Recently, more and more companies have begun to use virtual data rooms (VDRs) as their numerous benefits become evident. Today there are many VDR companies, which develop and cooperate with others. But with so many virtual data room providers in the market, companies are confused about which one to choose.
Of course, the virtual data room you choose will be based on your business objectives and needs, whether to improve security, improve compliance or increase investor participation. In any case, there are some features that every VDR Due Diligence must have.
Here are some important features of data room providers that you should take into account.
Security and Encryption
Employees communicate with each other through standard means of communication. Corporate information is forwarded through instant messaging or email. Scammers easily intercept traffic and get the confidential information they need. Even significant security costs don’t help.
An easy solution is to integrate the VDR into the digital infrastructure. How a virtual data room guarantees data security:
- All corporate information is encrypted with AES-256 encryption;
- The transfer of corporate data is controlled;
- Application of invisible marks on documents;
- The changes are shown in the record.
It could be said that security is the most important factor that must be determined before choosing a virtual data room to operate.
Task management system with smart search
Generally, people need to use various applications and software while working, including administration software where tasks are assigned to everyone. Being able to assign and view tasks within the data room can help everyone stay better organized.
An advanced text search function gives you the ability to search all documents, folders and files in the virtual dataroom with some specific keywords and find anything instantly.
A smart search function also allows you to examine several documents at once and shows small previews of the document before they are opened.
Advanced analysis
With access to analysis, you can track what users do within the digital data room, how much time they spend on a document and how many viewers are looking at a document at the same time.
There are also audit records that maintain a chronological order of everything that happens in the due diligence data room, including downloads, views, etc.
Total control of documents
The exchange of information through email and instant messaging is not controlled. If an employee transfers a confidential document in that way, it is not known how many copies the other party made or if the information was sent to someone else. The result is a violation of license rights, duplication of confidential documents.
In the virtual data room, each action is monitored. The activity log shows the actions that users have taken and also shows how many copies have been opened and who has downloaded and modified the document.
Access to the documents is opened only after the permission of the owner of VDR. Through the control panel, you can close access prematurely, create a temporary link to the document. Because of this, an unknown user will not be able to use confidential information.
Easy accessibility
Since the virtual data room will be used by many people, using many different devices in various parts of the world, it must be easily accessible to them. The virtual data room should work on all popular operating systems such as Android, IOS, Windows, etc.
It must be optimized for mobile devices and have support in several languages so that users can speak in the language they prefer. A good virtual data room should also not require additional downloaded add-ons for specific tasks.
Easy loading
Uploading documents in a virtual data room is also a simple process. Drag the files you want to upload and drop them into the virtual data room. If you want to upload several files to the virtual data room at the same time, you can use the bulk upload function. You will also be able to open several files within the virtual data room, since this software supports multi-format files.
Live chat
Collaboration and teamwork become especially difficult when all members of the workforce are divided into different countries and time zones. But a live chat function where members can send and receive real-time text messages incorporated into the virtual data room can be very efficient.
It also provides them with a saved chain of communication that they can return to at any time or use for other purposes.
Conclusion
A virtual data room can greatly improve any process with greater document protection, user activity control and a level of convenience never seen before. In addition, virtual data rooms are much cheaper than their physical counterparts, which by the time now are disappearing in favor of online data room providers.
This means that absolutely any project can benefit from a correctly selected virtual data room, and the sooner the digital transition begins, the better it will be for the growth of your company. You can check out data room software list here below.
