Streamlining Information Flow: A Guide to Creating Sankey Charts for Better Data Visualization

Data visualization is an essential tool for analyzing and presenting complex information effectively. One type of chart that has gained popularity in recent years is the Sankey chart. Sankey charts are a type of flowchart that are used to display the flow of data between different entities or stages. In this article, we will explore how to create Sankey charts and the various applications of these charts in data analysis.

What is a Sankey Chart?

A Sankey chart is a type of flowchart that is used to display the flow of data between different entities or stages. It was introduced by Japanese physicist and engineer named H.G. Sankey in the early 20th century. The chart is named after him because of his contributions to the development of the chart.

Sankey charts have several unique features that make them an ideal tool for data visualization. First, they are easy to read and understand, even for those who are not familiar with the underlying data. Second, they can display complex data relationships and patterns, making it easier to identify trends and patterns. Finally, they can be customized to suit the needs of the analysis, making it possible to focus on specific aspects of the data.

How to Create a Sankey Chart

Creating a Sankey chart can be a simple process when using software like Visio, Gliffy, or SmartDraw. Here are the general steps to create a Sankey chart:

1. Open the software and create a new diagram
2. Select the type ofSankey chart you want to create. There are several types of Sankey charts available, such as source-sink, material flow, and demand-supply
3. Enter the data into the chart. This can be done manually or imported from a spreadsheet or database.
4. Customize the chart by adding shapes, links, and formatting as needed.
5. Save and export the chart as needed.

It is important to note that the specific steps for creating a Sankey chart may vary depending on the software used.

Applications of Sankey Charts

Sankey charts are widely used in various fields, including finance, operations management, and supply chain management. Here are some examples of how Sankey charts can be used in data analysis:

1. Identifying Trends and Patterns: Sankey charts can be used to identify trends and patterns in data, such as the flow of goods or information between different entities. This can help in identifying areas where improvements can be made to optimize operations.
2. Analyzing Performance: Sankey charts can be used to track the performance of a business or system, by showing the flow of inputs and outputs. This can help in identifying areas where bottlenecks or inefficiencies exist.
3. Visualizing Complex Data: Sankey charts can be used to visualize complex data, such as supply chain networks or financial transactions. This can help in identifying relationships and connections between different entities.
4. Identifying Source and Sink: Sankey charts can be used to identify sources and sinks of a particular asset, such as raw materials or finished products. This can help in identifying areas where waste or excess can be reduced.

Conclusion

Sankey charts are a powerful tool for data visualization that can help in analyzing and presenting complex data effectively. They are easy to create and customize, and can be used in a variety of applications, such as identifying trends and patterns, analyzing performance, visualizing complex data, and identifying source and sink. By using Sankey charts, data analysts can gain a deeper understanding of their data and make better decisions based on their insights.

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