Office Web Parts is a collection of Web Parts i.e. Office PivotChart etc.. and data retrieval services that work closely with Microsoft Office 2003 and Microsoft Windows SharePoint Services 2.0. The Office Web Components for SharePoint, among other things, allow you to connect SharePoint list data to common Excel components which use ActiveX technology to provide a rich user interface in IE. If a user has Office 2003 installed they can also interact with the component. Because of IE security and activex requirements, users should have the SharePoint site in their IE Trusted Sites zone for this to work. 
 
Following are the steps required to configure these web parts in sharepoint:
  1. Open ad Web Part page and add the Office PivotChart component from the Virtual Server Gallery.
  2. Click on the "Connect to an external data source" link in the web part.
  3. Add a new data connection for sharepoint list select Data retrieval services.
  4. Select Windows SharePoint Services lists.
  5. Type in the URL to your site and then select the list you wish to retrieve data from.
  6. Select the columns you with to retrieve.
  7. The next couple of screen will let you specify sort and filter conditions.
  8. This next step is most important. It is selecting the location to store the data connection information. This must be a location that is accessible to users who will view the web part. A logical location for this on a SharePoint site is a document library which is what I have used in this demo (assuming that your data connection doesn't store a Username/Password, this is why integrated security is so good).
  9. Finish the wizard and View the result.
  10. You can customise the results by creating charts, trends and event drill down reports.