Break Free from Excel Dependency: Why It’s Time to Embrace Your ERP System

Microsoft Excel wasn’t released in the mid-eighties, it was unleashed.

What followed was a generation of users (author included) for whom Microsoft Excel has become a dependency.

It's time to break the dependency.

Caught in Excel's Grip: The Dilemma of Dependency

If the hammer is the tool that defines the stone age, the spreadsheet is the tool that defines the information age.?They’re a great tool, used everywhere, by everyone, for everything.

But with this availability comes a hidden danger: dependency. Mirroring Excel’s expanding capabilities has been our increasing reliance on it.

Like any dependency, it offers a sense of control, immediate feedback, and familiarity. But, beneath the surface lies a trap—one that drags users into a productivity sink.

In this article, we’ll explore the perils of Excel dependency, uncovering the signs, implications, and strategies to break free from its grip.

The Rise And Rise of Excel

Back in the mid-eighties in its simpler, earlier forms such as VP Planner and Lotus 1-2-3, spreadsheet software was something a business user would purchase. Today, it’s standard issue –? attached to the operating system of the device.

Since then much has changed. They’re bigger, faster, and more powerful. But one thing hasn’t changed – it has never taken much effort to be a user. Taught or self-taught, the new user only ever scratches the surface. They’ve little sense of the power it holds. They’ve no sense of the power it holds over them. Armed with a little bit of knowledge, they’re off and racing – seduced by the possibilities.

On the outside, the potential applications seem inexhaustible to them.?

On the inside, there’s the confidence they’ll gain by displaying their knowledge. There’s the pride they’ll feel in displaying how they can apply it, and the sense of contributing they’ll have in those first little productivity gains they’ll achieve.

Microsoft Excel wasn’t released in the mid-eighties, it was unleashed.

What followed was a generation of users (author included) for whom Microsoft Excel has become a dependency.

The Perils of Excel Dependency: Are you dependent?

To call it an addiction would be too dramatic. Using Excel is not going to cost you everything you have and hold dear in life, or worse. But to be clear, it is a dependency.

How?

Make no mistake. Excel is popular for a reason. It’s a great tool. The possible applications are endless. But there’s an inherent danger in its accessibility and incredible functionality.

We all know it doesn’t take much effort to become a user, but it takes years of experience to know you need to be careful. A little bit of knowledge is a dangerous thing. Armed with that seed of knowledge, users can be misled into thinking they’re more capable than they are, and then the mistakes appear.

Once mistakes are made (…which can take anywhere from several seconds to several months to appear), costly mistakes will have been added, subtracted, multiplied, divided, deleted, indexed-and-matched before being copied-and-pasted into an incalculable muddle from which there’s no easy way out.

If you can avoid those errors, your unvalidated spreadsheet exists in a silo – operationally known unto you alone. If linked, it is subject to the errors of multiple sources of data and user activity.

These errors are one thing. With concerted effort and a disciplined approach, errors can be minimised, or avoided. But this doesn’t mean it’s all sunshine and rainbows. There is still an issue. Often, many Excel files are created, fed with data, and maintained to execute a task that the ERP system is set up to deliver. Again, this is often known to the Excel user. This points to the deeper issue, the creeping dependency that comes with repeated, unchecked exposure to Excel. ?

How many of the following manifestations of Excel dependency can you relate to? You don’t need to tell anyone. You can keep the answers to yourself, so be honest about them.

• Instant Gratification: Does using Excel give you a sense of immediate feedback and results? Do you gain a sense of accomplishment when tasks are completed, or data is analysed? Does learning and successfully applying a new function or formula for the first time give you even a tiny feeling of euphoria?

Instant gratification can push us to rely on Excel excessively to satisfy our need for quick results.

• Comfort and Familiarity: Does Excel offer familiarity and comfort to you as you become accustomed to its interface and functionalities?

This comfort can lead to a reluctance to explore alternative tools or methods, keeping us locked in a cycle of Excel dependency.

• Dependency and Reliance: Over time, have you come to rely on Excel as your primary tool for data analysis, reporting, and decision-making?

This dependency can create a sense of reliance on Excel, making it challenging for us to break away from its use.

• Escapism: Do you ever feel Excel is providing you an escape from complex or tedious tasks by offering you a sense of control and organisation?

Some of us find solace in Excel’s structured environment, using it to avoid addressing underlying issues or challenges in our work processes.

• Craving for Control: Does Excel offer you a sense of control over your data and processes by allowing you to manipulate and customise spreadsheets according to your preferences?

This craving for control can lead us to obsessively tweak and refine Excel files, seeking perfection in our analyses or reports.

• Fear of Change: Might you have developed a fear of change or reluctance to adopt new tools or technologies, preferring the familiarity and perceived safety of Excel?

This fear can prevent us from exploring more efficient or effective alternatives, perpetuating our dependency on Excel.

• Difficulty in Breaking the Habit:

Like any ‘bad’ habit, overcoming a dependency on Excel can be hard work.

Rusted-on users will struggle to reduce their use of Excel due to inertia, lack of awareness of alternative solutions, or a fear of losing productivity or efficiency.

While Excel is a valuable tool for data analysis and reporting, we need to recognise when our reliance on Excel crosses over to become excessive or detrimental to our productivity. We need to explore alternative tools or methods to break free from this cycle of dependency.

Excel Irony (No. It's Not a New Function)

Did you honestly answer ‘Yes’ to any (or all) of the six signs of Excel dependency? If you did, then there’s a strong likelihood that you’re not a big fan of your ERP system.

The irony here is twofold.

Firstly, chances are that whatever you’re running through Excel is probably able to be done in that ERP system.

Secondly, if your Excel dependency were to run its full course, you would have built in all the functionality you’d need. Seeing synergies, you’d link it with other users and their spreadsheets. Finally, after validating and error-trapping them all, you’d end up having built an ERP system.

Congratulations! You’ve reinvented the wheel.

Having built your new Excel-based ERP, everyone would be happy. Right?

Wrong.

In walks a new employee. What do they do?

They sit down and open a blank Excel spreadsheet. Work on reinventing the wheel starts all over again. Countless hours are going to be mis-spent doing the same thing all over again.

Bewildered, you’d stand there scratching your head. Why are they doing that when you’d only just delivered what was needed/re-invented the wheel?

The pain you’re feeling isn’t indigestion. It’s insight. It’s the same pain experienced by the team who created your company’s ERP system.

Maybe it’s time to stop and think about why your company goes to the expense of paying the license fee for your ERP system.

Getting to know your ERP System again: Unlocking its Full Potential

If you’ve a dependency upon Excel, you probably limit your time spent working in your company’s ERP system.

But as we’ve realised above, taking this Excel dependency to its limit, you’d end up with an ERP system, despite already having one.

So, before we go any further reinventing something that already exists, what are the benefits of the current ERP system?

• Centralised Data Storage: ERP systems provide a centralised database where all relevant business data is stored, eliminating the need for multiple stand-alone or linked Excel spreadsheets scattered across different departments or individuals. This centralisation ensures data consistency, accuracy, and security. Wouldn’t you want this in your new Excel-ERP?

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• Real-Time Insights: ERP systems offer real-time access to business data and analytics, allowing decision-makers to make informed choices based on up-to-date information. Unlike Excel, which often requires manual data entry and updates, ERP systems automatically capture and update data in real-time, providing a more accurate and timely view of the organisation’s performance. Wouldn’t you want this from your new Excel-ERP?

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• Integration with Other Business Processes: ERP systems are designed to integrate seamlessly with other business processes, such as inventory management, procurement, sales, and finance. This integration streamlines workflows, eliminates duplicate data entry, and improves collaboration across departments, leading to increased efficiency and productivity. Wouldn’t you want this from your new Excel-ERP?

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• Scalability: ERP systems are scalable and can grow with the organisation, accommodating changes in business needs, processes, and regulations. Whether the organisation expands into new markets, adds new product lines, or undergoes organisational restructuring, ERP systems can adapt and scale accordingly to support evolving business requirements. Wouldn’t you want this from your new Excel-ERP?

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• Standardisation and Consistency: ERP systems enforce standardised processes and workflows across the organisation, ensuring consistency in data entry, reporting, and analysis. This standardisation reduces errors, improves data quality, and enhances decision-making capabilities by providing a single source of truth for business data. Wouldn’t you want this in your new Excel-ERP?

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• Compliance and Risk Management: ERP systems incorporate built-in controls and security features to ensure compliance with regulatory requirements and industry standards. By centralising data and automating compliance processes, ERP systems help mitigate risks associated with non-compliance and improve auditability. Wouldn’t you want this from your new Excel-ERP?

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• Improved Customer Service: ERP systems enable organisations to better serve their customers by providing a comprehensive view of customer interactions, preferences, and purchasing history. This allows for personalised marketing campaigns, targeted sales efforts, and enhanced customer support, leading to increased customer satisfaction and loyalty. Wouldn’t you want this from your new Excel-ERP?

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• Cost Savings: While the initial investment in an ERP system may be significant, the long-term cost savings can be substantial. By streamlining processes, reducing manual effort (Excel spreadsheets), and improving operational efficiency, ERP systems help lower administrative costs, minimise errors, and optimise resource utilisation (those resources are you and me), ultimately leading to improved profitability. Wouldn’t you want this from your new Excel-ERP?

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Overall, your current ERP system gives you what you want from your new Excel-ERP.

So, how do we reduce the resistance?

Overcoming Resistance: Strategies to Encourage Users Back into ERP Systems

When you think about it, ERP’s and microwave ovens have something in common – they’re both treated the same way.

With all its functionality on offer from sensor cooking, pre-programmed settings for specific food types, and convection heating, most users just use it to reheat leftovers or defrost frozen food items. It’s the same with ERP systems. They’re underutilised.

How can this change?

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• Conduct Awareness Workshops: Organise workshops or training sessions to raise awareness among employees about the capabilities of the ERP system and how it can replace Excel for certain tasks. Provide demonstrations to show the efficiency and benefits of using the ERP system over Excel.

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• Offer Comprehensive ERP Training: Provide comprehensive training on the ERP system, including modules related to data analysis, reporting, and inventory management. Ensure that employees are familiar with the features and functionalities of the ERP system and understand how to use it effectively for their specific job roles.

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• Create User Guides and Resources: Develop user guides, manuals, and online resources that provide step-by-step instructions and tips for using the ERP system. Make these resources easily accessible to employees so they can refer to them whenever they have questions or need assistance.

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• Encourage Adoption and Feedback: Encourage employees to adopt the ERP system for daily tasks and provide feedback on their experience. Create simple ways for employees to share their feedback, suggestions, and challenges related to using the ERP system, and use this feedback to identify areas for improvement and provide additional support.

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• Establish Clear Processes and Workflows: Define clear processes and workflows for using the ERP system in different departments and job roles. Clearly outline the steps for entering data, generating reports, and performing other tasks within the ERP system to ensure consistency and accuracy.

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• Monitor Excel Usage Patterns: Track and analyse Excel usage patterns among employees to identify areas where there is still a dependency on Excel despite the availability of the ERP system. Look for common tasks or processes that employees are still using Excel for and assess whether these tasks can be migrated to the ERP system.

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• Provide Ongoing Support and Training: Offer ongoing support and training to employees to address any challenges or barriers they may encounter when using the ERP system. Provide refresher training sessions, one-on-one coaching, or additional resources as needed to help employees build their confidence and expand their use of the ERP system.

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• Recognise and Reward Adoption: Recognise and reward employees who demonstrate a willingness to adopt and embrace the ERP system in their work. Highlight success stories and best practices to encourage other employees to follow suit and prioritise using the ERP system over Excel.

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These steps also work well for microwave ovens.

Moving Forward: Embracing a Balanced Approach

Reality check...

I’m not going to abandon Excel, and neither are you.

But next time you feel the need to open a new Excel spreadsheet, or add another feature to one of your many, many existing files, stop and consider one thing first – and be honest:

Can I do this in the ERP?

Sometimes it will be a clear – No! Excel is the better way.

Sometimes (and this will be a personal struggle) there will be a faint voice inside your head saying – Yes.

Listen to it. Try your ERP. You might be surprised at how easy it is, and faster than using Excel.

Here are some ways to encourage your organisation to leverage the strengths of both Excel and ERP systems:

• Identify Use Cases: Assess the pros and cons of both Excel and the ERP system in your organisation. Identify where Excel wins out in flexibility, ad-hoc analysis, and user-friendliness, as well as areas where the ERP system is better in managing data, automation, and real-time insights.

• Establish Integration Protocols: With the assistance of your IT colleagues, consider links to exchange data between Excel and the ERP system, or from the ERP at least.

• Provide Training and Support: Offer training to employees on how to effectively use both Excel and the ERP system for their data management, analysis, and reporting needs.

• Promote Data Governance: Establish data governance policies and procedures to ensure consistency, accuracy, and security in data management across both Excel and the ERP system. It might sound draconian, but an option is to register and version control files once they’ve been validated as fit for their purpose.

• Encourage Collaboration: Drive knowledge-sharing among Excel users and the ERP system. Encourage cross-functional teams to collaborate on projects and share insights and templates for data management, analysis, and reporting.

• Invest in Integration Tools: Consider investing in bolt-on third-party software to provide the features and functionality of your Excel files from your ERP system. They’re safer, supported, and best of all, eliminate manual effort.

• Measure and Evaluate Performance: Establish key performance indicators (KPIs) to measure the effectiveness of using both Excel and the ERP system in data management, analysis, and reporting processes. KPI’s can include data accuracy, report generation time, and user satisfaction to identify areas for improvement and optimisation.

• Improve: Continuously improve your approach to using both Excel and the ERP system based on feedback, insights, and lessons learned. Seek input from end-users and IT colleagues to identify opportunities for innovation and optimisation in ways of working.

Both Excel and your ERP are necessary tools. If you can adopt these strategies, your productivity will increase as you’re playing to the strengths of both.

The Bottom Line: It’s Dependency vs Necessity

Both Excel and your ERP are necessary tools.

What’s needed is the discipline of Excel users to recognise when their use is driven by dependency over necessity.

You have too much to do, and not enough hours in the day to waste valuable time in Excel duplicating ERP functionality.

Confront your dependency.

Win back control of your day and productivity.