How Heat Maps Can Help You Find the Big Fish in Your Data Pond

A heat map is a graphical representation of data in which different values are represented by different colors. In a BI dashboard, a heat map can be used to visualize patterns and trends in large datasets, making it easier for users to quickly identify areas of interest and focus their attention where it’s needed most.

Some use cases for heat maps in BI dashboards include:

• Sales Analysis: A heat map can show the distribution of sales across different regions or territories, helping sales teams identify areas where they need to focus efforts to improve performance.
• Customer Behavior Analysis: A heat map can highlight the areas of a website or application where users spend the most time, aiding designers and product managers in identifying areas of the user experience that need improvement.
• Risk Management: A heat map can visualize potential risks and their likelihood of occurrence, helping organizations prioritize risks and develop effective management strategies.

Some good practices for using heat maps in BI dashboards include:

• Keep it Simple: Avoid overwhelming users by limiting the number of data points and sticking to a simple, clear color scheme.
• Use Color Effectively: Choose intuitive colors with clear meanings, such as green for positive values and red for negative ones. Ensure the color scheme is easy to understand.
• Provide Context: Heat maps are more effective when accompanied by other visualizations or data that provide context. For example, a heat map showing sales by region is more insightful when paired with a chart showing overall sales trends over time.

Source: Introduction to Heat Maps (microstrategy.com)