Overview: The internet has a large amount of raw data. Organizations and companies have data that needs graphical representation for decision-making. The importance of data visualization is to transform the raw data into charts, graphs, and other visual formats like Pareto chart, Sankey Diagram and other survey charts. Imagine what it would be like without data analysis. It would take years to extract meaningful information from data. The advantage of using data analysis is that you can use it for almost all business types.
So, where can you use data analysis? Let’s find out more!
Where to Use Data Analysis
Although small businesses can also use data analysis, it can be expensive to hire a data analyst. However, you can counter this by using a tool like Google Analytics. For large organizations dealing with massive volumes of data, analyzing and visualizing raw data goes a long way in getting insights for decision-making. Such companies are like research institutes, marketing firms, financial institutions, to name but a few. Let’s have a detailed look at areas that use data analysis.
For instance, with the Covid 19 pandemic, a national health department should analyze data on the spread of the virus, measures to stop the spread, and vaccination procedures. Data analytics is essential for a healthcare facility. The information can be presented on a pie chart, graph, or heat map.
Data analysis has helped to improve security in most regions and countries. Data analysis has made it possible for security bodies to maintain security in high-risk places. It helps to identify the risky areas and maintain peace. Data analysis has helped to avert crimes that could be destructive and compromise a nation’s security.
The transport industry has large volumes of data that could help improve service delivery. For example, the data can illustrate high-populated areas that need more means of transport. Besides, the government can use the data to make adjustments within the transportation industry. For example, ease traffic congestion, route planning, and intelligent systems. Private companies also rely on transport data analysis to plan for logistics. As for individuals, you want to know what works for you to save time, money, and fuel.
4. Managing risk
The insurance industry relies on data analysis for decision-making. Before a person or property is insured, a lot of data is needed by the insurance company. It helps the company identify the risk before proceeding to the next probable step. Data analysis also helps to manage fraud.
The education industry relies on data analysis. For instance, the higher education management needs to know how the students are using the school systems to determine effectiveness. Data analysis can also be used to determine the performance trends based on the courses offered. In education, data analysis can provide information about the instructors and students for management use.
6. Delivery service
With the effects of social distancing, most people have their products delivered to the doorstep. For example, food delivery, shopping, and mail delivery are door-to-door as people can’t access services before Covid.
A delivery company like DHL can use data analysis to get information about their clients and delivery routes. With the data, they can decide whether to add more delivery vehicles, expand their routes, and adjust pricing.
7. Internet service providers
A company that deals with internet connections uses data analysis to collect customer and location data. For example, if most clients complain about poor internet, the data they collect will help to improve their services. Do you need to increase the bandwidth? You can determine the cause of low bandwidth and internet usage in a specific area. Such issues are easier to solve when using an analysis tool.
8. Digital marketing agencies
A marketing agency should find out what works for their customers and audience. Representing the information in a visual format makes it easy to interpret and understand. In addition, it helps to demonstrate to customers why online marketing strategies are preferable compared to traditional marketing. Another example of how to use data analysis is to monitor competition. What strategy is the competitor using that helps to keep them on top? You can present the information in a graph or pie chart.
9. Manufacturing industry
The manufacturing industry has a lot of raw data. The untapped data can be the basis for growth within the sector. So, how can you communicate the data. Start by gathering the raw facts and presenting them in a visual format. Manufacturing industries can use it for competitive advantage, improve service delivery and maximize profits.
The government relies on data analysis for service delivery, running daily activities, managing departments, and general governance. In most public service areas, data is represented in charts and graphs, like – transportation, health, security, and finance. The meaningful data give insights when making decisions. The government relies heavily on data analysis to break down complex data into consumable data.
11. Research institutions
The importance of data visualization is to represent research data and communicate conclusions. Most research organizations present data using tables, graphs, and pie charts.
Research findings can be difficult to communicate using plain numbers and text. Your audience may have a hard time understanding the data without the background information.
To present the results, consider using visual formats like graphs, charts, and tables.
12. Weather forecasting
The weather forecasting industry uses data analysis to predict weather patterns. The department checks previous weather patterns before arriving at a conclusion. The data visualization tools help to communicate the data to the general audience.
There are so many areas that make use of data analysis. The analysis process involves data collection, data cleaning, analysis, interpretation, and visualization. The processes are crucial for delivering accurate information for decision-making. Data visualization is very important as it helps in communicating information using graphical and visual data formats. The purpose of data analysis is to extract raw data into meaningful information. As a data analyst, you need to be careful how you analyze the data. Inaccurate data can lead to poor choices that compromise productivity. You can use analysis tools to improve the accuracy of information. Data analysis is applicable in almost all areas that rely on data for decision-making.
Author Bio: Lori Gillen is a Blogger/Content Creator who is specialized in the field of Digital Marketing & Data Analysis with 5 years of experience. Currently working at PPCexpo as a Senior Content Creator.