Introduction:
Sankey charts is a graphical representation used to visualize complex data flow. It represents the relationship and interactions between different components or systems by plotting edges between them. In simpler words, it is a chart used for visualizing the flow of information from one point to another. In this article, we will be learning about Sankey chart creation and applications in business analytics.
What is a Sankey Chart?

A Sankey chart is a type of diagram used to represent data flow in a system, organization, or process. It is a flow chart that visualizes the relationships and flows between different entities. The diagram is mainly used to visualize complex data flows, such as flow of funds, information sharing, and resource allocation within an organization. It can also be used to represent information flow between components in an IT system or supply chain, among others.
How to create a Sankey Chart

Creating a sankey chart is relatively easy, and there are many online tools and software available that can be used to create it. For beginners, it is recommended to start with a template that includes nodes and link names, then add data to the chart by labeling the nodes and writing them between the links. Additionally, you can use color-coding to represent the sources of flow and sinks of data.
Applications of Sankey Chart in Business Analytics

Sankey charts are used in various areas of business analytics to understand and analyze complex data flows. It helps in understanding the relationships between different components of the system or process, and how they flow and interact with each other. Some of the applications of sankey charts in business analytics include:

1. IT systems: In IT systems, sankey charts can be used to represent the flow of data from application to application and from system to system to identify bottlenecks and optimize resource allocation.

2. Supply chain management: These charts are used to show the flow of goods and services among suppliers, manufacturers, distributors, and retailers in relation to the flow of inventory and sales across the supply chain.

3. Operations and logistics: They can also be used in operations and logistics to analyze the flow of resources, materials, and labor, among other things.

Benefits of Using Sankey Charts

Using sankey charts has several benefits in business analytics, including:

1. Improved data visualization: It helps to gain insights that can be hard to get from traditional data visualization methods.

2. Faster analysis and decision-making: It enables faster analysis and decision-making by providing accurate and up-to-date data visual representations.

3. Improved collaboration: It enhances collaboration among team members by providing clear visual representations of data flow.

Conclusion:

Sankey charts are a powerful tool for visualizing complex data flow, and they can be used in various business analytics applications. They help to gain insights that traditional data visualization methods often miss, make analysis and decision-making faster, and facilitate better collaboration among team members. With the right tools and practice, anyone can create and interpret an effective sankey chart for their business analytics needs.

SankeyMaster

SankeyMaster is your go-to tool for creating complex Sankey charts . Easily enter data and create Sankey charts that accurately reveal intricate data relationships.