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.