In today's economy, all companies are contending with a dynamic business environment characterized by volatile commodity prices and exchange rates, a shaky global financial system and slow growth in many countries. Many of them rely heavily on desktop spreadsheets to support the data collection and analysis related to their capital-asset planning. However, spreadsheets have inherent limitations that make them the wrong choice.

Spreadsheets are handy because most people already have them installed on their computer and have the basic skills to use them. They facilitate ad-hoc analysis and modeling. People who understand a business process and business objectives can quickly translate this knowledge into formulas and numbers. More formal software, such as dedicated planning applications, demand some degree of additional training for business users and may also require some ongoing involvement by the IT department to set up and maintain models and analyses. Thus for many departments and individuals this creates a barrier, and they conclude that it's just faster, easier and cheaper to work with spreadsheets.

Read more... | Source: The Big Fat Finance Blog.