Intelligent Document Processing (IDP): The Future of Data Management
Tuesday, December 5, 2023
In the modern digital landscape, organizations are inundated with vast quantities of data and documents. Managing and processing these documents manually can be tedious, susceptible to errors, and expensive.
To tackle this challenge, intelligent document processing (IDP) has emerged as a powerful technology solution. As highlighted by a recent McKinsey & Company study, IDP seamlessly blends the analog and digital realms, empowering organizations to do more with their data.
What is Intelligent Document Processing (IDP)?
Intelligent document processing (IDP) is a cutting-edge digital solution that uses artificial intelligence (AI) and machine learning (ML) algorithms to automatically extract, classify and analyze data from documents.
Unlike the traditional optical character recognition (OCR) and robotic process automation (RPA) technologies, which have their limitations, IDP takes document processing to the next level. Leveraging sophisticated intelligent automation technology, it amplifies the accuracy and efficiency of processing, bridging the gap between analog and digital realms.
The brilliance of IDP lies in its capability to utilize artificial intelligence (AI) to meticulously extract information. It can adeptly read, recognize, and understand varied texts and intricate structures found in a vast array of organizational documents, from templates to intricate forms, and even complex, hand-written documents.
Benefits of Intelligent Document Processing
IDP brings a wealth of benefits, including:
- Faster Processing: IDP can process documents much faster than manual processing, reducing the time it takes to complete tasks
- Improved Accuracy: IDP algorithms can learn and improve over time, reducing errors and improving accuracy
- Enhanced Compliance: IDP can help organizations comply with regulations and standards by ensuring that data is captured accurately
- Cost Savings: IDP can help organizations save money by reducing the need for manual labor and increasing efficiency
- Scalability: IDP can easily scale with an organization’s growth, making it an ideal solution for companies of all sizes
- Enable Remote Work: IDP technology provides a virtual, cloud-based system of data management accessible to remote employees wherever they are working
- Improve Decision Making: With your data and information easily compiled, extracted and reported, you gain visibility and insight into a wide array of business metrics
- Ensure Business Continuity: Remotely-accessible and easily extracted business data is an added source of resiliency against unforeseen disruption
Essential Aspects of a Robust IDP Platform
The core of IDP lies in its ability to capture, process, classify, validate, and embed data from documents into various applications. A standard sequence for an advanced IDP solution includes:
1. Document Ingestion: ingestion of a document, regardless of it being in electronic or traditional paper format
2. Image Refinement: enhancing the quality of the document image to ensure it’s optimized for processing
3. Indexing & Categorization: texting mining and ML algorithms ensure that each document is correctly identified and classified based on its type
4. Data Extraction & Validation: a trained IDP platform examines documents, applying set validation rules, to extract relevant information and insights; this stage not only helps in gleaning data but also aids in organizing and categorizing the document
5. Human-in-the-Loop Verification: recognizing the irreplaceable value of human insight, IDP platforms facilitate human intervention; through user-friendly interfaces, humans can validate the data extracted, which not only ensures precision but also further refines the ML model’s accuracy, continually enhancing its learning
6. Data Integration: once the data is meticulously extracted and validated, it is seamlessly integrated or dispatched to various systems or decision-making tools, such as ERP, CRM, or any relevant decision model
Ways Organizations Can Leverage IDP to Save Time & Money
IDP can be used in various industries, including healthcare, finance, insurance, and manufacturing. Here are some common automation use cases for IDP:
- Invoices: processing AP invoices, reducing manual data entry, and speeding up payments
- Contracts: managing contracts by extracting relevant information and storing it in a structured format
- Claims: processing insurance claims to reduce errors and speed up adjudication
- Employee Files: processing HR documents, such as resumes and job applications
At ISSI, we frequently work with clients to develop and implement IDP solutions. IDP can significantly reduce the time spent processing documents, saving money by reducing labor costs associated with manual data processing, as well as reducing the risk of costly human errors.
IDP vs. Advanced Capture
Experienced professionals and industry insiders might raise an eyebrow at the mention of IDP, seeing it as a modern spin or “Gartner-inspired makeover” of the long-standing “advanced capture” technology.
This technology has been a staple in software platforms like Kofax TotalAgility for over two decades. However, it’s worth noting that while IDP encompasses OCR and data extraction from semi-structured or unstructured documents such as invoices and checks, it’s more evolved. IDP has the capability to understand context, recognizing that “$500” and “five hundred dollars” are the same.
Your IDP Partner
Partnering with ISSI offers an unparalleled opportunity to be at the forefront of digital transformation. At ISSI, we are committed to fostering innovation, ensuring that our customers benefit from the latest advancements in intelligent document processing. Together, we can navigate the challenges of the modern digital landscape, delivering efficient, precise, and cost-effective solutions.
Reach out to our team to learn how IDP can revolutionize your business processes and redefine the boundaries of what’s possible in data management.