Perceptive Analytics Unlock Value from Data Visualizations - Informs'14 Boston

How to Unlock Value in Data Using

Data Visualizations [#VIZ]

Chaitanya Sagar “CS” [email protected] 646.583.0001

Data Analytics Spreadsheet Solutions |

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Location Strategy to Improve Effectiveness of a Branch Network

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Data Visualizations

Kina, Inc. is a hi-tech company based in Silicon valley. The company’s operations were growing and wanted to track the cash flows in end-to-end business process. The CFO of the company wanted to project future cash requirements.

A comprehensive financial model which integrated the working of different departments was built. The model performed scenario analysis at various levels of sales and inventory investments to estimate the cash requirement. This model was presented to the executive board of XYZ, Inc.

Financial Forecasting Tool for a Silicon Valley Startup

Cash Position Is the company investing

or accruing cash?

Net Margin Is business profitable?

Net Sales How fast are

revenues increasing?

Avg. Selling Price Is the average sales price picking

up?

Overview

Pic

y H

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[email protected] 646.583.0001 #VIZ 9

The need for visualizations

How visualizations help unlock value

How to build visualizations

-Purpose

-Design

Tools

Q&A

Which Industry Do You Work In?

• Banking, Financial Services and Insurance

• Management Consulting

• Retail and CPG

• Information Technology

• Others


Which Function Do You Work In?

• Analytics / BI

• Sales and Marketing

• Operations / Human Resources

• Finance

• IT


The Need for Visualizations

Our Needs Outgrew Charts

More data!

high dimensional

ˠ

Humans are Visual

Brain can absorb large amounts of information and find patterns (and deviations!) P

ic b

y D

an F

oy

X X X X X X X X X

X X X X X X X X X

X X X X X X X X X

X X X X X X X X X

X X X X X X X X X

X X X X X X X X X

X X X X X X X X X

“Mind is a Pattern-Matching Machine”

Edward De Bono Mechanism of the Mind (1969)

x y x y x y x y

10 8.04 10 9.14 10 7.46 8 6.58

8 6.95 8 8.14 8 6.77 8 5.76

13 7.58 13 8.74 13 12.74 8 7.71

9 8.81 9 8.77 9 7.11 8 8.84

11 8.33 11 9.26 11 7.81 8 8.47

14 9.96 14 8.1 14 8.84 8 7.04

6 7.24 6 6.13 6 6.08 8 5.25

4 4.26 4 3.1 4 5.39 19 12.5

12 10.84 12 9.13 12 8.15 8 5.56

7 4.82 7 7.26 7 6.42 8 7.91

5 5.68 5 4.74 5 5.73 8 6.89

Mean 9 7.5 9 7.5 9 7.5 9 7.5

Variance 11 4.122 11 4.122 11 4.122 11 4.122

Correlation

Linear Regression y = 3.00 + 0.500x y = 3.00 + 0.500x y = 3.00 + 0.500x y = 3.00 + 0.500x

Anscombe's Quartet

I II III IV

0.816 0.816 0.816 0.816

Anscombe’s Quartet

How are the Data Sets Different?

• All four data sets are identical

• Distribution could be different

• Median and Mode could be different

• No comment

Statistics May Hide Something

Statistics and bikinis show a lot, but not everything.

- Toby Harrah American baseball player

Where do Data Visualizations Fit in Data Analytics Process?

Acquire Data

Clean Data

Explore Data

Data

Modeling

Insights

Communicate

Where does Data Visualization Fit in Data Analytics Process?

[email protected] 646.583.0001 #VIZ

How Visualizations Help Unlock Value

Make Sense of Vast Data Quickly

Elicit Questions You Did Not Ask Before

What should we do to make India a land of equal opportunity for all, free of prejudice and discrimination?

- Ratan Tata

Sample Responses

• @amitagarwal08 @RNTata2000 what can a common.man do to change india..it all depends on government n big people like u sir with gr8 respect..

• @bangaarm @RNTata2000 Budget 2012: This year is Tax Holiday. No income tax on your earnings. This is to bring back all the black money to India

• @sri_v22 @RNTata2000 1. Kill corruption 2. Electoral reforms so that honest ple can get into politics 3. Media & activists should increase their role

• @joseaaa @RNTata2000 Can't be articulated with 140 characters. Quality education for the masses is magic potion that can address most of the problem.

Better politics? Corruption?

Family planning?! Fix capitalism Fix Education

Fix legal system

Elicit Questions You Did Not Ask Before

Discover New Data Relationships

Show Others What You See

Show Others What You See

http://guns.periscopic.com

How to Create Visualizations

Data

Analyst

Tool

Insights

Data

Analyst

Tool

Domain / Situation

Imagination

Purpose Design


Purpose

Pic

by

Mer

vi E

skel

inen

Tasks Audience Answers


Process

• Understand your goals

• Determine the most important dimensions of your data

• Determine key data relationships

• Show data close to reality e.g. maps, time lines etc.

• Choose encoding wisely “Function first, suave next”

• Choose colors to communicate well

Visual Encoding


Design


Pic

: Ec

otr

ust

Can

ada

51

What Do You Think About This Chart?


39.0%

19.5%

9.8%

7.4%

3.1%

21.2%

U.S. SmartPhone Marketshare

RIM

Apple

Palm

Motorola

Nokia

Other

Edward Tufte

$450

$650

$850

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Monthly Revenue

470

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550

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610 600

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500 450

$0

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Monthly Revenue

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usa

nd

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ou

san

ds

Avoid Chart Junk

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Monthly Revenue

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usa

nd

s

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Monthly Revenue

Avoid Chart Junk Th

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san

ds

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J F M A M J J A S O N D

Monthly Revenue

Avoid Chart Junk

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Jan

Feb

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Ap

r

May Jun

Jul

Au

g

Sep

Oct

No

v

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Monthly Revenue

Maximize Data Ink Ratio Data-ink/Total ink used

Maximize Data Density (# entries in data matrix)/(area of graphic)

Colors


Colors


Create Color Harmony


Analogous

Complementary

Ideas for Color Harmony

Use colorbrewer2.org

ColorBrewer2.org

21 colors!


Tools


Resources

Designing Data Visualizations Visual Encoding complexdiagrams.com/properties richardbrath.wordpress.com Edward Tufte edwardtufte.com D3JS.org Processing.org Principles of Visualization Design

http://shop.oreilly.com/product/0636920022060.do

http://shop.oreilly.com/product/0636920022060.do

http://complexdiagrams.com/properties

http://richardbrath.wordpress.com/

edwardtufte.com

http://www.quadrigram.com/become-an-expert/tutorials/principles-of-visualization-design

How to Unlock Value from Your Data with Visualizations

April 16, 2014


Thank you!

71

[email protected] +1.646.583.0001

Perceptive Analytics Unlock Value from Data Visualizations - Informs'14 Boston

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