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Turning Images into Words: The Power of Optical Character Recognition
Optical Character Recognition (OCR)

Although we’re living in the golden age of digital content, many companies still rely on printed files. Physical documents might be easy to access, but they take up physical space, and extracting or editing information from them may be difficult.


Even if you scan the documents, you end up with an image but still can’t directly access the text within. That’s where OCR (optical character recognition) comes in.


OCR software allows you to convert images or scans into editable text, streamlining your data entry processes and improving productivity. Here’s how you can do it.

What Is Optical Character Recognition (OCR)?


OCR is the process of converting typed, handwritten, or printed text from images to machine-coded text.  


For example, if you have a scanned document or a picture with text, you can’t use a text editor to modify, search, or count the words in the image or document. Instead, OCR technology can extract the text and give you a machine-readable version that you can copy or edit.

How Does OCR Work?


Most OCR software follow a systematic four-step approach when extracting text from images and scanned documents.

1. Image Analysis

The first thing OCR software does is read and scan the documents you provide. During this phase, the software analyzes the file and divides its contents into light, dark, and black-and-white areas.


The light areas are usually considered background data, while the dark areas are typically classified as text.

2. Preprocessing


The next step is to clean the differentiated data and remove any errors that might be present. This is done through several methods, including:


  • Removing digital image spots (despeckling)
  • Smoothing the edges of text images
  • Fixing alignment issues for scanned documents
  • Recognizing the script, in the case of multilingual OCR tools
  • Cleaning boxes and lines in images


3. Text Recognition


The next and arguably most crucial step is text recognition. This is when the OCR software analyzes the contents of a document and recognizes text by one of two methods: pattern matching or feature extraction.

Pattern Matching


OCR technology that uses pattern matching compares character images in a document to pre-stored character images. These characters, also called glyphs, can be letters, numbers, or any type of text.


However, the OCR software will only recognize the text with a font and scale similar to a stored glyph. That’s why pattern-matching OCR software gives the best results if you know the font of the text you’re trying to extract.

Feature Extraction


OCR systems that use feature extraction don’t compare glyphs or try to read text as a whole. Instead, they break down or decompose the glyphs into small parts called features.


These features include lines, curves, line directions, closed loops, and line intersections. For example, the letter “A” might be dissected into two diagonal lines joined by a horizontal one in the middle.  


Once it has these small features, the OCR system matches them to the closest features of other stored glyphs.


It might seem like an extra step, but separating the characters into small pieces and comparing them individually can give more accurate results.

4. Post Processing


Once the character is identified, it’s usually converted to an ASCII code, a 7-bit character code unique to each glyph.


The extracted data is delivered in a computerized file, and some OCR can even create PDFs showing before-and-after versions of the document for comparison.

Types of OCR Software

Simple OCR Software


Simple OCR systems have a reservoir of templates full of different text patterns and fonts. They use pattern-matching tools to identify the text in scanned documents or pictures.


The main limitation of this type of OCR engine is that there are virtually unlimited fonts and styles, which means that you might encounter text that’s not stored in the software’s database.

Intelligent Character Recognition (ICR) Software


Modern OCR software uses ICR (intelligent character recognition) technology, which has a human-like ability to read text. The OCR system uses machine learning software to teach the machine how to read and extract text like a human.


ICR tools process images repeatedly, looking for attributes such as lines, curves, loops, and intersections and deciphering them into text. Although they go through the text character by character, they’re extremely fast and can deliver results within seconds.

Intelligent Optical Word Recognition Software


Intelligent word recognition tools work similarly to ICR systems, but instead of going through the text character by character, they scan whole words at a time.


Afterward, they compare these extracted words to the ones in their databases, identifying them.

Optical Mark Recognition


This type of OCR software helps you identify watermarks, logos, and other symbols that contain text in an image.  

Benefits of OCR

Improved Efficiency


Many people use OCR software to create an automated data entry process. The OCR engine recognizes and extracts the text needed and then inserts it into a spreadsheet, file, or database.


The automated process saves time and reduces the risk of human error, improving the overall efficiency of your work. This is especially helpful for document controllers, HR personnel, and other employees who handle and manually enter large amounts of data.

Enhanced Access to Information


OCR technology can digitize paper documents, making it easier to search, edit, access, and store the information in these files without manual data entry.


If you analyze large amounts of printed documents daily, the OCR can help you process these files and run the extracted text through analytics tools to gain valuable data insights.


Some OCR tools can also integrate with third-party systems such as Salesforce, Zapier, Google Sheets, and Stripe, allowing you to streamline the entire data process.

Versatile Forms of Data


Most OCR software allows you to choose which output format you prefer. For example, you can take printed texts, handwritten files, or scanned images, extract text from them, and download that text in different formats such as:


  • .doc or .docx
  • .xsl or .xslx
  • .txt


Scalability


The larger your business grows, the more data you’ll inevitably need to handle. This means your document processing bandwidth needs to increase proportionally, which you can do with OCR software.


For example, iDox.ai’s Redact Tool can read hundreds of legal documents, identify sensitive information, and edit or redact it within minutes. This allows you to scale your business comfortably without worrying about compliance and regulation backlogs.  

Data Validation


Many OCR systems take data extraction a step further by validating the information against known databases. For example, they could verify the extracted text by matching it to public records to ensure accuracy.


Another typical example is OCR software which is used to extract data from invoices. It can verify critical information like quantity, dates, order numbers, and monetary values by comparing them to the information in purchase orders.

Compliance and Security


OCR systems, such as iDox’s Redact Tool, are invaluable when it comes to audits, especially if they’re compatible with regulations such as SOC-2, HIPAA, and GDPR.


They can review all of your relevant files and extract, redact, and enter data to ensure your company meets global compliance standards.

Examples of Real-world OCR Uses

Business


Optical character recognition eliminates the need for manual data entry, allowing employees to focus on essential business tasks.


Many businesses rely on OCR tools to import data into Excel sheets, improve workflows, and reduce the overall costs of data entry.

Education


Students can quickly take notes and listen as an OCR tool reads them aloud using its image-to-text and text-to-speech functions.


Optical character recognition lets students highlight and underline important words, sentences, or paragraphs. They can even change the color or size of texts and create digital bookmarks.

Healthcare


Healthcare is arguably one of the most important industries that rely on OCR technology. Optical character recognition enables you to extract, edit, and store patient records within seconds.


For example, in an emergency, a physician could retrieve information from a patient’s EHR (electronic health record) and quickly decide on the proper treatment instead of searching through physical files.

Wrapping Up


OCR technology brings physical documents into the digital world, unlocking all kinds of information for you and your business.


If you feel your business could benefit from extra compliance, productivity, and accuracy, check out iDox.ai’s AI tools and transform your workflow right away.

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