A recent blog post from Ventana Research noted that nine out of ten companies still use spreadsheets to plan, budget, analyze, and report data. This statistic is not surprising because spreadsheets are a way of life for most finance teams. In fact, a survey of attendees in our 7 reasons to replace your spreadsheets webinar found that 40% of finance teams are spending more than 20 hours a week using spreadsheets.
Not only are spreadsheets a big part of business life, Ventana Research recognized them as the most widely used business tool around the world. Their global adoption doesn’t mean spreadsheets are without fault, however. In the webinar, Irina Lewis, Director of Finance Applications, highlighted the fact that spreadsheets tend to slow down processes, be error-prone, and are not scalable. To combat these issues, more and more companies are making the move away from spreadsheets. Over the course of this webinar, Lewis outlined seven reasons why, including:
1. Data: Combining a large amount of data from a variety of data sources can be a real challenge. The amount of data being created is growing exponentially and static spreadsheets won’t be able to keep up, so Lewis advises that companies stop treating spreadsheets as a database and move to a more adaptable solution.
2. Accuracy: According to the Association of Chartered Certified Accountants, more than 90% of all spreadsheets contain serious errors. This is combined with the startling fact that 90% of those spreadsheet users are convinced that the models are error-free. It is widely known that errors can have severe, detrimental impacts across a business, and therefore accuracy is key to successful financial planning.
3. Scalability: Today’s businesses are going global faster than ever. Hyper-growth companies must figure out how to connect their people and products across multiple places, and need to do so with speed. Moving away from spreadsheets can help ease some of the growing pains today’s companies experience by helping them move with agility.
Hear four more reasons why spreadsheets are a challenge from the perspective of an Anaplan customer’s. Watch the full webinar now. Ventana Research. “Microsoft: Big Data Analytics and Mobile Challenges” by Tony Cosentino, published May 13, 2013. Accessed March 30, 2015. http://blog.ventanaresearch.com/2013/05/13/microsoft-big-data-analytics-and-mobile-challenges/