I've seen apps with this functionality but not quite sure how to implement it
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You are looking for a formula field like...
...more examples of which are found here. No app exchange products or VF necessary.
Yes, the easiest way to get a nice library of icons to use is to install the Graphics Pack app by Labs...
Then, you can simply create formula fields to create and image tag. Your logic in the formula will decide what image to show.
Here is one of the formulas we use in our org to flag cases with either red, yellow, or green based on a formula field that we created to calculate the number of days a case has been open for...
The links to the images can be obtained by browsing the images in the Graphics Pack Overview tab and right clicking to copy the link.
Here's what it looks like in our Case list views...
It takes a bit of time to set it up but it's pretty easy.
This can easily be done in a custom Visualforce page. In the VF page, you can use conditional logic in the