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Writer's pictureSondra Hoffman
May 4, 20236 min read

The Magic of Visualizing Your Business Data

Updated: Feb 29, 2024


A small business owner stands confidently in front of a digital screen displaying colorful charts and graphs. Magical beams of light emanate from the screen, converging into a crystal ball in their hands, symbolizing gaining insights from data visualization. The room is dimly lit by the glow of the digital data, creating an atmosphere of mystery and potential.
Unlocking the Potential Within: How Data Visualization Guides Small Business Success. 🌟 Dive into the magic of turning numbers into actionable insights. Image created by DALL·E, a version of OpenAI's ChatGPT specialized in generating custom images.

INTRODUCTION

When visualizing business data, it's important to remember that less is often more (Eckerson, 2011). So, focus on the key metrics that matter and avoid getting bogged down in unnecessary details. Experimenting with charts and graphs to see what works best for your data set can also be helpful (Tableau, n.d.1). And finally, don't forget to share your insights with others on your team – collaboration and communication are vital to maximizing your data! Watch the story of your business magically unfold with these tips.


SUCCINCT DETAILS

Excessive Information is Overwhelming

Including too much information can overwhelm the audience and make it difficult to discern the key insights. Instead, focus on the key metrics that matter and leave out unnecessary details. Data visualization will help your audience better understand and remember the information presented (Tableau, n.d.1).


Relaying the Big Picture in Finance

A graphic with key performance indices (KPI) for finance. Includes total accrued sales 9.91 million, accrued profit margin 1.83 million, total cash sales 10.76 million, cash profit margin 1.98 million.
Key Performance Indices (KPI) Created by Sondra Hoffman

When visualizing business data, keeping the big picture in mind is essential. What is the overall goal or objective of your business? How do the metrics you are tracking contribute to that goal? By keeping the big picture in mind, you can ensure that your visualizations are focused and relevant to your business objectives (Wexler, Shaffer, & Cotgreave, 2017). This will also help you choose the most relevant metrics to track and visualize, rather than getting lost in a sea of data (Google Looker Studio, n.d.)


For example, a finance department's main objective is to track and analyze key performance indicators such as sales value, cost of goods sold, sales margin, and profit. These metrics are critical in determining the overall financial well-being of the organization and aid in making crucial business decisions (Microsoft Power BI, n.d.). By closely monitoring these factors, the finance department ensures that the company remains profitable and sustainable (Eckerson, 2011).


Relaying the Big Picture in Marketing

A map visualization for sales value by state ID. It is compiled using longitude and latitude coordinates or GIS location information.
Map Visualization for Sales Value by State Created by Sondra Hoffman

For a marketing department, the big picture may be centered around brand awareness and customer engagement. Metrics such as website traffic, social media engagement, and email click-through rates can help track progress toward these goals. By visualizing these metrics, the marketing team can identify successful campaigns and areas for improvement (Google Looker Studio, n.d.).


Relaying the Big Picture in Purchasing

The purchasing department needs access to crucial information regarding inventory turnover rate, average lead times, and total inventory value. These metrics help the purchasing team make informed decisions about inventory levels, supplier relationships, and pricing strategies (Eckerson, 2011). By visualizing this data, the team can identify areas for improvement and make data-driven decisions to optimize inventory management (Tableau, n.d.2).


Choose the Right Metrics for Your Business Data

When selecting metrics to visualize, choosing the ones that align with your business goals and objectives is essential (Eckerson, 2011). For example, suppose your goal is to increase customer satisfaction. In that case, you should track customer retention rate, lifetime value, and net promoter score metrics. These metrics will help you better understand how well you meet your goals and highlight improvement areas (Hoffman, 2020).


It is also important to choose metrics that are easily measurable to your business. If a metric is difficult to track or does not directly impact your business goals, it may not be worth visualizing (Eckerson, 2011). The relevance of a metric for your target audience is also important to consider. For example, a metric that is important to the finance department may not be as relevant to the marketing team. choose metrics that are meaningful and actionable for your intended audience (Eckerson, 2011).


Use Visual Aids to Tell a Story

Visual aids such as charts and graphs can help tell a story with your data. They can make complex information easier to understand and help identify patterns and trends (Tableau, n.d.1). For example, a line graph showing sales over time can help identify seasonal trends, or a bar graph comparing sales by region can highlight areas for improvement. Use visual aids to guide your audience through the data and draw their attention to the most critical insights (Wexler, Shaffer, & Cotgeave, 2017).


A graphic of a line graph. It visualizes trends over time for accrued sales by month. This example has a dashed trend line indicating sales are declining. Variability in sales is indicated by sharp rises and dips with the blue line. The x-axis is month, the y-axis is dollar value.
Time Series Line Graph for Accrued Sales by Month Created by Sondra Hoffman

There is no one-size-fits-all approach to visualizing data. Several data types may require distinct charts or graphs to convey the information effectively. Experiment with different options to see what works best for your data set (OpenAI, 2021). For example, a line graph may be more effective for showing trends over time, while a bar graph may be better for comparing various categories (Tableau, n.d.1).


Including charts and graphs can significantly enhance the quality of reports, depending on the intended audience and the nature of the information. To effectively communicate the desired message, it is essential to carefully consider the viewer's preferences when creating visual aids (Wexler, Shaffer, & Cotgreave, 2017).


Share Your Insights

Don't keep your insights to yourself – share them with others on your team (Eckerson, 2011)! By sharing your visualizations and discussing the data, you can gain valuable feedback and insights from others (Tableau, n.d.1). Team contributions can lead to a better understanding of the data and potential improvements in decision-making (Wexler, Shaffer, & Cotgreave, 2017). It also promotes a culture of data-driven decision-making within the organization.


Sharing your insights can also help identify areas for improvement in your visualizations. Suppose others need help understanding or interpreting the data. In that case, making changes will improve the value of the information. Working together can create more effective visualizations that benefit the entire team.


USE CREATIVITY

A simple two-dimensional bar graph representing sales by department. There are two departments, O&M and Construction. O&M's bar is green and reaches just below the 6 million dollar mark. Construction is red and reaches just above the 4 million dollar mark.
Bar Graph Representing Sales by Department Created by Sondra Hoffman

Feel free to get creative with your data visualization. Adding color, icons, or other design elements can make your charts and graphs more visually appealing and engaging. Remember that the intended viewers may vary; choosing appropriate color schemes and designs that are visually appealing and captivating to the audience becomes essential. Just be sure not to go overboard and distract from the data itself. The goal is to enhance understanding, not to create a work of art.


Using data visualization tools such as Tableau, Power BI, or Google Looker Studio can also help add creativity to your visualizations. These tools offer a variety of customizable templates and options to make your data stand out (Tableau, n.d.2; Microsoft Power BI, n.d.; Google Looker Studio, n.d.). Choose a tool that best fits your needs and budget.


COLLABORATE AND COMMUNICATE

A picture of two diverse colleagues collaborating on a laptop together.
Collaboration of Colleagues; Image Provided by Wix.com

Data visualization is not just about creating pretty charts and graphs – it's about communicating insights and driving action (Wexler, Shaffer, & Cotgreave, 2017). Collaborate with others on your team to discuss and interpret the data and use the visualizations to facilitate discussions and decision-making (Tableau, n.d.1). Collaboration will help ensure everyone is on the same page and working towards the same goals (Eckerson, 2011). By providing the correct information to the right people, a company can ensure smooth operations, better efficiency, and improved profitability (Wexler, Shaffer, & Cotgreave, 2017).


Effectively generating accurate business information requires a combination of reliable methodologies, innovative technology, and valuable insights from others (Eckerson, 2011). Therefore, gathering feedback from the target audience is crucial to enhance the precision and dependability of the data (Tableau, n.d.1). Furthermore, by incorporating this feedback, reports can be tailored to ensure that the information provided is relevant and highly beneficial (Wexler, Shaffer, & Cotgreave, 2017). A collaborative approach is essential in maximizing the actual value of the data, allowing businesses to make informed decisions and stay ahead of the competition (Eckerson, 2011).


CONCLUSION

Visualizing business data can be a powerful tool for understanding and improving your business. Remember to focus on the key metrics, experiment with different charts and graphs, use creativity, and collaborate and communicate with others on your team (Wexler, Shaffer, & Cotgreave, 2017). With these tips, you can unlock the magic of your business data and drive success.


ACKNOWLEDGEMENTS

Sondra Hoffman revised this blog post in collaboration with AI technology. The AI large language model developed by OpenAI, called ChatGPT, was used to generate ideas, generate an outline, and assist with graphics.


Any AI-generated text has been reviewed, edited, and approved by Sondra Hoffman, who takes full responsibility for the content of this publication.


ABOUT THE AUTHOR

Sondra Hoffman is a seasoned MIS professional with over ten years of experience in strategic planning, implementation, and optimization of MIS solutions. She is passionate about helping small businesses thrive through technology and data management. Connect with her on LinkedIn to learn more about her professional background.


CONTACT ME

Contact me today for a consultation on improving your existing information system. Cost-effective approaches are available to drive your business with data.




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