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Data Visualization and its impact in decision making in business

Research Proposal · March 2023

DOI: 10.13140/RG.2.2.21906.12483

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 DATA VISUALIZATION AND ITS
IMPACT IN DECISION MAKING IN
BUSINESS
Research Paper
2023/03/31

Authors: Sharad Sharma, Archita Kandel

Deerwalk Institute of Technology, Tribhuvan University
Kathmandu, Nepal
Table of Contents:
Abstract: ................................................................................................................ 1
Background Information: ...................................................................................... 2
Purpose of the research: ........................................................................................ 3
Significance of the study:...................................................................................... 4
Literature Review:................................................................................................. 5
Definition: .......................................................................................................... 5
Importance of data visualization in decision making: ....................................... 5
Advantages of data visualization: ...................................................................... 6
Disadvantages of data visualization: ................................................................. 6
Pros and Cons of data visualization in decision making in business: ............... 6
Types of data visualization techniques:............................................................. 7
Methodology: ...................................................................................................... 10
Research design and approach: ....................................................................... 10
Sampling techniques:....................................................................................... 10
Data Analysis Techniques: .............................................................................. 10
Results: ................................................................................................................ 11
Data Visualization Tools: ................................................................................ 11
Data Visualization Methods: ........................................................................... 14
Dashboards: ..................................................................................................... 20
Conclusion: ......................................................................................................... 24
References ........................................................................................................... 25
 1
Data Visualization and Decision Making in Business

Abstract:
This research paper investigates the impact of data visualization on decision
making in business. Through a review of literature and case studies, the study
demonstrates the significant impact of data visualization on improving business
outcomes by enabling better-informed decision making. The paper concludes that
data visualization tools, such as charts, graphs, and dashboards, can effectively
enhance decision making in various contexts. However, the effectiveness of these
tools varies based on the business context. The research also highlights the
practical impact of data visualization on business decision making, exemplified
by the successful implementation of targeted marketing campaigns and increased
revenue by a retail company. Overall, this research emphasizes the importance of
data visualization in enhancing business decision making and improving
outcomes.

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Data Visualization and Decision Making in Business

Background Information:
In today's fast-paced business environment, decision makers are faced with the
daunting task of sifting through enormous amounts of data to make informed
decisions. Fortunately, data visualization has emerged as a powerful tool that can
help organizations overcome this challenge. By presenting data in a visually
appealing and easy-to-understand format, decision makers can quickly gain
insights into complex data sets and make informed decisions that drive business
growth. Despite its growing popularity, there is still much to learn about the
effectiveness of data visualization in supporting decision making in business.
This research aims to fill this knowledge gap by conducting a comprehensive
investigation into the impact of data visualization on decision making in business.
By shedding light on the advantages and disadvantages of data visualization
techniques and the factors that influence their use, this research aims to provide
valuable insights that can help decision makers use data visualization to its fullest
potential.
We live in an age of technology, with the whole world shifting from review-
centric approach to data-driven automations, businesses are putting bets in the
data they’ve collected over the years of tenure and service to provide better
customer experience and enhance the service.

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Data Visualization and Decision Making in Business

Purpose of the research:

Although data visualization has become increasingly popular, there is still a need
for further research that examines its impact on decision making in the context of
business. Despite previous studies on the topic, there is still much to learn about
how data visualization can be effectively used to support decision making, and
what factors contribute to its success.
As such, the purpose of this research is to fill these gaps in the literature by
conducting a comprehensive investigation into the impact of data visualization
on decision making in business. By doing so, we aim to provide a thorough
understanding of the role of data visualization in decision making and offer
insights that can guide the development of effective data visualization practices
in business settings.
Here are five purposes of this research:
1. To explore the role of data visualization in decision making in the context
of business and understand its advantages and disadvantages.
2. To identify the specific types of data visualization techniques used in
business decision making and evaluate their effectiveness.
3. To investigate the factors that influence the effectiveness of data
visualization techniques in decision making, including the characteristics
of the data, the decision makers' cognitive processes, and the organizational
context.
4. To compare and contrast the impact of data visualization on decision
making across different industries and organizational contexts.
5. To provide insights and recommendations for decision makers and
practitioners on how to develop effective data visualization practices in
business settings, based on the findings of the research.

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Data Visualization and Decision Making in Business

Significance of the study:

The study aims to provide the contribution for the people who are willing to use
the knowledge of data and the methods of visualizing them for the use of
business-specific needs and special aims and objectives tailored to them
specifically.
By researching into this topic, we can help provide decision makers and the data
practitioners understand the potential and effectiveness of using such methods in
business and the ways that directly and indirectly affect the business in various
aspects including decision making, critical analysis and problem solving through
the use and analyzation of the data alone to the fullest potential. Along with that,
the research will also provide the valuable insights to the factors that influence
the success of the data visualization methods, and help organizations improve the
decision-making processes, which produces better business outcomes and
increased competitiveness in the market. By shedding light on the role of data
visualization in decision making in business, this research can help pave the way
for future research and innovation in the field of data visualization.

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Data Visualization and Decision Making in Business

Literature Review:
Definition:
Data visualization is the process of representing data with charts and other form
of graphical tools and tables that are used to present the data in a more visual
manner. Some of the tools may include stuffs like the basic chart to complex types
of graphical elements like animations and heavy infographics (IBM, 2023).

Importance of data visualization in decision making:

Most of the times data visualization helps to improve the state of understanding
of the data and reduces the complexity of the data hence, enhancing the way the
data is perceived by the people whether it be a public watching forecasts on stock
market or the marketing lead who is watching a trend on sales of the company
products over the last decade and find an underlying trend. This manner
visualization of data helps the people to find some kind of hidden trend which
can be used for prediction and analysis for statistical purposes tailored to the need
of the people.
The importance of data visualization in decision making cannot be overstated. In
today's world, organizations generate enormous amounts of data, and it is
becoming increasingly difficult for decision makers to explore and understand
this data. Fortunately, data visualization can help solve this problem. By creating
computer-generated graphical representations of the data, decision makers can
see analytics in visual form, enabling them to quickly identify patterns and make
sense of complex information. This is particularly important in scientific research,
where the ability to visualize data is crucial. With the help of data visualization,
decision makers can more easily comprehend information and form informed
opinions, leading to better decision making (Sadiku, et al., 2016).
Data visualization is not just about transforming the numbers into a visual form
but also be able to predict and forecast some underlying trends that can only be
seen once viewed graphically as it enhances the cognition and the association of
the data with time which is very hard to see in numbers unless one is very
proficient with mathematics and understanding patterns in data either be an
anomaly or repeated scenarios. Especially in business, when there has to be
certain decisions to be made while taking various critical factors into
consideration tiny and intricate details could affect the way of how the business
shapes its course of actions and policies in the coming time. Hence, data which is
the backbone of the current business houses out there, having chance of being
able to view such kind of details helps foster the growth in a positive manner and
avert crisis.

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Data Visualization and Decision Making in Business

Advantages of data visualization:

1. Facilitates better understanding and simplification of complex data.
2. Allows communication using insights with the stakeholders.
3. Assists in identification of outliers and anomalies.
4. Exploration of trend and easy analysis.
5. Identification of the correlation and dependencies of the data factors and
course of actions in business.
6. Better and more accurate customer sentiment analysis.
(Yellowfin, 2023)

Disadvantages of data visualization:

1. Inconsistent and improper data visualization could cause more harm in
decision making than when data visualization wasn’t used before.
2. Difficult to represent all kinds of data in a common format.
3. Requires extra human mind and a highly skilled manpower in the same
domain.
4. Working with inconsistent and unsanitized data could be very hectic and
cause waste of resource and computation power.

Pros and Cons of data visualization in decision making in

business:
In business data visualization could be a matter of critical subject as it involves
working with the sensitive data that the company or the business holds that has
been collected through multiple years of service and policies. We list a few pros
and cons of data visualization in decision making in the world of business and
commerce:
A. Pros:
a. Aids in simplification of the complex datasets, which makes it easier
for making decisions after analyzing the information received and
insights seen.
b. Communication is a key factor helping in shape the business and its
course of actions. If communication between the technical lead,
sales department and the stakeholders could be achieved in a simple
and unintuitive then it could result in healthy cooperation between
the manpower.

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Data Visualization and Decision Making in Business

c. Decision making is comparatively easy through the use of graphical

understanding of the data allowing faster response to the evolving
business condition in real-time.
d. Reveals patterns and trends which might not be apparent if
traditional and heuristic experiences are used to make data-driven
decisions.
B. Cons:
a. Distortion in data could be easily used to manipulate the decisions
which at all times might not be feasible or practical which could lead
to misleading conclusions and decisions.
b. Interpretation could be difficult as not all data could be visualized in
a simpler and reasonable manner.
c. Cost, complexity, and over-reliance on visuals could result in higher
computing and HR cost as it needs experts of the field.

Types of data visualization techniques:

There is enormous amount of presenting a tabular form of data to the world. The
data types, size of data, dates when it was collected, and the type of insight needed
are some of the key factors that help the data analysts decide what kind of data
visualization technique suits the criteria and the need of the people/client.
However, there are a few common methods of describing data using the visuals
which include:
1. Line graph
2. Bar graph
3. Pie graph
4. Box graph
5. Scatter plots
(Sadiku, et al., 2016)
All of these graphs are used to represent data ranging from the simplest to the
most complex ones. Some are used for data with continuous distributions whilst
some are used to represent discrete sets of data. Regardless of the data type, the
number of insights to be represented depends upon the factors to be added while
representing graphs and representing them either as a dimension in the picture or
a color. Some common properties of graphs that are used to represent a feature of
the data are:
1. Color of the plot
2. Color of the plot objects, example: bars, points, lines etc.
3. Size of the plot objects
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Data Visualization and Decision Making in Business

4. Order of the plot objects

5. Position of the shapes
6. Axes and many more.
“The data is abstracted and summarized, a visualization system should
perform a data reduction, transformation and projection of the original data on
a screen (Sadiku, et al., 2016)”.
According to the website, in certain cases, more complex data visualization
formats such as bubble charts, geographical maps, scatter graphs, and tree maps
may be used based on the analysts' level of proficiency in reading data
visualization. The selection of these formats may depend on several factors,
including the complexity of the information being analyzed and the industry's
familiarity with such visualizations. (Source: (MapBusinessOnline, 2023))
Consider these scenarios:
1. Pie charts: A company wants to visualize its sales data by product category
for the year. A pie chart could be used to display the percentage of sales
each category generated out of the total sales. This could help the company
identify which product categories are performing well and which ones need
more attention.
2. Bar graphs: A marketing team wants to compare the sales performance of
different regions for a particular product. A stacked bar graph could be
used to display the sales figures of each region as bars, with each bar
divided into sections representing different product lines. This could help
the team identify the best-performing regions and the most popular
products within each region.
3. Scatter plots: An online retailer wants to analyze the relationship between
customer age and purchasing behavior. A scatter plot could be used to
display the age of customers on the x-axis and the amount spent on
purchases on the y-axis. This could help the retailer identify any trends or
patterns in customer behavior based on age.
4. Line graphs: A company wants to track its revenue growth over time. A
line graph could be used to plot the company's revenue over a period of
several years, with each year represented by a point on the graph connected
by a line. This could help the company identify any trends in revenue
growth over time and make informed decisions about future investments.
5. Heat maps: A business wants to visualize customer behavior on its website.
A heat map could be used to display the areas of the website that customers

Sharad Sharma, Archita Kandel

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Data Visualization and Decision Making in Business

click on the most, with the areas of highest click density represented by
darker colors. This could help the business identify which areas of the
website are most engaging to customers and make design changes to
optimize user experience.
Each of these visualization techniques has its strengths and weaknesses, and the
appropriate choice will depend on the specific context and purpose of the analysis.
These are a few examples of the condition when the certain business decides to
choose what type of visualization technique to use, apart from the purpose of the
visualization, nature of the data, other factors like company’s policy and trend
could also determine what kind of method is to be deployed.

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Data Visualization and Decision Making in Business

Methodology:
Research design and approach:
It is important to note that this research will be conducted using secondary data
sources, such as published articles, websites, and other relevant media. As a
student, the primary access to data and domain knowledge is through these
secondary sources. This method of data collection is known as desk research, and
it is widely used in academic research when primary data collection is not feasible
or practical. The use of desk research is an acceptable method for this research,
and it will enable the study to draw upon the vast amount of literature and
resources available on the topic. The data collected through desk research will be
analyzed using a combination of quantitative and qualitative data analysis
techniques to provide a comprehensive understanding of the impact of data
visualization on decision making in business. Any form of data that has been cited
or taken as a reference would be cited properly and listed in the References
section at the end of this paper.

Sampling techniques:
The sample for this study is the combination of both the probabilistic and non-
probabilistic sampling method. Selection of random businesses from a list of the
registered businesses in the desired industry is the method of probabilistic method
while the selection of the targeted business who used data visualization to help
aid the business decision making is the non-probabilistic method of the sampling
used in this research.

Data Analysis Techniques:

Content Analysis:
The content of the data that has been already published is used to analyze and
identify the patterns of the data that contributes for the solution of our research
question. Case studies, research reports and industry publications are used to
identify the examples of how data visualization has helped shape decision making
in business and evaluate the resulting outcomes.

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Data Visualization and Decision Making in Business

Results:
Data Visualization Tools:
It has been found most of the companies use tools for data visualization like:
1. Microsoft Excel (and Power BI)
In its strictest definition, Microsoft Excel is a software designed for
spreadsheet purposes, rather than being classified as a data visualization
tool. However, despite this classification, Microsoft Excel is still equipped
with various data visualization capabilities that can prove to be useful. This
can be especially beneficial for businesses that widely use Microsoft
products, as they may already have access to it.
According to Microsoft's documentation, Excel has the capability to create
over 20 types of charts using data stored in spreadsheets, including
common options such as bar charts, pie charts, and scatter plots, as well as
more advanced types such as radar charts, histograms, and treemaps.
Nonetheless, it is important to note that there are some limitations in terms
of what can be created using Excel.
For companies looking for a more powerful data visualization tool while
still staying within the Microsoft ecosystem, Power BI is an excellent
alternative. Power BI is specifically designed as a data analytics and
visualization tool, and can import data from various sources and output
visualizations in a range of formats (Stobeirski, 2021).

2. Google Charts:
For professionals seeking to create interactive data visualizations intended
to be hosted on the internet, Google Charts is a popular and free option.
This tool has the capability to obtain data from various sources such as
Salesforce, SQL databases, and Google Sheets, and it utilizes
HTML5/SVG technology to create charts, making them highly accessible.
Google Charts provides 18 different types of charts including bar charts,
pie charts, histograms, geo charts, and area charts. In addition, members of
the Google community may develop new charts and share them with others,
which are then displayed in a gallery on Google's website. These charts
may be more advanced, but they may not be HTML5-compliant (Stobeirski,
2021).

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Data Visualization and Decision Making in Business

3. Tableau:
Tableau is regarded as one of the most widely used data visualization tools
in the market for two main reasons: it's user-friendly and remarkably
powerful. With the capacity to integrate with hundreds of data sources and
produce dozens of visualization types ranging from charts to maps, the
software is a preferred choice for many users. Tableau is owned by
Salesforce, and it has millions of users and community members, with
widespread usage at the enterprise level.

Tableau provides several products, such as desktop, server, and web-hosted

versions of its analytics platform, and customer relationship management
(CRM) software. Additionally, a free option known as Tableau Public is
available. However, it's essential to note that any visualizations created
using the free version can be seen by anyone. While it can be a good choice
to learn the software's fundamentals, it may not be suitable for any sensitive
or proprietary data (Stobeirski, 2021).

4. Zoho Analytics:
Zoho Analytics is a data visualization tool that caters to business
intelligence professionals and is primarily used to visualize data related to
sales, marketing, profit, revenues, costs, and pipelines through its user-
friendly dashboards. It has over two million users and is used by more than
500,000 businesses. Zoho Analytics offers several paid versions and a free
version that allows limited report building, making it useful for businesses
trying to determine which tool to use. Other similar tools tailored to sales
and marketing professionals include HubSpot and Databox, both of which
have powerful data visualization capabilities (Stobeirski, 2021).

5. Datawrapper:
Datawrapper is a web-based data visualization tool that is primarily used
to create charts, maps, and graphics for use on the internet. Originally
designed for reporters, it can be useful for professionals responsible for
managing websites. However, compared to other tools on this list,
Datawrapper has some limitations. One of the main drawbacks is that it
does not integrate with data sources, which means users need to manually
copy and paste the data into the tool. This can be a time-consuming process
and can also result in errors. The tool offers various types of charts,
including scatterplots, line charts, stacked bar charts, pie charts, range plots,
and a variety of maps and tables. Datawrapper offers both free and paid
options based on the user's needs (Stobeirski, 2021).
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Data Visualization and Decision Making in Business

6. Infogram:
Infogram is a well-known data visualization tool that can be used to
produce maps, reports, and charts. What distinguishes Infogram from other
tools on this list is its capability to create infographics, which makes it
popular among creative professionals. Its drag-and-drop editor also makes
it easy for beginners to use (Stobeirski, 2021).

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Data Visualization and Decision Making in Business

Data Visualization Methods:

Consider this chart (Srivastava, 2022):

Figure 1: Changes of Music Media Consumption over the years

This is a type of chart that would be used to visualize the data driven decisions
in the companies. Many insights could be extracted from this type of chart. For
example: The rise of compact disc and the fall of cassette could be seen visually
from this type of chart. The decision makers in this case would make decisions
that would favor them and not be against the trend of usage of a new type of
media in the market, which could be a saving factor for business as evolving
with the time and the demand of market is very essential for the sustainability of
the business.
Using this type of chart not only helps to view the activities and trade
occurrence but also predict the upcoming rise or fall of the product. While this
may not be always accurate but most of the times it is close to the prediction if
not hundred percent accurate

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Data Visualization and Decision Making in Business

Some examples when businesses used trend analysis to make data driven
decisions are:
Netflix:

Figure 2: DVD sales (Whitten, 2019)

This passage discusses the rise and fall of DVD sales in the early 2000s. DVD
sales grew between 2001 and 2005, but declined in 2006. The 2008 economic
downturn caused a significant slump in DVD sales and the overall home video
market. The decrease in disposable income caused consumers to cut back on
DVD spending, leading to the decline of the DVD industry. By the end of 2008,
total sales of DVDs, Blu-Rays, on-demand video, and digital had fallen 28% to
$17.9 billion (Whitten, 2019).

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Data Visualization and Decision Making in Business

Figure 3: DVD sales in US (Whitten, 2019)

The decline of DVD sales started during the Great Recession due to the decrease
in disposable income of consumers. The rise of video-on-demand and digital
downloads, which were cheaper alternatives, further contributed to the decline of
DVD sales. The shift from physical to digital markets was irreversible, and
customers who made the transition were unlikely to go back to DVDs. The rise
of streaming services like Netflix, Hulu, and HBO further accelerated the decline
of DVD sales. Between 2011 and 2018, DVD sales fell by more than 67%, while
the sales of streaming services skyrocketed by 1,231% to $12.9 billion (Whitten,
2019).
In order to remain competitive in the market, the digital media giants like Netflix
and Hulu shifted from the physical media to cheaper digital alternatives and also
introduced the rental service in the digital footprint which led to the huge success
now as the users loved it since it was convenient and was better in terms of quality.

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Data Visualization and Decision Making in Business

Target:

In 2012, Target, the retail giant, made headlines when it was revealed that they
were using customer data to predict pregnancies and market to expectant mothers.
This was an example of how data visualization can be used to make business-
oriented decisions. Target was collecting data on customers' purchases, such as
unscented lotion, cotton balls, and vitamins, and then using data analysis and
visualization tools to predict when a woman was likely to become pregnant. The
company then targeted those customers with advertising for baby products,
hoping to win their loyalty before the competition did.
Target's data analysis team created a pregnancy prediction score for each
customer, based on their purchase history, and used data visualization tools to
make that information accessible to marketing teams. The visualizations showed
the customer's purchase history, the products they were most likely to buy in the
future, and when they were most likely to become pregnant.
This data-driven decision-making led to increased sales and helped Target gain
an advantage over its competitors. However, it also raised ethical concerns about
how companies are using customer data and whether customers are aware of how
their information is being used.
In summary, Target used data visualization to analyze customer data and make
informed decisions about marketing strategies. This example highlights the
power of data visualization in helping businesses gain insights into customer
behavior and make strategic decisions that can drive growth and profitability
(How Target Figured Out A Teen Girl Was Pregnant Before Her Father Did,
2012).

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Data Visualization and Decision Making in Business

Domino’s:
Domino's is a global pizza delivery chain with over 10,000 outlets. The company
uses a multi-channel approach to connect with customers, known as "Domino’s
AnyWare," which allows customers to order pizza on various platforms such as
Twitter, Facebook, and smartwatches. Domino's uses Big Data to gain insights
into customer behavior, which is fed into its Information Management
Framework to build a unified customer view. The data is sourced from various
channels such as text messages, Twitter, Pebble, Android, and Amazon Echo.
Enrichment data from third-party sources such as the US Postal Service, geocode
information, demographic, and competitor data are also used to allow for in-depth
customer segmentation. Domino's uses statistical modeling of customers fitting
their profile to offer different coupons and product offers based on household and
individual customers. Domino's also uses data to tailor coupons and product
offers for stores and franchise groups, and to assess performance and drive growth.
The company processes 55% of its orders online and relies on Talend’s Big Data
Integration platform for much of the heavy back-end work across its Enterprise
Data Warehouse. The company has also been experimenting with new delivery
methods, such as a car with a built-in oven, to cut the carbon footprint of
deliveries (Big Data-Driven Decision-Making At Domino's Pizza, 2016).
Domino's Pizza is a prime example of how companies are leveraging Big Data to
drive growth and customer satisfaction. With a multi-channel approach to connect
with customers and gain insights into their behavior, Domino's has been able to
build a unified customer view and create tailored coupons and product offers for
individual customers and franchise groups. The company's use of statistical
modeling and third-party data sources has enabled in-depth customer
segmentation and performance assessment. Moreover, Domino's has also been
experimenting with innovative delivery methods to cut the carbon footprint of
deliveries. Overall, Domino's Pizza is a great case study for businesses looking
to leverage Big Data to improve their operations, customer satisfaction, and
bottom line.

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Data Visualization and Decision Making in Business

Airbnb:
Airbnb is a prime example of a company that has leveraged data visualization to
make informed business decisions. The company, which allows people to rent out
their homes and apartments to travelers, collects vast amounts of data from both
hosts and guests. This data is then analyzed to gain insights into customer
behavior and preferences, which are used to improve the user experience and
ultimately drive business growth.
One way Airbnb has used data visualization is through their dynamic pricing
feature. By analyzing data on the demand for accommodations in a specific area,
the platform can automatically adjust the price of a listing based on factors such
as the day of the week, season, and local events. The company uses a tool called
"Price Tips" to help hosts optimize their pricing strategy, which is presented
through a series of data visualizations. This helps hosts understand the
relationship between pricing and occupancy rates, as well as identify trends and
patterns that could impact their rental income.
Airbnb also uses data visualization to better understand customer preferences and
needs. For example, the company has developed a feature called "Wish Lists,"
which allows users to save and share their favorite listings. Airbnb then analyzes
this data to identify popular destinations, amenities, and styles of
accommodations, which can help inform their business strategy. This data is
presented through visualizations such as heat maps and charts, making it easier
for the company to identify trends and patterns.
Overall, data visualization has become an integral part of Airbnb's decision-
making process. By using visualizations to analyze and communicate complex
data, the company has been able to gain valuable insights into customer behavior,
preferences, and trends. This has allowed Airbnb to create a more personalized
and user-friendly experience for its customers, which has helped drive business
growth and success.
(ProjectPro, 2023)

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Data Visualization and Decision Making in Business

Dashboards:
In the context of business, a dashboard is a graphical user interface that displays
data in a concise and visual format. It provides an overview of key performance
indicators (KPIs), metrics, and other important information that can be used to
make informed decisions. Dashboards can be customized to meet the specific
needs of a business or department, allowing decision-makers to focus on the
information that is most relevant to their goals. They can be used to monitor
progress towards goals, identify trends and patterns, and track performance over
time. Dashboards can be created using a variety of software tools, such as Excel,
Tableau, Power BI, and Google Data Studio. They can also be integrated with
data from various sources, including databases, spreadsheets, and third-party
applications.
In research, dashboards can be used to visualize and analyze data in real-time.
They can help researchers to identify trends and patterns, track progress towards
research goals, and make informed decisions based on data insights. Dashboards
can also be used to communicate research findings to stakeholders in a clear and
concise manner.
Overall, a dashboard is a powerful tool for decision-making in business and
research, providing a visual representation of data that can help to inform strategic
decisions and drive success. Dashboards are highly customizable, and can include
data of all sorts with varying date ranges to help users understand what happened,
why it happened, what may happen, and what action to take. Dashboards use
visualizations like tables, graphs, and charts to make it easy for others who aren’t
as close to the data to understand the story it tells or the insights it reveals.
Reports, on the other hand, have a more narrow focus and serve the purpose of
providing a deep-dive view into a data set, often concentrating on a single item
or event. Dashboards tend to have a high-level view of broad amounts of data and
are created to answer a single question, which can be broad or specific.

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Data Visualization and Decision Making in Business

Examples on the companies that use dashboards:

Starbucks:
Starbucks is one of the leading coffeehouse chains in the world, with over 32,000
stores globally. To maintain this scale, they use an advanced data analytics system
to track every aspect of their business, from sales and customer behavior to
inventory management and supply chain. To monitor these metrics, Starbucks
uses a custom-built dashboard that enables their managers to make data-driven
decisions.
Starbucks' dashboard provides insights on various performance indicators such
as sales revenue, customer loyalty, inventory management, and supply chain
management. The data is gathered from different sources such as point-of-sale
systems, customer feedback, and inventory management systems. This dashboard
helps Starbucks managers to analyze data in real-time and make informed
decisions on everything from which products to promote to how to optimize the
supply chain.

Airbnb:
Airbnb is a leading vacation rental platform with millions of users worldwide. To
keep up with the constantly changing needs of their customers, Airbnb uses a
custom-built dashboard to monitor the performance of its business in real-time.
This dashboard provides insights on various performance indicators such as
bookings, customer satisfaction, and revenue management.
Airbnb's dashboard provides real-time data on booking patterns, customer
satisfaction, and revenue streams. This information is gathered from various
sources such as customer feedback, booking history, and payment processing
systems. Airbnb managers can use this dashboard to identify trends and make
informed decisions on everything from pricing strategies to marketing campaigns.

Amazon:
Amazon is the world's largest online retailer, with over 200 million products
available for purchase. To maintain this scale, Amazon uses an advanced data
analytics system to track every aspect of their business, from sales and customer
behavior to inventory management and supply chain. To monitor these metrics,
Amazon uses a custom-built dashboard that enables their managers to make data-
driven decisions.
Sharad Sharma, Archita Kandel
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Data Visualization and Decision Making in Business

Amazon's dashboard provides insights on various performance indicators such as

sales revenue, customer behavior, and supply chain management. The data is
gathered from different sources such as customer feedback, sales history, and
inventory management systems. This dashboard helps Amazon managers to
analyze data in real-time and make informed decisions on everything from which
products to promote to how to optimize the supply chain.

In today's data-driven business landscape, companies need to have the ability to

quickly and accurately analyze data to make informed decisions. Dashboards
have become an essential tool for companies to do just that. By gathering data
from various sources and presenting it in an easy-to-understand format,
dashboards enable managers to quickly analyze trends and patterns and make
data-driven decisions that can drive business growth. From Starbucks to Airbnb
to Amazon, many companies have implemented dashboards to improve their
decision-making process and gain a competitive advantage.Apart from trend
charts and dashboards, there are various other forms of data visualization that are
used by businesses to make data-driven decisions. These include:
Heatmaps:
Heatmaps are used to represent data in a matrix format where each cell is colored
according to the value it represents. They are useful for identifying patterns and
trends in large data sets. For example, e-commerce websites may use heatmaps
to understand how customers interact with their website by analyzing their mouse
movements and clicks.
Scatterplots: Scatterplots are used to plot data points on a two-dimensional graph
with one variable on the x-axis and the other variable on the y-axis. They are
useful for identifying correlations between variables. For example, a retailer may
use scatterplots to understand the relationship between price and sales volume for
different products.
Geographic maps: Geographic maps are used to represent data by location. They
are useful for understanding regional trends and patterns. For example, a
restaurant chain may use geographic maps to understand the distribution of their
customers and the performance of their stores in different locations.
Sankey diagrams: Sankey diagrams are used to represent the flow of data
between different stages or processes. They are useful for identifying bottlenecks
and inefficiencies in complex systems. For example, a manufacturing company
may use Sankey diagrams to analyze the flow of materials and resources through
their supply chain.
Sharad Sharma, Archita Kandel
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Data Visualization and Decision Making in Business

Word clouds: Word clouds are used to represent data in a visual way where the
size of each word represents its frequency or importance. They are useful for
analyzing text data such as customer feedback or social media posts. For example,
a hotel chain may use word clouds to understand the key themes and sentiments
in customer reviews.
Overall, these different forms of data visualization provide businesses with a
variety of ways to make sense of their data and make informed decisions.
In this manner, we found out that multiple companies used the data visualization
techniques to improve the service and make data driven decisions that led to the
prolongation of the tenure of the business bringing in more profits and customers
than before. Using the methods of data visualization like trend analysis, data
dashboards and other methods, they were able to build a robust system with
improved end to end customer experience. We looked at some companies that
used these techniques and their methods of dealing with the decisions that were
influenced by the graphical insights provided by the visualization of the data.
Using the data could be beneficial for the company as well, as it helps to improve
the efficiency and helps to understand the customer’s interactions and the
methods on how to improve the experience. Most of the times the data fed
systems brought newer facilities which were taken as a liking by the user,
however some also posed a threat to the privacy and integrity of the personal data
as breaching the personal data is a major blow to privacy. So, data needed might
not always be a garden full of bees to companies but something that has been
collected through decades of service with or without the user’s consent. Either
way, the data visualization method might not provide a huge impact to the quick
decision but it paves the way to a course of actions and change in the mentality
which leads to one decision to another.

Sharad Sharma, Archita Kandel

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Data Visualization and Decision Making in Business

Conclusion:
The study demonstrates that data visualization plays a significant role in decision
making for businesses. The literature review provided an in-depth analysis of the
importance, advantages, disadvantages, and types of data visualization
techniques. Additionally, the review highlighted previous studies that have
explored the impact of data visualization on decision making. The results of the
study showed that businesses use various forms of data visualization techniques,
including trend charts, dashboards, heatmaps, and infographics, to make data-
driven decisions.
The implications of the study suggest that the use of data visualization should be
integrated into business decision-making processes to improve data analysis,
understanding, and interpretation. By leveraging visual representation of data,
businesses can gain insights that are otherwise difficult to discern from raw data.
The study's findings also suggest that businesses should invest in tools and
technologies that enable effective data visualization.
One limitation of the study is the reliance on secondary sources of data, which
may have influenced the study's scope and accuracy. Furthermore, the study did
not delve into the practical challenges associated with the implementation of data
visualization in businesses. Future research could explore these limitations and
expand the understanding of the impact of data visualization on decision making
in businesses.

Sharad Sharma, Archita Kandel

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Data Visualization and Decision Making in Business

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