The DataViz Business
Is there a market in Europe for a data visualization agency or is it still too much a niche sector? Who is interested in data visualization services? How do you succeed in this sector? Paolo Guadagni, founder of The Visual Agency, one of the first companies dedicated to data visualization in Italy, answers these and other questions.

Q: Let’s start with a very general question. How did the idea of creating an agency dedicated to data visualization come about?

A: Before opening in 2011 The Visual Agency, I managed a communication agency specialized in Internet PR, which had as client the Italian Nuclear Forum, the body in charge of explaining to Italians the benefits of nuclear energy, for which we curated communication on the web. With them emerged the need to explain to a large audience in a comprehensible way a large amount of scientific data: a DataViz expert was needed. I found this skill at “Politecnico di Milano”, where Prof. Ciuccarelli founded Density Design, a research center specialized in data design and visualization. After talking an hour with the Professor, I decided to give up the Digital PR and dedicate myself fully to the data visualization.

Q: Has the link with the University continued?

A: Yes, it continues today and is fundamental for us. Almost all our designers come from the Politecnico. The research center’s skills are truly unique. The Professor after then became a a shareholder of The Visual Agency and we collaborate on various projects.

Q: Let’s leave the university field, who is interested in buying data visualization products or services?

A: Anyone within an organization, a company or an organization has to manage, analyze and explain data, and therefore is a potential customer for us. Potentially it is a huge market. We usually divide it into three major categories: publishers, enterprises, public administration. These three sectors have very different needs; in these 7 years of activity we have served above all the business sector.

Q: So limiting ourselves to companies, which divisions and company roles are more interested?

A: In the company, the numbers are managed by different entities: marketing and communication manage an exponentially growing amount of data due to new technologies and the Internet. Also the production area, with the diffusion of IOT technologies, will soon become a “consumer” of data visualization. But numbers and complexity also lurk in unsuspected wards: for example, Marketing Directors often call us to visualize numbers and concepts linked to Corporate Social Responsibility.

Q: Since we are talking about clients, here is a classic question, is the customer always right and how is your relationship with clients?

A: No, the customer is not always right. It is as if the patient was always right when he goes to the doctor, or when a person turns to a lawyer. It is also true, however, that the agency must understand and know the client before recommending it, exactly as the doctor must know the patient and ask the right questions before giving the diagnosis. Working with a few stable customers over time helps to get to know one another and understand each other’s needs. Clients “numbers” are usually quite complex. Knowing their markets, their metrics, their “units of measure” help us producing what they really need.

Q: If a reader wants to open a data visualization agency, what are your suggestions?

A: Skills and funds. Skill is easy to understand, but do not underestimate investments. To start, as every business, we needed capital to face the first year of activity, which is always the most difficult one. In my case, I personally invested everything I had gained from selling the shares of my previous company. It was therefore not necessary to ask bank for loans or ask to funds specialized in startups. We were therefore lucky in this regard. Funds are not so willing to invest in consulting companies, like ours. They usually prefer startups where you set up a platform, you develop a software, you have assets that can be easily evaluated when the funds want to exit the startup and monetize the investment.

Q: Beyond the funds, what are the suggestions for those who want to open a similar reality?

A: 1. Clients. An initial customer list helps starting with some real project. In our case, ideal customers are large companies: these companies actually have budgets to explore new features, new projects and are also reliable from an economic point of view.

2. Quality. Try to keep high the quality and originality of the projects, but without disdaining some less creative work, that allows you to survive economically in the first initial phase.

3. Team. Invest in people. As every consulting business, your assets are the professionals you hire. A stable, up-to-date, motivated team always makes the difference. Furthermore customers in addition to creativity require execution skills and tight respect of deadlines. To satisfy clients you need a slightly oversized team to ensure redundancy

4. Reputation. Never trick anyone. Reputation in the market is essential. It is the only asset that really matters. Potential customers are always hesitant to rely on a new vendor, but once they appreciate your service they will never leave you. They will spread the word in their company helping you getting new assignments. When they change job they will be willing to call you in their new position.

Q: Have you never made mistakes?

A: Oh yes, we have made them, especially at the beginning. My lack of experience in the sector at the beginning meant that we systematically underestimated the value of our work. In practice we sold them off. Another mistake is to understimate the complexity of interactive projects. Our first projects have turned into huge black holes that have absorbed all the energies of the agency with quality problems and customer dissatisfaction. In fact, the interactive requires multi-specialized teams constantly updated on new technologies, and requires to specify precisely the scope of work with the customer, for ex. the maintenance of software, the integration of our dataviz part with other IT assets of the client, etc. Here too we learned from mistakes, but the road is still long.

Q: Being in Italy is a problem?

A: Yes and no. The Italian market is a small market and not particularly inclined to invest in new technologies. On the other hand, Italy is a very important country for design, as well as for information design — the discipline that studies the visualization of data and information. There is therefore a very favorable humus also thanks to the research center of the Politecnico di Milano.

Q: Going back would you do it again?

A: Absolutely yes!
['The Visual Agency Editorial']
['Data Visualization', 'Dataviz', 'Infographics', 'Business', 'Information Design']