The main purpose of using a Virtual data room is to facilitate the orientation in the data space and to help highlight the details that are important for business development.
What place has a Data Room in deal management?
The development of information technology creates a significant impact on all areas of human activity: on technical and technological processes, production, communication, enterprise development, and more. Business is also significantly affected by the development of technology – almost every industry uses technical advances and the latest technological developments to automate trade, financial, economic, or production activities. Practice shows that today small private business comes to the fore. This, in turn, requires the successful application of management in all areas of a particular enterprise.
In today’s environment for a successful business, it is necessary to have a clear understanding of the relationships between the various components and a good idea of the overall picture of the organization. Identification of all details and connections using information technologies allows using time and tools of the organization of work of the company most effectively. One of such useful information systems is an Electronic Data Room.
How does it work?
Virtual Data Room is an aggregated information resource that contains consolidated information from the entire problem area and is used to support decision-making. Consolidated information is obtained from several sources and systematically integrated various types of information resources, which together are endowed with signs of completeness, integrity, consistency and constitute an adequate information model of the problem area to analyze its processing and effective use in decision support.
Given the specifics, the Data Room has the following features:
• obtaining information from various data sources (including relational databases) in a detailed and aggregated form (the results of the application of aggregation functions – amount, average, maximum, minimum, etc.);
• multidimensional presentation of information – some requirements of normalization are ignored, which significantly increases the speed of information processing, as it reduces the number of connection operations;
• availability of metadata to describe metadata sources and the structure of the data warehouse availability of batch data download to the data warehouse and data upload;
• availability of procedures for data analysis and obtaining new data;
• the focus of data on analytical rather than static processing.
Data Room and Database: what is the difference?
The Virtual Data Rooms are usually different from traditional relational databases. It can be can be argued by the following statements:
• First, traditional databases are designed to help users do their day-to-day work, while Data Rooms are designed to make decisions. For example, the sale of goods and invoicing is carried out using a database designed to process transactions, and the analysis of sales dynamics over several years, which allows you to plan work with suppliers – using a Data Room.
• Second, traditional databases are characterized by constant changes in the process of user work, and the Data Room is relatively stable: the data in it are usually updated on a schedule (for example, weekly, daily – depending on needs). Ideally, the replenishment process is simply adding new data over a while without changing the previous information already in the repository.
• Thirdly, traditional databases are often the source of data that enters the repository. In addition, the repository can be replenished by external sources, such as statistical reports. In contrast, Data Room receives significantly larger amounts of data on time, which may differ from the receiver format, and sometimes type, which requires the use of additional procedures for transforming and loading data.