The importance of digital helpers in dealmaking must not be undervalued. Various researches prove that using digital technologies does not only increase the speed and efficiency of most business processes, but is a necessary condition of staying competitive in the market. One of the most perspective online tools for organizational activity is a virtual data room. Learn which way it can help your business.
Virtual data room is the novelty that has got the great regard within the last ten years. Being primarily designed for processing mergers and acquisitions, the technology soon got frequently used in the other industries with the unchanged success: clinical studies, fundraising, legal practice, real estate, biotech licensing, etc. The major advantages of the technology are its convenient operation and security: parties can work with the data room at any time any moment, from anywhere, and without worrying having no worries about a sensitive data safety.
When it is time to choose the platform for performing deals online, it is much important to get well acquainted with all the characteristics and features it has to be sure the chosen VDR can truly be useful for the organization – more about data rooms review. The most in-demand features to expect from a trusted VDR are the following ones:
Encrypting the data
Various virtual services providers offer different safety-related measures for ensuring the data protection, but data encryption is among the most traditional ones. It involves encoding the information kept in the repository in order to make the symbols unreadable for those users who are not authorized in the repository. It is the main anti-hack measure that is a necessary condition for all the virtual data rooms. The difference can only be in the encryption protocol that was used: the latest approved standard is 256-bit, but 128-bit is considered also very secure.
If encryption is a protection from illegal viewing, watermarking is a protection from unauthorized data distribution. Electronic bits enclosed to the documents store the data about their owning organization so the copyright can be easily protected. The watermarks can be dynamic and, in this case, they can collect the information about the accesses to the documents that took place.
2-step verification process
The best way to protect the virtual data room from hackers is to restrict their chances of ever gaining access to the data. For this purpose, most trustworthy vendors use two-way verification , which happens in 2 stages: entering a common password and using the generated code which was sent right to his smartphone.
Performance monitoring and audit report
This option does not only give a possibility to control what happens in the repository, but also gives a feedback about the parties` level of interest in the deal. Monitoring instruments which are used in a certain virtual data room usually allow data room owners monitor what happens in the virtual repository and build conclusions regarding the most active deal members. The gathered information is especially valuable in M&A transactions when the success of the whole deal may depend on the well considered final negotiation.
Digital rights management
With a virtual data room, there is no possibility for users to gain access the wrong files. The data room itself takes control of the work and can make definite files impossible to view for certain system users. The necessary thing that has to be made in advance is defining the permissions and restrictions for individual users or groups, and to be sure they will certainly be rigorously followed.
This module has been especially designed for the purpose of ensuring online-based communication between partners. This way of interaction does not only let to minimize time losses, but also improves the safety of the discussed matters. To give users the extra benefit, Q&A module can be combined with the e-mail notifying system and in-document linking that gives an opportunity to take the files stored in the VDR into the Q&A space.
Some virtual data rooms offer basic interface which cannot be corrected, some other allow definite chance of customization. As well as changes in settings set by the definite users, the organization which possesses a virtual data room has a chance to introduce its own interface. To make the virtual repository more recognizable for existing and future clients, large organizations use their logotypes and main company colors.
The indicated features are definitely significant for files security and data management. While the first three are necessary for arranging the documents protection, four other ones relate to the way of using the data to make the working process fully controlled and beneficial.
Virtual repository is a tool that can perform a significant change in data storing, processing transactions, and interacting with business partners. If you have set your sights on improving the quickness and effectiveness of your business processes, start selecting a good online solution today and be sure to get the advantage tomorrow.