What are project data rooms? What is a Docutone DataRoom? In essence, a data room is an online space used for sharing highly sensitive data. In many instances, information shared is also time-sensitive.
Data rooms have built-in security features, analytic tools and Q&A coordination modules.It is these features that have proved to be critical in projects for specific domains such as conducting due diligence in the capital markets industry, sharing clinical trial data, and exchanging document in litigation matters.
The business benefits in using virtual data rooms are numerous. Here, we outline how data rooms are useful:
1. Improved Information Security
Our clients use project data rooms to securely share information with internal and external parties. The need for security is a top priority, especially in confidential transactions such a mergers & acquisitions, IPOs, biotech licensing and partnering, real estate purchase and sales, and more.
So how does a project data room fit in?
For starters, users who sign in have to accept a Non-Disclosure Agreement. Project managers can turn on this NDA feature each time a user logs in, or for only the initial login. Users also have limited access to documents. In the Docutone DataRoom, users assigned a ‘Read Only’ permission is only provided a view-only access, with no access to print or download.
Together with document watermark features, file encryption and two-factor login authentication, these tools help prevent confidentiality abuses & security violations, and meets strict legal compliance requirements.
2. Be In the Know of Users and Documents
Docutone DataRoom provides pre-built reports for a better understanding of how a project is progressing. Reports are based on two viewpoints: users and documents.
User Reports As a project manager, you will have access to reports to show the most active project users, coverage access and the number of times they have viewed a document. A detailed user audit trail is available which includes login times with corresponding IP addresses and actions performed.
Document Reports The most or least viewed document report delivers insight into information that is deemed critical by users. Also available is the document history report, which highlights all major actions related to a specific file.
3. Speed Up Your Transactions
With intensive activities carried out during these transactions, users experience time savings by having documents accessible easily, at all times.
Document Index Dynamic indexing allows for ‘late’ documents to be added to a data room and inserted in the appropriate folder with an auto updated index number. Your file structure remains well organized, at all times.
Q&A The Q&A module greatly enhances communication between parties. No longer do you need to manage queries manually via Excel. In M&A transactions, buyers can ask sellers questions related to the transaction and its contents securely & efficiently. Parties can keep track of the questions’ status, easily attach related files, assign only specific group members to pose questions, designate subject matter experts – all capabilities which significantly improves question management.
For managing time pressure, large transactions, auction-type processes with large number of buyers and complex cross-border due diligence, project data rooms remains a best practice tool in handling the sharing and control of critical information.