Today, the role of the central nervous system in enterprises is performed by the information system that contains all data about business deals and allows employees to solve their daily problems, and the owner – to operate with relevant information. So, what would you choose – file manager or virtual data room? Here is more about it.
File organization service or virtual data room?
File organization software is a program that provides a user interface for working with the file system and files. The file manager allows you to perform the most common operations on files – creating, easy collection, distribution, filing, editing, and archiving of documents in a team. In addition to the basic functions, many file managers include several additional features, such as networking (via FTP, NFS, etc.), backup, printer management, etc. With freely definable folder structures, including import and copy options, you can keep track of even the most demanding projects.
But when we talk about deal management for important business transactions, it is recommended to use more functional software like as virtual data room. This digital platform provides a full-packed solution for ensuring efficient collaboration in real-time.
Data room: how does it work?
A digital data room is a multifunctional platform that is used as a cloud for storing and processing important and mostly confidential documents. According to statistics, with the implementation of virtual data room, the efficiency of employee interaction significantly increases. The use of a single platform for managing processes and documents in enterprises makes it possible to standardize and optimize business processes. Internal coordination of organizational, administrative, and regulatory documents becomes faster, and work with confidential documents is simplified.
Data room software provides the following functions:
- the ability to create a long-term archive of documents, ensuring their legal significance throughout the entire period of validity, and support for retention policies;
- to quickly create outgoing documents, the system has ready-made templates;
- after entering the document is registered in a couple of clicks. Registration logs and nomenclature of cases are maintained in the system. The number is assigned automatically in the required format;
- tracking the location of paper copies;
- preparation, approval, and signing of memos in electronic form;
- monitoring the execution of orders and decisions on memos;
- approval and signing of qualified ES contracts to ensure their legal significance;
- any document can be quickly found by details and content text.
Having received a documentary archive in electronic form, the need to create copies of documents will be significantly reduced. Documents are transferred from operational management to archive management automatically.
Why do working teams choose the data room solution?
In comparison to file organization software, data room has the following advantages:
- secure and efficient data exchange;
- all documents, files, and confidential documents are stored and protected online with extra-high security;
- well-organized collaborative workspace;
- faster and cheaper processing of business transactions (purchase, sale);
- acceleration of all processes involved;
- convenient online reading of files directly on the screen, without downloading;
- no software installation required;
- efficient document management;
- easiest usability.
Virtual data room provides stronger security measures including encryption, two-factor authentication, audit logs, digital watermarking, access data control. The outstanding data room authorization management allows the administration of many users and groups with little effort. Besides, detailed access rights regulate which parties are allowed to view which documents. Accordingly, the security, traceability, and quality of the documentation for deals, or investments increase.