In this data-driven world, where the need to extract insights from vast amounts of information is ever-increasing, the question arises: Is Excel still relevant? Let's delve into its role in modeling business scenarios and analyzing data to determine if it stands the test of time.

Modeling: Excel's Unmatched Simplicity and Versatility

The demand for business modeling tools continues to rise, with companies seeking efficient ways to convey their business models in financial terms. for example. in M&A transactions, business planning, etc. Excel remains unparalleled in its simplicity when it comes to entering data and setting up calculations in cells. Its status as the default tool is uncontested, given its handiness and the lack of a viable alternative that offers the same suite of shortcuts and features required by power users.

Anecdotal evidence supports this claim, as witnessed in a recent transaction where a business plan was initially modeled using a programming language. The program was never used. It was replaced by an Excel model as altering assumptions of a calculation based on code was not a viable alternative in a sell-side process.

Data Analysis: Excel's Evolution and Challenges

With data analysis, the game is slightly different. The need for changing content in cells is less pronounced. Until recently, the amount of data that could be handled with Excel was rather limited. Moreover, creating and then analyzing datasets was rather cumbersome. Nobody wants to manually perform standard calculations and ensure that all cells within a row have been updated. Nobody wants to combine datasets by applying lookup functions to all parameters of the second data source, which in turn also hampers performance. Thus, there are good reasons why alternative programs such as Alteryx, R, Stata etc. could be considered a better solution. There is just one problem: those are typically not readily available on working laptops. This is why users stuck with the Microsoft product for so long and no alternative default program has emerged.

In the meantime, the Redmond-based company has expanded its toolkit with PowerPivot. If now promoting via Copilot would ease the process and people would only need to have to sense check results and suggested implications, Microsoft’s Excel would rightfully gain the spot as the prime trusted program for data analysis.

Excel's Future: Modeling Champion and Data Analysis Frontrunner

In conclusion, Excel's role as the modeling tool of choice remains unchallenged, thanks to its unmatched simplicity and versatility. As the program has been evolving to big data and is expected to integrate prompting for data analysis, Excel will continue to be paramount for individuals seeking success in business.