Replacing Excel in business: when and how to do it

An Excel solution should be replaced when several people work in it at the same time, an important process depends on it or only one person still understands how the file works. Until then, Excel is a good tool. Possible successors are off-the-shelf software, low-code, an interface or custom software. Which option fits is decided by the process, not by the technology.

Is Excel really a problem in a business?

Excel is not the problem in a business. In many businesses an Excel file came about because there was a need and nobody wanted to wait long for software. The file solved the problem, quickly and without a budget approval. That was not a bad decision.

A grown Excel solution is even valuable, because it shows what the business actually needs. Columns, colours, comments and formulas describe requirements that emerged from daily work. Anyone replacing an Excel solution should therefore read it carefully rather than simply swapping it out.

Excel becomes a problem when a spreadsheet takes on tasks it was not built for: as a shared database for several departments, as the control centre for production or scheduling, or as the only source of figures on which decisions are based.

What are the warning signs that an Excel solution should be replaced?

• There are several versions of the same file, such as “Planning_final_new_v3.xlsx”, and nobody is sure which one is valid.
• Several people need to enter data at the same time and overwrite each other.
• Only one person understands the formulas and macros, and maintenance stalls when that person is on holiday.
• Data is regularly retyped from the spreadsheet into other programs or the other way round.
• The file is getting slow, crashes or has already been corrupted once.
• It is impossible to trace who changed which value and when.
• Personal data sits in a file that is sent by email or copied onto USB sticks.
• The business cannot keep working if the file is lost.

A single warning sign is not yet a reason for a project. But if several apply, especially dependence on one person and the lack of a change history, the Excel solution has become an operational risk. At that point it is no longer about convenience but about what happens if the file or the person is unavailable.

What options are there for replacing an Excel solution?

There are four basic routes for replacing an Excel solution. They are not mutually exclusive. Often the best solution is a combination, for example off-the-shelf software for the core and an interface to the existing ERP.

Off-the-shelf software

Off-the-shelf software is the first option to check. For many typical tasks such as time tracking, scheduling, warehouse management, maintenance planning or project billing, ready-made products exist. The vendor takes care of maintenance, security updates and further development. The price is that the business has to adapt to the software to some extent. That is often not a drawback, because standard processes tend to be well thought out.

Low-code tools

Low-code tools sit between Excel and real software. They let you build tables with forms, views, permissions and simple automations without much programming. For manageable processes with few people involved, they are a good choice. With complex logic, many interfaces or strict requirements for data storage and permissions, they reach their limits, and the next isolated island is easily created.

Interface to existing systems

Sometimes the Excel file only exists because two programs you already have do not talk to each other. Then the right solution is not new software but an interface. The ERP holds the orders, accounting holds the payments, and the Excel list brings the two together. An interface or a report drawn directly from the existing systems makes the spreadsheet unnecessary.

Custom software

Custom software makes sense when the process is so specific that standard products can only support it with many workarounds, or when it is a real differentiator from competitors. A custom solution fits exactly, but needs a partner who maintains, secures and develops it after launch. Anyone who commissions custom software and then has nobody to run it simply trades an Excel risk for a software risk.

How do you decide between off-the-shelf, low-code and custom software?

The choice between off-the-shelf software, low-code, an interface and custom software becomes easier with a few simple questions. What matters is not what is technically possible, but what the business can operate reliably for years. We cover the trade-off between off-the-shelf and custom software in more detail in a separate article.

• How specific is the process really? If other businesses in the sector work in a similar way, off-the-shelf software is the obvious candidate.
• How many people and sites work with it? The more people involved, the more important permissions and traceability become.
• Which programs does the solution need to exchange data with? Many connections argue against an isolated low-code solution.
• Who will look after updates, backups and change requests after launch?
• Where should the data be stored, and what requirements does the GDPR impose for personal data?
• What happens if the vendor discontinues the product or changes its prices?

Answering these questions honestly often leads to a simpler solution than first expected. And sometimes to the realisation that the Excel file can keep running for now, with clear ownership, a fixed storage location and a backup.

How do you replace an Excel solution step by step?

1. 01Go through the file with the people who use it: what do the columns, formulas and colours mean?
2. 02Clarify which process sits behind the spreadsheet, who enters which data and who needs which reports.
3. 03Check whether the process itself can be simplified before transferring it to a new solution.
4. 04Assess the options in this order: interface, off-the-shelf software, low-code, custom software.
5. 05Clean up the data, removing duplicates, typos and outdated entries before migrating it.
6. 06Run the new solution in parallel for a transition period and compare the results.
7. 07Switch over, archive the old file as read-only and define who is responsible for the new solution.

What mistakes are common when replacing Excel?

• Software is bought before anyone has understood what the spreadsheet actually does.
• The person who built the file is not involved, and their knowledge is lost.
• The new solution only covers half the requirements, and a new Excel file appears for the rest.
• Uncleaned data is migrated, and the new software starts with the old errors.
• Nobody is responsible for maintenance, backups and further development after launch.

How NDVDL replaces an Excel solution

NDVDL starts with the file and the people who work with it. We come to you, go through the spreadsheet with the people who maintain and use it, and look at the process behind it. You then receive a written proposal for the simplest suitable solution. Often that is an interface or off-the-shelf software, and only if neither fits, a custom development. We also tell you when the Excel file can stay for now.

We take care of data cleansing, the transition phase and user training. After launch, NDVDL operates and maintains the solution, backs it up and develops it further, including the servers and networks it runs on. You have one fixed contact person for software and infrastructure.