In today’s business world, data analysis is a crucial component of successful decision-making. With the increasing use of Sankey charts in data visualization, data analysts and business decision-makers can easily transform complex data into strategic insights. In this article, we will explore the power of Sankey charts and how they can transform business data into actionable insights.
What is a Sankey Chart?
A Sankey chart is a type of network diagram that displays flow of concepts or substance, such as money, information, or materials. It combines flow rates with the physical entities being moved, making it a powerful tool for visualizing and analyzing business data. In a Sankey chart, each node represents a concept or substance, and each line represents the flow associated with that concept. The intensity of the line represents the flow rate of the substance.
Applications of Sankey Charts
Sankey charts can be applied in various areas of business, including finance, supply chain management, marketing, and sales. In finance, for instance, a Sankey chart can be used to visualize the movement of money through a company’s processes, such as financing, accounting, and profit and loss. In supply chain management, a Sankey chart can be used to visualize the movement of materials, such as raw materials and finished goods, between suppliers and customers.
Moreover, Sankey charts can be utilized in marketing and sales to visualize the flow of customer interactions, product promotions, and sales. This involves drawing flow lines between customers, products, and sales channels, and quantifying the average flow rate of each product across all sales channels.
Creating Sankey Charts
Creating a Sankey chart requires selecting nodes and lines based on the data being analyzed. Nodes represent concepts or substances, and the strength of each line represents the flow rate of the substance. In Sankey charts, data visualization software such as Microsoft Power BI or Tableau are commonly used to create complex Sankey charts. However, for the sake of brevity, we will demonstrate how to create a simple Sankey chart using Excel.
How to Create a Simple Sankey Chart using Excel
Microsoft Excel is an excellent tool for creating simple Sankey charts. Once you have chosen a data source, follow these steps to create a simple Sankey chart using Excel:
1. Open Microsoft Excel and create a new sheet or select an existing one.
2. Enter the data into each column of the sheet. The first column should contain the names of the concepts or substances being analyzed, and the second column the flow rate.
3. Make sure the number format of the flow rates uses dollars or other currency units. Ensure the units in the flow rate range are consistent throughout the column.
4. Use a chart to display the flow rates across the sheets. Use the Sankey chart format to display the flow rates associated with each concept or substance.
5. Customize the chart by adjusting the line and color settings. Use a bright colors to highlight the significant flow rates and the darker colors to show the less significant flow rates. Use thicker lines on the nodes to indicate the heavier flows.
Conclusion
In conclusion, Sankey charts have become an essential tool for business data visualization, data analysis and strategic decision-making. They bring complex data to life, making it easier for users to visualize and understand the flow of ideas, information, or resources through their businesses. With the power of Sankey charts, businesses can transform data into strategic insights, and decision-makers can make informed decisions using the evidence-based data. So, explore the power of Sankey charts, and start generating actionable insights for your business.
SankeyMaster
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