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The advantages of optical character recognition are enormous. This technology enables computers to identify and process images of text that have been scanned or photographed. It is used to turn scanned documents or PDFs into editable files, for example, to make copies of a document without having to retype everything.
Some of the advantages of optical character recognition include increased productivity, enhanced data entry accuracy, reduced operational and storage costs, improved compliance, and data recovery.
It is a technology that has been around for many years and has been used in various industries. The interesting thing about this technology is that it not only recognizes the characters on the page, but also the layout of the document and its formatting. This makes it much easier for people who are visually impaired to read as they do not have to spend time adjusting their reading settings on their device or software.
OCR software can be used in different ways depending on what you want to do with the scanned document. For example:
- If you want to convert your scanned documents into editable files, OCR software will give you an editable file that still needs some editing and formatting before it’s ready for publishing.
- If you want to extract data from your scanned documents, OCR software will give you data in a spreadsheet or other format that can be easily manipulated and analyzed by other programs.
If you are looking into investing in an OCR software, I highly recommend reading the below article
In this article, we will cover the top 9 advantages of optical character recognition and how this technology can help organizations automated data capturing without human intervention.
What is Optical Character Recognition?
Optical Character Recognition (OCR) is a process that enables the conversion of images of text into machine-readable text.
OCR is used in many industries such as, retail, finance, and healthcare. It can be used to scan documents and convert them into digital files or to scan barcodes on products to identify prices.
In order for OCR to work properly, the document needs to be scanned at a high resolution so that all the letters are clearly visible.
9 Top Advantages of Optical Character Recognition
OCR has many advantages and can be used in many different ways. In this section, we will discuss some of the most important benefits of OCR.
Here are the top 9 advantages of optical character recognition
1- Boost Productivity
OCR software assists organizations in increasing efficiency by allowing for faster data retrieval when needed.
It allows businesses to minimize document processing time by up to 80%. When the manual process is eliminated, staff are free to focus on other vital elements of the business. This considerably boosts the company firm’s productive output.
2- Enhanced Data Entry Accuracy
Inaccuracy is one of the most difficult aspects of data entry. Reduced mistakes and inaccuracies arise from automated data input methods resulting in efficient data entering.
Furthermore, automatic data entry may successfully address issues such as data loss. Because there is no human intervention, concerns such as inadvertently or intentionally entering incorrect information may be avoided.
3- Increased Data Security
One of the most significant advantages of optical character recognition is its ability to improve data security, resulting in less information leakage and suppressing critical information..
OCR can automatically recognize sensitive information and protect it from unauthorized employees with the use of AI and Machine Learning.
Furthermore, while converting paper documents to digital, you can use various security measures to ensure that only authorized personnel can read and alter the papers.
4- Reduced Storage Space Costs
One of the main advantages of optical character recognition and one of the primary reasons why firms engage in such solutions is cost reduction.
Paper documents can require huge physical storage facilities to be preserved and kept for as long as the company requires them.
The cost of storage will be greatly lowered when you digitize documents and store them on the cloud or in your internal servers.
5- Reduced Costs
OCR assists businesses in reducing costs across different disciplines and departments. It has the potential to minimize the need for data entry professionals, as well as printing, shipping, and copying.
There are many ways in which OCR can reduce operational costs. One way is by automating the process of data entry. This can reduce the amount of time and money spent on manually entered data.
Additionally, OCR can help to improve the accuracy of data entry, which can save time and money that would otherwise be spent on correcting errors.
It can also help to speed up the process of retrieving information from documents, which can save time and money in the long run.
6- Improved Compliance
Organizations can use OCR to automate the collection and analysis of data from documents, which can help improve compliance with regulations. By automating the data collection process, OCR can help ensure that data is collected accurately and consistently, which can help reduce the risk of human error.
Additionally, OCR can help organizations keep track of changes to documents over time, which can help identify potential compliance issues.
7- Enabled Disaster Recovery
One of the most significant advantages of optical character recognition (OCR) is the capacity to backup digital documents and retrieve them in the event of a disaster. This ensures that your information remains accessible regardless of what happens.
Because losing information may be extremely damaging to enterprises, enabling disaster recovery is a key benefit of OCR.
8- Faster Information Retrieval
OCR can help to speed up information retrieval by allowing users to search for text within images. This can be particularly useful when trying to find a specific piece of information within a large document, or when trying to locate a particular image within a collection of images.
According to recent surveys, employees spend more than 30% of their everyday time looking for information. OCR will aid in making information more accessible to employees, allowing them to focus on more critical duties and make decisions more quickly.
9- Environmentally Friendly
There are many reasons why OCR is considered environmental friendly. One reason is that OCR can help reduce the amount of paper waste. This is because OCR can help convert paper documents into digital format, which can be stored and accessed electronically. This can help save trees and other resources that would be used to produce paper.
Another reason why OCR is considered environmental friendly is that OCR can help save energy. This is because OCR can help reduce the need to print documents. This can help reduce the amount of energy that is required to produce paper and to operate printers.
Finally, OCR can help reduce the amount of greenhouse gas emissions. This is because OCR can help organizations to automate their workflows. This can help reduce the need to use paper and to travel to meetings. This can help reduce the amount of emissions that are produced by these activities.