Spreadsheet - Advantages

Overview

Spreadsheets are becoming more and more powerful. It is now possible to perform Wordprocessing, database, presentation and publishing functions all from within the spreadsheet.

As always, being able to use the right tool for the right job, will enable you to make the most of the appropriate features, and ultimately the best use of your time.

This section lists advantages that spreadsheets have, over

"paper" modelling, or
or using other products such as a database - (where a spreadsheet would be more suitable).

Automatic & fast recalculation

The ability to define a Formula, that produces a result by manipulating other cells.

Example:

You have a list of products that you sell. On paper you set up the following table;

Now the GST changes to 12.5%. This requires a complete update of all the Price(incl GST) values.

By Hand:

This process is time consuming and prone to errors if using paper and pencil.

Using a Spreadsheet

If the formulae are set up correctly, changing the GST amount should automatically change all the Price (incl GST) figures.

Trialing numeric options

The ability to test situations by changing numbers. This is often called "What if" analysis

Example

You are trying to work out how to make your monthly expenses fit into your income. On paper you set up the following table;

Once you have had the first try, you find you have spent more than you earn. You now have to "juggle" the figures to make them fit.

By Hand:

This can be a long and tedious task (especially if there is a large number of Expenses to deal with -- as would be the case for a farmer working out a budget for his bank!)

Using a Spreadsheet

Changing the values until the expenses are less than the income.
"What if" I changed Food to $150 ?

Size

A paper table is limited by the physical paper size, an electronic spreadsheet has much larger dimensions. The screen provides a window to the spreadsheet.

Most spreadsheets are at least 250 columns wide (A,B,...IV) by 250 rows, though most now exceed 8,000 rows (MS-Excel for Windows has 16,384). Obviously the actual size of the spreadsheet would be limited by the amount of memory the computer has (both in RAM and on the eventual storage device)

Graphs

The ability of the spreadsheet to easily convert the table of numbers into a graph, enables you to display your numbers in a way that enables trends to become obvious. For example a list of increasing numbers drawn graphically is easier to see than the numbers themselves. Many spreadsheets allow for 3D graphs.

Consolidation

The ability of the spreadsheet to combine spreadsheets easily.

For Example

A company may have several branches. Many "advanced" spreadsheets allow you to "join" or consolidate the spreadsheets so that you can produce a company perspective..

File Linking

Some advanced spreadsheets may enable one file to be linked to others.

So if a figure changes in one spreadsheet the change is reflected in any other dependant sheets.

This may - in some cases - be extended into other products. So a Spreadsheet may be linked into a Word processing document. When the spreadsheet data is changed the Wordprocessing document may also be changed.

Dynamic Data Exchange (DDE) is a process whereby a communication channel is opened up between two MS-Windows applications.
The data is maintained separately in each application, but data is sent to/from the applications.
(Note: this is not the same as Object Linking and Embedding (OLE) where the actual spreadsheet data is stored with the Wordprocessor document.)