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Data is crucial in the business world. It gives executives and managers the information they need to make decisions, perfect strategies and guide their companies in the right direction. However, data can also be very confusing—especially if your company is a large one. Luckily, data visualization software can help bring clarity when there is confusing or overwhelming data. It can help teams see their data in action so they can spot trends, realize potential opportunities and recognize problem areas when they arise.

If you’re considering data visualization software for your business, take a minute to learn about these five common misconceptions:

  • Misconception #1: Data visualization software does everything for you. Your data visualization software can display whatever info you want to populate it with—sales numbers, profit margins, website clicks and anything and everything in between. That being said, it won’t guide you on what information to pour into it. It won’t tell you when you’re inputting useless data, and it won’t help you pick the right key performance indicators (KPIs) and data points to monitor for your company—those tasks are up to you. That’s why it’s extremely important to set goals and determine your business’s correct KPIs before investing in any type of visualization or dashboard software. Without the right data to work with, you’ll never gain the insight or knowledge your company needs to move forward.
  • Misconception #2: Data visualization software is only used to “pretty up” your data. While data visualization software certainly makes your data easier to digest visually (via graphs, pie charts and other tools), that is not its sole purpose by any means. Visualization software exists to give you context for your data—to show it in relation to past data points, historical trends, numbers in your marketplace and so on, so you can get a comprehensive view of your company’s overall performance. It also makes pertinent information easier to extrapolate, which can improve your efficiency and speed up your workflow.
  • Misconception #3: Data visualization software displays everything in one big graphic. Data visualization software can display many data points at once, but that doesn’t mean you should use it for this purpose. More information isn’t always better. Even in graphic form, if there’s too much data, it can be confusing, overwhelming and not helpful. Often, it’s best to see just one or two points of data in relation to one another, and break the rest up into separate, easy-to-digest graphics.
  • Misconception #4: Data visualization software is not necessary for your business. If you already have an effective method of gathering, organizing and analyzing your data, then it’s understandable if you want to forgo data visualization software. However, if data is a point of contention in your company, then visualization software is probably a wise investment to make. Without data visualization software, you’re essentially guessing when it comes to strategy and overall direction. Without an accurate picture of your performance or place in the marketplace, you may end up making estimates without feeling certain. With data visualization software on your side, however, you and your team can easily see how your business is performing in real time on any given day. This allows you to make the smartest, most business-savvy decisions possible.
  • Misconception #5: Data visualization software is not affordable. When considering data visualization software, it’s important to look beyond the price tag. Also consider the money, time and effort you’ll save over the years as a result of the software, as well as the improved strategic guidance you’ll gain by using it. In the end, your software will pay for itself.

Learn More

Could your company benefit from data visualization software? Then try our free business dashboard platform, or contact the Xeo team today through our online form about a more customized option for your company. We’ll be happy to assist with any questions or needs.