Optical Character Recognition – Why do Businesses Need to Use this Technology? 

Optical Character Recognition – Why do Businesses Need to Use this Technology? 

The Digital era demands the latest technologies to compete with modern needs. Businesses have gone so far in implementing state-of-the-art solutions in their systems to streamline their operations. Data entry and document analysis are common things every other business needs to do. Companies need the latest software for their smooth services.

Document analysis is required in different organizations, and automated software for this purpose lessens the burden of manual work. Using technology, they examine various documents & images and also process them through special techniques. OCR technology is a way that allows businesses to take help through software to edit the text in photos. It analyzes any text in images and converts them into files that machines can read easily. 

What is OCR Technology?

OCR is an effective, time-saving, and cost-effective approach for businesses to utilize automated data extraction. OCR software extracts data from scanned documents and camera images. The software identifies an image’s letters and converts them into words and sentences. It enables the editing of the original document and eliminates the requirement for manual data entry. Optical text recognition uses a combination of hardware and software to convert physical and printed documents into text that machines can read. Hardware has a specialized optical scanner, while software usually handles advanced processing. 

This technology can benefit from using artificial intelligence to implement the latest methods of Intelligent Character Recognition (ICR). These methods involve the identification of languages or different styles of handwriting. Mostly, the use of the optical character recognition process is to convert historical documents or hard copies into pdf documents. It enables editing, formatting, and searching of documents as if they have been created through a word processor. 

How does Optical Character Recognition Work?

In OCR, printed documents are converted into digital text files. All the pages of documents are copied and converted into black-and-white or two-color versions. The dark parts of the document are identified as characters, while white areas are considered backgrounds. Then numeric digits or alphabetic letters are found by processing the dark areas. In this process, one character or word of text is targeted at a time. After this, feature recognition or pattern recognition identifies the characters. 

Feature detection occurs once the OCR character recognition applies rules regarding features of a particular number or a letter for recognizing the characters in scanned documents. Features include several cross-line angled lines or curves in character. For example, the capital letter “A” presents two diagonal lines with a horizontal line in the middle. After identifying a character, the software converts it into an ASCII code. Computer systems use this code to tackle further tricky aspects of a document. 

Benefits of Optical Character Recognition Services

One key benefit of OCR technology is simplifying the data-entry process by making simple text searches, editing, and storage. OCR technology helps businesses as well as individuals to keep data on their devices by ensuring constant access to all documents in an easy way. 

Some major benefits of OCR technology include reduced costs, accelerated workflows, automated documentation, data security, and improved services. 

Use Cases of OCR Technology 

One of the most common and important use cases of this technology is to convert documents of printed paper into such documents that are easily readable by machines. After OCR processing, a word processor such as Google Docs or Microsoft Word edits the document’s text. 

OCR technology automates data to assist visually impaired people and kids or adults who have trouble reading. Examples include license plates, bank statements, invoices, number plate recognition, etc. Through optical text recognition, it becomes easy to integrate scanned documents into a huge data system that can read clients’ data from important printed documents. These documents include bank statements and contracts. Businesses don’t need several employees to examine multiple documents and manually feed information into an automated data processing workflow. They can use OCR software to identify and extract data from an image. After that, they save it in jpg, png, jpeg, tiff, and other formats. 


OCR technology play converts printed documents into digital text files. It helps different businesses identify, analyze, and edit text in images. OCR character recognition enables big-data optimization after converting scanned image documents into pdf files easily readable by machines. Such the latest technologies have become the need of the present time to meet the requirement of routine matters. Digital files prepared by OCR are very helpful for kids and adults who face issues while reading something because digital text can be used with software programs that support reading in various ways.

Also read: Digital Data – Definition

Tech Today Trends

Shiva Ram is a SEO Copywriter, Content Creator and he is specialized in Digital Marketing. He had the interest to write content related to technology, Business, Apps, Digital Marketing and many more.

Leave a Reply