The term “Digital Transformation” encompasses an entire spectrum of tasks and overhauls organizations are exploring to digitize to ascertain business continuity.
In addition to implementing AI-backed cloud ecosystems and intelligent ERPs, digital transformation initiatives also involve a transformation in how companies manage and store their documents.
One pivotal move is adopting intelligent document processing in a company's digital transformation and innovation initiatives. This technology can improve document-related workflows and processes, bolstering an organization’s cybersecurity, operational efficiency, and capacity to innovate for the future.
In terms of numbers, market reports for 2022 say that the value of intelligent document processing is forecasted to reach $5.2 billion in 2027, rising at a lightning-paced CAGR of 37.5% (2022-2027). The numbers reflect the need for organizations to reimagine how their structured and unstructured documents are processed.
How, exactly, does intelligent data processing answer the three key priorities of digital transformation? Let’s find out.
Strengthening Cybersecurity: Safeguarding Digital Assets
According to Cisco's Cybersecurity Preparedness Index 2023, only about 15% of organizations globally have decent cyber-disaster preparedness to manage the aftermath. Meanwhile, approximately 60% of these organizations have experienced cybersecurity breaches in the past 12 months. The numbers aren’t favorable.
Digital transformation and cybersecurity go hand-in-hand if the full potential of the new technologies is to be realized. There are a few key challenges and threats that compromise an organization’s digital assets:
- Social engineering
- Malware
- Unrestricted access
- Lack of DAM systems
- Rights and liabilities
- Storage
Documents form the spine of an organization – contracts, forms, agreements, leases, etc. – and when they are digitized, they are vulnerable to cyber threats. However, the risks and vulnerabilities associated with the physical nature of documents are in even higher jeopardy.
Intelligent document processing systems have a high degree of data encryption and protection protocols. Many such solutions provide real-time monitoring of the users currently engaged in the database.
To further safeguard digitized documentation, IDPs provide advanced authentication procedures and numerous access controls for more streamlined access to digital assets. The platforms apply multifactor authentication and automated policy compliance at the point of access, securing the downstream process.
Increasing Innovation: Driving Growth and Competitive Edge
Innovation is the core of digital transformation – to constantly strive towards improved processing, workflows, collaboration, and data management.
Before the wave of digital transformation, traditional methods of documenting processing would have a dedicated workforce to study and interpret company documentation. However, innovative methods leverage the technologies available today to achieve better outcomes.
To innovate is to explore new and more efficient ways of processing documents. By leveraging the prowess of IDP systems, organizations can make data-driven decisions. For example, AI-driven contract analysis can help organizations identify opportunities for continued business; or potential pitfalls.
AI-enabled IDP systems with continuous integration and agile development techniques allow businesses to expedite the entire document management process, bringing in an added layer of efficiency.
Eliminating Operational Inefficiency: Streamlining Processes
What are the major pain points of organizations in terms of document handling?
Manual entry and questionable data accuracy.
These two aspects present a glaring gap between desired operational efficiency and performance while processing digital or physical documents. The proportionate increase in data volume with digitization and expanded digital presence has created new challenges for the data teams of a business.
According to a VentureBeat report, 75% of the data teams at organizations believe their companies are paying about $43.5 million annually for poor data management and maintenance. The implications of documentation inefficiencies at companies go deeper down the rabbit hole:
- Manual intervention in document handling increases resource use for automatable tasks.
- There is a high likelihood of erroneous entries, loss of information, non-standardized entries, and time constraints with manual processing of documents.
- There is a significant loss in productivity when engaging the workforce in repetitive document-handling tasks.
To truly realize the full scope of the benefits of digital transformation, it is necessary for intelligent data processing systems to intervene. In addition to providing simple automation for data collation, analysis, and forecasting, IDP systems standardize the document data inputs, bringing every bit of extracted information under a universally recognizable/standardized data structure. IDP eliminates the need for human intervention through intelligent automation, reducing resource requirements while boosting workforce productivity on other critical tasks.
The process automation tools enable data professionals to design processes and workflows to optimize resource use. Furthermore, the analytical capabilities of IDP tools help with forecasting and pattern recognition, helping establish quicker processing for similar documents.
Summary: Transforming Organizations with IDP
Cybersecurity, operational efficiency, and innovation are the three pillars of digital transformation. The ultimate goal of digital transformation is to achieve business processes that are secure, streamlined, and agile enough to evolve when required.
Digital transformation has been a step behind in catching on to the documentation processes of organizations. Intelligent document processing systems have the potential to change that with:
- Saving time and resources for businesses.
- Drastically increase the document processing capacity.
- Significantly improve data accuracy.
- Incorporate collaborative environments to digitized documentation (like contracts.)
- Provide actionable insights (like expiry reminders, invoice alerts, etc.)
Intelligent document processing isn't just about digitizing the documents; it also enhances their business value.
FAQs
A pre-fund QC checklist is helpful because it ensures that a mortgage loan meets all regulatory and internal requirements before funding. Catching errors, inconsistencies, or compliance issues early reduces the risk of loan defects, fraud, and potential legal problems. This proactive approach enhances loan quality, minimizes costly delays, and improves investor confidence.
A pre-fund QC checklist is a set of guidelines and criteria used to review and verify the accuracy, compliance, and completeness of a mortgage loan before funds are disbursed. It ensures that the loan meets regulatory requirements and internal standards, reducing the risk of errors and fraud.
IDP (Intelligent Document Processing) enhances audit QC by automatically extracting and analyzing data from loan files and documents, ensuring accuracy, compliance, and quality. It streamlines the review process, reduces errors, and ensures that all documentation meets regulatory standards and company policies, making audits more efficient and reliable.
Yes, IDP uses advanced image processing techniques to enhance low-quality documents, improving data extraction accuracy even in challenging conditions.
IDP efficiently processes both structured and unstructured data, enabling businesses to extract relevant information from various document types seamlessly.
IDP combines advanced AI algorithms with OCR to enhance accuracy, allowing for better understanding of document context and complex layouts.
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