A data room is an online repository which is a secure storage place for documents and other information for businesses. They can be used to conduct due-diligence during the sale process however, they can also be used to serve other reasons, such as sharing information with partners, customers or investors.
The capabilities of a Data room vary by solution but a few fundamental functions are essential for any business using one, like the capability to share and store large files with many parties. A search function that is flexible makes it easy to find the relevant documents even when they are hidden in data. Secure data encryption is a crucial feature to have electronic data room as it protects the data against accidental disclosure. To ensure that work is completed in a timely manner it is also useful to be able handle tasks. With the increasing use of remote working and hybrid teams and remote teams, the ability to access documentation from any place with an internet connection is crucial.
It is also essential to have the ability to erase information if the document has been shared with the third-party. A good data space should provide a simple redaction tool. This will allow you to remove several instances or single instances with a single click of a mouse, rather than having to pick and then remove them manually. Finally, it is also important monitor the activity in the data room so that you know who is watching what and when.