Intelligent Document Processing (IDP) refers to technologies that classify, extract, and convert data from one format to another. Specifically, IDP works with unstructured data, which is found in text, video, and graphic files. This data does not have a pre-defined pattern for storing information, making it difficult for applications to use the data.
Structured data such as spreadsheets and databases are much easier for software programs to process because each data point’s location is pre-defined. By using advanced technologies such as artificial intelligence and machine learning, IDP converts unstructured data to be stored in pre-defined structures or templates that other applications or processes can use.
How does IDP work?
IDP solutions process a range of document types, extract the information, and convert it into usable data. The process involves the following steps:
- Pre-processing. During this step, IDP solutions assess documents and apply techniques to improve the quality if necessary. If the data being extracted is of poor quality, its usefulness is limited.
- Classification. Not every data point in a document has value. Think about the number of pages that are contained in loan documents or an individual’s medical history. Using artificial intelligence and machine learning, IDP can identify which parts of a document should be extracted.
- Extraction. In this step, IDP uses various technologies to extract specific data and place it in a structured format that multiple applications can process.
- Post–processing. Extracted data is validated using advanced technologies and, when appropriate, alerts staff to the need for further validation. This feedback helps the technology improve its validation process, reducing future intervention.
The use cases for IDP range from transaction reconciliation to invoice processing. Although the primary markets have been in the healthcare and financial sectors, retail and manufacturing are looking at the benefits of IDP. The demand for intelligent document processing solutions continues to grow.
What are the benefits of IDP?
Intelligent document processing is another step on the road to digital transformation. It enables companies to operate in more agile and cost-effective ways. Whether it is providing access to dark data or reducing lengthy documents to their essential value, IDP offers businesses a path to improved customer experience.
Productivity.
Moving data from one document to another has been a manual process. Data entry staff spend hours entering data from a text document into a database. The effort is time-consuming and mind-numbing. It is also prone to error as operators become disengaged from the process. How quickly and accurately the data is processed depends on the individual.
With IDP, the workflow no longer involves employees unless data validation is required. Instead, the data is converted to a structured format that is accessible by other applications. After the data is converted, it is available for use across the enterprise. Staff do not have to search for information because it is available from a centralized repository of structured data.
Cost savings.
Adopting IDP can result in improved utilization of existing resources. Employees can be re-assigned to higher-level tasks to enhance the customer experience. Because IDP operates faster with fewer errors, more units of work can be completed in less time. If the process operates 24/7, the operational efficiency increases. Whether it is lower labor costs or higher operational efficiencies, implementing an IDP solution can improve workflows resulting in greater cost savings.
With machine learning, IDP solutions acquire more information about how to classify and extract data from various sources. As the solution learns from its experiences, it becomes more effective. Improved performance means further cost savings.
Scalability.
IDP is platform (and process) independent. It can operate in an environment where different document types and formats coexist. Because the operating environment does not constrain it, IDP can scale as an organization grows. Adjusting the solution to address a heavier workload or to accept additional document types can be performed without significant impact to the enterprise.
Highly scalable solutions make it possible for organizations to move quickly to meet the demands of an evolving market. Infrastructure reconfigurations are not necessary, allowing for rapid deployment of IDP functionality. In a world where expectations can change overnight, having a scalable solution provides businesses with the agility they need.
Compliance.
Most organizations retain some form of personal information that is protected. Whether it is health information protected under HIPAA or financial data governed by PCI-DSS, organizations have a responsibility to ensure the information is safe. IDP solutions can simplify the compliance process.
IDP implementations automate data entry and validation so that private information is not accessible by unauthorized personnel. Many data breaches are the result of insider attacks, and the numbers are increasing. Limiting the human element in processing protected data can save companies thousands of dollars in data breach costs.
Employee experience.
Improving the employee experience is central to creating exceptional customer experiences. Happy employees make for happy customers. When workers spend a percentage of their time moving data from one application to another, their ability to perform meaningful work declines. The inability to contribute leads to employee disengagement. Disengaged employees do the minimum, resulting in lower customer satisfaction.
IDP can improve employee satisfaction by freeing them from repetitive tasks. Removing repetitive tasks from workloads demonstrates the value a company places on its human assets. It also minimizes the chance of error, which increases as employees disengage.
Customer experience.
The ultimate goal of IDP solutions is to enable organizations to deliver an exceptional customer experience. For example, ingesting and extracting critical information from insurance claims can expedite resolution. Faster resolutions provide customers with crucial resources after an accident or catastrophic event.
IDP can ensure that information on customer interactions is available to other applications. When customers call, support personnel have a comprehensive record of customer activity. There’s no need for consumers to repeat information or try to explain what has transpired in earlier interactions.