In the first part of this series, we gave you a broad overview of exactly what a Virtual Data Room (VDR) actually is, as well as its many features and uses for a variety of today’s businesses. In this second part of our series, we are going to examine further why many businesses are making the decision to store their sensitive company information within a VDR (also known as a corporate repository) over some other, less expensive options available today.
Corporate Repository Uses
Although most of us are trying to use less of the physical form of it, paperwork is simply a part of doing business. But with so much of it being transferred from one person or department to another, it’s important to implement a document retention and management system to remain organized, and in some cases, even legally compliant. But, the good news is that a VDR can serve as this backbone of these processes.
Corporate repositories can be used by a variety of departments for a host of different purposes, such as:
- Customer Service: Store customer requests and issues in one convenient location.
- Expense Tracking: Serves as the location for information regarding cost tracking, key financial information and profit/loss statements.
- Project Management: The development team can use the repository as a place to track progress on projects as well as store any relevant intellectual property.
- Human Resources: Some of the most confidential information is housed within the HR department. A VDR keeps track of hiring budgets, employee contracts, and all HR-related litigation information.
Virtual Data Room Benefits & Consequences
There are a number of benefits to utilizing a VDR, such as:
- Simplified HR processes
- Due diligence preparation
- Audit organization
- Organized business processes
On the other end of the spectrum, the consequences for failing to house corporate documentation properly can have a devastating impact on an organization. Some of these unfortunate outcomes include:
Data Breaches: How can we forget the infamous Ashley Madison security breach? This and many other recent security breaches showcase the legal, financial and reputational damage a company can experience due to lack of proper security of client information.
Missed Opportunities: In today’s fast-paced business environment, transferring sales contracts and information from one person to another via email and other, less secure channels just doesn’t cut it. Potential investors, customers or buyers want information right at the moment they are ready to make a decision, and a corporate repository helps them do just that. Due diligence can happen at the same time, with multiple parties sending and receiving information and all within a secured environment. Without a VDR, an organization may decide to go with another, more prepared company.
Wasted Time and Resources: Document management takes time and resources, but more so if you have all those documents scattered amongst spreadsheets, file cabinets and free online storage services. Most businesses would agree the time and energy being used to maintain these items can get excessive.
We think Ali Bauerline, CFO and Co-Founder of Inogen, Inc said it best when she was asked when someone should start using a SecureDocs Virtual Data Room:
“I wish we would have started using it much sooner, because we went through multiple rounds of financing as a private company, and it would have made my life so much easier to have something like SecureDocs in place.”
Don’t wait to experience the many benefits a corporate repository like SecureDocs Virtual Data room can provide. Contact us today to see how we can help you organize your business with a VDR that works for you from startup to exit.