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What Is Intelligent Document Processing (IDP)? Everything You Need to Know

by | May 6, 2024 | Blog

The digital era has flooded businesses with more information than humans can manage effectively. Businesses now handle vast amounts of data daily – from documents and PDFs to emails and forms. 

This is where Intelligent Document Processing (IDP) is a game-changer. IDP is a technology that automatically extracts and interprets data from documents, enhancing the accuracy and speed of data handling. 

Reveille’s platform leverages this technology by offering tools that integrate into existing systems to monitor and manage this critical process 

Read on to discover how this support enhances operational efficiency.

Table of Contents

What is Intelligent Document Processing (IDP)?

Intelligent Document Processing (IDP) automates the extraction and processing of unstructured data from documents. Once limited to reading printed text, IDP has evolved into more advanced systems capable of comprehensive manual document processing and analysis. 

Modern IDP systems can;

  • Use machine learning, natural language processing (NLP) and computer vision,
  • Transform unstructured or semi-structured documents into structured, usable formats with speed and accuracy,
  • Detect anomalies,
  • Classify documents,
  • Learn from each interaction to continuously improve processing accuracy. 

Let’s take the example of retail banking. IDP can streamline the handling of various customer-related documents like account opening forms and identity verifications.

With IDP software solutions, banks can automatically extract data from these documents, regardless of format or quality. This speeds up decision-making processes and reduces errors associated with manual data entry.

How Does Intelligent Document Processing Work?

IDP revolutionizes how businesses manage and analyze information, enhancing efficiency and accuracy across various operations. Here’s how the process unfolds:

Intelligent Document Classification

IDP utilizes machine learning to recognize and categorize documents, such as invoices, emails, or forms. It then facilitates the use of tailored rules and extraction methods for more precise and efficient data processing.

Data Extraction

Once documents are classified, the IDP system uses AI to extract key information like dates, names, and amounts. For instance, from an invoice, it might pull the due date, vendor name, and total amount due. This flexibility allows the system to handle various layouts and formats of structured documents.

Data Validation

After extraction, IDP validates data using domain-specific rules and scripts, enhancing accuracy. Business systems and RPA integrations enable advanced validations, automate corrections and streamline data flow. This reduces manual checks, ensuring data reliability and seamless integration into existing workflows.

Continuous Learning

IDP systems facilitate continuous learning through user interactions and feedback. Adaptive learning ensures the system remains effective as business needs and document types evolve. 

Reveille’s user analytics functionality is crucial in analyzing usage patterns and benchmarks. It helps organizations refine data processing strategies, keeping the system aligned with changing business requirements.

Analytics and Reporting

IDP systems offer analytics and reporting capabilities—these track metrics such as processing time, error rates, and throughput volumes. The insights gained help identify bottlenecks, improve workflows, and enable organizations to make data-driven decisions. This functionality is crucial for optimizing document processing strategies and driving operational improvements.

What Technologies Are Used in Intelligent Document Processing?

There are several core technologies behind IDP.

Each technology addresses specific challenges in the document processing chain:

  • Optical Character Recognition (OCR): OCR converts images of text from scanned documents and photos into machine-encoded text. This enables businesses to digitize paper-based data quickly and efficiently. For example, in sectors like banking or healthcare, OCR helps convert forms and applications into digital data, facilitating storage, search, and retrieval.
  • Machine Learning (ML): ML enhances IDP systems by enabling them to learn from data inputs and corrections. Machine learning algorithms can identify patterns and anomalies in data. This feature benefits applications requiring fraud detection or complex data entry verification, such as insurance claims, automated document processing, or invoice management.
  • Natural Language Processing (NLP): NLP allows IDP systems to interpret not only the data but the semantics of information. This makes it possible to handle complex documents such as legal contracts or patient records where understanding the context of usable data is as important as the data itself.
  • Computer Vision: This technology assists in recognizing and interpreting visual elements within documents, such as logos, stamps, and handwritten notes. In sectors like logistics or retail, computer vision can identify and categorize images and forms based on visual content. This capability aids in inventory management and compliance checks.
  • Robotic Process Automation (RPA): RPA automates repetitive tasks based on extracted and processed data. It interacts with other business systems to execute tasks like data entry, sending notifications, or updating records without human intervention. For instance, RPA can automatically update customer records in a CRM system based on the latest contract details and extracted data via IDP, streamlining customer service operations.

Benefits of Intelligent Document Processing

IDP transforms traditional document handling. It offers significant benefits that streamline operations and enhance data management across sectors.

Increased Efficiency

By automating the extraction and processing of data from documents, this technology streamlines workflows and cuts down on manual labor. 

The efficiency gained enables employees to redirect their efforts toward strategic goals. This enhances productivity and optimizes resource allocation across the organization.

Faster Decision Making

IDP technology enables rapid data processing and quick accessibility to insights. Faster access to accurate data helps organizations make swift decisions. By staying responsive to market changes and customer needs, companies can maintain a competitive edge, adapting in fast-paced sectors.

Lower Processing Costs

Reducing the reliance on manual document handling serves two benefits. It decreases labor costs and minimizes the occurrence of errors. 

Both help to prevent financial losses associated with data mishandling and reduce the workload involved in correcting such mistakes – helping to save costs.

Get Enterprise Level Automation

Seamless integration with existing business systems allows for the automation of complex processes at an enterprise scale. This broad automation ensures data consistency and enhances quality across various operations, boosting reliability and compliance within the organization.

Improved Customer Experience

Efficient data processing ensures quick responses to customer queries and accurate handling of requests. 

This quick and precise response improves customer interactions and satisfaction. By improving customer experience, businesses can foster loyalty and increase their reputation. 

More Scalability

IDP systems are designed to manage larger volumes of data and more complex processing tasks. As such, they can adapt to increased workloads without requiring additional resources. Such scalability supports business growth, enabling companies to expand their operations while managing the larger data sets that come with scaling.

Use Cases of Intelligent Document Processing

IDP supports diverse sectors in enhancing accuracy, boosting productivity, and streamlining operations, including:

Insurance

IDP revolutionizes claims processing by automating the extraction and analysis of data from claims forms and related documents. Automation has cut down on processing times and boosts accuracy, expediting claim resolutions and elevating customer satisfaction.

Additionally, the IDP solution’s ability to detect patterns and anomalies helps insurers strengthen their fraud detection efforts, providing a robust defense against fraudulent claims.

Customer Onboarding

Banks and financial institutions use IDP to accelerate customer onboarding processes. By automatically extracting relevant data from ID proofs, application forms, and other necessary documents, IDP speeds up the verification process, reduces errors, and improves compliance with regulatory requirements. 

The result is a quicker, more efficient onboarding experience that enhances customer satisfaction.

Logistics

In logistics, IDP streamlines the management of shipping documents, invoices, and freight bills. It automates data capture from various forms and documents, enabling quicker invoice processing and reducing discrepancies. This efficiency improves supply chain visibility, enhances tracking accuracy, and reduces bottlenecks. The outcome is more reliable and faster deliveries.

Human Resources

HR departments benefit from IDP by automating the processing of employee documents, such as legal documents such as resumes, onboarding paperwork, and benefits forms. This automation speeds up the hiring process, improves employee records management, and ensures compliance with labor laws. It also frees HR professionals to focus on more strategic tasks like talent management and employee engagement rather than mundane data entry work.

The Future of Intelligent Document Processing

The future of IDP looks promising. IDP systems will become more sophisticated, with artificial intelligence and enhanced abilities to process complex documents and provide deeper insights into data. 

As businesses move towards digital transformation, IDP will be crucial in automating and streamlining document-intensive processes.

Adopting monitoring tools like Reveille ensures your IDP systems function optimally. Reveille provides essential oversight and maintains the health of your IDP software.

For more information on how Reveille can enhance your IDP systems, visit Reveille’s website or contact us.