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In Design will let you integrate content from Word or RTF.
As with text, these can be imported, or they can be linked.
While the out-of-the-box functionality to translate Word to In Design is less than perfect, many organizations use this workflow because Word is fairly ubiquitous as a word processor among non-designers, while In Design is far superior at precise layout.
In Design includes functionality allowing you to map styles from Word to styles in In Design.
If you are really serious about working with Word and In Design together, we've found Em Software's Words Flow product to be quite powerful.
Excel is another file format supported by In Design, and like Word the import is not flawless (again, Words Flow can help), yet there are many successful workflows around the world where Excel is the content source feeding In Design.
Referencing text is complex because text itself is complex; it doesn't often fit into a neat rectangle, but instead forces authors/designers to consider fonts, semantics, inline formatting, copy-fitting, and more.