Web Apps vs Excel: Which to Use When
In some stage of your company’s lifetime, you may find yourself weighing the benefits of developing a web application from your Excel spreadsheet. Granted, it is a significant business move, so business owners must consider how either method will maximise efficiency. At this point, where does one draw the line for migrating to a bespoke web app from an Excel spreadsheet?
What is a Web Application and What Can It Provide?
Web apps operate in a cloud-based environment, meaning a computer data centre hosts the information, as opposed to individual machines. You probably already use Gmail or Outlook as your email client, both of which are primary examples of web applications. Modern SaaS systems often include features such as two-step verification, secure passwords, and the ability to generate interactive reports.
From a scalability standpoint, businesses can benefit greatly from having a web app developed. The flexibility and user-friendliness also expand to external users. The risk of conflicting versions is drastically reduced, ensuring information is more accurate, up-to-date, and minimises human error (e.g., copy-pasting, manual data input). More processes can run simultaneously when hosted on a server, as the software isn’t limited to one local computer that may potentially have an outdated version.
With more universal accessibility, there is some vulnerability. However, implementing an AAA (Authentication, Authorisation, and Accounting) approach to software security can shield potential threats. Additionally, web apps in 2024 often include compliance with regional privacy laws like GDPR and CCPA, providing enhanced data privacy and security features beyond what traditional Excel spreadsheets can offer.
What Can Excel Spreadsheets Provide?
Excel might make more economic sense for accounting functions, or managing and tracking customer data. Many start-up businesses begin on Excel, setting this familiarity as a default for data inputs. For a couple of users overseeing the data, it can be a streamlined method.
However, as businesses grow and more users are required to collate and input new information, the limitations of Excel become apparent. While cloud-based solutions like Microsoft 365 and Google Sheets now provide multi-user collaboration, version history, and enhanced data security, they still have limitations. Automating data exchange or scaling for many shared users can become a hindrance if businesses stay too long within the “Excel bubble.”
It’s important to recognise when this drags down business flow. In extreme cases, it can even impact a wider community. For example, Public Health England’s under-reporting of 15,000 COVID-19 cases in one week was due to data being saved on an outdated Excel file version.
Should I Use a Web App or Excel Spreadsheet?
When developing a web application, businesses take on responsibilities, support, and management. However, modern web apps are not just built from scratch; they can be developed using low-code or no-code platforms like Airtable, AppSheet, or Power Apps. These solutions provide an intermediary step for businesses needing more functionality than Excel but aren’t ready for a fully bespoke web application. This flexibility allows companies to create tailored solutions without heavy investment in development resources.
When testing new processes with minimal investment, Excel can work to an extent. However, complex and collaborative spreadsheets that forecast and visualise incoming data (e.g., stock) expose businesses to numerous risks. Even cloud-based spreadsheets have limitations in terms of collaboration and scalability through permission functions, often requiring ‘edit’ access from multiple users. Outgrowing Excel without realising it presents security risks, such as data breaches or manipulation.
In contrast, a web app offers better integration capabilities. Modern web applications can connect with other tools and systems (CRM, ERP, etc.) through APIs, providing a more seamless data flow and automation capabilities. Furthermore, they include AI and automation features, offering predictive analytics and insights that go beyond Excel’s capabilities. This ability to process large amounts of data efficiently and generate actionable insights is often a game-changer for growing businesses.
Conclusion
Reflect on scalability and how accessible you want your software to be. What problem do you need to solve, and for how many people? How will this method generate more leads? How will bugs and future updates be handled? Can you license the web application to create additional revenue?
The introduction of cloud-based spreadsheets, low-code/no-code platforms, enhanced security measures, and advanced integration capabilities has blurred the line between traditional Excel usage and the need for a bespoke web app. However, if your current system no longer fits a one-user-fits-all situation, migrating to a web application might be the step that aligns with your business goals.
