Excel

What is Excel?

Excel is a spreadsheet software application developed by Microsoft and first released back in 1985. It is part of the Microsoft Office suite of applications, which includes other programs such as Word, PowerPoint and Outlook. 

Why is it used?

Excel was designed primarily for the creation, editing and analysis of tabular data and is commonly used for tasks such as financial modeling, budgeting, data entry, analysis and visualisation. Here are some other commons reasons as to why you might use excel as a database tool - 

• Data Organisation and Management - Excel provides a structured grid interface where users can store, organise, manipulate and manage data efficiently in rows and columns. It allows for easy sorting, filtering and searching of data, cementing it as a popular database tool.

• Data Analysis and Calculation - Excel offers powerful mathematical, statistical and financial functions that enable users to perform complex calculations and analysis on their data. Users can create formulas to automate calculations and derive insights from their data.

• Data Visualisation - Excel includes a variety of charting and graphing tools that allow users to create visual representations of their data such as bar charts, line graphs, pie charts and scatter plots. Visualising data makes it easier to identify trends, patterns and outliers.

• Financial Modeling and Budgeting - Excel is commonly used in organisations for financial modelling, budgeting and forecasting tasks. It allows users to create dynamic financial models, perform scenario analysis and track expenditure and revenue streams.

• Reporting and Presentation - Excel enables users to create (somewhat) professional looking reports and presentations by formatting data, adding charts and graphs and customising the layout and design of their spreadsheets. Reports can be easily shared with others or exported to other formats.

• Task Automation - Excel includes features such as macros and Visual Basic for Applications (VBA) that allow users to automate repetitive tasks and workflows. Users can create custom macros to perform specific actions or automate data processing tasks.

• Collaboration and Sharing - Excel facilitates collaboration and sharing of data and documents among team members and stakeholders. Users can share workbooks, track changes and merge changes from multiple users, making it easy to work together on projects.

What are the drawbacks?

Whilst Excel is a powerful and widely used tool, it also has some disadvantages, particularly in certain situations or for specific tasks. Some disadvantages of using Excel include:

• Limited Data Capacity - Excel has limits on the amount of data it can handle efficiently. Large datasets can slow down performance or cause the application to crash. Users may encounter issues when working with extremely large datasets or when processing complex calculations which is the number one reason it is not always a suitable database tool.

• Version Control Challenges - Collaborating on Excel files can be challenging, especially when multiple users are making changes simultaneously (although this has been negated with the introduction of excel online and OneDrive). Version control can become cumbersome, leading to confusion and potential errors if changes are not properly managed and tracked.

• Data Integrity Issues - Excel lacks built-in mechanisms for ensuring data integrity and consistency. Users may inadvertently enter incorrect data or formulas, leading to errors in calculations or analysis which have the potential to compromise a significant amount of data. Without proper validation and auditing processes in place, data accuracy is far from guaranteed.

• Limited Data Visualisation Options: - Whilst Excel offers basic charting and graphing tools, it may not provide the level of customisation or sophistication needed for advanced data visualisation tasks. Users may require additional software or tools to create more complex visualisations. Creating such visualisations also requires expertise.

• Security Risks - Excel files can be vulnerable to security risks, such as unauthorised access, data breaches and malware attacks. Password protection and encryption features are available, but they may not provide sufficient protection against determined attackers.

• Difficulty with Unstructured Data - Excel is primarily designed for structured data stored in rows and columns. Handling unstructured data, such as text documents or multimedia files, can be challenging and may require additional processing or conversion steps.

• Lack of Scalability - Excel may not scale well for larger or more complex applications. As business needs grow and evolve, users may find it difficult to scale Excel-based solutions to meet growing demands or accommodate changing requirements.

• Dependency on Individual Expertise - Excel proficiency varies among users and reliance on individual expertise can create bottlenecks and dependencies within organisations. Lack of standardised processes and documentation can make it difficult for others to understand and maintain Excel-based solutions.

What Are The Alternatives?

Whilst Excel usually begins as a convenient tool to manage data for many organisations, over time, these workbooks can grow in complexity and become difficult to manage, particularly when used as core systems or relied on heavily for operational processes.

An alternative approach is to replicate and transform these Excel based processes into a dedicated software system. This involves identifying the key functions, calculations, data flows and automation currently handled in Excel and rebuilding them in a more scalable and structured environment - often as a web based or desktop application.

For example:

• Data input forms in Excel can be recreated as user friendly interfaces with built in validation to reduce errors.

• Macros and formulas can be translated into backend logic or automated workflows using modern programming languages.

• Reports and charts can be turned into dynamic dashboards that update in real time.

• Manual processes such as data copy pasting or version tracking can be automated and centralised.

By doing this, organisations are able to maintain the logic and structure they’ve already built in Excel whilst gaining the benefits of a more robust, secure and scalable system.

How Can we Help?

Our developers have worked with Microsoft Excel for many, many years. From recreating excel databases in more up to date and modern technology solutions to replicating automated processes made possible by the use of macros - we can evaluate your current use of Excel and make recommendations on alternative options whilst guiding you through the transition process.