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BI Dashboard Best Practices And The Power Of Knowledge In The Digital Age

BI Dashboard Best Practices

If it is often said that knowledge is equal to power. While this statement cannot be universally applied (and in fact is somewhat cliché), it reflects an important truth regarding today’s digital world: Consumer values are evolving.

Data is more readily available than ever before. Communication methods are changing. Success in today’s technology driven world directly correlates to the quantity and quality of information possessed… that of the client, the competitor and the market. Informed decision making ultimately leads to greater access, opportunities and technological advancement. The difference between renewable success and ultimate failure is a fine line that most ambitious businesses are willing walk. Very often, the most important factor in determining success comes down to who engages in factual and informed decision making and who follows hunches and suppositions.

The basis for factual and informed decision making is real-time data analysis. It is the by-product of both human and financial capital investment and takes the form of strategic business intelligence. From measuring budgetary efficiency, to determining market trends, to understanding consumers real-time data analysis allows digital age businesses to easily identify the key performance indicators driving today’s markets.

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What is one strategic business intelligence mechanism that is absolutely necessary in the digital age? Business Intelligence (BI) dashboards. Let’s take a look!

BI Dashboards – A Digital Age Analysis Tool

BI dashboard example on tablet

Advanced analytical and business intelligence tools come in all shapes and sizes. From data mining, to spreadsheets, to local information systems each available data solution
plays a different role in maximizing value creation. BI dashboards cohesively organize data and alleviate potential clutter that can arise when applying advanced intelligence tools. Using highly visual data representations and tools, business intelligence dashboards produce graphs, charts and other visualization instruments that allow data to be easily interpreted and analyzed.

Business dashboards are extremely costeffective by minimizing the potential for human error and streamlining the decisionmaking processes dependent on data interpretation. Additionally, most BI dashboards are fully customizable, and data can be displayed in multiple arrangements. Further dashboard benefits include:

Trend Identification: Dashboards allow businesses to identify and activate positive trends while simultaneously isolating and correcting negative trends.

Increased Efficiency: Decision making should be based on available data. Dashboards improve efficiency by providing data of the highest quality.

Self Service Tools: Modern dashboard software can be implemented developerfree and shared quickly, providing agility and mobility that traditional data processes cannot match.

The purpose of a dashboard is to inform its audience… and it is a purpose we share here at datapine. As dashboards are part of the continuously evolving landscape of technological data solutions, it is important to shed light on the standard best practices for their use and implementation. Remember, knowledge is power… and power will present access, opportunities and technological advancement for your business. Let’s take a look at some BI dashboard best practices.

Our Top 5 BI Dashboard Best Practices

The importance of efficient and effective data dashboard implementation cannot be ignored it can make or break your decision making processes. According to Stephen Few, one of the world’s most distinguished data perception and analysis experts, a data dashboard is “a visual display of the most important information needed to achieve one or more objectives; consolidated and arranged on a single screen so the information can be monitored at a glance.”

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Data dashboard implementation, if done correctly and pragmatically, will render single data reports obsolete. It will allow for streamlined consolidation and enhanced visualization of any business’ most pertinent data.

The following 5 BI dashboard best practices will help get you started:

1) Know Your Dashboards

BI dashboard example

Before selecting a specific dashboard design, it is important to know what types of traditional dashboards are available. Once you understand each type, you can make an informed decision regarding the purpose and implementation of your dashboard. Remember, informed decision making for maximum ROI is the whole point!

Strategic: Strategic dashboards aggregate key organizational health indicators and help C-suite executives identify opportunities for organizational expansion. They detail the general health of an organization, not for the purposes of a complete analysis, but to provoke future thought and further independent analysis. The analyses are not overly complex and typically include more general data aggregations compared to other data dashboard solutions.

Analytical: This type of dashboard is engineered to provide detailed data analyses pertaining to data trends (the what, the why, the how). Analytical dashboard solutions place a particular emphasis on measuring data variables in relation to time (week, month, year, etc.). An example would be to conduct an analysis of supplychain management, together with product sales, over a designated period of time in order to determine what trends, mutually dependent factors and potential strategic consequences exist (if any). A great analogy for analytical BI dashboards would be that of a general medical practitioner. He or she may not be an expert in one specific medical field, but they can effectively monitor the overall health of the body by comparing current symptoms to what would be an ideal state of health. This is exactly the role of analytical dashboards. As analytical dashboards take into account a multitude of different measurables for the purposes of aligning goals with performance, they have a tendency to be complex and highly focused.

Operational: Where analytical dashboards monitor the overall health of an organization, operational dashboards focus on Key Performance Indicators (KPIs). KPIs will vary depending on industry and audience (sales, marketing, finance, etc.), but they will always monitor the real-time operations of an organization or entity. Rather than analyze the general health of an organization (or “body”), operational dashboards will specialize in monitoring the functionality (and deviations) for various KPIs (or “organs”) that exist within an entity. As operational dashboards provide real-time information, they tend to contain less complex data.

2) Design Data to Avoid Clutter

BI dashboard best practice #2: avoid clutter

Once you have given thought to and selected the type of dashboard you desire to implement, our second Business Intelligence dashboard best practice is that you should begin focusing on concise and effective design. While an “easy on the eyes” design scheme may appear tempting, effective communication should always be your number one priority.

It is a major fallacy to assume that what you think is a more visually appealing dashboard will communicate more effectively with your data audience. Communication is a science, and BI dashboard designs should reflect quick, concise and clear factbased communications. One of the unfortunate tendencies of data professionals in the digital age is the self-defeating habit of overburdening audiences with clutter.

While its forms vary, the inherent nature of clutter will likely always remain the same… it will occupy cognitive space within the mind of the audience, and yet, simultaneously fail to have any substantive or beneficial impact. Not only will BI dashboard clutter fail to have a positive impact on an audience, it will create the appearance that data is more complex than its true nature… To avoid clutter, you must identify clutter. A great guide to identifying the characteristics and forms of clutter is the Gestalt Principles of Visual Perception. These six principles (discussed below) were defined by the Gestalt School of Psychology as the main principles outlining basic human interaction and order creation within the context of visual (i.e., data) stimulation. Let’s briefly take a look at each principle.

Proximity: The principle of proximity dictates that we tend to group elements together based on their location or “proximity.” This principle allows for the manipulation of perception through well placed and cleanly grouped data.

Similarity: The principle of similarity dictates that we are likely to group comparable elements together. This essentially means that from the visual perspective of the audience, similar colors, shapes and fonts are expected to be grouped together. When applied to client communications, this principle can assist with the removal of unnecessary data elements.

Closure: The principle of closure refers to our propensity to “close the gap” and create complete elements. This concept applies even when portions of shapes and figures are missing.

Enclosure: The principle of enclosure dictates that if elements are controlled by a visual border or shading, we will tend to see the objects and elements as unique groups. Like prior principles, this principle can be employed as a foundation for graphical data presentation.

Continuity: The principle of continuity dictates that if separate linear elements are positioned within one another, we will tend to integrate all of the parts of the elements. Individual lines will then be viewed less as separate and more as a continuation of one central element.

Connection: The principle of connection dictates that our visual pairings are often strongest when there is an actual linear tie. That is, rather than associating elements via color, shape or spacing, we will use a direct lineal connection to establish the foundation for our visual relationship with data.

3) Design Data With a Clear Visual Order

demonstrating clear visual order as dashboard best practice

One of the most influential factors impacting dashboard data analysis is the subconscious desire to achieve visual order. Disorder begets disorder, and if we fail to appreciate the value of a clean and clear data presentation, our data disorder will ultimately result in dashboard disorder. Let’s take a look at the elements of a well ordered dashboard engineered for visual success.

Consistent Alignment: Ideal data alignment for dashboard purposes is likely to be determined on a case by case basis. A good default rule is to have your dashboard data positioned in upper left.

Alignment: It is important to remember that the basic information consumption pattern for an audience normally will be to start in the upper left corner of the page and read down in an “f” pattern. For this reason, the upper left corner of the page is likely a leading candidate for informative text. Knowing what to place and where is as important as knowing what not to place. Therefore, a second general rule is to avoid ALL temptation to place diagonal elements and fill patterns. Diagonal data elements, especially those linear in nature, add little benefit while significantly reducing alignment efficiency. A recent case study by the Oxford Consultants for Social Inclusion (OCSI) demonstrated this very point (See No. 11).

White Space: Does white space equal wasted space? No! More is not always better. White space is a design term used to reference space within a presentation that is not allocated to any specific element. It is space void of all images, colors, texts, data and other visible page elements. You should be keen to take advantage of the proven benefits of both “active” and “passive” white space (i.e., intentional and unintentional). Benefits include:

  • Enhanced design and balance
  • Enhanced readability
  • Appearance of sophistication
  • Prioritized data elements

Use of Contrast: Contrast should be viewed as closely related to white space. Both originate from the same family tree, but each one brings its own unique properties and features. You can, and should, experiment with both contrast and white space together. When combined, they have the potential to create an incredible one two visual punch. More often than not, contrast will be applied via a change in the data color scheme. This change, likely to be focused on a “point of emphasis” element, is intended to draw the viewer’s attention to a specific and important data detail. Simple color and design variations will enhance the information gathering process and allow for an efficient, focused and comfortable data experience.

4) Provide Data Context

data context visualization

In order to properly analyze the role of data within a specific dashboard, everyone from the CEO to a first year product salesperson needs to understand the notion of context. Data analyses and visual representations lacking data context will be limited in their utility and ROI. It is normal for data points to generate more questions than answers. However, data observers should be fully informed nonetheless. For example, if a dashboard is monitoring product marketing effectiveness, and one of the data points included is total sales, this data point will be useless without knowing the measurement time frame. Is it this week? This month? This quarter? This fiscal year? Absent timespecific context, it is next to impossible to know the intended significance of the data.

A second but equally important part of context is currency. Selected data metrics must be uptodate in order to reflect current trends and challenges. If not, there is almost no point to any analysis. Data arriving to the party out of date creates a margin of analysis error that is a slippery slope.

Data rooted in past circumstances is bound to create “factbased” decisions that are no longer representative of current business environments. While the expectation isn’t (and shouldn’t be) minute-by-minute updates, data metrics should put your business in the best possible position to make informed decisions. For that to happen, data points should remain relatively current.

5) Web-Based Access


Our final best practice is a matter of technological advancement, but also preference. In today’s digital age, with the demand for real-time data updates, web accessible dashboards are a must. Webbased data sharing and analyses reach a wider audience and allow for greater collaboration with other data solutions. File based publishing is an option if budgets and capabilities are limited, but this will negate one of the greatest advantages of BI data dashboards remote synchronization.

When in doubt over which storage technique is right for your business, be sure to test each strategy and determine which system of implementation aligns more seamlessly with your organizational needs, capabilities and goals. Remember! The ability to share real-time data dashboards on web browsers, TV monitors and mobile devices will grant your business the data visibility it needs to stay in control of opportunities and trends. From data storage, to real-time Information delivery, to convenience… webbased dashboard solutions will seamlessly align with the need for mobility and flexibility in today’s business landscape.

Exclusive Bonus Content: Download Free Dashboard Checklist
Get our free guide with great tips for your BI dashboard implementation.

To Conclude…

Dashboards are effective tools for fostering growth in the digital age. With informed data decision making abilities, businesses can continue to advance with the digital age. Follow these five BI dashboard best practices and you will be well on your way to harnessing the power of informed data dashboard decision making.

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