Study Finds 94% of Business Spreadsheets Have Critical Errors

A recent study reveals that 94% of spreadsheets used in business decision-making contain errors, highlighting significant risks of financial and operational mistakes. Phys.org reports: Errors in spreadsheets can lead to poor decisions, resulting in financial losses, pricing mistakes, and operational problems in fields like health care and nuclear operations. "These mistakes can cause major issues in various sectors," adds Prof. Pak-Lok Poon, the lead author of the study. Spreadsheets are crucial tools in many fields, such as linear programming and neuroscience. However, with more people creating their own spreadsheets without formal training, the number of faulty spreadsheets has increased. "Many end-users lack proper software development training, leading to more errors," explains Prof. Poon. The research team reviewed studies from the past 35.5 years for journal articles and 10.5 years for conference papers, focusing on spreadsheet quality and related techniques across different fields. The study found that most research focuses on testing and fixing spreadsheets after they are created, rather than on early development stages like planning and design. This approach can be more costly and risky. Prof. Poon emphasizes the need for more focus on the early stages of spreadsheet development to prevent errors. The study suggests that adopting a life cycle approach to spreadsheet quality can help reduce errors. Addressing quality from the beginning can help businesses lower risks and improve the reliability of their decision-making tools. The study has been published in the journal Frontiers of Computer Science.

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