Dashboards as a Type of BI Application

This is the continuation of the transcript of a Webinar hosted by InetSoft on the topic of "Building a Winning Dashboard" The speaker is Abhishek Gupta, sales engineer at InetSoft.

So, let's move onto dashboards as a type of BI application, and what I want to do is, I want to start with misconceptions. I want to tackle that one first, because that really troubles me when I hear it. Here's the misconception. Dashboards are just making data flashy. Some people seem to have to believe that data is boring, and that in order to make people pay attention, we need to load them into flashy graphics, things that move around, and with big dials.

There is definitely importance to the look of a dashboard, but what I want to stress in the beginning is that dashboards are not just making data flashy. The goal is not to design things that are interesting and attractive. The goal is to really design things that solve real business problems.

Now, in our case these problems are information problems, and beauty and aesthetics, these are just the byproduct of a great design, but they are not the goal. Dashboards are there to make our life easier. They are supposed to help you become better in what you do, and they are unique to solve problems that other forms reporting simply cannot.

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Now in the simplest terms, dashboards present the most important information needed to achieve business objectives, and usually at a glance. Not everything, only what is critical. Not because data is more informative, but because that data plays a direct part in helping you achieve that business objective.

Now, what we want to do is not make screens or spread out information over a 100 pages, but display it on a single screen It's purpose is to give you actually more information quickly at a glance. I often hear people who say dashboards are really for executives and managers, but we feel that dashboards can be for everyone, for the knowledge worker.

The power you can have from this technolgoy is that the dashboards can even help the average Joe's understanding of data even when there are large data sets and complex relationships. Now, here is an example of a dashboard that we have in mind, and you can see many other live samples in our samples gallery.

What is important to remember is that dashboards are unique in design and purposely built to show you to most important and relevant data to your specific world. In the past, they would be presented in the confines of a computer screen or a printed page. Today, they are presented on many devices including smart phones and tablets, of course, but regardless you always want to have it available in a single screen, in a single view.

Now this is because most of us are very busy people, and because it's very difficult to get a comprehensive view of your whole business, because we have limited time and short term memory, difficulties that make it very hard for us to remember what we saw after we flip to the next page. Nothing else does the job that well, and that's pretty compelling, so before we talk about the creation of winning dashboards, let's first understand why dashboards can work so well.

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How the Brain Processes Data Visualizations

It all starts with the way our brain works. Our brain is a great machine, great at recognizing patterns, but it is not really good when it comes to storing numbers, and I will give you an example to prove that. So, here is the example. You can see here three rows of data across 12 months. Any company that sells anything in more than two regions is going to routinely create reports that have more data than this.

The brain processes data visualizations through a complex interplay of perception, cognition, and interpretation, making these visual tools powerful for understanding and communicating information. When we first encounter a data visualization, the visual cortex—located at the back of the brain—rapidly processes basic visual elements such as lines, shapes, colors, and patterns. This initial stage of processing is crucial as it allows us to quickly discern different aspects of the visualization, such as the overall structure, the presence of trends, or the distinction between various categories. This rapid visual processing enables us to grasp the general layout and key features of the data before we consciously interpret its meaning.

Following this initial visual processing, the brain engages higher cognitive functions to decode the information presented in the visualization. The parietal lobe, which is involved in spatial reasoning and attention, plays a significant role here. It helps us understand the spatial relationships between elements in the visualization, such as the relative sizes of bars in a bar chart or the proximity of data points in a scatter plot. This spatial understanding is essential for interpreting the data correctly, as it allows us to make sense of the relationships and patterns that the visualization is meant to convey.

As we delve deeper into the visualization, the brain's prefrontal cortex becomes more active, particularly when we engage in tasks that require analysis, comparison, or decision-making based on the visualized data. This part of the brain is responsible for higher-order thinking processes, including reasoning, problem-solving, and planning. When interpreting a complex data visualization, the prefrontal cortex helps us integrate the visual information with our existing knowledge and experiences, allowing us to draw conclusions, identify trends, and make informed decisions. This cognitive integration is what makes data visualizations such effective tools for communication—they not only present information visually but also facilitate deeper understanding and insight.

In addition to cognitive processing, data visualizations also tap into the brain's emotional responses, which can enhance our engagement and retention of information. The amygdala, a part of the brain involved in processing emotions, can be triggered by certain visual elements such as color or movement. For example, a bright red color in a heat map may evoke a sense of urgency or importance, directing our attention to that area of the visualization. Similarly, the use of visually appealing or aesthetically pleasing designs can make the information more memorable, as the brain tends to retain information that is associated with strong emotional responses.

Ultimately, the brain's ability to process data visualizations is a testament to its remarkable capacity to handle complex information. By leveraging both the rapid processing of visual stimuli and the slower, more deliberate processes of cognitive reasoning and emotional engagement, data visualizations allow us to quickly and effectively understand large amounts of data. This combination of speed, comprehension, and emotional impact is what makes data visualizations so powerful in fields ranging from business analytics to scientific research, where the ability to interpret and act on data quickly can be crucial.

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