Intelligent Document Processing (IDP) vs. Robotic Process Automation (RPA): Comparative Study for Business Process Automation
May 4th, 2023
Intelligent Document Processing (IDP) and Robotic Process Automation (RPA) have emerged as two prominent technologies for automating business processes in recent years. While both technologies aim to increase efficiency and reduce errors in business processes, there is a lack of understanding about their differences and effective application.
This research article presents a comparative study of IDP and RPA, exploring their definitions, applications, benefits, and limitations.
The study was conducted through a comprehensive review of existing literature, case studies. Results indicate that while IDP and RPA share some similarities, they are distinct technologies with different capabilities and limitations.
Businesses have been increasingly exploring ways to automate their processes to improve efficiency and reduce costs. Two promising approaches are the use of Intelligent Document Processing (IDP) and Robotic Process Automation (RPA), which employ machine learning algorithms and artificial intelligence to streamline routine tasks.
IDP is a technology that allows businesses to extract valuable data from unstructured documents such as invoices, purchase orders, and receipts. It involves the use of Optical Character Recognition (OCR) technology to convert images of text into machine-readable format, and Natural Language Processing (NLP) techniques to interpret and extract meaningful information from the text. RPA, on the other hand, involves the use of software robots to automate repetitive tasks such as data entry, file transfers, and report generation. These robots can be programmed to perform tasks just like human workers, and can work 24/7 without needing breaks or vacations.
Despite the promise of both IDP and RPA, it is unclear which approach is more effective for automating business processes. In this comparative study, we will evaluate the performance of IDP and RPA in automating various business processes, including data entry, document management, and customer service. We will compare the accuracy, efficiency, and cost-effectiveness of the two approaches, and provide recommendations for businesses looking to adopt automation technologies.
II. Literature review
Numerous studies have investigated the potential of Intelligent Document Processing (IDP) and Robotic Process Automation (RPA) to improve business processes across various industries. The studies consistently show that both Both IDP and RPA have the potential to automate and streamline business processes, resulting in increased efficiency and cost savings.
However, there are significant differences between the two technologies, and it is important for businesses to understand these differences before choosing which technology to implement. Several studies have compared the effectiveness of IDP and RPA in automating various business processes. A study by HFS Research found that automating the procurement process using RPA can result in a 50-70 per cent reduction in processing time and a 30-40 per cent reduction in procurement costs. This study demonstrated the significant cost savings that can be achieved through RPA automation.