Narrative and Numbers: The Value of Stories in Business (Columbia Business School Publishing)

by Aswath Damodaran

There are three steps in the data-to-information process, and this chapter will be built around these steps, since at each step there is both promise and peril. 1. Data collection: The first step is collecting the data. In some cases, this can be as simple as accessing a computerized database. In others, it will require running experiments or surveys. 2. Data analysis: Once the data has been collected, not only does it have to be summarized and described, but you have to look for relationships in the data that you can use in your decision making. It is at this stage that statistical analysis comes into play. 3. Presentation: Having analyzed the data, you have to present it, not only so others can see and use the information you have gleaned from the data, but so you yourself have a sense of what that information is.