Spreadsheet Application In Business 3i3431

A BRIEF OF SPREADSHEET APPLICATION IN BUSINESS Aby Abdul Rabb, Nagercoil, India M.Com.,M.L.M., M.B.A.,M.Phil (Com) *********************************************************** I.

INTRODUCTION

Spreadsheet is an interactive computer application program for business organization, analysis and storage of data in tabular form. Spreadsheets have replaced paper-based systems throughout the business world. Although they were first developed for ing or bookkeeping tasks, they now are used extensively in any context where tabular lists are built, sorted, and shared.

Spreadsheets developed as computerized simulations of paper ing worksheets. The program operates on data represented as cells of an array, organized in rows and columns. Each cell of the array is a model–view–controller element that may contain either numeric or text data, or the results of formulas that automatically calculate and display a value based on the contents of other cells.

Besides performing basic arithmetic and mathematical functions, modern spreadsheet software can have multiple interacting sheets, and can display data either as text and numerals, or in graphical form. It provides built-in functions for common financial and statistical operations. Such calculations as net present value or standard deviation can be applied to tabular data with a pre-programmed function in a formula. Spreadsheet programs also provide conditional expressions, functions to convert between text and numbers, and functions that operate on strings of text. This assignment briefly explains the application of spreadsheet in business.

II.

HISTORICAL SIGNIFICANCE OF SPREADSHEET

 Developed in late 1970's by Harvard student Dan Bricklin  VisiCalc for Apple II was the first  Lotus 1-2-3 was the most famous  Excel is now the most widely used 1

 Revolutionized business methods  Revolutionized decision-making  Responsible for business world adoption of PCs a. benefited decision makers (who approve computer purchases) b. operations once slow and clumsy now quick and simple c. inspired creation of new uses d. spreadsheet software was available only on PCs, at a time when PCs were generally used by hobbyists  word processing was evolutionary by comparison a. benefited mainly clerical staff b. productivity gains modest by comparison III.

USES OF SPREADSHEET APPLICATION IN BUSINESS

Many businesses use spreadsheets on a daily basis. Spreadsheets are designed to store information but in reality they do a lot more than that. Businesses use spreadsheets to model and manipulate data sets, to create graphical visualizations and ultimately to inform future decision making and planning. With popular spreadsheet programs such as Microsoft Excel, plus alternatives from Open Office and Google Docs, any business can put spreadsheets to good use. Spreadsheets can prove useful within a business of any size. The important uses of spreadsheets are: 1)

Model Information:

The main purpose of a spreadsheet is storage and modeling of a data set. Spreadsheets model financial, statistical and any other numerical data within systems of rows and columns. Each data item is contained within a single cell within these rows and columns. Cells can also contain formulas and references to other cells, so a spreadsheet can include calculations that are automatically processed when the values in the cells are edited. In this sense, spreadsheets continually update when new data is added. 2)

Manipulate Data:

In addition to storing and modeling data, spreadsheets can manipulate and analyze data sets. Most spreadsheet programs allow s to enter custom formulas, with a range of commonly used preset functions also available. These functions allow to sort your data sets on particular values, or to filter it, letting get the particular analysis of need. Spreadsheets also 2

provide conditional processing, where the value in one cell depends on the result of a conditional test on the data.

3)

Visualize Graphically:

Spreadsheet programs include tools for data visualization. When a data set stored within a spreadsheet, it can use this data as the basis for graphical displays such as bar charts, graphs and pie charts, with a range of charting options such as editing etc. These charts can be used within management teams to gain an insight into the data, as well as to communicate this data as part of presentation activities in corporate contexts. 4)

Inform Decisions:

The ability to analyze and present data sets means that spreadsheets are used within many companies to inform the decision-making process. Any effective future planning activity naturally needs to be informed by a clear picture of the present and past, a task spreadsheets are ideally placed to assist. Spreadsheets allow carrying out performance measurement.

For example, within a retail or service organization can use spreadsheet data transformed into a bar chart to see how well the business performs at different times of the year. It helps to carry out speculative analyses, for example estimating sales projections and calculating the effect that these would have on the business as a whole. IV.

BENEFITS OF SPREADSHEETS

The facilities of spreadsheets make calculations easier to understand by displaying stages of the development of a sum, with the ability to write notes explaining each line. The grid encasing the cells in the spreadsheet can either be visible or hidden in print outs, enabling reports to be formatted from the display of the spreadsheet. Templates containing the formulas for regularly used spreadsheets increase productivity by removing the need for highly educated operators. Spreadsheets can also interact with databases to populate reference fields, automating almost the entire creation phase of the spreadsheet. 1.

Development:

The ability of spreadsheet programs to exchange data with other applications enhances the advantages of spreadsheets and reduces the disadvantages. Integration with graphic and word processing packages improves the production of reports and graphs, making the figures in the 3

spreadsheet easier to explain. Integration with database systems reduces the disadvantages of data hoarding, data redundancy and format overhead for the storage of the raw data in the spreadsheet. The benefits to a small business using Microsoft Excel may be fairly obvious – Excel offers a grid-like platform where you can enter and transform data into formatted information, as well as use features such as charts and graphs. But Excel offers far more than just ways to dress up the characters in its cells. Small businesses may find Excel far more of a workhorse than expected, with Excel “excelling” in its contributions to both financial and non-fiscally. 2.

Fact Check:

It is possible to do some of the calculations required for an Excel spreadsheet on paper or with a calculator. Located on the “Home” tab’s “AutoSum” button are instantly clickable ways to add addition, averaging, division and subtraction to your spreadsheets. For example, if totaling up payroll expenses for your 20-person staff highlight the salary cells and click the “AutoSum” button to instantly to see the total spent. Any time when we click in to change a payroll number, the AutoSum feature automatically updates. 3.

Printing Press:

Although the business will have to take care of the actual printing, Excel can turn small business into a small printing press without having to enlist graphic designers, desktop publishers or layout personnel. In Excel’s “File” tab’s “New” option is a large collection of templates are available and these templates to create materials without having to start from scratch, saving the business concern to setup time on forms such as receipts, invoices, labels and timesheets, as well as more creative items such as cards, booklets, presentations and fliers. All of Excel’s templates are completely customizable, which means your business can benefit from all of the setup but still leave personal stamps such as inserting a logo or changing the colors and fonts on the materials. 4.

Accessible Records:

One of the main benefits of the program is that, information is always access. Unlike keeping data in a ledger, which can get messy with cross-outs, erasures and liquid paper, Excel spreadsheets remain in their easy-to-read format and are available – even enlargeable with the zoom features – any time depends on the needs of need of information. 4

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Collection Spot:

Excel offers innumerable ways to assist in the day-to-day business functions of finance and math, but it can also serve business as a catch-all. If you’re preparing one spreadsheet from multiple documents including other spreadsheets, images, portable document format files and other files, Excel can help your business corral everything into one single file. Use the “Insert” tab to add other objects directly onto the spreadsheet, keeping everything together. Add extra sheets to the spreadsheet at the bottom of the work page, or keep everything on one sheet and take advantage of the scroll bar. Collecting multiple files in one spreadsheet may make the Excel file slightly larger, but you then only have one file to send rather than many. 6.

Disadvantages of Spreadsheets:

The capabilities of spreadsheets are deskilling. Workers no longer need to have specialist skills, and must compete with cheaper unskilled labor. Individual spreadsheets installed on each of the PCs in an office also enable individuals to hoard data and make their own forecasts without cooperating with colleagues. This phenomenon leads to duplication of both data and effort throughout the organization. The structure of the spreadsheet increases storage requirements over the needs of raw data.

CONCLUSION Microsoft Excel spreadsheets hold more than a million rows of data and automate number crunching, but they can do so much more. Excel's simple interface lends itself to uses well beyond those that its designers ever imagined.

BIBLIOGRAPHY Minhas, Davinder. Computer Made Easy. New Delhi: Fusion Books, 2008. Stephen Bullen, Rob Bovey & John Green (2009). Professional Excel Development(2nd ed.). Addison-Wesley. ISBN 0-321-50879-3.

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