{"id":18118,"date":"2023-05-03T10:00:00","date_gmt":"2023-05-03T08:00:00","guid":{"rendered":"https:\/\/parm.com\/?p=18118"},"modified":"2026-09-28T08:01:21","modified_gmt":"2026-09-28T06:01:21","slug":"why-data-can-lie-2","status":"publish","type":"post","link":"https:\/\/parm.com\/en\/why-data-can-lie-2\/","title":{"rendered":"Why data can lie"},"content":{"rendered":"<div class=\"et_pb_section_0 et_pb_section et_section_regular et_block_section\">\n<div class=\"et_pb_row_0 et_pb_row et_block_row\">\n<div class=\"et_pb_column_0 et_pb_column et_pb_column_4_4 et-last-child et_block_column et_pb_css_mix_blend_mode_passthrough\">\n<div class=\"et_pb_text_0 et_pb_text et_pb_bg_layout_light et_pb_module et_block_module preset--module--divi-text--default\"><div class=\"et_pb_text_inner\"><h1>Why data can lie<\/h1>\n<p>This is why you should not fully trust your data<\/p>\n<\/div><\/div>\n\n<div class=\"et_pb_image_0 et_pb_image et_pb_module et_flex_module\"><span class=\"et_pb_image_wrap\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/parm.com\/wp-content\/uploads\/2023\/03\/Post_Data_lie.jpg\" alt=\"Why data can lie\" title=\"Post_Data_lie\" width=\"2500\" height=\"1313\" srcset=\"https:\/\/parm.com\/wp-content\/uploads\/2023\/03\/Post_Data_lie.jpg 2500w, https:\/\/parm.com\/wp-content\/uploads\/2023\/03\/Post_Data_lie-1280x672.jpg 1280w, https:\/\/parm.com\/wp-content\/uploads\/2023\/03\/Post_Data_lie-980x515.jpg 980w, https:\/\/parm.com\/wp-content\/uploads\/2023\/03\/Post_Data_lie-480x252.jpg 480w\" sizes=\"(min-width: 0px) and (max-width: 480px) 480px, (min-width: 481px) and (max-width: 980px) 980px, (min-width: 981px) and (max-width: 1280px) 1280px, (min-width: 1281px) 2500px, 100vw\" class=\"wp-image-18132\" \/><\/span><\/div>\n<\/div>\n<\/div>\n\n<div class=\"et_pb_row_1 et_pb_row et_block_row\">\n<div class=\"et_pb_column_1 et_pb_column et_pb_column_4_4 et-last-child et_block_column et_pb_css_mix_blend_mode_passthrough\">\n<div class=\"et_pb_text_1 et_pb_text et_pb_bg_layout_light et_pb_module et_block_module preset--module--divi-text--default\"><div class=\"et_pb_text_inner\"><p>Many companies are trying to collect as much data as possible and use business intelligence (BI) solutions to analyse it and make decisions. But are you aware that data can sometimes lie? Yes, you read that correctly - data can be misleading and therefore lead to incorrect decisions. We explain how and why data can lie, and what steps you can take to ensure that your BI solution delivers reliable as well as accurate results.   <\/p>\n<\/div><\/div>\n\n<div class=\"et_pb_text_2 et_pb_text et_pb_bg_layout_light et_pb_module et_block_module preset--module--divi-text--default\"><div class=\"et_pb_text_inner\"><div id=\"ez-toc-container\" class=\"ez-toc-v2_0_88 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<span class=\"ez-toc-title-toggle\"><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/parm.com\/en\/why-data-can-lie-2\/#Why_you_shouldnt_fully_trust_data\" >Why you shouldn&#8217;t fully trust data<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/parm.com\/en\/why-data-can-lie-2\/#Why_data_can_lie\" >Why data can lie<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/parm.com\/en\/why-data-can-lie-2\/#What_can_be_done_to_avoid_these_errors\" >What can be done to avoid these errors?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/parm.com\/en\/why-data-can-lie-2\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Why_you_shouldnt_fully_trust_data\"><\/span>Why you shouldn&#8217;t fully trust data<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>We make decisions based on different data every day so that we don't have to base these decisions on intuition. By doing this, we assume that we are making the right decision. Since we rely so heavily on the underlying data in this way, it is important to be aware that data can lie \u2013 especially when we make important decisions that can have far-reaching consequences for our business. If the results of the analysis are inaccurate or wrong, they can lead to incorrect decisions, which in turn can lead to financial losses, a bad reputation, customer loss, or even legal disputes. In addition, faulty data analysis results can also undermine confidence in a company's ability to analyse data and can thus negatively impact business outcomes. Therefore, it is crucial to be aware that the data can sometimes be misleading and to take appropriate measures to ensure that the analysis results are always reliable and accurate.     <\/p>\n<\/div><\/div>\n\n<div class=\"et_pb_text_3 et_pb_text et_pb_bg_layout_light et_pb_module et_block_module preset--module--divi-text--default\"><div class=\"et_pb_text_inner\"><h2><span class=\"ez-toc-section\" id=\"Why_data_can_lie\"><\/span>Why data can lie<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>There are numerous reasons why data can be misleading:<\/p>\n<\/div><\/div>\n\n<div class=\"et_pb_text_4 et_pb_text et_pb_bg_layout_light et_pb_module et_block_module preset--module--divi-text--default\"><div class=\"et_pb_text_inner\"><h3>1. Faulty Data:<\/h3>\n<p>If the data fed into the BI solution is faulty, it can lead to incorrect conclusions. Various factors can be responsible for this: <\/p>\n<ul>\n<li><strong>Data Quality:<\/strong> If data quality is not high, the data used may be incorrect, incomplete, or inconsistent. To learn why this can happen and how good Data Quality Management helps to ensure high data quality, read the article \"Data Quality Management\". <\/li>\n<li><strong>Timeliness:<\/strong> If the data on which the analysis is based is outdated, the analysis cannot reflect current market conditions or changes in the industry, which can lead to false results and reduce the relevance of previous analyses and data.<\/li>\n<li><strong>Data Source:<\/strong> If the data sources used are not good, the analyses in your BI system can also be wrong. For example, data that has been manually entered or combined when from different sources can be incorrect, incomplete, or inconsistent. Furthermore, if data sources are not correctly linked, analyses can be biased. This happens, for example, if you want to analyse which countries most of your customers come from, but do not consistently maintain the country in your CRM system when creating customer data, so that the data source is inadequate. Therefore, it is important to ensure that the data comes from a reliable source.    <\/li>\n<\/ul>\n<\/div><\/div>\n\n<div class=\"et_pb_text_5 et_pb_text et_pb_bg_layout_light et_pb_module et_block_module preset--module--divi-text--default\"><div class=\"et_pb_text_inner\"><h3>2. Poor Data Collection:<\/h3>\n<p>If the analysis techniques used in data collection are incorrect or not applied correctly, the results can be biased. For example, a poor choice of statistical methods or an inadequate interpretation of results can lead to false conclusions. Lack of validation can also be problematic as without it, it is not ensured that the analysis methods or algorithms were correctly applied and that the results are plausible and understandable. This can happen, for example, if you conduct a survey but do not take all relevant factors into account, ask the wrong questions, or do not clearly define the answer options. This influences the results of the survey, so the result is not correct. It is also possible that the analysis method is influenced by unconscious biases beforehand, so that the results of the analysis are incorrect.     <\/p>\n<\/div><\/div>\n\n<div class=\"et_pb_text_6 et_pb_text et_pb_bg_layout_light et_pb_module et_block_module preset--module--divi-text--default\"><div class=\"et_pb_text_inner\"><h3>3. Selection Bias:<\/h3>\n<p>If the data used for analysis is not representative, this can lead to bias. The same applies if the data is not sufficient to adequately represent the question or problem. This is the case, for example, if you collect product reviews on a specific platform that is mainly used by a special segment of your customers. In this case, the reviews are not representative of the opinion of all your customers. The picture you get through the reviews is therefore distorted.    <\/p>\n<\/div><\/div>\n\n<div class=\"et_pb_text_7 et_pb_text et_pb_bg_layout_light et_pb_module et_block_module preset--module--divi-text--default\"><div class=\"et_pb_text_inner\"><h3>4. Processing Bias:<\/h3>\n<p>If the data is not processed correctly, this can also lead to bias. For example, if you collect data to capture the income level of your customers but define the upper and lower limits of income incorrectly, the results of the analysis can reflect a distorted picture. <\/p>\n<\/div><\/div>\n\n<div class=\"et_pb_text_8 et_pb_text et_pb_bg_layout_light et_pb_module et_block_module preset--module--divi-text--default\"><div class=\"et_pb_text_inner\"><h3>5. Faulty Interpretation:<\/h3>\n<p>Interpreting the available data correctly and drawing correct conclusions is a difficult task. If the person performing the analysis does not have sufficient expertise or understanding of the underlying data, mistakes can quickly occur. For example, most customers are more likely to be tempted to give an online review of your company or product if they are dissatisfied with the performance. If you are not aware of this, you could conclude from negative reviews that the majority of your customers are dissatisfied, even if this is not the case.   <\/p>\n<\/div><\/div>\n\n<div class=\"et_pb_text_9 et_pb_text et_pb_bg_layout_light et_pb_module et_block_module preset--module--divi-text--default\"><div class=\"et_pb_text_inner\"><h3>6. False assumptions:<\/h3>\n<p>If the assumptions underlying the analysis are incorrect, the results can also be biased. For example, assuming incorrect market conditions or customer needs may lead you to believe that customers would not buy your product if a certain feature were missing. However, customers may find this particular feature unnecessary or may buy your product for other reasons.  <\/p>\n<\/div><\/div>\n\n<div class=\"et_pb_text_10 et_pb_text et_pb_bg_layout_light et_pb_module et_block_module preset--module--divi-text--default\"><div class=\"et_pb_text_inner\"><h3>7. Disconnected representation:<\/h3>\n<p>If data that are related to each other are analysed in a disconnected way, this can also lead to a distorted view of reality. For example, it is well known that chocolate Easter bunnies are popular two months before Easter. However, since Easter does not occur on the same date every year, a pure view of chocolate bunny sales disconnected from the dates of the holidays could be misleading. The data would show an increase in sales in spring and a sudden drop in sales at some time, but the reason for this would not be clear.    <\/p>\n<\/div><\/div>\n\n<div class=\"et_pb_text_11 et_pb_text et_pb_bg_layout_light et_pb_module et_block_module preset--module--divi-text--default\"><div class=\"et_pb_text_inner\"><h3>8. Faulty application:<\/h3>\n<p>If the BI solution is not used for the purpose for which it was developed, this can also lead to incorrect results. For example, if you use a solution developed for financial analysis to evaluate the performance of your production, not all relevant data may be reflected, resulting in erroneous analysis results. <\/p>\n<\/div><\/div>\n\n<div class=\"et_pb_text_12 et_pb_text et_pb_bg_layout_light et_pb_module et_block_module preset--module--divi-text--default\"><div class=\"et_pb_text_inner\"><h2><span class=\"ez-toc-section\" id=\"What_can_be_done_to_avoid_these_errors\"><\/span>What can be done to avoid these errors?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>To avoid the above-mentioned errors when using BI solutions, appropriate measures can be taken:<\/p>\n<ol>\n<li><strong>High Data Quality:<\/strong> It is important for companies to ensure that the data fed into the BI solution is clean and accurate. This can be achieved by performing quality checks and continuously verifying the data for completeness and accuracy. Also, be sure not to use outdated data or data from unreliable sources.  <\/li>\n<li><strong>Well-Thought-Out Data Collection:<\/strong> It is also important that the data used for an analysis be representative. Therefore, before collecting data, carefully consider where and how you want to collect it, as well as which data and factors are relevant. You should also validate the data, for example, by using representative samples. When selecting data, make sure it is representative of your research question or problem.   <\/li>\n<li><strong>Proper Processing:<\/strong> Proper data processing can be achieved through standardized procedures and by checking the results for logical errors.<\/li>\n<li><strong>Correct Interpretation:<\/strong> Correctly interpreting the available data can be very difficult. Therefore, make sure that anyone who analyzes and interprets your data is adequately trained. In addition, the assumptions made during the analysis should be carefully considered and documented so that you can verify them at any time. If incorrect assumptions are made, they will quickly become apparent, allowing the analysis to be corrected. Also, be careful not to view related data sets in isolation from one another.    <\/li>\n<li><strong>Intended Use:<\/strong> It is important that a BI solution be used exclusively for the purpose for which it was developed. To ensure this, users should receive adequate training. If you initially chose the BI solution for a specific purpose but plan to use it for other purposes in the future, the software should be customized accordingly to ensure that all relevant data is displayed correctly.  <\/li>\n<\/ol>\n<\/div><\/div>\n<\/div>\n<\/div>\n\n<div class=\"et_pb_row_2 et_pb_row et_block_row\">\n<div class=\"et_pb_column_2 et_pb_column et_pb_column_4_4 et-last-child et_block_column et_pb_css_mix_blend_mode_passthrough\">\n<div class=\"et_pb_text_13 et_pb_text et_pb_bg_layout_light et_pb_module et_block_module preset--module--divi-text--default\"><div class=\"et_pb_text_inner\"><h2><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Following the motto \"never trust a statistic you haven't manipulated yourself\", data in business intelligence solutions can sometimes be misleading.<\/p>\n<\/div><\/div>\n<\/div>\n<\/div>\n\n<div class=\"et_pb_row_3 et_pb_row et_block_row\">\n<div class=\"et_pb_column_3 et_pb_column et_pb_column_1_2 et_block_column et_pb_css_mix_blend_mode_passthrough\">\n<div class=\"et_pb_text_14 et_pb_text et_pb_bg_layout_light et_pb_module et_block_module preset--module--divi-text--default\"><div class=\"et_pb_text_inner\"><p>Since decisions made on this basis can have far-reaching consequences, it is important to be aware of this issue and to take steps to ensure that analysis results are reliable. After all, despite the potential for errors, analyzing data and using BI software such as myPARM BIact is highly beneficial and an important component of a successful business strategy. <\/p>\n<\/div><\/div>\n<\/div>\n\n<div class=\"et_pb_column_4 et_pb_column et_pb_column_1_2 et-last-child et_block_column et_pb_css_mix_blend_mode_passthrough\">\n<div class=\"et_pb_text_15 et_pb_text et_pb_bg_layout_light et_pb_module et_block_module preset--module--divi-text--default\"><div class=\"et_pb_text_inner\"><p>Find out more about the myPARM project and portfolio management software:<\/p>\n<\/div><\/div>\n\n<div class=\"et_pb_module et_pb_button_module_wrapper et_pb_button_0_wrapper preset--group--divi-button--divi-button--hi917qs--default_wrapper preset--module--divi-button--default_wrapper\"><a class=\"et_pb_button_0 et_pb_button et_pb_bg_layout_light et_pb_module et_block_module preset--group--divi-button--divi-button--hi917qs--default preset--module--divi-button--default\" href=\"https:\/\/parm.com\/en\/myparm\/\" target=\"_blank\">More information<\/a><\/div>\n\n<div class=\"et_pb_text_16 et_pb_text et_pb_bg_layout_light et_pb_module et_block_module preset--module--divi-text--&quot;default&quot;\"><div class=\"et_pb_text_inner\"><p>Would you like to get to know myPARM in a demo? Then make an appointment with us right away! <\/p>\n<\/div><\/div>\n\n<div class=\"et_pb_module et_pb_button_module_wrapper et_pb_button_1_wrapper preset--group--divi-button--divi-button--hi917qs--default_wrapper preset--module--divi-button--default_wrapper\"><a class=\"et_pb_button_1 et_pb_button et_pb_bg_layout_light et_pb_module et_block_module preset--group--divi-button--divi-button--hi917qs--default preset--module--divi-button--default\" href=\"https:\/\/calendly.com\/d\/ymv-ffv-cqx\" target=\"_blank\">MAKE AN APPOINTMENT<\/a><\/div>\n<\/div>\n<\/div>\n<\/div>","protected":false},"excerpt":{"rendered":"<p>Many companies are on the hunt for as much data as possible and use business intelligence (BI) solutions to analyze it and make decisions. But are you aware that data can sometimes be misleading? Yes, that\u2019s right\u2014data can be misleading and therefore lead to poor decisions. We\u2019ll explain why and how data can be misleading\u2014and what steps you can take to ensure that your BI solution delivers reliable and accurate results.     <\/p>\n","protected":false},"author":1,"featured_media":18132,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[29],"tags":[62,852,63],"class_list":["post-18118","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bi-en","tag-bi","tag-big-data","tag-business-intelligence"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.5 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Why data can lie | Parm AG<\/title>\n<meta name=\"description\" content=\"Data can sometimes lie and therefore be misleading. To ensure the right decisions based on data, we explain why and how data can lie.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/parm.com\/en\/why-data-can-lie-2\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Why data can lie\" \/>\n<meta property=\"og:description\" content=\"Many companies are trying to collect as much data as possible and use business intelligence (BI) solutions to analyse it and make decisions. But are you aware that data can sometimes lie? Yes, that&#039;s right - data can be misleading and therefore lead to wrong decisions. Parm AG explains how and why data can lie and what steps you can take to ensure that your BI solution delivers reliable as well as accurate results.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/parm.com\/en\/why-data-can-lie-2\/\" \/>\n<meta property=\"og:site_name\" content=\"Parm AG\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/myparm\" \/>\n<meta property=\"article:published_time\" content=\"2023-05-03T08:00:00+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2026-09-28T06:01:21+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/parm.com\/wp-content\/uploads\/2023\/03\/Post_Data_lie.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"2500\" \/>\n\t<meta property=\"og:image:height\" content=\"1313\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Natascha Schleutker\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"Why data can lie\" \/>\n<meta name=\"twitter:description\" content=\"Many companies are trying to collect as much data as possible and use business intelligence (BI) solutions to analyse it and make decisions. But are you aware that data can sometimes lie? Yes, that&#039;s right - data can be misleading and therefore lead to wrong decisions. Parm AG explains how and why data can lie and what steps you can take to ensure that your BI solution delivers reliable as well as accurate results.\" \/>\n<meta name=\"twitter:image\" content=\"https:\/\/parm.com\/wp-content\/uploads\/2023\/03\/Post_Data_lie.jpg\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Natascha Schleutker\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"11 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/parm.com\\\/en\\\/why-data-can-lie-2\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/parm.com\\\/en\\\/why-data-can-lie-2\\\/\"},\"author\":{\"name\":\"Natascha Schleutker\",\"@id\":\"https:\\\/\\\/parm.com\\\/en\\\/#\\\/schema\\\/person\\\/c24699ce0d4e2f1a102409a36cc80953\"},\"headline\":\"Why data can lie\",\"datePublished\":\"2023-05-03T08:00:00+00:00\",\"dateModified\":\"2026-09-28T06:01:21+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/parm.com\\\/en\\\/why-data-can-lie-2\\\/\"},\"wordCount\":4,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\\\/\\\/parm.com\\\/en\\\/#organization\"},\"image\":{\"@id\":\"https:\\\/\\\/parm.com\\\/en\\\/why-data-can-lie-2\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/parm.com\\\/wp-content\\\/uploads\\\/2023\\\/03\\\/Post_Data_lie.jpg\",\"keywords\":[\"BI\",\"Big Data\",\"Business Intelligence\"],\"articleSection\":[\"Business Intelligence\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/parm.com\\\/en\\\/why-data-can-lie-2\\\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/parm.com\\\/en\\\/why-data-can-lie-2\\\/\",\"url\":\"https:\\\/\\\/parm.com\\\/en\\\/why-data-can-lie-2\\\/\",\"name\":\"Why data can lie | Parm AG\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/parm.com\\\/en\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/parm.com\\\/en\\\/why-data-can-lie-2\\\/#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/parm.com\\\/en\\\/why-data-can-lie-2\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/parm.com\\\/wp-content\\\/uploads\\\/2023\\\/03\\\/Post_Data_lie.jpg\",\"datePublished\":\"2023-05-03T08:00:00+00:00\",\"dateModified\":\"2026-09-28T06:01:21+00:00\",\"description\":\"Data can sometimes lie and therefore be misleading. 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