Documents are the most important and most frequent information carriers in companies. However, efficient management and processing of the data they contain is essential. IDP software plays a key role here. This solution for intelligent document processing (IDP) helps to automate information processes and extract profitable value from the data they contain.
In this blog post, you will learn more about the benefits, features and applications of Intelligent Document Processing software, why it is essential for modern businesses and how to choose the right solution.
What is Intelligent Document Processing?
Intelligent Document Processing (IDP)is a form of automation that makes use of advanced technologies to support users in the analysis and organization of documents. Artificial intelligence and machine learning algorithms are used to optimize the flexible recognition of data fields and the extraction of information from unstructured data.
The ultimate aim is both to reduce the workload of routine tasks and to obtain a structured, high-quality database. The end product of the technologies used is also IDP Software and brings the latest AI innovations to market maturity in rapid, iterative development processes.
IDP Software uses artificial intelligence precisely where manual processes previously had a high information content.
Advantages of IDP for companies
Traditional document processing is characterized by a high expenditure of time and a high error rate. This costs a lot of resources, while the optimal use of information falls by the wayside. Companies that use IDP software instead benefit from the following advantages:
- Efficiency increase by reducing the cost of processing large volumes of data
- Increase in data quality - Significant improvement in data accuracy and -integrity through the use of AI
- End-to-end data processing (DDV) - Reduced need for highly qualified specialist staff to process documents manually
- Ease of use through quick setup and automation of processes as well as the availability of a customized Interfaces
- Seamless integration through interface connection and end-to-end automation of document processing
- Strengthening the strategic goals through the optimized use of information and resources
IDP Software uses a combination of user- and data-centric approaches to sustainably improve business processes and insights.
Basic functionalities and procedure
The manual reading of documents in companies is usually a homogeneous process. However, various individual steps are necessary for automated document processing in order to enable almost complete automation. Accordingly, IDP platforms and corresponding software have certain functionalities that are geared towards the respective dimension of data processing. The procedural linking of the individual standard functions results in a typical widespread standard process in which data is extracted from documents in a targeted manner and further processed:
1. Classification
The software uses machine learning to analyze different types of documents and automatically recognize and classify. Algorithms analyse the documents, identify patterns and categorize them accordingly. This enables fast and precise assignment of document types such as invoices, contracts or emails.
2. text recognition and data extraction
After classification, the software extracts relevant data from the documents. Here comes OCR technology (Optical Character Recognition), which makes it possible to recognize text from scanned documents and images and convert it into editable text. In addition, advanced extraction algorithms use machine learning to precisely identify and extract information such as numbers, names and other important data points.
3. data export
The extracted data are finally exported in a machine-readable format that can be integrated into existing systems or processes. This applies to CSV, JSON or other structured data formats, for example. Integration with existing software allows the data from the IDP platform to be processed seamlessly and used for data-based decisions and analyses.
Integrated AI technologies
Various highly specialized technologies are used to enable the steps of intelligent document processing described above. In contrast to traditional OCR software, these are not purely rule-based approaches to automation. Instead, the integration of artificial intelligence ensures the management of deviations and therefore also a more flexible and resource-saving recognition of data in documents.
Machine Learning
This particularly important Sub-area of artificial intelligence is characterized by the analysis of data and the recognition of patterns contained therein. The rules derived from this can be applied to previously unknown data points so that classifications and forecasts are possible. Human corrections also allow IDP software to continuously improve accuracy.
Optical Character Recognition (OCR)
AI-based OCR technology converts scanned images of documents into editable and searchable text. Modern OCR software is also able to recognize handwritten text and unusual fonts, which significantly improves the usability of data extraction. In comparison, classic OCR is characterized by a high set-up effort and manual rule sets.
Natural Language Processing (NLP)
NLP algorithms help to analyze and interpret texts in the documents. They can understand context, recognize synonyms and analyze the meaning of sentences in order to precisely extract the relevant data points. The focus is now on so-called large language models (LLMs), which have a particularly high level of contextual understanding and have also been used for some time to process multimodal content are capable.

Examples for the application
Companies in any industry can use IDP software to process data from a wide variety of documents. There are often ready-made models for particularly common formats; however, depending on the degree of individuality, the amount of customization required for successful use varies.
Intelligent document processing is often just the starting point for more in-depth data analyses made possible by IDP software. Typical application examples include
- Categorization and extraction of data
- digital document archiving
- Claims Management
- Intelligent fraud detection
- Case investigation
- Contract management and processing
- Mortgage loan application processing, customer onboarding, and cashback and loyalty program automation.
Intelligent document processing is the basis for the confident handling of information in every conceivable area of a company.
Selection of an individual solution
When selecting an IDP software solution, companies should consider the following factors:
- Compatibility - The software should be compatible with existing systems and platforms.
- Ease of use - An intuitive user interface facilitates implementation and use - especially when validating data.
- Scalability - The solution had to be compatible with the company's growth and also be able to adapt to a dynamic peak load.
- Support and training - Providers should offer comprehensive support or Training courses to ensure successful implementation.
- Privacy and security - Legal regulations and internal compliance must also be observed when it comes to intelligent document processing. In Germany, this applies in particular to the GDPR.

When systematically evaluating IDP software, companies should ask themselves a few important questions:
Question 1: Is the solution powerful enough?
The IDP platform must be able to utilize effective technologies to deal with the day-to-day and real-world challenges of document processing.
- Is the application powered by powerful AI technologies so that it automatically learns and improves from the documents it processes?
- Can it capture both typewritten and handwritten text and process it in a resource-saving manner?
- Can the solution capture and process structured, semi-structured and also completely unstructured documents, i.e. does the solution understand the context in the documents?
- Can the solution handle formats with poor image quality and perform quality enhancement at the same time?
Question 2: Can it be integrated into the existing infrastructure?
This factor depends heavily on the existing legacy systems. IDP software should be able to be integrated without fundamental changes, which requires some integration skills.
- Can the solution be operated in a cloud environment?
- Is there a flexible programming interface (REST API)?
- Is it compatible with other business technologies such as RPA?
- Is it suitable for the specifics of the individual industry?
Question 3: Is there an intuitive user interface?
It is necessary that the IDP software also offers a sufficient range of user-centered approaches that facilitate everyday use.
- Can the platform be used by employees without prior technical knowledge?
- Can adjustments be made according to the no-code principle?
- Can manual validations be carried out and how accessible is the associated interface?
- Can new use cases be created without help if needed?
Question 4: What is the vision of the IDP solution provider?
When choosing an up-to-date technology such as IDP, it is crucial to find a reliable provider with whom you can enter into a long-term partnership.
- Is there ongoing support and product updates?
- Is there a detailed product roadmap?
- Will the product functionalities be expanded?
- What kind of ecosystem does the solution support? What does the solution provider's customer service look like?
Question 5: Does the platform add economic value?
Last but not least, the individual approach to intelligent document processing must also be compatible with the respective business objectives.
- Can the solution grow the business?
- Is it easily scalable?
- Does it enable more efficient straight-through processing?
- Can it increase productivity?
- Can end-to-end automations be performed with the platform?
Summary: The properties that matter
- The flexible ability to capture, classify and extract structured and unstructured data from any document
- A cloud-based, rapidly scalable solution
- Easy integration and compatibility with existing software
- Industry-specific and intuitive to use
- An experienced, forward-thinking team behind the IDP solution
Now you know what is important when selecting an IDP platform. In the next chapter, you will find out how something like this can look in practice.

Intelligent Document Processing in practice: Konfuzio
Konfuzio is a German IDP software that has been setting new industry standards in terms of speed, security and precision for years. By complying with local data protection standards and offering highly customized operation in the cloud or on its own servers, it is the first choice of countless corporate customers across all industries. The combination of a wide range of standardized functions and close, individual support leads to tailor-made solutions that are unmatched elsewhere.
Intelligent document processing functions
Konfuzio helps companies to manage documents, optimize business processes and improve workflows.
Companies benefit directly from these functions - as do their customers:
- Intelligent Document Processing for automated document processing
- Input Management: Processing of your mail and incoming e-mail including automatic extraction of data from PDF, image, Word, PowerPoint and Excel documents such as invoices, waybills, contracts and system reports
- Automatically categorized filing thanks to document classification
- Emails with attachments - Extraction of email data such as orders, lead notifications, system alerts and travel confirmations
- API & SDK development - Extensive access for developers to the web interface and document AI. With the AI and UI module, you can implement your own document workflows in a particularly individual way.
- Preparation for DMS/ECM and document archive - Automatic processing and correction through categorization, assignment and storage in the document archive. Reliable and qualitative recording of index values and search filters.
- Sophisticated indexing and search functions for easy automatic storage, processing and retrieval of documents
You can use the AI software from Konfuzio via a web browser and REST API and process PDF, TIF, PNG, JPG, JPEG and e-mail formats.
Konfuzio can be used both in the cloud and on-premises.
A special highlight is the Python SDKwith which you can train the AI for special document types and further individualize its application.
Integration
To ensure successful implementation in your infrastructure, Konfuzio can be integrated with a whole range of third-party applications. This concerns e.g:
- SAP
- Excel
- Zapier
- UIPath
- M-Files
- Power Automate
- Keycloak
- Make
- Numerous other RPA, ERP, CRM or individual systems
Konfuzio offers IDP software that you can integrate easily and deploy quickly. The possibilities are manifold, as you can train and further develop the AI individually. This significantly improves the efficiency of document processing and therefore the entire company.
Konfuzio in check: Is the IDP platform suitable?
As mentioned above, the following points are characteristics of a good IDP platform:
- Flexibility
- Cloud-based and fast scalability
- Easy integration into existing systems
- Intuitive user interface
- Experienced, future-oriented support
If you now want to find out whether Konfuzio fulfills the requirements, the criteria can be met as follows:
- Flexibility - Yes, through adaptive AI and Python SDK, which is suitable for both structured and unstructured documents
- Cloud basis and scalability - Yes and yes
- Simple integration - Given, wide choice, e.g. REST API, Google Docs, Microsoft applications and other RPA, ERP and CRM systems.
- Intuitive user interface - Yes, thanks to numerous options for customizing the application and the Document Validation UI
- Support - Experienced (since 2016) and future-oriented thanks to continuous further development of the application
Conclusion
Intelligent Document Processing (IDP) enables companies to increase their efficiency and significantly improve the accuracy of their document processing. The automation used now goes far beyond pure optical character recognition and makes use of the latest AI technologies in the areas of machine learning and natural language processing. The challenge lies in applying the technical innovations in a functioning overall product. In this respect, Konfuzio offers comprehensive capabilities in all aspects of modern IDP software - from pure data extraction to highly customized data pipelines and integration options with existing software. See for yourself and take the next step with us!
Please take Contact to find out more about IDP software and its benefits for your business. Our experts are at your disposal to develop customized solutions that meet your specific requirements.