Although remote working emerged as the only option after the demolition caused by Covid-19 back in 2020, it certainly isn’t that bad, though. The corona pandemic literally forced businesses all over the world to “shut down” or work remotely.
At first, it seemed that people wouldn’t be able to switch from office-based or on-site jobs to work-from-home options, but it was the exact opposite. The work-from-home mantra took over the businesses in no time, and to be honest, it was cost-effective for companies as well as employees.
However, one major problem every business faced was how to ensure smooth collaboration between the employees. This is where virtual data rooms emerged as the “saviors.” Virtual data rooms, also referred to as electronic data rooms, are a complete solution for businesses to overcome the hurdles in remote work and improve efficiency.
A lot of us may still be unaware of this awesome technology, and that is why we’re going to talk about data rooms and how they transform remote work practices.
What is a virtual data room?
Simply put, a virtual data room, often known as an online data room or simply data room software, is a cloud-based platform that can be used for different purposes. First and foremost, it is an online data repository that businesses can use to store or share data of any type.
Moreover, it is a virtual platform where users can easily collaborate and communicate with each other. As you can see, communication and data storage are two common features of data room software. However, a digital data room is not just an ordinary repository; it is a highly secured storage space where you can share data without worrying about data thefts.
Key benefits of data room software for remote work
For businesses, the key challenge of remote work lies not in ensuring collaboration between employees. Instead, they need a secure online space where their teams could work in a completely safe environment.
Data thefts are the biggest concern for any organization, but luckily, data rooms make sure that businesses in a remote setting can operate smoothly and efficiently, with minimum chances of data security threats. Here’s how.
1. Secure data storage and sharing
As we mentioned earlier, virtual data rooms are secure, online repositories that you can use to store or share documents of any type. Working remotely means you need a platform where you can store and share business files with others as per your needs.
You might ask, why can’t we use emails or similar platforms? Of course, you can share sensitive business data through emails, but you never know how safe your email is.
Why? Well, even Yahoo, one of the most famous internet service companies, reported data breaches affecting up to 1 billion user accounts. Are you still sure you can trust email platforms to share your sensitive business data? We bet not.
On the other hand, data room providers make sure that your business documents don’t share the same fate as Yahoo users did. For starters, unauthorized users cannot access the data room.
Even if the hacker somehow gets your password, the two-way authentication method ensures that the hacker doesn’t go through the login procedure easily. Besides, the data is always shared in an encrypted form, so the possibility of data being “caught” is negligible.
2. Ease of access: anytime, anywhere
Another fascinating thing you can associate with online data room software is its accessibility. Whether you are at your home, gym, or any part of the world, you just need your smartphone or tablet to access data rooms with a single click.
The remote accessibility feature is even more useful for stakeholders, investors, or shareholders. Investors love to stay in touch with what is happening in the organization. Virtual data rooms allow them to keep an eye on proceedings from anywhere at any time. They can communicate with other stakeholders, edit or update documents, read or leave notes, and whatnot.
3. Simplified due diligence
Data room services are gaining popularity because of their role in revolutionizing the due diligence process. Whether it is the M&A market, real estate industry, or any other sector, due diligence has been made easy by virtual data rooms.
For instance, M&A deals involve funds in millions and billions, and nobody wants to take a chance. Buyers are concerned about every single detail related to the seller company so that they can avoid any future uncertainties.
On the other hand, sellers feel reluctant to provide their sensitive business information to bidders because of security threats. Data rooms can help both parties; sellers can organize their business data in virtual data rooms and provide customized access to different potential buyers according to the scope of the deal.
Buyers can request any particular document, while sellers can set privacy on data they don’t want to share with any particular buyer. Most importantly, sellers can add multiple buyers to the data rooms to boost their chances.
4. Data access privacy
As a business owner, you might want to set data access privacy. That said, if you don’t want your HRM department to access the company’s financial records, you can restrict its access. Similarly, if you don’t want your employees to have access to managerial-level information, you can easily set access limitations.
Apart from that, data room administration can set limits on downloading or printing documents. Management can define who and who can’t edit, modify, share, download, or print any document; this helps in controlling internal data leaks.
Digital data room is not only a reliable solution for safe and secure data storage, but it is also a complete package for businesses who prefer remote working. Data rooms ensure seamless collaboration between the organization’s employees and provide them with a highly secure platform.
Most importantly, a virtual data room can be easily integrated with your current organizational work setup. Not to mention, data rooms are surely one of the cost.