Listen to the discussion above.
Every time I post my annual budgeting video on LinkedIn, I notice a recurring misconception. Many viewers seem to think that I’m selling a budgeting solution—a product that can be purchased and implemented within a company. This, however, is not the purpose of the video. The intention is not to promote a product but to highlight a critical distinction in how Excel is used, particularly in an enterprise setting.
There is no product. Just a methodology for Enterprise Excel anyone can use.
I do understand why this misunderstanding happens. When people watch a 10-minute or longer video, they might skip through it and form a general impression based on what they’ve seen in other similar videos. This creates a sort of “preconditioning,” where their brain quickly categorizes the video as yet another product pitch. Unfortunately, this preconception can dilute the actual message I’m trying to convey, making it harder to communicate my main point.
So, what is that point? It’s simple: there are two fundamentally different ways of using Excel. One is as a standalone tool for individual use, much like a calculator on a single machine. The other is more complex, using Excel in an enterprise context where it is integrated into a Hub-and-Spoke architecture (or client-server architecture), similar to how most modern enterprise systems are designed.
The Difference Between Standalone and Enterprise Excel Use
The main difference between these two methods lies in how data is managed. In a standalone setup, a spreadsheet is isolated on a single machine, and its data is confined to that machine. This setup works well for individual users but doesn’t scale effectively in an enterprise environment.
On the other hand, in an enterprise context, Excel can be used as part of a Hub-and-Spoke architecture. This architecture separates the data from the spreadsheets and stores it centrally, making it accessible across the organization. The goal is to improve business process efficiency by eliminating the inefficiencies of point-to-point communication, where spreadsheets are emailed from one person to another or passed around in various versions.
When spreadsheets are used in a point-to-point manner, the process becomes fragmented and cumbersome. One person may send a spreadsheet to another, who then updates it, and then sends it on to others. This back-and-forth results in a disjointed, inefficient system. In contrast, a Hub-and-Spoke model centralizes the data and streamlines communication across multiple spreadsheets and users, creating a much more effective workflow.
The Real Opportunity with Excel in the Enterprise
The opportunity I’m presenting is not about selling a product but about showing how the architecture of Excel itself can be transformed to meet enterprise-level needs. Specifically, this video demonstrates how Excel can be used in a Hub-and-Spoke architecture, which eliminates the inefficiencies of point-to-point collaboration.
The demonstration, which I’ve posted in various formats, was originally created in response to claims made by Colin Wall about the limitations of Excel in bottom-up budgeting. However, after seeing how people misunderstood the message, I realize that I need to emphasize more clearly that this is not a product I’m selling. Instead, the goal is to show that Excel is already capable of supporting complex enterprise processes, including budgeting, forecasting, and reporting, through a Hub-and-Spoke approach.
The Power of Hub-and-Spoke Architecture in Excel
One of the key advantages of a Hub-and-Spoke architecture is that it allows data to be centralized and easily updated across a range of spreadsheets. In the demonstration I provide, Excel functions as the central hub, with hundreds of spreadsheets linked to a backend database (referred to as the “librarian”). This setup allows for quick updates across all spreadsheets with the click of a button, ensuring consistency and accuracy.
Additionally, the architecture supports advanced features like version control, audit trails, permissions management, and data consolidation. These features are essential for enterprises that require efficient, collaborative budgeting and reporting processes.
Setting the Record Straight
A major reason I created this video was to address the false narratives being spread by software vendors like Anaplan, Workday, and others. These companies claim that Excel lacks the capabilities necessary for enterprise-level planning and budgeting. Their marketing often targets an audience that is unaware of Excel’s true potential, focusing on users who aren’t familiar with advanced Excel techniques or its potential for enterprise integration.
But the truth is that Excel already has the capabilities to support the Hub-and-Spoke architecture I’m demonstrating. The problem lies in how people use Excel. Most businesses still rely on the outdated point-to-point methodology, where spreadsheets are passed around inefficiently. The real opportunity is in shifting from this outdated process to a more scalable, efficient system using Excel’s built-in features.
Conclusion
To clarify once again: my annual budgeting video is not a product pitch. It is a demonstration of what’s possible using Excel in an enterprise context. The goal is to show how Excel can be used to implement a Hub-and-Spoke architecture, transforming inefficient point-to-point workflows into streamlined, enterprise-grade processes.
I hope this post helps to clear up the misunderstanding and brings more awareness to the power of Excel when used with the right architecture. Excel is already a robust tool for enterprise budgeting, forecasting, and reporting. The key is understanding how to leverage it properly for the enterprise environment.
Add comment