Question

Why does a bushiness use a Chart for showing their Data, and what type of chart is used the most by businesses?

Answer 1

Organizations or companies or businesses use charts for the following reasons:

(i) Better Analysis

Data visualization through charts helps business stakeholders to analyze reports regarding marketing strategies, sales, financial growth and product interest. Based on this analysis, they are able to focus on the areas that require more attention to increase the sales and profits, which in turn makes the business more productive.

(ii) Quick Action

The human brain grasps visuals more easily and quickly than written content and table reports. Data visualization through charts allow decision makers to gain new data insights and take necessary actions for growth of business.

(iii) Identifying patterns and trends

Large amounts of complicated data can be simplified through charts and provide numerous opportunities for insights when businessmen visualise them. Data representation on charts allows business users to identify relationships between the data, thus providing greater meaning to it. Exploring these patterns or trends helps companies to focus on specific areas that require special attention in the data, so that they can understand the significance of those areas to drive their business forward.

(iv) Finding errors

Visualizing the data on charts helps quickly identify the errors in the data if any. If the data tends to suggest the wrong actions, visualizations through charts can help companies identify erroneous data sooner so that it can be removed from the analysis.

(v) Understanding the scenario

By designing and representing the data on charts in a meaningful way, companies are able to help the clients grasp the story in a single glance. These charts make sure that the scenario is conveyed in the simplest way, without excessive complicated visuals.

(vi) Exploring business insights

In this competitive business environment, finding correlations between the data using visual representations is key to gaining business insights. Exploring these insights is important for companies and their business executives in order to set the right path to achieving the goals of business.

PIE CHART is the most commonly used chart in the business followed by line charts and bar graphs.