How OCR Technology is Optimizing Processes Across Industries?
Optical Character Recognition (OCR) has been one of the earliest technological evolutions that continues to gain prominence with time. It helps businesses automate the processing of physical documents. With the advent of technology, OCR has continuously evolved to become one of the most robust tools for the corporate world. The global optical character recognition market was valued at $8.93 billion in 2021 and is speculated to hit $10.65 billion in 2030.
How Does OCR Technology Work?
OCR software uses pattern images to scan characters. It further makes various hypotheses about the characters based on which the system provides us with recognized texts. There are two possible approaches that OCR uses to recognize data within an image.
- Feature Detection
Also known as intelligent character recognition and feature extraction, it is one of the most powerful algorithms backing OCR technology. It is not limited by fonts or numbers; feature detection is capable of detecting handwritten texts as well. Additionally, it also leverages character recognition with a particular set of rules for characters. This allows it to see individual components, allowing more accuracy.
- Pattern Recognition
It is also reckoned as matrix matching or pattern matching. Pattern recognition algorithm enables technological devices to identify a plethora of printed texts by evaluating objects with a character library stored in the software. When OCR software detects the shapes that align with the objects, it’ll recognize the data and provide you with a file with utmost accuracy.
How Optical Character Recognition is Helping Industries?
- Financial Services
The conventional banking industry has relied more on paper-based and they are lagging in the adoption of paperless documents. But OCR is helping the sector with the efficient adoption of digital processes, thereby reducing repetitive tasks. The technology has allowed banking institutions to automate data extraction from various accounts and process information more swiftly.
The automated process includes accurate scanning of forms and images, analyzing them, and validating information to mitigate any probabilities of errors or omissions. Boasted with valuable features, OCR helps in easing data management and improve the quality of customer services.
Millions of medical claims are processed annually, leading to a lot of paperwork and manual processing. Things get even more complicated if the records are incorrect or go missing, which happens more than you think. But over the past few years, the industry has been pushing to convert from paper-based medical records to digital records. Optical Character Recognition helps boost the process of filling and analyzing medical forms, claims, or any other data healthcare center produces.
A powerfully automated system can reduce errors and improve the accessibility to medical information. Medical centers can have 24×7 accessibility to records such as medical claims forms, medical history, pharmacy records, etc. at the click of a few buttons and make timely decisions at critical times.
- Automobile Industry.
During production, automobile parts and accessories must reach the correct vehicle and be in the right order. Typically, manufacturers stamp the parts with serial numbers to eliminate any mistakes but OCR can make this process easier. By implementing Optical Character Recognition, the plants can read any serial number on the parts without any impact on the production cycle.
Integrating video cameras with OCR technology allows manufacturers to collect data from each part as it moves their conveyor belt to ensure all the parts are labeled accurately. Additionally, OCR provides an effective way to track the processing of raw materials and packaged products to improve the business flow.
The logistics industry has struggled to retrieve data from account payable invoices, bills, packing lists, and commercial invoices. OCR software automates the data entry process thereby easing documenting processing and data extraction. Additionally, automated data processing helps in mitigating manual errors and identify inaccuracies in the document.
OCR software solutions help logistics companies to sort documents, categorize them and extract the data when required. In a conventional method, all these tasks are performed manually and take up a significant amount of time. However, with OCR the time and effort can be reduced that can be directed to more important tasks.
Paper forms, scanned documents, invoices, physical contracts, etc. are a part of businesses’ workflow. However, this paperwork takes a lot of time and storage space. OCR technology helps in converting text images to text data that can be easily analyzed by software. Thereafter the data can be used to streamline operations, perform analytics, automate processes, boost productivity and improve customer service.
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Our experts are positioned to deliver immediate value to our clients by helping them identify and implement IoT applications. We have helped companies reimagine their business processes, and applied machine learning to derive meaningful inferences for future implementation.
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