Why we need to stop trying to fix Excel by replacing it
Original tweet thread:
Full post:
I woke up today and chose violence.
Here's a recommendation to startup founders that's sure to start some fights - stop trying to fix Excel by replacing it.
I know you're trying to help but you're only making things worse.
Let's start with referencing this amazing tweet from @shreyas that fully encapsulates the problem.
And yet every other week some fancy new finance tool launches to "kill the spreadsheet" and I know we've learned nothing.
I'm not even sure why this is even a problem.
When your app doesn't work the way it's supposed to, people rarely try to invent a new programming language.
But when your Excel model doesn't work the way it's supposed to, everyone wants to make a new Excel.
Could it be that you don't know how to really use Excel? Maybe you don't understand how to make a financial model?
No one questions when people go to coding bootcamps to learn to program, but never tell somebody to take a finance modeling 101.
Nah - must be Excel's fault.
The worst versions of these tools are the no-sheet finance tools.
Broad generalization, but it feels like the people who build these don't actually know Excel well. They build something simple to solve basic use cases.
But then they claim they have an Excel killer?!
No-sheet finance tools are like no-code apps:
(A) Try to abstract & simplify to appeal to non-experts
(B) Work fine for very early stage when you don't have the team to fill expertise gaps
(C) But have built-in expiration when you hire experts who can see tool's limitations
That misguided attempt to oversimplify actually complicates things.
To simplify Excel's grid, they almost always resort to something point-and-click (ew)
To try to make formulas easier, they abstract to drivers which just means learning a new language
And while simplifying & abstracting may make the already straightforward things faster, any tiny bit of complexity becomes infinitely harder to build than before.
Of course you're also doing all this on a highly specialized GUI / no-sheet tool that has zero transferability.
And that takes me back to first principles. What are we solving for?
At the end of the day, people are looking for something that
(A) increases speed to actionable insight
(B) improves access to data
(C) makes reporting easy.
Do you have to replace Excel to do that?
Why aren't more tools supercharging the spreadsheet instead of replacing it?
Speed to insights: forecast trends, formulas recs, real-time collab
Access to data: direct data feeds, auto-refresh, Big Data
Easy Reporting: Fix Excel charts, add auto-linking, changelogs
I get it. It seems insane that how we run any financial analysis is based on a tool that's been around for 40+ years.
I don't think replacing Excel is the answer but I do want to see big changes - lots to fix, change, add & optimize.
Looking forward to what's next.