Dashboards are powerful tools that can transform operations. Yet, practice shows many businesses just don’t use them. Why? While reasons may differ, most commonly, businesses are simply unaware of all the opportunities these instruments provide. In this post, we’ll try to fill in this gap. We’ll review different types of dashboards, their benefits, and use cases.

What Is a Dashboard And Why Do You Need One?

A dashboard is a visual tool that shows important data points and metrics in an easy-to-understand format. It brings complex data from multiple sources into one clear view. Many of you might have come across this or another Figma dashboard template. All these templates are designed to help businesses

  • track performance,
  • identify trends,
  • and make data-driven decisions faster.

So the idea behind the instrument is simple. You want to have all your key metrics — sales figures, marketing campaign results, customer service metrics, and the like — in one place. And instead of sifting through numerous reports, you get a snapshot of your business’s health at a glance with a dashboard. This saves you tons of time as well as helps you spot issues and opportunities quickly.

Dashboards Benefits

The benefits of using dashboards are quite varied. Here are a few core advantages.

  • More helpful data visualization

Dashboards turn raw data into easy-to-read visuals. Charts, graphs, and other tools make complex data more accessible. This helps teams quickly grasp performance metrics and trends. For example, a sales dashboard can show monthly sales with bar charts so that everyone can immediately see strong and weak months.

  • Faster and smarter decisions

Dashboards give you real-time data and, thus, a good basis for faster and better decisions. Instead of relying on reports (which were prepared weeks or even months ago), you get insights that show current business conditions. For instance, you can spot a sudden drop in production with an operational visual report and act immediately.

  • Faster performance

One more benefit is that these tools automate data collection and reporting. This saves you time and prevents many errors. Your team doesn’t need to enter data manually and can fully focus on analyzing insights. For example, thanks to streamlined reporting, a marketing team can track campaign performance across multiple channels.

  • Better collaboration

Last but not least, dashboards make things more transparent and ensure all team members are on the same page. For instance, an executive visual report can provide overviews that align different departments towards common goals. Needless to say, this fosters collaboration (and often innovation).

Dashboard Types

To get the most out of your tool, it’s essential to choose it wisely. Let’s take a closer look at the main dashboard types and their applications.

Operational

Operational dashboards monitor real-time business operations. They provide a detailed view of daily activities and help managers ensure everything runs smoothly. For example, such an instrument for a manufacturing plant might display

  • current production rates,
  • equipment status,
  • and inventory levels.

These tools allow managers to quickly spot and fix any issues that could disrupt production.

Best for managers who need to monitor and optimize day-to-day business processes.

Strategic

Strategic dashboards are designed for long-term planning and high-level decision-making. They present key performance indicators (KPIs) that reflect the overall health and progress of the business.

A strategic dashboard for an executive team might thus include metrics like

  • quarterly revenue growth,
  • market share,
  • and customer satisfaction scores.

These metrics help executives make decisions that align with the company’s strategic goals.

Best for executives and senior management who are responsible for strategic decision-making and long-term goals.

Analytical

Analytical dashboards are used for in-depth data analysis. They provide detailed insights into business performance and help to identify

  • trends,
  • correlations,
  • and anomalies.

Let’s take an analytical tool for a retail business, for instance. It might analyze sales data across different regions, customer demographics, and product categories. Thanks to it, a business can understand market dynamics and optimize sales strategies.

Best for data analysts who need to dig deep into data for valuable insights.

Tactical

These tools are a pretty helpful addition to the 3 types of dashboards covered above. In a way, they bridge the gap between operational and strategic dashboards because they focus on managing mid-term goals and projects.

A tactical dashboard for a marketing team, for example, might track the progress of a campaign and show metrics like

  • lead generation,
  • conversion rates,
  • and return on investment (ROI).

Best for middle management and project teams (or in fact anyone) who need to monitor and adjust strategies to meet targets.

Final Thoughts

Now that you are familiar with different dashboard categories, you may see that these are powerful tools that can really change how your business operates. Of course, you should understand how these different types work to choose the right one for your needs. Most commonly though, you’d need to mix different dashboard types to ensure that employees at all levels have access to the tools that are right for them.

FAQs

How do I determine which type of dashboard is best for my business?

Consider your specific needs and goals in the first place. Evaluate what kind of data you need to track, the frequency of updates required, and who will be using the dashboard. For example, if you need to monitor daily operations, the operational type would be ideal. For long-term planning, the strategic type is more suitable.

Can dashboards integrate with existing business systems?

Yes, most of them can integrate with various business systems such as CRM, ERP, and marketing automation tools. This allows data flow from multiple sources into the dashboard.

What are some common mistakes to avoid in dashboard design?

These include overloading the visual report with too much information and using complex or confusing visuals. To avoid these, focus on simplicity and relevance.