Data Visualization
1. Introduction to Data Visualization
Data Visualization is the practice of converting raw information (like text, numbers, or
symbols) into graphic or visual formats such as:
• Charts
• Graphs
• Maps
• Dashboards
The primary purpose of visualization is to:
• Reveal logical correlations in data
• Show patterns, trends, and anomalies
• Enable quick understanding of complex datasets
📌 "A picture is worth a thousand rows."
2. Importance of Data Visualization in Business Analytics
• Makes complex data easy to understand
• Helps in faster decision-making
• Allows for pattern recognition
• Facilitates communication across teams (technical & non-technical)
• Supports data-driven storytelling
3. Common Data Visualization Types
Visualization Type Use Case
Bar Chart Comparing categories (e.g., sales per region)
Pie Chart Showing proportions or percentages
Line Graph Trends over time (e.g., stock prices, sales growth)
Histogram Distribution of continuous variables
Scatter Plot Relationship between two numerical variables
Heat Map Density or intensity across a matrix or geography
Demographic Map Population, region-based analysis
Dashboard Combined view of KPIs and multiple charts for decision-making
🧠 Example: A retail company uses a dashboard showing sales by product, profit margins,
and inventory levels — all in one screen.
4. Visualization as the User Interface of Business Intelligence (BI)
Visualization is the front-end of the BI system — the interface users interact with to
interpret the data.
However, behind every chart is a series of backend data processes. Let’s understand the full
pipeline:
5. Data Visualization Pipeline in Business Analytics
✅ Step 1: Define Data Sources & Data Types
• Identify what data you need: e.g., sales data, website analytics, customer data.
• Decide on data types (text, numeric, timestamp, etc.)
• Define transformation rules and database structures.
✅ Step 2: Extract Data from Original Sources
• Data is collected from:
o ERP systems
o CRM tools
o SCM platforms
o Google Analytics
o Cloud storage
✅ Step 3: Data Staging and Transformation
• Data is transferred using API connections to a staging area.
• It undergoes:
o Cleaning (removing errors, missing values)
o Mapping (aligning fields from different systems)
o Standardization (same format, naming, units)
✅ Step 4: Load into Storage Systems
• Data is stored in a:
o Relational Database (like MySQL, PostgreSQL)
o or a Data Warehouse (like Amazon Redshift, Google BigQuery)
• Sometimes, base data language is converted (e.g., from JSON to SQL tables).
6. Tools Used for Data Visualization
Category Examples
Business Tools Tableau, Microsoft Power BI, QlikView
Programming Python (Matplotlib, Seaborn, Plotly), R (ggplot2)
Cloud Platforms Google Data Studio, AWS QuickSight
Custom Dashboards Built with JavaScript (D3.js), Flask, Dash
📊 Common Types of Data Visualizations
Data visualization is the graphical representation of data to uncover patterns, trends, and
relationships. Choosing the right chart helps communicate the correct message clearly and
efficiently.
1. Bar Chart
• Purpose: Compare values of different categories.
• Structure: Vertical or horizontal bars, representing quantity.
• Variants: Stacked bar chart, grouped bar chart, horizontal bar chart.
• Best Used For:
o Comparing monthly revenue, region-wise sales, product categories.
• Example: A bar chart comparing sales of five products over Q1.
2. Pie Chart
• Purpose: Show parts of a whole.
• Structure: Circular chart divided into slices.
• Best Used For:
o Displaying market share, budget allocation, preference percentages.
• Limitations: Not suitable for complex or large datasets.
• Example: Pie chart showing percentage of customer preferences for five ice cream
flavors.
3. Line Graph
• Purpose: Show trends over time.
• Structure: Points connected by lines on a time-based axis.
• Best Used For:
o Visualizing time-series data like revenue growth, stock prices, website traffic.
• Variants: Multiple lines for multiple datasets.
• Example: Line graph depicting monthly sales across payment methods.
4. Box Plot (Box-and-Whisker Plot)
• Purpose: Display distribution, central tendency, and variability.
• Structure: Box showing interquartile range (IQR), line at median, whiskers showing
min/max, dots for outliers.
• Best Used For:
o Identifying outliers, comparing distributions.
• Example: Box plot of exam scores in different departments.
5. Scatter Plot
• Purpose: Show relationship between two numerical variables.
• Structure: Dots placed along X and Y axes.
• Best Used For:
o Correlation analysis, clustering, regression visualization.
• Example: Scatter plot showing the relationship between advertising spend and sales.
6. Radar or Spider Chart
• Purpose: Compare multiple variables across different categories.
• Structure: Axes arranged in a radial fashion forming a web-like shape.
• Best Used For:
o Competitor analysis, skill assessments, performance scoring.
• Example: Comparing five job candidates on skills like communication, technical
knowledge, etc.
7. Dot Map (Density Map)
• Purpose: Show geographical distribution of values.
• Structure: Dots placed over a map to represent data points.
• Best Used For:
o Mapping customers, event occurrences, geographic spread.
• Example: Dot map of store locations across India.
8. Funnel Chart
• Purpose: Represent stages of a process, typically narrowing down.
• Structure: A funnel-shaped chart with stages decreasing in size.
• Best Used For:
o Sales pipeline, conversion rates, recruitment stages.
• Example: Website traffic to conversion funnel (Visitors → Signups → Purchases).
🔍 How to Choose the Right Visualization?
Before selecting a chart, consider the following:
1. Data Type: Categorical vs. Numerical vs. Temporal vs. Geographical.
2. Purpose: Comparison, Composition, Trend, Distribution, Relationship.
3. Audience: Stakeholders, technical team, general audience.
4. Complexity: Keep it simple, unless your audience is technically trained.
