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OCR made simple: A guide to understanding optical character recognition

OCR made simple: A guide to understanding optical character recognition

Scanner Guide

OCR Made Simple: A Guide to Understanding Optical Character Recognition

Turning paper documents into searchable data can power many time-saving applications

With OCR, you can unlock a world of time-saving automations. Automated document routing, useful data extraction, and more can supercharge your organization’s efficiency.

But what is OCR? How does it work, and what are the must-have features you should seek out? In this guide, we’ll explain the essentials of this game-changing technology.

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What is OCR?

OCR, or optical character recognition, is a technology used to turn printed text into digital text. Here's how it works: When someone scans a piece of paper, its surface is converted into a digital image. OCR then examines the page using pattern analysis and algorithmic matching. Wherever it identifies a text character, it adds that character to the digital image file to create a workable document.

    Some benefits of OCR

  • Automated data extraction and document routing saves time
  • Automations remove the risk of human error during extraction and routing
  • More readily available information improves customer service

Three industries that benefit from OCR

Healthcare

Patients start filling out forms the moment they enter a healthcare facility. The facility needs their name, address, e-mail address, phone number, insurance card numbers, and emergency contact information just to start. Using OCR to capture this information can accelerate intake and improve the accuracy of recorded information.

Finance

Even as financial tools digitalize, many processes still use paper. Loan applications, mortgage agreements, and check processing all require pulling data from physical documents. Using OCR to create digital copies can shorten timelines. It can also create digital copies in case the original is lost.

Education

Libraries are often full of paper books, documents, records, and correspondence. Digitizing them can make them more accessible to patrons. Digital texts can be stored online and indexed in search engines. Modern fonts can make them easier to read. Plus, scanned documents that are backed up offsite can survive natural disasters such as floods.

Read more about how OCR works (and how it can help you) in Understanding Optical Character Recognition (OCR): What Is OCR and How Does It Work? and How Does OCR Technology Work and How Can It Help You?

Did You Know? TMC named the RICOH fi-8170 as a 2023 Future of Work Product of the Year. TMC recognizes "companies that showcase the most innovative and disruptive products and solutions that have positively supported hybrid work experiences across the globe." Click here to learn more.

Other ways to digitize

Optical character recognition is sometimes used as a catchall term for digitizing documents. However, there are other ways to turn images into text. Intelligent character recognition, or ICR, is basically OCR for handwritten text. It often uses artificial intelligence to learn over time. Optical mark recognition (OMR) focuses on forms. It can recognize checkmarks, filled-in bubbles, and similar signs.

    Full-page vs. form OCR

  • Full-page OCR scans an entire page and turns any text it finds into a digital equivalent. That makes it ideal for books, manuscripts, and other unstructured papers.
  • Form OCR solely digitizes pre-determined fields. Its narrow focus can make it faster than full-page OCR. Form OCR excels in form-heavy fields such as healthcare and finance.

Document capture processes

Business scanning

For most businesses, a dedicated scanner is the best tool for digitizing documents. Production scanners can process hundreds of pages each day. Many come with OCR technology included in their software bundles. If you also need ICR or OMR, you can upgrade to solutions that include those functions.

Mobile scanning

Both major mobile operating systems include OCR features, and specialized apps can add ICR capabilities. However, mobile scanning is slow and prone to error. It's a good fit for smartphone owners who only need to digitize a few pages.

Cloud-based scanning

Some scanners save their images directly to your local storage. Others allow you to save directly to the cloud. When you do, your teammates will be able to access the documents within moments of scanning. Just make sure your scanning software is compatible with your cloud storage platform of choice.

Read more about the nuances of OCR in How Full-Page OCR and Form OCR Transform Document Management and Exploring Document Capture Technologies: Types and Benefits for Your Business. 

 

Evaluating OCR software

Not all OCR software is equally effective for every task. Most can do a good job of turning scanned images into text documents, but that's only part of the puzzle. Some stand out from the crowd by including more advanced features. They range from automatic data extraction to flexible integrations. When shopping for an OCR solution, set priorities around which features you need.

    How OCR integrations support your systems

  • Document management system (DMS): Automatically route and store documents.
  • Accounting software: Fill out balance sheets and execute three-way matching.
  • Customer relationship management (CRM): Populate contact information in customer profiles.

Essential OCR Features

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Accuracy

If your OCR software isn't accurate, the mistakes it makes can corrupt the rest of its functions. It might route documents incorrectly or feed inaccurate numbers to your accounting software. Most top OCR software has a success rate of 95% or better with standardized fonts. If you can't control the fonts your partners use, make sure your OCR software performs well with a variety of typefaces.

Contactless cleaning

After processing, OCR software can manipulate the data it identifies. By extracting information such as vendor names, it can sort invoices automatically. It can also use that information to apply meta tags and power search functions, fill out spreadsheets, and more. That saves your team time and effort.

Intuitive user interface

The more quickly workers learn to use your OCR software, the more value they can produce with it. A shorter learning curve can empower teams to streamline workflows and capitalize on advanced features. Look for an OCR solution with a simple user interface to smooth the learning process.

For more useful OCR features, read 5 Top Features to Look for in the Best OCR Software. 

Did You Know? All RICOH fi series scanners come with PaperStream, a powerful software package that includes leading OCR technology. Click here to learn more. 

Our recommendation: fi Series scanners

Those in the market for an OCR-ready scanner have no shortage of options. We take great pride in having spent the last 50+ years researching, designing, and developing some of the most advanced and powerful electronics in the world, including our professional grade fi Series of scanners. 

Built to purpose for the most demanding document handling jobs, fi scanners are capable of processing tens of thousands of pages per day at the highest levels of accuracy. Their intuitive integration capabilities with all existing work suites minimize time-to-value for businesses looking to invest in tools that will pay dividends for years to come.

From the flagship fi-8170 to the versatile fi-800R, all fi Series scanners come with a wealth of software to amplify your productivity. PaperStream’s leading OCR capabilities can power automatic data extraction and document routing; its automatic image correction features ensure nothing gets lost in translation. Click here to learn more or shop the rest of our production scanner line. 

Note: Information and external links are provided for your convenience and for educational purposes only, and shall not be construed, or relied upon, as legal or financial advice. PFU America, Inc. makes no representations about the contents, features, or specifications on such third-party sites, software, and/or offerings (collectively “Third-Party Offerings”) and shall not be responsible for any loss or damage that may arise from your use of such Third-Party Offerings. Please consult with a licensed professional regarding your specific situation as regulations may be subject to change.

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