Sankey charts are a data visualization tool that are often used in Business Intelligence (BI) and data analysis to represent data flows between various entities in a network graph. They have a unique capability to show the relative flow of data through various paths in a network, which can provide valuable insights into business processes.
In today\’s digital world, businesses are moving towards more efficient and streamlined processes. By optimizing all the data flow through business processes, organizations can increase productivity and streamline their operations. One effective way to achieve this is by using the insight provided by Sankey charts.
In this article, we will discuss the basics of Sankey charts, their applications in various industries, and ways to improve business processes. We will also address the technical aspects of Sankey chart creation and how they can be used to optimize business efficiency.
Definition of Sankey Chart
Sankey charts are a type of network diagram that illustrates the flow of flow within a network in a diagram. It is a graph that displays the direction and amount of flow from one location to another. The diagrams can be drawn by hand or using software such as Microsoft Power BI or Tableau, depending on the complexity of the network.

Applications of Sankey Chart

Businesses use Sankey charts in various applications. Here are some common examples:

1. Process Mapping: Sankey charts can help in mapping out the different steps and processes involved in a business process. This can include everything from procurement to production, distribution, and marketing.
2. Data Analysis: Sankey charts can be used to analyze business data and identify patterns and correlations between the different components of the data flow network. This information can then be used to optimize business processes.
3. Business Intelligence: Sankey charts are commonly used in the business intelligence (BI) sector. Companies visualize business intelligence and operational data to better understand their business processes and strategic goals.
4. Supply Chain Management: Sankey charts can help businesses track and optimize the supply chain, including the movement of goods from raw materials, to raw materials, and from final goods to customers.

How Sankey Charts Work

Sankey charts can be defined as a network diagram that uses relative values to show the flow of quantities through various paths in a network (Wright and Niedzwiecki, 2015). The diagrams show the direction and amount of flow from one location to another. A network is a group of elements (nodes) interlaced together with links (edges).

To draw a Sankey chart, the following steps must be followed:

1. Identify the nodes and edges: Sankey charts use nodes (objects) and edges to represent the entities and relationships in a network. Identify the different entities in your network and connect them with edges.
2. Assign relative values to each component: Assign a relative value that represents the amount of flow through each component. For instance, if you represent the amount of materials on a supply chain, the value will be on the x-axis.
3. Draw and annotate the graph:
   • Draw the flow of data through each component on a flow map
   • Use fill and stroke colors for each component to easily identify nodes and edges
   • Add labels and names to each component to explain their data flow
4. Annotate edges: Annotate the edges with the direction and the amount of flow. Use arrows to show direction and the edge data to describe its flow.

Tips for Visualizing Sankey Charts

To make your Sankey chart more accessible and useful, there are some tips to keep in mind:

1. Understand and explain the network: Show the flow of data in a simple, visual way. It is easy to overuse colors and fill and stroke colors that may not add value to your graph.
2. Choose the right data format: Data formats can significantly change the clarity of the data flow. For example, using a stacked or a pie chart may be better than using a bar chart.
3. Label each element properly: Ensure each element in your graph has a label. This will make it easier for viewers to understand the flow and the data you are trying to convey.

Conclusion

In conclusion, Sankey charts are a powerful tool for analyzing and optimizing business processes. Using the insights provided by Sankey charts can lead to improved efficiency and success in business operations. By following the basic steps and using the right tips for visualization, you can create Sankey charts with valuable insights to help your business operations run efficiently and with precision.

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.