The importance of information technology helpers in dealmaking must not be undervalued. Several researches prove that using IT solutions does not only increase the quickness and efficiency of major business transactions, but is the required condition of staying competitive in the market. Among the most advantageous solutions for business is a VDR. Check how it can help your business.
Virtual data room is the novelty that has earned the great regard within the last ten years. Having been first introduced for dealmaking, it soon got actively applied in plenty of other areas as well: clinical trials, investments, legal affairs, real estate, biotech, etc. The major benefits of the software are its comfortable operation and confidentiality: users have a chance to work with repository anytime, from anywhere, and having no concerns about their data security.
When choosing the service for processing definite business transactions, it is highly important to check on the characteristics and functions it has to make sure it can certainly be beneficial for the client – more about m&a due diligence. The best features to look for in a sophisticated service are the following ones:
Various vendors apply various security-related tools for ensuring the data protection, but encryption is always among the most traditional ones. This measure supposes encoding the information stored in the data room to make the symbols unrecognizable for those users who are not authorized in the repository. It is the primary anti-hacking step that is a necessary condition for all the virtual data rooms. The difference can only be in the encryption protocol which was used: the latest is 256-bit, but 128-bit is considered also very safe.
While encryption is a protection from improper data accessing, using watermarks is a protection from unauthorized distribution. Electronic watermarks attached to the documents contain the data about their owners so the rights can be carefully protected. The digital watermarks might be dynamic which means that they can keep the information about all the accesses that have taken place.
Two-step authorization process
The best way to fully protect the VDR from hackers` attacks is to give them no possibility of even viewing the documents. For this purpose, many trusted vendors offer complex logging-in process that supposes two parts: typing down a permanent password and entering the generated code which was sent directly to the user`s mobile device.
Tracking and making visual reports
This option does not only give a chance to see what proceeds in the repository, but also gives the information about the sides` level of interest in the transaction. Tracking tools that are used in a chosen VDR mostly allow data room owners to track the activities within the online storage and draw conclusions regarding the most interested participants. The gathered information is highly useful during due diligence when the outcomes of the whole transaction depends on the properly led final negotiation.
Digital rights management
With a virtual data room, there exist no possibility for process participants to access the improper documents. The VDR itself controls the work and makes definite documents impossible to view for certain users. The important step that must be done in advance is identifying the rights for individual users or groups, and the instructions will be exactly followed.
This section has been especially designed to ensure online interaction between users. The offered way of communication does not only allow to save time, but also increases the security of the discussed information. To give an extra advantage, Q&A module may be equipped with the users` notification system and in-document linking that gives an opportunity to take the files stored in the VDR into the Q&A space.
Certain online repositories have basic interface which can`t be customized, the other allow definite possibility of customization. As well as setting changes set by the users, the organization which has a VDR has a chance to define its own interface. To make the VDR more recognizable for existing and potential clients, some companies introduce their logo and main company colors.
These seven characteristics are truly valuable for document security and successful management. While the first three ones are specifically intended for arranging the documents safety, four other ones concern the means of managing the information to make the deal better controlled and advantageous.
A VDR is a technology which can introduce a significant change in data storing, processing transactions, and interacting with business partners. If you have set your sights on improving the speed and productivity of business procedures, start choosing a good virtual solution today and gain the profit tomorrow.