The significance of IT solutions in dealmaking cannot be overvalued. The numerous researches confirm that using IT solutions does not only improve the quickness and efficiency of major business transactions, but is an important condition of keeping a leading position among competitors. One of the most attractive platforms for organizational activity is a virtual repository. Let`s check which way it can be useful.

Online data room is the recent development which has got the huge regard during the last decade. Being initially designed for M&A transactions, it quickly became frequently used in the other spheres with the same success: clinical studies, investments, legal affairs, real estate, biotech studies, etc. The key advantages of the software are its convenient operation and confidentiality: users have a possibility to work with the VDR at any time any moment, from any location, and without concerns about the information being safe.

When it is necessary the service for processing definite business transactions, it is highly recommended to check on the characteristics and functions it has to make sure this data room can surely bring benefit to the users – more about data room service. The most required options to expect from a trusted platform are the following:

Encrypting the data

Various providers use different security-related tools for ensuring the files safety, but encryption is among the most traditional ones. This measure involves encoding the information placed in the repository to make the symbols unreadable for unauthorized users in the data room. This is the primary anti-hack measure which is a required element for any data room. The distinction can 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.

Digital watermarking

While data encryption is a protection from unauthorized viewing, digital watermarks is a protection from illegal data distribution. Electronic watermarks attached to the files store the data regarding their owning organization so the rights is carefully protected. These watermarks might be dynamic which means that they can store the details about the previous accesses.

Two-step authorization process

The greatest way to secure the online repository from hackers` attacks is to limit their chances of ever viewing the files. For this reason, most reliable VDR providers offer 2-way authentication , which happens in two stages: using a permanent password and entering the code sent directly to his mobile.

Tracking and audit report

This option does not only give a chance to see what proceeds in the data room, but gives the information regarding the parties` engagement in the transaction. Tracking tools which are used in a chosen virtual data room mostly allow the target company to track what happens within the online storage and build conclusions about the most active parties. The received information is especially valuable for dealmaking when the result of the whole transaction depends on the well led final negotiation.

Rights management

When there is a VDR, there exist no possibility for participants to gain access the wrong documents. The system itself takes control of the work and can make certain documents inaccessible for the chosen users. The only step that must be made in the beginning is determining the restrictions for all the participants, and they will be carefully followed.

Questions & Answers module

The indicated module has been especially included for ensuring online-based communication between the participants. This means of interaction does not only help to quicken the process, but also increases the security of the discussed information. To increase users` comfort, Q&A space may be equipped with the e-mail notification system and in-document linking which offers an opportunity to drag the files into the Q&A space.

Customized interface

Definite online repositories offer standard interface which cannot be corrected, some other give definite possibility of customization. As well as changes in settings set by certain users, the organization that owns an online data room may select its desirable interface. To make the virtual repository more recognizable for existing and potential clients, well-known companies use their logotypes and company colors.

The mentioned characteristics are truly important for files security and data management. While the first three are specifically intended to ensure the files protection, four other ones concern the means of using the data to make the working process better controlled and advantageous.

Virtual data room is a tool that can perform a significant change in the way of storing data, processing deals, and interacting with business partners. If you have decided on improving the speed and efficiency of business procedures, start choosing a reliable virtual solution today and be sure to get the advantage tomorrow.