spreadsheet vs databases (12)
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Spreadsheets vs.Spreadsheets vs.DatabasesDatabases
for data storagefor data storage
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CommonalityCommonality
Can store some dataCan store some data
Can sort dataCan sort data
Can query informationCan query information
ItsIts veryvery easy to pickeasy to pickthe wrong applicationthe wrong application
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What is a Spreadsheet?What is a Spreadsheet?A spreadsheet is a programA spreadsheet is a program
that enables you to store,that enables you to store,manipulate, and graphicallymanipulate, and graphically
representrepresent
numericnumericdata.data.
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What are the characteristicsWhat are the characteristics
of a Spreadsheet?of a Spreadsheet?
Data items are often interdependentData items are often interdependent Changing one value may trigger changes inChanging one value may trigger changes in
another valueanother value
Provides great mathematical and statisticalProvides great mathematical and statisticalfunctionsfunctions
What if scenario supportWhat if scenario support
Solver supportSolver support What value has to change to produce a givenWhat value has to change to produce a given
result?result?
Excellent graphics and charting abilitiesExcellent graphics and charting abilities
Easy to learnEasy to learn intuitive interfaceintuitive interface
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What is a Database?What is a Database?
A database is an integratedA database is an integratedcollection of logically relatedcollection of logically related
data elements.data elements.
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Characteristics of a DatabaseCharacteristics of a Database
are designed to share.are designed to share. Two or more people can edit a database at theTwo or more people can edit a database at the
same time.same time.
are safe.are safe. Databases write data to the hard driveDatabases write data to the hard drive
immediately.immediately.
can handle large amounts of datacan handle large amounts of dataefficiently.efficiently.Much more efficiently than Excel.Much more efficiently than Excel.
Are easy to link tables of related dataAre easy to link tables of related datatogether.together. Trying to accomplish this in Excel can beTrying to accomplish this in Excel can be
unwieldy and invites errors.unwieldy and invites errors.
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Why use a databaseWhy use a database
to store data?to store data?
Need multiNeed multi--user accessuser access
Keep your data safeKeep your data safe
Preserve data integrity, use dataPreserve data integrity, use datavalidationvalidation
Eschew ObfuscationEschew Obfuscation
Avoid redundancy and confusionAvoid redundancy and confusion Data can be updated in one place andData can be updated in one place and
only takes up as much space as neededonly takes up as much space as needed
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Why not use a Spreadsheet?Why not use a Spreadsheet?(for data storage)(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 theOrganizations are starting to look at the
problems the misuse of spreadsheetsproblems the misuse of spreadsheets
is causing but its not an IT priority.is causing but its not an IT priority.
Spreadsheets are growing like weeds,Spreadsheets are growing like weeds,
but they may be a liability in thebut they may be a liability in the
SarbanesSarbanes--Oxley era.Oxley era.
Alan HorowitzAlan Horowitz
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The SarbanesThe Sarbanes--Oxley ActOxley Act
The single most important piece of legislationThe single most important piece of legislation
affecting corporate governance, financialaffecting corporate governance, financialdisclosure and the practice of publicdisclosure and the practice of publicaccounting since the US securities laws of theaccounting since the US securities laws of theearly 1930s.early 1930s.
Was created to protect investors by improvingWas created to protect investors by improvingthe accuracy and reliability of corporatethe accuracy and reliability of corporatedisclosures after a wave of accountingdisclosures after a wave of accountingscandals (Enron, Tyco, WorldCom)scandals (Enron, Tyco, WorldCom)
Signed into law on 7/30/02 by President BushSigned into law on 7/30/02 by President Bush
Requires companies to maintain a good auditRequires companies to maintain a good audittrail. Generating such a trail is often difficult totrail. Generating such a trail is often difficult to
do with Excel.do with Excel.
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Use Spreadsheets for:Use Spreadsheets for:
Complex computations on smaller set ofComplex computations on smaller set of
data.data.
What if analysisWhat if analysis
Solver SupportedSolver Supported -- Decision MakingDecision Making
Work in progressWork in progress
Standalone work in progress projects (onesStandalone work in progress projects (ones
not involving collaborative efforts)not involving collaborative efforts)