The business process automation with the help of data room software allows companies to scale operations, improve customer experience and improve cost control. This article will analyze how digital data room can improve due diligence workflow.
Digital data room to manage due diligence documentation
Due diligence is a procedure for forming an objective idea of an investment object, including the study of investment risks, an independent assessment of the investment object, a comprehensive study of the company’s activities, and a comprehensive check of its financial condition and market position. Such a procedure is usually carried out before purchasing a business, implementing a merger, signing a contract or cooperation with the company, etc.
Large arrays of business data and confidential documents are processed during due diligence. Therefore, it is a complex and time-consuming procedure. So, how to evaluate the certain object securely and productively?
Today, there are many ready-made solutions and software platforms on the market, the manufacturers of which claim the functionality needed to archive electronic documents. Still, most of the products are focused on digital content management and offer either insufficient or incompletely developed tools on automation of activity of the archival divisions. For this purpose, virtual data room due diligence was designed. It is the one-premise solution for storing business-critical data and organizing collaborative workflow on documents.
With virtual data rooms, so-called workspaces, project administrators can create specially marked directories for a new project, which a team or external business partners can access at any time and from anywhere. Each project member thus always has the most up-to-date data available.
The online data room gives the following possibilities while working on due diligence documentation:
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open, edit and save documents online directly in the data rooms;
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assign shares with upload and download rights;
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send multiple files or entire folder structures;
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keep everything under control with policies for data rooms;
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easily invite other users to collaborate effectively;
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set reminders on dates and never miss deadlines again.
Data room encryption for secure data workflow
It also should be mentioned that the data room technology allows you to safely place documents with any degree of confidentiality. Access parameters are configured depending on the specific needs of the customer.
Encryption technology is primarily associated with secure data rooms. This allows physical access to signals and data to be tolerated without fear of unauthorized reading of the content. Data can be securely transmitted from a sender to a central processing location, where it may be securely stored and securely forwarded to a recipient.
The basic security concept is supplemented with the canonical set of technical measures on which the sealing is based:
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With the technical seal, the user data can be protected against attacks from outside and inside.
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This seal protects both content and metadata from any unauthorized access.
Information encoding plays a key role in cloud solutions. Encrypting a virtual machine allows you to secure data located on a virtual hard disk. With it, you can store files (configuration and contents of virtual disks, snapshots) of a virtual machine in encrypted form. Data transmission and storage are secured in digital data rooms using 256-bit SSL encryption. It is considered the golden standard. The encryption is carried out on the end devices, and the data is encrypted end-to-end.