I love Excel and assume it's the most misused business application ever. People use Excel for uncommon tasks (data repository, progress tracking, calendars, workflow building) because they fear new apps and the associated change.
Let's leave emotions aside and analyze Excel as a project management tool vs. Monday.com (this isn't a commercial post) by deep-diving into the Total Cost of Ownership (TCO) aspects.
Experts have already explained the deficiencies of Excel when it's misused.
While I am the biggest fan of Excel, I cringe every time I see the product being used as a business solution. Using Excel to run a business like it’s 1999 is nothing to brag about. The benefits are purely artificial. (c) Joseph Kalaf "To Excel or Not to Excel."
When managing dozens of projects with regular approvals, the choice of tools isn't just about functionality but cost efficiency and productivity.
While Excel seems cheaper upfront, the hidden costs of resource wastage can add up. Monday.com, with its automation and collaboration capabilities, could bring substantial savings and better productivity.
Basic cost
Licensing Costs
Excel:
$200 per 2 users
$300 per 2 users for the Standard Plan.
Labor Costs
Excel: Suppose a company has a pipeline of 30-40 projects.
We assume that two master data administrators spend 4 hours per week each on data entry and updates. Thus, the monthly cost is $50/hour* 16 hours * 2 admins = $1600.
In addition, we add 2 hours per week for email reminders and other types of manual coordination ($800) and ten approvals per month involving five people each, with an average cost of $75/hour and time consumption of 2 hours/person ($7500).
Finally, reporting would take 2 hours/week/admin, i.e., $800 monthly.
Overall: $10,700 per month or $128,400 p.a.
Monday.com: We can expect a 50% improvement in data entry and a 75% improvement in reporting, coordination, and approvals, i.e., $33,900 per annum in workforce cost.
Residual Costs
Excel
Data Security and Backup Costs (Excel files are often stored on local drives or shared cloud storage (e.g., OneDrive, SharePoint). While these platforms offer basic backup options, additional data protection or compliance-level backups may be costly). $1000.
Data Consolidation and Version Control (additional hours may be needed to verify and consolidate data and manage version control). 24 hours/year or $1200.
Excel Macros and Automation Costs (training team members in VBA or hiring consultants to develop and maintain macros). $2000.
Collaboration Software Costs (additional subscription fees for communication or project management tools to supplement Excel). $1000.
Compliance and Audit Costs (additional software or manual auditing efforts to ensure compliance). $2000.
Overall: $7,200 p.a.
Change and Knowledge Management (basic training, user documentation, internal communications). $20,000 (one-time).
Specialized Support or Consulting Fees (additional consulting hours or specialized support costs may be incurred if in-house expertise isn't unavailable). 24 hours or $12,000 p.a.
Custom Integration and API Costs (custom API development, ongoing maintenance, or third-party integration costs). $4000
Advanced Training or Certification Costs (to fully leverage the platform's capabilities, costs for advanced training sessions, online courses, or certifications for key users might be needed). $3000
User Adoption and Change Fatigue Costs (potential temporary productivity losses or the need for extended onboarding periods that may not have been accounted for and may have affected team efficiency): $5000 (one-time).
Data Migration Cleanup (additional labor or consulting hours for data cleanup during or post-migration). $2000
Ongoing User Feedback and Iterative Platform Adjustments (additional hours for iterative improvements or minor customizations). 24 hours or $12,000 p.a.
Overall: $58,000 (year 1) and $33,000 (year 2 and onwards.)
TCO Comparison: Excel vs. Monday.com.
Here's a comprehensive comparison of the total costs, including both visible and hidden expenses:
Cost Component | Microsoft Excel | |
Licensing | $200 | $300 |
Labor (Including Approvals) | $128,400 | $33,900 |
Residual costs | $7,200 | $58,000 down to $33,000 |
Total Annual Cost | $135,800 | $67,200 - $92,200 |
Leave Excel as a business application
Remember that Excel is a business application. If you need to do more than work with spreadsheets and analyze basic numerical data, don't get stuck using the Swiss Army knife as a long-range missile, despite its convenience and cost-efficiency.
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