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- Spreadsheets -- The good and the bad!
- ====================================
-
- Given my background -- an undergraduate degree in math and a graduate degree in
- a field that emphasized Operations Research -- you'd think I'd jump for joy at
- the mention of spreadsheets. See example spreadsheet <FILE16>
-
- Well, I did for a while. But frankly, I haven't used a spreadsheet in five
- years, and I don't plan to again for the rest of my life. Is it spreadsheet
- phobia -- or is there life after Lotus, Excel, and Quatro?
-
- Here's why I don't use spreadsheets. They're the wrong tool, are poorly
- designed, and I'd rather think. Let's look at each.
-
- Spreadsheets are the wrong tools
- ================================
-
- In "THRIVING ON CHAOS," the central theme is that the U.S. is headed for
- disaster for two reasons -- obsession with bigness and automation.
-
- In contrast, the Japanese with constant emphasis on small production runs,
- constant improvement, and value-added labor can rapidly adapt, modify, and
- differentiate products in niche markets. For example, how do you run a
- spreadsheet in your market for the next six months if:
-
- ┌───────────────────────────────────────────────────────────────────────────┐
- │ A major new Korean company enters your market │
- │ Five Japanese companies are each aggressively improving their product │
- │ Seven US companies sell their unprofitable divisions to hot-shot managers│
- │ The exchange rate affecting your supplies varies by 50% │
- │ The energy costs fluctuate by 25% │
- └───────────────────────────────────────────────────────────────────────────┘
-
- The conclusion -- mathematical modeling and strategic planning are the wrong ways
- to survive such markets. Instead, meticulous attention to customers and
- rapid incremental product improvements are the keys to the future.
-
-
- Poor Design
- ===========
-
- With the electronic spreadsheet now ten years old, by now they should
- handle simple things like -- significant digits and standard deviation.
-
- For example, when you multiply numbers of various accuracy (123, 4x10 to
- the 3rd power) the answer is accurate only to the least significant digit
- (in this case one). Yet, spreadsheets mix numbers of various accuracies
- without regard to the base rules of arithmetic.
-
- To be a bit more critical, spreadsheets don't handle numbers with
- associated standard deviations (the normal way to measure accuracy). Why?
-
- The answer is obvious. After a few arithmetic operations that include
- propagating the measures of accuracy, most users are surprised to discover
- standard deviations are larger than their answers. Colloquially,
- multiplying mush produces exponential growth in mush -- and no one wants
- accurate useless answers. That's the reason software for producing
- inaccurate but precise numbers appeals to certain markets. If people want
- numbers to believe in, spreadsheets are certainly a religion.
-
- However, that raises the question of spreadsheet productivity. Is the new
- generation of faster spreadsheets just for those who measure success by the
- size of the crank handle on their adding machine? If the newer
- spreadsheets are really four times faster, do you need 1/4 of the producers
- or 4 times as many output readers. Do greenbar sheets of numbers expand to
- fill the space (or pocketbooks) available? You answer it.
-
- I'd rather think!
- =================
-
- The heart of most number manipulation is only verification. Seldom
- does a spreadsheet creator shout "Eureka" and less seldom do such insights
- ever relate to reality. That's the central problem in mathematical
- modeling...the environment usually changes faster than the model.
- Mathematical models are naturally biased to be more wrong than right.
-
- I find many more ideas from using MaxThink and HOUDINI than from
- spreadsheets. From my viewpoint, finding insights and discoveries are more
- satisfying to me and maybe more useful to others than running a high-priced
- adding machine.
-
- REFERENCES :------------------------------
- Spreadsheet thinking <FILE72>
- Spreadsheet problems <FILE27>
-
- Neil Larson 1/14/88 FILE72
- 44 Rincon Rd., Kensington, CA 94707
- Copyright MaxThink 1988 -- Call 415-428-0104 for permission to reprint
-