A podcast by Hiran de Silva. Read by Bill.
In the world of business productivity and financial planning, there’s a recurring narrative propagated by a specific segment of the tech industry: the so-called ‘Excel killers.’ These cloud-based FP&A , Financial Planning and Analysis, tools and ERP, Enterprise Resource Planning, systems are marketed as superior alternatives to Excel, often engaging in what can be termed ‘Excel Bashing.’ Over the years, these products have been touted as replacements for Excel, primarily targeting decision-makers who may have an inherent aversion to Excel, and perhaps more broadly, an aversion to creative or lateral thinking that’s essential for working with Excel. This article aims to dissect the underlying patterns of these promotional strategies and challenge their validity.
The Perennial Pattern
Webinars, white papers, promotional events, and podcasts of the ‘Excel Killers’ often feature seasoned professionals presenting these ‘Excel killer’ products. These presenters, highly credentialed and experienced, establish a sense of authority and reliability. However, a common thread in these presentations is a comparison with Excel, invariably highlighting Excel’s perceived deficiencies. This comparison typically suggests that Excel lacks certain features or capabilities, creating an impression of impossibility or inadequacy on Excel’s part.
The ‘You Can’t Do This with Excel’ Mantra
The phrase “You can’t do this with Excel” is a recurring theme. It’s posited that Excel fundamentally cannot perform certain tasks, much like claiming a car cannot fly or sail. This assertion is often presented without substantial evidence and relies heavily on widespread ignorance of Excel, and perpetuating misconceptions.
Case Studies in Misrepresentation
Several notable instances in major publications illustrate this trend. For example, a November 2017 Wall Street Journal article quoted CFOs banning Excel from being used. This article sparked significant backlash from the Excel community, leading to a follow-up piece addressing the controversy, but propagating the misleading information further. Similarly, a July 2021 article highlighted a switch from Excel to Anaplan, with claims of dramatic time savings in financial reporting–claims that, upon closer scrutiny, appeared exaggerated or misleading. Victor Barnes of Anaplan related his experience with Excel at Coca Cola. He says that with Anaplan it ‘saved 70% of time in the month-end processing, and now only takes two weeks’. Any rational reader would conclude that this means month-end process at Coca Cola took two months! This doesn’t sound right. You don’t even need Excel’s superb number crunching to work that one out!
The ‘Nine Circles of Excel Hell’ white paper, initially published by Adaptive Insights, now part of Workday, serves as another prime example. Over time, this paper has undergone revisions, softening its stance slightly, yet it remains emblematic of the anti-Excel sentiment. It compares Excel used in a rudimentary, somewhat amateur architecture, to a cloud-based client-server offering.
The Core Misunderstanding
At the heart of these presentations is a fundamental flaw: the misrepresentation of Excel’s capabilities, especially in a cloud client-server context. Excel spreadsheets, when setup in a cloud-based architecture, offers many of the same benefits as these so-called alternatives. The crux of the issue often boils down to the client-server architecture–a concept fundamental to modern digital technology, well within Excel’s already built-in capabilities when integrated with cloud-based database technologies.
The BMW vs. Mercedes Analogy
Consider an analogy: a BMW commercial contrasts their latest model with the latest Mercedes, but the Mercedes in the comparison is pulled by horses. This misleading comparison is akin to how these alternative products are positioned against Excel. Both the latest BMW and Mercedes models are technologically advanced and fundamentally equivalent, yet the comparison is skewed to present an unfair advantage to the BMW. Similarly, comparing cloud-based FP&A tools with a standalone application of Excel ignores the reality of what we can achieve with Excel in a cloud-based setup. Excel, I might add, with its wide availability, accessibility, agility and affordability, and therefore superior where it matters.
Ignorance vs. Dishonesty
The central question arises: are these comparisons rooted in ignorance? Or are they bordering on dishonesty? Many presenters may genuinely be unaware of Excel’s full capabilities in a modern context. However, once informed, continuing to propagate these comparisons would cross the line into dishonesty.
Real-world Examples of Ignorance
Recent discussions with sales representatives from companies like Anaplan and Workday, the new owners of Adaptive Planning, which used to be Adaptive Insights, reveal a common theme: a lack of awareness about what Excel can do in the cloud in a client-server setup. This ignorance extends to highly influential figures and respected hosts in the industry, who inadvertently mislead their audiences.
Moving Forward: Advocating for Honest Comparisons
For a fair comparison, it is essential to evaluate both the alternative products and Excel within a cloud-based architecture. This involves understanding how both solutions handle client-server dynamics, scalability, data consolidation, and other critical factors such as reach. Only then can we have a transparent and honest discussion about the merits and limitations of each tool.
Conclusion
The ongoing narrative of ‘Excel bashing’ within the FP&A and ERP sectors is based on flawed comparisons and a lack of understanding of Excel’s true capabilities. To foster a more informed and transparent industry dialogue, it’s crucial to educate both presenters, salesmen, and decision-makers about the realities of Excel in a modern, cloud-based context. By doing so, we can ensure that decisions are made based on accurate information, ultimately benefiting the entire industry.
You’ve been listening to a podcast by Hiran de Silva. Read by Bill.
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