With so many technologies falling under the intelligent automation umbrella, not to mention digital transformation, it can be hard to tell one apart from the other. This is only exasperated by the rapid evolution of automated document processing (ADP) technologies, with intelligent document processing (IDP) being one of the newer developments. Naturally, the question on the minds of many is “What’s the difference between IDP and the traditional document processing we already have?”

So, let’s answer that. Keep reading to learn what IDP does, how it differs from other document processing technologies, and whether it could fit your organization’s unique needs.

IDP vs. Traditional Document Processing

IDP vs. Traditional Document Processing: What’s the Difference Between IDP and Traditional Document Processing?

Both IDP and ADP are technologies that aim to streamline document processing, but they take different approaches.

The “short answer” is that ADP is a more limited, simplified version of IDP, while IDP can handle a broader range of activities and perform them more effectively.

  • To get specific, ADP is fantastic at handling repetitive tasks like alphabetizing documents and extracting information from structured documents that have the same layout.
  • On the other hand, IDP taps into AI and machine learning to process unstructured or semi-structured documents with differing designs, and it learns as it goes, becoming increasingly accurate and efficient as time goes on.

Want the “long answer?” Let’s take it even further and compare and contrast both technology’s core capabilities:

Traditional Document Processing

Data Formats: ADP uses rules-based processing and traditional automation technology.

Accuracy and Error Management: ADP can accomplish fixed accuracy depending on the rules you define ahead of time and can handle basic errors on their own without human intervention.

Flexibility and Adaptability: ADP’s adaptability is limited, as it can’t independently learn from experience, requiring manual updates instead.

Ease of Implementation: Because ADP is a relatively simpler technology compared with IDP, it’s usually easier and faster to implement and learn how to use.

Security: ADP follows basic security protocols but lacks thorough proactive measures that newer, more advanced systems like IDP have.

Integration: ADP technology can integrate with some systems, but it’s not always a given, so it’s worth investigating closely before investing in ADP to ensure it connects with your systems.

Data Extraction: Data extraction often requires manual human intervention for ADP.

Intelligent Document Processing

Data Formats: Unlike ADP and other traditional methods, IDP can handle structured, semi-structured, and unstructured data, offering more flexibility and capabilities. This allows it to handle more complex document processing requirements compared with ADP.

Accuracy and Error Management: IDP can accomplish continuous improvement using machine learning. When errors occur, it has advanced error detection and correction abilities. So, if it encounters an irregularity, it’ll know how to respond since it “remembers” past instances like this and how they were solved, and it continually builds on that knowledge base.

Flexibility and Adaptability: IDP is highly adaptable to different document types and formats, allowing it to continuously learn and improve its performance as new data arrives. As a result, it’s also highly scalable.

Ease of Implementation: Setting up IDP technology is more involved than traditional document processing. Since it’s a more advanced technology, the initial implementation often requires significant preparation and more rigorous employee training.

Security: Security-wise, IDP offers robust security features like anomaly detection.

Integration: IDP technology integrates seamlessly with a wide variety of business systems, including CRMs and ERPs.

Data Extraction: IDP technology extracts data using OCR, AI, NLP algorithms, and advanced analytics.

As is probably clear by now, despite its superior ease of implementation and its knack for automating basic tasks, ADP has far more limitations than IDP, so it’s no surprise that IDP is rapidly overtaking the market.

If you’d like to learn more about IDP, ADP, and what technology may be best suited for your unique situation, drop a comment in the chat below. We’d be happy to hear from you!

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About Kara

As a Naviant Content Writer since 2019, Kara is passionate about helping organizations unleash the power of technology to solve their business challenges. In her weekly articles, Kara breaks down the latest research, trends, and tips in the digital transformation world, specializing in intelligent automation, the cloud, AP & HR automation, artificial intelligence, change management, and more. She is also a Copywriter for the American Marketing Association-Madison, where she contributes bimonthly articles that interview industry experts and highlight the latest marketing trends. When she’s not writing, Kara is working on her latest art project, scoping out new music, or out for a run.