Are a collection of tables which are not linked to one another. Any link needs to be done manually or requires complex code.
Data is limited (e.g., with MS Excel to 1 million rows).
Each user structures his data, which bears a higher risk of duplicated and inconsistent data, as well as overwriting of formulas and formatting.
Data is widely distributed within a company.
Consolidation of data requires intensive search for the correct data, which results in unnecessary effort and bears risk for errors.
Parallel working is limited.
A (relational) database
Is a collection of tables which are linked to one another.
Data is unlimited.
Built-in data structure gives data consistency and makes validation possible.
Data is in one place (single source of truth).
Consolidation of data is automatically done in real-time. Any combination of data is possible but this will require some Java or PHP code.
Parallel working is possible.
Based on personal experience,
consolidated data is required to steer a company in the right direction
management expects reliable data within a couple of hours
discovering wrong data in front of superiors or customers is an embarrassment
wrong data leads to wrong decisions
data consolidation within spreadsheets is a challenge due to inconsistent, duplicated data, which is distributed all over the organization
The first database may only be the beginning of implementation of databases as a development tool, as engineers and managers understand the benefits of structured data.
A Database is a handy extension to the toolbox within research and development, where engineers and managers commonly uses MS Excel.