The word interpret is defined as:
- to give or provide the meaning of; explain; elucidate;
- to find the hidden meaning of;
- to understand in a particular way;
- to bring out the meaning of.
Thus, interpreting is the process of finding the hidden meaning in something and explaining that meaning in a particular way.
What Is Data Interpretation?
Before data can be interpreted, it needs to be analyzed. Data analysis refers to the process of using diverse analytical methods to review, categorize, manipulate, and summarize data. Data interpretation on the other hand, involves looking for meaning, explaining that meaning, and arriving at relevant conclusions to answer critical questions. The steps involved in data interpretation are a function of the type of data collected and will vary depending on the purpose of the research. From a business point of view, this is a very important process because it is the answers to the ‘critical questions’ that are the foundation of business strategy and tactics.
Steps in the Data Interpretation Process:
Step 1: Collect the Information you will be interpreting.
Make sure that you have all the information that you will need for data interpretation. This may be an iterative process while you home in on the critical questions to be answered. It may be beneficial to arrange the data into tables or graphs to get a feel of what you have and to identify any areas that are missing. You should also be cognizant of the methods, processes, and equipment used to collect the data. Each method, process, and type of equipment has advantages and limitations which can have a direct bearing on the findings and can constrain the conclusions.
Step 2: Develop Findings
Findings are general observations about the data. They are summary statements concerning the important points that speak to the ‘critical questions’ that prompted the research. They are the basis on which conclusions are drawn. Depending on the nature of the research, you may compare your results with industry standards or internal standards that you set.
Step 3: Develop Conclusions
Conclusions are explanations of why the data looks the way it does. They should relate back to the ‘critical questions’ that prompted the research. If you decide that your data in incomplete and definitive conclusions cannot be reached, you may need to conduct further research. You will never have all the data or information that you need to make a perfect decision so you will have to determine the amount that is necessary and sufficient to make an informed one.
Step 4: Develop Recommendations
Recommendations are the final step and are based on the conclusions. They represent the action that should be taken on the ‘critical questions’. For businesses, these recommendations guide strategy formation and the tactics necessary to accomplish the strategy. If you opt to outsource the data collection and interpretation to a marketing research and/or consulting firm, they will provide you with the recommendations and inform you as to what possible strategies and/or tactics you should enact.