Collections are a folder-esque way of organizing files. But unlike a normal folder, files can be in many collections. Assigning files to collections is a method of organizing files that’s similar to folders.
Because files can exist in multiple collections, this can be a more effective method of sorting files.
For example, you can create collection folders for files relating to the Dashboard Interface and the Authoring Interface. You can then assign files to these collections, and even have files exist in both collections: