The bottom line is that VDRs are a boon to business. VDR allows for any number of parties -whether executives at the top of the chain working on M&A deals, HR departments responsible for maintaining employee records, or project managers responsible for different aspects of business operations or even internal employees that need to share files and data with contractors outside the company — to do their work securely and effectively. This is particularly true for companies that depend on the security of sensitive information and valuable intellectual property to ensure their success.
The best VDR and document management system provides a powerful combination of features that will make the due diligence process and dealmaking process smooth and efficient. These include document indexing, search capabilities based on text and metadata, and intuitive tools for creating and managing documents and folders, including automatic renumbering, endless scrolling and favorites. Software features to consider include an activity tracker that includes an automatic versioning system, as well as a robust document tracker.
A well-thought-out and organized folder structure, consistent naming conventions and access rights all play crucial parts in ensuring a smooth flow of a project or business deal. A reliable VDR allows you to define granular permissions that are based on the roles and responsibilities assigned to folders and files. The VDR will also provide statistics on who viewed and printed each document.
The most effective VDRs ensure that all sensitive information is encrypted both in storage as well as during transport. This is essential to ensure compliance with privacy laws and preventing Private Data Room vs Managed Data Service the possibility of unauthorized access.