File versioning is a technique commonly used by software developers to retain the history of a digital file. This provides the ability to roll back changes to a previous point in history when the software was known to run bug-free; but versioning is not strictly for developers.
Writers can retain drafts of copy. Designers can retain the history of art files. Account folk may keep a record of strategy documents, all with descriptions of what each version contains, without needing to save multiple copies that simply clutter a server.
Knowing that files can be rolled back to any point in history is a good feeling. It can mean the difference between minutes and days when needing to revert a file. How could you use versioning? The folks at lifehacker.com can help get you started.
Note: Windows Vista Business and Windows Vista Ultimate users now have native support with the new shadow copy feature. For the rest of us and those in need of a shared server-based solution, I recommend Subversion.