Why do 80% of spreadsheets contain errors?

According to a number of different surveys conducted over the last few years, spreadsheets are still a commonly used tool for business intelligence. But, according to this article in CIO.com, 80% of spreadsheets contain significant errors.

Think about that for a second. Many companies still rely on spreadsheets for critical decisions, but most spreadsheets contain significant errors. In other words, critical decisions are made every day based on error-filled spreadsheets. How much does this hurt business?

More than you imagine. According to this article, spreadsheet errors collectively cost businesses $11.5 Billion. Yes, that’s billion, with a “B”.

Why are spreadsheets so popular and why do they contain so many errors? I think the problem is pretty easy to understand. Spreadsheets are used so often because they are readily available and easy to operate. They contain so many errors for a couple of reasons:

1. One spreadsheet is often manipulated by many people. The more people that alter a spreadsheet, the higher the chances for error.
2. Because spreadsheets are often distributed via email, one spreadsheet can have multiple versions, each existing in different locations. After a while, no one really know which version is correct.

That being said, I believe the problem boils down to one basic issue: There aren’t any easy-to-use alternatives. Sometimes a company buys BI software to combat the issue, but unless it is easy to use, the users will go right back to spreadsheets.

I have a simple solution for you to try.  If your company wants to break free from spreadsheets, you should check out m-Power.

m-Power lets regular users convert spreadsheets into database tables and create web applications over the data. It lets you create all sorts of web-based reports, including the ever-popular pivot table. The benefit: All the data is housed in one location and accessed via the web. No more emailing spreadsheets. No more version control. Instead, you have accurate, web-based reports.

If you want to learn how m-Power can free you from spreadsheets, shoot us a note and we’ll give you a demonstration.