Observation is known to be something that you can do when you are just looking at people from afar. You may sometimes observe that there are some people who are doing certain things even when they are not supposed to. Sometimes through observing, you can already gain a lot of details about different people.
Sometimes it is also through observation that you can learn more about different companies in general. You will know how they operate and so much more. The conclusion is deciding on something based on the various details that you have learned. For example, you can conclude that something works after using it for a certain period of time.