The most well-known usage for data room technology is to digitally manage the due diligence process which is a component of a merger and acquisition deal. We are also seeing C-suite teams and business owners choosing to use a data room on a regular basis for more than just storage – for collaboration and communication. It also gives the confidence that all conversations and documents are protected by sophisticated encryption and other security measures.
Data rooms are a great alternative for teams that have to collaborate but are located in different time zones or in different locations. For these teams, the virtual data room gives a secure, centralized repository for all of their documents that can easily be used and maintained with the added bonus of more powerful search capabilities than email systems.
There are many ways to organize the files in a VDR. The most commonly used is to take the top-down approach and organize data according to the level of confidentiality, project stage or department. This lets users quickly and efficiently access the documents they require while ensuring that confidential information isn’t lost or misplaced. For more advanced users, some VDR providers provide the option to create subfolders within a main folder structure to aid in breaking down and organize files to facilitate navigation. This allows users to locate specific files with a single click and to quickly find the data they are searching for.