While SMBs face many challenges in document processing, with traditional methods of managing documents proving time-consuming and error-prone, there’s hopeful news on the horizon…
Advanced automated document processing solutions are reshaping the way SMBs manage their documents. By leveraging artificial intelligence (AI) and machine learning (ML) technologies, these solutions present a streamlined and efficient approach to document management.
Unlike larger enterprises, SMBs often struggle with limited resources and budget constraints, making the transition to digital documents both a challenge and a necessity. Embracing digitization allows SMBs to streamline operations, ensure data security, comply with regulatory requirements, and ultimately remain competitive in an increasingly digital marketplace.
The Need for Change: Pain Points of SMBs in Document Processing
The inefficiency of manual data entry causes small and midsize businesses significant challenges in document processing, from increased errors and high labour and storage costs, to slow retrieval, delayed processes, and beyond. These challenges collectively impact the quality of customer service and overall business performance, underscoring the need for modern, automated document processing solutions.
Let’s look more closely at some of the pain points and see how document digitization can transform operations in powerful ways:
Manual Data Entry:
Entering data manually from paper documents into digital systems is labour-intensive, time-consuming, and error-prone, making it a highly outdated and inefficient way to manage data.
Typically, automated data entry has an accuracy rate of 99.959% to 99.99% while the accuracy rate for human data entry can dip to 96%. For 10,000 data entries, automated systems might make between 1 and 4.1 errors, while humans might make between 100 and 400 errors! Shifting to automation reduces the amount of manual data entry work by 80%.
High Costs:
Hiring personnel to manage document processing can be expensive, particularly for small businesses with limited budgets. Additionally, 51% of employees between the ages of 18–34, and 57% of employees of ages 35–44 would consider leaving their job if their company didn’t have an efficient way to access the records they need for doing their work.
Other than high labour costs, physical storage of documents requires space and resources too, further adding to operational costs. It was found that American organizations waste a total of $8 billion managing paper every year!
Inefficient Workflows:
With paper-based systems, finding specific documents or information can be slow and cumbersome, delaying critical business operations and decision-making. A study found that Americans spend an average of 2 hours per day or 25% of a 40-hour work week searching for documents. Another report found that 46% of workers at small to midsize businesses waste time on inefficient paper processes each day while 83% of employees recreate missing documents.
Further, many small businesses use disparate systems for different functions, leading to fragmented data and inefficiencies. This lack of integration can hinder effective communication and collaboration within the business.
Version Control:
Without a centralized system to track and control document versions, SMBs risk using outdated or incorrect information leading to errors in contracts, proposals, and other critical documents. Proper version control is imperative to avoid costly misunderstandings and legal liabilities stemming from obsolete document versions.
Compliance and Security Issues:
Paper documents are vulnerable to loss, theft, and damage, posing great security risks for the business and client alike. Additionally, keeping up with regulatory requirements for document handling and retention can get challenging.
A 2022 study by IDC revealed that 93% of organisations suffered a data-related business disruption with 59.6% of them having experienced unrecoverable data loss in the past year. Digital documents are easier to secure and manage compared to their paper-based counterparts. With robust encryption and access controls, sensitive information is protected from unauthorized access and potential breaches, ensuring compliance with data protection regulations.
Poor Customer Experience:
Inefficiencies in document management can affect the overall quality of customer service. For instance, delays in document processing can lead to slower response times to customer inquiries and requests, resulting in frustrated customers and an unreliable reputation.
Stunted Scalability:
Finally, manual document processing systems limit a small business’s ability to scale operations smoothly. Traditional document processing systems may not adapt well to changing business needs or technological advancements, ultimately putting limitations on the growth of SMBs.
Introducing Felix’s Document Digitization Solution: The Future of Document Processing
The points mentioned above underscore the importance for small and midsize businesses to adopt automated document management solutions to gain a powerful and competitive advantage in the market.
With Felix’s patented document intelligence solutions, data can be extracted from unstructured documents with an accuracy rate of 99%. By leveraging AI, ML, and NLP, Felix’s AI engine can process a high volume of documents per day with unmatched accuracy while adhering to data compliance and rules.
This AI-based Document Digitization Solution empowers organizations across industries to capture data from various documents, enabling seamless integration into core systems for enhanced operational efficiency and comprehensive insights. With Felix’s cutting-edge technology taking care of the heavy lifting, SMBs can direct their focus towards scaling their businesses and fostering growth.
Concluding Remarks
In a business landscape where document-related challenges result in a 21.3% productivity loss, the shift to automated document processing is crucial for SMBs seeking to enhance efficiency, reduce costs, and deliver exceptional customer experience. Implementing these solutions positions businesses as leaders in their industry, allowing them to focus on what matters most: growing the business and serving customers.
Experience the potential of document digitization yourself…Book a demo today and thrust your business to new heights of operational efficiency. For more information, please write to hello@felixsolutions.ai.