The technological revolution presents both challenges and opportunities to businesses around the world. The advent of the Internet facilitated communication and sharing of information that allowed cross-border business transactions to conclude in the blink of an eye. The good news is, innovative companies have developed tools like the Virtual Data Rooms (VDRs) to facilitate these deals securely and efficiently.
A VDR is a software-as-a-service application used to store and share sensitive and confidential information through the Internet. It operates like some file-sharing tools like emails, Dropbox, and Sharepoint, but with additional communication and safety features that the latter lack. VDR managers can set different configurable role-based authorizations and rules for each project or team to ensure that the authorized user accesses the correct data.
Typical Features of Virtual Data Rooms
There are already several VDR providers in the market today. However, their offered platforms have similar features aimed at securing data and facilitate information sharing. Here are some of the common attributes of VDRs:
- Data security – VDR vendors design their platforms with a focus on how to secure the sensitive documents of their potential buyers. Among the critical applications (apps) used are data encryption, access control, secure browser, and digital rights management. These applications allow the users to access data securely and quickly but prevent them from saving or printing the documents without prior consent from the owner.
- Communication and collaboration tools – This facilitates communication and offers suggestions between the parties. Among the apps are alerts and notifications, Q&A, and comments.
- Document management – This capability allows the owner to restrict and monitor those who can access and modify the data kept in the VDR. The apps under this feature include version control and check-in/check-out.
- Functionality and integration – This ensures the compatibility of the VDR to other business software and existing content management systems. With this capability, customers can link their systems for seamless publishing and sharing workflows. They can also customize the VDR interface to feature their corporate brand.
Tips on Choosing the Right VDR for Specific Business Needs
In selecting a VDR platform, you should ensure its compatibility with your system and suitability with your business requirements. Nowadays, companies and organizations use VDRs in scientific research, legal cases, and financial transactions like mergers and acquisitions. However, they can already be used by any company to store and share their sensitive documents. Here are some tips on choosing the right VDR:
- Determine your capabilities and needs – You should know how much you can afford to pay for the VDR. You should also assess how the VDR will improve your operation and the additional cost for things like employee training.
- Scrutinize the features of the VDR to ensure efficiency and safety – You should examine the specific criteria you are looking for in a VDR. Among the areas to focus on are the price, data security, functionality, and ease of use.
- Ask around and look at the reviews – Before deciding what to buy, you should ask around regarding the performance. You should also read the actual reviews of the existing users. It is always a good practice to buy from reputable providers.
Investing in the right technology can offer many competitive advantages to your business. With an informed decision, you can choose the appropriate VDR which can meet your requirements and facilitate your transactions.