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| Photo: Experdocs |
BY: MOHD EZLI MASHUT
BUSINESS SMART STRATEGY: In today’s world of relentless change, it is not the most qualified of the business that will survive, nor the most skilled. It is the one that is the most adaptable to change.
Before the revolution internet of things (IoT) and cloud storage technology, documents, data and other files had to be stored in physical data rooms that required staff, couriers, abundant paper supplies, and other costs.
Besides such financial burdens, business people using physical data rooms also had to travel to the storage location site, and then spend time sorting through and reviewing copious stacks of paperwork.
But today, In Virtual Data Rooms, or VDRs, documents and other files are stored securely on an online server, where multiple users can easily and efficiently access, share, and manage vital information simultaneously, without the risk of theft or information loss.
VDR users can share their documents in hierarchically arranged structures. The ability to use digital mechanisms like semantic tags instead of folders and crosslink specific line items and terms to other paperwork makes it much easier to furnish a transaction partner or legal team with information that they can easily browse and navigate.
Due diligence may require that specific documents, like profit-and-loss or compliance histories, be replicated or referenced at multiple locations in other records. VDR’s compatibility with robust digital organization schemes facilitates the maintenance and rapid sharing of complex data repositories.
Why Business Needs A Virtual Data Rooms
Business, finance, law and the health care industry has been quick to see the many advantages associated with maintaining a virtual data room.
The online data room is populated with the selling company’s important documents: contracts, intellectual property information, employee information, financial statements, capitalization table, and much more.
The online data room allows the selling company to provide valuable information in a controlled manner and in a way to help preserve confidentiality. The online data room avoids the need to have a physical data room where the documents are kept, and helps expedite an M&A process.
The online data room provides the benefit of cost savings over traditional physical data rooms, easy access to documents when needed, a search function, easy updating and adding of new documents, and security of sensitive information.
Government offices and non-profit organizations have also begun to employ these virtual data rooms. Much like private corporations, they recognize that virtual data rooms are the perfect place to secure and share a variety of documents.
In a digitally dependent world, where information is king, the need to preserve data in a secure and “non-biodegradable” way is of paramount importance.
Virtual data rooms have almost the same grade of security as high-level financial agencies like banks. With a VDR, you can be sure that your private information will not be affected by natural and manmade disasters, fire or flood.
Your VDR is on the internet, which means that it can be accessed by investors from anywhere across the globe.
Also, with a well-structured VDR, these investors will have access to whatever important documentation they need to make informed decisions concerning bidding. This mixture of global accessibility and quality information may well translate into a higher monetary gain.
Future Of Virtual Data Rooms Industry
Over the past five years, the Virtual Data Rooms industry has experienced strong growth as it becomes a standard tool in many businesses.
Due to the significant time and money savings that virtual data rooms offer, their usage has experienced dramatic growth, boosted by increased demand from key clientele such as private equity, venture capital and law firms.
Furthermore, the industry is expected to continue to grow rapidly over the next five years, as businesses continue to become more comfortable using online services, and transition away from physical data rooms.
REFERENCE:
1.https://www.cloudfuze.com/virtual-data-rooms-the-future-of-information-storage-is-here/
2. www.forbes.com
3. www.entrepreneur.com
3. www.ibisworld.com
