The tools of the master forecaster

GCN Lab Review: Microsoft Excel 2007

Pros: Universal application with improved graphics and Web support
Cons: Can be time-consuming to create complex business models

Performance: A
Functionality: A
Price: A-
Ease of use: A-
Overall importance: A

Contact:
Microsoft Corp.
(800) 765-7768
http:// www.microsoft.com

Some people might hate to hear it, but perhaps the most pivotal business application in financial history is Microsoft Excel. What’s more, Microsoft has made leaps and bounds with the recent release of Excel 2007, as part of the Office Enterprise 2007.

As with all the new Office applications, the most noticeable difference between the old and new versions of Excel is in the layout of the tabs, icons and toolbars, as well as the look and feel of the application.

Although Microsoft claims that the learning curve of the Office suite could average two to three weeks, I got up to speed in about two hours. A lot of this is attributed to the restyling and configuration of Excel ’07 which includes a graphical ribbon across the top of the window that displays the tools that once lay hidden in older versions of the application.

As this review emphasizes, Excel is not only the place where most business intelligence tools and plug-ins operate, but Excel by nature is also a data cube and great software for quick operational analysis. One issue that I have with the new version is that accessing the Analysis Tool Pack is a lot more difficult.

The Data Analysis tool pack lets users perform 19 different types of analysis calculations on data, including running a summary statistical analysis on a set of numbers that renders the mean, median, mode, range and variance of those numbers, which the new Excel can compute in seconds.

Another part of the tool pack performs regression analysis, which can be used to find out if a mathematical relationship between two variables exists. For example, let’s say I have a hypothesis that the distance that a tank can travel is heavily correlated to the weather.

I can gather the numerical data in a field study, run a regression analysis in Excel and see if a relationship exists or not.

Like the older versions of Excel, the tool pack is not installed by default. But the ’07 version makes it easier to install and operate because there are fewer steps in the process to get to the tool pack.

Despite the fact that Excel ’07 can run the same statistical Six Sigma Data that Crystal Ball is capable of, we still found Crystal Ball easier to use and more robust in its Six Sigma analysis. However, the best scenario is a combination of both programs.

The list price for Excel 2007 is $230, but you can upgrade for about $100.