Article Summary: "Graphs sometimes do not always get the credit they deserve
in the business world. Often, they are joked about as being silly visual
aids. In reality, they provide great value. Graphics are typically used
to better represent a set of results or patterns and help improve the presentation
of a study."
Graphs sometimes do not always get the credit they deserve in the business world. Often, they are joked about as being silly visual aids. In reality, they provide great value. Graphics are typically used to better represent a set of results or patterns and help improve the presentation of a study. Serving as illustrative visuals they can improve cognitive reasoning and enhance the scope of how an evaluation has turned out. The concept of data visualization is a great tool that can help assess business performance. In the area of business management graphical analysis is essential in presenting crucial information and in taking appropriate remedial action. Reporting and tracking the market targets of companies is best managed by creating graphs and charts to visualize data and comprehend statistics.
You may ask how a mere diagram can achieve this goal, but you will be surprised by how powerful a visual pattern is in understanding financial reports that mere numbers and figures. Graphs logically represent information along several dimensions based on how one wishes to show the available statistics. The primary purpose of graphs is to show relationships among variables and this may include, in a business world, anything from profit and loss related information to sales and marketing figures. The common types of graphs are line and bar graphs, pie charts, scatter plots and bar diagrams. In general charts represent one type of information, for example, you may show the percentage of profits from various states in the country. Graphs on the other hand show one set of variables represented in a continuous flow against another variable entity, for instance, the annual sales numbers of the past 10 years or something similar. The increasing ease with which graphs can now be created as well as the scope of attractive visuals has created an impact in the business arena.
It is interesting to note that graphs can conceal or reveal information as is desired and will depend on the type of graph chosen and the level of detail structured. For instance, the pie chart might give a picture of relative quantities of each division, but if a precise numerical figure or percentage share is required it might be better to go in for a tabular format than a graph. Thus understanding the purpose of presenting the information is critical to selecting the right type of graphical display. Consider a simple line diagram to represent the pattern of goods sold over a period of time. A graph such as this very effectively reveals the pattern of sales, and can also be used to compare the values for several manufacturers.
So how does this help make the business better you wonder? It's a fairly straightforward approach really. If one were to view the individual sales values of a company over the years, assuming there has been a steady climb in sales, then one is likely to conclude that the company is marketing its products right. Now that is pretty basic. But a comparison of corresponding data from companies within the same industry may show a marked difference, which means your business is not doing as well as you anticipated! Although you may be able to infer this little piece of information by studying pages and pages of company reports, the ease with which a single graph can tell the whole story is undeniable. So now you know not only where your company stands but you will also be able to measure and set future targets for the next year.
The process of effective graphical construction begins with a simple analysis of the information available. Pattern detection comes in very handy to decide the right kind of visual that will best represent your data. Graph construction is an iterative process meaning that there is ample scope for trial and error to assess what works best. Given the popularity and flexibility of graphics and the importance of the patterns revealed by using images, graphs are key decision-making tools for any enterprise.