The role of digital helpers in business cannot be overvalued. The numerous research works state that using IT solutions does not only increase the quickness and efficiency of major business processes, but is an important condition of keeping a leading position among competitors. Among the most in-demand technologies for organizational activity is the online data room. Let`s check which way it can help your business.
Virtual data room is the recent development which has gained the incredible demand during the last decade. Though initially created for dealmaking, it soon got frequently used in plenty of other areas with the same success: clinical studies, fundraising, legal affairs, real estate, biotech licensing, etc. The main benefits of the software are its convenient operation and confidentiality: users have a chance to work with the data room anytime, from any location, and without worrying having no worries about a sensitive data being safe.
When it comes to choosing the virtual platform for supporting business transactions, it is most important to get well acquainted with all the characteristics and functions it has in order to make sure it can truly be useful for the certain users – more about due diligence data room checklist. The key functions to require from a good service are the following:
Various virtual services providers apply various safety-related technologies for ensuring the data safety, but information encryption is always among the most common ones. This measure supposes encoding the information stored in the VDR in order to make the symbols unrecognizable for unauthorized users in the repository. This is the main anti-hacking measure which is a necessary element for all the VDRs. The variation can only be in the standard of encryption used: the most recent is 256-bit, but 128-bit is considered also very safe.
While data encryption is a protection from improper viewing, using watermarks is a protection from illegal data distribution. Digital watermarks enclosed to the files contain the information about the document`s ownership so the rights can be easily protected. The watermarks might be dynamic which means that they can store the data about the previous accesses to the document.
The greatest way to fully protect the virtual data room from hackers` attacks is not to give them any chances of even viewing the documents. To achieve this, many reliable VDRs use two-way logging-in process that happens in 2 parts: using a user`s password in a combination with using the code which was sent right to the user`s mobile.
Performance monitoring and audit log
Activity tracking and audit log feature does not only allow to see what exactly proceeds in the data room, but provides the information about the partners` interest in the transaction. Tracking instruments that are used in a chosen data room mostly allow the target company monitor what happens in the virtual space and make conclusions about the most active parties. The gathered data is specifically useful in M&A transactions when the success of the whole transaction may be influenced by the well prepared negotiations.
With a virtual data room, there is no chance for process participants to view the wrong files. The system itself checks the operations and makes certain documents impossible to view for definite system users. The necessary thing that has to be done in advance is defining the permissions for individual users or groups, and they will certainly be exactly followed.
Questions and Answers section
The indicated module has been intentionally designed to ensure online-based interaction between the participants. The chosen way of interaction does not only help to minimize time losses, but also adds to the security of the discussed matters. To benefit users even more, Q&A module may be equipped with the users` notification system and in-document linking which gives an opportunity to take the files stored in the VDR into the Q&A space.
Definite virtual data rooms offer basic interface that cannot be corrected, the other products allow slight or great possibility of customization. As well as setting changes set by the definite users, the company that owns a VDR can select its desirable interface. To make the virtual repository more recognizable for existing and potential partners, well-known organizations apply their logotypes and main company colors.
The indicated functions are truly significant for document safety and efficient working. While the first three are used to arrange the files protection, four other ones concern the way of using the information to make the transaction better controlled and beneficial.
Virtual repository is a solution that has a potential to introduce a revolutional change in information storing and distribution, managind transactions, and building business relationships. If you have decided on improving the speed and effectiveness of your business procedures, begin looking for a good online solution today and be sure to get the benefits tomorrow.