20 stats that show the power of data visualization

It is one thing to talk about data visualization in an intuitive way, but quite another to demonstrate it with statistical information. Studies are the ‘proof in the pudding’ that offer down to earth, real-­time analysis as to why data visualization works. When these stats are received and accepted by your organization, you can use them to influence the success of your company.

The increasing amounts of data from ever growing sources makes it almost impossible to control the influx of information. Data visualization is the tool that can merge and correlate information to create immediate results. Here are 20 stats (and quotes) that show the power of data visualization:

1. Media theorist John Berger believes that people think in pictures. In his “Seeing comes before words” he states:

“…unless our words, concepts, ideas are hooked onto an image, they will go in one ear, sail through the brain, and go out the other ear. Words are processed by our short­term memory where we can only retain about 7 bits of information (plus or minus 2). This is why, by the way, that we have 7­-digit phone numbers. Images, on the other hand, go directly into long-­term memory where they are indelibly etched.”

2. Psychologist Albert Mehrabian has shown that 93% of communication between human beings is in the nonverbal area. There are studies that indicate that language is decoded on a linear level, while images are deciphered on a simultaneous level. This means that an image can be immediate, while language requires time to analyze. Data visualization can cut-­to­-the-chase, saving that critical time and allowing the next step in developing solutions.

3. “Graphical excellence is the well­-designed presentation of interesting data — a matter of substance, of statistics, and of design. Graphical excellence consists of complex ideas communicated with clarity, precision and efficiency. Graphical excellence is that which gives to the viewer the greatest number of ideas in the shortest time with the least ink in the smallest amount space.” − Edward R. Tufte

4. A 2014 BPM Pulse Survey involving finance professionals indicated that 40% of those interviewed are now changing out the old Excel graphs and charts for data visualization methods. BPM Partners is a vendor­-neutral advisory services firm that specializes in solutions for business performance and BI. CEO of BPM Partners, Craig Schiff stated, “They (financial professionals) really want to understand what’s going on behind the scenes. Graphics are great. The important thing is that not all the visu­alization tools provide the ability to drill back into the detail to broaden your own understanding of the graph that brought the issue to your attention.”

Interactive features from the survey scored at the highest level (71%) and 50% of the respondents indicated that they wanted the ability to present data with specialized graphics using more chart tools and types.

5. (It is estimated that through 2015) 85% of Fortune 500 organizations were unable to exploit big data for competitive advantages. – Gartner

6. “Big Data isn’t a new thing; it’s the size of data that’s new. In just the last 2 years, we’ve generated a zetabyte of data from scanners, mobile devices, web connected devices, television, and computers. To put that in perspective, every 2 days we create as much data as we did from the beginning of time until 2008! And, every 2 years, we create 90% of all the data in existence. By 2020, experts predict there will be 50X as much data as exists today. That’s a lot of data.” – Digitalistmagazine.com: Insights that cause change

7. “Identifying patterns, anticipating outcomes and proactively optimizing a response will be the basis for competition in the future. In the next 10 years, the companies that don’t have analytics deeply embedded in their business model will most likely cease to exist.” – Gartner

8. “Visual data discovery tools will be growing 2.5x faster than the rest of the BI market; investing in this enabler of end­user self­service will become a requirement for all enterprises by 2018.” – IDC

9.“Unstructured data ­words, images, video, and all other non­-numeric data — represent 80% of the data available according to IBM and other digital data experts…Great data insights don’t mean much if the folks controlling change don’t understand them or don’t have the time to pour over columns of data. Enter data visualization; the key to getting data insights to cause change that improves your market performance.” – Digitalistmagazine.com: Insights that cause change

10. “Ninety one percent of business decision makers predict the demand for data visualization tools on mobile devices will increase in the next five years.” – SAP

11. “On average, those using data visualization tools report it would take an average of nine hours longer to see patterns, trends and correlations in their company’s data without data visualization.” – SAP

12. “Organizations with real­time visualization are able to obtain critical information within the decision window 78% of the time, or 22% more often than organizations without real­time visualization.” – Aberdeen

13. “Organizations with real­time data visualization achieved a 26% increase in new pipeline accounts identified.” – Aberdeen

14. “Organizations with rea­time data visualization achieved a 15% increase in cash generated from operations.” – Aberdeen

15. “Companies with successful analytics programs are proven to outperform their competitors and their own business goals. They are:

2 times as likely to be on the top quartile of financial within your industries
5 times as likely to make decisions faster than market peers
3 times as likely to execute decisions as intended
2 times as likely to use data when making decisions”
– infobrandz.oil and gas

16. “Predictive capabilities empower marketers to fine tune market segmentation, recognize correlations, and differentiate anomalies from patterns. Visualizing predictive analytics makes tools more accessible; leading marketers are 70% more likely to be able to use predictive tools without statistical expertise.” – Aberdeen

17. Leading oil and gas companies that have embraced analytics cultures have shown successes at the rates of: “51% foster cross­functional collaboration and co­creation, as compared to 33% success rate of those that have not. 51% increased confidence, as compared to 33% success rate of those that have not. 46% enhanced capabilities, as compared to 40% success rate of those that have not.” – infobrandz.oil and gas

18. Oil and gas companies that make use of immediate analytics experience:

56% increased profitability through improved resource management
50% meet or exceed regulatory compliance
50% gain a competitive edge
47% gain insight into equipment health for improved maintenance
59% improved environmental safety and emissions
-infobrandz.oil and gas

19. In a Safeway grocery store study, data visualizations allowed two important operational improvements to occur:

1. Safeway changed its forecasting methodologies, which improved forecast accuracy by 35%.
2. The data visualization pilot program reduced on­-hand warehouse inventory, which lead to reductions in inventory carrying costs.

20. In a data­informed.com report they indicate, “The volume of data that companies are able to gather about customers and market conditions can provide business leaders with insights into new revenue and business opportunities, presuming they can spot the opportunities in the mountain of data. Using data visualization, decision makers are able to grasp shifts in customer behaviors and market conditions across multiple data sets much more quickly. One of the greatest strengths of data visualization is how it brings actionable insights to the surface. Unlike one-­dimensional tables and charts that can only be viewed, data visualization tools enable users to interact with data.”

Sources:
http://www.slideshare.net/HorizonWatching/data­visualization­horizon­watch­2015­trend­report-
client­version­28jan2015
http://www.digitalistmag.com/technologies/analytics/2015/02/20/data­visualization­insights-
cause­change­02249487

Photo Source

(Visited 4,027 times, 1 visits today)

LEAVE A REPLY