8 Ways Intelligent Document Processing Transforms Business Processes

Intelligent Document Processing clears a pathway to transformation by enhancing efficiency, improving accuracy, and fostering data-driven decision-making. Explore real-world examples and unlock the full potential of your business in its day-to-day activities.

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
8 Ways Intelligent Document Processing Transforms Business Processes

Business data is a powerhouse of valuable information essential for devising strategies and deploying effective solutions. However, much of this information is embedded in raw data in unstructured formats like emails, images, and PDFs of varying layouts.

Intelligent Document Processing (IDP) platforms combine the capabilities of Optical Character Recognition (OCR) with Artificial Intelligence (AI) and Machine Learning (ML) algorithms to overcome these challenges and help businesses automate their end-to-end document processing workflows by integrating with existing systems.

According to Zscaler’s 2024 AI Security Report, enterprise-level use of AI and ML skyrocketed by 595% from April 2023 to January 2024. AI-enabled IDP’s advantages have significantly contributed to this widespread adoption as enterprises experience enhanced efficiency across all document-centric processes.

This blog discusses what is intelligent document processing (IDP), its use cases, and how IDP can transform business processes. 

What is Intelligent Document Processing (IDP)? 

Intelligent Document Processing (IDP) is an automation technology that integrates Optical Character Recognition (OCR) technology with AI and ML algorithms to automatically capture data from various formats. 

The IDP tool processes unstructured, semi-structured and structured documents, extracts valuable information, validates the data with existing databases, and converts them into a standardized format for analysis and further processing. 

IDP has found growing applications across industries, from resume screening and employee onboarding in Human Resources to inventory and purchase order management in Transportation & Logistics.

Use Cases of Intelligent Document Processing across different industries

a. Banking

Lending institutions use IDP platforms to expedite loan application processing by capturing relevant data from borrowers’ bank statements, payslips, identity, and address proof documents. 

These platforms also provide insights into borrowers’ creditworthiness for accurate calculations of loan amount. 

b. Logistics

Businesses capture data from invoices, purchase orders, receipts, bills, and purchase slips to determine inventory levels and shipment details. These insights help optimize inventory management, eliminate delays, and reduce overstocking expenses.

c. Healthcare

Healthcare organizations capture data from patient health records, reports, and claims documents to provide personalized treatments and accelerate claim approvals. Moreover, accurate data ensures compliance with HIPAA and The HITECH ACT, preventing regulatory fines.

Suggested Read: A Comprehensive Look at Intelligent Document Processing Use Cases Across Different Industries

How Intelligent Document Processing (IDP) Transforms Business Processes? 

IDP addresses several enterprise-level challenges and helps reshape traditional document processing practices for improved overall operational efficiency.

1. Improve efficiency

1.1 Problem

Manual data entry and validation processes are time-consuming and error-prone, impacting employee efficiency and productivity and restricting their concentration on higher-value tasks.

1.2 Solution

IDP helps businesses automate repetitive and mundane tasks, including data extraction, validation, and analysis, improving overall operational efficiency. The software adapts to different document formats and extracts data without human intervention.

After extraction, the software performs the validation checks and sends extracted data to respective team members for final review. 

1.3 Benefits

Businesses can automate end-to-end document processing workflows using IDP, streamlining business operations and reducing data processing times. 

For instance, BiagiBros, a US 3PL warehousing company, automated shipment notifications using Docsumo. Processing unstructured bills of lading was a challenge, but using Docsumo's intelligent categorization and validation, BiagiBros saved time and improved efficiency. 

2. Upgrade on accuracy

Upgrade on accuracy using IDP

2.1 Problem

Manual data extraction is prone to errors. Information misinterpretation, spelling, and transcription errors lead to inaccuracies and inconsistencies.

2.2 Solution

Businesses can reduce errors and ensure accuracy by automating data extraction using Intelligent Document Processing (IDP) tools. IDP platforms integrate OCR with AI and ML algorithms to extract data accurately without human intervention. 

These tools have robust in-built validation processes that verify the extracted data against pre-defined checkpoints, available databases, and external sources. Hence, most IDP tools offer an accuracy rate of over 99%.

2.3 Benefits

Accurate data leads to reliable decision-making. IDP retrieves accurate and dependable information and insights for businesses to make data-driven decisions to maximize growth. 

3. Boost agility

Boost agility on accuracy using IDP

3.1 Problem

Businesses using manual data extraction take days or weeks to extract particular information when processing large documents. This prevents them from adapting to rapidly evolving market changes and consumer behaviors.

3.2 Solution

Unlike manual data extraction, Intelligent Document Processing workflows swiftly extract data from documents, reducing the processing time to minutes or seconds. This quick access to data ensures quicker responses and adaptability to changing trends and patterns in the customer and industry landscape.. 

3.3 Benefits

By staying agile, businesses can identify untapped growth opportunities and outpace competitors. 

4. Unlock data-driven insights

Unlock data-driven insights using IDP

4.1 Problem

Data-derived insights are critical assets. However, over 80-90% of this data is locked in unstructured formats like emails, images, and PDFs, making it difficult for employees to sift through and find relevant information. 

4.2 Solution

IDP tools extract and analyze data using AI and ML algorithms to unlock hidden trends and patterns. This analysis can help businesses reduce losses, unlock growth opportunities, and mitigate risks. Moreover, advanced NLP algorithms can understand the context and perform sentiment analysis on customer data. 

4.3 Benefits

By better understanding customer behaviors, businesses can create targeted marketing strategies. Furthermore, they can customize their products and services according to customers' expectations and preferences, increasing customer satisfaction and widening the customer base. 

Data-driven insights help businesses make smarter decisions and gain competitive advantages. 

5. Improved access

5.1 Problem

Data locked in disparate sources results in efficient collaboration and complete data analysis. A Worldwide Business Research Survey of 250 financial leaders shows that 85% of IT staff spends 25-50% of their time helping other employees access data. 

5.2 Solution

Data extraction using IDP technology collects information from diverse sources, extracts relevant data, and converts it into a standardized digital format easy accessibility. With data stored in a centralized location, businesses can ensure efficient information sharing between team members. 

5.3 Benefits

Businesses can easily share data with stakeholders, investors, and employees. Decreased access requests reduces the IT team's workload, and employees don't have to waste time waiting to access the data. 

6. Enhance customer experience

Enhance customer experience using IDP

6.1 Problem

Customers disapprove of process delays and expect quick business responses. However, it is difficult for employees to analyze large datasets and extract relevant information manually. 

For instance, a distressed policyholder requesting for a claim would expect approval in a day. But it's difficult for institutions receiving thousands of applications to revert in a day. This leads to poor customer experiences and increases customer churn rates. 

6.2 Solution

Unlike manual data extraction, IDP platforms can facilitate faster claim processing time by capturing the required data in less than 30 seconds. Enterprises can process multiple documents simultaneously and still extract data in seconds. This reduces processing time, improving customer satisfaction and customer experience. 

“With Docsumo’s help, we have been able to automate invoice processing, resulting in lower turnaround time and better customer experience,” said Jussi Karjalainen, Founder & Managing Partner of Valta Technology Pty Ltd.

Moreover, NLP chatbots in IDP tools can engage with customers and respond to simple queries. Meanwhile, employees can retrieve accurate information from knowledge databases, handle complex inquiries, and serve customers better. 

Additionally, businesses can optimize customer experience with intelligent data insights into previous customer interactions. 

6.3 Benefits

Businesses can improve customer communication as IDP ensures faster and more accurate responses. Moreover, employees can devote adequate time to solving complex customer issues by automating repetitive tasks. This significantly increases customer loyalty and satisfaction. 

7. Reduce costs and improve compliance

Reduce costs and improve compliance using IDP

7.1 Problem

Hiring manual labor and storing data in its physical form increases operational costs. Moreover, inaccuracies in manual data extraction can lead to noncompliance penalties, further increasing business expenses.

7.2 Solution

Intelligent document processing can be used across industries to reduce costs by automating document processing and eliminating the need for human intervention. IDP platforms also automate compliance management by ensuring compliance with industry-specific regulations such as GDPR, HIPAA, and SOC-2. 

Additionally, by investing in IDP solutions, businesses can store documents on cloud servers, reducing infrastructure management costs and increasing data security. 

7.3 Benefits

Although software investment has high upfront costs, it is cost-effective in the long run as it helps businesses save significantly with efficient resource allocation, cloud storage, security, and compliance. 

Adhering to industry standards helps businesses avoid legal and financial noncompliance, build trust, and maintain their reputation.

8. Increase security 

8.1 Problem

Organizations should have standard security protocols to protect sensitive data against cyber threats, phishing attacks, data breaches, and internal threats. Cyber attacks are getting sophisticated, and ensuring data security is a serious challenge. 

For instance, Identity Theft Resource Center’s 2023 data breach report shows a 78% increase in data compromises compared to 2022 and that healthcare and financial services were the most affected industries in 2023. 

Most importantly, these security issues can lead to reputational damage, customer loss, regulatory fines, penalties, and financial losses for businesses.

8.2 Solution

Most IDP solutions offer cloud computing, helping businesses store document data on cloud servers. Cloud storage enhances and assures security compared to on-premise servers. Additionally, IDP tools have advanced security features such as role-based access, encryption, and two-factor authentication to safeguard sensitive data. 

8.3 Benefits

Businesses can ensure security by protecting their data using strong passwords and encryption features in IDP. 

This protects data against unauthorized access, potential data breaches, and cyber attacks, preventing losses caused by non-adherence to legal and financial regulations.

Conclusion: Transform Business Processes Using Intelligent Document Processing

Leveraging AI and ML capabilities, IDP platforms transform business processes by enhancing precision, increasing data security, ensuring compliance, and improving customer experience. Investing in a reliable IDP solution also proves cost-effective in the long run, as actionable insights derived from data help build a more efficient and productive business model.

Docsumo’s IDP has robust AI and ML algorithms that extract data from various documents including invoices, contracts, bank statements, purchase orders, health records, etc. Its pre-trained API models efficiently capture data and flag errors and inaccuracies, ensuring a 99%+ accuracy rate. 

Furthermore, it seamlessly integrates with other automation solutions, ERPs, CRMs, and accounting software solutions. You can streamline your business operations while improving productivity by 10X and reducing operational costs by 60-70%.

Transform your document processing workflows and business operations by signing up for a free trial of Docsumo

FAQs

1. What are the benefits of using intelligent document processing? 

The main benefit of using IDP is that it automates repetitive and mundane business tasks, saving time and costs. Other benefits include higher data accuracy (95-99%), increased data security, compliance management, and improved customer experience. 

2. How to choose the best IDP solution for my business? 

Some factors to consider while choosing the IDP platform are accuracy rate, security features, technology employed, capability to process different document types, intuitive UI, pricing models, and compliance with industry-specific regulations and laws. Moreover, it should cater to business-specific requirements and needs. 

3. What does intelligent document processing do? 

Intelligent Document Processing (IDP) automates manual data entry by automatically capturing relevant data from unstructured, semi-structured, and structured documents. It also analyzes the data and provides insights that can drive business growth. 

No items found.
Suggested Case Study
Automating Portfolio Management for Westland Real Estate Group
The portfolio includes 14,000 units across all divisions across Los Angeles County, Orange County, and Inland Empire.
Thank you! You will shortly receive an email
Oops! Something went wrong while submitting the form.
Written by
Ritu John

Ritu is a seasoned writer and digital content creator with a passion for exploring the intersection of innovation and human experience. As a writer, her work spans various domains, making content relatable and understandable for a wide audience.

By clicking “Accept”, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts. View our Privacy Policy for more information.