Accelerate your Digital Transformation with Intelligent Document Processing

1 ACCELERATE YOUR DIGITAL TRANSFORMATION WITH INTELLIGENT DOCUMENT PROCESSING

Not seen the return on your digital transformation efforts? Or struggling to get digital transformation projects off the ground? This eBook offers practical and pragmatic advice on how Sypht’s simple, smart and scalable intelligent document processing can help super-charge your digital transformation journey.

2 Contents

1. Introduction...... 4 2. How Sypht can help...... 8 3. The journey...... 11 4. Sypht in action...... 14 5. Future-proofing your business...... 17 6. Summary...... 19

3 1. Introduction

How we interpret data can sometimes be a matter of life or death.

As World War II unfolded, the US Air Force had a problem. American planes needed armour to protect them in combat, but too much weighed the planes down, making them less maneuverable.

Fortunately, the Air Force had the data to solve the problem. The planes that returned from combat were riddled with bullet holes – and the damage was far from uniform.

If they simply concentrated the armour around the areas where the planes were being hit, it would make them safer and lighter. But how much more armour should they use – and where?

Section of plane Bullet holes per square foot Engine 1.11 Fuselage 1.73 Fuel system 1.55 Rest of plane 1.8

For that, they turned to Columbia University’s Statistical Research Group, which provided a surprising answer.

The armour doesn’t go where the bullet holes are, it goes where they aren’t: the engines. The reason? Planes that were hit in the engines weren’t coming back to base at all[1]. Columbia’s recommendation was implemented and ultimately saved many lives.

Data provides the foundation for effective decision making, but without the full picture, it can also mislead.

Unfortunately for today’s leaders, the data they actually use represents just a small share of the treasure trove of information stored with their organisations.

[1] The story is told in ‘How Not to Be Wrong: The Hidden Maths of Everyday Life’ by Jordan Ellenberg. 4 Penguin (2015). The growing mountain of unstructured data

About 80% of all data is typically unstructured, locked in paper documents, PDFs, emails, or formats like audio, images and video. This type of information rarely has the consistent fields that traditional IT systems or optical character recognition (OCR) software need to function effectively. Businesses are using manual data entry to reformat data from these different sources to fit the formats required by their downstream information systems.

Generating and storing all that data costs time and money. But the cost of not being able to use it is even higher. The situation is only getting worse.

“By 2025, data will be growing at a rate equivalent to a new Google every four days – and 80% of that data is unstructured for enterprises,” Sypht chief executive Warren Billington says.

“We see that as being a real challenge for organisations today in terms of being able to capture, access, use, and connect that data and those insights into their business systems and processes.”

How much of your organisation’s unstructured data is kept in original format (documents, emails etc) and never digitaly extracted for use in multiple information systems?

% of Participants

30%

20%

10%

0% 0% 25% 50% 75% 100% Not sure

Participants’ answers on % of data never digitaly extracted

Source: IDM survey “ANZ Digital Transformation” of 112 Australian participants across 25 industries 5 conducted in May 2020. Why digital transformation has become a “must”, not a “maybe”

Digital Transformation has been a board-level topic and business priority for some time.

Enterprise and mid-market businesses have been investing in Digital, AI, and to drive revenue, reduce costs, create a differentiated customer experience, and fundamentally transform the way they do business.

All of these investments fundamentally rely on actionable data to achieve their premise of value. While for many this evolution is underway, customers are seeing varying levels of success and benefits to the bottom line.

Many businesses are undergoing digital transformation journeys in an effort to digitise data and information, automate processes, learn from better analytics, and bolster digital communications.

But the fallout from the COVID-19 pandemic has created new business forces. It has prompted businesses to rethink the future of work: automation may play a greater role as more people are working remotely.

Just as importantly, a sharp economic downturn means they must quickly demonstrate ROI from any initiative. This new landscape requires a smart and scalable way to deliver value quickly, which goes against the grain of large-scale multi-year digital transformation programs.

Traditional digital solutions tend to be costly, high-touch, and time consuming to both deploy and maintain. In a post-COVID world, this approach can no longer be justified, as the risks are simply too high.

A recent IDM survey found AI-based automatic classification was cited as the most-wanted aspect of digital transformation by 55% of respondents yet only 22% said it was being delivered. Meanwhile, when it came to content/text analysis capabilities, 43% of respondents said they wanted it, but only 29% said it was being delivered.

6 Many organisations have been let down by OCR systems that struggle with different document fields and interpreting natural language. These legacy solutions have become embedded into their but they desperately need better solutions.

Smarter solutions can interpret the natural language which traditional OCR or legacy systems are not capable of, providing a new foundation that can help organisations move beyond simple data extraction to value extraction.

Growing volumes of unstructured data Many organisations still struggle to effectively & efficiently capture valuable information trapped in growing volumes of unstructured data

175tn 80%

Gigabytes of data will be of data created by 2025 created by 2025, growing at will be unstructured. Most a rate equivalent to a “new of this will be in the form Google“ every 4 days. of documents & images.

$5tn <10%

Economic value potential in US of companies are scalling from “liquid“ data, improving intelligent automation, while progress efficiency, and creating only 0.5% of all data collected new services & value. by companies is being used to extract insights & unlock value.

7 2. How Sypht can help

The problem of unstructured data is complex, but the solution doesn’t have to be. Advances in technology mean can power a new way to unlock hidden information.

The potential rewards are huge. An intelligent document processing solution can help enterprises lower costs, reduce error rates, increase employee capacity and elevate customer experience.

COST SAVINGS Fast, accurate data extraction MORE REVENUE means they can stop spending significant amounts of money Automated data extraction can manually processing data, underpin more efficient processing correcting data errors, or of bills, invoices or infringement supporting legacy technology. notices, speeding up payments.

ELEVATE CUSTOMER BETTER EXPERIENCE COMPLIANCE Quick, automated eligibility Unstructured data requires time- assessments for products such consuming manual assessment as loans based on customer or only a sample of documents documents can lead to higher being checked, whereas automated sales, increased retention and intelligent systems can monitor better engagement. compliance across every document.

While these solutions take place at multiple points along a data value chain, advances in technology make implementation simple. Long-term, strategic consulting-led transformation projects are a thing of the past.

8 Simple: Software as a Service capability

Delivering software as a service (SaaS) Sypht has combined the best of both has many benefits. Organisations can worlds with its Artificial Intelligence-as-a- safely let it run behind the scenes, with the Service (AIaaS) platform. knowledge that the software will always be kept up to date by the software provider. It has an intuitive user interface and can be It can be turned on or off as required, and used off the shelf, just like a SaaS product. can scale with a growing business on- Sypht’s out-of-the-box intelligent document demand. processing service delivers accuracy of more than 90%. However, operationalising artificial intelligence (AI) within a business is often But businesses can also tailor Sypht’s AI to a much more complex matter. It typically deliver even more value. They build specific requires a high level of specialised skill rules or add their own capability on top of sets and business support because it our platform. It’s all there for you to use at changes business processes, which involves your own pace. supervision and training.

Smart: Immediate high accuracy that improves over time

Sypht’s intelligent document processing This accuracy is not constrained by one requires no coding and delivers initial type of document created by similar accuracy of more than 90%. But that’s only organisations. Sypht’s AI can interpret the beginning. multiple documents, even ones it has not seen before – the more unstructured data, Unlike traditional OCR, Sypht’s machine the more it learns. learning models continue to learn as it processes more data. This means accuracy This inbuilt intelligence means Sypht is improves over time, in some cases reaching about more than data extraction – it is near human levels. ultimately about value extraction.

Its accuracy comes from a combination of machine learning, natural-language programming (NLP), , and human in-the-loop validation techniques.

9 Scalable: A whole-of-business solution

Delivering AI on top of a SaaS platform automation (RPA), enterprise resource creates a highly scalable foundation that planning (ERP) and analytics partners. can be geared to an organisation’s needs. The AIaaS model also enables It can intelligently process millions of organisations to trial new agile solutions documents at consistently high levels and test them against existing ways of of accuracy and speed. For some working more quickly and cost-effectively organisations with huge paper backlogs, than ever before. This is a critical element Sypht has been able to cut estimated years of their digital transformation journey. of manual processing time to just weeks. For businesses that need broader AI Sypht’s platform has been built with or more tailored solutions, Sypht has APIs that make it easy to build your a catalogue of AI products which are own applications on top of, or connect purpose-built for a wide range of use cases. with a wide range of market leading software providers across robotic process

Sypht’s AIaaS’s value Sypht’s AIaaS platform unlocks this value through instant, accurate & adaptive data extraction and understanding

INSTANT ACCURATE ADAPTIVE < 5 seconds data > 90% ML model accuracy out A catalog of AI products, extraction time for multiple of the box, requiring minimal purpose-built for a wide documents in one go, training data to achieve range of use cases, designed with real-time exceptional results unlocked at the click use cases in mind of a button

SIMPLE SMART SCALABLE REST API for developer Self-learning ML with Self-train Sypht on your R&D and enterprise cognitive extraction, powered data, and integrate with integration and UI for by computer vision, NLP + ecosystem of RPA, ERP & operations workforce human-in-the-loop validation Analytics partners

10 3. The Journey

All organisations generate unstructured data, but they need to unlock the power of that data in different ways and for different purposes.

While there is some crossover in needs, unstructured data within any given organisation can be broadly split across three domains:

• Organisations rely on their back office to perform many business operations. These operations-based business processes often rely on unstructured data that is manually entered into systems. • Common examples include processing payable instructions such as Office invoices or levies; receivable instructions such as receipt slips; or claim forms such as government benefits. • Unlocking the power of unstructured office data requires “Intelligent Process Automation”.

• Other organisations generate unstructured data around their real-world assets, such as meters, sensors and detectors. These assets require on- site work but efficiently capturing data about those assets is often a problem. Field • For example, a utility company may need to send staff to manually inspect the condition of power generation assets, which generates unstructured data captured in paper forms. • Unlocking the power of unstructured field data requires “Intelligent Asset Management”.

• Unstructured data can also be generated by teams around a given knowledge topic. • For example, a financial services business may need to assess paper- based forms and contracts related to insurance policy or loan Team applications. It may need to process asset purchase contracts and registrations for stocks, properties or vehicles. • Other organisations may need to bring together broad policies and procedures in operations manuals or expense guides. • Unlocking the power of unstructured team data requires “Intelligent Knowledge Management”

11 Many organisations have tried to tackle the problem of unstructured data. They’ve been underwhelmed with costly technology solutions that under- deliver or produce significant errors such as OCR.

But rapid advances in technology means there is now a simple, smart and scalable solution that can be cost- effectively tailored to their needs.

Interested organisations can register for a trial account on the Sypht website, which gives them access to several AI products that they can test on their own documents. This allows them to compare the results to their current manual processes or technology solutions.

More bespoke solutions will begin with an assessment of the underlying business friction and a Proof of Concept (PoC) that can solve those problems. Sypht works closely with internal transformation teams or consultants to ensure the process is smooth and ultimately successful.

1. Assess the problem The first step is to assess an organisation’s key business issues, such as extensive manual processing of documents.

A roadmap can then be built to solve the problem, centred around a PoC, which shows what is required to integrate intelligent automation as part of a strategic technology stack. The PoC takes just three-to-four-weeks to create compared to traditional consulting models that take 12 weeks to develop a plan and another 12 weeks to execute.

Sypht can then quickly build a Proof-of-Value (PoV) on a priority use case to highlight the return in investment.

2. Build

The next stage is to execute the strategy through a pilot project that tackles the key business friction. This minimum viable product (MVP) can quickly show the value in using Sypht’s intelligent document processing capabilities.

Sypht’s machine learning experts will train and tune the system’s machine learning capabilities to ensure maximum accuracy and speed. It takes just a small sample of documents and a few weeks to fine tune the system.

We find that the next phase of the transformation cycle is often partially self-funded by cost savings generated by Sypht.

12 3. Run

The final stage is letting the system run and reaping the long term benefits of digital transformation. Sypht maintains and enhances the platform, which continuously generates value.

Many organisations can then start to consider other use cases, which can benefit from the economies of scale they have created with their initial use case.

The customer journey

ASSESS/ TRANSFORM/ RUN/ ARCHITECT BUILD INVEST

Assess clients’ digital Translate strategy into Use initial success as maturity to inform their execution, mobilising a beach head to unlock transformation strategy transformation program additional use cases / venture architecture, / venture MVP design & and transformation roadmap, business case development opportunities

Rapidly mobilise a Sypht Extend PoC/PoV to a Pilot “Leave behind” Sypht PoC or PoV to highlight & MVP for priority use case, post- transformation to minimal effort to deploy, embedding Sypht’s Data continually deliver client rapid ROI & seamless Science experts within value integration of intelligent delivery pods to train & automation as part of tune ML for maximum strategic technology stack accuracy & speed

Prove feasibility, value case Make the case to Deepen relationships & and ROI through “Show, self-fund next tranche credibility in deep tech, don’t tell” approach of transformation from unlocking future projects Sypht-driven cost savings

13 4. Sypht in action

How organisations have benefited from Sypht

Translating theoretical benefits into quantifiable gains shows how technology can play a vital role in building a more sustainable business, achieving results in just weeks.

These real-life examples demonstrate just how Sypht has already helped customers in Australia and globally.

Adopting our no-code AIaaS platform has delivered significant benefits, including increasingrevenue, reducing cost, boosting customer satisfaction, strengthening compliance, reducing errors and saving time.

How to eliminate manual data entry

MYOB understands SMEs and the problems they face – its accounting software helps alleviate the administrative burden of activities such as manually entering accounts payable information from receipts, invoices and bills.

Sypht’s solution introduced machine learning capabilities which successfully interpret a wide variety of invoice types at more than 90% accuracy and delivering those results in about 5 seconds.

Taking the stress out of mortgage applications

Applying for a home loan is often equally painful for both applicants and lenders because it requires manual assessment of complex financial data spread across many different types of documents.

A US-based online mortgage lender has used Sypht’s machine learning algorithms to accurately interpret customers’ payslips and digital ID documents, making near real-time loan approvals a reality. Loan approval times were cut from three days to one hour per application and customer drop-off through the application process halved.

14 Managing business risks before they escalate

One major US utility company collected crucial risk data about the state of its infrastructure assets by using handwritten inspection reports, which took years to manually process. Unfortunately, that time-consuming process contributed to a major disaster.

Sypht worked with the organisation to build a neural network model that could accurately process the backlog of data within six weeks. Their compliance coverage increased to 100%.

Driving improved revenue collection

While road toll e-tags are becoming more commonplace in the US, some jurisdictions still rely on cameras photographing license plates, which can easily be obscured by dirt, poor weather, or other traffic.

Those identification issues meant one major state couldn’t identify two-thirds of vehicles using its toll roads with traditional OCR technology. Sypht built a new solution using its machine learning capabilities in four weeks that was able to identify number plates at 90% accuracy for automated tolling.

Powering better compliance and safety

Thousands of US citizens who should have been disqualified from driving remain on the roads because some states struggle to process traffic infringement notices. Sypht was appointed by a US state which was taking years to process a backlog of around 140,000 out-of-state infringement notices.

Sypht deployed its machine learning solution in less than six weeks to interpret conviction notices with multiple formats, making enforcement automatic. Enforcement coverage increased to 100% and conviction processing time was reduced by five years.

15 Financial services

Use case Accounts payable Loan origination Client A

Problem Traditional OCR technology resulted Manual processing of identity & payslip in significant manual data entry of docs resulted in slow approval process payments and poor customer experience and low customer conversion Solution Sypht’s applied its existing ML to Sypht trained its ML to understand invoices, bills and receipts, resulting in payslips & digital ID to enable near >90% accuracy, ~5s extraction speed real-time loan approvals Impact • Customer admin time reduced • Loan approval times reduced from by 2 days/week 3 days to 1 hour per application • Customer satisfaction increased • Customer drop-off reduced by 50% by 15% • Customer conversion increased by 20%

Utilities Government

Use case Asset maintenance Tolling Infringements Client Large utility company in A US Turnpike Authority State Department of California Transport Problem Lack of access to data in Traditional OCR resulted Backlog of Out-of- asset inspection reports in revenue leakage and State conviction notices resulted in a compliance costly manual processing resulted in lack of breach that triggered a enforcement large fire incident Solution Sypht trained its ML to Sypht trained its ML for Sypht trained its ML for extract data from reports number plate recognition conviction notices with with handwriting, check with 90% accuracy for multiple formats for auto boxes and signatures for automated tolling enforcement auto compliance Impact • Compliance coverage • Manual processing of • Enforcement coverage increased to 100% tolling camera images increased to 100% reduced by 50% • Report processing time • Conviction processing reduced by 4 years • Revenue collection time reduced by 5yrs increased by 100% • Solution rapidly deployed • Solution rapidly in 4-6 weeks deployed in 4-6 weeks

16 5. Future-proofing your business

AI-driven intelligent document processing

Processing documents with AI is typically considered a means to an end. It’s a way to unlock unstructured data for further analysis.

But AI-driven intelligent document processing can play a greater role. Rather than merely providing the means, it can reshape the end. That happens when it’s used to transform the process itself.

Sypht offers tools that organisations can use to reveal signals in their data that can help do more than define a process.

“The value creation space is shifting beyond OCR to extracting meaning and deriving insights from the data at the point of capture, as opposed to just lifting it off the page,” Sypht CEO Warren Billington says.

Organisations can define and run their own rules and checks that can help them embed risk management, procurement controls, or fraud analytics at the point of data capture to help them make sure the process is working as effectively as possible.

There is considerable value in using AI to derive intelligence from unstructured data. But there’s even more value in using that same AI to help organisations find ways to avoid generating unstructured data in the first place.

Organisations can leverage the same AI-driven data extraction services to build predictive analytics that can eliminate the need to generate those paper documents altogether.

For example, such predictive analytics could be used to augment asset maintenance of utilities that was previously completed by technicians in the field filling out paper forms.

17 There’s no need for an army of analysts investigating an organisation’s data because Sypht’s no-code AIaaS platform unlocks that intelligence. It lowers the barriers to entry for organisations to introduce AI at scale and future-proof their business.

We are living through an era of disruption where old business models are quickly being replaced. Economic conditions change. Regulations change. Consumer demand changes.

AI-driven data extraction can help future-proof organisations by creating smarter processes that help them reach their goals.

Four key value levers Sypht accelerates client’s digital transformation efforts and ROI by focusing on four key value levers

Automation of document Accuracy of information detection processing, assuring compliance & extraction, with self-learning & significantly reducing setup & algorithms fuelled by Sypht’s run time, risk & overall costs global network effect

INTELLIGENT IMPROVED AUTOMATION ACCURACY

INSTANT INTUITIVE ADAPTIVENESS AUGMENTATION

Adaptiveness of AI models Augmentation of existing across many business units, operations workforce, improving industry use cases, and CX & enabling self-paced “on- document types for rapid scale demand“ transformation

18 Summary

The business world is awash in unstructured data, including paper documents, PDFs, emails, audio, images and video.

It represents an untapped economic potential of $US5 trillion in value if that data can be made liquid, actionable, and put to use through greater process efficiency, new services and value.

Yet less than 10% of companies are currently scaling intelligent automation, while only 0.5% of all data collected by companies is being used to extract insights and unlock value.

Unstructured data holds great economic potential for accelerating and multiplying value from AI, digital, and automation investments, that are all core to a broader digital transformation journey.

The benefits can include cost savings, revenue generation, a better customer experience, and stronger compliance.

The technology now exists to make it happen with Sypht’s no-code AIaaS platform. It can provide instant, accurate and highly adaptive document intelligence, as well as deeper client intelligence that can future proof an organisation’s business.

Sypht makes intelligent document processing simple in order to accelerate value and deliver significant benefits.

19 [email protected] www.sypht.com

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