Importance of data visualization

In this blog, we will discuss about how important data visualization is. It gives the appropriate insight which helps to take business decision.  Let discuss why and how it is important.

What is Data Visualization?

According to wikipedia, data visualization is the graphical representation of data.

It means translating the raw data into meaningful insight which can be easily interpret by human brain. 

Why Data Visualization is Important?

In today’s world, we have millions and billions GB of data. With so much data, it is becoming difficult to manage and make sense out of it. It also helps to detect trend, pattern or outlier in the data. Below are some important benefits of Data Visualization: 


Better Insight: Data visualization can provide insights which descriptive Statistics cannot. It helps stakeholders to analyze trends and patterns in the data and focus on those area collectively  which needs more attention.                

Faster Decision: As I mentioned earlier, human brain is able to grasp pictorial presentation more than table summary. Companies who can gather and quickly act on their data will be more competitive in the marketplace because they can make informed decisions sooner than the competition. Speed is key, and data visualization aides in the understanding of vast quantities of data by applying visual representations to the data.

Identify Patterns: Through data visualization, one can comfortably find out the pattern of the processed data. Exploring these patterns can help users to focus on specific areas so that they can drive their business in right direction.  


Let suppose you are a retailer and you want to compare the sales of Shirt and Trouser over the course of last year. There are more ways to do that and table is one of them: Here what this would look like: 

example data set

The above table has done an excellent job to show the data precisely but it is becoming difficult to see any trend through the table. Hence, below is the graphical representation of the of above summary: 

From the visualization, it becomes immediately obvious that sales of Hot Beverage is at peak in Jan and at low in May due to seasonal sales. On other hand, sales of Cold Beverage is at low in Jan but at peak in June due to summer season. Imagine trying to make sense of a table with thousands of data points and then we have to pull out insights like this, hence graphical representation is much more intuitive to see trends and patterns. 

Data Visualization Tool

Above Visualization, I have done on Excel but there are very popular tools in the market on which considerable excellent visualization can be made :

  1. Tableau
  2. Excel
  3. PowerBI

So far, we understood the importance of data visualization and how it can be help to make business grow and gain profits. Hope you like reading the importance of Data visualization. In my coming blogs, I will throw some light on how to interpret results. 

I recommend you to check this post to view more types of visualizations with a real dataset analysis.

Keep reading and learning!

2 Responses

  1. May 18, 2020

    […] You can read more about data visualization and importance here. […]

  2. June 24, 2020

    […] After performing deep analysis, one must know how to present it. It gives the appropriate insight which helps to make business decisions. To read in detail, you can check here. […]

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