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What Is Document Processing? | IBM

Converting manual data into electronic documents is an essential step in most companies’ digital transformation.

To successfully accomplish this requires thoughtful planning and the right document-processing solution.

Document processing converts manual forms and analog data into a digital format so that these documents can be integrated into day-to-day business processes. By using a document-processing system to extract data, a company can digitally replicate the document’s original structure, layout, text and images. 

Document processing is ideal for converting documents with identical formats. If the formats are unrecognizable or inconsistent, the process may need to redirect to human operators to complete the conversion.

In the following video, Jamil Spain gives a breakdown of document processing:

What is intelligent document processing (IDP)?

Advances in artificial intelligence (AI) have enabled companies to automate document processing even further. Intelligent document processing (IDP) uses AI-powered automation and machine learning to classify documents, extract information and validate data. It further automates and speeds up document processing through automation and structuring unstructured data.  

IDP may also incorporate robotic process automation (RPA) and natural language processing (NLP) tools to make the transition from analog to digital faster and less error-prone. RPA, in particular, can automate hands-on, point-and-click operations so there is less required human interaction with the process.

How does document processing work?

Document processing can be done using computer vision algorithms, neural networks or even manual labor. Typically, the process of digitizing analog data into digital data follows these steps:

  1. Categorize and extract the layout and structure: Document-processing solutions are rules-driven. Programmers create these pre-defined extraction rules before the work can begin. This includes defining the category and format of the documents. Once that is defined, the team can extract the layout and structure.
  2. Extract the document information: There are several methods teams can use to automate text transcription. Optical character recognition (OCR) scans the document for typed text from manual documents and transforms it into data. Intelligent character recognition, a type of handwritten text recognition (HTR), can recognize standard text as well as various fonts and styles of handwriting.
  3. Detect and correct document errors: OCR technology can be error-prone, which means extracted data may need manual review. When a document format cannot be processed or errors are identified, it can be flagged for human review and fixed through manual entry.
  4. Store document and data: The final document is stored in a format that allows it to integrate with current applications.   

If you’re using intelligent document processing, it enhances traditional document processing by doing the following:

Best practices and challenges

Whether your organization is digitizing healthcare records or looking to streamline invoice processing, it helps to do some prep work and follow best practices to avoid costly, time-consuming problems once you begin. This includes the following:

Traditional document processing does come with some challenges that should be considered before a digital transformation project begins to avoid delays:

Use cases for document processing

These are a few of the most common situations in which you could use document processing:

Document processing and IBM

IBM Cloud Pak® for Business Automation, IBM’s leading offering for document processing, takes your automation a step further by infusing artificial intelligence (AI). Its features are designed to improve both your internal processes and your customers’ experiences.


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