A spreadsheet on your computer
When you create a new spreadsheet, you’re essentially constructing an electronic
version of information so you can store it on your computer’s internal hard drive as
data. The spreadsheet software, as well as your internal hard drive (the hardware), are
designed for a single person to use at a time.

The evolution of data software and systems
Pros:
• As long as your computer remains secure, you’ll be the only one who has access
to your data.
• The spreadsheet software allows you to use formulas to automatically calculate
values based on data in another data cell or spreadsheet stored on your hard
drive. If your spreadsheet software is compatible with your database tool, you’ll
be able to automate data interactions between the two.
Cons:
• If your computer is stolen or your hard drive is corrupted, all of your data
will be gone.
• Your computer could get hacked, giving unauthorised parties access
to your data.
• If you wanted someone else to work collaboratively on the same spreadsheet,
you’d have to send them the file. They would then have to return the latest
version of the file. The file will pass to and fro, resulting in many different versions
of the same spreadsheet.
2
Pros:
• Anyone who has access to the server can be granted permission to read and/or
write the same spreadsheet to improve collaboration.
• Depending on the sophistication of your company’s software (ERP system), you’ll
be able to automate data interactions between a number of your software tools.
E.g. Should the projected profit margins calculated by one of your programmes
fall below a certain level, your email software would automatically send a
notification to a relevant individual.
Cons:
• Everyone with access to the data can write, rewrite or erase data, with no record
kept of the changes. Should an error slip in or a willful manipulation of data
occurs, it will be very difficult to detect and trace it back to its source to correct
and hold accountable the person at fault.
• When audit time comes, you’ll need a team of auditors to sift through data stored
in various locations on your server to combine it into a single, coherent report.
Because they have to rely on the latest version of the file with no record of the
changes (legitimate or illegitimate) that have occurred along the way, it will be
impossible to guarantee the accuracy of the data they report on. Failing an audit
could result in fines and/or other penalties for the company.
• Other departments or regional offices might use different software systems that’s
incompatible with yours. This creates data silos that limit collaboration and prevent anyone from gaining a Big Picture overview of operations..