suitable for large organizations with massive databases and a sufficient budget for BI. It also works on the drag-and-drop feature. Thus, making it ideal for non-tech users.

Pricing: Starts at 35$ per user per month.

Google Data Studio

Since Google Data Studio is free, it's ideal for small businesses with minimum funds for BI. It's a web-based tool using which you can prepare your dashboards with ease. Moreover, sharing these dashboards is as smooth as sharing Google Docs.

Looker

Looker is a perfect BI tool for large organizations dealing with Big Data. It also works on drag-and-drop features and has a browser-based interface.

Pricing: Looker’s pricing depends on various factors like business’s size, number of users, etc. So, you can contact them to get tailored pricing.

Data visualization best practices

• Understand your target audience. So, your dashboards will be syn with their culture and requirement.
• Have a thorough knowledge of your data.
• Maintain the data-ink ratio.
• Keep consistency throughout your reports.
• Stick to the standard reporting and presentation principles.
• Make dashboards simple and easy to understand.
• Keep dashboards minimalistic.

Poor data visualization examples

• Not using standard y-axis
• Using irrelevant graphs
• Not using titles, and labels
• Giving too much color, images, and lengthy texts
• Putting too much information in a visual or a page

After knowing what is data visualization, its uses, the best tools, etc., it's now time to make decisions. Let us help you through it.

Working with a data visualization company

While non-tech users can also use the modern BI tools for data analysis, these tools have high-end analytics features. So, to use them optimally for your business, it’s best to partner with a BI consultancy firm.

Benefits of working with a data visualization consultant

• They have relevant experience and expertise. Thus, it can give a better insight into your data.
• Instead of hiring a team, when you work with a consultancy firm, it helps in building the competency gap.
• Good data visualization firms have data analysts who know high-end statistical analysis.

To Conclude

Starting from what is data visualization to how to select a BI consultancy firm, we have shared all the necessary detail that an SME might need to start working on a BI tool.

But should SMEs opt for data visualization?

Yes, if you want to enjoy a competitive edge, you must invest in data visualization from the initial days of your business. Start with the free versions and upgrade yourself as your business grows.