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Data Visualization

Data visualization is the practice of representing information visually to enhance understanding and insight extraction from large data sets. It plays a crucial role in various professional fields, aiding decision-making and communication by making complex data accessible and interpretable. While it offers numerous benefits such as actionable insights and compelling storytelling, challenges like complexity, misinterpretation, and data privacy must also be considered.
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0% found this document useful (0 votes)
2 views

Data Visualization

Data visualization is the practice of representing information visually to enhance understanding and insight extraction from large data sets. It plays a crucial role in various professional fields, aiding decision-making and communication by making complex data accessible and interpretable. While it offers numerous benefits such as actionable insights and compelling storytelling, challenges like complexity, misinterpretation, and data privacy must also be considered.
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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DATA VISUALIZATION

Data visualization is the practice of translating information into a visual context,


such as a map or graph, to make data easier for the human brain to understand and
pull insights from. The main goal of data visualization is to make it easier to identify
patterns, trends and outliers in large data sets. The term is often used
interchangeably with information graphics, information visualization and statistical
graphics.

Data visualization is one of the steps of the data science process, which states that
after data has been collected, processed and modeled, it must be visualized for
conclusions to be made. Data visualization is also an element of the broader data
presentation architecture discipline, which aims to identify, locate, manipulate,
format and deliver data in the most efficient way possible.

Data visualization is important for almost every professional discipline. Teachers


use it to display student test results, computer scientists to explore advancements
in artificial intelligence (AI) and executives to share information with stakeholders.
It also plays an important role in big data projects. As businesses accumulated
massive collections of data, they needed a way to get an overview of their data
quickly and easily. Visualization tools were a natural fit to provide useful
information.

Visualization is central to advanced analytics for similar reasons. When a data


scientist is writing advanced predictive analytics or machine learning algorithms,
it's important to be able to visualize the outputs to monitor results and ensure that
the models are performing as intended. Visualizations of complex algorithms are
generally easier to interpret than numerical outputs.
Why is data visualization important?
Data visualization provides a quick and effective way to communicate information
in a universal manner using visual information. Business professionals have
different areas and levels of expertise, but visualizations are meant to be
understandable by anyone. Visualizations make it easier for employees in an
organization to make decisions and act based on insights derived from them.
Visualizations help businesses in many ways. Some examples include the following:
• They help isolate factors that affect customer behavior.
• They identify products or services that need to be improved.
• They make data more memorable for stakeholders.
• They help organizations understand when and where to place specific
products.
• They can predict sales or revenue volumes.
Benefits of data visualization
The benefits of data visualization include the following:
Actionable insights. A broad spectrum of an organization's personnel can
understand visuals presented in business intelligence dashboards. This lets users
absorb information quickly, get better insights and figure out the next steps faster.
Exploration of complex relationships. Visualization platforms with advanced
capabilities can display complex relationships among data points and metrics,
allowing an organization to make faster data-based decisions.
Compelling storytelling. Data dashboards that are visually compelling will maintain
the audience's interest with information they can understand.
Accessibility. Visualization tools make data more accessible and understandable,
so that laypersons or semi-technical users who aren't data scientists can interpret
and analyze it.
Interactivity. Interactive dashboards have the functionality to allow users to click
on various aspects of data displays to get more information. This is especially useful
for those with less expertise on the subject area covered by the data. Static displays
don't allow this.
Disadvantages of data visualization
While data visualization comes with many advantages, it can also pose several
challenges, including the following:
Complexity. A highly complicated visualization could appear cluttered or make it
difficult to glean valuable insights. More complexity also means users need training
on the tools being used or risk creating the wrong visual type for the data being
used.
Potential for misinterpretation. Users might have good intentions when using a
visualization platform, but they can draw incorrect conclusions from detailed
visualizations.
Data privacy and security. Users must consider the security and privacy of the data
being visualized. A platform might be susceptible to cyberattacks, thus
compromising the security of data being used, or a data set could be used that isn't
compliant with data privacy regulations.
Bias. Visualizations and the data they're based on should be scrutinized to ensure
they aren't intentionally or unintentionally biased. Failing to do so could
compromise the credibility of those analyses. For example, a data set that leaves
out key demographics within a population could lead to a biased visualization of
that data.
Data visualization and big data
The increased popularity of big data and data analysis projects has made
visualization more important than ever. Companies are increasingly using machine
learning to gather massive amounts of data that can be difficult and slow to sort
through, comprehend and explain. Visualization offers a way to speed up the
process and present information to stakeholders in ways they can understand.
Big data visualization often goes beyond the typical techniques used in normal
visualization, such as pie charts, histograms and graphs. Data visualization can
provide more complex representations, such as heat maps and fever charts.
This heatmap shows data on an organization's use of cloud resources.
While big data visualization projects have become increasingly useful in recent
years, there are disadvantages, including the following:
Human intervention. To get the most out of big data visualization tools, it might be
necessary to hire a visualization specialist. These experts can identify the best data
sets and visualization styles to help an organization make good use of its data.
IT resources. The visualization of big data requires powerful computer hardware,
efficient storage systems and might entail cloud migration of data. These additional
resources mean more IT involvement as well.
Data integrity and security. The insights provided by big data visualization will only
be as accurate as the information being processed. Large volumes of data typically
require people and processes in place to govern and control the data quality and
metadata. These people and processes must also ensure trusted data sources are
used and that the data remains secure.

Examples of data visualization


When computers were first applied to data visualization, one of the most common
visualization techniques was using a Microsoft Excel spreadsheet to transform the
information into a table, bar chart or pie chart. While these visualization methods
are still used, more intricate techniques are available, including infographics,
bubble clouds, bullet graphs, heat maps, fever charts and time series charts.
Other popular types of visualizations include the following:
Line charts. These charts are among the most basic and common techniques used.
Line charts display how variables can change over time.
Area charts. This visualization method is a variation of a line chart. It displays
multiple values in a time series -- or a sequence of data collected at consecutive,
equally spaced points in time.
Treemaps. This method shows hierarchical data in a nested format. The size of the
rectangles used for each category is proportional to the percentage of the whole
each represents. Treemaps are best used when multiple categories are present,
and the goal is to compare different parts of a whole.
Population pyramids. This technique uses a stacked bar graph to display the
complex social narrative of a population. It's best used when trying to display the
distribution of a population.
Scatter plots. This technique displays the relationship between two variables. A
scatter plot takes the form of an x- and y-axis with dots to represent data points.

Common data visualization use cases


Use cases for data visualization include the following:
Sales and marketing. Market and consumer research firm eMarketer estimated
$264 billion would be spent on U.S.-based digital advertising in 2023. That number
is expected to cross the $390 billion mark by 2027. Given the size of the investment
in advertising, marketing teams must pay close attention to their sources of web
traffic and how their web properties generate revenue. Data visualization helps to
illustrate how marketing efforts affect traffic trends over time.
Politics. A common use of data visualization in politics is a geographic map that
displays the candidates' states, counties or other geographic regions voted for.
Healthcare. Healthcare professionals frequently use choropleth maps to visualize
important health data. A choropleth map displays geographical areas or regions
that are assigned a certain color in relation to a numeric variable. Choropleth maps
allow professionals to see how a variable, such as the mortality rate of heart
disease, changes across specific geographic areas.
Scientists. Scientific visualization, sometimes referred to as SciVi, allows scientists
and researchers to gain greater insight from their experimental and other collected
data.
Finance. Finance professionals must track the performance of their investment
decisions when choosing to buy or sell an asset. Candlestick charts are used as tools
to help finance professionals analyze price movements over time, displaying
information such as securities, derivatives, currencies, stocks, bonds and
commodities. By analyzing how prices have changed over time, data analysts and
finance professionals can detect trends.
Logistics. Shipping companies use visualization tools to create a data-driven supply
chain and determine the most efficient shipping routes.
Data scientists and researchers. Data professionals typically build visualization for
their own use or to present the information to a select audience. They use
visualization libraries of the chosen programming languages and tools. Data
scientists and researchers frequently use open source programming languages --
such as Python -- or proprietary tools designed for complex data analysis. Data
scientists and researchers use visualizations to get a greater understanding of data
sets and to identify patterns or trends that might otherwise go unnoticed.
The science of data visualization
The science of data visualization is based on an understanding of how humans
gather and process information. Daniel Kahneman and Amos Tversky collaborated
on research that defined two different methods for gathering and processing
information.
The first method focuses on thought processing that is fast, automatic and
unconscious. This method is frequently used in day-to-day life and helps
accomplish tasks including the following:
Reading the text on a sign.
• Solving simple math problems, like 1+1.
• Identifying where a sound is coming from.
• Riding a bike.
• Determining the difference between colors.
The second focuses on slow, logical, calculating and infrequent thought processing,
as demonstrated by the following:
• Reciting a phone number.
• Solving complex math problems, like 132 x 154.
• Determining the difference in meaning between multiple signs standing side
by side.
• Understanding complex social cues.
Data visualization tools and vendors
Data visualization tools can be used in a variety of ways. The most common is a
business intelligence reporting tool. Users set up visualization tools to generate
automatic dashboards that track company performance across key performance
indicators and visually interpret the results.
The generated images also include interactive capabilities, enabling users to
manipulate them or look more closely into the data for in-depth analysis. Indicators
alert users when data has been updated or when predefined conditions occur.
A business might implement data visualization software to track its own initiatives.
For example, a marketing team might use such software to monitor the
performance of an email campaign, tracking business metrics, such as the open
rate, click-through rate and conversion rate.
As data visualization vendors extend the functionality of these tools, they're
increasingly being used as front ends for more sophisticated big data environments.
In such a setting, the tools help data engineers and scientists track data sources and
do basic exploratory analysis of data sets prior to or after more detailed advanced
analyses.
Forbes has compiled a list of some data visualization software vendors and tools
useful to small businesses. These include Domo, Kilpfolio, Looker, Microsoft Power
BI, Qlik Sense, Tableau and Zoho Analytics. While Microsoft Excel continues to be a
popular tool for data visualization, other tools have been created to provide users
with more sophisticated and far-reaching capabilities.

example of Choropleth Map

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