The significance of digital helpers in business can hardly be overvalued. Several researches confirm that using IT solutions does not only increase the speed and efficiency of most business procedures, but is an important condition of staying competitive in the market. One of the most advantageous technologies for business sector is the online data room. Check which way it can benefit your business.
Virtual data room is the novelty which has earned the huge demand lately. Being first created for processing deals, the technology quickly got actively applied in the other industries with the unchanged success: clinical trials, fundraising, legal affairs, real estate, biotech studies, etc. The key advantages of the solution are its convenient operation and confidentiality: parties have an opportunity to work with repository at any time any moment, from anywhere, and without concerns about their data security.
When it is time to choose the virtual solution for supporting business transactions, it is highly important to learn more about the main characteristics and options it possesses to make sure the chosen VDR can certainly be useful for your users – more about the data room. The most popular features to require from a trusted platform are the following:
Various virtual services providers use different safety-related tools for ensuring the files protection, but data encryption is among the most common ones. This measure involves encoding the information kept in the data room to make the text unreadable for those users who are not authorized in the VDR. It is the main anti-hacking step that is a necessary element for all the VDRs. The variation might only be in the encryption standard used: the latest approved standard is 256-bit, but 128-bit is considered also very secure.
If data encryption is a protection from unauthorized data accessing, digital watermarks is a protection from improper distribution. Special bits attached to the documents keep the details regarding the document`s ownership thus the copyright is easily protected. The digital watermarks might be dynamic which means that they can keep the information about the previous accesses.
The best way to secure the virtual data room from hackers is to give them no possibility of even viewing the documents. To achieve this, most reliable providers apply two-way authentication , which has two stages: entering a user`s password in a combination with entering the generated code that was sent right to his smartphone.
Activity tracking and reporting tools
This feature does not only help to see what actually happens in the data room, but gives a feedback about the partners` level of interest in the transaction. Monitoring instruments which are used in a chosen VDR usually let VDR owners to monitor the activities within the online repository and make conclusions about the most interested deal members. The gathered data is highly in-demand in M&A transactions when the success of the whole deal may be influenced by the well led negotiations.
Permissions and restrictions
When there is a virtual repository, there is no chance for transaction members to view the improper documents. The VDR itself controls the operations and can make certain files impossible to view for the chosen system users. The only thing that should be done beforehand is identifying the permissions and restrictions for all the system users, and the instructions will certainly be carefully followed.
The mentioned section has been purposely designed for arranging online communication between the participants. The chosen way of interaction does not only help to save time, but also improves the safety of the discussed matters. To increase users` comfort, Q&A space may be combined with the e-mail notification system and in-document linking that gives an opportunity to drag the files into the Q&A space.
Some virtual data rooms have standard interface that cannot be corrected, the other give some chance of customization. Together with settings variations made by the definite users, the company which owns a virtual data room may select its desirable interface. In order to make the VDR more recognizable for existing and future partners, large organizations introduce their logotypes and main company colors.
The indicated characteristics are much valuable for document security and efficient working. While the first three are used to ensure the documents security, four other ones concern the means of using the information to make the working process better controlled and beneficial.
Virtual repository is a technology that can introduce a revolutional change in the way of storing data, managind transactions, and communicating with business partners. If there is a need for improving the speed and efficiency of business processes, start choosing a good virtual data room right now and get the profit tomorrow.