Intro to Spreadsheet and Business Modeling

8/10/2019 Intro to Spreadsheet and Business Modeling

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IntroToSpreadsheetModeling ProfessorMouwafacSidao

Saturday,

October

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2013

Definition

History

Examples

Spreadsheet and Business Analytics

Professor Mouwafac Sidaoui

Spreadsheet

What is a spreadsheet?

"spread sheet" or spreadsheet was and is a large

sheet of paper with columns and rows that

organizes data about transactions for a business

person to examine.

shows all of the costs, income, taxes, and other related

data on a single sheet of paper for a manager to

examine when making a decision.

electronic spreadsheet organizes information into

software defined columns and rows.

help a decision maker see the financial "big picture" for

the company.


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Brief History of Spreadsheet

Spreadsheets have been used by accountantsand Analysists for hundreds of years

Computerized or electronic spreadsheets are

of much more recent origin.

Dan Bricklin is the "father" of the electronic

spreadsheet.

1978, as a Harvard Business School student, he

came up with the idea for an interactive visible

calculator

Bricklin and Bob Frankston co-invented software

program VisiCalc [visible calculator].

Dan Bricklin & Bob Frankston

Approximately1980


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What came after VisiCalc?

spreadsheet software was growing rapidly in

the early 1980s

VisiCalc were slow to respond

Legal business distractions led to new

development

In 1983 IBM responded

Mitch Kapordeveloped Lotus 123 and the

application quickly became the new industry

spreadsheet standard


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What is Lotus 1-2-3?

Lotus 1-2-3 made it easier to use spreadsheets

and it added integrated charting, plotting and

database capabilities.

Lotus 1-2-3 established spreadsheet software

as a major data presentation package as well

as a complex calculation tool.

Lotus was also the first spreadsheet vendor to

introduce naming cells, cell ranges andspreadsheet macros.

Lotus Life

1983, Lotus first year of operations, the

company reported revenues of $53 Million

and had a successful public offering.

1984, Lotus tripled in revenue to $156

Million.

1985, Lotus employees grew to over a

thousand. This rapid growth led to a

shakeout in the spreadsheet segment of the

personal computer software industry.

1985, Lotus Development acquired Software

Arts and discontinued the VisiCalc program.


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What about Microsoft Excel?

The next milestone was the Microsoft Excel spreadsheet.

Excel was originally written for the 512K Apple Macintosh in

1984-1985.

Excel was one of the first spreadsheets to use a graphical

interface

Excel spreadsheet with a graphical user interface was easier.

Many people bought Apple Macintoshes so that they could

Excel spreadsheet program.

1987, Excel was one of the first application released for

Windows OS. 1989, Excel was Microsoft's flagship product

In the late spring of 1995, IBM acquired Lotus Development

and Microsoft Excel is the spreadsheet market leader.

Key Dates in the history of Microsoft Excel

1985 Excel 1.0 launched.

1986-88 Microsoft releases versions 1.0.6 and 1.5.

10/31/87 Launch of Excel 2.0 for MS-DOS version 3.0

1989 Launch of Excel 2.2 for Macintosh. New version includes

improvements in the calculation speed by 40% and added flexibility of

different styles within a single document.

12/9/90 Excel 3.0 is launched. This version includes Workbooks and is one

of the earliest Macintosh applications to offer Users Publish & Subscribe

functionality.

4/1/92 Microsoft Releases Excel 4.0 for Windows 3.1.

11/1/92 Excel 4.0a for Windows 3.1.

12/14/93 Excel 5.0; This version includes improved Workbooks and the

replacement for Excel Macro Language with Visual Basic.

7/27/95 Excel 7.0 for Windows 95/NT.


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Spreadsheet Historic Summary

Visicalc was the first electronic spreadsheet on amicrocomputer,

It helped turn the Apple II computer into a popular and widely

used system.

Lotus 1-2-3 was the leading spreadsheet when DOS was the

dominant operating system.

Excel now has the largest market share on the Windows and

Macintosh platforms

A spreadsheet program is a standard feature of an office

productivity suite.

Since the advent of web apps, office suites now also exist in

web app form.

Other Spreadsheet Applications

Open Office www.OpenOffice.org

Apple iWork Numbers www.apple.com/iwork/numbers

Google Docs Spreadsheet http://docs.google.com

JMP, SAS Product www.jmp.com/software

Tableau www.tableausoftware.com

SPSS, IPM Product www.spss.com many others


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References "VisiCalc '79: Dan Bricklin and Bob Frankston", Creative Computing, November 1984, vol. 10,

p. 122, 124.

"VisiCalc Production Ends", PC Magazine, August 6, 1985, vol. 4, p. 33.

Bajarin, T. "VisiCorp was PC software industry's training ground." PC Week, August 13, 1990,

v7 n32, p.117.

Browne, Christopher. "Historical Background on Spreadsheets", at URL

http://www.ntlug.org/~cbbrowne/spreadsheets.html, visited March 24, 1998; also checked

http://www.hex.net/~cbbrowne/spreadsheets.html 04/12/1999.

Claymon, D. "Profile: Mitch Kapor, The Lotus cofounder goes to bat for startups", Red Herring

Magazine, February 1999, URL www.herring.com/mag/issue63/news-profile.html.

Frankston, R. Email message, 04/15/1999a.

Frankston, R. Email message, 04/15/1999b.

Henderson, T.B., D.F. Cobb, G.B. Cobb. Spreadheet Software from VisiCalc to 1-2-3. Indianapolis:

Que Corp., 1983.

Kapor, M. Email message, 04/15/1999.

Mattessich, Richard. "Spreadsheet: Its First Computerization (1961-1964)", at URL

http://www.j-walk.com/ss/history/spreadsh.htm.

Pardo R. Email messa e 08/20/2004.

According to Bill Jelen mr. Excel

www.mrexcel.com

50% of Excel

users leave

80% of Exceluntouched...

Did you

know?


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Turning Numbers into Knowledge

The Art of Estimation: Ping Pong Ball exercise

How many ping-pong balls could you fit into

the room?

1. Take just 60 sec to answer the question

2. Solving the same problem in 5 min (with a partner)

Take 10 min to make a list of the points that

you think these two exercises illustrate.

Ping Pong Ball Exercise

What type of model did you use?

You modeled in terms of categories such as few,

some, lots or tens, hundreds, thousands.

You drew a mental picture of a ping-pong ball

and looking around the room

You then estimated that the answer belonged in

one category rather than another


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Volumetric calculation

You might have estimated the volume of:

a ping-pong ball

volume of a room

divided one into another

Did you model the ping-pong ball as a cube ratherthan a sphere?

Did you model the room as a large, empty box?

Did you ignore the furniture?

Did you assume that you were not allowed to squashor deform the balls?

Turning Numbers into Knowledge: Ping

Pong Ball Exercise

Solving the same problem in 5 min (with a partner)

Keep a note of how you go about solving it.

How did you go about solving the problem this time?

Did you use the same procedure but refine your measurements?

Did you use the extra time to take a new approach?

Did you change your model?

Did you modify your assumptions? Did you, for example make a

correction for the furniture or the shape of the room?

What were the differences between working alone and working in a team?

Did you share tasks?

Did you start with similar ideas or did you spend time arguing about the

proper approach?

Given more resources (time and people), chances are you may have built a

more sophisticated model.


Pong Ball Exercise


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What have you

learned about

modeling?


Pong Ball Exercise

Online calculator

www.online-calculators.co.uk/volumetric/roomvolume.php

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Intro to Spreadsheet and Business Modeling