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How to create an effective workflow in data room software is the second most important thing after choosing the best-fitting solution of many virtual data room providers.
Virtual data rooms are designed to streamline different administrative processes, and it is only possible if you set up your VDR in an optimal way. By considering the following elements, you can set up your data room more efficiently.
Below are some steps to properly set up your electronic data room and achieve maximum automation.
1. Create folders and subfolders
How to categorize your corporate information in your virtual data room is your decision to make. However, it is a general rule to categorize documents in different folders according to their nature. For instance, you can make a different folder for annual income statements and keep balance sheets separate.
Categorization saves time for your employees, investors, stakeholders, and anyone who needs to access the data regularly. When your online data room software creates your room, it is better to make one main folder and then create subfolders and so on. One mega folder makes it easier to quickly transfer all the data from one place to another. Also, you can quickly delete data from the VDR once the job is completed.
- Pro tip. Choose a data room that has features like bulk upload and drag-n-drop. They will make the uploading process much faster.
Should you need more information on virtual data room's advanced ease of use and other features, explore them at: https://www.idealsvdr.com/virtual-data-room-features/.
2. Standardize the file naming process
Following consistent rules when naming the files and folders in your VDR is crucial. Your data room will be used by your partners, directors, employees, managers, investors, and external parties. A standard naming pattern will help users locate files with ease.
For example, you can name multiple audit log files as "audit-log-12032021" and "audit-log-13032021". As you can see, audit log files are named as per their date, month, and year in the same pattern. But if you name other files, let's say, as "audit-log-March-12-2021", it will complicate things for users. Standard, consistent, and logical naming will allow users to see what's inside a file without even opening it.
3. Create multiple workspaces in your virtual data room
If you have switched from your trial or free version to paid data room version, you can create multiple rooms (depending on your package). Using one data room for your corporate data management is something you should reconsider. A single data room is good if you are managing a transaction (such as an M&A) with an external party.
However, if you are using your VDR as a workspace, then it is better to create different workspaces for your teams or departments. For instance, you can make separate workspaces for finance, marketing, board of directors, research, or human resource departments. You can add relevant files and personnel in those data rooms.
4. Create NDAs and get them signed
Whether you are inviting your workforce or third-party individuals into your VDR, always prepare NDAs and ask the users to sign them. Non-disclosure agreements are legal documents that you can enforce in a court of law.
These documents make sure that users in your VDR do not misuse or leak information or don't perform unauthorized actions. Many data room providers have built-in, customizable NDA templates, which you can change as per your needs.
5. Set permissions and add users
As virtual data room software is a secure platform, it gives you the option to control your data just like you want. It is obvious that you don’t want everyone in your data room to have access to everything. Even if you create different data rooms, you still want to set different permission settings for the users. For instance, you can define who can:
- Only view the documents
- View and share the documents
- View, edit, and share the documents
- View, edit, share or delete the documents
If there are highly sensitive files in the VDR, you can limit everyone from performing any function on them. Therefore, you should set access permissions and recheck them at least once.
Once you are confident about these settings, you can invite users to your VDR. You can invite them one-by-one or send group invites if your VDR allows it. After completion of the onboarding process, educate the users via available resources like tutorials, chat support, live training sessions, etc.
Data room services: Choose the trusted ones
It is strongly advised to choose a trusted, certified virtual data room vendor for a safer and better experience. Some of the best virtual data room providers include:
- iDeals
- FirmRoom
- DealRoom
- Firmex
- Merrill Datasite
- ShareVault
- SecureDocs
- Caplinked
- Intralinks