Excel Use Persists in Business as Firms Shift Toward Centralized Data

Businesses continue to rely on Excel for data analysis and reporting, but many are adopting new tools to address challenges with accuracy and control.

Excel remains widely used in both enterprise and home environments, serving as a standard tool for ad-hoc data work. Despite its popularity, organizations are increasingly seeking alternatives that offer centralized management and improved collaboration features.

Specialized software and cloud-based platforms are being introduced in many companies to reduce dependence on spreadsheets. These solutions are designed to provide real-time updates, version control, and secure access, which are often lacking in traditional spreadsheet use.

Some organizations have already implemented these changes. For example, a seasonal business adopted Host Analytics Budget in 2008, which led to the removal of most of its spreadsheets and improved the speed and reliability of its reporting processes. Similarly, an NBA Development League team replaced its spreadsheet-based ticket tracking with a customer relationship management system, allowing for role-based permissions and immediate data updates.

What the numbers show

• Excel is estimated to have 750 million users worldwide
• About 88% of spreadsheets are found to contain at least one error
• One company reduced its spreadsheet count by 95% after adopting new software in 2008

An insurer shifted from manually compiling Excel reports to using a business intelligence server, which enabled clients to access customized reports through a secure web interface. This transition allowed for real-time data access and reduced manual intervention in reporting.

Studies have documented that spreadsheets are prone to errors, with a high percentage containing at least one mistake. The lack of formal governance, version control, and backup options in spreadsheets contributes to these risks and can make them inefficient for managing organizational data.

In financial operations, Excel often remains in use as a flexible option when existing enterprise systems are unable to adapt quickly to complex or changing requirements. This persistence highlights the challenges organizations face in fully transitioning away from spreadsheets.

Many companies continue to evaluate and implement new data management platforms to address these issues. The move toward centralized systems reflects ongoing efforts to enhance data accuracy, accountability, and security across business operations.

* This article is based on publicly available information at the time of writing.