Reducing Errors in Excel Models with Component-Based Software Engineering

08/31/2023

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by   Craig Hatmaker, et al.

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Model errors are pervasive and can be catastrophic. We can reduce model errors and time to market by applying Component-Based Software Engineering (CBSE) concepts to Excel models. CBSE assembles solutions from pre-built, pre-tested components rather than written from formulas. This is made possible by the introduction of LAMBDA. LAMBDA is an Excel function that creates functions from Excel's formulas. CBSE-compliant LAMBDA functions can be reused in any project just like any Excel function. They also look exactly like Excel's native functions such as SUM(). This makes it possible for even junior modelers to leverage CBSE-compliant LAMBDAs to develop models quicker with fewer errors.