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.

I. Introduction

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.

Another study by Forrester Research found that automating the mortgage underwriting process using IDP can reduce the time it takes to process a mortgage application from 50 days to just a few hours, resulting in a 70-80 per cent reduction in processing time. This study highlighted the potential of IDP to significantly reduce processing time for complex, document-intensive processes.

However, other studies have found that the effectiveness of IDP and RPA can vary depending on the specific business process being automated. For example, a study by Accenture found that IDP was particularly effective in industries such as healthcare and finance, where there is a lot of unstructured data that needs to be processed.

This study demonstrated the potential of IDP to improve the accuracy and speed of document processing in these industries. In contrast, RPA has been widely used in industries such as manufacturing, finance, and healthcare, where there are many repetitive tasks that can be automated.

Studies have shown that RPA can significantly reduce processing time, increase productivity, and reduce costs. For instance, a UiPath study found that RPA reduced order processing time by 67 per cent. This study demonstrated the potential of RPA to automate repetitive, rule-based tasks and improve process efficiency. Overall, these studies provide evidence of the potential benefits of IDP and RPA in automating business processes. However, businesses must carefully consider the specific requirements of their processes and choose the technology that best meets their needs.

While IDP is effective in processing complex, document intensive processes, RPA is ideal for automating repetitive, rule-based tasks. By understanding the differences between these two technologies, businesses can make informed decisions about which technology to implement and achieve significant cost savings and efficiency gains.

III. Methods

This comparative study was conducted through a comprehensive review of existing literature, case studies. The literature search was carried out on academic databases such as Google Scholar, ScienceDirect, and IEEE Xplore to find relevant studies on IDP and RPA. Reports from consulting firms such as Forrester, Accenture, and Deloitte were also reviewed.

The keywords used in the literature search were ”Intelligent Document Processing,” ”Robotic Process Automation,” ”Business Process Automation,” and ”Automation Technologies.” The search was limited to publications in English, and studies published between 2015 and 2023 were included. To compare the performance of IDP and RPA, we focused on three key factors: accuracy, efficiency, and cost-effectiveness.

We analyzed case studies and empirical studies to evaluate the performance of these technologies in different business processes, such as data entry, document management, and customer service.

1. Accuracy

Our study found that both IDP and RPA have the potential to significantly improve the accuracy of business processes. By automating tasks and reducing the need for human input, these technologies can help minimize errors and inconsistencies in data processing and documentation.

2. Efficiency

IDP and RPA were also found to significantly enhance the efficiency of business processes. By automating repetitive and time-consuming tasks, such as data entry and document processing, these technologies can save significant amounts of time and increase productivity.

3. Cost-effectiveness

In addition to improving accuracy and efficiency, IDP and RPA can also be cost-effective solutions for businesses. By reducing the need for manual labor and streamlining processes, these technologies can help cut down on labor costs and increase profitability.

However, it should be noted that the initial investment in implementing these technologies may require significant upfront costs.

IV. Similarities and Differences

While IDP and RPA share some similarities in their ability to automate business processes, they are distinct technologies with different capabilities and limitations. One similarity between IDP and RPA is their ability to reduce errors and increase efficiency in business processes. Both technologies can perform tasks faster and more accurately than humans, resulting in significant time and cost savings for businesses.

However, there are also several differences between IDP and RPA. One major difference is their ability to handle structured and unstructured data. IDP is designed to handle unstructured data and documents, while RPA is designed to handle structured data and repetitive tasks.

For example, IDP can extract information from handwritten documents or low-quality scans, while RPA may struggle with these tasks. Another difference between IDP and RPA is their level of complexity.

IDP is generally more complex and requires more expertise in machine learning and natural language processing, while RPA is more straightforward and can be implemented with minimal technical knowledge.

Finally, there is a difference in the level of customization that can be achieved with IDP and RPA. IDP can be customized to handle specific types of unstructured data and documents, while RPA can be customized to perform specific tasks and processes.

V. Conclusion

Intelligent Document Processing (IDP) and Robotic Process Automation (RPA) are two promising technologies for automating business processes. While both technologies aim to increase efficiency and reduce errors, they are distinct technologies with different capabilities and limitations.

Our comparative study of IDP and RPA found that IDP is effective for handling unstructured data and documents, while RPA is more suitable for structured and repetitive tasks. Both technologies have their benefits and limitations, and businesses should carefully consider their specific needs and goals before selecting an automation technology.

References

1 ijnsmans, J. (2022, August 3). RPA vs IDP: What’s the difference and how can they work together? Automation Anywhere.

2 rgs AI. (2021, January 21). Robotic process automation (RPA) vs. intelligent document processing (IDP).

3 utomation Hero. (n.d.). What’s the difference between RPA vs. Intelligent Document Processing (IDP)?

Intelligent Document Processing (IDP) vs. Robotic Process Automation (RPA): Comparative Study for Business Process Automation

May 4th, 2023

I. Introduction

II. Literature review

III. Methods

1. Accuracy

2. Efficiency

3. Cost-effectiveness

IV. Similarities and Differences

V. Conclusion

References

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