Treasury Analytics

CAFTA- Finance with Finesse

Overview
Section 1, 2, and 3 gives an overview of the different types of data and data analytics methods. It lays out
the difference between different types of data analytics - prescriptive, descriptive and predictive
methodologies
Section 4 introduces the reader to advanced analytics techniques like Artificial intelligence, machine learning.
This is followed by giving the reader an understanding of the different areas in which these techniques are
applicable like fraud detection, algorithmic trading etc.
Rest of the sections provide the reader a background on the different steps involved in setting up of a Power
BI dashboard, effective story building techniques, use of colours in visual analytics etc.

At the end of the module you will:

► Understand the fundamental concepts of data analytics and big data and become familiar with
advanced analytical concepts like artificial intelligence and machine learning
► Identify and work with various forms and types of data such as structured and unstructured data
► Implement analytical solutions in a step wise manner covering an array of treasury functions like
financial risk management, liquidity management, cash management, investment management etc.
► Engage in discussions related to data visualization, importance of storytelling
► Work with databases and create dashboards that support different visualization tools

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Contents
1 Introduction to Data Analytics and Big data .................................................................................................... 4
2 Forms of data ................................................................................................................................................. 6
2.1 Structured ................................................................................................................................................. 6
2.2 Unstructured ............................................................................................................................................. 6
2.3 Semi-structured ......................................................................................................................................... 6
3 Categories of data analytics ........................................................................................................................... 7
3.1 Descriptive analytics .................................................................................................................................. 7
3.2 Predictive analytics .................................................................................................................................... 7
3.3 Prescriptive analytics ................................................................................................................................. 8
4 Leveraging artificial intelligence (AI) and machine learning (ML) for data analytics .......................................... 9
4.1 Artificial intelligence .................................................................................................................................. 9
4.2 Machine learning ....................................................................................................................................... 9
5 Application of data analytics in finance ......................................................................................................... 12
5.1 Risk management .................................................................................................................................... 12
5.2 Fraud detection ....................................................................................................................................... 12
5.3 Consumer analytics .................................................................................................................................. 12
5.4 Algorithmic trading .................................................................................................................................. 12
6 Design overview for implementing analytics .................................................................................................. 13
7 The six stages to successfully perform data analysis ..................................................................................... 14
8 Fundamentals of data visualization ............................................................................................................... 20
9 Storytelling with data ................................................................................................................................... 20
10 Case study – journey to analytics and visualization..................................................Error! Bookmark not defined.

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1 Introduction to Data Analytics and Big data
Data, in the context of analytics, is any information that can be used to make interpretations. It is information
that can be used as a basis of reasoning, discussion or calculation. Data can be numbers, images, characters
or text that can be collected or examined.
The act of closely examining this data to draw conclusions or inferences is called data analytics. It is the
process of collecting, cleaning, transforming and modelling data to derive meaningful information. It refers to
the techniques of analysing raw data, building models on that data and interpreting the output of the data to
create valuable insights. However, data analytics is a broad term and has evolved gradually as a concept over
the years.
For decades data stored in excel sheets has been cleaned, wrangled and analysed manually with no application
of Analytics. Data was locked and was primarily managed by the IT team. If a business user wanted access to
the Business Intelligence system or a database, a request was sent to the IT team which would extract the
relevant data and share it with the user. Although data was fully governed, the information contained in the
reports was outdated and unstructured thus hardly useful for insightful interpretation and analysis. More
recently, the trend is towards automation and real-time applied analytics. Business users have the access to
the company’s datasets, which allows application of real-time data.
FIGURE 1.1: The Evolution Towards Digitization

Big data/Artificial Intelligence

Evolution of analytics has also progressed with respect to the quantum of data that is available, the data
storage capacity, its technical framework for implementation and the mathematics/statistics skills used for
analytics. Previously, storage of large volumes of data was difficult. Gradually, technological advancements
and increase in the use of big data (explained below) have allowed users to store and access data easily and to
develop automated processes for in-depth business analysis.
Big data is a term used to describe a collection of large data sets. These data sets can range from a few dozen
terabytes to many zettabytes of data. However, how does big data differ from normal data?
Big data can be anything from structured data such as system information and database information to
unstructured data such as photos, videos and twitter feeds. It can be data that is collected through internal
sources of an organisation or purchased externally through paid subscriptions. It can include information
available on social media, textbooks, literature or customer complaints. Big data is practically any data that is
available in its raw or transformed form. However, the three Vs of big data differentiate it from normal data;
they are Volume, Velocity and Variety. These are explained in detail as follows.

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 FIGURE 1.2: The 3 V’s of Big Data

Volume - This refers to the size or the amount of data that is generated.
Velocity - The term 'velocity' refers to the speed at which data is generated. It deals with the speed at which
data flows in from sources such as business processes, application logs, networks, social media sites, sensors
and mobile devices. The flow of such data is massive and continuous.
Variety - Variety refers to the forms of data such as structured and unstructured. This variety of data poses
issues for storage, mining and analyzing, and therefore, is a key defining property of big data.

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2 Forms of data
There are three forms of data, namely structured, unstructured and semi-structured. They are explained in
detail as follows.

2.1 Structured
Any data with a fixed format is called 'structured' data. Storing and processing this data is easy because the
structure is standardised. This data has fixed parameters, such as length, file type, format and field type. This
data usually can be stored in databases and one can query it using languages such as structured query
language.
Following Table 1.1 presents an example of structured data.

Table 1.1: An 'Employee' Table In A Database Is An Example of Structured Data

Employee ID Employee name Gender Department Salary

1234 Rajesh Kulkarni M Finance 1,000,000

1235 Ramesh Shah M Marketing 2,000,000

1236 Rajkumar Rao M HR 1,500,000

Illustrative only

2.2 Unstructured
Any data with an unknown form/structure is classified as unstructured data. Unstructured data poses multiple
challenges in terms of processing it to derive outcome from it because this data is not in a particular format
and no logic can be directly applied to it. A typical example of unstructured data is a data source containing a
combination of simple text files, images and videos such as a Google search result. This data is in its raw form.

2.3 Semi-structured
It is basically structured data that can have elements that are unstructured. A common example of semi-
structured data are emails. Here, the layout of the template is structured for example the ‘From’ participants,
‘To’ participants, subject, date, and so on. However, the content of the email is subject to change and is
unstructured.
A few examples of structured versus unstructured data can be viewed below:

Table 1.2: Comparison of Structured vs Unstructured Data

Examples Structured data Unstructured data
Date Text files
Phone numbers Email
PAN/GST number Audio video
Credit/debit card numbers Social media content
Customer names Reports
Addresses Surveillance imagery
Transaction information
Illustrative only

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3 Categories of data analytics
Data analytics can be broadly classified into three categories, namely descriptive, predictive and prescriptive.
As suggested in the Figure 1.3, all these categories have different levels of difficulties and help us answer
different questions. These are explained in detail in the following section.
FIGURE 1.3: Categories of Data Analytics

3.1 Descriptive analytics

This category of analytics involves interpretation of past/historical data. It summarises raw data, interprets it
and converts it into meaningful insights. Some examples of descriptive analytics are measures such as sums,
averages and percentages. Statistical models that identify patterns and trends in the variables, along with
generation of hypotheses, are also a part of descriptive analytics.
For example, sales data for Company A is raw data. When this data is summarised for each month/quarter,
then trends can be drawn to understand month-on-month sales. The summarised data is called descriptive data.

3.2 Predictive analytics

It is a branch of analytics that is used to predict future events. The foundation of predictive analytics is based
on probabilities, and they are associated with the ability to ‘Predict’ what may happen. It is essential to note
that no statistical algorithm can ‘predict’ the future with 100% certainty.
Credit scoring exercise is a common example of predictive analytics. Credit scores are used by financial services
companies to determine the probability with which the customer may make future payments. Therefore, these
companies use various attributes such as payment history and bankruptcies and build a model to predict future
credit scores. The outcome of the model is further used by these companies to approve or reject loans to
customers. This also helps the company determine if the customer is a high-risk or a low-risk customer. This
example illustrates that while the historical information of a credit applicant is of some interest, the real value
of the historical information comes from combining the data with algorithms to produce predictive analytics.

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3.3 Prescriptive analytics
This category of analytics entails the application of mathematics and computational sciences to suggest the
best course of action for the output received from descriptive and predictive analytics. While descriptive and
predictive analytics provide insights on what will happen in the future, prescriptive analytics goes a step further
and analyses when and why it will happen. This is the most advanced form of analytics and enables smart
decision-making.
Example: Suppose, the CEO of an airline company wants to maximise the company’s profits. Prescriptive
analytics can facilitate this by developing an algorithm that would automatically adjust ticket prices based on
factors such as weather, gasoline prices and customer demands. It can increase ticket prices when too many
customers are looking at the flight prices, and alternatively, reduce prices when the turnout is low. This can be
an automated system and the CEO is not required to monitor ticket sales and market conditions. A computer
program can do all of this and more at a faster pace.

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4 Leveraging artificial intelligence (AI) and machine learning (ML) for
data analytics
A slew of emerging technologies is shaping our lives, arguably at a very fast pace. Enabled by computing power
and access to large data sets, machines are already doing a better job than humans in several areas. We see it
everywhere around us, from self-driving cars to recommendations in our shopping carts. One of the key
technologies that has enabled this process is AI.

4.1 Artificial intelligence

AI is the science of building intelligent machines. It ensures the capability of a machine to imitate human
behaviour. It is the branch of computer science that teaches computers to perform tasks that require human
intelligence, such as learning (acquisition of rules and information for interpretations), reasoning (using rules
to reach conclusions) and self-correction.
One fundamental difference between AI and non-AI systems is that a traditional program is coded to execute
commands and an AI is coded to learn. Thus, an AI system has the unique ability to improve performance over
time, which is a human-like capability.
Common AI applications include the following:
1. Image recognition - recognising and categorising images based on previous categorisation and
automatically tagging them.
2. Speech recognition - the ability of a program or machine to identify words and phrases in spoken
language and convert them to a machine-readable format.
3. Chat bots - software that converses by using textual or auditory methods. Such programs are often
designed to convincingly simulate how a human would behave in a conversation.

Let us learn using a detailed case study. Illustratively, an autonomous car reaches near a stop signal and must
quickly decide how to stop. Various functions must be modelled within the system of the car to ensure that it
stops at the stop sign. Some components the car would consider are as follows:
► Recognising and identifying the stop sign
► Interpreting location through GPS
► Evaluating surrounding objects
► Controlling and calibrating the speed of a braking mechanism

A network of sensors feed data to an on-board AI system that in turn controls multiple mechanical systems.
Each of these components plays a critical role in the successful operation of the whole system and can also
represent a single point of failure in the reliability and performance of the system. Therefore, trusting the car
to fulfil its purpose requires that we collectively trust every component of the system in its individual design
and performance. Therefore, trust is achieved, sustained or lost at the system level.

4.2 Machine learning

We are aware that humans learn from past experiences and machines learn from humans. However, with the
evolution of technology, humans are training machines to learn from themselves or from their past experiences
and at a much faster pace. This ability of a machine to learn from itself is called ML.
ML is a subset/application of AI. It provides systems the ability to automatically learn and improve from past
experience without being explicitly programmed. ML focusses on the development of computer programs that
can access data and use it to learn and program on their own. At a basic level, ML is used to predict the future
based on past experiences. For example, it can predict how much Alex would like a movie she hasn’t watched,
based on the ratings she has given to movies that she has watched before.

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Let us learn with an example what and how the machine is learning from itself.
Suppose Paul loves listening to new songs. He either likes a song or dislikes it. Paul decides this on the basis of
the song’s tempo, genre, intensity and gender of voice. For simplicity, let us consider only two parameters,
namely tempo and intensity.
Assume that the tempo of the song is mapped on the X axis (ranging from relaxed to fast) and intensity is
mapped on the Y axis (ranging from light to soaring). Let us assume that Paul likes songs with a fast pace and
soaring intensity and dislikes songs with a relaxed pace and light intensity.
FIGURE 1.4: Illustrative for Machine Learning 1

Let us assume that Paul listens to a new song – Song A. This song has a fast pace and a soaring intensity. This
new song, therefore, would lie on the graph in the blue section. By looking at the data and Paul’s past choices,
the machine was able to guess correctly that Paul likes Song A based on the selected parameters.
FIGURE 1.5: Illustrative for Machine Learning 2

Now, let us consider the example of another song – Song B. This song has a medium tempo and medium
intensity. Therefore, it lies somewhere between the blue and orange section. This confuse the system to
determine whether Paul will like the song.

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 FIGURE 1.6: Illustrative for Machine Learning 3

The role of ML is best demonstrated here. If we draw a circle around Song B, we can see that there are three
votes for Paul liking the song and only two votes for disliking. Going by Paul’s previous choices, the machine
will categorise Song B as Paul liking the song. This is a basic ML algorithm. It is known as K-nearest neighbours’
algorithm and is one of the many algorithms that can be used for ML.
The machine in the example learned from data, built a predictive model around it and generated an outcome
without human intervention. It seems easy when there are two parameters, but machines are able to predict
outcomes even in cases where there are multiple parameters and uncountable incoming data. In conclusion,
more the data, better the model and higher the accuracy.
The basics of ML comprise of learning from the environment and applying that learning for decision-making.
There are categories of ML algorithms that make it possible to do this effectively. These are as follows:
1. Supervised learning: In this model, the machine is trained using data that is ‘labelled’. Labelled data is
information that is already tagged with a correct answer. For example, let us consider that you have a
₹5 coin which is gold in colour and weighs 1 gm. In this example, the colour and weight of the coin are
labels. So, every time a new coin is added to the data set that weighs 1 gm and is gold in colour, the
machine would tag it as a ₹5 coin because it has been trained to do so. This is called supervised learning.
The K-nearest model example in the previous section is also a simple supervised ML model.
2. Unsupervised learning: In this model, the algorithm is such that it is not trained for an output. Instead,
you need to allow the model to work on its own to discover information. It mainly deals with unlabelled
data.
3. Reinforcement learning: It is a type of dynamic programming that trains algorithms using a system of
reward and punishment. Here, the system learns by interacting with its environment. The system
receives rewards for performing correctly and penalties for performing incorrectly. The system learns
without intervention from a human by maximising its rewards and minimising its penalties.

The system here can be a self-driving car or a chess-playing program. When the system interacts with its
environment, it receives a reward state depending on how it performs such as driving to a destination safely or
winning a game. Conversely, the system receives a penalty for performing incorrectly such as going off the

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road or being checkmated. Over time, the agent makes decisions to maximise its rewards and minimise its
penalties by using dynamic programming. The advantage of this approach is that it allows the system to learn
without a programmer spelling out how it should perform the task.

5 Application of data analytics in finance

We have understood from the previous sections that data can be of various forms. It can reside in different
sources and can be in different formats. Therefore, understanding and interpreting data can be challenging.
However, most financial institutions working with large amounts of data have recognised the value of using
analytics on this data. By gleaning insights from this data, often in real time, organisations are able to work
more efficiently or gain an advantage over competitors.
Some areas where financial industries have adopted analytics are as follows:

5.1 Risk management

Monitoring and managing risk is a significant domain for financial institutions. There are many risk-sensitive
areas prone to potential risk including regulators, customers, competitors or investors. Also, risks may vary in
importance depending on the potential losses they may generate and can be monetary or reputational.
Therefore, the main steps are identifying, prioritizing and monitoring risks, which are the perfect tasks for ML.
By training how to use the huge amount of financial data, customer data, lending values and insurance results,
algorithms can not only generate more risk scoring models but also enhance sustainability and cost efficiency.

5.2 Fraud detection

Analytics are used by banks and financial services firms to differentiate between fraudulent and legitimate
transactions. By using analytics and ML, normal activity is defined based on customer’s history and
distinguished from unusual behavior to indicate fraud. For example, large cash withdrawals block the card
unless the cardholder confirms the transaction. In the stock market, ML tools can identify patterns in trading
data that may indicate manipulations and alert staff to investigate.

5.3 Consumer analytics

Real-time analytics also facilitates better understanding of customers and effective personalisation. Banks
have been under pressure to change from product-centric to customer-centric businesses. One method to
achieve this transformation is to better understand customers by using segmentation. Big data enables banks
to group customers into distinct segments, which are defined by data sets such as customer demographics,
daily transactions, interactions with online and telephone customer service systems and external data such as
the value of their homes. Promotions and marketing campaigns are then targeted to customers according to
their segments.

5.4 Algorithmic trading

This area is probably the most highly affected by real-time analytics because every second is at stake here.
Based on analysing the most recent information including tweets, financial indicators, data from news and
books and even TV programs, a trading strategy is defined basis the automated system.
The data present in the algorithmic trading model consists of massive data streams and involves a model that
measures and describes the underlying data streams. The aim of the analytical engine is to make predictions
for the future market by having a better understanding of the current massive data sets.

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6 Design overview for implementing analytics
Good design principles are critical when creating an environment to support data analytics. It must include
components that support storage, analytics, reporting and applications. The environment must include
considerations for software tools, hardware, infrastructure, software management and well-defined
application programming interfaces (APIs). In theory, a general analytical set-up is divided into two key
components, namely front-end and back-end.
FIGURE 1.7: Illustrative High-Level Technical Architecture for Analytics

1. Front-end - In computing theory, ‘front-end’ is a term usually used to represent what is going to be
visible to the end user by using the tool. It may also be called the ‘client side’. It is usually the visual
layer or input layer of the tool. For example, a web page where the user uploads the data that will be
analysed. HTML, CSS and JavaScript are some languages used for front-end development.
2. Back-end - Back-end is the analytical layer or the server side of the application where the data is stored,
manipulated and analysed. Java, Python and Hadoop are examples of tools usually used for back-end
development. In addition, database management is considered as a core part of back-end development.
All data that is uploaded by the user in the front-end is stored electronically in a secure space (usually
knows as servers).

The figure1.7 explains the elements of the technical set-up for analytics. It is evident that the base of this
structure is raw data/system data that is first aggregated. All data is stored in a database from where the
relevant data is extracted to perform analytics. The final output of this analytic computation is represented
through a dashboard that is visible to the end user. In this set-up, the data aggregation and logic/computation
layers form a part of the back-end engine and the visualisation layer forms a part of the front-end engine.

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7 The six stages to successfully perform data analysis
The process of data analytics involves six key steps to facilitate successful results. These include everything
from data source identification to visually representing the final output. The following Figure 1.8 explains the
six stages.
FIGURE 1.8: The 6 Stages to Successfully Perform Data Analytics

Let us learn with an example:

Analyst Rahul has been asked by the CFO of the company Larry Turbo Infotech (LTI) to compare his company’s
stock performance against stocks of two peer companies for 1 year. To achieve the objective and prepare a
report for the CFO, he follows these steps:
1. Data requirement specification: At this stage, the relevant data files and sources are identified.
According to the requirement specified by the CFO, Rahul will require the stock data for two of the peer
companies to compare LTI’s stock performance.

He decides to compare their stock performance against Infotech and Tech Consultancy Services (TCS).
He chooses to compare the companies’ data for a period of 1 year.
2. Data collection: The data collection stage involves gather information on the variables identified in the
previous stage. The accuracy and integrity of the data collected is crucial as it ensures that the outcome
of the analysis is valid.
Data is then collected from various sources ranging from organisational databases to web pages, and
consequently, may not be structured appropriately for the analysis and may contain irrelevant
information. Hence, the collected data must be processed and cleaned before it is analysed.
To analyse the data, Rahul requires the data to be in a standard format. Accuracy is maintained in the
data by trying to extract it from the same source. At this stage, he decides and chooses to collect his
data from the Bombay Stock Exchange. In addition, he acquires LTI’s stock performance data from the
finance department of the company.

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3. Data processing: At this stage, the collected data is processed and organised for analysis. Based on
the analytical tool to be used, the data must be appropriately structured. For example, the data may
have to be placed into rows and columns in a table in a spreadsheet or imported within a statistical tool.
For organising the data, he decides to use Excel and for visualisation, he chooses to use Power BI. For
both cases, he has to perform the analysis in Excel.
Rahul extracts his raw data in the form of Notepad files. The data is separated by commas and can be
easily transformed into an Excel table.
As a first step to processing his data, he will upload the raw, unformatted data from Notepad into Excel.
He will then use the Text-to-Column function in Excel to place the data in different columns.
Text-to-column can be performed by clicking on data and then on the Text-to-Column function.

FIGURE 1.9: Text-to-Column Function in Excel

FIGURE 1.10: Raw Data

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 FIGURE 1.11: Data Processing

4. Data cleaning: Data cleaning is the process of preventing and correcting problems, such as incomplete
data, presence of duplicates, errors and missing values. Moreover, not all columns are relevant for
Rahul to conduct the analysis. For the analysis, he needs the month, closing price, number of shares,
volume and the total turnover of the company. He will, therefore, remove all other columns that are
not required for the analysis by right clicking on the selected column and selecting the delete option to
remove the column. As displayed in the following Figure 1.12, the selected column ‘No of Trades’ is
deleted.

FIGURE 1.12: Data Cleaning

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 In addition, the current data set does not have a unique identifier to accurately identify what company
the data is pertaining to. Therefore, an additional column, Name of Company, is added by Rahul, which
will complete the data set.
FIGURE 1.13: Adding Columns

5. Data modelling: This is the most important step in the whole process and involves the use of several
techniques to understand, interpret and derive conclusions based on the requirements. Statistical data
models such as correlation and regression analysis can be used to identify the relations among the data
variables. The analysis may require additional data cleaning or data collection, and hence, these
activities are iterative in nature.

Rahul decides to calculate correlation of the close prices of stocks to compare their relationship with
each other.
Note: Correlation is a measure of the strength of linear relationship between two variables. It is unit
free and ranges between −1 and +1. The closer it is to −1, the stronger the negative linear relationship.
The closer it is to +1, the stronger the positive linear relationship. The closer it is to 0, the weaker the
linear relationship.

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 FIGURE 1.14: Data Modelling

In Figure 1.14, we use inbuilt function ‘CORREL’ (stock price list 1, stock price list 2) to calculate
correlation coefficients between LTI and Infotech and LTI and TCS. The two columns of closing prices
of the two companies will be the arguments for this function.

Here, we can see that closing prices of LTI and TCS yield a correlation coefficient of −0.214, and thus,
are negatively or inversely related to each other, whereas closing prices of LTI and Infotech yield a
correlation coefficient of 0.225, and thus, are positively related to each other.

6. Data visualisation: The results of the data analysis must be reported in a format understandable by
the senior management to support their decision-making and further action. Their feedback may be
used for additional analysis. Data analysts can choose data visualisation techniques such as tables and
charts to facilitate clear and efficient communication of the message to the users.

Therefore, for visualisation, Rahul uploads the Excel files into Power BI. He uses Line Chart and
Clustered column chart to visualise his data.

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 FIGURE 1.15: Line Chart Visualization

Interpreting the line chart

In most periods, when prices of LTI increase, prices of TCS decrease, and vice versa. This justifies the negative
correlation coefficient between the two stock prices that leads to a value closer to zero rather than −1.
In most periods, when there is a decrease in LTI stock prices, Infotech stock prices also decrease, and vice
versa. This justifies the positive correlation coefficient between the two stock prices and results a value closer
to zero rather than +1.
The above visualisation Figure 1.15 can also be changed to a bar chart as in Figure 1.16. However, the
readability of the bar graph is low, and it is difficult to ascertain any pattern as clearly as it in the line graph.
Line graph is better at demonstrating changes and trends over time. Therefore, the choice of type of
visualisation is important to draw appropriate conclusions from the data.
Figure 1.16: Clustered Column Chart Visualization

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Through the six-step process, meaningful patterns, trends and relationships, which are not easy to determine
using raw data, can be discovered.

8 Fundamentals of data visualization

Data visualisation is the graphical representation of information/data. By using visual elements, such as charts,
graphs, maps and data visualisation tools, companies can understand trends, outliers and patterns in data.
Advantages and benefits of data visualization
► Data visualisation provides us a quick and clear understanding of the information. Thanks to graphical
representations, we can visualise large volumes of data which in turn helps us comprehend the
information and draw conclusions and insights. This helps us save time and solve problems more
efficiently.
► It helps to identify emerging trends and act quickly based on what we see. These trends make more
sense when they are graphically represented; that is, visuals and diagrams make it easier for us to
detect highly correlated parameters. Some relationships are obvious, but others must be identified and
highlighted to help our customers focus on a specific data point, which may influence their decisions.
► The presentation of infographics and data enables us to identify relationships and patterns within
digital assets because discerning trends in the data give us a competitive advantage when it comes to
factors that may be affecting product quality or that may help us solve larger problems.
► It allows us to develop a new business language so that we can tell a story to others. It is a medium that
enables us to easily create a narrative through graphics and diagrams, through which, with the help of
visual analytics, we can uncover new insights.

9 Storytelling with data

We have established that data visualisation is fundamental to data analytics and big data. It provides context,
draws attention to key insights and facilitates relevant action. But, do all visualisations lead to informative
conclusions? The answer is no. For visualisation to be effective and useful, an underlying process must be
established. One must know what they want to achieve from the visualisation. The end goal must be in line with
the audience that is going to view it. The following steps are imperative for a good story with data:
Develop a basic structure that is in line with the desired output
1. Create a headline for every graph that allows the user to identify relevant data points
2. Retain only relevant information. Having multiple types of graphs depicting the same information can
be confusing
3. Use call-outs to highlight important data
4. Balance the design of the output. Visual elements such as shape, colour, negative space and texture
should be equally distributed across the plot
5. Symmetrical visual elements are known to be more appealing to the human eye; use of symmetry in
your visualisations can increase the appeal of the final output
6. Illustrate movement - movement directs the user’s attention in a certain direction, just like emphasis.
Your visual elements should mimic movement in an ‘F’ pattern which is how people read. Starting from
top left to right, and gradually down the page
7. Use patterns smartly. Repeated design elements form a pattern. When it comes to visualising your
data, patterns make for a great way to display similar type of information spread across the page as
one

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 8. Variety is an important factor that keeps viewers engaged and interested in your data. Find ways to
visualise your data using different and interesting design elements to avoid repetition
9. A unified theme ensures every part of your design is consistent and follows a standard. This should
happen naturally if you have taken care of the aforementioned design principles

Fact check:
Which graph would you use for the following situation?
1. Comparative trends over a period (e.g., stock prices of Company A vs Company B over 1 year) – line chart
or bar graph?

Ans: Line chart because you want to see the number of times that Company A was priced higher than Company
B, and vice versa.
2. Sales by region (e.g., sales of a motor company in India) – pie chart or map?

Ans: Map chart (with bubble) because this would enable you to identify your geographical presence and the
bubble size will allow you to know where you had higher sales.

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Ground Floor, ‘A’ wing
Divyasree Chambers
# 11, O’Shaughnessy Road
Langford Gardens
Bengaluru - 560 025
Tel: + 91 80 6727 5000
Chandigarh
1st Floor, SCO: 166-167
Sector 9-C, Madhya Marg
Chandigarh - 160 009
Tel: + 91 172 331 7800
Chennai
Tidel Park, 6th & 7th Floor
A Block, No.4, Rajiv Gandhi Salai
Taramani, Chennai - 600 113
Tel: + 91 44 6654 8100
Delhi NCR
Golf View Corporate Tower B
Sector 42, Sector Road
Gurgaon - 122 002
Tel: + 91 124 443 4000
3rd & 6th Floor, Worldmark-1
IGI Airport Hospitality District
Aerocity, New Delhi - 110 037
Tel: + 91 11 4731 8000
4th & 5th Floor, Plot No 2B
Tower 2, Sector 126
NOIDA - 201 304
Gautam Budh Nagar, U.P.
Tel: + 91 120 671 7000
Hyderabad
Oval Office, 18, iLabs Centre
Hitech City, Madhapur
Hyderabad - 500 081
Tel: + 91 40 6736 2000
Jamshedpur
1st Floor, Shantiniketan Building
Holding No. 1, SB Shop Area
Bistupur, Jamshedpur – 831 001
Tel: + 91 657 663 1000
Kochi
9th Floor, ABAD Nucleus
NH-49, Maradu PO
Kochi - 682 304
Tel: + 91 484 304 4000
Kolkata
22 Camac Street
3rd Floor, Block ‘C’
Kolkata - 700 016
Tel: + 91 33 6615 3400
Mumbai
14th Floor, The Ruby
29 Senapati Bapat Marg
Dadar (W), Mumbai - 400 028
Tel: + 91 22 6192 0000
5th Floor, Block B-2
Nirlon Knowledge Park
Off. Western Express Highway
Goregaon (E)
Mumbai - 400 063
Tel: + 91 22 6192 0000
Pune
C-401, 4th floor
Panchshil Tech Park
Yerwada
(Near Don Bosco School)
Pune - 411 006
Tel: + 91 20 4912 6000
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