Business System Consultation Center - Our Business System ColumnVol.144 2023.10.01 Takahashi Minoru

The dilemma of over-customizing: unique specs shorten your system's lifespan

Thank you for your interest and continued support.
This is Takahashi from the Marketing Plan Research Laboratory.


I am often asked by clients
"We’ve been managing orders in Excel for years, but is this really the right approach?"
“We’ve been managing orders in Excel for a long time—is this really the right approach?”
That is the general nature of the questions.


While the specific answer varies depending on the era and the circumstances of each case,
the essence of the matter remains the same regardless of the circumstances.


The slogan “Move Away from Excel” sounds good, but what about the essence of the matter?
That essence is your company itself.


Looking back at your company’s current operating profit,
wasn’t it true that your past Excel system, with its unique advantages,
to that profit?


Like a bump on a finger—or, to use an analogy, a hangnail that’s hard to get rid of—
—minor inconsistencies that had no major impact but were simply a source of annoyance to you—
is it really worth giving up
was the "new system" we have now really worth giving up
in the current “new system”?


In this column, titled “A Whimsical Look at Excel Systems,” I’ll briefly
list some of the characteristics, advantages, and disadvantages of managing business operations with Excel.


If your company is on the verge of being swayed by vague slogans calling for a move away from Excel,
I think it wouldn’t be a bad idea to take a step back, consider the potential consequences, and then formulate and test an alternative hypothesis.
I hope you’ll stick with me.


[A Lighthearted Look at Excel Systems]


■Characteristics of Excel
・Abundant workforce
　　Many people can handle basic tasks like data entry and printing
　　There are also quite a few people capable of modifying, extending, or scaling back the specifications


・Comprehensive features
　　Works on　　virtually any PC
　　Worksheet　　functions work on Mac as well


・System and document compatibility
　　It’s easy to insert help comments or
　　instructional images


・Database functionality
　　It’s not impossible to use it as a database
　　Implementing search functionality is difficult


・Ease of sharing
　　You can send entire files via email
　　Since copying is easy, backups are not difficult


・If you can use VBA, it expands the range of possible functionality


・It is not particularly well-suited
　　・Not well-suited for


・It is practically impossible to handle very large datasets


・The file itself may become corrupted


■Advantages of the Excel system
・It is cost-effective
　　⇒ While this depends on system requirements and the skill level of the staff,
　　　Excel often allows for in-house implementation, making it worth considering


・Handover is not difficult
　　⇒ Unless the specifications are extremely complex, once a system is built, it can operate smoothly for the long term
　　　and is suitable for systems that require long-term operation
　　　making it suitable for systems that require long-term, non-person-dependent operation


・Specification changes are easy to implement
　　⇒ Suitable for unstructured tasks that require frequent specification changes
　　　(e.g., systems that require input/output specifications to be changed each time
　　　　)


・Easy to separate files
　　⇒ Suitable for systems that require frequent trial and error
　　　It can also easily accommodate situations where business procedures differ by department


■Disadvantages of Excel Systems
・Operational maintenance is labor-intensive
　　Data consistency checks and adjustments may be necessary
　　This can lead to unnecessary labor costs and reliance on specific individuals
　　⇒ In some cases, it may be deemed unsuitable depending on the requirements


・May not function as intended
　　Even minor errors, such as a keystroke mistake, can cause the specifications (*) to break
　　*Such as cell positions or worksheet formula entries
　　⇒ Not suitable for systems with low tolerance for errors


・Files may disappear without warning
　　Because files are easy to move or delete
　　it is easy for situations to arise where "a file that should be there is missing"
　　⇒ Similarly, not suitable for systems with low tolerance for errors


・Input errors
　　Database-style constraints (*) are virtually nonexistent
　　*Restrictions on "data types" such as text, numbers, and dates,
　　　the types of characters allowed in column names, etc.
　　It is difficult to set input restrictions
　　Users must exercise extreme caution when operating the system
　　⇒ In some cases, it may be deemed unsuitable depending on the users' level of computer knowledge


・Data in forms can be easily altered
　　⇒ Unsuitable for systems with anti-fraud requirements


・Data is dispersed, making centralized management difficult
　　⇒ Systems that require data synchronization between systems tend to face difficulties


・Search functionality is limited
　　⇒ Not suitable for systems requiring cross-database searches


■Summary and Observations
・We do not recommend selecting Excel as a core system
　　Excel’s drawbacks are often deemed critical
　　and if these are discovered after implementation, it can actually result in higher costs


・As a bridge between core systems/package systems (accounting, attendance, etc.)
　　and serves as a
　　there are many cases where
　　there are many cases where Excel’s advantages can be leveraged


That's all, Thank you for reading.

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