OCR - The key technology for digitizing documents

Optical Character Recognition (OCR) is a revolutionary technology that helps companies extract data from printed or handwritten documents and use it digitally. OCR enables companies to automate their document processing, reduce costs and increase the efficiency of their processes at the same time. OCR is part of the umbrella term hyperautomation. 

What is OCR?

OCR stands for Optical Character Recognition and refers to the technology that recognizes printed or handwritten text from physical or digital documents and converts it into machine-readable data. This includes, for example:

• Scans of invoices, contracts or forms
• Handwritten notes and reports
• Digital images or PDFs that contain non-editable text

With OCR, companies can extract large amounts of information from documents, structure it and make it usable for further processes

How does OCR work?

The process of optical character recognition takes place in several steps:

1. Image capture:
   Documents are scanned or digitized so that the data is available as image files.

2. Text recognition:
   OCR software analyses the image file, recognizes characters, words and structures.

3. Data extraction:
   The recognized information is converted into a digital, machine-readable format (e.g. Excel, XML, JSON).

4. Data processing:
   This data can be integrated directly into systems such as ERP, CRM or workflow tools.

Example:
An invoice is scanned, the OCR software reads the content such as invoice number, amount and payment date and automatically transfers this data to the ERP system.

Advantages of OCR

1. Automation of document processing:
   OCR eliminates the need for manual data entry, saving time and resources.

2. Error reduction:
   Automated text recognition minimizes errors that often occur with manual input.

3. Time saving:
   Large volumes of documents can be analyzed and processed in seconds.

4. Accessibility and archiving:
   OCR enables digital storage and searchability of documents, which facilitates archiving and retrieval.

5. Integration with automation technologies:
   OCR can be seamlessly combined with RPA tools such as UiPath Document Understanding to automate end-to-end processes.

Use cases in different industries

1. Finance and accounting

Example:
Invoices are scanned and OCR reads invoice numbers, amounts and due dates to automatically transfer the data to an accounting system.

Advantage:

• Faster invoice processing
• Better compliance thanks to standardized processes

2. healthcare

Example:
Hospitals use OCR to digitize patient data from handwritten doctor's letters or prescriptions

Advantage:

• More efficient patient management
• Improved data accuracy and availability

3. logistics and transportation

Example:
Delivery and shipping documents are digitized, and OCR extracts shipping addresses and product details to optimize the supply chain.

Advantage:

• Faster processing of transport documents
• Improved transparency in the supply chain

4. Public sector

Example:
Public authorities use OCR to digitize application forms and automatically transfer them to their databases

Advantage:

• Reduction in processing time for applications
• More efficient administration and data storage

Challenges and solutions during implementation

Challenges:

1. Complex layouts: OCR can have difficulties with unstructured or poorly scanned documents
2. Languages and fonts: Different fonts, languages or handwritten text can affect accuracy.
3. Data integration: The extracted data must be integrated into existing systems.

Solutions:

• UiPath Document Understanding: This advanced OCR solution handles complex layouts and works with AI-powered models to accurately recognize even unstructured data.
• Training of OCR models: Adapting the software to specific document types significantly improves accuracy.
• Seamless integration: Tools such as UiPath enable smooth connection of extracted data with other applications.

Why Lunatec?

Lunatec is your expert for the implementation of modern OCR solutions. We support you in extracting unstructured data from documents, integrating it seamlessly into your workflows and optimizing your processes. With our expertise in UiPath Document Understanding, we create end-to-end automation solutions for your company.

Conclusion

OCR is an essential technology for increasing the efficiency and precision of document processing. By combining OCR with automation tools such as UiPath, organizations can transform their workflows and drive digital transformation. Contact Lunatec to find out how OCR can improve your processes.