Modeling for Insight: A Master Class for Business Analysts

Praise for Modeling for InsightMost books on modeling are either too theoretical or too focused on the mechanics of programming. Powell and Batts emphasis on using simple spreadsheet models to gain business insight (which is, after all, the name of the game) is what makes this book stand head and shoulders above the rest. This clear and practical book deserves a place on the shelf of every business analyst.Jonathan Koomey, PhD, Lawrence Berkeley National Laboratory and Stanford University, author of Turning Numbers into Knowledge: Mastering the Art of Problem SolvingMost business analysts are familiar with using spreadsheets to organize data and build routine models. However, analysts often struggle when faced with examining new and illstructured problems. Modeling for Insight is a oneofakind guide to building effective spreadsheet models and using them to generate insights. With its handson approach, this book provides readers with an effective modeling process and specific modeling tools to become a master modeler.The authors provide a structured approach to problemsolving using four main steps: frame the problem, diagram the problem, build a model, and generate insights. Extensive examples, graduated in difficulty, help readers to internalize this modeling process, while also demonstrating the application of important modeling tools, including:Influence diagramsSpreadsheet engineeringParameterizationSensitivity analysisStrategy analysisIterative modelingThe realworld examples found in the book are drawn from a wide range of fields such as financial planning, insurance, pharmaceuticals, advertising, and manufacturing. Each chapter concludes with a discussion on how to use the insights drawn from these models to create an effective business presentation. Microsoft Office Excel and PowerPoint are used throughout the book, along with the addins Premium Solver, Crystal Ball, and Sensitivity Toolkit. Detailed appendices guide readers through the use of these software packages, and the spreadsheet models discussed in the book are available to download via the books related Web site. Modeling for Insight is an ideal book for courses in engineering, operations research, and management science at the upperundergraduate and graduate levels. It is also a valuable resource for consultants and business analysts who often use spreadsheets to better understand complex problems.