Sankey charts, a type of network diagram, have been gaining popularity among business analysts as an effective visualization tool for exploring complex relationships and dependencies in data. The diagrams are particularly useful in business contexts as they allow analysts to quickly convey nuanced information and relationships between different variables. In this article, we will examine the basics of Sankey charts, their applications, and the key benefits they provide for business analysts.
What is Sankey Chart?
A Sankey chart is a type of network diagram that is similar to a bar graph. It consists of a series of flow lines between different nodes, each corresponding to a specific variable. The chart shows the direction of flow (from left to right or vice versa) along the flow lines, as well as the total volume of flow in each node.
For example, the diagram below shows a Sankey chart illustrating the flow of customer interactions between different departments in a company’s marketing and sales team.
The diagram shows that sales employees have a high volume of customer interactions, and that marketing employees are involved more frequently at the beginning and ending of customer interactions, but often have lower volumes. This information can be useful for business analysts to identify areas of opportunity and potential resource allocation.
Application of Sankey Charts
The application of Sankey charts in business analysis can range from exploring relationships within the company to exploring relationships between different entities in the market. Here are three key applications:
1. Exploring Relationships Between Variables: Sankey charts are useful for exploring the relationships between variables in a dataset. By displaying the flow direction and total volume of each node, the analyst can quickly identify the strength and direction of the relationship between different variables.
2. Analyzing Complex Data: Sankey charts can be used to analyze the complexity of large datasets, by breaking down the data into smaller, more manageable units. By visualizing the flow of information between different variables, analysts can identify areas of overlap and gaps, and better understand the context behind complex data sets.
3. Identifying Opportunity Areas: By analyzing the flow of information in a Sankey chart, analysts can identify areas of opportunity in their business, such as higher volume sales or better customer retention. This can inform resource allocation strategies, improve service delivery, or identify potential growth opportunities.
Benefits of Sankey Charts
Sankey charts have several key benefits for business analysts:
1. Quick and Visual Understanding: Sankey charts are quick and visual, allowing analysts to quickly gain insight into complex data.
2. Comprehensive Data Analysis: Sankey charts provide a comprehensive view of the relationships in the data, allowing analysts to identify patterns and trends more easily than with traditional data analysis techniques.
3. Better Decision Making: By quickly identifying key strengths and weaknesses in the data, Sankey charts allow business analysts to make more informed decisions.
Conclusion
Sankey charts are a useful visual tool for exploring complex relationships and dependencies in data. By breaking down data into smaller, more manageable units, they allow analysts to identify areas of opportunity and better understand the context behind complex data sets. With their ability to quickly and comprehensively analyze data, Sankey charts provide a valuable tool for business analysts seeking to improve their decision-making process.

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.