Published: 04 September 2023
Intelligent document processing platforms are essential for the automation of document-centered workflows. High growth of over 16% has attracted many new providers, resulting in a saturated market. Technology and service providers must strategize to differentiate in order to cut through the clutter.
The averagedealsizefor intelligent document processing (IDP) platform solutionsincreasedby28% in 2022, asimplementationsscaled and expansionintonewusecasesrealizedgreaterbusinessvalue.
Abouttwo-thirdsofIDP platform providers’ competitive strategy is basedonproductdifferentiationandaboutone-third of providers’ strategy is focused onclient needs. Still, differentiation remains achallenge.
ManyIDP platform providershavemadeaproductpivotinthelasttwoyears, evolvingfromnarrow/limitedfeaturestoamorerobust, industry-centeredproduct,andthisevolutioncontinues.
Large language models (LLMs)havedisruptedtheIDP platforms market, not only asatechnologytobeconsidered/integratedbutalsoasaperceivedalternativetoIDPasawhole.
To competeeffectively, technologyandserviceprovidersof IDP platformsmust:
Buildaccountfarmingfunctionsbyseparatinghuntingandfarmingresponsibilitieswithinthesalesorganizationstructureinordertocapturethescale-upactivitiesinclients.
Createaneffectivedifferentiationstrategythatgoesbeyondjustproductsbyconsideringaspectssuchasfinersegmentationofthemarketandcreatingnichepropositionsforspecificsegments.
ContinuetoaccommodateLLMsasintegralcapabilitiesservingmultiplepurposes, butfocusonlow-volume, high-valueusecaseswhereLLMsaresourcedasarate-based, externalservice such as generative pre-trainedtransformers (GPT).
Analysts:
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