Businesses of all sizes are faced with a considerable influx of data, including various forms of unstructured data (data that cannot be stored in a structured database format) such as sensor data, emails, texts, images, and more. Recent claims suggest that as much as 80% of this new data is unstructured, making it difficult to capture, quantify, process, and archive it.
Undoubtedly, it has become increasingly important for companies to find productive and cost-effective means to process unstructured data. Why? Because data is a valuable business asset that often needs to move through many levels within the organizations and is an integral part of decision-making. Therefore, for businesses to thrive in a data-driven environment, data automation is needed.
In this blog, we will discuss what data automation is, the benefits, and use cases, and provide you with a list of the best data automation software to help you get started!
What is data automation?
Data automation, also known as source data automation, is the process of using technology to automatically collect, process, and manage data, reducing the need for manual intervention while improving data accuracy.
Frequent manual data preparation and processing hinder businesses, as they consume a significant amount of time and are prone to costly human errors. Data automation takes on the burden, which then allows your workforce to analyze the data and make proper business decisions. This way you can lower your overhead costs while freeing your staff from mundane data processing tasks.
Technologies that allow source data automation often include artificial intelligence, OCR, machine learning, and computer vision in the form of software. So how does source data automation software work? The answer to this question can be found in the next section.
Data automation steps
There are various data automation software solutions that help businesses automate data processing tasks. Often data process automation consists of the following steps:
- Data Capture – Data capture allows businesses to extract unstructured data from any kind of document or image (paper or electronic) using OCR and computer vision.
- Data Parsing – Data parsing allows businesses to convert data from one format to another after the data has been captured successfully. Let’s say you have a PDF file but need the information structured in an Excel file, this is where data parsing comes into play.
- Data Entry Automation – Since data automation software can be used to capture and parse data, there is no need for employees to manually enter data into any kind of system or database. Unstructured data can be turned into business-ready data and automatically stored in the company’s records.
- Data Validation – Some data automation software uses sophisticated AI algorithms to validate data. For instance, they verify a document’s authenticity using EXIF data analysis, conducting data cross-check validations with various databases or performing 2-way matching.
- Data Anonymization – As many organizations deal with privacy-sensitive data, it is important to consider using a data automation solution that can automatically mask sensitive data and data fields for regulatory compliance.
To keep this blog short and enjoyable, we decided to list the main data processing steps that can easily be automated. Of course, the steps in data automation depend largely on the use case as well as the data processing procedure of your company.
Now that you know which steps in data processing can be automated, let us introduce you to the reasons why data automation is beneficial and relevant to adopt.
Why you should use data automation
There are various reasons why businesses have started to adopt AI technologies to automate their business processes, including data processing. These benefits include:
- Reduction of processing time → By automating data processing, collection, and analysis, your businesses can eliminate the need for manual data entry and manipulation. These tasks once took hours or days to complete, but with automation, they can now be completed in a matter of minutes or seconds.
- Lower overhead costs → By automating repetitive data-related tasks, you can reduce your reliance on manual labor, thus employee salaries and benefits that need to be paid. Additionally, data automation can help identify inefficiencies in existing workflows, allowing businesses to streamline their operations and reduce unnecessary expenses.
- Improved data quality → With (source) data automation you can reduce the risk of human error and improve the accuracy and consistency of the data. Automated data systems can also identify and correct errors in real time, ensuring that the data used for decision-making is accurate and up-to-date.
- Data processing scalability → By automating data processing, you can handle large volumes of data without significant manual effort, allowing you to process more data in less time. Next to that, you can avoid all the costs and delays that would occur when scaling up manual data processing workflows.
It’s evident that data automation offers significant advantages that are difficult for organizations to ignore. From reduced processing time and lower overhead costs to improved data quality and data processing scalability, businesses can leverage automation to gain a competitive edge and drive long-term success.
Data automation use cases
If you are still unsure about how you could leverage data automation or which business cases it is most often used for, don’t worry! We have listed the most common data automation examples below (please note: the list is not exhaustive):
- Automated invoice processing – With data automation, businesses can automate the extraction of invoice data and reduce the manual effort required for processing.
- Digital client onboarding – Data automation software can significantly streamline the customer onboarding process for businesses. By automating various steps in the process, such as data entry, verification, and validation, businesses can reduce manual effort, minimize errors, and speed up the overall onboarding process.
- Automated receipt clearing for loyalty programs – Data automation software allows businesses to automate the process of verifying customer purchases and clearing receipts for loyalty rewards. The system can extract relevant data from the receipts, such as the date, time, and amount of the purchase, and match it against the qualifying criteria for the loyalty program.
- Identity Verification – Data automation can help businesses reduce the risk of identity fraud and ensure compliance with Know Your Customer (KYC) regulations. In such a case, OCR technology is used to capture and verify identity documents, while facial recognition technology compares the image on the document with the individual presenting it.
- Document Classification – OCR technology can be used to classify documents by type, making it easier to organize data and search for specific information.
- Extracting data from PDF to Excel – Businesses can extract data from PDF files and transfer it directly into Excel sheets. This can save significant time and effort compared to manual data entry and reduce the risk of errors.
- Document fraud detection – AI algorithms can be used to analyze large volumes of data, identify patterns, and recognize altercations in metadata that may indicate fraudulent activity to avoid invoice fraud, vendor fraud, or even identity theft.
- Converting Image to Text – Businesses can automatically extract text from images and convert it into editable digital text. It enables businesses to quickly process large volumes of image-based data and convert it into a text format such as a Word, TXT, or PDF file.
Identifying where data automation can be used in your organization is the first step. The next step would be finding the right data automation software that fits your data processing workflows.
Best data automation software
We know that finding the right solution can be challenging. To help you out, we have listed the best data automation software available in 2024.
Klippa DocHorizon
Klippa DocHorizon is an AI-powered OCR software for data automation that helps businesses automate document-related workflows with speed and accuracy. With DocHorizon, you are able to extract, classify, convert, verify, and anonymize data from images, texts, emails, and many other file sources.
This sophisticated data automation engine that uses various AI technologies can easily be integrated into your existing software solutions via API or mobile applications via SDK. It is best utilized in the financial, retail, logistics & transportation, software, legal, and many other industries.
Klippa SpendControl
Klippa SpendControl is an all-in-one financial management solution that helps businesses simplify invoice processing and expense management through data automation. With SpendControl you can forget about manual data entry and inefficient approval flow within your company’s accounts payable process.
This sophisticated financial management platform allows you to easily extract data from invoices and receipts by submitting them via web or mobile application. Next to that, you can synchronize your data with your accounting system or ERP software in place to streamline your bookkeeping. It is a perfect data automation tool for any organization with a financial department.
Matillion
Matillion is a top-tier data processing and ETL (Extract, Transfer, Load) solution that enables businesses to gather data from multiple online sources and centralize it for further analysis. With more than 70 connectors to different data sources, Matillion provides users with the ability to compile information from a wide range of sources.
One of the key advantages of Matillion is its ability to create data pipelines without requiring coding or custom connections. Matillion also provides scheduling features that enable users to extract data on a predetermined schedule. It is designed for medium-sized businesses seeking to transfer their data from existing applications, databases, or files to a cloud database.
Segment
Segment is a powerful data processing tool that allows businesses to collect, clean, and activate all customer data with just a few lines of code. It handles all the technical aspects of data management, which allows businesses to focus on utilizing that data to enhance the customer experience and increase lead generation.
This customer data-centric data automation tool allows organizations to onboard their customers much faster. It is an ideal solution for both small startups and larger organizations looking to streamline their data collection processes.
Dropbase
Dropbase is a database tool that businesses can use to transform all offline data into their live databases within seconds. With a wide variety of processing steps, Dropbase allows users to manage their data ingestion, transformation and loading into a database reliably. It allows users to apply data cleaning and processing steps with structured data such as Excel, CSV, and JSON files, and then load it directly into live production databases.
It is often used by startups and small-medium businesses that are looking to streamline their data processing. With Dropbase, these businesses can ingest and centralize their data efficiently without spending too much money on expensive processes and tools.
Start your data automation excellence with Klippa
As they say today, data is the new form of oil that drives business growth. Data is so integral for various organizations as it is used in many business decisions. This is why you should rethink your data processing strategy if you are still not using data automation systems. Here is how Klippa can help you jumpstart your data automation journey.
Data automation with Klippa helps your organization focus on your core business. Our proprietary AI-powered OCR software recognizes text in images (scans, for instance) and converts it into searchable text in any desired data format (CSV, JSON, XLSX, XML). It’s as simple as taking a photo with a smartphone and sending it to our software; it will do the rest!
This way, you never have to manually copy data again, enter it into your existing software system, or waste time searching for information in documents. What’s best is that your data is safely processed with Klippa and not stored in any of our servers, ensuring data integrity.
You can start your data automation excellence with DocHorizon or SpendControl by booking a demo using the form below. If you need more information, don’t hesitate to contact one of our experts.