Data Rooms Items to Keep in Mind

The significance of digital solutions in dealmaking cannot be overvalued. Several research works prove that using IT helpers does not only increase the speed and strength of major business processes, but is a vital condition of keeping a leading position among competitors. One of the most attractive online tools for business is a virtual data room. Learn which way it can be useful.

Virtual data room is the novelty that has gained the huge popularity within the last ten years. Though first designed for dealmaking, the technology soon became actively used in plenty of other areas with the unchanged success: clinical studies, fundraising, legal practice, real estate, biotech studies, etc. The main advantages of the software are its convenient operation and confidentiality: users can work with repository anytime, from anywhere, and having no concerns about the information safety.

When it comes to choosing the virtual solution for supporting business transactions, it is most recommended to check on the main characteristics and functions it possesses in order to be sure it can surely bring advantage to the certain organization – more about free virtual data room. The most popular features to require from a sophisticated service are the following ones:

Data encryption

Various providers offer various security instruments for best files safety, but encryption is among the standard ones. It supposes encoding the information stored in the VDR in order to make the symbols unreadable for unauthorized users in the data room. It is the primary anti-hack measure that is a required element for all the VDRs. The distinction can only be in the encryption standard which was used: the latest is 256-bit, but 128-bit is considered also very secure.

Dynamic watermarking

If encryption is viewed as a protection from illegal data accessing, digital watermarks is a protection from illegal sharing. Special watermarks enclosed to the documents keep the data regarding the document`s owners so the rights can be carefully protected. The watermarks can be dynamic and, in this case, they can store the information about all the accesses that have taken place.

2-step verification

The greatest way to protect the online repository from hackers` attacks is to limit their chances of ever viewing the documents. To achieve this, many trusted vendors apply complex verification process , which proceeds in two stages: entering a user`s password in a combination with typing down the code that was sent right to the user`s smartphone.

Performance monitoring and reporting

Activity tracking and audit log feature does not only give a chance to see what exactly proceeds in the repository, but also allows to get a feedback regarding the sides` level of interest in the transaction. Tracking tools used in a good data room mostly let data room owners to monitor the activities within the virtual storage and build conclusions regarding the most concerned deal members. This data is specifically in-demand for processing deals when the success of the transaction may depend on the well prepared final negotiation.

Rights management

With a virtual repository, there exist no possibility for process participants to access the improper documents. The VDR itself takes control of the operations and makes definite files impossible to view for certain system users. The necessary thing that should be done in the beginning is determining the permissions and restrictions for the data room users, and the instructions will be exactly followed.

Questions & Answers module

The mentioned section has been intentionally designed for arranging online-based interaction between partners. The offered means of interaction does not only help to save time, but also improves the safety of the discussed matters. To make the section truly convenient, Q&A space may be combined with the electronic notification system and in-document linking that offers a chance to link the certain files to the Q&A space.

Customized interface

Certain online repositories have basic interface which cannot be corrected, the other products give slight or great possibility of customization. As well as changes in settings made by the users, the organization which owns a VDR has a chance to introduce its desirable interface. To make the VDR easily recognizable for existing and potential partners, some companies apply their logo and main company colors.

The mentioned functions are much valuable for document safety and successful management. While the first three are specifically intended to ensure the files protection, other four concern the way of managing the information to make the transaction better controlled and advantageous.

Virtual data room is a solution that has a potential to make a significant change in data storing, processing deals, and building business relationships. If you feel the need for improving the speed and productivity of your business processes, start selecting a good virtual data room right now and get the profit tomorrow.

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