When paired with other applications, Optical Character Recognition (OCR) can deliver amazing results. OCR is the most needed process to organize large volumes of data and to curb the deteriorating data quality. This technology can help in converting the hard readable text in image files or pdfs into machine-readable data that is searchable and editable.

The content-related industry is taking a new shape with the introduction of the latest technologies and the use of software to ease the paperwork. Optical Character Recognition or OCR is one such technology that holds an unimaginable level of benefits and freedom from human error.

OCR applications

However, some businesses still overlook the powering aspects modernity brings in on both industrial and personal levels. An undisclosed source estimates that nearly 10 percent of the global invoice service, which amounts to almost 500 billion, is paperless. The vast 90 percent still have not adapted to OCR technologies.

According to the businesses who haven’t yet shifted towards process automation, they believe it is not ignorance about such technology nor the lack of know-how. Still, they find this shift less necessary when they think it is not cost-effective.

When paired with other applications, Optical Character Recognition can deliver amazing results. According to the industry experts, if OCR technology used correctly, it can be of enormous return value that such processes can bring.

In this article, we have compiled all the advantages of OCR process can bring to businesses in the long run. Still, before getting to that, we must understand this technology and its function.

What is Optical Character Recognition (OCR)?

Optical Character Recognition (OCR) is a software technology mainly used to recognize scanned content or text that is handwritten on a paper or even printed documents. It is electronically converts the scanned image into a readable and editable document to be used for data processing.

How Does OCR Work?

No matter how easy the concept of OCR sounds, the execution, on the other hand, is quite challenging and comprehensive. The reason why this process is challenging is that it depends on various factors to get the results, including-

  • A simple process of letter formation includes a variety of methods and fonts.
  • The conversion of handwritten text can be more challenging and complex than the printed one.
  • The process includes a series of steps, including pre-processing of the image, recognition of the characters, and post-processing of the final result.

Here is a step-by-step process of Optical Character Recognition

  1. Document Scanning

    To decrease the number of variables and enhance the whole process’s efficiency. It ensures perfect content alignment and sizing to convert the document electronically.

  2. Removing Image Imperfections

    To improve the look and feel and the elements, the imperfections like unwanted edges, dust particles, pixels, irregular dark areas etc., are removed to have a clear text converted.

  3. Binarization of Document

    The error-free document is converted into a binary-level image. This image document contains only black and white colors; the black color defines the text or characters, and the white color represents the background.

  4. Character Recognition

    During the process of binarization, the recognition of the black areas as text falls under this process. The OCR uses two algorithms for character recognition- Pattern Recognition & Feature Detection.

  5. Verification

    Once the characters are recognized, the verification is done to check the efficacy and accuracy of words using an in-built dictionary and the original document. The acceptable accuracy rate is 980-990 per 1000 words.

Now that we have a complete idea of the OCR as the process, it is time to get an idea of its application in various industry verticals.

Application of OCR in Various Industry Verticals

  1. Word Processing

    This is the first and foremost area where the use of OCR is in high demand. The physical or print documents can be converted using this technology into readable and editable versions.

  2. OCR in ANPR

    One more sector where OCR is required is ANPR- Automatic Number Plate Recognition, to check the numbers present on the license plates. The purpose of using OCR is to ease the recognition process to generate the invoice of tolls, find the stolen vehicles, calculate the parking fees and more.

  3. OCR in Legal Documentation

    This technology is easing the way of storing legal documentation and gives easy retrieval. Also, one can easily view and share the document with others when in need using OCR as a document converting technology.

  4. OCR in Banking

    Banking is considered the most significant consumer when it comes to the use of OCR technology because it improves data management, empowers documents using AI, controls risk management and gives a sound customer experience when retrieving old documents.

  5. OCR in the Healthcare Sector

    This technology has proved useful even in healthcare sectors by digitally managing and providing access to the patient’s case history in a matter of seconds.

    Not only this, but it is also helping in maintaining the records of the patients, their test reports, treatment details, insurance details, and other essential hospital records.

Advantages of OCR

Optical Character Recognition offers multi-level benefits to the industry sectors mentioned above. Now let’s have a look at the advantages this technology provides.

  • It is Cost-effective as it doesn’t require too much of resources; hence the processing cost reduces, and it ultimately leads to making it a low on cost technology that increases the business process.
  • It helps reach accuracy because it eradicates all the scopes of human error.
  • By providing a proper structure to the content, this software not only removes imperfections but also helps speed up the business process.
  • Enhances customer satisfaction as it is easily searchable, accessible, and editable when needed.
  • When a document is appropriately maintained with proper accessibility and editability, retrieving the data becomes easy and stress-free for data miners. This results in improved productivity.


OCR (Optical Character Recognition) is the most necessitated process to organize large volumes of data. Being technical, the process can sometimes still allow scope for errors in terms of missing characters or symbols or even duplicity of words, etc. These types of errors lead to the deterioration of data quality.

If these errors are not fixed, it may lead to inaccurate business actions as everything depends on data extraction and management in every venture.

We at ProGlobalBusinessSolutions provide the most efficient and organized OCR services. This is why there is a need for expert hands to get it done in the most professional and error-free way. Also, we can help you with OCR cleanup for large volume of records.

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