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Online Data Rooms Are the Document Management Revolution

Online Data Rooms Are the Document Management Revolution

About a decade ago, the thought of having 24/7 access to your business data without carrying laptops or USBs looked like a distant reality. Nobody thought that professionals, business teams, and employees would be able to access business data using their mobiles from anywhere, anytime.

However, thanks to virtual data rooms, everything mentioned above is easily possible now. An electronic data room is a revolution in the field of data management, and it has become a highly trustable business solution all over the world.

If you haven’t heard about dataroom software already, here is a comprehensive guide for you.

What is a digital data room?

A digital or virtual data room in an online storage platform used by businesses, professionals, enterprises, corporations, firms, government agencies, constancies, etc., for centralized data storage and sharing.

Initially, data room services were often used by corporations for mergers or acquisitions. Companies used them as temporary central data repositories to give data access to the bidders in M&A transactions. So technically, digital data rooms were used as virtual deal rooms.

Nowadays, VDRs are highly trustable deal rooms for transactions like fundraising, strategic partnering, joint ventures, initial public offering, real estate sale and purchase, mergers, acquisitions, etc.

Current-day VDRs are feature-rich virtual working spaces where remote workers, professionals, employees, and business teams can share documents, conduct virtual meetings, communicate privately, hold brainstorming sessions, raise polls, and cast votes within a data room.

Virtual data room: Document management revolution

Online data rooms are not just data storage platforms where you store and retrieve data whenever needed. Instead, they are complete document management tools that streamline different processes in your organization. Here is how a VDR automates document management.

1. Organized business data

Keeping your business data organized saves a lot of time and improves your workforce’s efficiency. Do you know improper data organization is one of the key reasons behind inefficiency in employees? A study says that unorganized data in paper form can reduce the efficiency of your employees by 20%.

Virtual data room software helps businesses organize their hundreds of documents and files in their desired structure. While uploading your business documents, you can create as many folders as you want. Creating folders and subfolders for different types of documents help users to find their desired documents easily.

What’s more, users can add a search tag while storing a file and retrieve it by name, keyword, or file type. The full-text search feature in VDRs helps users find a file by entering a sentence or phrase in the search bar. In short, file retrieval in VDRs is super easy. Most importantly, you can upload a file in multiple formats, including documents, videos, images, and audios.

2. Centralized data storage

Centralized data storage is another important part of an effective document management system. Central data storage means a business keeps all its data related to different departments and sections, such as taxation, finance, marketing, HRM, IT, etc., in one place.

But why is central data storage useful? First of all, centrally stored data is easy to protect from cyber threats. Secondly, cross-department data sharing becomes easier, and teams from multiple departments can easily access the documents they need. Third, a business doesn’t have to maintain multiple databases, which is an expensive data storage model as well.

3. Secure data sharing

Email services were considered as the most secure business data sharing channels, but numerous mass-scale data leaks due to cyber attacks raised questions about email security. For instance, Yahoo, the leading global email service, has been hit by data thefts on several occasions.

Fortunately, data sharing has been made easy and safe by virtual data rooms. Data room users can share, edit, and annotate documents in an encrypted format. When a user shares an encrypted file, only the intended recipient can decode it. The best part is, data sharing happens in a controlled and monitored environment.

If a business wants to share data with external parties, data room administration can temporarily add them to the data room and proceed accordingly. In short, your business data is shared within the data room.

4. Document access control

How does a VDR make data sharing safe? Data room software allows the administrators to limit data access as per the company’s requirements or policies. The administration can restrict users or a group of users from accessing a folder, file, or even page(s) within a document.

Fence view is a feature you would rarely find in any other data storage software. Activating the fence view mode on any document prevents users from editing, modifying, or printing it. What’s more, the fence view mode restricts users from taking photos or screenshots of that document.

Users can use digital watermarks in VDRs to stamp their copyrights on their documents. Digital watermarks help trace the changes made in the document and details of the users who did it. VDRs have a document access revocation feature that allows you to revoke document access anytime.

5. Data security

A document management tool without a sound security system is a waste of money. Luckily, virtual data rooms have exceptionally excelled in this area. Virtual data rooms have robust security features like two-step verification, audit logs, data backup, device IP address tracking, etc.,  that greatly reduce the chances of cyber attacks and data leaks.

Certified virtual data rooms have strict compliance with business data security standards like FINRA, ISO 27001, ISO 27081, SOC2, etc.

Final words

Virtual data rooms don’t have many alternatives when it comes to highly secure and automated document management. The level of convenience, ease of use, remote accessibility, and unparalleled data security make data room software a valuable business asset.

virtualdata-rooms.com provides you with helpful information about VDRs, and comprehensive reviews on data rooms available in the market.

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