Clinging to Excel to run operations? That’s cute. Meanwhile, the competition is swimming circles around you, ready for a snack.
Remember the good old days when Excel was the superhero of operations? It made sense back then. It was versatile, user-friendly, and quickly became the industry standard. We could crunch numbers, create pivot tables, and feel like data wizards. But here's the truth bomb: times have changed, and so must we. Excel had its glory days, but holding on to it now is like trying to win a race with a horse and buggy.
Sadly, according to iBase-t, 50% of manufacturers are using manual spreadsheets such as Excel for the majority of processes.
Although Excel is a powerful tool that can be used for a wide range of tasks, it has huge limitations when being used for running operations:
1. 𝐋𝐢𝐦𝐢𝐭𝐞𝐝 𝐒𝐜𝐚𝐥𝐚𝐛𝐢𝐥𝐢𝐭𝐲: Excel can quickly become unwieldy when dealing with large data sets or complex operations. As data volumes increase, the performance of Excel can slow down significantly, making it difficult to manage operations effectively.
2. 𝐃𝐚𝐭𝐚 𝐄𝐧𝐭𝐫𝐲 𝐄𝐫𝐫𝐨𝐫𝐬: Excel relies heavily on manual data entry, which can lead to errors and inconsistencies in data. These errors can have serious consequences, especially when it comes to critical operational data such as inventory levels, production schedules, or financial records.
3. 𝐒𝐞𝐜𝐮𝐫𝐢𝐭𝐲 𝐑𝐢𝐬𝐤𝐬: Excel files are typically stored locally on individual computers, which can create security risks if the files contain sensitive data. Unauthorized access or theft of an individual computer can lead to a breach of sensitive operational data.
4. 𝐋𝐢𝐦𝐢𝐭𝐞𝐝 𝐂𝐨𝐥𝐥𝐚𝐛𝐨𝐫𝐚𝐭𝐢𝐨𝐧: Excel files can be difficult to collaborate on, especially when multiple people need to access and update the same file. This can lead to version control issues and errors in data.
5. 𝐋𝐚𝐜𝐤 𝐨𝐟 𝐀𝐮𝐭𝐨𝐦𝐚𝐭𝐢𝐨𝐧: Excel is not designed for automation, which means that many operational processes may require manual intervention. This can be time-consuming and error-prone, leading to inefficiencies and lost productivity.
𝐔𝐭𝐢𝐥𝐢𝐳𝐢𝐧𝐠 𝐜𝐥𝐨𝐮𝐝 𝐢𝐧 𝐨𝐩𝐞𝐫𝐚𝐭𝐢𝐨𝐧𝐬 𝐥𝐞𝐚𝐝𝐬 𝐭𝐨:
• 26% increase in demand forecast accuracy (Accenture)
• 16% reduction in supply chain operating costs (Accenture)
• 5% increase in revenue growth and profitability (Accenture)
• 16% average reduction in operations costs (Vanson Bourne)
• 15% average reduction in IT spending (Vanson Bourne)
• 17% average reduction in IT maintenance costs (Vanson Bourne)
• 19% average increase in process efficiency (Vanson Bourne)
Add AI on top of the cloud and these numbers increase dramatically!
𝐒𝐨𝐮𝐫𝐜𝐞𝐬:
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https://lnkd.in/eXT5kRtt