This is a short video which explains how and why to create a systems map
from the connections made between indicators at GINManila2012
Saturday, October 6, 2012
Saturday, June 23, 2012
Frequently Used Charts in Business
Charts are used
for creating visual explanation of data and presenting business
information in a simple and easy to understand way. When preparing
business reports or business presentations the first step is
deciding on the format of the charts you are going to use. You
should work with those charts which can communicate the message in
the most effective way. When deciding on the charts you are going
to use you need to take into consideration the business
information you need to deliver, the audience for the presentation
or the business report users. Charts are tools used to simplify
reporting and they should be appropriate to clearly communicate the
message. Try to avoid using complex charts which would be
difficult to understand by the user. For most business reports and
charts when the users see the chart they should be able to
understand the message in a few seconds. If you are creating a
chart and your chart is getting complex for the user you might
want to consider using another chart, more than one chart or maybe
using a table instead of a chart to communicate your message.
Frequently Used Charts in Business:
Line Chart
Line Chart is
frequently used in business reporting to show trends over some
period of time. For example, you can use line chart to show the
trend in revenue for your business. Line Charts are also used for
more than one variable and are good tools for comparing two or
more trends over the same period of time. For example, you can use
Line Chart to show and compare revenue for three products (Product
A, Product B and Product C) over same period of time or you can
compare the Advertising Cost and Product Revenue over the same
period of time.
Column Chart
Column
Chart is frequently
used in business reporting to show trends over some period of time
however not for large ranges. Column Chart is especially effective
when you want to show trend or make a comparison over small ranges
for example few months, quarters or years. In these cases Column
Chart in many cases is more effective than the Line Chart. You can
use the Column Chart to how one variable or show and compare more
than one variable. For example, you can use Column Chart to show
the revenue over the last five years or compare revenue and profit
for the last five years. Histogram Chart is a special type
of Column Chart. Pareto Chart is combination chart of
Column Chart and Line Chart.
Bar Chart
Bar
Chart is similar to Column Chart ("horizontal column chart"). Bar
Charts are very useful for making comparisons and in some cases
they have advantage over the Column Chart because Bar Charts can
visually show the variables and titles in more effective way. Bar
Charts can be used to show trends over time in a similar way the
Column Charts are used but also Bar Charts can be used to make a
comparison between variables at one point in time (similar
application to Pie Chart)
Area
Chart
Area Chart has a similar application
to the Line Chart and in most cases you can use either Area Chart
or the Line Chart to show trends. The advantage of the Area Chart
compared to the Line Chart is that sometimes users can recognize
trends faster and Area Charts can be visually more effective.
However when you want to compare many variables Area Charts can be
difficult to read so you might consider using Line Charts instead
of Area Charts.
XY
Chart
XY Chart or Scatter Chart is used for
showing relationships between variables. The X and Y axes use set
of variables and the XY Chart visually shows if there is a
relationship and how strong is the relationship between the
variables. For example, the Scatter Chart can show the
relationship between number of operators in a call center and
customer waiting time. Another example is using the Scatter Chart
to show the relationship between advertising expenditures and
number of new customers.
Radar
Chart
Radar Chart is used for making
comparison of different categories on the same scale. Another
application of the Radar Chart is for performing a gap analysis
(comparing actual and desired / target values).
Combination
Chart
Combination Charts use more than one
chart type. For example, the Pareto Chart uses both the line chart
type and the column chart type together. Combinations Charts can
be very effective when you want to show two different variables or
two different measures for the same variable.
Pie
Chart
Pie Chart is
used for making comparisons and showing proportions. For example,
Pie Chart is used for showing market share of different businesses
or products. Pie Charts are very effective when you visually
compare a few categories but Pie Charts are not used for comparing
many categories. When you have many categories you might consider
using a Bar Chart instead of Pie Chart.
Histogram
Chart
Histogram Chart
is used for summarizing information from a data which was
collected over some period of time and visually showing the
frequency distribution. The advantage of the Histogram Chart is
the ability to visually display large data in a simple to
understand way. The Histogram Chart shows the variation and shape
of the frequency distribution foe some period of time.
Pareto
Chart
Pareto Chart is
based on the
Pareto Principle and it is used for making
comparison / ranking different categories. Pareto Chart is similar
to the Histogram Chart but Pareto Chart is a Combination Chart and
has additional Line Chart showing the cumulative percentages. The
Pareto Chart is used for identifying major problems and
opportunities and helps business users to focus their efforts on
the greatest potential for improving the business.
Source: http://www.mrdashboard.com/BusinessChart.html
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