Sankey charts are a type of flow diagram that are used to show the flow of data or information from one source to another. They are often used to illustrate the relationships between variables, such as the flow of revenue from one source to another or the flow of goods from one location to another. Sankey charts can be created using software such as Microsoft Excel or PowerPoint, or using specialized software such as Grafana. This article will provide a visual guide to creating and understanding Sankey charts, as well as their applications in decision-making.
What is a Sankey chart?
Sankey charts are created using nodes and arrows. Nodes represent the starting or ending point of the data flow, while arrows represent the direction of the flow. Each node can have multiple outgoing or incoming arrows, and each arrow can represent a different piece of data. For example, one node could represent a source and multiple arrows could represent the different pieces of information that flow into that source.
The use of Sankey charts makes it easy to visualize the relationships between variables by showing the direction and flow of data. For example, in a Sankey chart for a company’s sales and marketing departments, the arrows could represent the flow of revenue to the marketing department and from the marketing department back to the sales department. This allows the audience to easily see the flow of information and identify areas where more resources are being used.
How to create a Sankey chart
Creating a Sankey chart is relatively simple when you understand the basics. First, you will need to choose your nodes and arrows, which should reflect the relationships between variables in your data. For example, if you are using Sankey charts to illustrate the flow of water from a river to a city, your nodes would be the rivers and the cities, and your arrows would represent the flow of water. The number and direction of arrows should reflect the actual flow of water, with outgoing arrows representing where water flows out and incoming arrows representing where water flows in.
Once you have your nodes and arrows, you will need to use a flow chart or diagram software to create the chart. There are many software options available, including Microsoft Excel, Google Drawings, and Grafana, a platform for drawing visualizations. Choose a software that allows you to customize the appearance of your Sankey diagram, such as adding colors or legend information.
Example of a Sankey diagram
Here is an example of a Sankey diagram for a company’s sales and marketing departments:
+----------------+------+
| Source: Sales |
+-----------------|
| City A | |
| City B, C | |
+-----------------+
| Cities | |
+-----------------+-------+
| Marketing | |
+-----------------+---+
| Marketing | |
+-----------------+
In this example, the nodes represent the company’s sales and marketing departments. The arrows represent the flow of revenue to the marketing department and from the marketing department back to the sales department. The color is darkened on the lines to highlight the direction of the flow.
Applications of Sankey charts
Sankey charts are useful in decision-making because they can help identify trends and patterns in data. For example, a company might use a Sankey diagram to illustrate the flow of orders from a production department to the sales department. This diagram could show that the flow is not efficient and that the company is not properly allocating resources. In this case, the company could then review the flow of orders and see where the bottleneck is, and work to improve the flow. This is just one example of the many possible applications for Sankey charts.
Conclusion
Sankey charts are a powerful tool for visualizing the flow of data and can help to identify trends and patterns in data. With ease of use and customization options, they are a simple yet effective way to illustrate the relationships between variables. Whether you are using them for decision-making or for research, Sankey charts can help you to gain a better understanding of your data and make informed decisions based on that understanding.
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