Paper-based documents still dominate many workplaces. Stacks of papers are famous for creating bottlenecks that slow down operations and frustrate employees. Many businesses are now rushing to digitize their processes and eliminate the need for paper documents, or at least minimize their use.
However, many are still overlooking the technology, particularly Optical Character Recognition (OCR). This technology is known for bridging the gap between physical and digital worlds. Yet, OCR technology has many functionalities, but a key one for which it is commonly known is the conversion of pictures to text.
In this blog post, we will explore the role of OCR in a digital-first world. But before that, let us walk you through the working of this technology.
How OCR Technology Works?
The working of OCR technology involves a multi-step process in which readable characters, or visual text, are converted into digital content. The converted content can be both editable and non-editable.
For your convenience, the following is a general overview of the OCR process.
- You provide the OCR tool with an image that has text. It can be a screenshot, a scanned page, handwritten text, or any other digital format.
- OCR systems begin by scanning the provided picture. Some of the OCR tools also preprocess the image to enhance its quality.
- Next, it analyzes the image to identify readable characters and text structures. During identification, it generally isolates letters and numbers, classifying them so that extraction remains easier.
- After identifying the text, it extracts it and serves it to you in a digital format that you can copy and download, depending on the functionality of the OCR tool you are using.
Many of the OCR tools now also use machine learning (ML) and artificial intelligence (AI) during the conversion process. These technologies help them enhance text recognition by performing the following tasks.
- Distinguishing between different fonts
- Handling various document layouts
- Process handwritten text
The OCR technology has progressed significantly from early versions. In fact, quality OCR solutions can achieve accuracy rates exceeding 99% on clean, well-formatted documents.
Benefits of OCR in This Digital First World
The following are some of the key practical benefits of OCR technology in this digital-first world.
Document Digitization and Management
The key benefit of the OCR technology is the conversion of physical and non-editable documents into an editable digital format. Using an OCR-powered picture to text converter, anyone can now convert paper documents, whether printed or handwritten, into digital formats.
The conversion of paper documents into searchable digital formats makes it easy to access the information when needed. Additionally, storing and organizing them on a device is also much easier compared to doing the same in physical form.
Enhanced Operational Efficiency
Optical character recognition technology also helps professionals enhance their operational efficiency. It significantly eliminates the need for manual data entry, which is often one of the most repetitive tasks in professional environments.
Now, instead of typing lengthy documents manually, which can take hours of a professional’s time, they can simply use a picture-to-text converter and convert the text into a well-organized digital file format, such as Docx or TXT.
Do you know where this leads to?
Documents that previously required hours of typing can be processed in minutes, dramatically accelerating workflows across departments.
Significant Cost Savings
OCR technology also provides businesses with a significant cost-saving benefit. As mentioned earlier, it eliminates the need for manual data typing and instantly digitizes the documents, delivering substantial cost reductions.
When the documents get instantly digitized with high accuracy, it saves the businesses the costs that they might need to spend on:
- Data entry tasks
- Storage rooms
- Papers & printers
- Document security
Not only do the costs improve, but OCR also enhances data accuracy. Human data entry is prone to errors. OCR technology, when properly implemented, can achieve higher accuracy levels. This helps professionals maintain consistent performance regardless of volume or time constraints.
OCR Applications Across Industries
The following are some of the industries that now utilize OCR technology in their day-to-day operational tasks.
Financial Services
Banks and other financial institutions make use of OCR-powered software for processing documents such as:
- Loan applications
- Insurance claims
- Regulatory documents
By running such documents through OCR software, professionals in the industry can instantly verify customer information without manually entering all the data. This also helps accelerate the approval process while maintaining compliance efficiency.
Moreover, we have seen some investment firms now use OCR to digitize their historical records. Using OCR tools, they make decades of their data accessible for analysis and reporting. This capability proves particularly valuable for risk assessment and regulatory audits.
Digital Mail Rooms
You may have heard about digital mailrooms, which handle mail on behalf of individuals or businesses and forward it to the intended recipient in their preferred format. They are among the biggest beneficiaries of OCR tools, particularly picture-to-text converters.
Whenever they receive an email, they instantly run it through an OCR tool, get it digitized, and forward it to the person it belongs to. The thing previously involved manual typing and only forwarding the pictures of the mail. However, now OCR has made things much easier and more efficient for them.
Healthcare Sector
Medical facilities employ OCR to digitize:
- Patient records
- Prescription forms
- Insurance documentation
This application improves patient care by ensuring critical information remains accessible across different systems and providers.
Many healthcare organizations also utilize OCR for medical billing. Using this technology, they convert handwritten bills and forms into digital formats. And once digitized, they can easily integrate them with the desired electronic record systems.
Libraries & Law Firms
Libraries and law firms are also making efficient use of OCR technologies. Using the OCR tools, libraries are getting digitized. By transforming books and other literary materials into digital format, they are not only making them easier to access for people but also preserving some ancient pieces.
Likewise, law firms and some courtrooms are utilizing OCR to digitize case decisions and other relevant materials, enabling lawyers and law students to retrieve information from them easily during their practice.
Bottom Line
In this blog post, we aim to guide you through the role of Optical Character Recognition Technology, also known as OCR, in today’s digital-first world. The technology can extract readable characters from any document when provided in image form. Many businesses and professionals working in them are using it to streamline various tasks, such as data entry and document digitization. If you ever need to digitize a document or type one instantly, give OCR a try. We bet you will not regret it.
