The Top 3 Reasons Why Your Business Needs a Virtual Data Room to Stay Ahead of the Competition
Anything that can give you an edge over your competitors directly or indirectly is worth investing in. Developing some sort of competitive advantage in modern-day business markets is important to stay ahead. That advantage can be based on better products, efficient means of production, or the use of superior technology. Yes, technology can keep you ahead, and virtual data rooms are a prime example of this narrative.
But if a virtual data room is just a document repository, how can it help to build a competitive advantage? To start with, VDRs are not just ordinary online document storage platforms — they are complete business suites. Below is a basic introduction to data room software and how it can help your business stay ahead of competitors.
What is online data room software?
Online or electronic data room software, in simplest words, is an online data storage platform used for storing and managing different types of business documents. It is a cloud data repository regularly employed by government organizations, companies, service providers, and professionals for different reasons, including:
- Data storage
- Data management
- Data sharing
- Online communication
- Project management
- Deal making
The next question that may pop up in your head is, "who controls or hosts these data repositories?" An electronic data room is hosted by certified virtual data room vendors (certified by ISO and local governing bodies). These VDR providers comply with the latest internal and regional cyber security standards, including ISO 27081, ISO 27001, GDPR, FINRA, SOC2, etc.
Some of the best virtual data room providers include iDeals, Ansarada, Digify, Intralinks, Merrill, DealRoom, and SecureDocs. Find more virtual data rooms on this website.
3 reasons why virtual data rooms are important
1. Process automation saves time and boosts efficiency
Using high-end data room services not only helps your business manage your data safely, but they can automate different processes in your organization. Process automation not only saves time but also increases the workforce's efficiency. Here is how online data room software does it.
Easy data access
VDRs give your employees, stakeholders, directors, partners, and business teams easy access to the corporate documents. They don’t have to be physically present in the organization as remote VDR accessibility allows them to log in to the data room from anywhere and instantly get the document they want.
Better data organization
In a virtual data room, you can organize data in any convenient way. You create user groups, share relevant documents with them, or make public folders and provide custom access to users. The best part is that documents can be retrieved in a matter of seconds. Just enter the name, keyword, search tag, or phrase in the search bar, and locate your desired file immediately.
Faster data sharing and communication
Faster and safer data sharing is one of the biggest benefits of online data room software. It literally takes a few seconds to share hundreds of documents with hundreds of users. In addition to that, intra-business and inter-business communication can easily take place in VDRs.
In a nutshell, VDR technology eliminates the need for multiple solutions for data management and communication.
2. Faster deal making
Data room technology can speed up your inter-organizational transactions and deals. You can close long and tiring deals way faster and easier. That is why data rooms are primarily employed for transactions like joint ventures, strategic partnerships, real estate deals, fundraising, mergers, and acquisitions.
Let's take the example of data room software in fundraising. It allows you to upload all due diligence documents in one place and provide controlled access to potential investors. Investors can easily verify and analyze all documents online, ask questions and get real-time answers within the data room, and all concerned parties can communicate whenever needed.
In short, when you have remote access to due diligence documents, real-time communication, and project management tools in one place, you can close a deal quicker.
3. Reduction in business expenses
Reducing business costs can help you lower your product or service prices and build an edge over your rivals. But how can data room software help you reduce those business costs? Well, studies say that, on average, a company in the United States spends almost $400,000 on paper and printing costs every year.
When you employ data room software, you minimize or even eliminate the need for paper documents. In other words, that $400,000/year expenses can be reduced by at least 75%, which reduces the overall business expenses. Besides, those funds can be used for business expansion and other projects.
Minimizing your business expenses and process automation are great ways to achieve competitive advantages. Process automation saves time and boosts productivity while reduced business expenses lower the cost of products or services.
Using a virtual data room is a great way to automate processes, facilitate deal making, and reduce expenses in one shot. The best part? It is a sure-fire way to get ahead of the competition. Just be sure to conduct your data room comparison to make sure you’re settling on the right solution.
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