Rapidly developing businesses and competition in the market are pushing companies to change their management methods and business organization models. Therefore, companies introduce virtual data rooms for efficient business processes and transparent and automated document sharing.
Data room for digitalized document sharing
Digital technologies and the Internet impeded the development of virtual data management and secure document sharing. A virtual data room (VDR) is a logical continuation of the usual paper workflow in enterprises, created and distributed through digital media. The transition from the standard organization of work with documents to the format of electronic document management has optimized the work of both commercial and government organizations. The use of the VDR has accelerated work with regulated documentation at times. A quick way to transfer documentation to external counterparties is unconditional progress compared to paper documents. The inefficient management of many businesses is the banal unsystematic organization of the enterprise’s electronic document management, which a single system for secure file-sharing like a data room can solve.
Most organizations keep records of business activities and create documents for processing transactions in the accounting system. Usually, an accountant prints out and signs paper documents and sends them by mail or courier. It receives from the counterparty, approves, and returns the signed documents. After the business transaction is completed, the employee of the enterprise enters into his accounting system an invoice, primary documents received from the counterparty. VDR allows you to exchange legally significant documents electronically via the Internet in seconds.
Data room is a powerful system that allows you to register, approve and record documents, assign and control the execution of tasks, and covers the entire life cycle of working with contracts, orders, and other documents. The central task of the data room provider is the secure storage and specified access to the data for a defined time. Depending on the data room pricing policy, vendors can provide additional services. In addition, the provider must guarantee that the data cannot be changed and is stored on several servers. In the event of any legal disputes, the data room is part of the contract and can be used by both parties.
Reasons to choose VDR for secure data exchange
The main advantage of the data room software is the rejection of “paperwork” and easy data exchange. There are also other advantages:
- acceleration of coordination of internal documents due to their storage in a single space;
- quick access to documentation, speed of changes, and simple document flow management;
- increasing the responsibility of employees since it is clear who, how, and when worked with the document;
- reduction of expenses for office work and organization of document circulation;
- prevention of duplication of information and automatic formation of an archive;
- to start the exchange of electronic documents, it is enough to send an invitation to the counterparty directly from VDR and receive confirmation from him;
- the storage of electronic documents is part of a VDR infrastructure. Thus, in the course of standard procedures for backing up an infobase, you can create a backup copy of electronic storage;
- the impossibility of unauthorized access to documents due to encryption.
The introduction of VDR is necessary, first of all, for companies with a large amount of external document flow. By simplifying the work with documents, business processes are accelerated, and office costs are reduced. In addition, this software will be useful for those entrepreneurs who want to improve the level of customer service and optimize interaction with counterparties.