In this lecture, we briefly discuss the reasons for Excel's popularity
We also discuss instances in which use of Excel is appropriate, as well as instances in which other software may be preferable
Last, we briefly touch on Excel's role within organizational settings
Excel's Popularity Explained
As you probably know, Excel is a very popular tool that is used globally in a variety of different fields
This is evidenced by the plethora of software applications which allow you to export data to Excel formats (think about your bank account info, for example)
But why is it so popular? Anecdotally:
History: Excel rose in popularity as Microsoft established itself as a leader in the tech industry
Ease of Use: Excel requires no formal programming skills, and has a relatively intuitive user interface (though it may not always seem that way!)
Flexibility: Excel is a single application which can be used for an endless number of things, from simple budgeting to complex modeling
Price: Excel is relatively cheap
When To Use Excel
Recognizing the ubiquity of Excel, it is important to recognize instances in which Excel should and should not be used
This can be a subjective and sometimes difficult exercise in certain cases
In general, it makes sense to know and use Excel:
If you are a student
Nearly all students have courses and assignments which require computational analyses to some degree. These assignments can vary significantly from course to course, and Excel is flexible enough to work in these varying environments
If you frequently perform ad-hoc or highly-tailored analyses
These would be analyses that other applications may not be able to perform quickly and without major setup requirements
For example, financial analysts typically build financial models in Excel, which are tailored to specific companies
If you cannot afford other software applications
When To Use Alternatives
Generally speaking, you should probably rethink using Excel if:
You work with many separate sets of data that are connected/related to one another in some way
You should consider software that incorporates relational database functionality
Excel is considered a flat file database, which comes with many limitations
You can afford purchasing alternative (and likely more specialized) software
You perform repetitive, standardized tasks
You can automate tasks with VBA, but there may be more robust alternatives
You need to have better control over your data and processes
Excel is extremely flexible, but the downside is that it is error-prone
For example, you need to ensure that people are entering raw data accurately, and that mistakes in processing data are minimized or eliminated
Alternatives to Excel
Today, there are many applications available which can help you better-automate tasks. Many of them incorporate relational databases. Here are some examples, roughly categorized, but with lots of overlap:
We only name a few here, but of there are (of course) many different specialized products available today which may serve as alternatives to Excel
Contextualizing Excel Within Organizations
Today, most organizations encounter both standardized and ad-hoc tasks
But many organizations may be too reliant on Excel, which may result in inefficiencies
As such, it may be beneficial for organizations to:
Invest in software which can better-automate standardized tasks as much as possible, and
Utilize Excel only for the more ad-hoc and idiosyncratic analyses
The good news is that many new applications can integrate directly with Excel or provide you with transformed data that can be exported to Excel
Doing this is easier said than done, as organizations must create detailed plans (and then implement them) to transition from old processes to new ones
