Released in 1985, Excel was introduced as the electronic alternative to its paper intensive predecessor. The spreadsheet software programme became known as one of the "killer apps" of the era, and anecdotally it and some rival systems were attributed to the growth in popularity of computers as a business tool.
Knowledge of the system became a prerequisite skill for individuals considering finance and analytics-related careers due to its functionality for organising, storing and manipulating data. It had "bandwidth" decades ago with the potential for over 17 million cells per worksheet.
Thirty years on, spreadsheet programmes systems are still an essential part of many GCC organisations' DNA.
James Meader, EY's finance performance improvement advisory leader for the UK and Ireland, provided insights in EY's Finance in the Cloud 2015 publication, asking, "When finance moves in the cloud, will CFOs sleep better at night?"
Then he observed: "As CFOs devote more time to strategic issues that affect the business, the focus should be on getting the right operating model in place." He noted although a company's financial management system is critical to success, many organisations had systems averaging from 10 to15 years old, with upgrade cycles ranging from five to 10 years.
Excel and the cloud
When asked today whether Excel and other worksheet programmes still have a place in organisational structure, Meader concurred. "In most organisations Excel is the most common tool to use for reporting and analysis within finance. The huge opportunity for organisations moving forward is now to get the best out of their cloud-based ERPs and other analytics and visualisation tools."
In EY's The DNA of the CFO series, Meader says a relatively recent evolution of the CFO's role has been the need for innovation and creativity. They are being asked to find innovative solutions to key business issues, such as designing and delivering new digital business models, and this at a time when regulatory scrutiny and the need for proactive risk management is increasing.
When combining innovation, creativity and governance, what do CFOs need to be mindful of when they balance legacy systems with cloud offerings in an arena of globalisation?
The answer lies in awareness as the market is shifting towards the cloud, says Meader, and all of the software vendors either have or are developing cloud-based versions of their systems. He expects this trend to continue.
The cloud, a solid reporting tool
So what opportunities are out there for the enlightened CFO in terms of analytics and the resultant business intelligence and enterprise strategy? "In terms of different tools most organisations quite rightly are starting with next generation ERP and then going from there," says Meader.
"The functionality and reporting ability of new cloud-based ERPs is very strong today and for many organisations that level of functionality is largely surpassing excel possibilities - even bringing intelligence."
CFOs are increasingly at the vanguard of how organisations deliver value and are being reset for a digital age.
Meader concludes: "The CFO role, like many other roles, is at a turning point. As finance organisations face a more connected, globalised and heavily scrutinised future, tomorrow's finance leaders need to think strategically about the know-how and experiences they will need to succeed in the future."
So while Excel has been part of the corporate know-how since the mid-80s, a plethora of transformational alternatives are being introduced to and implemented by CFOs who are letting go of legacy.
CFOs are more technologically savvy and increasingly weighing the risk reward of digital technologies that are accessible now that may substitute the previously well-known and familiar.
© Oracle 2017
