Spreadsheets vs.

Databases

for data storage

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Commonality

 Can store some data

 Can sort data
 Can query information

It’s very easy to pick

the wrong application

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What is a Spreadsheet?
A spreadsheet is a program
that enables you to store,
manipulate, and graphically
represent
numeric
data.

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What are the characteristics
of a Spreadsheet?
 Data items are often interdependent
 Changing one value may trigger changes in
another value

 Provides great mathematical and statistical

functions
 “What if” scenario support
 Solver support
 What value has to change to produce a given
result?

 Excellent graphics and charting abilities

 Easy to learn – intuitive interface
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What is a Database?
A database is an integrated
collection of logically related
data elements.

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Characteristics of a Database…
 are designed to share.
 Two or more people can edit a database at the
same time.

 are safe.
 Databases write data to the hard drive
immediately.

 can handle large amounts of data

efficiently.
Much more efficiently than Excel.

 Are easy to link tables of related data

together.
 Trying to accomplish this in Excel can be
unwieldy and invites errors.

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Why use a database
to store data?
 Need multi-user access

 Keep your data safe

 Preserve data integrity, use data
validation

 Eschew Obfuscation
 Avoid redundancy and confusion
 Data can be updated in one place and
only takes up as much space as needed

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Why not use a Spreadsheet?
(for data storage)

 Spreadsheets are NOT well suited for

collaboration, data quality or regulatory
compliance.

 Spreadsheets often contain substantial

and material errors.
 Case Study - Magellan Loses Its Compass
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Organizations are starting to look at the
problems the misuse of spreadsheets
is causing but it’s not an IT priority.

“Spreadsheets are growing like weeds,

but they may be a liability in the
Sarbanes-Oxley era.”

–Alan Horowitz

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The Sarbanes-Oxley Act
The single most important piece of legislation
affecting corporate governance, financial
disclosure and the practice of public
accounting since the US securities laws of the
early 1930s.

Was created to protect investors by improving

the accuracy and reliability of corporate
disclosures after a wave of accounting
scandals (Enron, Tyco, WorldCom)

Signed into law on 7/30/02 by President Bush

Requires companies to maintain a good audit

trail. Generating such a trail is often difficult to
do with Excel. 10
Use Spreadsheets for:
 Complex computations on smaller set of
data.

 What if analysis

 Solver Supported - Decision Making

 Work in progress

 Standalone work in progress projects (ones

not involving collaborative efforts)
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