The significance of IT solutions in dealmaking must not be undervalued. Several research works state that using IT solutions does not only increase the speed and strength of most business transactions, but is the required condition of keeping a competitive position in the market. One of the most sophisticated online tools for organizational activity is a VDR. Let`s check how it can be useful.
Online data room is the recent development that has got the great popularity within the last decade. Though initially designed for processing mergers and acquisitions, the technology quickly got actively used in the other spheres with the unchanged success: clinical studies, fundraising, legal affairs, real estate, biotech studies, etc. The key benefits of the solution are its comfortable operation and confidentiality: parties have a chance to work with the data room at any time any moment, from any location, and having no concerns about a sensitive data safety.
When it is time to choose the platform for processing definite business transactions, it is much important to know all about the main characteristics and functions it has to be sure it can surely be useful for your organization – more about data room management. The most required functions to require from a sophisticated VDR are the following:
Various vendors use various security instruments for ensuring the data protection, but encryption is among the most common ones. Encryption involves encoding the data stored in the data room in order to make the symbols unrecognizable for unauthorized users in the data room. It is the most important anti-hack step that is a necessary condition for any data room. The difference might only be in the standard of encryption which was used: the most recent is 256-bit, but 128-bit is impossible to hack as well.
If data encryption is a protection from improper files accessing, digital watermarks is a protection from illegal data distribution. Special bits enclosed to the documents keep the details regarding the document`s owners thus the copyright can be easily protected. These watermarks can be dynamic and, in this case, they can keep the information about the previous accesses.
The most reliable way to fully protect the VDR from hackers` activity is to limit their possibility of ever accessing the files. For this reason, most trustworthy vendors apply 2-way verification process that happens in 2 stages: using a permanent password and using the generated code which was sent right to his smartphone.
Activity monitoring and making visual reports
This function does not only give a chance to control what exactly proceeds in the repository, but also gives the information regarding the partners` engagement in the transaction. Tracking tools that are used in a chosen VDR usually allow VDR owners to track what happens within the virtual storage and build conclusions about the most concerned parties. This information is specifically in-demand in M&A transactions when the outcomes of the transaction may depend on the properly led final negotiation.
When there is a VDR, there is not any chance for users to access the improper documents. The VDR itself checks the operations and can make definite files impossible to view for definite system users. The important step that must be made in the beginning is identifying the restrictions for all the participants, and they will be carefully followed.
The mentioned section has been purposely created for arranging web-based interaction between the participants. The offered means of interaction does not only allow to quicken the process, but also improves the safety of the discussed matters. To give users the extra benefit, Q&A module may be combined with the electronic notification system and document linking feature which offers an opportunity to take the files stored in the VDR into the Q&A space.
Definite data rooms have standard interface which can`t be customized, the other products suppose some or other chance of customization. Together with changes in settings set by the definite users, the company which has a virtual data room may define its own interface. In order to make the data room recognizable for current and potential clients, large organizations apply their logotypes and organizational colors.
The mentioned functions are absolutely valuable for document safety and efficient working. While the first three are necessary for ensuring data safety, the other ones relate to the way of using the data to make the transaction more controlled and advantageous.
A VDR is a software which can introduce a revolutional change in the way of storing data, processing deals, and communicating with business partners. If there is a need for improving the speed and efficiency of business processes, start selecting a good online data room right now and get the advantage tomorrow.