Business Model Comparison - IDP Blog Series (Part 5)

Business Model Comparison - IDP Blog Series (Part 5)

5/19/2022 Matthias Pfeiler
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Business Model Comparison

In the 4th blog, we talked about learning and machine validation and noted that the faster an (artificial intelligence) AI learns from human feedback, the faster it is possible to automate data. Also addressed was the importance of a simple and well-designed user interface and experience. Only an easy-to-use self-service offering will be appreciated by the end user and make work easier.

In the following list you will find all the terms that are important for the successful introduction of an intelligent document processing (IDP) system in the company:

  • industry type (for which the IDP system shall be applied) and company size,
  • industry experience,
  • document diversity and number,
  • the AI's learning capability and machine validation,
  • user experience & interface
  • end-to-end or self-service offer,
  • prices per document or per page,
  • price/performance ratio,
  • type of OCR and value added services,
  • processing time.

Today's blog will cover a business model comparison regarding the components of "end-to-end solution or self-service offering" and "charging per document or per page".

End-to-End Solution or Self-Service Offer

If the offer includes an end-to-end solution, the company achieves automation in the entire document processing process for the customer. This means that the service provider offers the customer a simple way to upload documents via different channels (e.g. email, scan-per-mail, upload, API, etc.). The customer gets the data back as requested without intervening in the process (end-to-end). With such an offering, we are talking about intelligent document processing. In this process, the AI-based OCR is only one part of the value chain.

In the self-service offering, the customer has to set up the complete document processing process himself, which usually means a large investment in the six- to seven-figure range. For example, in customs clearance, the figure to achieve such a system fpr 10000 documents only, has at least 7 numbers, which is an unbearable investment. However, in order to process customs documents completely electronically and generate customs declarations from them, it is necessary to combine the following building blocks:

  • Document classification and separation
  • Data extraction (AI-based OCR)
  • Data normalization
  • Data generation
  • Machine and/or human validation of data processing
  • Data research for automated, electronic document processing
  • Data integration
  • Connection to third party systems such as customs software
  • Customs and customs IT know-how

In contrast, the investment for the end-to-end solution is very low, in the five-digit range. The customer can expect direct efficiency gains. Depending on the service provider, a complete solution costs considerably more than a self-service offering. This depends on the scalability of the service provider offering a end-to-end solution.

Usually, only a low scalability is possible here, which is why the price per document or page can be much higher than a self-service offer. However, there are also exceptions that achieve more and more scalability and have established lean cost structures in processes.

Billing per Document or Per Page

There are some providers that offer document processing services per document or per page. For a customs service provider who has to deal with an average of 5 pages per customs case, the price would quickly become unprofitable.

Digicust Support & Next Blog

As described in the first blog of this blog series, Digicust perfectly supports you in your IDP journey at scale.

This way you can quickly benefit from huge efficiency gains from day one and use an automated IDP with little or no implementation effort. As there are other essential factors for the successful implementation of an IDP system, the remaining ones will be highlighted in our next blogs.

The focus will be on the criteria of "price/performance ratio, type of OCR's and value additional services".

We hope you enjoyed today's blog and have a great day and stay tuned!

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