Automated Document Processing – Benefits and Techniques
Key takeaways
- Document processing is an advanced technology that uses different AI solutions such as OCR, NLP, and Computer Vision, aiding in the transformation of unstructured data into structured data.
- Automated document processing transforms the information into usable formats, making them readable for processing machines.
- Document processing transcribes the details into machine-readable required for further processing.
- Automated document processing saves businesses from collapsing. It helps significantly save money and build a strong base for processing information on physical documents.
- Intelligent document processing (IDP) is the process of automated data capture from multiple documents or sources.
Document Processing and Automation
Business organization employees deal with heavy document processing labor, stressing themselves with tasks such as data entry, scanning through emails, manually managing different physical documents, and archiving and retrieving them when needed. It feels tedious and cumbersome to do all this manually, where processes are exposed to challenges such as errors, extended time-consumption, and being expensive and redundant.
This is why it is necessary to amplify the benefits of document processing. Through document processing, physical documents can be converted into digitized versions through data extraction. Document processing transcribes the details into machine-readable required for further processing. As one of the core tasks, the process has to be made easier and more efficient, limiting the resources used.
Table of Contents
Automated Document Processing
Document processing automation involves leveraging artificial intelligence that aids in data extraction from unstructured documents. Automated document processing transforms the information into usable formats, making them readable by processing machines. The core steps involved in document process automation are as follows –
- In the first stage, an unstructured document is imported into the automated document processing software. This is achieved by scanning the document and converting it into a PDF or an email.
- The automated document processing software initiates the processing by classifying the document type into receipts, medical forms, invoices, etc.
- In the third stage, the AI extracts and converts the data from the document which will be used for further processing.
- In the last stage, employees check whether AI has accurately classified and extracted the data. However, this verification step reduces as AI adapts to the process and only has to be involved in exceptions.
How does Document Processing Work?
Document processing is an advanced technology that uses different AI solutions such as OCR, NLP, and Computer Vision, aiding in the transformation of unstructured data into structured data. Structured data include XML, JSON, CSV, XLSX, UBL, and several other machine-readable languages. The computers can easily process structured data. However, for unstructured data, document processing software is used to take the data through the following steps –
- Document Structure Categorization and Extraction
- Information Extraction from Documents
- Error Detection and Correction
- File Conversion and Data Storage
The Importance of Document Processing Automation
Document processing automation garners huge benefits to the organization that are weighed down by the inefficiencies of complex tasks manually processed. Most often businesses lack a streamlined document management system and are overburdened with physical copies and their pending approval and storage.
Automated document processing saves businesses from collapsing. It helps significantly save money and build a strong base for processing information on physical documents. Let us look at the major reasons why you should consider automating document processing.
Reasons to Automate Document Processing
Reason 1 – Improved ROI
Automated document processing significantly impacts return on investment. The AI-based workflow software tool brings a strong ROI when the goal is long-term savings, helping in reducing manual labor. This way your employees will only spend a limited time on redundant tasks and lets them focus more on tasks that require attention and expertise.
Reason 2 – Improved Efficiency
While redundant and laborious tasks in document processing are automated, helping your employees to be more efficient and productive. This way, the machines will handle repetitive and routine tasks and employees focus on more important tasks and addressing exceptions. Your employees can now focus on strategic projects that require their expertise.
Reason 3 – Improved AI System Independency
Initially, AI will require minimal human oversight, however, the system will gradually learn the correct answers and be independent. This will eventually reduce the risk of errors in the overall process. In the absence of manual data entry, there are zero chances for a typo error or a copy-paste error.
Benefits of Using Automated Document Processing
1. Cost Efficiency
Manual document processing is error-prone and demands an amount of budget and time. However, with document process automation, any financial loss associated with redoing the process due to human-induced errors or the post-processing of the documents. Automating document processing yields better cost savings.
2. Minimizes Human Intervention
In automated document processing, the only stages where humans intervene are during the scanning of the physical documents and in case of exceptions that demand human intervention.
3. Automated Document Archiving
Through document processing, any type of document can be analyzed and converted into a digitized document. These target the data on the target fields that work based on predefined rules. Hence, making it possible to process different types of documents.
4. Scalability
With the changing trends and landscape on the business front, A document processing automation solution helps businesses gather data to be scalable. These tools are highly flexible. No matter what the document type is, converting and processing them is made easier.
5. Shortened Turnaround Time
The documents are processed within seconds, thus reducing the time taken for extraction workflow. This way employees are freed from regular repetitive tasks and can focus on strategic tasks. This significantly shortens the turnaround time.
Examples of Document Process Automation
AI-based document processing can be leveraged by different industries and their departments to effectively practice document management and storage. Especially when departments have to deal with high paper-based documents. Some examples of these processes are discussed here.
| Business Operations | Automating Document Processing |
|---|---|
| Billing | Billing departments are the most paper-bound teams we ever come across. A huge amount of time and resources go inside for processing and managing the sheer amount of paperwork. AI document processing can be such a relief to such departments. Redundant work that they toil with such as processing invoices, payments, and receipts can now be done using automated document processing. |
| Customer Service | Customer dealing departments often have to deal with piles of data and information that need to be processed and stored securely. It may not be necessarily paper-based, however, certain data has to be extracted from email as well. These data could be sensitive information or basic details of the customers. These data can be extracted and processed using automation features such as OCR. Businesses that leverage such solutions can offer a superior customer experience. Team members will not be empowered to attend to customer queries and issues in a much faster way. |
| Medical Forms | Healthcare providers also deal with multiple paperwork, starting from insurance claims, patient medical records, test results, and medical prescriptions. All the data from these documents have to be transferred into the system and processed to offer efficient patient care. Moreover, the processing of the medical forms has to be accurate and quick to acquire the benefits from patients’ insurance claims. |
| Internal Documents for Finance, IT, and HR Functions | Other core departments such as finance, IT, and Human resources often deal with heavy paperwork in dealing with everyday work. This may include managing office supplies, updating software licenses, and handling invoices, receipts, and reimbursements. Finance, IT, and HR departments can cut down on manual labor by leveraging document process automation for converting resumes, tax forms, contracts, or any type of unstructured data. |
| Order Fulfillment | As discussed earlier, the finance department has great advantages in automating document processing. Similarly, any department or operation that deals with order fulfillment can significantly benefit from AI document processing solutions. Orders can be acquired through emails, faxes, or any other digital form which can be processed using automated document processing software. |
| Document Fraud Detection | The document software can identify any fraud that will automatically detect any presence of fraud or tampering with the documents or data. This will ensure complete compliance in the process with policies and regulations. |
Automated Document Processing Techniques
Automated document processing can be achieved using several tools and techniques. The conversion of physical or digital files into system-compatible language can be done through the following methods.
- Computer Vision
- Zonal OCR
- Intelligent Document Processing
Computer Vision
Computer vision is a technology where the systems or machines are given the ability to “see” as a means of mimicking human eyesight. Computer vision is one of the fastest-growing technologies that is adopted across industries. As a natural extension of artificial intelligence and deep learning, it is a viable option for processing documents with unstructured data.
Working with computer vision, employees are empowered to see what the naked human eye misses out on. This aids in transforming processes to be efficient and lessens the overwhelming work fatigue for your workforce. Tasks such as data entry, three-way matching, data transfer, etc can be automated saving time and resources.
Computer Vision document processing takes care of –
- Computer vision automates tasks that require human supervision or intervention by detecting pictures and scanning them for data.
- The system generates algorithms required for recognizing patterns in the data scanned from the document.
- The pattern is recognized followed by the capturing of information from the picture.
- The data is then extracted from the image to a system. The recognition and extraction using the software are faster than human labor.
Zonal OCR
Developed from the OCR (Optical Character Recognition) technology, Zonal OCR is a second-generation template-based OCR. As the name suggests, this type of extraction only focuses on the areas that need to be extracted. This is a preferential or zonal extraction.
A regular OCR extraction includes the extraction and conversion of all the data from the images to a digital copy. Here, manual labor cannot be completely exempted as once the OCR process has been done, human intervention is required to extract only the required information from the document. This is where a zonal OCR extraction gains relevance. Zonal OCR focuses on particular fields that need to be extracted from the scanned document. The data can be a particular table, a column, etc.
Zonal OCR document processing navigates through the following steps-
- Zonal OCR identifies the structure of the document scanned with the help of APIs.
- This is followed by the splitting of the software into two individual zones corresponding to the required fields.
- Based on the specifications in the template, the zones are extracted for data conversion.
- Zonal OCR is an adaptable technology that can be trained to ignore graphic elements and also minimize the number of fields extracted.
Intelligent Document Processing (IDP)
Intelligent document processing is the process of automated data capture from multiple documents or sources. The system will then organize all the data gathered for further processing. The IDP is an advanced solution that allows businesses and departments to handle huge volumes of documents and data precisely and instantly.
The benefits, steps, and the evolution of Intelligence Document Processing are discussed in detail in the following sections.
Intelligent Document Processing (IDP) in Detail
The core activities that happen within intelligent document processing are the extraction and organization of the data. In collaboration with OCR, AI, and ML algorithms, IDP automates data processing across complex business operations in diverse formats. Unlike traditional methods of extraction used by OCR technologies, IDP works not only on extraction but also in organizing the extracted data for easy processing. It takes the processing team one step ahead.
The Evolution of Intelligent Document Processing
Intelligent document processing has come a long way, from OCR technologies to artificial intelligence. The processing technology continues to evolve. Let us look at how document processing stands at IDP and generative AI.
Data Entry
For a long period, document processing highly depended on manual labor. This is where employees physically transform the data from the physical documents into the system by manually entering the data. However, the process demanded a full-time effort from the workforce.
OCR
Eventually, OCR provided the necessary solution that would automatically extract data and carry out partial automation of the captured data. The digitalization of documents increased, and business data increased as a result. Hence, the functionality of OCR was developed further to make it more user-friendly. This was considered the next step in the development of document processing solutions. The last version of OCR development included making it easier where the OCR output with the desired data fields.
Intelligent Document Processing
Intelligent document processing became the next big step in data extraction. This not only allowed users to extract data but also organize and transform it for system processing. With this technology, both structured, unstructured, and semi-structured data. As this solution is based on ML technologies, the extraction and transformation are highly accurate. However, the users will need to have extensive training.
IDP and Generative AI
AI has been consistently developing and has brought phenomenal changes in document processing solutions, especially with IDP and generative AI. By integrating with large language models and generative AI, several possibilities have now opened ways for automating every aspect of document processing and management.
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Benefits of Intelligent Document Processing
No matter the industry or the department, IDP garners more benefits than any other document processing technologies discussed in the earlier section. So, why should businesses opt for intelligent document processing? Here are some notable benefits.
- Direct cost savings
- Higher straight-through processing (STP)
- Business scalability
- Boosts process efficiency
- Accuracy uplifted in data extraction
- Business user friendly
- Process any document
- Reduces data processing time
- Accurate data extraction
- Easy integration with a tech stack
How does Intelligent Document Processing Work?
Intelligent document processing software is an advanced solution that uses proficiency technologies such as machine learning. IDP performs document processing through the following steps.
| Step 1: | Document Pre-processing and Ingestion The first stage in IDP is the capturing of the data from several types of content, followed by the processing of it. This stage might include document preparation, data evaluation, and correction. Some document processing software even allows the labeling and annotation of data to ensure accuracy in extraction. |
| Step 2: | Data Classification The second stage is where the data is classified into multiple categories depending on the content type and structure. This is how the documents are routed to the right work queues, with the help of advanced technologies that scale and classify the documents. |
| Step 3: | Data Extraction In the third stage, the machine learning technology enables the processing software to extract data from the scanned documents. This technology can draw data from varied document types. This software can easily do this process in a few seconds. |
| Step 4: | Data Validation and Feedback The fourth stage is where the extracted data must be validated. The validation is done against different metrics such as business rules, document comparisons, and internal or external data. Once this validation is done, the data is taken for further processing. |
| Step 5: | Integrations, Business Intelligence, and Insights In the final stage, all the validated data is then sent to a third-party application for data enrichment, and robotic process automation tools through integration. The data or information collected can be used for decision-making and improving business processes. |
The Core Components of Intelligent Document Processing
The IDP software that you choose to process documents must be the following –
- Cloud-based – Users must be able to access it from anywhere on any device.
- Bulk Processing – Bulk document processing ensures the work is done faster and strategically.
- Scalable – A scalable software will adapt itself to minor changes and can process high volumes of data.
- End-to-end Encryption – End-to-end encryption ensures that there are no data leaks or breaches.
- Third-party Integration – The platform must support on-premise and cloud for effective document management.
Parameters to Choose the Right Document Processing Solution
Investing in the right tool is highly essential. So, what to look for in a document processing solution? Here are some important parameters.
- Document Coverage – For enterprises, piles of documents have to be processed simultaneously, creating no space for delays. This is why it is essential to look for tools that would offer wide document coverage.
- Language Support – A tool that would process data in multiple languages is a crucial parameter, especially for companies that are based across the globe. The tool must be able to provide language support.
- OCR Accuracy – The accuracy of the extraction is an important parameter. The quality of the processing depends on the accuracy of data accuracy. Hence, the tool must perform accurate data extraction.
- Security and Compliance – Security and compliance are crucial for any tool, especially when it deals with sensitive data. Go for a tool that secures data with end-to-end encryption.
- Integration Variety – To make processing seamless, it is ideal to have a solution that would effortlessly integrate other third-party applications.
- Speed of Data Extraction – Just like how accuracy is an essential aspect, the speed at which it extracts, organizes, and converts the data is essential too.
Cflow’s Document Processing Solution for Enterprise
Cflow is one of the most sought automated document processing software that efficiently manages every aspect of document management. With an advanced and extensive set of features, specifically curated for small to large enterprises. Why do businesses prefer Cflow for document processing automation?
Cflow is an intuitive platform that is highly scalable and can be used without using a single line of code. The tool is flexible and adapts to the growing demands of the business world. With a powerful routing and notification system, reports and analytics, and a rules engine. The tool offers the following features for seamless document extraction and processing –
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Transforming Industries using IDP from Cflow
Cflow offers IDP, Intelligent Document Processing, which is an advanced machine learning technology. Cflow’s IDP solutions cater to the needs of some core industries and their business operations.
| Banking and Finance |
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| Healthcare |
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| Insurance |
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| Manufacturing |
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| Accounting and Finance |
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| Human Resources |
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Conclusion
Document processing automation has grown to be an important solution for businesses to manage every document-based process. Automating such manual-intensive processes has garnered huge volumes of benefits that transform document processing into an efficient and error-free process.
Cflow is an outstanding platform that significantly reduces human involvement, making the process less prone to error or compliance risks. With automated workflows navigating the process, documents are easily processed with advanced AI and ML technologies. To partner with Cflow, sign up now!
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