Sankey charts are a type of data visualization that represent flows and the distribution of resources. They were first developed in 1842 by Scottish engineer and physicist, Colonel Alexander Stewart. Sankey charts are often used to show the distribution of resources, the flow of materials, the movement of electricity, and the transfer of funds.
In this article, we will explore the power of Sankey charts, their creation and applications, and how they can be used to better understand complex data sets. Sankey charts are particularly useful for visualizing processes that involve the transfer of resources between different points in a system.

Creating Sankey charts

Creating Sankey charts requires a bit of knowledge of data visualization tools and techniques. There are several software tools that can be used to create Sankey charts, including Microsoft Power BI, Tableau, and Python libraries such as Plotly and Bokeh. Here is an overview of the general steps involved in creating a Sankey chart:
1. Data Preparation: The first step is to organize the data in a format that can be easily visualized in a Sankey diagram. This typically involves creating a table or dataset with the relevant information, including the starting point, the ending point, and the quantity or amount of the resource transferred.
2. Data Mapping: The next step is to map the data to the Sankey chart. This involves assigning a specific color and thickness to each flow, based on the amount of resource transferred. This visual representation helps to convey the relative importance of each flow and the magnitude of the transfers between different points.
3. Designing the Layout: Once the data has been mapped, the chart can be designed to fit the desired layout. This involves arranging the nodes, determining the size of each node, and positioning the flows in a way that makes the chart easy to read and understand.
4. Testing and Refinement: Finally, the chart should be tested and refined to ensure that it accurately represents the data and effectively communicates the intended message. This may involve adjusting the labels, the color scheme, or the layout to make the chart more informative and visually appealing.

Applications of Sankey charts

Sankey charts can be used in a wide range of applications across various industries. Here are a few examples of how Sankey charts can be used:
1. Energy and Environmental Data: Sankey charts can be used to show the distribution of energy, such as electricity, across different sources and destinations. By mapping the resource flows, energy officials can identify inefficiencies and opportunities for improvement.
2. Economic Data: Sankey charts can be used to show the flow of money and resources across different economic sectors. For example, economists can use Sankey charts to illustrate the transfer of funds from government agencies to different industries or the distribution of profits among different stakeholders.
3. Marketing Data: Sankey charts can be used to show the flow of customers across different channels, such as websites, social media, and offline advertising. By mapping the customer journeys, marketers can identify the most effective channels for acquiring new customers and improving customer retention.
4. Supply Chain Data: Finally, Sankey charts can be used to show the flow of goods and materials across different stages of a supply chain. This can help businesses identify bottlenecks and opportunities for optimization, as well as better understand their overall supply chain dynamics.

Conclusion

Sankey charts are a powerful tool for visualizing the distribution of resources, the flow of materials, and the transfer of funds. By mapping data to a Sankey chart, users can better understand complex processes and identify opportunities for improvement. Whether you’re analyzing energy data, economic data, marketing data, or supply chain data, Sankey charts can be a valuable asset in your data visualization toolkit. So, if you’re looking to gain insights into your data sets, try using Sankey charts today.

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