Intelligent Document Processing (IDP) is one of the most essential tools in this digital era. This technology is not only transforming the way businesses operate but also making their daily processes significantly easier. In their daily operations, businesses do not just handle one or a handful of documents; rather, they manage a large volume of paperwork. Furthermore, if these documents contain unstructured data, the complexity increases even further.
As a result, businesses cannot rely on manual management processes to handle such documents efficiently. After all, we know that manual methods not only take hours to process a single document but are also highly prone to errors. Additionally, they come with high costs due to the need for extensive resources.
To address these challenges, businesses must seek out tools that enhance efficiency. This is where Intelligent Document Processing (IDP) comes into play. Specifically, IDP helps businesses automate document management, streamline workflows, and provide in-depth document analysis—all in a short time with high precision.
In this article, we will take a deeper look into how Intelligent Document Processing (IDP) improves business efficiency and, more importantly, how to choose the best IDP solution based on specific business needs.
Understanding Intelligent Document Processing (IDP)
Intelligent Document Processing (IDP) is an advanced technology that automates document processing by extracting, analyzing, and organizing data from various document formats, including structured, semi-structured, and unstructured documents. Consequently, using IDP for automated data processing takes significantly less time and effort. This is because IDP integrates several key components, such as Optical Character Recognition (OCR), Natural Language Processing (NLP), and Machine Learning, which work together to enhance accuracy and efficiency.
1. Optical Character Recognition (OCR): OCR is used to extract information from documents, including printed, handwritten, and digital images, converting them into digital data that can be modified and searched.
2. Natural Language Processing (NLP): NLP is able to understand and interpret information from documents. NLP helps categorize data based on the context of the documents.
3. Machine Learning: Machine learning is used to extract and identify specific data from a variety of documents (structured, semi-structured, and unstructured). It provides high precision in data extraction.
How Intelligence Document Processing (IDP) Work
There are a few steps of how IDP works:
1. Document Ingestion
Once you upload your documents, whether physical or digital, IDP will capture all of these documents that you upload and convert them into digital data that the system will recognize and understand.
2. Data Classifications
IDP will classify the document based on the context. It will analyze the structure and content of the document and determine whether it is an invoice, a purchase order, or another type of document.
3. Data Extraction
After the document has been classified, the whole data of the document will be extracted, such as personal information, date of purchase, amounts, and other relevant data.
4. Data Validation
The extracted data will be checked against the database to improve accuracy and consistency. This phase prevents any errors or missing information.
5. Integration & Automation
IDP can integrate with existing systems, accounting, or ERP platforms, making it easier for businesses to automate document processing and improve workflows.
Use Case Business Sector for Intelligent Document Processing (IDP)
IDP is leveraged across all business industries to automate and streamline their operations. Here are some use cases.
1. Financial Services
Financial institutions mostly handle large volumes of invoices, bank statements, and transaction records. With IDP, businesses can process these documents quickly and accurately.
2. Insurance
Insurance companies use IDP to streamline the claim processing, identify fraud in the policyholder, and extract data from medical documents.
3. Human Resources
IDP helps HR teams by automatically extracting and categorizing resumes of candidates, employment contracts, certifications, and employee surveys.
4. Retail
The retail business uses purchase orders, delivery orders, and invoices in their everyday operations. Using IDP, retail can save time by automating document management, which increases company and vendor satisfaction.
5. Government
IDP is used to speed up the process of administrative data of citizens and automated tax processing.
Conclusion
That is the explanation of how Intelligent Document Processing helps business efficiency. With its advanced technology, IDP handles a large volume of business documents, automates the process, and exports them into existing systems, or ERP platforms.
To choose the right IDP, Fintelite can be the best tool. Fintelite’s IDP can process documents and detect fraud quickly and accurately. Fintelite can also provide the feature based on business needs, allowing businesses to optimize workflow and save cost.
