A virtual data room is a solution for secure data exchange across company boundaries. But when deciding on a software provider, it is worth considering a few important criteria. Here is more about it.

Virtual data room for secure business management

When it comes to hundreds of transactions per day, the procedures for internal approval of contracts and commercial offers become key in any company. Thus, modern companies use new digital solutions for optimizing business operations.

A virtual data room is an electronic document management system, implying an external exchange of documents – between the organization and its counterparties. It is a simple and convenient tool for organizing the workflow process, which greatly simplifies the process of processing large document flows.

Development and implementation of electronic document management systems at the enterprise allow:

  • reduce the time for approval of internal documentation;
  • ensure order and clear routes for the approval of papers;
  • increase the controllability of processes, compliance with time regulations;
  • ensure the safety of documents in the archive;
  • reduce the routine burden on managers;
  • increase employee loyalty.

With the help of the data room companies can automate not only the workflow with counterparties. For large organizations with a large number of employees and a complex hierarchy, an internal document management system can be a real salvation.

What functionality to look for in a virtual data room?

There are many data room providers in the IT market. However, there are a few things to consider when making your selection. So, there are the following important criterion:

  • Security. The data room enhances data security. The system administrator assigns each user access to documents on an individual basis in accordance with his authority. Accordingly, he will only be able to read, edit documents, or will have unlimited rights to create, modify and delete documents. The system keeps records of all actions of each user, which allows you to track the history and authors of all changes.
  • Increasing transparency and manageability of the business by improving access to information and clearer control over processes. In order to increase the transparency of business processes for management and reduce the likelihood of fraud, any electronic document management system has a module that clearly shows the processes of agreeing and changing all documents in the system.
  • Reliable storage and prevention of loss of documents, including as a result of force majeure, which means reducing legal and economic risks.
  • Cost reduction. The introduction of electronic document management allows reducing the cost of storing documentation, as well as consumables that are used in paper document management.
  • Monitoring the execution of instructions through flexible reporting, allows management to analyze the number of processed, agreed, and overdue documents, and take measures to correct the situation.
  • Increasing employee productivity. By reducing the number of routine operations, saving time, and improving the convenience of work, the productivity of employees also increases. In addition, the correct organization of electronic document management makes it possible to eliminate errors associated with the so-called human factor.
  • Collective work with documents. Workflow automation allows several users to work with the same file at the same time, as well as search through a single document database.
  • Mobility. Data room systems, for the most part, are web-based solutions that allow you to sign documents anywhere, anytime, and on any device. For obvious reasons, this is especially important now. No more sifting through stacks of paper looking for the right document just open it with the touch of a button. In just a few seconds, you can edit it or send it to the right employee or counterparty.