From Interaction to Insight: The Power of Interactive Data VisualizationABERDEEN

GROUP

Introduction1

The tried and true method of static data analysis is in fact tired and lacking. Analytical technology has evolved, and many organizations have adopted tools

that enable interactive data visualization and ad-hoc analysis.

This eBook will illustrate the type of data discovery achieved through interactive visualization

tools. Along the way, we’ll show you the advantages of going beyond the static presentation of

information and reveal the kinds of insights that can be generated when users embrace

ad hoc analysis.

The Legacy Approach to Analytics No Longer Works2The age-old process of deriving analytical insight from static data simply isn’t up to snuff anymore.

In its 2015 Business Analytics survey, Aberdeen Group identified 370 organizations that currently use a

legacy approach.

Business Intelligence (BI) users in these organizations reported lackluster results across a number of

metrics. For example, they were only able to obtain critical information within the decision window

63% of the time. Less than half of static BI users were satisfied with the relevance of the information

delivered to them. A mere quarter were satisfied with overall data access or are actively engaged with

analytical tools.

Figure 1: Users Share their Disappointment with the Legacy Approach to Analytics

Frequency of access to

timely information

63%

40%

27% 27%

100%

80%

60%

40%

20%

% users satisfied with relevance of analytical

capabilities

Using Legacy Reporting / Dashboards

% users satisfied with access to data needed to support

decisions

% users who are actively engaged with analytical

tools

The Impact of Interactive Visualization 3Interactive visualization allows users to obtain information within the decision window 17%

more frequently. This helps decision makers avoid the dangers of using hunches and guesses in

time-sensitive situations. With interactive data visualization capabilities, for example, users

generate insights that drive better decisions.

Organizations that have adopted interactive visualization tool have:

35% more users per capita

who are satisfied with the

relevance of their

analytical capabilities

56% more users per capita

who are satisfied with

their overall

data access

nearly 2xas many users per capita

who are actively

engaged with

analytical tools

The Impact of Interactive Visualization4Can static visualizations truly show the whole picture? What if users were no longer limited to static data formats? What if they could manipulate charts

and incorporate additional information into them? With interactive data visualization capabilities,

for example, users would be able to turn Figure 1 into Figure 2, which compares the performance

of interactive visualization users across the same measures we just examined for legacy BI users.

Findings like those seen in Figure 2 make analysts want to ask more questions:

What other data is lying behind the chart? Who are these users? Where can they be found?

What kind of analytical cultures are they operating in?

Figure 2: Interactive Visualization Drives a Stronger User Experience

80%

60%

40%

20%

0%Frequency of

access totimely information

74%

74%

42%50%

63%

40%

27% 27%

% users satisfied with relevance of analytical

capabilities

% users satisfied with access to data needed to support

decisions

% users who are actively engaged with analytical

tools

Using Interactive Visualization Using Legacy Reporting / Dashboards

Strengthening Analytical Cultures 5

Aberdeen expects these activity numbers to continue to rise in the near future, especially in

those organizations with interactive visualization tools. Enabling ad-hoc analysis is not as

difficult as it once was. The latest evolution of tools offers high ease-of-use, so individuals of

wide-ranging analytical ability across job roles can optimally engage their data.

When analysts reach such a fork in the road, they pull in new data to expand their analysis.

Using the same data cut as Figure 2, Aberdeen compared the pervasiveness of analytical

activity in both departments with interactive visualization tools and those without. (Figure 3).

We found that, throughout the organization, interactive capabilities support a stronger

analytical culture where data-driven decision making is the norm.

Figure 3: Departments with “Strong” or “Highly Pervasive” Analytical Activity

60%

40%

20%

0%Finance Corporate

ManagementSales Marketing Customer

Service

53%47%

42% 40% 40%44%

34%

22%

29%

14%

Using Interactive Visualization Using Legacy Reporting / Dashboards

Join the Creators6

There is a psychological component to data analysis. Some analytical minds like insights handed

to them (usually in a static format), while others prefer to discover insights for themselves.

Aberdeen’s 2015 Mind Map study had BI users place themselves on this consumer-creator

spectrum (Figure 4). There are over three times as many creators out there as consumers.

On top of that, nearly half of all BI users are neutral on the spectrum and have the potential to

become creators if empowered with the right tool. Creators are individuals who understand the

enormous potential that is unlocked when you apply ad-hoc analysis to the decision making

process. The insights they create can deliver value to all corners of the organization.

Figure 4: Consumer - Creator Spectrum

0% 25% 50% 75% 100%

Consumers Neutral Creators12%

48%

40%

7 Join the Creators

There are so many creators out there. So ask yourself: Are you one of them?

Could you become a valuable creator of insight if you only had the right tool?

Past Aberdeen research has shown that creators contribute to stronger

analytical collaboration and insight among BI users

Only 12% of BI users self-identified as pure consumers

Still, overall adoption of interactive visualization tools remains low

at 22% of surveyed organizations

Creators can be found in every line of business and are most prevalent in

corporate management

8 An Analytical Mind is a Terrible Thing to Waste

The same old approach to analytics will yield the same old results.

This eBook highlighted the advantages of enabling analysts to interact with data

and follow the flow of their discovery process. What’s more, with interactive data

visualization capabilities, users overall produce better, more effective analysis,

and the organization can develop a much stronger analytical culture overall.

Organizations still relying on static reports and dashboards should experiment

with an interactive approach to data visualization. Doing so will allow analytical

minds across the organization to make the most of their data and enable anyone

to become a creator of insight, one whose ad hoc analysis can support critical

decisions wherever they arise.