Excel or Custom Developed System – Data Management and Security
The question that cannot be avoided.
Data management and information security are critical aspects of any business, especially when the data is accessible to multiple users. Excel and custom software differ significantly in this regard, both in terms of data storage, accessibility, security and retrieval.
Excel: Flexible but limited security options
Excel is a flexible and easily accessible solution, but limited security features and difficulties with collaboration between multiple users can cause serious problems in long-term use. For these types of systems, it is advisable to consider the increased risk of data loss, the lack of backups, and the limited possibilities for data access controls.
Data storage security:
Excel files are often stored on local machines or shared network drives. This makes them vulnerable to data loss, hardware failure, or unauthorized access. Moreover, when this is combined with a lack of regular backups, the situation can become much more serious. Files can become corrupted or lost.
Data access security:
Excel files do not support sophisticated permission management. Although password protection can be used, it is not scalable and can be easily cracked. This is especially problematic when sensitive data needs to be shared with multiple users.
Retrievability:
Excel does not automatically record activities, events, or changes made to files. When multiple users work in parallel, conflicts and errors are common and would have to be corrected manually, which is an almost impossible task in the “real world.”
Handling changes and errors:
Changes made in Excel often go unnoticed, especially if they are not documented. Accidentally deleted data or an incorrect calculation can have serious consequences if there is no way to restore the previous state.
Custom development: High level of security and data management
Custom software allows for sophisticated, customized data management and security controls. Precise authorization management, encryption, and logging not only protect system integrity but also help the company stay compliant. With these types of solutions, users can easily track changes and ensure that the system complies with industry standards, such as GDPR.
Data storage security:
Custom systems store information in databases, which are usually run on central servers and protected by regular backups. These can comply with data protection standards such as GDPR, which is especially important when handling personal data.
Data access security:
Custom-developed software enables sophisticated authorization management, such as defining user roles and permissions. Encrypting sensitive data and using secure access protocols minimizes the risk of unauthorized access.
Retrievability:
Such systems can provide varying levels of logging, so you can track who made what changes, when, and for what purpose. This not only helps with security, but also with corporate compliance.
Handling changes and errors:
Custom software uses version control or approval processes to control changes, making it easy to undo errors and restore a previous state. This reduces the potential for errors and minimizes negative impacts on operations.
Summary:
Excel can therefore be ideal for simple data management tasks where security is not a primary concern and cost-effectiveness is paramount. However, when the system handles more complex data or requires secure collaboration, custom-developed solutions are much more reliable and scalable, ensuring the necessary data security and traceability.
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