Many companies are looking for new ways to digitize documents and optimize their processes through intelligent automation. The advantages of digital document processing and archiving through Document Processing are obvious:
- Time and cost savings,
- better overview of the data obtained as well as
- Accessibility from anywhere.
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Digitizing documents is a complex and time-consuming undertaking. As early as the 1990s, the first OCR (Optical Character Recognition) solutions were used to transfer paper documents into digital systems. Even then, the goal was to create digital files that simplify the organization of applications, contracts and the like, and to increase the usefulness of the collected data by archiving it in a meaningful way.
In classic document processing, OCR software recognizes content and text from images of a physical document, called a scan. Once digitized, the captured data can be used for further processing. Over time, document processing solutions have evolved beyond the mere transfer of text - first to Intelligent Character Recognition (ICR) (which from today's perspective is not very intelligent), then in conjunction with artificial intelligence to Intelligent Document Processing (IDP).
Intelligent Document Processing - What is IDP?
By combining classic OCR software with artificial intelligence (AI), Intelligent Document Processing (IDP) is able to use an algorithm to extract data. This allows content in documents to be analyzed intelligently, regardless of rigid rules or layout. Using IDP means extracting information automatically, filing documents in a structured way, and making content machine-readable. IDP recognizes what kind of information is involved and can thus extract the important data from the scanned documents.
How does IDP work?
- Scan a document
- Text recognition through OCR
- Reading and digitization of documents
- Automatic data extraction
- Triggering further workflows through the information contained in the document
- Automatic and intelligent archiving
Advantages of Intelligent Document Processing (IDP) for data extraction
This intelligent document processing creates significant added value for companies. For example, by eliminating repetitive tasks, the valuable resources of employees are conserved so that they can devote themselves to other, more important tasks. In addition, processes can be optimized, as the manual reading and processing of documents is tedious and time-consuming work that turns even lean processes into time wasters.
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However, the digitization of documents offers even more advantages. Even if documents are not fully recognized, they can already be prepared for visual inspection by humans. People use these automatically prepared documents and only have to check a few elements. In addition, information from the documents is stored directly in relation to the case and the customer and supplemented with relevant metadata, so that a high level of data quality can be guaranteed.
IDP in practice
The scanned documents and the structured information obtained are imported into the company's own DMS, CRM or ERP system for further processing. Interfaces to other company-related target systems are also possible. This streamlined process greatly simplifies the management and organization of documents, as text is extracted from images, applications and documents, converted into structured information and machine-readable formats, and made available for direct use.
On the way to a paperless office, the intelligent processing of documents and records is a particularly important and effective step, as it optimizes a wide range of processes and reduces the workload of employees. Professional IDP solutions are therefore particularly interesting for companies with a high level of bureaucracy. IDP solutions enable:
- Capture paper documents in seconds.
- Instant recognition and classification of documents.
- Automatic information and data extraction from documents.
IDP vs. OCR and ICR
This gives IDP decisive advantages over rule-based solutions such as classic OCR and ICR software. Due to the rule-based definition of the forms, they are very error-prone. Many do not fit the predefined layout rules and so a manually created template with individually defined rules must be created for almost every new customer. In addition, the transferred content often has to be checked and adjusted manually.
The advantages of intelligent document processing at a glance:
- Time and cost savings through automated digitization
- Relieving the burden on employees
- Better data quality
- Intelligent process optimization
Intelligent Document Processing (IDP) - A wide range of applications
As IDP is a solution for professional document processing, it can be a huge relief for all industries and companies. Especially for those who have to cope with a high amount of work in processing and archiving documents. Especially there, repetitive and organizational tasks prevent effective work and tie up resources where IDP can be used efficiently and effectively. Typical examples that can be automated and intelligently read, categorized as well as assigned by IDP are:
- Invoices & receipts
- payment advices
- Insurance policies
- Vehicle documents
- Delivery notes
- Energy certificates
- Salary statements
- Rental agreements
- ID cards
Professional Document Processing with Konfuzio for Data Extraction
A solution that provides professional document processing and high-quality information retrieval is Konfuzio. The solution implements fast and reliable retrieval, categorization and processing in different languages, enabling optimization of data and document-related processes.
The data of the read documents is available within seconds in an uncomplicated way and can be further processed in the own ERP, DMS, BI or CRM tool. Before the structured data and information is transferred, it is also possible for Konfuzio to apply further, individual rules that fit the requirements of different companies.
The AI software of Konfuzio can be used via web browser and REST API and processes PDF, TIF, PNG, JPG, JPEG and email formats. Konfuzio reliably recognizes all these documents and quickly and accurately converts the text into high-quality information. The powerful machine learning solution can be implemented in the cloud as well as on-premise and can be trained for specific AI models using Python SDK.
How to use IDP software in your company
If you are interested in a comprehensive automation solution through the use of IDP software, the following examples can serve as inspiration for how you can use IDP software in your company:
- Automation of accounts payable by categorizing and extracting the data, e.g., using RPA
- Digital document archiving
- Processing of insurance claims, so-called claims management
- Fraud detection
- Case Reviews
- Contract management
- Processing of mortgage loan applications
- Customer introduction (onboarding)
- Automation of cashback and loyalty campaigns