How Intelligent Document Processing Improves Data Quality

Intelligent document processing helps convert structured, semi-structured, and unstructured data from various document formats into digitalised and usable information. It scans, classifies, identifies, and extracts data using various technologies, including: 

• Optical Character Recognition
• Computer vision
• Machine learning
• Artificial intelligence

IDP solutions extract, validate, and integrate high-quality data into relevant business processes. They also comprehend a broad range of document formats and their content.

Furthermore, IDP leverages human-in-the-loop machine learning to handle exceptions and continuously train and enhance its skills, hence eliminating the drawbacks of legacy document capture solutions such as RPA and OCR. 

How IDP Improves Data Quality

Data Extraction Automation

Valuable data from various documents can be automatically extracted via Intelligent Document Processing. IDP solutions can extract important data from different formats using Optical Character Recognition, including:

• Names
• Addresses
• Invoice numbers
• Item descriptions
  

This increases data accuracy and lowers the possibility of human error during data entry.

Verification of Data

To verify the authenticity of the information, IDP systems can cross-reference the extracted data with your current database and reference materials that are relevant to your business. This guarantees data quality and consistency and notifies you of any problems or irregularities so you may take appropriate action.

Error Mitigation

According to an Institute of Finance and Management survey, mistakes occur in nearly 40% of invoices. IDP reduces these errors by eliminating the need for manual data entry and increasing data accuracy. Furthermore, the system can identify inconsistent invoices with the assistance of human assessment for exceptions and anomalies. IDP systems have the ability to “learn” from human corrections, which improves accuracy even further.

Data Enrichment

By adding new data from databases or other external sources to the retrieved information, IDP can improve the quality of the data. This guarantees that the processed data is more valuable and comprehensive. 

Understanding Context

IDP has features like Natural Language Processing (NLP) that further add to the efficiency of the solution. The system can comprehend the context in unstructured data by utilising NLP techniques. It can distinguish between shipping and billing addresses, for instance, or determine the terms of payment from the surrounding language. The system may convert invoices into the user’s common language if they are received in different languages.

Validation Based on Rules

Business rules can be built into the IDP systems to check data against predetermined standards. If the extracted data does not adhere to these guidelines, which may include particular date formats or numerical ranges, it may be marked for examination or correction.

Reduce Manual Interventions

High levels of accuracy in data extraction and processing minimise the need for human interaction, saving time and money while lowering the possibility of errors being introduced during manual handling.

Quickness and Effectiveness

IDP dramatically shortens the time it takes to process documents, which leads to quicker responses and decision-making. This is important in situations where prompt action is necessary.

Data Governance 

To maintain security, quality, and compliance, data assets inside an organisation must be managed and under control. This is known as data governance. IDP software can standardise data structures in invoice documents to guarantee uniformity in unit measures, dates, and currency formats, improving data quality and reporting.

Compliance and Audit Trail

IDP systems keep track of every step of the processing process, including manual interventions, data extraction, and validation. Because of this transparency, mistakes can be monitored and fixed as necessary. IDP systems can further minimise errors over time by iteratively improving validation rules and algorithms based on error analysis and feedback.

The Bottom Line

Intelligent Document Processing is a powerful tool for improving the quality of data. Businesses can recognise their full potential by automating document processing and extracting precise, comprehensive, and consistent data. As data becomes increasingly important, IDP will be a vital tool for businesses aiming for excellence.