Technology has brought about convenience in almost all aspects of our daily life. From transportation and communication to connectivity and even transactions, technology has vastly affected the way we live. This effect is also seen in businesses. Nowadays, most business transactions are mainly done with the help of computers. This has also caused data storage to shift from shelves to virtual data rooms.
What are Virtual Data Rooms?
Virtual data room refer to an online repository for storing data. Instead of having numerous folders containing various information, you can have them all neatly stashed and organised online. Virtual data room/s are also secure, so rest assured that the data stored are not accessible by anyone. Only those authorised can gain access to view the stored files.
A lot of companies nowadays prefer the use of virtual data room/s due to less cost and less chance for breaches and security leaks. Aside from security concerns, virtual data room/s are more convenient and easier to use. It is for these reasons that companies now prefer virtual data rooms more than physical data rooms.
Below are 7 ways that virtual data rooms can positively affect businesses:
1. More Convenient
Imagine being an office staff. You have to stash and organise hundreds of documents and then have to search for a certain file meticulously whenever you need it. Physical data rooms require more effort and time to operate.
On the other hand, virtual data rooms can easily store and organise them in any way you want. Should you need a file from the stash, you can already access the file with just a few keystrokes. No more time-consuming leafing through various folders just to find the file you need.
2. Data Collaboration and Group Works
Before virtual data rooms, office workers would need to physically go from department to department to transfer files. This is both tiring and more time-consuming. This is further highlighted when working on a project with a lot of members in a group. However, that’s not the case with virtual data rooms.
When working with a team, virtual data rooms make it easier for one member of the group to access the report or files of the other group members. Collaboration is easier in a virtual data room. All one needs is authorisation for access, and he can then access the files. This is also rampant in the transactions of several companies. Each party can conveniently review and exchange documents online.
3. Less Costly
A lot of businesses prefer virtual data rooms since they cost way less. You no longer need physical space in the office to store your files. Before, you’d have to print loads of documents which require more paper. However, with virtual data rooms, you won’t have to print out your files. You can continue with your work using soft copies stored in the virtual data room.
The need for hundreds of folders to organise your documents and any shelf or locker to store them diminishes. Hardly any maintenance is needed for virtual data rooms as well. You can access the files as long as you have internet connectivity.
4. Files in Virtual Data Rooms are More Secure
For confidential files and documents, extra security must be foreseen, lest a company or business should suffer a leak or a data breach. Before, confidential documents are placed in a locked locker which only a few people could access.
However, this does not mean that it is secure. There are a lot of possible security breaches for a physical lock. Anyone can find a key and have it duplicated. Others may even break the lock.
In virtual data rooms, the data stored can only be accessed by authorised personnel. Therefore, no one else can access those confidential files. The importance of these security precautions is given more weight when it comes to files regarding finances or banking. These types of files are very confidential, and virtual data rooms are a good way to keep them secured.
5. Auditing in Virtual Data Rooms
In all businesses, there are auditing practices, accounts, compliances, etc. The processes in auditing usually involve a lot of workers, and they would need to interact with external and internal regulators. The role of virtual data rooms in auditing is that they provide a central access point. This makes the auditing process flow smoother. As a result, employees suffer less stress, and more importantly, virtual data rooms reduce the margin of error in the auditing process.
6. Virtual Data Rooms Promote Trust and Transparency
In a business transaction involving many companies, transparency is key for trust. Virtual data rooms help in this regard since all parties authorised to access the files can see what the other parties have placed inside the virtual data rooms, and they can transparently see the actions done by other parties.
Furthermore, companies can easily check and correct the files with the knowledge of all parties. This helps avoid friction between the parties and makes the negotiations and transactions continue without a hitch.
7. Virtual Data Rooms and International Transactions
It is common for big businesses to branch out internationally. Other businesses may partner up with other businesses in other countries. These transactions require massive file transfers, and it needs to do so frequently. However, with the emergence of virtual data rooms, companies from different countries are now able to share data, files, documents, and other important information securely.
Unlike physical documents, the mode of transportation in virtual data rooms is via the internet. Not only is it less costly, but it is also very efficient and makes transactions from businesses in different countries to proceed smoothly and without problems.
With the rapid advance of technology in the industrial setting, it is not surprising that someday, most of our business transactions will be done online and without paperwork. In this regard, virtual data rooms provide an excellent alternative to physical storage systems as they are more convenient, require less time, and easier to operate, among others.