Timeless Business Charts

Topics: Bar chart, Chart, Time Pages: 6 (970 words) Published: September 27, 2013
Timeless Business Charts
Copyright 2013 Vishnuvarthanan Moorthy
Data speaks thousand words and Charts speak more than that! Are you one among them who are interested in constructing fascinating charts, and do you believe management decisions can be done easily with few interpretation of charts, then you can spend some “time” to read this… Any activity/motion/process in this world not only consumes movement or energy, but they also consume time. Traditionally we have been ignoring time, time and again. Unless we work on trend or control charts we don’t represent time, instead we work to represent mostly the volume or results in our charts without giving time scale to it. No result can be produced without time and time always moves ahead and never comes back. Many a time it’s not a standard practice for us to attach or provide details of time period of data along with any chart, and we require some manger with common sense to ask the question, which time period it represents and what is the trend in this time period. If we look at any output in chart, it’s important to ask the time it consumed/it represents in a chart. A better way of representing is, every chart shall have time angle to it (only in trend/control charts and some or with timeline). Today we miss time as an indicator in our charts, and occasionally people represent time in Chart title. Why it’s so important? It’s important to understand the movement of energy in a space along with time space, to make a decision which is applicable to the nearest timeline. It helps us to understand the seasonal variation (time space) of outcome and the current condition/latest time period of data. Our decisions are not made for past, they are for future and in order to ensure, it’s important to understand that are we looking at something which is nearer, if not how much old the data in time space, can we rely on it, all these are possible only with understanding of time space. For example, we take an IT companies revenue in last six month and it’s presented to the board of directors and they are asked to understand, which technology they are strong in terms of revenue making…

Revenue Share - 2013
2% 1%

ERP - Oracle

8%

23%

ERP - SAP
ERP - Peoplesoft
10%

49%

CRM Package
Java

4%

3%

.Net
C++
Fortran

Revenue Share Contributors
300,000
250,000

82.29
72.45

200,000
150,000
100,000
50,000
0

49.19

90.34

93.92 96.60

100
98.75 100.00
90
80
70
60
50
40
30
20
10
0

Individual
Percentage

From this they understand that Java and ERP – Oracle is the major revenue contributing technologies in the period of Apr –Sep 13. As the per the second chart it’s clear that 72.45 cumulative percentage of revenue comes only from these 2 technologies.

However any wise man, would like to ask the presenter, where is the clarity in time stamp and how the revenue growth with respect to time space. So if we look at them little closely, by splitting the data by Apr-Jun and Jul –Sep, what we see is down below charts,

Time Period wise Revenue Share
200,000
150,000
100,000
50,000
0

Revenue in $ (Apr-Jun)

Revenue in $ (Jul-Sep)

Revenue in Apr-Jun
200,000
180,000
160,000
140,000
120,000
100,000
80,000
60,000
40,000
20,000
0

100
90
80
70
60
50
40
30
20
10
0

In the period Apr-Jun again Java and Oracle did contribute 80%

Revenue in $ (Apr-Jun)
Percentage

Revenue in Jul-Sep
120,000
100,000
80,000
60,000
40,000
20,000
0

100
90
80
70
60
50
40
30
20
10
0

Revenue in $ (Jul-Sep)
Percentage

In the Period Jul – Sep, we have a surprise that SAP is in top along with Java. Similarly overall revenue is also reduced in the second period.
Hence by looking at the first pie chart and cumulative chart (custom Pareto) if the Board of directors takes a decision, will it represent the nearest timeline?! Can we take a decision which truly represents our current condition? The sample...
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