If your valuable business data is trapped in physical paperwork and digital archives, intelligent document processing (IDP) can extract it and put it to work for you. IDP helps you capture, parse, and analyze your records and reports through a combination of digitization and artificial intelligence (AI) technologies. Rather than manually typing up paperwork and sorting files into folders, IDP can automate most of that busywork for you. That means better accuracy, faster workflows, and smarter data-driven decisions.

The technology for IDP is widely available and fairly easy to implement. All you need to start is a high-quality scanner, some good scanning software, and a few workflows that would benefit from automation. In this guide, we’ll cover the basics of IDP, what it can do for your business, and how to find the right partners for the job.

What is intelligent document processing?

Intelligent document processing (IDP) is an automated method of extracting data from documents and then organizing it into systems. In general, IDP takes the form of software that can integrate with productivity tools. AI integrations allow this technology to handle a wide array of materials with minimal human oversight.

IDP benefits

• Better data accuracy: Humans are prone to making errors when dealing with large quantities of repetitive data. Scanners and scanning software are more consistent, leading to more accurate data in better-organized file systems.
• Scalable solutions: As your company grows, you’ll probably need to process and store more and more information. IDP can easily tackle thousands of documents per day, or tens of thousands per week.
• Reduced costs: Having workers do tedious clerical tasks may take them away from the specialized work that you hired them for. Having machines process documents is a better use of your existing resources and cheaper than hiring more hands.

What makes IDP possible?

• Intelligent capture: Intelligent capture is the process of digitizing images or documents. It uses technologies such as optical character recognition (OCR) and natural language processing (NLP) to identify the text on a page and understand what it means.
• Computer vision: Beyond identifying letters and numbers, intelligent document processing tools can also be trained to identify images and diagrams. For instance, they could identify the company CEO from a headshot and correlate that information with other documents.
• Generative AI: Large language models let IDP tools understand requests and generate natural-sounding answers from data. For instance, you could ask an LLM to summarize trends in the invoices your business has received over the last three quarters.

Read more about automating your document systems in What Is Intelligent Document Processing? and Intelligent Document Capture vs Intelligent Document Processing: What's the Difference?

What can intelligent document processing do for your business?

We’ve addressed the fundamentals of intelligent document processing. Now let’s talk about how those aspects can come together to make a massive difference in your day-to-day operations. Here are just a few of the ways IDP can address common concerns and unlock efficiencies for businesses.

What do you need for IDP?

• Reliable scanners for digitizing physical documents
• Document management systems to organize the resulting files
• Workers ready to capitalize on these streamlined processes

Use cases for IDP

1. Hiring: Rather than poring through dozens of resumes by hand, IDP solutions can generate summaries and call out unique points for each candidate. This helps your hiring team spend more time identifying the perfect fit for your business.
2. Invoice processing: Whether they’re digital or physical, invoices often present a bottleneck in the accounts payable process. IDP tools can pull pertinent data, such as payment amounts or due dates, making it easier for employees to inspect and approve the transaction.
3. Tax preparation: Accountants can use IDP to complete tax forms more quickly without sacrificing accuracy or compliance. By extracting relevant information and then filling key fields automatically, intelligent document processing can help speed up tax prep.

For more information about practical applications of IDP, check out 5 Types of Intelligent Document Processing Solutions and 5 Intelligent Document Processing Use Cases for Modern Businesses.

How to find an intelligent document processing partner

It’s possible to create your own IDP solutions, but you may not have the right resources within your company. Working with established intelligent document processing companies means being able to depend on their expertise. You just have to know how to find the best fit for your business.

Why should you use an IDP partner?

• Shorter lead-up time: Developing an IDP workflow in-house means researching, purchasing, and setting up hardware and software. Using a partner means you can get started right away.
• Built-in technical support: Solving IDP problems on your own might mean trying to coordinate between half-a-dozen different hardware and software manufacturers. A good partner can be a single point of contact instead.
• Compliance with industry standards: If you work in finance, healthcare, or other regulated fields, your IDP solutions need to comply with industry standards. Specialized partners know exactly how to create compliant solutions.

What to look for in an IDP vendor

1. Accuracy: Bad data now could lead to bad decisions further down the line. Therefore, accuracy is the most important feature of any intelligent document processing solution. Look for proof that a potential partner will give you the most accurate results possible.
2. Intuitive use: An IDP tool is only helpful if you can figure out how to use it. That goes for every member of your team who may rely on it. Look for vendors who offer solutions that minimize clutter and streamline processes without creating additional busywork.
3. Flexible integrations: Valuable data is often in high demand. For instance, an IDP tool could help populate relevant information in a customer database, an email marketing tool, and a payment processing solution. Your partner should help you remain compliant with any security or privacy regulations.

Read more about finding the right solution in What to Look for in Intelligent Document Processing Vendors.

Intelligent document processing solutions for your business

Ready to bring intelligent document processing to your organization? The next step is finding the right solution for your business. As leaders in the field of digitizing knowledge, the experts at Ricoh are happy to help you decide where to go next. Book an assessment with our team for more practical advice on how to get your business ready for a more streamlined, efficient, and intelligent future.

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