The significance of digital tools in dealmaking can hardly be overvalued. Various researches confirm that using digital technologies does not only improve the quickness and strength of most business procedures, but is a vital condition of keeping a competitive position in the market. Among the most advantageous virtual tools for organizational activity is a VDR. See which way it can help your business.
Virtual data room is the innovation which has gained the huge demand within the last ten years. Being initially designed for processing mergers and acquisitions, the VDR quickly got actively applied in plenty of other areas with the same success: clinical studies, investments, legal practice, real estate, biotech studies, etc. The key benefits of the solution are its convenience and confidentiality: parties have a chance to work with the virtual data room at any time any moment, from any location, and without worrying having no worries about their data security.
When it is time to choose the platform for performing deals online, it is much important to check on the main characteristics and options it has to be sure this VDR can surely benefit the certain client – more about data room for due diligence. The most popular functions to look for in a sophisticated VDR are the following ones:
Encrypting the data
Various virtual services providers offer various security-related instruments for best files protection, but data encryption is always among the standard ones. This measure supposes encoding the information kept in the VDR in order to make it unreadable for unauthorized users in the VDR. This is the most important anti-hacking measure which is a required element for any data room. The variation can only be in the encryption standard which was used: the latest is 256-bit SSL, but 128-bit is considered also very safe.
While encryption is viewed as a protection from illegal data accessing, watermarking is a protection from improper data distribution. Digital bits attached to the documents have the details about their owning organization thus the copyright is absolutely protected. The watermarks can be dynamic which means that they can store the information about the accesses to the documents that took place.
Two-step authorization process
The greatest way to fully protect the VDR from hackers is to limit their possibility of ever viewing the files. For this purpose, most trustworthy VDRs use two-step logging-in process , which supposes two components: typing down a common password and typing down the code that was sent right to the user`s mobile device.
Activity tracking and audit report
This function does not only give a chance to see what actually happens in the data room, but also gives the information regarding the partners` engagement in the deal. Tracking instruments used in a good virtual data room mostly let VDR owners to monitor the activities within the online repository and make conclusions regarding the most active parties. The received data is specifically in-demand in dealmaking when the outcomes of the whole transaction depends on the properly considered negotiations.
When there is a virtual repository, there can be no chance for participants to gain access the inappropriate files. The data room itself controls the operations and makes definite files inaccessible for definite users. The important step that should be done in advance is identifying the permissions for data room individual users or groups, and the instructions will be rigorously followed.
Questions & Answers module
This section has been especially included to ensure online-based interaction between partners. The offered means of interaction does not only allow to quicken the process, but also improves the safety of the discussed matters. For users` convenience, Q&A module might be combined with the users` notifying system and document linking feature which gives a possibility to link the certain files to the Q&A space.
Some virtual data rooms offer basic interface which can`t be customized, the other allow some or other possibility of customization. As well as settings variations set by the users, the company which owns a VDR can select its desirable interface. To make the data room recognizable for current and future partners, well-known companies apply their logotypes and company colors.
The listed functions are truly valuable for document safety and successful management. While the first three are specifically intended to arrange data safety, four other ones relate to the means of using the information to make the deal better controlled and beneficial.
Virtual data room is a solution which has a potential to introduce a revolutional change in information storing and distribution, managind transactions, and building business relationships. If you feel the need for improving the quickness and effectiveness of your business procedures, start looking for the appropriate virtual solution today and be sure to get the profit tomorrow.