Digital data room as a deal management software is one of the best investments a business owner can make to increase sales and customer loyalty. This article will analyze the best use cases of the software.
Data room as a part of digital transformation
Digital transformation is introducing and using digital technologies to create new or change existing company business processes, culture, and the customer experience following business and market requirements. It is not limited to one business unit and allows the company’s management to examine the correctness of actions and decisions. Digital transformation changes how a business is run, sometimes creating an entirely new business. A virtual data room is one of the tools for such transformation. It is a digital platform that securely opens new possibilities for doing business and running deals. The software allows you to record customer interactions, conduct transactions, and set employee tasks. It also provides the ability to assign tasks when certain events occur automatically.
Usually, data rooms allow you to prepare documents (contracts, invoices, etc.) according to a template and send them directly from the system. It simplifies the manager’s work, reducing the number of necessary operations. In addition, it allows you to view at any time which documents were sent to which client. The manager’s work’s ultimate goal and the desired result is a deal. The manager should be able to mark in the data room at what stage the transaction is now: in processing, pending additional information, at the stage of negotiations, a commercial offer, or has already been concluded. All transaction statuses should be marked as simply and visually as possible. In the transaction, you must specify the person responsible, terms, amount, company, or contact, add a product from the catalog, and restrict access to viewing the transaction.
5 Common use cases of the data room software
Cloud-based data room is a universal tool for most business sectors.
- M&A transactions
The digital data room is beneficial in the context of M&A business transactions. The software brings documents together in a secure warehouse by storing business-critical data. It ensures the necessary security to enable you to operate the business without fear of security breaches or even identity theft.
- Intellectual Property
Industries such as biotechnology, pharmaceuticals, mining, and energy (to name a few) use virtual data rooms to unify and secure the exchange of business-critical data such as intellectual property, clinical trial data, environmental audits, and project bids.
- Real estate transactions
A centralized repository of customer information simplifies access to individual files. As a result, your teammates don’t have to rely on multiple meetings to understand customer requirements better. All this helps reduce maintenance costs and increase team productivity during real estate transactions.
- Fundraising
A digital data room is a secure online area company use to store their documents. For example, an infographic can provide an accurate and compelling picture of your business and help investors better understand your operations. Businesses often use data rooms to provide financial statements, management presentations, and other documents to potential investors.
- Healthcare
Healthcare data is becoming increasingly digitized and moving further and further into the cloud. Healthcare data management is about using and managing data in a meaningful way – for the benefit of healthcare organizations and physicians and ultimately for the well-being and health of patients. Modern data room services are increasingly shifting the IT infrastructure to the private cloud.