There are thousands of proven solutions for finding documents quickly and easily, sharing them with others from anywhere, and editing them together. So, what will you choose: a traditional file-sharing system or a professional data room? What benefits can virtual data rooms have for companies?
The risks of using a file-sharing system compared to a data room
Today, more and more companies are switching to electronic document management. Business interest in this tool is easy to explain: it helps to significantly reduce costs, reduce the number of errors and abandon many routine processes. Electronic documents have legal force, and the process of their exchange can be securely organized to prevent data leaks.
Secure and effective document management plays an important role in business. Before the Internet, companies could store confidential information in locked cupboards or a vault under their building. The data remained secure as long as there was no breach of personal and company security systems. The Internet has enabled cloud storage and free file-sharing solutions like Google Drive and Dropbox. While these services are effective and inexpensive, there are concerns about their security, limited functionality, and control. Therefore, most companies still consider virtual data rooms to be more relevant. With this software, you can electronically record paper documents and files in your organization, edit them, save them and track changes to the documents. Introducing a digital data room in companies and administrations affects the entire organization. It is therefore important to involve all those affected by the implementation, convince them of the benefits of the solution, and set realistic goals for the implementation that do not overwhelm the organization and bring results quickly.
Cloud services and Software-as-a-Service have now fully arrived in the corporate environment. It is now a matter of integrating this technology as comprehensively and holistically as possible into existing processes and application landscapes – in such a way that both companies and users benefit equally from the promises of the cloud.
Professional data room vs. traditional file-sharing service
According to https://dataroomreviews.org/, the following features can justify the difference between data room solutions and traditional file-sharing services:
- Stronger security measures
With a data room, you can better control access to confidential and sensitive data. Using a rights and access system, you can easily determine who can edit and pass on the information on the documents. For example, only the HR department and managers have access to personnel contracts, and sales contracts are reserved for sales. In addition, with a data room, you can easily comply with the regulations of the GDPR or HIPAA.
- More productivity
You can access business documents quickly, securely, and from anywhere with an electronic data room. It accelerates the flow of information and shortens the search for information and documents. Employees can thus concentrate on important tasks. In addition, copies are no longer needed to share documents with others because all documents are available in one central location.
- Easier data control
Specialists and managers spend a lot of time daily looking for documents and information. This problem is easily solved with an electronic document management system. Capturing, saving, searching, editing, and sharing documents is considerably simplified and accelerated, e.g., by automating workflows. Data rooms also make your company more modern and attractive. Monotonous work steps are eliminated.