As the world moves from physical meetings and phone calls to digital collaboration tools, a lot of companies are seeking ways to make the most of the potential of these new tools. The data room is one such tool, offering an auditable, secure digital space for sharing documents and reviewing them. But does data room software offer the right collaboration capabilities for the specific project you’re working on? In this article, we will examine the ins and outs of the virtual data room to assist you in determining whether this tool is the best choice for your needs.
What is a Data Room?
A data room (or VDR) is a digital repository that allows the exchange of documents as well as their review for projects that require time. Its applications include due diligence in M&A, sharing legal documents with attorneys, case preparation and collaboration between business stakeholders.
A virtual data room’s main purpose is to enable users to securely share documents with each other. It usually comes with advanced features like document tracking, access control, and the ability to version. This is especially useful because it allows users to avoid the type of document chaos that can be a knockout post found in email threads, where multiple versions of a contract are sent back and forth and are difficult to keep on top of.
Whatever the goal of your data room, it’s vital to set up permissions in a timely manner and regularly update your files to remain relevant to the project in the process. This will not just accelerate the process, but can reduce the chance of a security breach by preventing sensitive data from falling into the improper hands.