A major area where BI software outstrips Excel is how well you can visualize data.Excel is built on its ability to perform statistical functions and act as a more customizable database for different data types.If all you need is an effective and versatile way to track data, Excel may be an appropriate solution.
For some organizations, this is not a problem, especially if their concern pertains to analyzing historical data.On the other hand, for organizations that require more immediate visualizations of data as well as the ability to interact with them, BI tools are better suited.However, it was not designed for complex or dynamic visualizations.The program does offer the ability to create charts and diagrams, but these are static and do not consider incoming data.Even so, many of Excel's advantages — including the more advanced functions — become less beneficial when dealing with more complex or broader datasets.
Performing "what-ifs" and other calculations are straightforward with Excel, but small errors in formulae can easily go unnoticed and lead to larger errors down the line.
Employing an alternative that allows for automated data centralization and data mashup is useful because it can cut down on your resource waste and improve ROI with faster insights. Keep in mind that the variety, amount, and velocity of data your organization is collecting will likely grow along with you.
Consider where you are now and where you want to go as your company matures.
This process is not a problem if your organization is small or if your data streams are more limited, but as your organization grows and changes it will become hard to keep pace manually.
However, if you collect data from multiple sources, as well as continuously, Excel can become the limiting factor overshadowing the quality of your insights.
Even as statistics and analytics software continues to evolve by leaps and bounds, Excel remains the program of choice for many companies.