On the Wikepedia site, a spreadsheet is defined as 'a computer application that simulates a paper accounting worksheet', whilst a database is 'an organized collection of data for one or more purposes, usually in digital form.'
This may be a surprising distinction for some of us. We quite often use the terms interchangeably. Particularly when we have a spreadsheet with a lot of data in it. That then becomes our 'database' because we have out data in it. As we can see from the Wikipedia definitions, it doesn't really work that way. A spreadsheet is really just a computerised version of a large piece of paper. They were designed for one-off calculations like those performed by accountants. A database, on the other hand collects and organises data which can then be used for one or more purposes. This is a much more attractive and sensible platform with which to run a business. So, it makes sense to choose a database for your business.
So, why are there so many spreadsheets being used in business?
These three reasons will help to answer that question:
1. Your computer will often come with a spreadsheet application, like Microsoft Excel, already pre-installed.
2. Because a spreadsheet program is imitating a large piece of paper, it is easy to start putting in information straight away. This could be a simple list of data. It could be a list of sales or invoices for example.
3. The user feels that they are in complete control over the data and the calculations.
Why is this a bad setup for your business?
1. Spreadsheet programs, such as Microsoft Excel, are on every PC because they are generic. They are not specific to your own business and your business needs. A database based piece of bespoke software has much more relevance and precision with regards to your business needs.
2. You can start typing information into a spreadsheet straight away without the data going into an organised structure of any kind. In the real world this usually means that the information ends up being simply a list, and does not have any further value. In addition, there is usually only one person using a spreadsheet. Because we are all human, mistakes will be made in data entry and calculations. But there is no-one checking over the spreadsheet so mistakes are often not spotted until further down the line. With the correct bespoke software, all your data entry is organised and collected into a useful format from the moment you type it in. This reduces the chance for mistakes.
3. In a spreadsheet application, the data and calculations/coding are all in the same place, with the user able to make changes to both. This leads to problems as it is so very easy to make a mistake. It also means that you can have different versions of the 'same' spreadsheet on different computers being used by different users. Because the data is in a spreadsheet, only one user to enter or edit data at one time. This is a big efficiency drop. With a database driven piece of software, the coding and the data are separated. The user does not have access to the code, and is instead guided down a process path determined specifically for your business. This greatly enhances worker effectiveness and efficiency. All the users are looking at the same data at the same time. All the data is organised and compiled into the most meaningful way for your business. This means that you can pull out reports instantly.
All large and succesful companies use database driven bespoke software. Would you book a flight on an airline which organised its schedules on spreadsheets?
Bespoke software is relevant for all businesses in all sectors. Get in touch with your software engineer to find out just how much of a difference it could make.
This may be a surprising distinction for some of us. We quite often use the terms interchangeably. Particularly when we have a spreadsheet with a lot of data in it. That then becomes our 'database' because we have out data in it. As we can see from the Wikipedia definitions, it doesn't really work that way. A spreadsheet is really just a computerised version of a large piece of paper. They were designed for one-off calculations like those performed by accountants. A database, on the other hand collects and organises data which can then be used for one or more purposes. This is a much more attractive and sensible platform with which to run a business. So, it makes sense to choose a database for your business.
So, why are there so many spreadsheets being used in business?
These three reasons will help to answer that question:
1. Your computer will often come with a spreadsheet application, like Microsoft Excel, already pre-installed.
2. Because a spreadsheet program is imitating a large piece of paper, it is easy to start putting in information straight away. This could be a simple list of data. It could be a list of sales or invoices for example.
3. The user feels that they are in complete control over the data and the calculations.
Why is this a bad setup for your business?
1. Spreadsheet programs, such as Microsoft Excel, are on every PC because they are generic. They are not specific to your own business and your business needs. A database based piece of bespoke software has much more relevance and precision with regards to your business needs.
2. You can start typing information into a spreadsheet straight away without the data going into an organised structure of any kind. In the real world this usually means that the information ends up being simply a list, and does not have any further value. In addition, there is usually only one person using a spreadsheet. Because we are all human, mistakes will be made in data entry and calculations. But there is no-one checking over the spreadsheet so mistakes are often not spotted until further down the line. With the correct bespoke software, all your data entry is organised and collected into a useful format from the moment you type it in. This reduces the chance for mistakes.
3. In a spreadsheet application, the data and calculations/coding are all in the same place, with the user able to make changes to both. This leads to problems as it is so very easy to make a mistake. It also means that you can have different versions of the 'same' spreadsheet on different computers being used by different users. Because the data is in a spreadsheet, only one user to enter or edit data at one time. This is a big efficiency drop. With a database driven piece of software, the coding and the data are separated. The user does not have access to the code, and is instead guided down a process path determined specifically for your business. This greatly enhances worker effectiveness and efficiency. All the users are looking at the same data at the same time. All the data is organised and compiled into the most meaningful way for your business. This means that you can pull out reports instantly.
All large and succesful companies use database driven bespoke software. Would you book a flight on an airline which organised its schedules on spreadsheets?
Bespoke software is relevant for all businesses in all sectors. Get in touch with your software engineer to find out just how much of a difference it could make.