¶ Adding Trendlines and Forecasts to Data Visualizations in SAP Lumira
In business analytics, identifying patterns and predicting future outcomes are crucial for proactive decision-making. Trendlines and forecasts are powerful visualization tools that help uncover underlying trends in data and project future values based on historical information. SAP Lumira, a leading data visualization and self-service BI tool, offers robust capabilities to add trendlines and forecasts to your charts, enabling users to gain deeper insights and make informed strategic decisions.
This article provides an overview of how to add and customize trendlines and forecasts in SAP Lumira, along with practical tips and best practices.
¶ What are Trendlines and Forecasts?
- Trendlines: A trendline is a graphical representation of the general direction of data points in a chart. It helps in identifying whether data is increasing, decreasing, or stable over time.
- Forecasts: Forecasting extends trendlines by projecting future data points based on historical patterns, using statistical models such as linear regression, moving averages, or exponential smoothing.
¶ Why Use Trendlines and Forecasts?
- Detect and communicate long-term trends.
- Identify seasonality or cyclical patterns.
- Support data-driven forecasting and planning.
- Enhance storytelling by visualizing expected future outcomes.
- Aid in spotting anomalies or shifts in data trends.
Ensure your data includes a time dimension or a continuous numerical variable to plot meaningful trends.
- Choose a suitable chart type such as line chart, scatter plot, or bar chart.
- Drag the relevant measures and dimensions into the chart.
- In the chart’s properties panel, look for the Trendline option.
- Enable the trendline feature. SAP Lumira typically offers different trendline types such as linear, polynomial, logarithmic, or exponential.
- Select the appropriate type based on the data pattern.
- Adjust trendline color, thickness, and style for better visibility.
- Optionally, display the equation of the trendline and the coefficient of determination (R²) to assess fit quality.
Forecasting is usually applied on time series data visualized with line charts or area charts.
- In the chart properties or advanced analytics section, locate the Forecast settings.
- Enable forecasting features.
- Set the forecast horizon (e.g., next 3 months, next quarter).
- Choose the forecasting model (e.g., linear regression, moving average).
- Specify confidence intervals to visualize prediction uncertainty.
- SAP Lumira will plot forecasted values alongside historical data.
- Confidence bands may be displayed to represent forecast accuracy range.
¶ Practical Tips for Effective Trendlines and Forecasts
- Validate Data Quality: Ensure time series data is complete and clean.
- Choose Appropriate Models: Different datasets suit different forecasting models.
- Avoid Overfitting: Complex trendlines may fit the historical data perfectly but fail to predict future values.
- Use Multiple Visuals: Combine trendlines and forecasts with other charts for comprehensive analysis.
- Communicate Clearly: Use labels, tooltips, and legends to explain trendlines and forecast elements.
Suppose a company wants to analyze past sales trends and predict future sales for the next quarter. Using SAP Lumira:
- Import monthly sales data.
- Create a line chart with months on the x-axis and sales amount on the y-axis.
- Add a linear trendline to observe the overall sales direction.
- Enable forecasting for the next three months, setting a confidence interval of 95%.
- Share the dashboard with stakeholders to support sales planning and inventory management.
Adding trendlines and forecasts in SAP Lumira enhances the analytical power of data visualizations by uncovering hidden patterns and projecting future trends. This capability supports strategic planning, risk management, and business growth initiatives.
By mastering these features, SAP Lumira users can create dynamic dashboards that not only reflect historical performance but also guide forward-looking decisions with confidence.