Blog

6 Reasons Why Using Spreadsheets Is Costly

6 Reasons Why Using Spreadsheets
Is Costly

  May 19, 2020      Steven Middeldorp

Since 2001, ClearCost has been providing its world-class intelligent IT Financial Management software to helping the CFO, the CIO and other IT Leaders manage and communicate the cost, quality, and value of the IT services they deliver to their organisation. At that time our founder, Steven Middeldorp, has worked with hundreds of companies to improve the delivery of IT in the most cost-effective way possible. He has seen a thing or two, and when asked, he has a one-word answer for a fascinating question – “what is the most costly mistake that enterprises make around their IT Financial Management?”

Steve’s one-word reply – spreadsheets!”

For many of us, particularly those in IT, that word alone is enough to bring on a headache. For some, spreadsheets are a form of cruel and unusual punishment, doled out at the most inopportune times. For others, spreadsheets are a necessary evil. They can help a business stay organised, however, they are really limited to a modern growing enterprise. Then there are those people for whom number crunching on a daily basis on spreadsheets and actually enjoy using them. However, many people use spreadsheets simply because they are familiar – not necessarily because they are the best available tool.

While spreadsheets can be sophisticatedly designed, they have limitations as an application development platform – particularly when used to track and analyse multi-dimensional IT financial information.

Here are six reasons why using spreadsheets to track and analyse IT data is a costly mistake:

 

1. Spreadsheets are designed for one user – frustrating

Have you ever tried to update a spreadsheet that someone else created? It can be oddly disorienting and downright frustrating. Everyone has a unique way of organising their thoughts and consuming information. It gets even more complex when multiple people try to update it at the same time. An intuitive, multi-user experience is not only necessary, but it is also imperative to ensure accurate data.

 

2. They don’t provide automated reporting – time-consuming.

Unless you are an Excel wizard or you have devoted several days, even weeks to your spreadsheet design, chances are that you have to pull reports, create charts, and summarize data manually. These tasks can be repetitive, tedious, and incredibly time-consuming, especially if you didn’t build the spreadsheet and do not understand its complexities.

 

3. They aren’t accessible to business management – time waster.

If you are the Spreadsheet Owner, then you probably get bombarded with requests from management for specific analytics. Since management can’t access the information immediately, you both are inconvenienced – you have to pull reports, and they have to wait, which wastes everyone’s time.

 

4. They need to be maintained constantly – costly.

If a new feature needs to be added or a new factor needs to be accounted for, guess what? You get to redesign the spreadsheet! That seems like it would get tiresome before too long, even for someone who loves Excel. You have better things to do. It’s a costly exercise to keep making changes to the spreadsheet design.

 

5. They are risky – inaccuracy can cost.

A spreadsheet is entirely dependent on the person who created it. Not only is it inefficient for only one person to have full access, but it also poses a security risk. What if that person decides to leave the company? What if that person shares the file with unauthorized users? What if that person makes a mistake when updating a formula? How many times have you revisited a spreadsheet only to find an error that had been there for ages?

 

6. It’s true, everything can be done in a spreadsheet… but…

With time, enthusiasm, and ability, almost anything can be done in a spreadsheet, but why would you want to use one? Why spend hours building something if you can use a bespoke, purpose-built application that meets the IT business need and eliminates all of the issues discussed above? Can you imagine someone who would open a blank spreadsheet, set column A to 80 characters wide, and then use it to type letters and memos?  Use the right tool for the job!

While spreadsheets are useful for certain tasks and limited data analysis, they are not suitable for managing highly sensitive and complex IT financial information. The limits of their usability can stifle your organisation’s growth path and cost you big time in the event of inaccuracy or security issues.

Today, you have available world-class intelligent IT Financial Management software solutions. This is the right tool for the job and utilising it could save you from making costly mistakes.

To see one of the best ITFM solutions in the world, Speak To Our Team to arrange a live demonstration of the ClearCost Intelligent ITFM solution.

CategoriesBlog

TagsIT Financial Management software, ITFM, ITFM software, IT Financial Management tool, CIO, CFO, IT Financial Management, TBM, Technology Business Management

  May 12, 2020      Steven Middeldorp

Here’s How To Understand Intelligent ITFM Software

  May 5, 2020      Steven Middeldorp

Here are the Top 10 Best IT Questions to Ask Your CFO

  April 28, 2020    Steven Middeldorp

What is the Intricate Language of ITFM Software?

  May 12, 2020    Steven Middeldorp

Here’s How To Understand Intelligent ITFM Software

  May 5, 2020    Steven Middeldorp

Here are the Top 10 Best IT Questions to Ask Your CFO

  April 28, 2020    Steven Middeldorp

What is the Intricate Language of ITFM Software?

  May 12, 2020
  Steven Middeldorp

Here’s How To Understand Intelligent ITFM Software

  May 5, 2020
  Steven Middeldorp

Here are the Top 10 Best IT Questions to Ask Your CFO

  April 28, 2020
  Steven Middeldorp

What is the Intricate Language of ITFM Software?