The importance of IT tools in dealmaking cannot be overvalued. The numerous researches prove that using online tools does not only improve the speed and efficiency of major business processes, but is an important condition of keeping a competitive position in the market. One of the most in-demand solutions for business sector is a VDR. Let`s check how it can be useful.
Virtual data room is the innovation which has got the great regard during the last decade. Having been primarily created for M&A transactions, it soon got actively used in the other spheres as well: clinical trials, investments, legal affairs, real estate, biotech licensing, etc. The key benefits of the software are its convenience and privacy: parties have a possibility to work with the data room anytime, from any location, and without concerns about a sensitive data security.
When it is time to choose the virtual solution for supporting business transactions, it is much advised to learn more about the main characteristics and options it has in order to be sure the chosen VDR can surely bring benefit to the certain client – more about secure vdr. The key features to look for in a good VDR are the following ones:
Various vendors offer various safety-related instruments for ensuring the files protection, but data encryption is among the most traditional ones. It supposes encoding the information stored in the data room in order to make the text unreadable for those users who are not authorized in the data room. This is the primary anti-hack action that is a necessary element for all the virtual data rooms. The distinction might only be in the standard of encryption used: the latest is 256-bit, but 128-bit is considered also very secure.
If data encryption is viewed as a protection from illegal accessing, using watermarks is a protection from unauthorized data distribution. Digital watermarks attached to the documents have the information regarding the document`s ownership thus the copyright is fully protected. These digital watermarks can be dynamic which means that they can collect the details about the accesses to the documents that took place.
The most reliable way to fully protect the data room from hackers` activity is to limit their chances of even gaining access to the data. To achieve this aim, most trustworthy vendors use complex logging-in process that proceeds in 2 stages: using a common password in a combination with entering the code which was sent straightly to the user`s mobile device.
Activity tracking and audit report
Activity tracking and audit log feature does not only give a chance to see what proceeds in the repository, but also provides the information regarding the partners` level of interest in the deal. Tracking instruments that are used in a good virtual data room usually let the target company to track the actions in the online space and draw conclusions about the most interested parties. This information is especially in-demand in M&A transactions when the outcomes of the whole deal depends on the properly prepared negotiations.
Permissions and restrictions
With an online repository, there can be no possibility for participants to access the wrong files. The system itself checks the work and can make definite files impossible to view for the chosen users. The necessary thing that should be done beforehand is defining the permissions for all the system users, and to be sure they will certainly be rigorously followed.
Questions & Answers module
The indicated section has been intentionally created for the purpose of ensuring web-based communication between partners. This way of interaction does not only allow to quicken the process, but also adds to the security of the discussed matters. To make the section truly convenient, Q&A space may be equipped with the e-mail notifying system and document linking feature that gives a chance to use the stored files in the Q&A space.
Certain VDRs have basic interface which cannot be corrected, the other suppose some or other chance of customization. Together with variations in settings made by certain users, the company that has a virtual data room can introduce its own interface. In order to make the VDR easily recognizable for existing and potential partners, well-known organizations use their logo and main company colors.
The indicated features are definitely significant for document safety and easy management. While the first three ones are specifically intended for arranging data safety, the other ones concern the means of using the data to make the working process fully controlled and beneficial.
Virtual data room is a software that has a potential to perform a significant change in information storing and distribution, managind transactions, and interacting with business partners. If there is a need for improving the speed and productivity of business processes, start looking for the appropriate online data room right now and be sure to get the profit tomorrow.