Excel is one of the most popular tools when it comes to data analysis and dashboard creation. Many companies use Excel dashboards due to their accessibility, ease of use, and widespread familiarity among professionals. In fact, it’s an excellent entry point for those who want to start analyzing their company's data and shows a commitment to generating and recording business data, even if manually at first.
However, when it comes to mid-sized companies, using Excel for dashboards can be a major trap. Despite its flexibility and reputation as the tool that runs the world, Excel has limitations that can compromise the efficiency and scalability of analysis processes.
Issues such as lack of automation, difficulties in sharing information, and vulnerability to manual errors make Excel less of a viable solution as businesses grow.
In this article, we will explore the main reasons why mid-sized companies should avoid Excel dashboards and seek more robust and scalable alternatives for their analyses. After all, if the goal is to better steer the business and make strategic decisions based on data, this requires reliable, secure tools that are prepared to handle increasing volumes of information.
What is a dashboard in Excel?
A dashboard is a visual tool that compiles, organizes, and displays data in a simplified manner to facilitate analysis and decision-making. It functions as a control panel, allowing managers to monitor key indicators, identify trends, and compare information.
In general, a well-structured dashboard presents charts, tables, performance indicators (KPIs), and other visual elements that aid in interpreting data intuitively.
An Excel dashboard follows this same logic: it uses Microsoft software features to organize and visualize information. Through pivot tables, charts, data segmentation, and advanced functions, Excel allows the creation of customized dashboards for various business needs.
Despite its flexibility and accessibility, Excel dashboards have significant limitations, especially for mid-sized companies dealing with large data volumes and requiring agile and scalable processes.These restrictions can compromise the reliability of analyses and hinder team collaboration, making it necessary to seek more robust and efficient alternatives.
Why is Excel not ideal for mid-sized companies?
Although Excel dashboards are a popular option for data analysis, they present several limitations that can undermine the efficiency and growth of mid-sized companies.
As businesses expand and the volume of information increases, Excel’s weaknesses begin to directly impact the performance, security, and reliability of analyses. This makes the tool unsuitable for companies that need agility.
Performance and Scalability
Excel was not designed to handle large data volumes efficiently. When a company grows and starts dealing with thousands or even millions of records, the software's performance becomes a problem. Large files can become slow, crash, or even get corrupted, hindering data analysis and delaying crucial processes. a limitação de linhas e a necessidade de cálculos manuais tornam o Excel inviável Additionally, the row limits and the need for manual calculations make Excel unviable for companies that require quick, real-time analyses. I personally experienced this early in my career, and it’s incredibly frustrating, to say the least.
Collaboration and Security
Another critical issue with Excel is the difficulty in collaboration. Since dashboards are created in local files, sharing them among teams can be challenging. Sending different versions via email, the lack of control over simultaneous edits, and the risk of accidental changes make the tool unreliable for companies that need secure and shared access. Moreover, data security is compromised, as anyone with access to the file can modify information — even unintentionally — increasing the risk of errors and data leaks.
Automation and Data Updates
The dependence on manual updates is a major obstacle for mid-sized companies that need always-updated dashboards. In Excel, data is usually imported manually or requires configuring macros and VBA, which demands technical expertise and can lead to inconsistencies. Without efficient automation, the company risks working with outdated information.
Lack of Integration with Other Tools
Mid-sized companies typically use ERPs, CRMs, and databases to manage different areas of the business. However, Excel has significant limitations when it comes to integrating with these tools.Although there are ways to connect spreadsheets to other data sources, this process is often manual, time-consuming, and prone to errors. This makes it difficult to centralize information and forces managers to rely on alternative solutions to consolidate data from different systems.
With these limitations, it becomes clear that Excel dashboards are not the best option for mid-sized companies seeking efficiency, security, and scalability in data analysis.
The ideal approach is to invest in more suitable and specialized tools that offer greater automation capabilities, improved user performance, and enhanced collaboration for growing teams.
When is an Excel dashboard still useful?
Despite its limitations for mid-sized companies, Excel dashboards can still be a viable option in certain specific situations. Small businesses, freelancers, and teams with simple demands can benefit from the tool’s ease of use and accessibility.
When the data volume is low and the need for automation and collaboration is minimal, Excel can be sufficient for creating reports and visualizing metrics efficiently.
- Small Businesses and Individual Enterprises
- For micro and small businesses that do not handle large data volumes and do not require multiple users to access the dashboard simultaneously, Excel can be a practical and cost-effective solution.
- Small retailers, freelancers, and early-stage startups can use it to monitor financial indicators, inventory control, and sales performance without the need to invest in more complex software. Additionally, for those already proficient in the tool, Excel allows dashboard customization to meet specific needs.
Specific situations where excel can still be a viable solution
Excel can also be useful in specific scenarios, such as:
- Temporary Analyses: Companies that need to create quick reports for a specific project or to test hypotheses before investing in a more robust tool.
- Small Data Sets: When the analysis involves limited information and there is no risk of spreadsheet slowdowns or crashes.
- Offline Use: In situations where there is no access to cloud-based software or integrated systems, Excel allows the creation of local dashboards without relying on an internet connection.
- Customized Reports:Some companies may need highly customized dashboards for a specific presentation, where Excel can offer flexibility in building charts and tables.
While Excel dashboards can meet these occasional needs, it is crucial for companies to assess their long-term demands. If the business is growing and requires scalable analyses, automation, and greater integration with other systems, investing in more advanced tools will be essential to ensure that analyses remain viable, useful, and not another problem to be solved.
More efficient alternatives for business dashboards
For mid-sized companies that need more scalable and secure solutions, Excel dashboards are no longer the best option. Fortunately, there are modern Business Intelligence (BI) that offer greater automation, better performance, and integration with other platforms. These systems enable companies to make data-driven decisions more efficiently and reliably. Some of the most popular options include:
- Power BI (Microsoft) A robust tool integrated into the Microsoft ecosystem, offering strong automation capabilities and advanced analysis.
- Tableau – Renowned for its data visualization and interactivity, ideal for companies needing detailed and dynamic dashboards.
- Google Data Studio – A free, cloud-based solution that is easy to use and integrated with various Google data sources, such as Google Analytics and Google Ads.
- Looker (Google Cloud) – A highly scalable BI platform focused on companies that need advanced data analysis and database integration.
Advantages of BI Platforms
The use of BI tools offers several benefits compared to Excel, especially for mid-sized companies that need more efficient and scalable processes.
Better Performance and Integration
BI platforms are designed to handle large data volumes without compromising performance. They allow direct connections to databases, ERPs, and CRMs, eliminating the need for manual data imports and reducing the risk of errors.
Data Update Automation
Unlike Excel, where data updates are typically manual, BI tools automate this process. Dashboards are updated in real time or at predefined intervals, ensuring that teams always work with up-to-date information according to their needs.
Enhanced Visualization and Interactivity
With dynamic charts, interactive filters, and intuitive interfaces, BI tools provide a much richer data analysis experience. This makes it easier to identify patterns, trends, and insights that support strategic decision-making, while also giving users more autonomy. The ability to view the same information in various formats and charts, applying different filters, allows users to explore data in greater depth and generate more robust and comprehensive analyses.
Increased Data Security and Governance
BI platforms offer advanced access controls, allowing different users to view only the information relevant to their roles. Additionally, they ensure greater data security, reducing the risk of accidental changes and data leaks.
With these advantages, it is clear that BI tools are far more efficient and secure alternatives for mid-sized companies that need professional dashboards. By replacing Excel with more modern solutions, companies can improve data analysis, increase productivity, and make more data-driven decisions to drive business growth.
How to transition from Excel dashboards to a BI tool
Migrating from an Excel dashboard to a Business Intelligence tool may seem challenging, but with a well-structured plan, the process becomes simpler and more efficient.
Before choosing a BI tool, it is essential to understand the company's specific needs. Some key questions to guide this process include:
- What questions do my analyses need to answer?
- How do I want to segment or divide this information? (e.g., by date, product, region, etc.)
- What data is involved in these analyses?
- What is the data volume that needs to be analyzed?
- Is there a need to integrate with databases from an ERP, CRM, or other systems?
- Who will be the users of the dashboard?
Excel may contain disorganized, duplicate, or inconsistent data, which can cause problems during migration. Before importing to the new tool, it is essential to review, clean, and standardize the information to ensure that BI dashboards are more accurate and reliable — something that BI tools themselves can assist with.
Based on the company’s needs, it’s time to select the best BI platform. Some popular options include:
- Power BI: Ideal for companies already using Microsoft products and needing integration with Azure, SQL Server, and SharePoint. It’s versatile and a top recommendation in Gartner’s Magic Quadrant.
- Tableau: Perfect for those seeking advanced visualizations, deeper customization, and interactivity in reports.
- Google Looker Studio: A good option for those needing a free, cloud-based tool.
After choosing the BI tool, the next step is to connect data sources. Depending on the platform, this can be done via:
- Direct connection to SQL databases, BigQuery, and others.
- Integration with APIs from ERP, CRM systems, or services like Google Analytics.
- Uploading CSV files, Excel sheets, or Google Drive spreadsheets for initial analysis.
Once the data is imported, it’s time to build dashboards in the new tool. This process involves creating interactive charts and dynamic reports, defining KPIs, and setting strategic metrics for the company.
Since the transition to a BI tool requires a learning curve, it is crucial to train the team to ensure everyone can use the new platform efficiently. After implementation, the company should monitor the performance of the new solution and make adjustments as needed.
Tips for Choosing the Best BI Platform
- Consider the Company’s Size and Needs: Companies with large data volumes may require more robust solutions.
- Check Integration Options: If the company uses systems like SAP, Salesforce, or Google Analytics, choose a tool that allows native connections with these platforms whenever possible.
- Evaluate Cost-Benefit: Some tools offer free versions, while others require monthly licensing. Select an option that fits the company’s budget.
- Test Before Deciding: Many BI platforms offer free trial periods, allowing the company to evaluate the interface, features, and usability before investing.
Migrating from Excel dashboards to a modern BI tool can bring significant gains in productivity, reliability, and scalability. With proper planning, mid-sized companies can transform their data analysis and make strategic decisions more efficiently.
From Excel Spreadsheets to a Data-Driven Culture
Business Intelligence tools offer automated integration, better performance, and more interactive visualizations, enabling managers to make decisions based on up-to-date, reliable information. The migration may seem challenging, but with the right planning and the right platform, the transition becomes a crucial step toward business growth.
If your company needs help moving away from Excel and adopting a more efficient BI solution that strengthens a data-driven culture, count on equal BI. Our specialized team can guide you in choosing the best tool and ensuring a safe and optimized transition. Get in touch and discover how to turn your data into strategic insights!
