in Financial Modeling

Discover Analytica

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Everything that’s wrong with the common spreadsheet is fixed in Analytica.”

—PC Week

Of course there is a logic in an Excel model, but you can’t see it. What you see is the numbers. Of course you can handle multiple dimensions in Excel—as long as it’s not more than two ore three. Otherwise things soon get complicated. And changing the model should better be avoided. And of course you can do sensitivity and risk analyses... if you’re an Excel hero. But not without add-ons like @RISK or CrystalBall.

Learn more about what's wrong with spreadsheets >

Intuitive influence diagrams let you create a model the way you think, and communicate clearly with colleagues and clients.

An Analytica model is organized as a hierarchy of influence diagrams. They show you the big picture and let you build and navigate your model visually. Think of this as an interactive whiteboard—but with all the details, calculations, and numbers underneath.

Intelligent Arrays™ let you create and manage tables with many dimensions with an ease and reliability not possible in Excel.

Although the influence diagram appears as simple, it scales up to handle complex, multidimensional problems—effortlessly. Don’t worry about the rows-and-columns layout of your model. You create, change, or extent dimension, and Analytica cares about the rest.

Efficient Monte Carlo simulation lets you quickly evaluate risk and uncertainty, and find out what variables really matter and why.

You can easily replace any variable in your model by a probability distribution. Analytica generates sample values based on this and let you see and analyze the effects on every “downstream” variable in the model. With no special statistical expertise required.

Of course it’s not necessary to use a sledgehammer to crack a nut. If you’ve never felt any obstacles and constraints when building your financial models in Excel—maybe you don’t need to consider Analytica. And it doesn’t pay off learning something new for you. So it’s okay when you leave right now.

But you should definitely take a closer look at Analytica if one or more of the issues mentioned below apply to you. That is because financial modeling is more than “number-crunching”—the primary task Excel is used for

Learn more >

But you should definitely take a closer look at Analytica if one or more of the issues mentioned below apply to you. That is because financial modeling is more than “number-crunching”—the primary task Excel is used for

Learn more >

- When transparency and clarity is critical
- When your model has got more than two dimensions
- When you need to perform complex calculations
- When the model is of great complexity
- When the model is likely to be changed frequently
- When important decisions are based on the model
- When you or others have to modlify the model later

No other software package on the market provides the full range of features that Analytica does. Influence Diagrams for visual modeling to make models transparent. Intelligent Arrays™ to handle multiple dimensions and scale up model flexibly. And fast Monte Carlo Simulation to probabilistically analyze risk and uncertainty.

**Drill down, up or sideways.** Analytica’s influence diagrams are your model’s visual roadmap. With a hierarchy of nested modules, you always know where you are and can quickly move to any desired level or module.

**Build, navigate, present and explain your
model’s structure with speed and confidence.** Never again hunt down and decipher arcane row-and-column coordinates or formulas. Dispense with building separate summary models and reports in order to present and support your results. Your Analytica model is all you need.

**Forget about the rows-and-column restriction of Excel.** Analytica’s proprietary Intelligent Arrays™ provide the power to scale up your models to handle multidimensional problems with ease—for instance, sales over many time periods, products, and regions, as a function of alternative prices and marketing budgets. Each dimension becomes a simple index.

- Write and store each formula only once, not one for each cell in a table.
- Choose the most meaningful views in tables and graphs by interchanging rows, columns, and higher dimensions.
- Extend existing dimensions or add new ones—the model expands automatically without the manual work required with Excel.
- Reduce the time and effort to build, verify, and audit large models at an order of magnitude.

Risk and uncertainty are facts of life, which are more easily managed with Analytica. Understand and manage uncertainty explicitly, using probabilities—without requiring special statistical expertise:

- Express uncertainty by selecting the appropriate probability distribution in Analytica’s graphical browser.
- Propagate uncertainties throughout your model—with ease and efficiency—using Latin Hypercube or Monte Carlo sampling.
- Display uncertain results in any form: as probability bands around the median, probability density functions, cumulative probability functions, or standard statistics.

Analytica’s visual modeling interface might feel somewhat strange to a seasoned Excel user like you—but with just a little practice it is actually very easy to build financial models. From the simplest to the complex. **It’s almost as simple as 1, 2, 3.**

1

Drag-and-drop individual nodes into the diagram window. These nodes are the building blocks of your model. Identify and track them by applying your choice of shapes, colors and titles.

2

Connect nodes with arrows to define the influences of one variable on another. The resulting influence diagram is visually logical, easy to understand, and simple to change.

3

Drag-and-drop nodes into the diagram window. These nodes are the building blocks of your model. Identify and track them by applying your choice of shapes, colors and titles.

Connect nodes with arrows to define the influences of one variable on another. The resulting influence diagram is visually logical, easy to understand, and simple to change.

Define each node in its own object window by adding data, formulas and user-defined text descriptions:

Type in data directly, copy and paste, hot-link to Excel, or import from a database

Build formulas from a list of inputs in a drop- down menu. They are readily available, along with a rich set of functions, to paste into the formula for each variable. No more needle-in-a-haystack searches for spreadsheet cells.

Document assumptions, data sources and notes of explanation in your own words.

Here is what users say about Analytica, how it compares to Excel, how easy it is to learn and use, and how powerful it is once you get its underlying principles.

“Development using other tools would have been a lot slower and provided less capability. The way Analytica handles multidimensional arrays is a huge advantage over spreadsheets. We are so pleased with Analytica that we're recommending it for several other major projects at Bechtel SAIC.”

—Jim Nail, Project Leader, Bechtel SAIC, LLC

“The Last Word: If you have any professional responsibility for decisions involving money, buy Analytica and learn to use it. Once you understand Analytica modeling, you'll see why common spreadsheet single-number predictions in business are so often useless and misleading.”

—Charles Seiter, MacWorld

“With a little practice, you can link elements to build a model almost as fast as you can think.”

—MacWorld

“An Analytica diagram is worth a thousand spreadsheet cells.”

—Rich Brenner, The Brenner Group LLC

“My sincere congratulations for the development of a very fine program. I really like it. It is very easy to use when setting up models and especially in modifying them.”

—Naval Postgraduate School

“Analytica is very easy to learn. ... Once the software has been learned, it is delightful to use. The number of mouse-clicks and key strokes required to produce desired results is minimal, yet the process to follow is obvious.”

—Cox & Associates

“Analytica cuts through the spreadsheet obfuscation by giving you a better way to create testable, working business models and simulations, from the simple to the complex.”

—Intelligent Enterprise

“I estimate that the time I spend writing Analytica models is one quarter to one half of that devoted to similarly complex spreadsheets.”

—ORMS Today

“I also like the ability to integrate with Microsoft Office and cut and paste into Excel spreadsheets.”

—David Gill, The Boeing Company

“What had taken 39 spreadsheet workbooks and 9MB of disk space was now in one Analytica file, all of which takes up less than 100KB. This simulation intensive model took over 5 hours to run in spreadsheet form but only 1 1/2 hours with Analytica.”

—Brian Thomas, SENES Oak Ridge, Inc.

“Once clients see the effects of uncertainty on payback and profit illustrated graphically as Analytica models, they become much less intimidated by the data, and ultimately, more profitable decision makers.”

—Robert Brown, Partner, Decision Strategies, Inc.

“We also liked the way we could use probability distributions to be explicit about uncertainties. It can flexibly display simple point estimates or entire probability density plots, according to the interest of the user.”

—Eric Pan, MD., Center for Information Technology Leadership, Boston, Massachusetts