Sankey charts are graphical representations of flow, used to visualize how a quantity moves between different categories or stages. Developed by the Scottish engineer and physicist, Matthew Pibbey Sankey, in the 1850s, these charts gained popularity for showing energy consumption across various industries. Since then, the versatile Sankey chart has been adopted in diverse fields for analyzing data flow such as economics, finance, health, and even social media. This article delves into understanding the power of Sankey charts, their creation, and various applications.

Creating Sankey Charts

Software Tools

Creating Sankey diagrams can be done using a variety of software tools, ranging from advanced applications like Tableau and PowerBI to free online tools such as GoViz, and even programming libraries like D3.js for developers.

1. Tableau: One of the most popular tools for business analytics, Tableau provides a user-friendly interface for creating visually appealing and interactive Sankey charts with just a few clicks. You can import your data, define sources, flows, and destinations, and customize the look with backgrounds, colors, and labels.

2. MATLAB & Plotly: For those in the research fields, MATLAB excels in data analysis and visualization. Plotly extends its capabilities to include interactive web-based Sankey diagrams, allowing for dynamic interaction and sharing across platforms.

3. Python & Visualization Libraries: Python’s ecosystem offers libraries like NetworkX, Plotly, and Matplotlib for more customized and technical implementations. These libraries provide a deep level of control over every aspect of the chart creation process, from data manipulation to aesthetic customization.

Basic Steps

4. Data Preparation: Collect data showing the source, amount, and destination of the flows. This data often comes in the form of three columns: Source, Destination, and Flow amount.

5. Defining Connections: Map out each flow, associating each row of your data (Source, Destination) with a visual connection (edges) in the Sankey diagram.

6. Color Coding: Assign different colors to different categories or stages to distinguish the flow types visually.

7. Position and Size Adjustment: Adjust the position and size of node labels, and sometimes even node shapes, depending on the complexity of flows and the space available for visualization.

8. Annotating: Add information labels, tooltips, and legends for clarity, aiding users in understanding the chart’s intricacies.

Applications of Sankey Charts

Business Analysis

1. Sales Funnel: Tracks how customers move through different stages of a sales process, helping businesses identify bottlenecks and areas for improvement.

2. Supply Chain Management: Visualizes the journey of goods from procurement to delivery, helping companies optimize logistics and inventory management.

3. Customer Journey Mapping: Tracks user interactions with a product or service, aiding in product development and enhancing user experience.

Environmental Science

1. Carbon Footprint Analysis: Traces carbon emissions from various sources to destinations, guiding policies and practices towards more sustainable solutions.

2. Water Resource Management: Tracks water flow across different sectors like agriculture, industry, and domestic use, aiding in efficient resource allocation and conservation efforts.

Social Sciences

1. Economic Flow Graphs: Helps in analyzing the distribution of goods, services, and money across different economic sectors, informing policy decisions and economic planning.

2. Societal Cohesion Analysis: Tracks the flow of information, education, and cultural influences, providing insights into societal development and change.

3. Health Economics: Analyzes the flow of resources such as healthcare funding, patient flows, or treatment resources across healthcare facilities, optimizing resource allocation.

Conclusion

Sankey charts are a powerful tool for any organization or researcher seeking clarity and context in data flow analysis. With the ability to easily convey complex data relationships, they simplify understanding across fields from business and economics to environmental science and social studies. Whether used for decision-making, optimizing processes, or educating stakeholders, the dynamic and insightful visual presentation of Sankey charts remains unparalleled in its precision and adaptability to diverse data landscapes.

By leveraging the right tools and following a structured approach to data preparation and visualization, users can uncover and communicate key insights in their data, making an informed decision process that aligns with the goals of their projects or initiatives.

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