Intelligent Document Processing (IDP): Streamline Document Management

Intelligent document processing (IDP) is an advanced technology that enables businesses to capture and digitize data from various types of documents, such as invoices, contracts, and forms. IDP utilizes a combination of machine learning (ML), natural language processing (NLP), and optical character recognition (OCR) to automate data extraction and improve accuracy.

In today's digital world, where organizations deal with large volumes of data, IDP solutions have become increasingly important for businesses of all sizes to streamline their document processing workflows and improve overall efficiency.

This article will explore how intelligent document processing works, its benefits, real-world examples, and how IDP software can help improve the document workflow process.

The Importance of Intelligent Document Processing

According to Straits Research, the global IDP market was valued at USD 1035.81 million in 2021. It is projected to reach USD 6.38 Billion by 2027, growing at a CAGR of 35.4%.

As the business world becomes increasingly data-driven, unstructured data in the form of written text found in various documents, reports, and emails become more important. This data, however, is difficult to analyze and process without the right tools.

Intelligent Document Processing is gaining importance as it can convert unstructured data into structured data, allowing companies to extract valuable insights and make informed decisions. With IDP, businesses can efficiently and effectively process and analyze large amounts of unstructured data, giving them a competitive edge in today's data-driven economy.

What Can Intelligent Document Processing Software Do?

IDC solutions offer a range of powerful capabilities. They replace manual document processing by automating business processes to improve overall efficiency. From deciphering handwritten text to digitizing paper documents, here are some of the key things that IDC solutions can do:

• Decipher handwritten or typed text from scanned documents and images

• Extract data from various document types, including invoices, contracts, forms, and receipts

• Validate and verify data for accuracy and completeness

• Automatically classify documents based on their type, content, or other attributes

• Detect and correct errors in data or formatting

• Digitize paper documents and enable electronic storage and retrieval

• Integrate with other systems and workflows to streamline document processing

• Improve compliance and risk management by ensuring data is handled securely and confidentially

Where is Intelligent Document Processing Used?

Intelligent Document Processing has a wide range of applications across various industries:

1. Banking and Finance: IDP can help finance departments, banks, and financial institutions automate the processing of documents of various formats such as bank statements, invoices, receipts, or any other financial documents, saving time and reducing errors.

2. Insurance: Insurance companies can use IDP to streamline claims processing, underwriting, and policy management.

3. Healthcare: Using intelligent document processing, healthcare providers digitize and manage medical records, patient information, and insurance documents. It also helps improve patient care.

4. Legal: Legal firms can use IDP to process legal contracts, documents, and other paperwork automating repetitive tasks.

5. Government: Government agencies take advantage of IDP to process applications, forms, identification documents, or any other paper files.

6. Retail and E-commerce: IDP can help retail and e-commerce companies automate the processing of invoices, receipts, and other business documents.

7. Manufacturing: Manufacturers use IDP to manage orders, invoices, and other paperwork and to avoid manual data entry and processing.

8. Human Resources: HR teams manage employee records, contracts, and other document types using IDP.

Key Benefits of Intelligent Document Processing

IDP is essential in today's digital world, where businesses need to manage and process vast amounts of information quickly and accurately. It helps organizations streamline their document processing workflows, reduce errors, and increase productivity. With IDP, businesses can automate routine tasks and focus on higher-value activities, improving overall operational efficiency. Intelligent Document Processing offers several key benefits, including:

Cost Savings

IDP can significantly reduce costs associated with manual document processing, including labor costs, document processing costs, and the costs of errors and rework.

Increased Efficiency

Intelligent Document Processing streamlines document processing workflows and reduces time-consuming tasks, resulting in increased employee productivity and faster turnaround times.

Improved Accuracy

Machine learning algorithms and OCR technology can improve accuracy and reduce errors associated with manual document processing.

Enhanced Customer Satisfaction

IDP can improve the speed and accuracy of document processing, resulting in faster response times and improved customer satisfaction.

Increased Data Insights

Intelligent Document Processing software can extract valuable data from documents, providing businesses with actionable insights that can inform decision-making and lead to better business outcomes.

Reduced Human Error

By automating document processing tasks, IDP reduces the risk of human error and the need for manual corrections.

How Does Intelligent Document Processing Work?

IDP relies on artificial intelligence (AI) and machine learning (ML) algorithms to extract data from documents containing semi-structured or unstructured data. The technology combines optical character recognition (OCR), natural language processing (NLP), and ML to automate the capture, extraction, and classification of data from various document types.

Intelligent document processing begins by scanning or photographing documents, which are then converted into machine-readable text using OCR. The text is analyzed and processed using NLP algorithms, which can understand the context and meaning of the text. The system can then extract data from the text using machine learning algorithms, which can recognize patterns and make predictions based on previous examples and training data. This allows the system to extract information such as customer names, invoice numbers, or contract terms, and convert it into structured data that can be easily accessed and analyzed.

To extract structured data from unstructured documents, intelligent document processing solutions typically follow a sequence of phases. These include:

• Document acquisition: Scanning or photographing documents to create digital copies.

• Pre-processing: Cleaning and preparing the images for OCR.

• Optical character recognition (OCR): Converting the image to machine-readable text.

• Natural language processing (NLP): Analyzing the text to understand the context and meaning.

• Data extraction: Identifying and extracting relevant data from the text.

• Validation and verification: Checking the accuracy and completeness of the extracted data.

• Structuring and integration: Transforming the data into a structured format that can be easily accessed and integrated with other systems.

Intelligent Document Processing (IDP) vs Automated Document Processing (ADP) - Main Differences

Intelligent Document Processing (IDP) and Automated Document Processing (ADP) are both technologies that are used to automate document processing workflows. However, there are some key differences between the two.

Automated document processing is utilized to digitize paper documents, making them searchable and easily indexed within a database. However, intelligent document processing goes beyond mere digitization and indexing. It is used to accurately extract data and provide actionable insights. This way it elevates document processing to a higher level.

Here is the list of the main differences between IDP and ADP:

Intelligent Document Processing (IDP):

1. Relies on artificial intelligence and machine learning algorithms

2. Can handle a wide range of document types and formats, including unstructured and semi-structured data

3. Does not rely on predefined rules or templates, but rather uses ML algorithms to analyze and understand the structure and content of each document

4. Offers highly accurate and flexible processing capabilities that can adapt to changing document formats and layouts over time

Automated Document Processing (ADP):

1. Relies primarily on rule-based processing

2. Is suitable for processing structured documents with a consistent layout and format

3. Involves a set of predefined rules and templates that the system uses to identify and extract data from specific types of documents

4. May be less accurate and flexible in processing documents than IDP, and may require manual updates to its rules and templates over time

Intelligent Document Processing Software

Intelligent Document Processing software is becoming increasingly popular due to its ability to automate and streamline document processing tasks. There are many IDP software solutions available on the market, each with its own unique set of features and benefits.

DEPS is one such solution that has a proven record of successful implementations in different industries. It was developed to help companies avoid manual data processing and to facilitate building an easy and customizable document workflow process.

With DEPS, users can accurately extract information from unstructured documents and present it in easily accessible and searchable formats. It is capable of working with both scanned and digitized documents and allows users to find specific information and verify data with precision.

Key Benefits

Here are some of the most prominent benefits DEPS can offer:

• Full document lifecycle - DEPS document processing encompasses the entire document lifecycle.

• High operation precision - The platform is supported by AI components that are constantly improving to ensure the highest possible level of precision.

• Cost efficiency - Choosing pluggable open-source components ensures the most cost-effective solution.

• Speed of deployment - It can be easily integrated with other applications and the client's ecosystems, whether they are in the cloud, on-premises, or hybrid environments.

Use Case in Insurance Industry

Problem Statement

Application form processing is error-prone and requires significant human and manual efforts. Input data is in different formats, both handwritten and printed, including images, PDF documents, and docx.

Solution Proposed

• Robotic email processing and attachment extraction were enabled, with document classification performed based on format.

• The documents underwent pre-processing to improve the quality of the images through techniques such as blurring, smoothing, and binarization.

• Post-processing is enabled to ensure maximum accuracy, including data correction with type-based validation, cross-field validation to ensure that all required fields are completed, and check box validation across.

• Optical Character Recognition, Optical Mark Recognition (OMR), Intelligent Characters Recognition (ICR), and Google Vision API were all applied.

Achieved Results

• Optimized process workflow for fast and consistent document intake

• A higher level of accuracy in operation with faster processing speed

• 4,000 forms processed monthly

Takeaway

IDP has revolutionized the way businesses process and manage large amounts of unstructured data, enabling them to automate time-consuming tasks and reduce errors. Intelligent document processing systems use advanced technologies such as ML and NLP to extract and analyze data from various sources, including emails, invoices, contracts, and more.

In today's digital world, where data is king, intelligent document processing has become an essential tool for businesses looking to optimize their operations, improve customer experiences, and stay ahead of the curve. It is crucial to recognize the value of IDP and invest in the right solutions to achieve long-term success.