Data Visualization: Importance and Benefits

Data Visualization: Importance and Benefits

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Data Visualization: Importance and Benefits

Nowadays, companies across domains are willing to record user interactions with their products or services to identify trends, patterns, anything to gain insight into their target market and make appropriate business decisions that will propel them toward success and improve their overall performance. In business intelligence, exploring this invaluable user interaction data takes the form of data visualization. Data visualization means presenting raw data through graphical representations that allow viewers—business analysts and executives—to explore the data and uncover deep insights. This visual format enables one to make quick and effective decisions since it is much easier for people to comprehend information through visuals rather than the raw reports.

When you visualize data, it is necessary to determine what you are planning to communicate and choose the right visuals (widgets) that will get your message across in a simple manner. Using visualization, you can identify the areas of your business that require attention and improvement. In this blog, we will explore the following points:

What makes data visualization more powerful and useful?

Comparing numbers presented in a flat table to find the top value is extremely difficult and takes a long time. This is where visualizing your data through graphical representation can make your life easier. If you plot the data pictorially using widgets, finding the top value from a year’s worth of data is possible in a few seconds, maybe even a fraction of a second. Now, imagine the same comparison but with 10 years of data. Here, data visualization plays a vital role for the decision makers in exploring the data effectively and quickly understanding it through widgets.

The importance of data visualization

Humans more easily grasp information through visualization. In a business context, visualization helps convey a story to decision makers, allowing them to act more quickly than if the data were presented as reports. Widgets allow decision makers to interact with the data and discover the questions they should be asking to lead them to greater insights. The following are some use cases that stress the importance of data visualization:

  • Helping decision makers understand how the business data is being interpreted to determine business decisions.
  • Leading the target audience to focus on business insights to discover areas that require attention.
  • Handling large amounts of data in a pictorial format to provide a summary of unseen patterns in the data, revealing insights and the story behind the data to establish a business goal.
  • Visualizing business data to manage growth and converting trends into business strategies by making sense of your information.
  • Revealing previously unnoticed key points about the data sources to help decision makers compose data analysis reports.

The benefits of data visualization

When considering business strategies and goals, data visualization benefits decision makers in several ways to improve data insights. Let’s explore seven major benefits in detail:

Better analysis

Data visualization helps business stakeholders analyze reports regarding sales, marketing strategies, and product interest. Based on the analysis, they can focus on the areas that require attention to increase profits, which in turn makes the business more productive.

Quick action

As mentioned previously, the human brain grasps visuals more easily than table reports. Data visualizations allow decision makers to be notified quickly of new data insights and take necessary actions for business growth.

Identifying patterns

Large amounts of complicated data can provide many opportunities for insights when we visualize them. Visualization allows business users to recognize relationships between the data, providing greater meaning to it. Exploring these patterns helps users focus on specific areas that require attention in the data, so that they can identify the significance of those areas to drive their business forward.

Finding errors

Visualizing your data helps quickly identify any errors in the data. If the data tends to suggest the wrong actions, visualizations help identify erroneous data sooner so that it can be removed from analysis.

Understanding the story

Storytelling is the purpose of your dashboard. By designing your visuals in a meaningful way, you help the target audience grasp the story in a single glance. Always be sure to convey the story in the simplest way, without excessive complicated visuals.

Exploring business insights

In the current competitive business environment, finding data correlations using visual representations is key to identifying business insights. Exploring these insights is important for business users or executives to set the right path to achieving the business’ goals.

Using data visualization, you can discover the latest trends in your business to provide quality products and identify problems before they arise. Staying on top of trends, you can put more effort into increasing profits for your business.

How data visualization works

Data visualization involves handling tons of data that will be converted into meaningful visuals using widgets. To achieve this, we require the best software tools to operate various types of data sources such as files, web API data, database-maintained sources, and others. Organizations should choose the best data visualization tool to meet all their requirements. At a minimum, the tool should support interactive visual creation, flexible connectivity to data sources, combining data sources, automatic refresh of data, sharing visuals with others, secured access to data sources, and exporting widgets. These features allow you to make the best visuals of your data and also save your business time.

10 quick tips for effective data visualization

Here are 10 tips to make your data visualizations the best:

  • Display the relevant facts.
  • Keep the widgets simple.
  • Hide unwanted details in your visuals.
  • Use less data by using filters.
  • Provide focus to your widgets with pleasant colors.
  • Categorize large data with drill-down behavior.
  • Auto-refresh your visuals to show the most recent data.
  • Capture decision makers’ interest and create dashboards accordingly.
  • Choose the widgets that best convey the story in the data.
  • Don’t show too much information in your visuals.


In this blog, we have explored data visualization in detail, its importance and benefits, and quick tips for an effective data visualization. Get started with Bold BI by signing up for a free 15-day trial and create more interactive business intelligence dashboards. If you have any questions on this blog, please feel free to post them in the following comment section. You can also contact us by submitting your questions through the Bold BI website or, if you already have an account, you can log in to submit your support question.

We also suggest you have a look at our blog posts on interpreting data visualizations to help you find the best way to get started with data visualization immediately:

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