Sankey chart creation and applications are gaining popularity in businesses and organizations for several reasons. One of the reasons is its ability to provide a clear and visually intuitive view of complex data. These charts are particularly useful for analyzing network structures, such as supply chain networks, financial networks, or organizational networks. In this article, we will explore the creation and applications of Sankey charts.
Creating a Sankey chart:
When creating a Sankey chart, follow these steps to ensure the accuracy and clarity of your chart. First, decide on the data you want to visualize. Use a spreadsheet to organize the necessary data, and create a layout that allows an easy readout. Next, create a hierarchy of nodes or sources that represent the different entities in your network. Assign weights to each node, representing the flows between them. Finally, group the nodes or sources in a cluster, representing the entity involved in carrying the flow.
Applications of Sankey charts:
Sankey charts are widely used in the following areas:
Economic: These charts can be used to visualize the supply chain networks of different companies or industries by highlighting the key nodes involved in the flow of goods and services. For example, a Sankey chart can help an organization understand the relationships between its supply chain partners, allowing it to make more informed decisions about purchasing and production.
Financial: Sankey charts can be used to visualize financial networks, such as supply chain networks between different suppliers and customers. For example, a Sankey chart can help an organization understand the relationship between its suppliers and customers, allowing it to optimize its purchasing and production strategies.
Organizational: Sankey charts can be used to visualize organizational networks, such as the flow of information and resources within an organization. For example, these charts can help management understand the structure of a company, identify bottlenecks, and optimize resource allocation.
Understanding Sankey charts:
Sankey charts are useful for understanding complex data in an intuitive and easy-to-understand way. Here are some key points to consider:
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Nodes are organized hierarchically, allowing you to visualize different levels of entities.
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Flow is represented by arrow directions; positive flow indicates that an entity is transferring goods, services, or information to another entity, while negative flow indicates the reverse.
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Weighting of nodes makes it easy to understand the relative strength and importance of each entity.
Conclusion:
Sankey charts are a powerful tool for understanding and analyzing complex networks, including supply chain networks, financial networks, and organizational networks. By following the steps outlined in this article, businesses and organizations can easily create and understand Sankey charts that provide clear and intuitive insights into the structure and flow of complex data. With their wide range of applications and ease of use, Sankey charts are essential tools for any organization looking to improve its decision-making processes.
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