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4 Essential Aspects of Why IDP is Critical to Digital Transformation

by | Sep 2, 2021

Intelligent document processing (IDP) is a critical step in the move toward digital transformation. One of its many benefits includes converting unstructured and semi-structured data into a structure that artificial intelligence (AI) or machine learning (ML) can work with. This is essential for building platforms capable of deep learning and completing complex tasks like understanding natural language.

What is the business value of digital transformation?

The digital transformation process is about capturing, analyzing, and leveraging data to drive business outcomes. With digital transformation, it becomes possible to identify what customers want and need with data extraction from the information they have already provided. It also makes it possible to better identify more innovative ways of running a business.

What is Intelligent Document Processing?

IDP is about using AI for document analysis. IDP systems harness technology like optical character recognition (OCR) to convert documents like PDF files or scanned hard-copy images into searchable data records. A user can then use the documents to glean relevant information for many use cases, including creating invoices, writing reports, or in-depth analysis.

How is IDP a critical step in the digital transformation process?

The first step in digital transformation is collecting and converting data into a structure that AI or ML can work with. This allows for a more automated, inexpensive conversion of unstructured and semi-structured data into a structured form, making them easy to manipulate through artificial intelligence algorithms.

What are the benefits of IDP?

IDP allows organizations to leverage the power of machine learning and artificial intelligence (AI) to extract and validate data. It also automates several processes for companies like generating taxonomies, and ontologies to help classify documents.

When combined with other systems such as enterprise search engines that provide powerful text analytics capabilities on top of large volumes of unstructured content, intelligent document processing enables an organization’s workforce to make better decisions faster than ever before.

This type of technology has been proven helpful across many industries, including:

  • healthcare to speed up medical research by helping physicians find relevant articles quickly
  • banking to automate compliance processes
  • manufacturing to improve quality control
  • retail to make supply chain management easier and quicker
  • government agencies like the Department of Defense which uses this technology for cybersecurity purposes
  • education institutions that use this software as part of its distance learning programs

Efficiency.

IDP speeds up a company’s business processes and operational efficiency by converting large quantities of semi-structured data into a structured form that machine learning algorithms can work with, which is faster and more accurate than manual methods for scanning documents. This process dramatically reduces the time required to do things like sifting through a pile of boxes of paper records to find a specific record or searching manually through a database to find a particular document.

 

IDP also helps a business stay responsive to the customer, regulatory, and operational needs by making it easy to process a wide variety of content. This includes a variety of formats, languages, and data types.

Security.

IDP protects the company’s intellectual property by converting unstructured data into a format that can be stored in a repository protected from unauthorized access or use without a legal right to do so. IDP also reduces risks associated with regulatory compliance failures related to a company’s document retention and archival processes.

Innovation.

IDP provides a foundation for innovation in a company’s core value chain that is efficient for the organization while also being scalable. It helps a company stay competitive by identifying new opportunities or threats in a changing environment. Extracted data can be easily combined with other sources of information in a wide variety of ways to drive new insights, ideas, and innovative solutions.

Cost savings.

IDP helps companies reduce the need for employees to complete labor-intensive processes such as document management and document extraction. By implementing IDP, employees can focus on more human-centric tasks and complete them quicker, saving companies expenses when it comes to labor costs.  

How to implement an IDP solution in your organization.

Before a company can begin to think about implementing a document processing system, a digital transformation strategy needs to be put into place. This will help determine which technologies are needed and their potential effect on the business.

The next step is to find a software vendor capable of providing an IDP solution with all its capabilities so that it can meet a company’s needs.

The vendor should be a solution provider, not a reseller. This will help customers find the right system and tools for their organization’s specific business situation without being constrained by a one-size-fits-all approach.

Book a demo with Capacity.

Capacity is an AI-powered support automation platform with expertise in using AI for document analysis.

It connects your entire tech stack to empower users to access complex documents and extract data at the click of a button.