St.

Mary’s University Business Research Method Group Work

DATA COLLECTION INSTRUMENT AND METHODS OF DATA ANALYSIS

Group member’s name and their id number:-

1 TAMENE YILMA………….

2 SEMIRA SEID …………………

3 TAYECH TESHOME………

4 TENAGNE GETAHUN…………..
5 ALEMSEGED HAILU………….

Submit to MISGANAW SOLOMOM (PhD.)

Addis Ababa, Ethiopia

Feb 24

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Contents
DATA COLLECTION INSTRUMENT AND METHODS OF DATA ANALYSIS ........................................................ 5

DATA COLLECTION INSTRUMENT ............................................................................................................. 5

What is Data Collection? ............................................................................................................................... 5

Types of Data Collection ............................................................................................................................... 5

Primary Data Collection ............................................................................................................................ 6

Qualitative Research Method ............................................................................................................... 6

Quantitative Method ............................................................................................................................ 6

Secondary Data Collection ........................................................................................................................ 6

IMPORTANCE OF DATA COLLECTION ............................................................................................................ 6

Integrity of the Research....................................................................................................................... 6

Reduce the likelihood of errors ............................................................................................................ 7

Making Decision .................................................................................................................................... 7

Save Cost and Time ............................................................................................................................... 7

WHAT IS A DATA COLLECTION TOOL? .......................................................................................................... 7

INTERVIEW ................................................................................................................................................ 8

QUESTIONNAIRES ..................................................................................................................................... 9

Research Journals ................................................................................................................................... 13

Surveys .................................................................................................................................................... 13

OBSERVATION ......................................................................................................................................... 13

FOCUS GROUPS ....................................................................................................................................... 15

COMBINATION RESEARCH .................................................................................................................. 16

METHODS OF DATA ANALYSIS .................................................................................................................... 21

Why Is Data Analysis Important? ................................................................................................................ 22

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What Is The Data Analysis Process?............................................................................................................ 22

Essential Types Of Data Analysis Methods ............................................................................................. 24

a) Descriptive analysis ......................................................................................................................... 24

b) Exploratory analysis ........................................................................................................................ 24

c) Diagnostic analysis .......................................................................................................................... 24

d) Predictive analysis........................................................................................................................... 24

e) Prescriptive analysis ........................................................................................................................ 25

Data Analysis Limitations & Barriers ........................................................................................................... 25

Data Analysis Techniques: ...................................................................................................................... 26

REFERENCES ................................................................................................................................................ 27

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DATA COLLECTION INSTRUMENT AND METHODS OF DATA
ANALYSIS

DATA COLLECTION INSTRUMENT

The underlying need for Data collection is to capture quality evidence that seeks to answer all the
questions that have been posed. Through data collection businesses or management can deduce quality
information that is a prerequisite for making informed decisions. To improve the quality of information,
it is expedient that data is collected so that you can draw inferences and make informed decisions on
what is considered factual.

At the end of this article, you would understand why picking the best data collection method is
necessary for achieving your set objective.

What is Data Collection?

Data collection is a methodical process of gathering and analyzing specific information to proffer
solutions to relevant questions and evaluate the results. It focuses on finding out all there is to a
particular subject matter. Data is collected to be further subjected to hypothesis testing which seeks to
explain a phenomenon.

For collectors of data, there is a range of outcomes for which the data is collected. But the key purpose
for which data is collected is to put a researcher in a vantage position to make predictions about future
probabilities and trends.

The core forms in which data can be collected are primary and secondary data. While the former is
collected by a researcher through first-hand sources, the latter is collected by an individual other than
the user.

Types of Data Collection

Before broaching the subject of the various types of data collection, It is pertinent to note that data
collection in itself falls under two broad categories; Primary data collection and secondary data
collection.

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Primary Data Collection
Primary data collection by definition is the gathering of raw data collected at the source. It is a process
of collecting the original data collected by a researcher for a specific research purpose. It could be
further analyzed into two segments; qualitative research and quantitative data collection methods.

Qualitative Research Method

The qualitative research methods of data collection do not involve the collection of data that involves
numbers or a need to be deduced through a mathematical calculation, rather it is based on the non-
quantifiable elements like the feeling or emotion of the researcher. An example of such a method is an
open-ended questionnaire.

Quantitative Method
Quantitative methods are presented in numbers and require a mathematical calculation to deduce. An
example would be the use of a questionnaire with close-ended questions to arrive at figures to be
calculated mathematically. Also, methods of correlation and regression, mean, mode and median.

Secondary Data Collection

Secondary data collection, on the other hand, is referred to as the gathering of second-hand data
collected by an individual who is not the original user. It is the process of collecting data that is already
existing, be it already published books, journals, and/or online portals. In terms of ease, it is much less
expensive and easier to collect.

 Your choice between Primary data collection and secondary data collection depends on the
nature, scope, and area of your research as well as its aims and objectives.

IMPORTANCE OF DATA COLLECTION

There are a bunch of underlying reasons for collecting data, especially for a researcher. Walking you
through them, here are a few reasons;

Integrity of the Research

A key reason for collecting data, be it through quantitative or qualitative methods is to ensure that the
integrity of the research question is indeed maintained.

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Reduce the likelihood of errors
The correct use of appropriate data collection of methods reduces the likelihood of errors consistent
with the results.

Making Decision
To minimize the risk of errors in decision-making, it is important that accurate data is collected so that
the researcher doesn’t make uninformed decisions.

Save Cost and Time

Data collection saves the researcher time and funds that would otherwise be misspent without a deeper
understanding of the topic or subject matter.

 To support a need for a new idea, change, and/or innovation

 To prove the need for a change in the norm or the introduction of new information that will be
widely accepted, it is important to collect data as evidence to support these claims.

WHAT IS A DATA COLLECTION TOOL?

Data collection tools refer to the devices/instruments used to collect data, such as a paper questionnaire
or computer-assisted interviewing system. Case Studies, Checklists, Interviews, Observation sometimes,
and Surveys or Questionnaires are all tools used to collect data.

It is important to decide the tools for data collection because research is carried out in different ways
and for different purposes. The objective behind data collection is to capture quality evidence that
allows analysis to lead to the formulation of convincing and credible answers to the posed questions.

The objective behind data collection is to capture quality evidence that allows analysis to lead to the
formulation of convincing and credible answers to the questions.

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  The following are the top 7 data collection methods for Academic, Opinion-based or product
research. Also discussed in detail is the nature, pros and cons of each one. At the end of this
segment, you will be best informed about which method best suits your research.

INTERVIEW
An interview is a face-to-face conversation between two individuals with the sole purpose of collecting
relevant information to satisfy a research purpose. Interviews are of different types namely; Structured,
Semi-structured, and unstructured with each having a slight variation from the other.

Use this interview consent form template to let an interviewee give you consent to use data gotten from
your interviews for investigative research purposes.

Structured Interviews – Simply put, it is a verbally administered questionnaire. In terms of depth, it is

surface level and is usually completed within a short period. For speed and efficiency, it is highly
recommendable, but it lacks depth.

Semi-structured Interviews – In this method, there subsist several key questions which cover the scope
of the areas to be explored. It allows a little more leeway for the researcher to explore the subject
matter.

Unstructured Interviews – It is an in-depth interview that allows the researcher to collect a wide range
of information with a purpose. An advantage of this method is the freedom it gives a researcher to
combine structure with flexibility even though it is more time-consuming.

Pros
In-depth information

Freedom of flexibility

Accurate data

Cons

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Time-consuming

Expensive to collect

What are the best Data Collection Tools for Interviews?

For collecting data through interviews, here are a few tools you can use to easily collect data.

Audio Recorder

An audio recorder is used for recording sound on disc, tape, or film. Audio information can meet the
needs of a wide range of people, as well as provide alternatives to print data collection tools.

Digital Camera

An advantage of a digital camera is that it can be used for transmitting those images to a monitor screen
when the need arises.

Camcorder

A camcorder is used for collecting data through interviews. It provides a combination of both an audio
recorder and a video camera. The data provided is qualitative in nature and allows the respondents to
answer questions asked exhaustively. If you need to collect sensitive information during an interview, a
corder might not work for you as you would need to maintain your subject’s privacy.

QUESTIONNAIRES
This is the process of collecting data through an instrument consisting of a series of questions and
prompts to receive a response from individuals it is administered to. Questionnaires are designed to
collect data from a group.

For clarity, it is important to note that a questionnaire isn’t a survey, rather it forms a part of it. A survey
is a process of data gathering involving a variety of data collection methods, including a questionnaire.

On a questionnaire, there are three kinds of questions used. They are; fixed-alternative, scale, and open-
ended. With each of the questions tailored to the nature and scope of the research.

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Pros

Can be administered in large numbers and is cost-effective.

It can be used to compare and contrast previous research to measure change.

Easy to visualize and analyze.

Questionnaires offer actionable data.

Respondent identity is protected.

Questionnaires can cover all areas of a topic.

Relatively inexpensive.

Cons

Answers may be dishonest or the respondents lose interest midway.

Questionnaires can’t produce qualitative data.

Questions might be left unanswered.

Respondents may have a hidden agenda.

Not all questions can be analyzed easily.

What are the best Data Collection Tools for Questionnaire?

Paper Questionnaire

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A paper questionnaire is a data collection tool consisting of a series of questions and/or prompts for the
purpose of gathering information from respondents. Mostly designed for statistical analysis of the
responses, they can also be used as a form of data collection.

REPORTING

By definition, data reporting is the process of gathering and submitting data to be further subjected to
analysis. The key aspect of data reporting is reporting accurate data because of inaccurate data
reporting leads to uninformed decision making.

Pros

Informed decision-making.

Easily accessible.

Cons

Self-reported answers may be exaggerated.

The results may be affected by bias.

Respondents may be too shy to give out all the details.

Inaccurate reports will lead to uninformed decisions.

What are the best Data Collection Tools for Reporting?

Reporting tools enable you to extract and present data in charts, tables, and other visualizations so users
can find useful information. You could source data for reporting from Non-Governmental Organizations
(NGO) reports, newspapers, website articles, hospital records.

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NGO Reports

Contained in NGO reports is an in-depth and comprehensive report on the activities carried out by the
NGO, covering areas such as business and human rights. The information contained in these reports is
research-specific and forms an acceptable academic base for collecting data. NGOs often focus on
development projects which are organized to promote particular causes.

Newspapers

Newspaper data are relatively easy to collect and are sometimes the only continuously available source
of event data. Even though there is a problem of bias in newspaper data, it is still a valid tool in
collecting data for Reporting.

Website Articles

Gathering and using data contained in website articles is also another tool for data collection. Collecting
data from web articles is a quicker and less expensive data collection Two major disadvantages of using
this data reporting method are biases inherent in the data collection process and possible
security/confidentiality concerns.

Existing Data

This is the introduction of new investigative questions in addition to/other than the ones originally used
when the data was initially gathered. It involves adding measurement to a study or research. An
example would be sourcing data from an archive.

Pros

Accuracy is very high.

Easily accessible information.

Cons

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Problems with evaluation.

Difficulty in understanding.

What are the Best Data Collection Tools for Existing Data?

The concept of Existing data means that data is collected from existing sources to investigate research
questions other than those for which the data were originally gathered. Tools to collect existing data
include:

Research Journals – Unlike newspapers and magazines, research journals are intended for an
academic or technical audience, not general readers. A journal is a scholarly publication containing
articles written by researchers, professors, and other experts.

Surveys – A survey is a data collection tool for gathering information from a sample population, with
the intention of generalizing the results to a larger population. Surveys have a variety of purposes and
can be carried out in many ways depending on the objectives to be achieved.

OBSERVATION
This is a data collection method by which information on a phenomenon is gathered through
observation. The nature of the observation could be accomplished either as a complete observer, an
observer as a participant, a participant as an observer, or as a complete participant. This method is a key
base for formulating a hypothesis.

Pros

Easy to administer.

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There subsists a greater accuracy with results.

It is a universally accepted practice.

It diffuses the situation of an unwillingness of respondents to administer a report.

It is appropriate for certain situations.

Cons

Some phenomena aren’t open to observation.

It cannot be relied upon.

Bias may arise.

It is expensive to administer.

Its validity cannot be predicted accurately.

What are the best Data Collection Tools for Observation?

Observation involves the active acquisition of information from a primary source. Observation can also
involve the perception and recording of data via the use of scientific instruments. The best tools for
Observation are:

Checklists – state-specific criteria, allow users to gather information and make judgments about what
they should know in relation to the outcomes. They offer systematic ways of collecting data about
specific behaviors, knowledge, and skills.

Direct observation – This is an observational study method of collecting evaluative information. The
evaluator watches the subject in his or her usual environment without altering that environment.

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FOCUS GROUPS
The opposite of quantitative research which involves numerical-based data, this data collection method
focuses more on qualitative research. It falls under the primary category for data based on the feelings
and opinions of the respondents. This research involves asking open-ended questions to a group of
individuals usually ranging from 6-10 people, to provide feedback.

Pros

Information obtained is usually very detailed.

Cost-effective when compared to one-on-one interviews.

It reflects speed and efficiency in the supply of results.

Cons

Lacking depth in covering the nitty-gritty of a subject matter.

Bias might still be evident.

Requires interviewer training

The researcher has very little control over the outcome.

A few vocal voices can drown out the rest.

Difficulty in assembling an all-inclusive group.

What are the best Data Collection Tools for Focus Groups?

A focus group is a data collection method that is tightly facilitated and structured around a set of
questions. The purpose of the meeting is to extract from the participants’ detailed responses to these
questions. The best tools for tackling Focus groups are:

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Two-Way – One group watches another group answer the questions posed by the moderator. After
listening to what the other group has to offer, the group that listens are able to facilitate more
discussion and could potentially draw different conclusions.

Dueling-Moderator – There are two moderators who play the devil’s advocate. The main positive of the
dueling-moderator focus group is to facilitate new ideas by introducing new ways of thinking and
varying viewpoints.

COMBINATION RESEARCH
This method of data collection encompasses the use of innovative methods to enhance participation to
both individuals and groups. Also under the primary category, it is a combination of Interviews and
Focus Groups while collecting qualitative data. This method is key when addressing sensitive subjects.

Pros

Encourage participants to give responses.

It stimulates a deeper connection between participants.

The relative anonymity of respondents increases participation.

It improves the richness of the data collected.

Cons

It costs the most out of all the top

It’s the most time-consuming.

What are the best Data Collection Tools for Combination Research?

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The Combination Research method involves two or more data collection methods, for instance,
interviews as well as questionnaires or a combination of semi-structured telephone interviews and focus
groups. The best tools for combination research are:

Online Survey – The two tools combined here are online interviews and the use of questionnaires. This
is a questionnaire that the target audience can complete over the Internet. It is timely, effective and
efficient. Especially since the data to be collected is quantitative in nature.

Dual-Moderator – The two tools combined here are focus groups and structured questionnaires. The
structured questioners give a direction as to where the research is headed while two moderators take
charge of proceedings. Whilst one ensures the focus group session progresses smoothly, the other
makes sure that the topics in question are all covered. Dual-moderator focus groups typically result in a
more productive session and essentially lead to an optimum collection of data.

7 Tips to Create the Best Surveys for Data Collections

Define the goal of your survey – Once the goal of your survey is outlined, it will aid in deciding which
questions are the top priority. A clear attainable goal would, for example, mirror a clear reason as to
why something is happening. e.g. “The goal of this survey is to understand why Employees are leaving
an establishment.”

Use close-ended clearly defined questions – Avoid open-ended questions and ensure you’re not
suggesting your preferred answer to the respondent. If possible offer a range of answers with choice
options and ratings.

Survey outlook should be attractive and Inviting – An attractive-looking survey encourages a higher
number of recipients to respond to the survey. Check out Formplus builder for colorful options to
integrate into your survey design. You could use images and videos to keep participants glued to their
screens.

Assure Respondents about the safety of their data – You want your respondents to be assured whilst
disclosing details of their personal information to you. It’s your duty to inform the respondents that the
data they provide is confidential and only collected for the purpose of research.

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Ensure your survey can be completed in record time – Ideally, in a typical survey, users should be able to
respond in 100 seconds. It is pertinent to note that they, the respondents, are doing you a favor. Don’t
stress them. Be brief and get straight to the point.

Do a trial survey – Preview your survey before sending out your surveys to the intended respondents.
Make a trial version which you’ll send to a few individuals. Based on their responses, you can draw
inferences and decide whether or not your survey is ready for the big time.

Attach a reward upon completion for users – Give your respondents something to look forward to at the
end of the survey. Think of it as a penny for their troubles. It could well be the encouragement they
need to not abandon the survey midway.

What is best data collection method for qualitative data?

Ans: Combination Research

The best data collection method for a researcher for gathering qualitative data which generally is data
relying on the feelings, opinions and beliefs of the respondents would be Combination Research.

The reason why combination research is the best fit is that it encompasses the attributes of Interviews
and Focus Groups. It is also useful when gathering data that is sensitive in nature. It can be described as
all-purpose quantitative data collection method.

Above all, combination research improves the richness of data collected when compared with other
data collection methods for qualitative data.

What is best data collection method for quantitative research data?

Ans: Questionnaire

The best data collection method a researcher can employ in gathering quantitative data which takes into
consideration data that can be represented in numbers and figures that can be deduced mathematically
is the Questionnaire.

These can be administered to a large number of respondents, while saving cost. For quantitative data
that may be bulky or voluminous in nature, the use of a Questionnaire makes such data easy to visualize
and analyze.
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Another key advantage of the Questionnaire is that it can be used to compare and contrast previous
research work done to measure changes.

SUMMARY OF DATA COLLECTION TOOLS THAT HELP TAKE SENSIBLE DECISIONS

Data collection is the process of gathering and measuring information on variables of interest, in an
established systematic fashion that enables one to answer stated research questions, test hypotheses,
and evaluate outcomes.

Data collection tools are the devices or instruments for gathering data, such as a paper questionnaire or
computer-assisted interviewing system.

Interviews

Questionnaires

Case Studies

Usage Data

Checklists

Surveys

Observations

Documents and records

Focus groups

Oral histories

Types of Data Collection

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Primary Data Collection

Secondary Data Collection

primary data collection is the process of gathering raw data by researchers directly from main sources
through surveys, interviews, or experiments. Now, it can be further classified into two categories-

Quantitative Data Collection Methods

Qualitative Data Collection Methods

Qualitative Data Collection Methods: Qualitative research methods usually work based on non-
quantifiable elements such as the feeling or emotions of the researcher. In addition, it doesn’t require
any mathematical calculation to collect any numerical data. For instance, an example of this method can
be an open-ended questionnaire.

Quantitative Data Collection Methods: Quantitative methods use mathematical calculations to deduce
useful data and present them in numbers. For instance, you can take the questionnaire with close-ended
questions. It produces figures after mathematical calculation. Also, methods of correlation and
regression, mean, mode and median.

Secondary Data Collection

Secondary data is the type of data that has already been collected by another person or organization for
a different purpose, e.g. reporting or research. You can collect these data from magazines, newspapers,
books, blogs, journals, etc.

Consider the following attributes before utilizing a Data Collection Tool-

Variable Type: Consider the type of information you want to collect, your research niche, and the
ultimate objectives of the research.

Study design: Select the approach you’ll follow to collect this information.

Data collection technique: Decide techniques and tools you prefer to collect data

Sample data: Decide the place you want to collect data. This actually refers to the population to be
sampled. Also, figure out which part of the population will be included in your investigation.
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Sample size: Consider how many subjects you want to include in your study

Sample design: Also, think about the way you’ll select the sample

METHODS OF DATA ANALYSIS

Focuses on:-

1) What Is Data Analysis?

2) Why Is Data Analysis Important?

3) What Is The Data Analysis Process?

4) Types of Data Analysis Methods

5) Data Analysis Limitations & Barriers

6) Data Analysis in the Big Data Environment

Data analysis is the process of collecting, modeling, and analyzing data to extract insights that support
decision-making. There are several methods and techniques to perform analysis depending on the
industry and the aim of the investigation.

All these various methods are largely based on two core areas: quantitative and qualitative research.

To explain the key differences between qualitative and quantitative research, here’s a video for your
viewing pleasure:

Gaining a better understanding of different techniques and methods in quantitative research as well as
qualitative insights will give your analyzing efforts a more clearly defined direction, so it’s worth taking

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the time to allow this particular knowledge to sink in. Additionally, you will be able to create a
comprehensive analytical report that will skyrocket your analysis.

Why Is Data Analysis Important?

Before we go into detail about the categories of analysis along with its methods and techniques, you
must understand the potential that analyzing data can bring to your organization.

Informed decision-making: From a management perspective, you can benefit from analyzing your data
as it helps you make decisions based on facts and not simple intuition. For instance, you can understand
where to invest your capital, detect growth opportunities, predict your incomes, or tackle uncommon
situations before they become problems. Like this, you can extract relevant insights from all areas in
your organization, and with the help of dashboard software, present the information in a professional
and interactive way to different stakeholders.

Reduce costs: Another great benefit is to reduce costs. With the help of advanced technologies such as
predictive analytics, businesses can spot improvement opportunities, trends, and patterns in their data
and plan their strategies accordingly. In time, this will help you save money and resources on
implementing the wrong strategies. And not just that, by predicting different scenarios such as sales and
demand you can also anticipate production and supply.

Target customers better: Customers are arguably the most crucial element in any business. By using
analytics to get a 360° vision of all aspects related to your customers, you can understand which
channels they use to communicate with you, their demographics, interests, habits, purchasing behaviors,
and more. In the long run, it will drive success to your marketing strategies, allow you to identify new
potential customers, and avoid wasting resources on targeting the wrong people or sending the wrong
message. You can also track customer satisfaction by analyzing your client’s reviews or your customer
service department’s performance.

What Is The Data Analysis Process?

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When we talk about analyzing data there is an order to follow in order to extract the needed
conclusions. The analysis process consists of 5 key stages. We will cover each of them more in detail
later in the post, but to start providing the needed context to understand what is coming next, here is a
rundown of the 5 essential steps of data analysis.

Identify: Before you get your hands dirty with data, you first need to identify why do you need it in the
first place. The identification is the stage in which you establish the questions you will need to answer.
For example, what is the customer's perception of our brand? Or what type of packaging is more
engaging to our potential customers? Once the questions are outlined you are ready for the next step.

Collect: As its name suggests, this is the stage where you start collecting the needed data. Here, you
define which sources of information you will use and how you will use them. The collection of data can
come in different forms such as internal or external sources, surveys, interviews, questionnaires, focus
groups, among others. An important note here is that the way you collect the information will be
different in a quantitative and qualitative scenario.

Clean: Once you have the necessary data it is time to clean it and leave it ready for analysis. Not all the
data you collect will be useful, when collecting big amounts of information in different formats it is very
likely that you will find yourself with duplicate or badly formatted data. To avoid this, before you start
working with your data you need to make sure to erase any white spaces, duplicate records, or
formatting errors. This way you avoid hurting your analysis with incorrect data.

Analyze: With the help of various techniques such as statistical analysis, regressions, neural networks,
text analysis, and more, you can start analyzing and manipulating your data to extract relevant
conclusions. At this stage, you find trends, correlations, variations, and patterns that can help you
answer the questions you first thought of in the identify stage. Various technologies in the market
assists researchers and average business users with the management of their data. Some of them
include business intelligence and visualization software, predictive analytics, data mining, among others.

Interpret: Last but not least you have one of the most important steps: it is time to interpret your results.
This stage is where the researcher comes up with courses of action based on the findings. For example,

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here you would understand if your clients prefer packaging that is red or green, plastic or paper, etc.
Additionally, at this stage, you can also find some limitations and work on them.

Essential Types Of Data Analysis Methods

a) Descriptive analysis - What happened

The descriptive analysis method is the starting point to any analytic reflection, and it aims to answer the
question of what happened? It does this by ordering, manipulating, and interpreting raw data from
various sources to turn it into valuable insights for your organization.

b) Exploratory analysis - How to explore data relationships.

As its name suggests, the main aim of the exploratory analysis is to explore. Prior to it, there was still no
notion of the relationship between the data and the variables. Once the data is investigated, the
exploratory analysis enables you to find connections and generate hypotheses and solutions for specific
problems. A typical area of application for it is data mining.

c) Diagnostic analysis - Why it happened.

Diagnostic data analytics empowers analysts and executives by helping them gain a firm contextual
understanding of why something happened. If you know why something happened as well as how it
happened, you will be able to pinpoint the exact ways of tackling the issue or challenge.

d) Predictive analysis - What will happen

The predictive method allows you to look into the future to answer the question: what will happen? In
order to do this, it uses the results of the previously mentioned descriptive, exploratory, and diagnostic
analysis, in addition to machine learning (ML) and artificial intelligence (AI). Like this, you can uncover
future trends, potential problems or inefficiencies, connections, and casualties in your data.

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e) Prescriptive analysis - How will it happen.

Another of the most effective types of analysis methods in research. Prescriptive data techniques cross
over from predictive analysis in the way that it revolves around using patterns or trends to develop
responsive, practical business strategies.

Data Analysis Limitations & Barriers

Analyzing data is not an easy task. As you’ve seen throughout this post, there are many steps and
techniques that you need to apply in order to extract useful information from your research. While a
well-performed analysis can bring various benefits to your organization it doesn't come without
limitations. In this section, we will discuss some of the main barriers you might encounter when
conducting an analysis. Let’s see them more in detail.

Objectivity: Arguably one of the biggest barriers when it comes to data analysis in research is to stay
objective. When trying to prove a hypothesis, researchers might find themselves, intentionally or
unintentionally, directing the results towards an outcome that they want. To avoid this, always question
your assumptions and avoid confusing facts with opinions. You can also show your findings to a research
partner or external person to confirm that your results are objective.

Flawed correlation: Misleading statistics can significantly damage your research. We’ve already pointed
out a few interpretation issues previously on the post, but it is an important barrier that we can't avoid
addressing here as well. Flawed correlations occur when two variables appear related to each other but
they are not. Confusing correlations with causation can lead to a wrong interpretation of results which
can lead to building wrong strategies and loss of resources, therefore, it is very important to identify the
different interpretation mistakes and avoid them.

Privacy concerns: In some cases, data collection can be subjected to privacy regulations. Businesses
gather all kinds of information from their customers from purchasing behaviors to addresses and phone
numbers. If this falls into the wrong hands due to a breach, it can affect the security and confidentiality
of your clients. To avoid this issue, you need to collect only the data that is needed for your research and,
if you are using sensitive facts, make it anonymous so customers are protected. The misuse of customer
data can severely damage a business's reputation, so it is important to keep an eye on privacy.
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Lack of communication between teams: When it comes to performing data analysis on a business level,
it is very likely that each department and team will have different goals and strategies. However, they
are all working for the same common goal of helping the business run smoothly and keep growing.
When teams are not connected and communicating with each other, it can directly affect the way
general strategies are built. To avoid these issues, tools such as data dashboards enable teams to stay
connected through data in a visually appealing way.

Innumeracy: Businesses are working with data more and more every day. While there are many BI tools
available to perform effective analysis, data literacy is still a constant barrier. Not all employees know
how to apply analysis techniques or extract insights from them. To prevent this from happening, you can
implement different training opportunities that will prepare every relevant user to deal with data.

Data Analysis Techniques:

 Collaborate your needs

 Establish your questions

 Data democratization

 Think of data governance

 Clean your data

 Set your KPIs

 Omit useless data

 Build a data management roadmap

 Integrate technology

 Answer your questions

 Visualize your data

 Interpretation of data

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  Consider autonomous technology

 Build a narrative

 Share the load

 Data Analysis tools

 Refine your process constantly

REFERENCES
https://www.law.cornell.edu/cfr/text/45/63.32#:~:text=%E2%80%9CData%2Dcollection%20instruments
%E2%80%9D%20means,from%2010%20or%20more%20respondents.

https://www.gfmer.ch/SRH-Course-2013/Geneva-Workshop/pdf/Data-collection-instruments-Abawi-
2014.pdf
https://www.scribbr.com/methodology/sampling-methods/
https://www.datapine.com/blog/data-analysis-methods-and-techniques/
https://books.google.com/books?id=XphcKk7VBqUC&printsec=frontcover&dq=inauthor:%22Siegmund+
Brandt%22&hl=en&sa=X&ved=2ahUKEwiY-KHpyKz9AhV7xQIHHfZhAKoQ6AF6BAgGEAI
https://www.google.com/search?sa=X&biw=683&bih=317&tbm=bks&sxsrf=AJOqlzUnNmQSy-FW-
wjiFcuzSxtISkQvvQ:1677187185070&tbm=bks&q=inauthor:%22James+E.+Sallis%22&ved=2ahUKEwig5Yy
Tyaz9AhVJqaQKHc1IADIQ9Ah6BAgPEAU

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