Spreadsheets, Architecture, and Compliance
The Sarbanes-Oxley Compliance Journal has a very detailed article discussing the implications of spreadsheets on compliance and financial regulation. It is a well thought out, well written piece that gives very specific, very conservative steps to ensure that an organization doesn’t run into regulatory issues from day-to-day business practices.
One thing I appreciated in the article was its realistic tone, which recognized the existence of shadow systems and the role that they play in the real world. While the article focused on spreadsheets, this doesn’t mean that they are bad and that centralized CRM is good (as a matter of fact I might argue the opposite in many cases). The real issue being discussed is the risk that occurs when information architecture doesn’t match the needs of the organization.
Looking Globally
For many low-importance, one-off operations, a spreadsheets is fine. It can be shared easily, and usually owned by one person. However, what normally happens is that someone sharp (and usually not someone in IT) decides to do try to build some infrastructure around a spreadsheet without considering the consequences. It is quick, cheap, and easy to do, to a point. The problem is that the point when a spreadsheet becomes unmanageable is often well after the point where an organization depends on its output to function effectively.
For any system, an information architect needs to consider:
- Cost
- Effectiveness
- Visibility
- Traceability
- Mangageability
- Quality
- Auditability
Furthermore, the situation needs to be considered from a forward-thinking perspective. That is, we need to try to understand how the landscape is going to look a few years down the road, and to make our systems flexible enough so that we don’t put our organization into a bind if we are wrong.
Spreadsheets are normally built only considering cost and effectiveness, something that is only discovered after time has gone on. It is often the case that a system would be much more effective living in a database, BI tool, or custom software application when considered over time.
