Advantages of Intelligent Document Processing (IDP)

Document processing is a critical process in major business operations, such as procurement, expense management, onboarding, and so on. In a business environment, documents come in structured and unstructured formats in different forms – like printed, handwritten, etc. The speed and accuracy of document processing determine the efficiency of your operations and impact the associated results. However, traditional document processing techniques have gone obsolete. They are no longer meeting the modern business needs. This is where intelligent document processing comes into the picture. 

Intelligent Document Processing (IDP) leverages cutting-edge technologies such as OCR, NLP, AI and ML to process large volumes of documents. Why you need these technologies? What are the challenges IDP solve, you ask?  

Low productivity: 

Usually, employees need to enter data manually using traditional methods. This method is prone to errors and takes too much time for the employees. These errors could be costly because, ultimately, they lead to inaccurate insights. 

High Operational Costs:  

Don’t you think managing paper-based documents is a costly affair? Scanning, sorting, organizing, filing, and printing paper documents manually leads to high operational costs.  

Lower Processing Speed, leading to delays in Decision-Making:  

To make the right business decisions, enterprises need accurate insights at the right time. With traditional methods of document processing, it is not possible for enterprises to extract and analyze the data faster, which leads to leads in decision-making, particularly in time-sensitive situations. 

Security, Compliance, and Scalability Issues:  

Managing documents manually increases the chances of non-compliance (GDPR or HIPAA) risk. Apart from the compliance trouble, enterprises encounter scalability issues with manual document management processes. When your business grows, the volume of documents also doubles, requiring more effort. With traditional document management processes, scaling up your business is not possible. 

Advantages of Intelligent Document Processing 

IDP (Intelligent Document Processing) is the solution to all the above-mentioned challenges that enterprises struggle with manual document processing methods.  

Fun fact: The global IDP market size is projected to grow a CAGR of 33.1% –  Grandviewresearch 

 

Boost Productivity 

By automating the process of document management, enterprises can save time and speed up the processes, leading to better productivity. Team members can utilize their free time for more strategic tasks instead of spending hours on administrative work. Productivity is the at the core of all automation activities.  

Fewer errors and more accuracy 

With advanced technology like AI, NLP, OCR, and ML, enterprises can extract and analyze the process faster with better accuracy and minimize errors. These technologies collectively speed up the process of scanning, extracting, and analyzing various formats of invoices and contracts, ensuring better output.  

Did you know? IDP helps in reducing the errors by 52% – Datasemantics 

Saving Costs  

As we have discussed, the traditional document processing method is a costly affair; IDP helps in eliminating extra costs such as physical storage and costs associated with paper-based systems. Moreover, IDP cuts down human labor and operational costs. Most of the tasks will be automated freeing up more time for the team to focus on strategic activities. Plus, it enables enterprises to work more with less team members.  

Better Security  

Once your document management process is automated with IDP, enterprises can ensure that all documents are categorized, tagged, and stored in a proper format following the security compliances. 

Faster Decision-Making 

When your data is properly structured and accessed easily, you can make decisions faster. Automating the data extraction and processing speeds up the workflows. More advanced technologies such as Multimodal Document Processing, Gen AI integration, Agentic Process Automation are making IDP more powerful.  

Conclusion 

IDP helps enterprises manage their documents in the most effective way. Automating data extraction, classification, tagging, and analysis helps reduce errors and speed up processes. It helps enterprises combat most of the common challenges like inefficiency in the process, scalability, and operational costs. While implementing IDP, you need to consider various factors beforehand. It is always significant to consult with experts such as the Saxon AI team to help you get started.