Choosing the Right Intelligent Document Processing Service: A Guide for Businesses

Jun 13, 2023
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Overview

In today’s fast-paced business world, companies generate a vast amount of data, most of which is stored in paper-based or unstructured digital documents. Intelligent Document Processing (IDP) is a technology that enables companies to automate the processing of documents and extract valuable data from them. In this blog, we will discuss how to choose the right IDP service for your business.

IDP Market

We need to understand how many companies are providing intelligent document processing service today. There are numerous IDP service providers in the market today, ranging from well-established tech companies to startups. The competition is high, and it is crucial to evaluate each service provider’s features and capabilities before selecting one.

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As of 2021, the Intelligent Document Processing (IDP) market is highly fragmented, with many vendors offering a range of solutions. According to a report by ResearchAndMarkets, the IDP market is projected to grow at a CAGR of 32.6% from 2021 to 2028.

Some of the leading players in the IDP market include ABBYY, Kofax, Parascript, UiPath, Blue Prism, Automation Anywhere, AntWorks, WorkFusion, Hyperscience, and Celaton.

ABBYY is considered one of the leading vendors in the IDP market, offering solutions for invoice processing, contract management, and document classification. Kofax is another prominent player, providing solutions for data extraction, document imaging, and process automation.

UiPath is a well-known provider of robotic process automation (RPA) solutions that also offers IDP capabilities. Blue Prism and Automation Anywhere are other RPA vendors that have expanded into the IDP market.

AntWorks is a relatively new entrant in the IDP market but has gained attention for its Cognitive Machine Reading (CMR) technology that combines OCR, machine learning, and natural language processing.

Overall, the IDP market is expected to continue growing as companies look for ways to automate their document processing workflows and extract valuable data from unstructured documents. The competition in the market is likely to increase as new vendors enter the space and existing vendors expand their offerings.

Prerequisite for IDP Implementation

Before implementing IDP, a company needs to ensure that it has a robust document management system in place. The documents should be organized, digitized, and accessible for the IDP system to extract relevant data. Additionally, the company should assess the type of documents that need processing and the volume of data to determine the appropriate IDP solution.

Before implementing an Intelligent Document Processing (IDP) solution, there are several prerequisites that a company should consider to ensure the successful adoption of the technology. These prerequisites include:

  1. Document management system: A company should have a robust document management system in place to ensure that the documents are organized, digitized, and accessible for the IDP system to extract relevant data.
  2. Clear objectives: The company should have clear objectives for implementing IDP, such as reducing processing time, improving accuracy, and increasing productivity.
  3. Document types: The company should assess the type of documents that need processing and the volume of data to determine the appropriate IDP solution. Different IDP solutions are better suited for different document types, such as invoices, contracts, or forms.
  4. IT infrastructure: The company’s IT infrastructure should be capable of supporting the IDP solution, including hardware, software, and network requirements.
  5. Data security: The company should ensure that the IDP solution has robust security measures in place to protect sensitive data.
  6. Staff training: The company should provide staff training to ensure that they understand how to use the IDP solution effectively.
  7. Vendor evaluation: The company should evaluate potential IDP vendors based on their features, capabilities, and customer reviews to ensure that they select the most suitable vendor for their specific needs.

Right time to adapt IDP?

A company can determine if it is time to adapt IDP by assessing its document processing efficiency, error rates, and employee productivity. If the current process is manual and time-consuming, with a high error rate, IDP can streamline the process, reduce errors and free up employee time to focus on higher-value tasks.

Intelligent Document Processing (IDP) can be a game-changer for businesses looking to improve their document processing workflows, increase efficiency, and reduce errors. But, how can a company determine if it’s the right time to adopt an IDP solution? Here are some signs that may indicate that it’s time to consider IDP:

  1. Increased document volume: If your company is experiencing a significant increase in the volume of documents to be processed, it may be time to consider an IDP solution. IDP can help automate the processing of large volumes of documents, reducing processing time and improving accuracy.
  2. Manual data entry errors: If your company is experiencing manual data entry errors, such as typos, incorrect values, or missing data, an IDP solution can help improve accuracy by automating the data extraction process.
  3. Slow processing time: If your company’s document processing workflows are slow and time-consuming, IDP can help speed up the process by automating data extraction and reducing manual processing time.
  4. Compliance requirements: If your company needs to comply with regulations such as GDPR or HIPAA, an IDP solution can help ensure compliance by securely managing sensitive data and automating processes to reduce the risk of human error.
  5. High labor costs: If your company is spending significant amounts of money on manual document processing, an IDP solution can help reduce labor costs by automating repetitive tasks and improving efficiency.

What do I look specifically in IDP?

When selecting an IDP solution, look for accuracy, data extraction capabilities, document type support, and scalability. The solution should also integrate seamlessly with existing systems and workflows and have robust security measures to protect sensitive data.

When looking for an Intelligent Document Processing (IDP) solution, it’s essential to consider several key features and capabilities to ensure that the solution meets your specific needs. Here are some features to look for when evaluating an IDP solution:

  1. Document type support: The IDP solution should support the document types your company needs to process, such as invoices, contracts, or forms.
  2. Data extraction accuracy: The IDP solution should have a high accuracy rate in extracting data from documents. Look for solutions that use machine learning algorithms and natural language processing to improve accuracy.
  3. Integration capabilities: The IDP solution should integrate seamlessly with your existing systems, such as your document management system or ERP software.
  4. Workflow automation: The IDP solution should automate document processing workflows, reducing the need for manual intervention and improving efficiency.
  5. Customization: The IDP solution should be customizable to meet your specific business needs, such as data extraction fields or document processing workflows.
  6. Security features: The IDP solution should have robust security features to protect sensitive data, such as encryption and access controls.
  7. Scalability: The IDP solution should be scalable to meet your business needs as your document processing volume grows.
  8. Reporting and analytics: The IDP solution should provide comprehensive reporting and analytics, allowing you to monitor the performance of your document processing workflows and identify areas for improvement.

KPI and measurement of success of IDP

The Key Performance Indicators (KPIs) for IDP include the processing time per document, accuracy rate, and employee productivity. The measurement of success should be based on the efficiency gains and cost savings achieved through the implementation of IDP.

  1. Accuracy rate: The accuracy rate measures the percentage of data accurately extracted by the IDP solution compared to manual processing. An increase in the accuracy rate indicates that the IDP solution is effectively automating data extraction, reducing errors, and improving efficiency.
  2. Processing time: The processing time measures the time taken to process a document from start to finish. An effective IDP solution should reduce processing time, resulting in increased efficiency and productivity.
  3. Cost savings: Cost savings measure the amount of money saved by using an IDP solution compared to manual processing. An IDP solution can reduce labor costs by automating repetitive tasks and improving efficiency, leading to significant cost savings.
  4. Document throughput: Document throughput measures the number of documents processed by the IDP solution over a specific period. An increase in document throughput indicates that the IDP solution is effectively automating document processing and improving efficiency.
  5. Customer satisfaction: Customer satisfaction measures how satisfied customers are with the quality and speed of document processing. An effective IDP solution should improve customer satisfaction by reducing errors, improving processing speed, and increasing accuracy.

Conclusion:

Intelligent Document Processing is a technology that can significantly improve a company’s document processing efficiency, reduce errors and improve employee productivity. When selecting an IDP solution, it is essential to consider the specific requirements of your business, including the document type, volume, and the desired outcome. With the right IDP solution, companies can streamline their document processing workflows, reduce costs, and achieve greater efficiency.

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