Many commercial companies offer computer software packages to build financial planning models.

Managing complex operations can be very difficult without effective computer software. Selecting among the various available packages can be quite difficult, and many organizations rely on the advice and assistance of consultants to select and install the software. Nonetheless, anyone contemplating the purchase of such software is advised to become an informed consumer. The primary question is whether a software package generates the analysis and information needed to manage constrained resources.

Beyond that general consideration are others:

1. Design features. How flexible or adaptable is the software?

Thoroughness of analysis. Does the software model all of the important processes? Does it allow tests of changes to conditions (what-if analysis)?

3. Thoroughness of reports. Does the software provide detailed but understandable effects of alternative process changes?

4. Integration capability. Does the software accept input from existing information systems or common software? Does it provide output that is compatible with existing systems and software?

5. Technical elements. Is the software compatible with existing hardware and operating systems?

6. Customer service. Is the supplier reputable? Does it provide full support for the software before and after the sale?

7. Cost. Is the cost of the software acceptable?

Required

a. Search the Internet for at least two commercial financial planning software packages. (Hint:

Search for the key words, “financial model software.”’)

b. To the extent possible, contrast the two packages according to the preceding seven considerations.

c. Be prepared to present your analysis