Business leaders and deal execution teams prefer virtual data room because it gives them the modern collaboration tools to easily set up deal spaces and manage internal and external access – with the peace of mind that their most sensitive projects are secure. Here are the best software features.
Virtual data room: collaborate with confidence
The COVID-19 pandemic has significantly changed almost every area of human life. Lockdown safeguards have also affected the private sector, including businesses. Many companies had to switch to temporary or permanent remote work in a short time. In such conditions, virtual data rooms have become the tools that allow you to do business in one system and employees to work from anywhere in the world, not to be tied to the office. Virtual data room (VDR) offers the most advanced SaaS and data management platform to streamline SaaS operations and secure digital collaboration. Today, most business cloud users rely on a comprehensive portfolio of solutions to work together more productively and securely and meet compliance requirements. As practice has shown, the deal management’s efficiency has decreased and, on the contrary – increased by an average of 20%. In addition, this format of work allows business owners to save money.
The best data room features
Modern data rooms allow you to estimate sales, monitor the transaction’s status, and analyze customers’ actions and needs. Offering managers the tools of forecasting and analysis and automating the interaction of company employees and customers, the system helps to optimize sales channels and ultimately increase the company’s profits. So, the best data room features are:
- Security. The data room is designed to intentionally restrict access by IT administrators and allow only business executives to work with sensitive data. This structure differs from the design of other types of private channels (where permissions are more complex and challenging to manage), as well as Slack and Google Workspace.
- Transparency and trust-building. Building strong relationships with stakeholders is essential to a successful business relationship, and at the core of this is transparency which helps build trust. In situations where transparency of highly sensitive information is critical, VDRs provide a way to share information without the risk of data leakage.
- Cost efficiency. Using VDR significantly reduces the need for physical documents, reducing the cost of printing, archiving, and storing documents. A high price that is reduced or often eliminated with VDRs is travel for the sole purpose of reviewing corporate documents. VDRs also have fees, but these can be predictable and, therefore, manageable. This reduction in paper files and travel also reduces the company’s carbon footprint, another added benefit of VDR.
- Increased productivity. VDRs allow you to streamline workflows. For time-sensitive transactions such as the M&A process, they can help significantly reduce the time spent on communication and administrative tasks. In addition, the VDR file organization feature makes finding and linking documents efficient.
- Reports. A VDR helps you to compile all the documents and reports required for the audit or compliance check to keep all communication in one secure place. In addition, the built-in metrics help you monitor progress toward meeting specific deadlines or deliverables.
- Efficient deal management. With data room, project or transaction team leaders have access to dashboards that display high-level information and insights, e.g., newly added files, recently accessed documents, file screening status, project participation, file usage, and more. Users can use these real-time insights to optimize project flows and make strategic decisions by applying (and controlling) granular, project-specific permissions throughout the project lifecycle.