Consider editing different document types such as book, article, contracts, etc. It would require a human to spend hours typing the documents and being careful about not making any mistakes. The time and resources required to perform the task can be automated through Optical Character Recognition OCR software to scan and digitize the entire text from printed documents. Although, sometimes it’s a challenge to get devices to recognize various ways that people usually express themselves in writing.
To make texts easy to read for machines, companies have developed different forms to structure text in easy to recognize labels. In the initial step, OCR technology converts structured texts into machine-readable texts. Most times machines can’t understand the meaning of texts. As OCR (Optical Character Recognition) adopts various forms of texts, its algorithm gets trained to scan various documents.
According to Bloomberg, “Up to 27.5% of businesses have reported errors with manual data entry that cost billions of dollars in paying tax penalties”.
What is Optical Character Recognition OCR?
So, the real question arises: what is optical character recognition (OCR)? OCR technology simply entails the electronic conversion of text into data. This is the reason OCR is helping businesses around the globe to speed-up their process.
Although, OCR screening isn’t smart enough yet to recognize different fonts and unique spreadsheets. But to enhance its capabilities, researchers are working on different patterns that exhibit in unusual places.
Benefits of Using OCR Technology To Help Organizations?
OCR has to offer many different advantages but mainly it helps organizations to speed up their process and enhance the effectiveness of their work. However, it could be especially helpful for companies that have an inflow of a high number of documents. OCR technology could quickly deal with a high volume while significantly reducing the number of errors.
- Reduction in Cost
The OCR solution could help businesses cut down their resources to carry out the data extraction process. By automating the manual work through OCR, data entry could be performed with high proficiency. The software would also help in reducing other costs, such as copying, shipping, printing, etc. Therefore the cost of lost or misplaced documents could be significantly lowered.
- Avoiding Inaccuracies
Inaccuracy is one of the major challenges while performing data entry tasks. The OCR technology helps in reducing inaccuracies that make the data entry job more efficient. Moreover, the problem with data loss could also be avoided by gaining assistance from OCR.
- Increase in Storage Space
Optical Character Recognition online can help organizations with scanning and storing information from different company documents. It means that now the documents could be saved in their electronic formats on servers. This would potentially eliminate the need to maintain a huge number of data files.
- Implementation of Strong Data Security
Data security is important for all organizations. As paper-based documents could be easily misplaced, destroyed, or lost – the scanned data could be saved in a digital format. Further, it puts an extra layer of security on digitized data.
- Improvement With Customer Service
Employees working in customer service usually have to provide information that clients are seeking. Although some call centers act to provide information to their customers that they need, others tend to quickly assess personal or other information to process the request received from customers.
- Editable Documents
In some instances, the scanned identity documents require some editing, probably to update the information. OCR technology could easily convert the data to any format that can be edited easily.
Businesses That Can Leverage OCR Optical Character Recognition
Firms or organizations that deal with large volumes of paper documents each day could leverage the power of OCR technology. Also, the software can be used to transfer documents to tablets, computers, phones, etc. The OCR system has a massive role to play in various industries that include banking, travel, housing, healthcare, and legal sectors. Although outsourcing the OCR-based data entry services to a third-party vendor could potentially save cost and time. Here are a few document types, where organizations could use OCR.
- Tax Documents
- Business Cards
- Contact Information
What’s Next With OCR Technology
OCR has replaced most jobs where manual data entry and its expected to eventually replace the scanners. But in the future, it could also scan the text and translate it into any language.
OCR technology continues to develop as it scans through various document types. During this process, OCR can easily transfer data from printed text to a digital system. Due to this, invoices and other document types could be processed faster through automation. The organizations could save significant time and cost while opting for the OCR services.