Learn how automated document processing software is transforming business operations by automating tasks like invoice and order processing, helping companies save time and reduce costs.
Did you know that businesses spend an average of $20 to file a document and can waste 30% to 40% of their time searching for misfiled documents? Moreover, companies that automate their document processes report a 20% improvement in overall productivity.
For many organizations, especially those dealing with large volumes of documents, manual data entry, and document processing are not just time-consuming—they’re expensive. That’s where automated document processing software comes into play. This innovative solution takes the hassle out of handling documents by leveraging technologies like Optical Character Recognition (OCR) and Machine Learning (ML) to scan, extract, and organize data with minimal human intervention.
The demand for automation is booming. In fact, the global market for document management systems is projected to grow from $5.5 billion in 2020 to $10.17 billion by 2026. These figures highlight how crucial automation has become in driving operational efficiency and reducing costs across industries. In this article, we go further, as we explore:
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Manual data entry is highly prone to errors. These can include spelling mistakes, incorrect formatting, and misreading information on screen.
The error rate for manual data entry can be as high as 40% according to some reports. Even small errors can have significant consequences — for example, entering inaccurate figures in accounting systems can lead to payment delays and late fees1.
Manual document processing often leads to inconsistencies across different documents, such as using different terms for the same concept, inconsistent formatting, fonts, colors, etc, and different numbering and referencing systems. This lack of consistency makes documentation harder to read, understand, and maintain.
Manual processes can result in information that is incorrect or contradicts the actual product/process. Outdated information that hasn’t been updated to reflect changes makes the documentation unreliable and can cause problems in development, testing, and maintenance.
Common structural issues include documents that are too long or too short, lack of logical sections and subsections, no clear introduction or conclusion, and incoherent flow of topics. Poor structure makes documentation difficult to navigate and reduces its effectiveness.
By understanding these common pitfalls, you can take steps to improve their document processing accuracy and efficiency, whether through better manual practices or by implementing automated solutions.
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Efficiency is the king — agree? Automated document processing software significantly boosts productivity by streamlining repetitive tasks. Imagine a world where invoices are processed in seconds instead of hours.
Document automation software can quickly handle large volumes of documents, allowing your team to focus on more strategic initiatives rather than getting bogged down in paperwork.
Another major advantage is the reduction of manual errors. Human error is inevitable, especially when dealing with tedious data entry tasks. Automated systems minimize these mistakes, ensuring that information is captured accurately every time. This not only saves time but also enhances the overall quality of your data.
Improved data accuracy cannot be overstated. With advanced technologies like Optical Character Recognition (OCR) and machine learning, automated document processing ensures that data is extracted and stored correctly. This leads to better decision-making and more reliable reporting. In a world where data drives strategy, having accurate information at your fingertips is invaluable.
Cost savings are another compelling benefit. By automating document workflows, businesses can reduce labor costs associated with manual processing. Less time spent on administrative tasks means more resources can be allocated to growth and innovation. Over time, these savings can add up significantly, making a strong case for investing in automated solutions.
In summary, automated document processing offers increased efficiency, reduced errors, significant cost savings, and enhanced data accuracy—all essential elements for any business looking to thrive in today’s competitive landscape. Embracing this technology is not just a trend; it’s a smart move toward a more productive future.
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There are various types of Automated Document Processing Software available, each designed to handle specific tasks and workflows. Understanding these different types can help businesses choose the best solution based on their needs. Here’s a breakdown of the most common types:
OCR software is designed to convert different types of documents—such as scanned paper documents, PDFs, or images—into editable and searchable data. It works by recognizing the characters (letters and numbers) in the document and turning them into text that computers can process. This type of software is crucial for digitizing hard copies of documents.
Examples: ABBYY FineReader, Adobe Acrobat’s OCR feature, Artsyl docAlpha
Use Case: Converting a large stack of paper contracts into searchable, digital files.
Intelligent Document Processing goes beyond simple OCR. It uses artificial intelligence (AI) techniques such as machine learning (ML) and natural language processing (NLP) to read and understand unstructured data. IDP software can extract relevant data points, classify documents, and even understand the context to a certain degree.
Examples: UiPath Document Understanding, Kofax, Hyperscience.
Use Case: Processing invoices, purchase orders, and other forms that come in varied formats but need to be automatically categorized and data-extracted for financial systems.
READ MORE: Intelligent Document Processing for Back-Office
A Document Management System is used to store, manage, and track digital documents. Many DMS solutions incorporate automated document processing features, such as version control, automated workflows, and OCR for scanning and categorizing documents.
Examples: SharePoint, DocuWare, M-Files.
Use Case: Organizing and managing legal or HR documents while ensuring compliance with industry regulations.
Robotic Process Automation (RPA) software can automate repetitive tasks such as copying, pasting, and transferring data between systems. When combined with document processing features like OCR, RPA can automate end-to-end workflows involving documents, such as invoice processing, employee onboarding, and more.
Examples: UiPath, Blue Prism, Automation Anywhere.
Use Case: Automating the extraction of data from invoices and feeding it into an ERP system.
ECM systems offer a broader scope than DMS. They include document processing capabilities but also manage the entire lifecycle of content within an organization. This can include document creation, capture, indexing, storage, retrieval, and disposal. ECMs often integrate with other enterprise systems for workflow automation.
Examples: OpenText, IBM FileNet, Laserfiche.
Use Case: Managing all company documents and digital assets with automated processes for approval, archiving, and compliance.
Cloud-based solutions offer flexibility, scalability, and remote access. These systems allow businesses to process documents without the need for extensive on-premises infrastructure. Many cloud-based solutions offer built-in AI and machine learning capabilities to automate document workflows.
Examples: Google Cloud Document AI, Microsoft Azure Form Recognizer, Amazon Textract.
Use Case: Remote teams can access, process, and collaborate on documents seamlessly from anywhere, with real-time data extraction and processing.
Each type of document processing software comes with its own strengths and use cases, helping businesses streamline their document-heavy tasks, improve efficiency, and reduce costs. When choosing the right solution, it’s essential to consider the volume of documents, level of complexity, and integration needs within your organization.
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Automated document processing can significantly reduce security risks in several ways:
Automated systems employ robust security measures to protect sensitive information:
By minimizing manual handling, automated processing limits potential security breaches. This happens because fewer touchpoints mean less opportunity for human error or malicious actions. Sensitive tasks are handled by the system rather than multiple employees, decreasing the risk of data leaks. In addition, automated systems can detect and alert suspicious activities or anomalies, enhancing proactive security measures.
Automated document processing helps organizations stay compliant with evolving regulations. Systems can be updated to adapt to changing laws and regulations, ensuring ongoing compliance, while audit trails are automatically maintained, facilitating internal and external audits. Standardized document creation and storage processes help meet industry-specific compliance requirements.
Automated systems offer more secure and efficient document management. Documents can be automatically filed in specific storage repositories without the need for manual downloads or transfers. Cloud-based storage with enterprise-grade security provides better protection than local storage systems. Efficient retrieval systems reduce the risk of documents being misplaced or accessed by unauthorized personnel.
By reducing manual errors, automated processing maintains data integrity and minimizes manual entry errors to ensure more accurate and reliable document content. In addition, digital signatures and blockchain technology can be implemented to certify document authenticity and prevent tampering.
In conclusion, automated document processing significantly enhances security by implementing advanced protection measures, reducing human exposure to sensitive data, improving compliance, ensuring secure storage and retrieval, and maintaining data accuracy and integrity. These benefits make it a crucial tool for organizations looking to mitigate security risks in their document management processes.
Here are some real-life industry examples of how Automated Document Processing Software is being used across various sectors.
A global retail company was handling thousands of invoices every month, often facing delays in payment due to manual entry errors and time-consuming approvals. By implementing InvoiceAction (a specialized solution built on docAlpha), they automated the entire accounts payable process. The system automatically captured invoices from emails, extracted relevant data (like amounts, vendor information, and due dates), and routed the invoices through predefined approval workflows.
Result: The retailer reduced invoice processing time by 70%, virtually eliminated manual data entry errors, and took advantage of early payment discounts that were previously missed due to delays.
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A large hospital system faced challenges managing vast amounts of patient documentation, including intake forms, lab results, and insurance claims. They deployed OCR-based document processing software integrated with their electronic health records (EHR) system. The solution automatically captured, classified, and extracted patient information from both scanned documents and electronic records, ensuring that data was correctly entered into the hospital’s system.
Result: The hospital reduced document processing time by 50%, improved the accuracy of patient information, and shortened the time taken to process insurance claims, leading to faster reimbursements.
A large manufacturer that processed hundreds of customer orders daily was experiencing delays due to manual data entry and paper-based order forms. By integrating OrderAction with their existing Enterprise Resource Planning (ERP) system, they automated the order intake process.
Automated Document Processing Software captured order forms sent via email, extracted critical data (such as order numbers, quantities, and product types), and automatically entered the information into the ERP system for immediate processing.
Result: The manufacturer reduced order processing times by 80%, minimized manual errors, and increased the speed of order fulfillment, leading to better customer satisfaction.
A law firm that managed a vast number of legal contracts was burdened by the time-consuming task of manually reviewing, filing, and tracking documents. They implemented an Intelligent Document Processing (IDP) solution that automated the capture and classification of contracts. The software could extract key clauses, such as expiration dates and legal terms, and automatically route contracts to the appropriate lawyer or department for review.
Result: The firm decreased contract review times by 60%, ensured timely renewals by automating notifications for contract expiration dates, and reduced legal risks associated with manual errors.
A logistics company handling international shipments was processing a large volume of bills of lading, customs forms, and freight invoices manually. By integrating a document processing solution, they automated the capture and classification of these documents.
The automated document processing system extracted data such as shipping addresses, product descriptions, and weights, then automatically entered the data into the company’s logistics management system for tracking and invoicing.
Result: Processing times were cut by 50%, and accuracy improved significantly. The logistics company also reduced manual paperwork errors that previously led to shipment delays.
A government tax department was inundated with thousands of paper tax submissions every month, resulting in slow processing times and delayed refunds. By implementing OCR and document management software, the department automated the capture of tax forms, extracting data such as income details, deductions, and tax identification numbers. The system validated this information against existing databases and flagged discrepancies automatically.
Result: The department improved processing time by 40%, significantly reduced manual data entry errors, and issued refunds much faster than before.
An insurance company was struggling with slow claims processing times due to the manual review of forms and documents. By adopting an Intelligent Document Processing (IDP) solution, the company automated the capture, classification, and extraction of data from claim forms and supporting documents (such as medical bills and accident reports). The system automatically validated this information against policy terms and conditions.
Result: Claims processing times were reduced by 65%, improving customer satisfaction while also allowing the company to process a higher volume of claims without increasing staff.
As you can see, across industries, automated document processing software is driving efficiency, reducing errors, and saving time and costs. Whether it’s automating invoices in retail, processing orders in manufacturing, or managing legal documents in law firms, these solutions are proving essential in modern business operations.
By automating these time-consuming processes, companies can focus on delivering better services and products while reducing operational bottlenecks.
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Here are some best practices for integrating and getting started with automated document processing software:
Assess Your Current Workflow
Before implementing any new system, it’s crucial to:
Choose the Right Tools
When selecting document processing automation tools, look for scalable and flexible solutions that can grow with your business. Ensure they integrate seamlessly with your existing systems but consider industry-specific features that align with your requirements.
To maintain data integrity and protect sensitive information:
For smooth integration with existing systems:
Before full-scale implementation, begin with a small-scale pilot project to test the automation on a subset of documents or processes. Gather feedback to identify any issues and use insights from the pilot to refine your approach before expanding.
After implementation, establish key performance indicators (KPIs) to track efficiency and effectiveness, regularly review automation workflows, and optimize as needed.
Stay updated on new features and capabilities of your chosen solution but be prepared to adjust processes as your business evolves.
By following these best practices, you can ensure a smoother integration of automated document processing software and maximize its benefits for your organization. Remember that implementation is an ongoing process, requiring continuous refinement and optimization to achieve the best results.
Whether you’re in finance, healthcare, logistics, or any other document-heavy industry, automating your document processes can be the key to staying ahead in a rapidly evolving world. Automated document processing software is transforming the way organizations handle their critical data, freeing teams from the drudgery of manual processes and unlocking the potential for greater productivity and cost savings.
By automating tasks like invoice processing, order management, and document classification, businesses can streamline operations, reduce errors, and focus on what really matters: growth and innovation.
So, isn’t it time to leave the manual paperwork behind? Explore the power of intelligent document process automation and take your organization to the next level.
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