Definition
Optical Character Recognition (OCR) is a technology that converts digitally scanned or handwritten text into a machine-readable format. Businesses use it for digitization by converting text images into text data, which other applications can read and analyze. OCR helps businesses to streamline operations, conduct analytics, automate processes, and enhance productivity.
The History of OCR
In 1974, Ray Kurzweil founded Kurzweil Computer Products Inc., which developed an omni-font OCR system to read printed text in any font. He used this technology in a reading device that could read text aloud in a text-to-speech format. However, Kurzweil sold the company to Xerox in 1980, which wanted to commercialize paper-to-computer text conversion.
Optical character recognition became widespread in the early 1990s to digitize historical newspapers. The technology has seen numerous advancements over the years, and today, it delivers near-perfect accuracy.
Before the invention of the OCR technology, the only option to digitize documents was manually reentering the text. This method was time-consuming and often produced inevitable inaccuracies and typing errors. Currently, OCR is widely available to the public. For example, you can use Google Cloud Vision OCR to scan and save documents on your smartphone.
How OCR Works
- OCR software employs sophisticated algorithms and machine learning technology to examine text images and detect each individual character.
- The software converts the characters into machine-readable text.
- The converted text can be used in various ways, such as searching and indexing documents and automated data entry.
OCR Applications
- Document management: Organizations can use OCR to convert paper documents into searchable digital text.
- Healthcare: Healthcare facilities can use OCR to convert printer medical documents into digital formats that are easily searchable and accessible.
- Retail: OCR can read and process product pricing tags, labels, and receipts.
- Transportation: OCR can be used in the transportation sector to automate ticketing, recognize license plates, and collect tolls.
The Benefits of OCR
- Eliminates redundant manual input, cutting costs.
- Simplify workflows by using preprinted documents or written forms and accelerate research with searchable digital data.
- Automates content processing, document routing, and preparation for text mining.
- Centralize and protect data sets against fires, break-ins, and documents lost in the bank vaults.
- Provides better access to data for visually impaired personnel.
- Enhances service delivery by giving employees the latest and most accurate information.