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CHOOSING THE RIGHT CHARTStrategies for Effectively Presenting Data
David GoldsteinPresidentMekko GraphicsApril 18, 2017
2
Customer Question…
Mr. Goldstein or Whom it May Concern, How to easily show taking market share away from competition over a set (i.e. 5 year) period of time? The example comes to mind when I tried to show this information in a 5-year strategic plan covering pure share gain. I ended up listing each customer’s CAGR, but it was still difficult to determine who/where we would be taking market share from.
Regards,
And My Reply…
3
I would suggest trying a 100% stacked bar chart like the one attached. You can see share change for each company and you can see the CAGR.
0%
20%
40%
60%
80%
100%
20153%
41%
44%
13%
$11.1M
20165%
44%
38%
13%
$13.0M
2017
11%
35%
35%
20%
$14.1M
2018
13%
31%
28%
29%
$15.7M
2019
27%
29%
17%
28%
$16.2M
55%
-7%
-17%
17%
2015-2019CAGR
My Company
Competitor1
Competitor2
Competitor3
Track
Compare
Segment
Types of Charts
4
Start by understanding what you’re trying to do.
Types of Questions
5
Often this is easier to assess if you think about the questions you’re trying to answer.
How do sales compare to previous periods?How have earnings changed?What has contributed to the change?
How does our retention rate compare to competitors?What is the pricing for different brands?Which economies are strongest?
What is our market share by channel?Which product categories are the largest in the industry?Who competes in our markets?
Track
Compare
Segment
6
How has revenue changed?Add a growth line to show change over the time period and a CAGR column to show annual growth rate.
0
2
4
$6B
2013
$1.6B
2014
$2.1B
2015
$2.9B
2016
$3.8B
2017
$5.0B
+223%
34%
CAGR
+223%
2013-2017
How are sales tracking vs. prior weeks?Add enhancements like a target line or rolling average to give additional context.
0
50
100
150
$200K
Target $85K
5/16
$110K
5/23
$99K
5/30
$112K
6/6
$99K
6/13
$145K
6/20
$156K
6/27
$125K
7/4
$99K
7/11
$105K
7/18
$89K
Target $85K
10 week Rolling Average
7
8
How do sales compare to other products?
Use a line chart to emphasize overall trends. Adding the data row helps the audience understand how growth rates have changed.
0
50
100
150
Millions of Units
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
-15% -18%125% 389% 411% 75% 31% 6% -1% -7%iPod Growth81% 77%729% 78% 93%iPhone Growth
iPod Units
iPhone Units
What’s driving the change?Use cascade charts to show how products or regions contributed to the change between the two time periods.
Growth by Product
Q2 2014
$45.6B
iPhone
$14.2B
iPad
-$2.2B
Mac
$0.1B
Other
$0.2B
Q2 2015
$58.0B
Growth by Region
Q2 2014
$45.6B
Americas
$3.3B
Europe
$1.3B
Greater China
$7.0B
Rest of Asia
$0.8B
Q2 2015
$58.0B
9
Which items had the biggest impact on cash flow?Use a cascade to walk the audience through each step. Show positive contributions as green and negative as red.
0
1,000
2,000
3,000
4,000
$ Millions
Beginning Cash
782
ESOP
873
Def. Revenue
799
D&A
706
Other
270
Loan Proceeds
297
Loan Pmt
-854
Net Securities
-537
Change in A/R
-545
-321
CapEx
-290
Net Loss
-273
Ending Cash
908
Def. Commissions
10
Types of Questions
11
Often this is easier to assess if you think about the questions you’re trying to answer.
How do sales compare to previous periods?How have earnings changed?What has contributed to the change?
How does our retention rate compare to competitors?What is the pricing for different brands?Which economies are strongest?
What is our market share by channel?Which product categories are the largest in the industry?Who competes in our markets?
Track
Compare
Segment
12
How do our retention rates compare?Use color to distinguish between business and consumer products or services and add an average line to highlight over and under performance.
30
40
50
60
70
80
90
100%
Retention Rate
Average 82%
VMWare
100%
SAP
98%
Oracle
95%
Intuit Payroll
85%
CRM
85%
Turbotax
74%
Cable
80%
Wireless Postpaid
80%
Wireless Prepaid
40%
Average 82%
BusinessConsumer
Which product category hasthe biggest upside?Use net lines to show current forecasted performance as a second series.
0
10
20
30
40
50%
% of Total Sofware Revenue
CRM
45%
40%
HRM
39%
30%
ERP
10%
3%
SCM
24%
9%
Business Intelligence
7%
3%
45%
39%
10%
24%
7%
Current Cloud Penetration Forecasted Cloud Penetration
13
How does technology use varyby generation?You can use a series of bar charts to show comparisons on different market research questions.
Silent 6%
Baby Boomer 30%
Gen X 50%
Millennials 75%
Have a Profile on Social Networking Site
11%
35%
48%
62%
Use Wireless Internet Away from Home
20%
50%
68%
86%
Sleep with a Cell Phone
14
Where are labor costs the highest?A bar mekko allows you to show a second metric, GDP in this case, to help the audience see the relative importance of each bar.
Average €25
€54
€39€37
€35 €34€31
€28
€21
€8
Bar Widths Proportional to GDP
Total Labor Costs
Average €25
Norway
Denmark
€40
Belgium
Sweden
France
Netherl
ands
Finlan
d
€32
Austria
€32
German
y
Irelan
d
€30
Italy
United
Kingdo
m
€22
Spain
Greece
€15
Portug
al
€13
Czech
Rep
ublic
€9
Poland
Roman
ia
€5
15
16
How do restaurant stocks compare?Use a scatter chart to show performance on two key measures. Adding the regression line in this case helps make the point that the stocks above the line are priced at a premium.
0
11
12
13
14
15
16
17
18
19
20
0 10 20 30 40%
Earnings Growth
Valuation EV/EBITDA
Yum!
Wendy's
Tim Horton's
Starbucks
McDonald's
Dunkin
Dominos
-10
-5
0
5
10
15%
0 15 20 25 30 35 40 45 50Liter
300M Population
Wine Consumption Volume per Capita
Consumption Growth
China
U.S.
Germany
France
UK
Italy
Spain
Argentina
300M Population
Australia
Portugal
Which countries have the highest consumption?
To add a third metric, use a bubble chart. If we did this as a scatter chart, we would miss the key insight that the largest markets by population have the lowest consumption volume.
17
Types of Questions
18
Often this is easier to assess if you think about the questions you’re trying to answer.
How do sales compare to previous periods?How have earnings changed?What has contributed to the change?
How does our retention rate compare to competitors?What is the pricing for different brands?Which economies are strongest?
What is our market share by channel?Which product categories are the largest in the industry?Who competes in our markets?
Track
Compare
Segment
19
What is our market share by channel?Using two 100% stacked bars allows you to show market share for each channel and make comparisons between channels.
0
20
40
60
80
100%
Pizza Delivery Share
Domino's
Other Major Chains
Small Chains
Independents
Digital Share
Domino's
Other Major Chains
Small ChainsIndependents
Where do we make money?Use multiple 100% bars to show more than one metric. Add a data column to showcase data that supports your message. In this case, the most profitable market is declining.
0
20
40
60
80
100%
% of Total
Sales Volume
Latin America 29%
Asia Pacific 21%
Eurasia & Africa 15%
North America 21%
Europe 14%
Operating Income
Latin America 24%
Asia Pacific 21%
Eurasia & Africa 10%
North America 21%
Europe 24%
1%
3%
7%
0%
-1%
Volume Growth
20
How has the product mix evolved?You can use 100% bars over time to show mix changes, in this case by price tier. Skip years to highlight the changes and add a CAGR column to reinforce the message that growth is in the highest and lowest price tiers.
0
20
40
60
80
100%
2008<$200
$200-400
$400-600
$600+
2010
<$200
$200-400
$400-600
$600+
2012
<$200
$200-400
$400-600
$600+
55%
-7%
-17%
17%
2008-2012CAGR
21
How are profits distributed?You can use the cascade chart to walk the audience through each segment and its relationship to the total.
Big East
15%
$25M
Big 12
11%
$18M
ACC
10%
$18M
Big Ten
10%
$17M
SEC
9%
$16M
Pac-12
9%
$15M
Top 6
64%
$108M
All Other
36%
$60M
Total
100%
$168MAverage Distribution from 2009-2013 tournaments
22
23
Where can we cut costs?Use the exploding bar to drill down on a particular cost category.
Total
Food & Beverage 34%
Restaurant Labor 12%
Restaurant Operating 7%
Fixed Labor 19%
Occupancy 13%
G&A, Other 10%
Marketing 4%
Food and Beverage
Beef 28%
Shellfish & Seafood 11%
Other Meats 10%
Dairy 8%
Produce 12%
Breads & Oils 7%
Other 24%
24
What’s included in the $2+ TrillionIT industry?The marimekko allows you to show an industry by category and segment. Notice that each category has different segments.
0
20
40
60
80
100%
Software
Applications
Custom Software
Middleware
Operating Systems
Outsourcing & Maintenance
Hardware Support
Networks/Other
Infastructure
Hosting
Application Outsourcing
Application Mgmt
Computer Equipment
PCs
Tablets
Servers
Storage
Peripherals
Other
Consulting & SI
Strategy and Other
Systems Integration
Communications Equipment
Telcos
Enterprise & SMB
Total = $2,069B
Who competes in the electric car market? The marimekko allows you to show the market by competitor and product category. Notice that some competitors appear in multiple product categories.
0
20
40
60
80
100%
Conventional Hybrids
Ford
GM
Toyota
Other
Ford
GM
Toyo
ta
Nis
san
Tesl
a
Other
2013 Electric Vehicle Sales by Manufacturer
Plug-in Hybrids
100% Electric
25
Where are wine grapes grown?A marimekko can be used to show a wide range of metrics, including costs, customers, or in this case, capacity by region and country.
0
20
40
60
80
100%
Surface Vine Area (mha)
Europe
France 800
Italy 769
Spain 1,018
Turkey 517
Other 618
AP/Africa
Australia 169
China 570
South Africa 131
Other 37
South America
Chile 205
Argentina 221
Other 91
North America
USA 407
26
Summary
27
Track Compare SegmentKey chart types
Bar, line, bar-line, area, cascade
Bar, bar mekko, scatter, bubble
100% stacked bar, cascade, marimekko
Key questions • How have sales, costs or profitability changed over time?
• What are the components of that change?
• How do I compare to competitors on price, cost or retention rate?
• Which country has the highest labor cost, internet penetration, consumption or unemployment?
• How did different groups respond to market research questions?
• What is our market share by segment, profitability by product or cost by category?
• Which product categories are the largest?
• Who are the competitors in each market?
28
Resources• This slide deck will be posted tomorrow and the link will be emailed to
all registrants• Download a free 30 day trial of Mekko Graphics at:
http://www.mekkographics.com/free-trial/ • Mekko Graphics Chart Gallery provides examples of many uses of
our charts: http://www.mekkographics.com/resources/charts-by-type/• Chart of the Week Blog provides topical examples of Mekko Graphics
charts: http://www.mekkographics.com/resources/blog/• Videos show how to produce different types of charts and how to use
different product features: http://www.mekkographics.com/resources/get-started/videos/
• For other questions or product feedback, email me at [email protected]