Leveraging technology to support handling workload becomes necessary, for any type or size of business. Whether you run an eCommerce business, blockchain startup, retail shop, or financial organization, implementing AI-based systems is key to staying relevant in the global market.
Intelligent document processing (IDP) is a breakthrough in developing an efficient working environment and supporting employees’ productivity. Companies can save countless hours by automating repetitive tasks and building fast, accurate, and safe systems for employees and clients.
Many small businesses may still be doubtful about implementing IDP software in their offices as it may be costly. But, if you aim for long-term success, IDP software is definitely worth investing in.
Below, we compiled the essentials of intelligent document processing and its benefits to help you understand better and wash away your doubts. Shall we get started?
What Is Intelligent Document Processing (IDP)?
Intelligent Document Processing (IDP) is an AI-powered, cloud-based, and automated technology to process documents from various formats and sources. IDP uses Natural Language Processing, Image Recognition, Predictive Modeling, and Deep Learning in organizing unstructured data.
The advanced technology of IDP systems allows organizations to easily and quickly organize images, words, pdfs, online forms, paper, and more. The key capability of IDP is that it can mimic human abilities in sorting, segmenting, and processing documents.
With the implementation of Machine Learning and language processing, IDP can see the context of any document. It can be used in any workflow automation solution as it is very helpful for document contextualizing and processing.
How IDP Works
The leading actor behind intelligent document processing is the processor. It must have advanced and knowledgeable systems that can handle significant responsibilities in processing documents from multiple sources and formats.
Documents will undergo checking stages by a processor. It will check whether there are errors and unmatched data to be fixed. A processor will also ensure that the data from various sources are present and in order.
As IDP carries a significant role, it must have a high-level attention-to-detail system. Companies can benefit significantly by utilizing the systems in their working funnels. IDP can cut countless times by automating repetitive and time-consuming tasks, which makes it worth every investment.
For example, banks can use IDP to support their employees. They can check and assess loan applicants’ data to see whether or not they’re eligible to get a loan. Automated systems and technologies like AI and BPM allow financial employees to finish tasks faster, and they can allocate more time to more demanding tasks.
IDP Stages and Components
In completing high-responsibility tasks, IDP has some stages and components that each play a crucial role. Companies and organizations that invest in utilizing IDP must be knowledgeable about them to make the best use of it.
The data collection process belongs to the pre-processing stage. A company may have digital and paper-based data sources, so the first task is to make the data source equal.
Most IDPs have built-in features to connect with other business tools, such as scanners. So, companies can integrate their scanner with IDP software to automatically convert physical copies into digital formats.
After collecting and gathering the data from digital documents, IDP software will read, identify, and clean up the data.
It may perform several tasks, including Optical Character Recognition (OCR). Some examples of OCR processes are extracting text from images and image enhancement.
3. Classification and data extraction
The next stage is data classification. Implementing natural language processing algorithms in IDP software helps analyze data elements and takes only relevant ones.
For example, in assessing loan applications, the IDP system identifies personal information on the applicants, including names, addresses, tax returns, and credit history. It analyzes and decides whether or not applicants are eligible to get the loan.
When the classification process is done, IDP software extracts the crucial data using various methods. The method depends on what data needs to be extracted, such as template-based extra traction and rules-based extraction.
Machine Learning is one of the most used methods to extract data. It automatically takes out and gathers crucial data from pre-processing and classified documents. Companies can store the extracted data for further necessity.
4. Data validation
IDP software automatically validates the previous process’s relevant data according to the systems. The system may also correct technical mistakes, such as fixing typos or misspellings and adjusting documents to specific formatting. Companies can also take the extra mile by checking and validating data manually to ensure that everything included is accurate.
Companies can integrate IDP software into other business-related applications, such as ERPs and document management software. It can also assist users in delivering insights along with the document.
Integrating IDP and other business programs helps quicken operations and make accurate decisions. Moreover, IDP software may also help companies to predict results for particular tasks, such as making loan approval.
6. BI and analytics
The data processed with IDP software can support and enrich Business Intelligence (BI) and analytics. As data management solutions, BI and analytics can collect data from IDP software to be analyzed further and present the results using statistics. Integrating IDP software, BI, and analytics systems helps businesses make better and more accurate decisions.
Core Benefits of IDP
With sophisticated technology, IDP has many benefits for companies from various fields, such as financial institutions, health organizations, transportation agencies, and supply chain companies.
Those utilizing IDP software can achieve over 90% accuracy in processing documents. Not stopping there, you will see more benefits of implementing it. Below we round up four core benefits of adjusting Intelligent Document Processing software in your digital workplace.
1. Boost efficiency
It’s undeniable that using IDP software can boost workflow efficiency. Employees can avoid repetitive work that takes them a lot of time to finish.
IDP software helps automate repetitive work and allows employees to be more productive. They can allocate more time to do other significant tasks and get more jobs done by the end of the month,
2. Enhance data quality and usability
IDP software helps companies enhance data quality by gathering data from various sources and taking only the relevant ones. It also can identify, analyze, and process data automatically and accurately.
Moreover, IDP software can take care of trivial mistakes, such as correcting misspellings and adjusting the data into specific formats. While employees can take hours to finish the job, IDP software helps them save countless times by making everything automatic and efficient.
3. Promotes and scales automation
IDP software is powered by Artificial Intelligence, Optical Character Recognition (OCR), Natural Language Processing (NLP), Computer Vision (CV), and Robotic Process Automation (RPA). Such qualities become a solid reason IDP software is worth investing in for companies.
They can boost company credibility and professionalism by promoting automated workflows. Companies can also integrate IDP software with existing tools to support their business. Best of all, it helps them stay relevant and ahead of competitors in a fast-paced digitized society.
4. Improve compliance and security
The sophisticated technology supporting IDP software provides a secure environment to process and store data, especially those related to clients’ personal information.
IDP software has protection algorithms that protect processed and stored data against unauthorized access.
The advent of technology has provided businesses with sophisticated machines to assist their job and lessen the burden on their shoulders. They can adjust automated systems to handle work tasks and provide instant responses to customers.
Intelligent document processing (IDP) is worth investing in to catch up to more prominent competitors. It can be an excellent solution for any company to satisfy their customers and grow their business.
Adela Belin is a content marketer and blogger at Writers Per Hour. She is passionate about sharing stories with the hope to make a difference in people’s lives and contribute to their personal and professional growth. Find her on Twitter and LinkedIn.