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We live in the digital era, where everything is made out 0s and 1s and almost everything is just data. Everyday technology advances more and more, and that’s why people need to keep progressing and have a better understanding of data. Understanding data from a text is the most common case today for sure, but there’s another concept that has taken the big industries by storm in recent years: placing data in a visual context.
In today’s article, we’ll talk about data visualization. What is it exactly and what kind of impact does it have on the big industries of the modern world?
What is Data Visualization?
Data visualization is a concept that allows data to be communicated through visual means. For a good number of years, people have used methods such as bar charts and graphs, in order to have a better understanding of data. But as technology evolved, the limits started to fade away, and today, we are able to visualize data through animation and much more advanced technologies. Think about it this way: people are much more likely to understand sets of data in depth, if they visualize it through 3D animations, dynamic images and user interaction functionalities.
Just as you would expect, the data visualization concept has a great impact on different industries of the modern world. The technology has been around for a few years now, and we have come to a point in time where organizations completely accept the benefits that a good understanding of data could bring for their business.
Even though the advantages are numerous, let’s list three of the main ways data visualization can impact your business:
- Offers customer insights. Understanding the behavior of your customers has become a critical aspect in today’s business world. Data visualization is the key to obtaining target segmentation and getting valuable insights on your customers’ behaviour.
- Increases revenue and reduces costs. Almost 40% of the companies in the world use big data and data visualization. These companies are able to report an average of 8% increase in their revenues and even a 10% reduction of their costs.
- Comprehension of data. In today’s world we deal with huge sets of data, and, as you would imagine, it’s a very tough job to go through all of them and actually obtain something valuable. This is where data visualization becomes critical and helps you go through that data efficiently, providing you with outcomes that prove valuable in decision making.
As we mentioned above, data visualization has positively impacted most of the modern world industries out there. Here are just a few examples:
- The oil and gas industry. With data visualization in this industry, it is easy to optimize production and to translate information into valuable insights. The most important aspect of data visualization capabilities when it comes to the oil and gas industry, is that it can offer immediate access to data processing. Platforms such as FutureOn are the key to offering great customer service and insights into predictive behavior.
- Healthcare. This is where data visualization becomes somehow vital, as it is able to offer information such as: which medication you can use or which purchase to make. By using this technology, hospitals all around the world are able to gain valuable, quick insights in their always-changing environments.
- Retail industry. When it comes to this industry, there’s one thing on everyone’s mind: online shopping. Data visualization is now present at every stage of the retail process, this proving how important the concept has become in this industry. The ways this technology improves retail are countless, but here are just a few of them:
- Pricing optimization.
- Identify customers that are likely to buy a certain product.
- Forecasting where is the biggest demand for a certain product.
- Predicting trends.
- Figure out what to sell next to a customer.
The best way to summarize everything mentioned above is by using an old saying: “A picture is worth a thousand words”. The amount of data that we have to ingest every day is enormous, and data visualization is the perfect solution that helps us keep up with everything going on in the world today. The technology is very versatile, as it can improve business management for company owners and user experience, both at the same time.
Ryan Yarbrough is a small business consultant, speaker, and the manager at Davis Financial Services, a small business consulting firm.