Excel: The Largest Shadow IT System in the World?

When files turn into a shadow IT system

Almost every company has them: Excel files that do far more than a spreadsheet ever should. What started as a quick fix for the sales team has become a business-critical system. Price calculations, forecast models, planning tools, reporting templates — all built on a foundation never designed for that purpose.

The problem is not Excel itself. Excel is an excellent tool for what it was designed for: analyzing data, running calculations, creating charts. The problem arises when Excel becomes an application platform.

This is exactly where a form of shadow IT begins in many companies: processes, logic, and decisions run through files, macros, and manual handovers without ever becoming a properly designed system.

Where Excel and VBA start to hit limits

VBA was Microsoft’s answer to the demand for automation in Office documents. And for simple tasks, it still works fine. But in practice, reality looks different:

• Knowledge monopoly — Often only a single person understands the macro logic. If they leave, the process stops.

• Limited traceability — Who changed what, and when? In many cases, changes can only be traced back with considerable effort.

• Security risks — More and more IT departments disable macros for security reasons — taking the business logic down with them.

• Scaling limits — Multiple users at once? Write conflicts. Large datasets? Performance issues. Complex workflows? Copy-paste between files.

• Time-consuming manual checks after every change — Adjustments often need to be reviewed by hand. That takes time and increases the risk of errors.

What once felt pragmatic becomes harder to manage over time. Not because Excel is wrong, but because a file has gradually turned into a business-critical process.

The real problem is complexity

With every new requirement, the file grows. More data, more rules, more exceptions, more manual checks. At some point, clarity gets lost.

That is when the real friction shows up:

• Changes take disproportionately long.
• Errors become easier to introduce.
• Important data becomes harder to understand.
• Decisions depend on structures that almost nobody fully understands anymore.

That costs more than time. It also takes internal control away from processes that should actually be manageable inside the company.

Why more is possible today than just replacement

Until recently, the case against custom software was usually the same: too expensive, too slow, too much effort. For many companies, it simply did not make sense to launch a classic software project just to replace a pricing tool, reporting setup, or planning model.

That has changed. Modern AI-supported development speeds up analysis, implementation, and testing significantly. This makes custom software commercially realistic in cases where it used to feel out of reach.

The key point is this: it is not just about replacing Excel technically. It is about rebuilding processes in a way that is clearer, safer, and more useful.

In practical terms, that means:

• More clarity — Instead of overloaded spreadsheets, users get clear views, interfaces, and dashboards.

• Less effort — Changes are implemented and tested in a structured way instead of being painfully patched through overgrown files.

• More internal control — Your team can manage future adjustments more independently instead of relying on a few individuals or external service providers.

• More possibilities — Integrations, new features, and better workflows become possible where Excel and VBA would quickly hit their limits.

Easier in-house changes instead of new dependencies

An often overlooked question is who controls future changes. Most companies do not just want a better solution. They also want more independence in day-to-day operations.

That is why in-house adaptability matters so much. A good solution does not just replace existing files. It makes processes easier to understand and future changes easier to manage.

At the same time, sensitive data stays protected: for analysis, development, and testing, AI-supported workflows use abstracted inputs and pseudodata. Real company data does not need to reach AI agents.

The next step

At hero21, we turn overgrown Excel and VBA solutions into systems that create clarity, simplify change, and give your team more control over important processes.

If you want to understand where your current files or VBA setup are creating unnecessary effort today and what a better solution could look like, get in touch.

Contact us