Online data rooms Circumstances to Presume

April 28, 2016
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The importance of digital solutions in the business world cannot be overvalued. The numerous research works confirm that using IT helpers does not only increase the quickness and strength of most business procedures, but is the only condition of remaining competitive in the market. One of the most in-demand solutions for business sector is a virtual data room. Let`s check which way it can help your business.

Online data room is the innovation which has earned the great popularity within the last ten years. Having been primarily created for dealmaking, the technology quickly got actively used in the other industries with the same success: clinical trials, fundraising, legal practice, real estate, biotech, etc. The key benefits of the technology are its convenient operation and confidentiality: parties have an opportunity to work with the VDR anytime, from anywhere, and having no concerns about the files security.

When choosing the service for processing definite business transactions, it is much important to get well acquainted with all the characteristics and functions it has in order to be sure the chosen VDR can truly be advantageous for your organization – more about how to setup a virtual data room. The key options to look for in a sophisticated service are the following ones:

Encryption

Various providers use different security tools for ensuring the files protection, but data encryption is always among the most common ones. It supposes encoding the information kept in the repository in order to make the symbols unrecognizable for unauthorized users in the data room. It is the most important anti-hack step which is a necessary element for all the virtual data rooms. The distinction can only be in the encryption protocol which was used: the latest approved standard is 256-bit SSL, but 128-bit is considered highly secure as well.

Digital watermarks

While encryption is a protection from illegal files accessing, digital watermarks is a protection from improper sharing. Electronic watermarks attached to the files keep the information regarding their owners thus the rights is fully protected. The digital watermarks can be dynamic which means that they can collect the details about the previous accesses.

2-step authorization

The best way to fully protect the virtual data room from hackers` attacks is to restrict their possibility of ever viewing the files. For this purpose, most reliable providers use complex verification process that supposes 2 parts: entering a common password and entering the generated code which was sent right to his mobile.

Tracking and reporting

Activity tracking and audit log feature does not only help to check what happens in the repository, but also allows to get a feedback regarding the sides` interest in the deal. Tracking tools which are used in a chosen VDR usually let owners to monitor the activities within the online storage and build conclusions regarding the most concerned parties. This data is specifically in-demand in M&A transactions when the result of the whole transaction depends on the well prepared negotiations.

Setting permissions

When there is a VDR, there is no possibility for participants to access the improper files. The system itself takes control of the operations and makes definite documents inaccessible for the chosen users. The important step that should be made beforehand is defining the restrictions for all the system users, and to be sure they will be carefully followed.

Q&A module

The mentioned section has been specifically designed for arranging online interaction between users. The chosen way of communication does not only help to quicken the process, but also adds to 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 offers a possibility to take the files stored in the VDR into the Q&A space.

Customized interface

Some virtual data rooms have standard interface that can`t be corrected, the other products suppose slight or great chance of customization. As well as changes in settings set by the users, the company that owns a virtual data room has a chance to define its chosen interface. In order to make the data room easily recognizable for current and potential clients, large corporations introduce their logo and company colors.

The indicated functions are much important for document safety and efficient working. While the first three are necessary to ensure data security, other four relate to the way of using the information to make the working process fully controlled and advantageous.

Virtual data room is a technology which can perform a revolutional change in information storing and distribution, managind transactions, and communicating with business partners. If there is a need for improving the quickness and effectiveness of business processes, start choosing a reliable virtual data room right now and gain the benefits tomorrow.

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