OCR (Optical Character Recognition) and IDP (Intelligent Document Processing) are two technologies used for document processing and data extraction. OCR technology allows machines to read and interpret characters from scanned images or documents, converting them into machine-readable text.  

IDP, on the other hand, uses AI and machine learning algorithms to process and extract data from various types of documents, including unstructured data. While OCR is primarily used for converting images to text, IDP can extract data from a variety of formats and structures.  

‍

Explore more: What is the Difference between OCR and IDP?

What is Optical Character Recognition (OCR)?

OCR (Optical Character Recognition) is a technology that allows computers to recognize and interpret characters from scanned images or documents, converting them into machine-readable text. OCR technology uses complex algorithms to analyze and identify individual characters in an image, map them to their corresponding symbols, and then convert them into editable text.

The process of OCR involves several steps, including image preprocessing, character segmentation, and character recognition. During image preprocessing, the OCR software applies filters to enhance the image quality and remove any noise or artifacts that may interfere with character recognition. In character segmentation, the software identifies individual characters within the image and separates them from each other.  

Finally, during character recognition, the software matches each character to its corresponding symbol in a reference database, creating editable text that can be used for further processing or analysis.

The benefits of OCR technology are numerous. OCR can save time and reduce errors in data entry by automatically converting scanned images or documents into editable text. This can be particularly useful for industries such as healthcare, finance, and legal services, where large volumes of data need to be processed quickly and accurately.  

OCR can also improve accessibility for visually impaired individuals by converting printed materials into digital text that can be read aloud using text-to-speech software.  

Read more: Why you need to switch to intelligent document processing to level up your hospitality services?

Why do you need OCR?

OCR technology can be an essential tool for companies that deal with large volumes of documents in their day-to-day operations. By using OCR for document management, companies can save time and reduce errors in data entry, increase efficiency in document processing, and improve accessibility to information. Here are some specific reasons why a company may need OCR for document management:

• Improved efficiency: OCR technology can significantly speed up the process of document processing by automatically converting scanned images or documents into machine-readable text, reducing the need for manual data entry.

• Reduced errors: OCR technology can help to eliminate errors that may occur during manual data entry, improving accuracy in document processing and reducing the risk of costly mistakes.
• Increased accessibility: OCR technology can make it easier to access and search for specific information within documents, making it easier to locate and retrieve important data.
• Cost savings: By automating the document processing workflow, companies can save on labor costs and reduce the need for physical storage space.
• Regulatory compliance: OCR technology can help companies to comply with regulatory requirements by ensuring that documents are properly stored, organized, and easily retrievable.

What is (Intelligent Document Processing) IDP?

IDP (Intelligent Document Processing) is a technology that uses artificial intelligence and machine learning algorithms to process and extract data from various types of documents, including unstructured data. IDP can be used to automate document processing workflows and extract data from a range of sources, including scanned images, emails, PDFs, and other digital documents.

The working of IDP involves several stages, including document classification, data extraction, and data validation. In document classification, the software uses machine learning algorithms to classify incoming documents into predefined categories based on their content and structure.  

Once a document is classified, the software then uses natural language processing (NLP) techniques to extract relevant data from the document. This data is then validated against predefined business rules and stored in a database or other data management system.

The benefits of IDP are numerous. IDP can help to reduce manual processing time and errors by automating the document processing workflow. IDP can also help companies to extract insights and value from unstructured data, improving decision-making and operational efficiency. Other benefits of IDP include:

• Increased accuracy: IDP can improve the accuracy of data extraction by using machine learning algorithms to automatically identify and extract relevant data from documents.
• Improved efficiency: IDP can help to reduce manual processing time and improve overall efficiency in document processing workflows.
• Cost savings: By automating the document processing workflow, companies can save on labor costs and reduce the need for physical storage space.
• Improved compliance: IDP can help companies to comply with regulatory requirements by ensuring that documents are properly processed and data is accurately extracted and stored.

Explore more: Vitality of Intelligent Document Processing in Agriculture

Why do you need IDP?

Businesses need IDP (Intelligent Document Processing) for a number of reasons. Here are some specific reasons why IDP can be a valuable tool for businesses:

• Automating document processing workflows: IDP can help businesses to automate document processing workflows, reducing the need for manual data entry and speeding up the processing time for incoming documents.

• Extracting value from unstructured data: IDP can help businesses to extract insights and value from unstructured data sources such as emails, PDFs, and other digital documents.
• Improving accuracy: IDP can improve the accuracy of data extraction by using machine learning algorithms to automatically identify and extract relevant data from documents, reducing the risk of errors and improving overall data quality.
• Increasing efficiency: IDP can help businesses to increase efficiency in document processing workflows, reducing the time and effort required to process large volumes of documents.
• Enhancing decision-making: IDP can help businesses to make more informed decisions by providing access to valuable insights and data extracted from unstructured documents.
• Ensuring compliance: IDP can help businesses to ensure compliance with regulatory requirements by ensuring that documents are processed accurately and data is properly stored and managed.

Conclusion

Businesses should consider adopting IDP (Intelligent Document Processing) as it can provide numerous benefits for document management processes. IDP can help businesses to automate document processing workflows, extract insights from unstructured data sources, improve accuracy, increase efficiency, enhance decision-making, and ensure compliance with regulatory requirements.

By leveraging machine learning and NLP techniques, IDP can help businesses to reduce manual processing time and errors, improve the accuracy of data extraction, and extract valuable insights from unstructured documents. This can ultimately lead to cost savings, improved operational efficiency, and better decision-making.

FAQs on Intelligent Document Processing

1. What types of documents can IDP process?

IDP can process various types of documents, including scanned images, PDFs, emails, and other digital documents. It can also extract data from unstructured sources such as social media, audio, and video files.

2. How long does it take to implement an IDP solution?

The time it takes to implement an IDP solution can vary depending on the complexity of the document management workflow and the size of the organization. However, with modern cloud-based solutions, businesses can get up and running with IDP in a matter of days or weeks, rather than months.

3. Is IDP suitable for small businesses?

IDP can be a valuable tool for businesses of all sizes, including small businesses. In fact, for small businesses, IDP can be particularly beneficial as it can help to streamline document processing workflows and reduce the need for manual data entry, freeing up time and resources for other business-critical tasks.

AmyGB.ai is an AI research company that builds Intelligent Document Processing software to solve real world problems using advanced technology such as Computer Vision, Machine Learning and Natural Language Processing. Using proprietary AI technology with zero third-party dependency, AmyGB.ai’s products are set to revolutionize document heavy business processes by streamlining multiple channels so as to deliver end-to-end process automation. They aim to move towards a paper free, efficient and intelligent process. In addition, whether you're looking for a custom AI IDP application or seeking to integrate IDP solutions into your existing systems, AmyGB.ai has the experience and expertise to help you achieve your goals.

‍

‍