Decisions are made based on the information available to the decision maker. For companies the decisions of potential and existing investors matter most. Hence, businesses aim at presenting themselves to their stakeholders in the best way possible. This can be done through all channels of communication that are controlled by the company. Big entities hire specialised employees for departments such as communication or investor relations.
Therefore, this paper aims at answering the question ‘which form of data presentation is most effective for communicating information to investors?’ and ‘which aspects have to be kept in mind when visualising data?’. Hereby, different presentation formats will be compared in terms of their usefulness for decision making. Furthermore, it will be discussed how different types of data have to be visualised. In order to understand why and how data can be manipulated, principles of correct visualisation will be analysed. The research is done by reviewing topic-related literature.
Table of Contents
1. Introduction
2. Research strategy
2.1 Specification of the topic
2.2 Literature Review
2.3 Limitations of this paper
3. Reporting design
3.1 Visualisation
3.2 Different forms of data presentation
3.3 Data visualisation through diagrams
3.3.1 Common diagram forms
3.3.2 Potential ways of emphasising data
3.4 Correct visualisation
3.5 Critical appraisal
4. Conclusion and outlook
Research Objectives and Topics
This paper aims to investigate the most effective forms of data presentation for communicating information to investors, specifically within the context of annual reports, while also establishing key principles for correct data visualisation. The research explores how different formats—text, tables, and various diagram types—impact decision-making processes under time constraints and identifies potential pitfalls in reporting design.
- Comparison of data presentation formats (text vs. tables vs. graphics) for decision-making effectiveness.
- Analysis of diagram types and their appropriate fields of application in business reporting.
- Implementation of the SUCCESS rules as a framework for graphical excellence.
- Identification of challenges in annual report design and the role of professional visual communication.
- Exploration of future trends in reporting, including Integrated Reporting and interactive online media.
Excerpt from the Book
3.4 Correct visualisation
Successful communication is based on binding rules. This also applies to visual business communication. The visualisation of data aims at delivering clear messages through standardisation and reduction to the essentials.
Hence, seven SUCCESS steps were developed for orientation during the designing process (Hichert, R 2011: 232). In the following, some essential recommendations of these steps are explained.
Summary of Chapters
1. Introduction: This chapter defines the research problem, highlighting the importance of effective data presentation for investor decision-making and setting the research objectives.
2. Research strategy: This section details the methodology, including the specification of the topic, the literature review process, and the scope limitations of the paper.
3. Reporting design: This main body chapter explores the concept of visualisation, evaluates different forms of presentation, introduces specific diagram types, and applies the SUCCESS rules for correct report design.
4. Conclusion and outlook: This final chapter synthesizes the research findings, provides a summary of best practices for data visualisation, and discusses future trends such as Integrated Reporting and online media.
Keywords
Data presentation, decision making, annual report, visualisation, reporting design, information design, investors, graphical excellence, SUCCESS rules, business reporting, financial statements, tabular presentation, charts, visual communication, investment decision
Frequently Asked Questions
What is the core subject of this paper?
The paper focuses on how different data presentation formats—specifically within company annual reports—impact the decision-making processes of investors and how to design these reports effectively.
What are the primary thematic fields covered?
The main themes include business reporting, the psychological aspects of decision-making, the efficacy of various graphical vs. tabular formats, and the practical application of design rules.
What is the central research question?
The study seeks to identify which forms of data presentation are most effective for communicating information to investors and what specific aspects must be considered when visualising complex business data.
Which methodology is employed in this research?
The research is based on a comprehensive review of topic-related literature, analyzing existing experimental studies and established design principles, such as the SUCCESS rules by Rolf Hichert.
What does the main body of the paper address?
The main body examines the concept of visualisation, compares textual, tabular, and graphical formats, provides a taxonomy of common diagram forms, and details principles for correct visualisation and graphical excellence.
Which keywords best characterize this work?
Key terms include data presentation, decision making, annual report, visualisation, reporting design, and graphical excellence.
Why are three-dimensional diagrams generally discouraged in this research?
Three-dimensional visualisations are discouraged because they are often perceived as less trustworthy by decision-makers and can distort data perception compared to two-dimensional alternatives.
How do the SUCCESS rules assist in the design process?
The seven SUCCESS steps provide a structured framework for business communication, focusing on standardisation, reduction to the essentials, and consistent design to ensure clarity and improve the speed of data comprehension.
- Arbeit zitieren
- Anonym (Autor:in), 2014, Does presentation format matter? The impact of data presentation on decision making, München, GRIN Verlag, https://www.hausarbeiten.de/document/298464
