OCR vs intelligent document processing (IDP): Which one is best for your business?January 26, 2023
As a modern business, you simply cannot escape the need for translating physical documents and images into digital representations that can be easily stored and edited. Anything from lead management to invoicing and even onboarding processes can be streamlined with the effective use of document processing and be an invaluable asset in the quest for operational efficiency.
There is no good reason for any organization in 2023 to continue using manual data capture. It’s error-prone, resource-heavy, and frankly, a waste of precious time. Data entry and data capture will always be a vital cog in the wheels of any successful business, and doing so manually will likely leave you exposed to all the pitfalls of human error and lead to security breaches and costly and time-consuming processes.
As many as 95% of all businesses have to sort and store unstructured data regularly. Shifting to automatic document recognition should be a priority for any business that values accuracy and productivity and wants to give itself a competitive edge. All that’s left to decide is whether to deploy an OCR or IDP solution, and we’re going to take a look at the fundamental differences between the two and which one has the ability to turn a tedious and expensive process into a simple one that frees up time and space for more high-quality work.
The difference between OCR vs IDP
Firstly, OCR stands for ‘optical character recognition’ whereas IDP refers to ‘intelligent document processing’. Now they may sound like the same thing, and in some ways, they are. But they differ in a few key considerations. An OCR solution gives you the ability to read and then convert documents and transform them into a digital version by what is essentially a ‘scan and paste’ method. On the other hand, IDPs are a far more sophisticated, reliable, and accurate means of document processing that uses artificial intelligence to extract and convert your vital information.
Another thing that sets IDP and OCR is the former’s ability to understand and render variation, something OCRs struggle to deal with in even the slightest deviation. OCRs also can’t learn by their own means, while IDP requires minimal human intervention and can learn on their own and provide continual data streams.
So what does an OCR do for your business?
Should you be an organization that is dependent on older forms of media, such as books, newspapers, and magazines, an OCR can help you translate them into a digital copy. This can be especially beneficial if the text itself has become difficult to read or damaged in some way. OCR works by scanning your documents as an image, and there are a few methods by which you can decipher your text, including barcoding and machine learning-assisted character recognition.
While it’s true that an OCR can save you time and money, it’s by no means the most advanced or complex or advanced method of data extraction. It’s also quite versatile in its application, and basically, any image containing the information you’re looking to digitize will benefit from using a good OCR. That being said, OCR solutions are not a new technology, and it’s been left largely unchanged since they took off back in the 1970s. A realistic OCR definition would be that it’s a reliable, if aging, technology that has a place in particular business processes that relate to the preservation of older media and storing them safely and timeously in their digital version.
And what about an IDP?
Accurate and secure data is at the heart of every business in the digital age, and this is where IDP really comes into its own. There are several ways that an IDP can help you transform your data extraction efforts and provide you with a more modern solution with enterprise-ready tools explicitly designed for business entities looking to make light work of what can be a very tedious and costly exercise. Let’s take a look at some of the ways intelligent document recognition can help your business.
● Process automation
Always remember the power of automation when it comes to repetitive low-value tasks. IDP doesn’t just free up employees to do more complex jobs; it converts and extracts large quantities of relevant data in a matter of seconds.
● Better accuracy
One of the core efficiencies of any IDP is leveraging its AI and ML capabilities to eliminate errors completely, check for any syntax issues, and ensure all extraction processes are completed with the highest accuracy.
● Excellent ROI
The returns on deploying intelligent data processing can be keenly felt in the level of productivity across your organization and save priceless time and resources. Furthermore, revenue streams will grow as the cost of operational tasks can be kept to a minimum by increasing cost-saving potential by up to 70%.
● Data security
Due to its intimate relationship with AI and ML algorithms, IDP can learn to automatically spot any unauthorized or suspicious attempts to gain access to your data. In 2023, data security is a big issue, and ensuring yours is safe is paramount.
● Speedy Digitization
Any IDP definition should refer to the fact that you can speed up your data extraction by up to 10 times. With AI-native, IDPs can transform your business into a paperless entity with direct access to a wealth of insights that help the entire organization work faster, more efficiently, and more accurately.
Take your document processing to a whole new level
When it comes to providing an enterprise-ready IDP, PROVEN Solution can rely on and incorporate industry-leading AI capabilities to ensure your data extraction is secure, speedy, and highly accurate. Sanad is our IDP solution that is so much more than an intelligent OCR. It’s an invaluable member of your team that possesses the ability to translate documents into Arabic and even has an Invoice Mode that can extract vital financial and administrative details at the click of a button.
If you want to simplify your workflows, ensure scalability and accuracy, and take a massive leap in your data extraction efforts, then Sanad is the solution for your business. Talk to us about how we can take your organization into the future.