What is OCR? Why is OCR technology truly essential?

Understanding what OCR is has become a topic of great interest for many users today. In daily work, scanning documents quickly and accurately through Optical Character Recognition (OCR) technology has become an efficient business process, saving time and costs by leveraging the ability to store and automatically extract data.

The advancement of science and technology has helped people understand what OCR is and grasp the importance of OCR technology in digitization. This technology is helping businesses and individuals accelerate the digital transformation process while reducing operational costs, optimizing human resources, and developing sustainably in today’s technological flow. So, what exactly is the concept of this technology? What are the benefits and applications of OCR in document digitization? These will be quickly clarified right here.

What is OCR?

The Optical Character Recognition (OCR) technology is widely applied in various fields, especially in digitization and data transfer. Let’s explore the definition and the working mechanism of OCR below.

Definition of OCR

OCR stands for Optical Character Recognition. It is a technology specifically designed to read text data, whether typed, handwritten, or printed, from image files that machines can read. OCR is considered a professional digital scanning tool for transmitting and entering various data types. This technology is commonly used to digitize invoices, passports, business cards, and other documents.

The development of OCR technology gained prominence in the 1990s as efforts were made to digitize historical newspapers. Since then, it has been rapidly improved to offer highly accurate results. Using OCR, digitalized documents are searchable, editable, and can be stored electronically, thus optimizing document storage space by displaying them digitally.

>> See more: What is ICR? Optimize the Digitization Process with ICR Technology

How does OCR work?

OCR involves analyzing the light and dark regions of an image. This technology automatically identifies light areas as the background and dark areas as written characters, transforming text within an image into digital text following these steps:

Step 1 – Image Acquisition: OCR technology equips a scanner to capture the image, read, and convert it into binary data. The software then analyzes the scanned image, categorizing the light areas as the background and the dark areas as text.

Step 2 – Pre-processing: OCR filters out noise and helps the system analyze the image more accurately by adjusting alignment, removing noise, cleaning borders, and recognizing handwritten text.

Step 3 – Text Recognition with Two Specific Methods:

• Pattern Matching: Separates characters in the image and compares them with stored fonts or patterns.
• Feature Extraction: Breaks down characters into specific features, and the result is compared with stored fonts for matching.

Step 4 – Post-processing: After analysis, OCR processes the image and converts the extracted text data into files stored on the computer.

Why is OCR technology important?

By understanding the definition and operation of OCR, you can better appreciate the significance of this technology in today’s document digitization. OCR technology is essential because it simplifies the conversion of printed documents into digital files that computer systems can easily process. OCR is commonly used for data entry and transmission, allowing digital documents to be easily searched, edited, and managed online.

OCR is crucial because it offers numerous benefits to individuals and businesses, while maximizing time and cost savings. Furthermore, editing becomes more accessible, especially aiding the visually impaired and blind, while leveraging artificial intelligence to improve accuracy and efficiency.

Key Components of OCR

So, what key components of OCR make it highly valued and widely used in many fields today? Below, we’ll provide a comprehensive analysis to offer a general understanding.

Image processing

Image processing is a critical step in OCR that enhances the image quality and prepares it for text recognition. This includes basic techniques like image acquisition and preprocessing, which clarify and sharpen text in the image, making it easier for the system to recognize.

Image segmentation

Image segmentation is essential for optimizing workflows with OCR. It breaks the image into smaller units, such as lines, words, and characters. Each character is enclosed within a rectangular region that contains corresponding pixels.

Automatic Character Recognition

Character recognition is the process that identifies segmented characters from the image and converts them into machine-readable data. This involves techniques like pattern recognition, feature recognition, and stroke recognition, each serving a different function in character identification.

Processing and Output

The final component involves processing and linking the recognized characters to generate a readable document. It includes error checking, corrections, and outputting the final document, ensuring the most accurate results for the user.

Benefits and Advantages of OCR

What are the benefits and advantages of OCR make it one of the most optimal solutions for businesses today? Below, we provide accurate insights.

Saves Time and Effort

OCR automates data entry and extraction, saving considerable time and effort. It converts printed documents into digital files that can be quickly processed, eliminating the need for manual data collection. OCR’s ability to scan images 50-60 times faster than manual methods enhances operational efficiency.

Maintains Format and Structure

OCR preserves the original format and structure of data during scanning and recognition. It can convert non-editable files into editable documents without needing to retype the text, ensuring relative accuracy.

Improves Document Search and Management

OCR facilitates the creation of various data types by accurately scanning documents. This enables users to efficiently search for and locate documents using basic keywords, making adjusting and correcting text errors easier.

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Applications of OCR Technology

The applications of OCR technology are broad and varied, making it a valuable tool for individuals and businesses. The following sections provide a detailed analysis to help understand the potential of OCR before applying it to real-world tasks.

Converting Paper Documents to Digital Format

OCR enables the quick and accurate conversion of paper documents into digital formats. This capability streamlines data processing and analysis by other business software. With OCR, users can avoid manually re-entering text, which saves time, reduces costs, and optimizes operational efficiency while boosting productivity.

Scanning and Recognizing Information from ID Cards

OCR can automate the data entry by scanning and converting information from identification cards. This technology combines hardware and software to scan and process the text, improving image quality, contrast, and zoom based on user requirements.

Automating Data Entry Processes

OCR automates data entry processes by extracting text from documents and converting it into editable data. This automation is widely applied across various sectors such as banking, healthcare, and education, enhancing user productivity compared to manual data entry.

Facilitating Document Search and Classification

OCR technology enables the creation of searchable text, allowing users to quickly find and locate documents using keywords. It ensures efficient text editing and handling, speeding up work processes.

OCR Solution: Advanced Professional Data Automation

Conclusion

OCR has revolutionized data processing by helping businesses advance and integrate internationally. However, with growing market demand, selecting a high-quality, reputable OCR service provider is essential.

MPBPO, a leader in document digitization services using OCR technology, offers a comprehensive suite of BPO services, including data entry, financial processing, content writing, image processing, and more. MPBPO aims to combine the strengths of both Vietnamese and Japanese business cultures, delivering internationally recognized BPO services to customers worldwide.

Contact us now via hotline or website for the latest OCR-based document digitization services.