The chances of you haven’t heard about virtual data rooms are very bleak. That's because virtual data rooms have become a global entity in the last few years. Businesses and professionals from different sectors have been using data room software as a multi-purpose business solution.
If you have not heard about this highly efficient piece of tech, and are interested to know about it, then this guide can help you with all the queries in your mind.
What is a virtual data room?
To define an electronic data room properly, we have divided the introduction into three sections. Virtual data rooms are:
- Secure, cloud-based data storage places where professionals or businesses can store and manage their business data.
- A virtual deal room that allows businesses and professionals to execute their regular or major business transactions, such as fundraising, real estate asset acquisitions/selling, initial public offerings, auditing, mergers, acquisitions, etc.
- A virtual workspace that ensures uninterrupted communication and seamless collaboration. Virtual data rooms make data sharing easier than any other alternative. Most importantly, you don't have to integrate external apps for video conferencing, document viewing, etc.
How to grow your business with online data room software?
Data room software basically streamlines different workflows in your business and improves efficiency. Here are some top benefits of virtual data rooms.
1. Document management
Do you know that the paper documentation system can directly reduce your employees' efficiency by 20%? Employees often forget where they put the files they were working on and then waste time finding them; this happens when you maintain a paper database.
VDR software is a centralized cloud-based platform where you can easily store and manage your business documents. Here is how:
- Electronic data rooms mostly support numerous file formats. That means you can upload your files in the document, image, video, or audio form. The data room will convert documents into PDF format to make them easily viewable.
- You can name a file or add a search tag; this will allow you to retrieve a file quickly. Moreover, any data room user can search a file via keywords, file name, phrases, and file type & size. You can also create folders or subfolders and arrange them in your desired manner.
- Any authorized user can access, edit, alter, download, or print documents; they can add notes or annotations as well.
- A user can share a document with one or more users at a time. In fact, document sharing can be scheduled to a certain date and time period.
- The drag-n-drop feature allows you to select multiple files and drag them to upload in the VDR.
- Virtual data rooms have built-in templates for different types of documents commonly used in organizations, which is a great time-saving feature.
2. Data security
Data protection, without a doubt, is among the top priorities of any business, and it is also a legal obligation for corporations and enterprises. Of course, a client's personal data leaked due to any reason can put an organization in trouble. Besides, a company's own highly sensitive documents are always vulnerable to external and internal threats.
However, an electronic data room simply changes the scenario because when it comes to data security, not many business solutions can compete with virtual data rooms. Data room services have bank-grade data security protocols. Common security features include:
- End-to-end encryption; a file, message, or a document sent after encryption can only be decoded by the intended recipient.
- Multi-step authorization: only the authorized users can log in after completing at least two steps.
- Digital watermarking: file originator can add audio, image, or any other watermark in the file to claim the copyrights.
- Access permission settings: users and data room administration can grant document access to users as per their will.
- "Fence view" mode; protects files or VDR screen from screenshots or photography.
- Audit logs: these are detailed reports on all the activities in the data room; audit logs ensure 100% transparency in the VDR.
3. Fewer administrative expenses
Using a virtual data room for your business means you don’t have to spend money on costly papers, file covers, folders, file clippers, printers, cartridges, and courier expenses. This may blow your mind, but organizations usually spend 2-3% percent of their revenue on the above-mentioned expenses. You can avoid all that by using VDR. Besides, virtual data rooms can help you avoid expenses incurred in business meetings, accommodation, and travel.
Top 5 virtual data room providers
Here are some of the best data rooms based on features, customer support, and clients’ reviews
- Merrill Datasite
- iDeals virtual data rooms
Virtual data rooms have solved one of the biggest problems of the business world — secure data management. An effective data management system streamlines workflows, saves time, and improves employees’ efficiency. Lastly, cost-effectiveness and budget-friendliness make data rooms a highly desirable business asset. To find out more about data rooms and their potential benefits for your business, visit website.