As organizations continue to harness the power of data, the visualization of complex relationships between parameters and variables becomes increasingly crucial. Sankey charts, a type of diagram that uses links and lines to depict the flow of information or data, effectively tackle this challenge by presenting insights in a visual way that supports analysis and decision-making.
Sankey charts first gained traction in the mid-to-late 20th century as a tool for modeling the flows and relationships between the parts of a network. However, with the advent of digital tools and software like Microsoft Visio or even basic data visualization libraries in languages like Python, even the most technologically-savvy individuals can leverage these charts to unlock insights into data-driven projects.
Here’s a closer look at what they are, how they work, and their myriad applications in business and data analytics.
What are Sankey Charts?
Sankey charts, also referred to as flow diagrams or network diagrams, comprise a series of nodes and arcs to represent the flow and movement of data or information within a network. A Sankey chart typically consists of two layers:
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The top layer consists of a series of nodes labeled with the variables related to the flow process, where each node is linked to several links. Every link represents a direction or a flow from one variable to another.
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The bottom layer consists of lines connecting the nodes. Each line represents a flow or a flow direction.
By utilizing these layers, we can see that the input (e.g., A) flows through nodes in an order or direction (e.g., A-B-C) to output (e.g., D), showing us that:
- Variable ‘A’ is entering the process at node 1
- Variable ‘B’ is entering at node 2
- Varible ‘C’ is entering node 3
- Variable ‘D’ is exiting at node 4, with output as the result of the flow.
The nodes, edges, and flow direction play a significant role in explaining the various stages in a process, as well as the flow between the various components. Additionally, the direction of the flow indicates whether the flow is increasing or decreasing (positive or negative direction).
Sankey Charts in Business Analysis
Business analysis is a process that involves using data and information to arrive at better and more effective decisions. Sankey charts serve the same purpose. They provide a visual representation of how data flows, enabling analysts to quickly understand complex relationships and identify trends, even in large datasets.
One of the significant benefits of using Sankey charts in business analysis is their ability to highlight the significant flows by focusing on the critical paths within a data-driven project. These critical paths are lines that convey a high level of importance and show which variables have the greatest flow of data.
In addition, Sankey charts aid in identifying bottlenecks or inefficiencies in the data flow, enabling organizations to optimize their resource allocation, reduce waste and manage complexity more efficiently.
Sankey Chart Creation
Creating a Sankey chart requires the knowledge of basic programming and web development. Fortunately, the plethora of web apps and visualizations like Microsoft Visio can assist you in creating sankey charts without having to build one from scratch.
Tools and Applications
Several online platforms provide free web-based Sankey chart tools, such as:
- Simple Sankey
- SankeyDiagram.net
- SankeyDiagram.io
There are also software solutions for professionals or academic researchers who might require more complex tools and features, which include:
- Flowchart Generator (Sankey Diagrams) by Wix
- Dijkstra (a network visualization software)
Sankey Charts Applications and Use Cases
1. Product Development
In the context of product development, a Sankey chart can be particularly useful when analyzing progress through stages or features of a product. The chart helps stakeholders visualize the different stages of the product’s development cycle and how data flow between these stages.
2. Health Care
In the health care industry, a Sankey chart can highlight the various stages of the diagnostic process that flows through patients. Flowing towards the patient, each stage has a series of nodes that represent the variables involved. Sankey diagrams effectively visualize the flow of information, such as results, test results, and the patient’s condition, linking each node to the other related nodes linked by direction. This visualization clearly shows the relationship between variables and the flow of data.
3. Manufacturing
From a supply chain perspective, a Sankey diagram can summarize the information about the materials and other resources flowing through a manufacturing process or flow, like parts or components. Key variables such as raw materials, production, and distribution are connected by their flow in various directions.
4. Social Media
In the social media industry, a Sankey chart can be employed to show the information, sentiment, and behavior of users or users of a platform. It is especially useful for companies looking to monitor how social media sentiment flows through their brand, competitors, influencers, or the overall audience.
Conclusion
Sankey charts are a powerful tool that can offer significant insights into data-driven projects. They not only provide a visual representation of data flow but help in identifying significant flows and bottlenecks. By leveraging online platforms and software solutions and creating or finding existing Sankey charts, organizations can gain valuable insights from their data and make better decisions more quickly. Whether it’s for product development, healthcare, manufacturing, social media, or any other application, Sankey charts offer a way to analyze and understand complex data relationships in a way that is both engaging and informative.
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