Why should a business use OCR to convert images into text

The 21st century has been dominated by tech. It has touched humans in every part of the world. At the moment, 4.5 billion people have internet access. Throughout entire human history, no other product or service has had such utility. This has forced businesses to convert all of their data into digital form. So that it can be processed, analyzed, and shared easily. The technology which can perform this task is OCR Technology.

OCR Technology: An Introduction

OCR, Optical Character Recognition specializes in converting printed or scanned images into digital form. The technology used advanced AI to extract readable text from these images. It has shown above 90% accuracy. The global OCR market stands at 10.65 Billion USD in 2022. Businesses constantly strive for process automation, data security, and customer reviews. Due to its high result rate the technology has found its usage in healthcare, large-scale manufacturing, retail, banking, education, and many other fields.

How does OCR works?

The OCR works by following these simple steps.

Image Extraction

An OCR scanner analyzes the input document. The OCR software divides the document into light and dark areas. The light represents the background while dark shows the text. After that, the image is converted into binary numbers.


In preprocessing, the software cleans the image to get it ready for reading. Some basic cleaning techniques are:

  • Deskewing an image to resolve alignment issues
  • Despecking to eliminate any possible digital spots and make the edges smoother
  • Cleansing boxes and lines from a picture
  • Script original for multi-lingual text

Text Recognition

After cleansing the image, the software works its way to text recognition. It can be done in two simple ways:

  • Pattern Matching: The tools separate a portion of an image. After that, it compares it with already stored patterns. This method is perfect for typewritten texts.
  • Feature Extraction: In that method, the software breaks the text down into individual characters. After that advanced AI is used to make sense of the text.


After understanding the text, the software converts it into human language. The NLP programming allows the software to convert binary input into human text. The easiest way to convert any image to text is by using online OCR.

Why should a business use OCR to convert images into text?

So far, we have discussed the introduction and working of OCR technology. This section highlights its importance for business sectors. Here is why we believe every business should use OCR technology to its advantage.

1. Quick Data Entry

Businesses function on data. Without accurate data they can neither plan, execute or improve their targets. So, to get on top, they need quick data inputs. With OCR, the data input has reached unprecedented speed. Instead of manually entering all details, you only need to scan the OCR Code. After recognition, the tool itself fills all the required data.

This helps businesses keep raw materials, supply chain, employees, banking transactions, and output records.

2. Ease of Accessibility

With OCR the data is readily accessible. After conversion, the printed images become searchable. The employees can search the desired areas and amend them accordingly. The employees can also make information blocks and put reference numbers on them. After that, they can extract the whole case study in an instant. The data can also be shared with multiple departments via cloud storage. This practice helps in faster communication. The involvement of technology also makes data more secure and contributes to maintaining transparency.


In businesses, there isn’t any room for errors. Any mistake has its financial cost, which the organization must bear. For example, running the wrong material on assembly lines can stop complete production. The testing, packing, quality, and all departments suffer because of that. To avoid that, companies should introduce OCR scanners, so that the material or any such thing is processed by workers after passing through various checkpoints.

4. Higher Productivity

Automation increases the speed of operations. Humans have limited energy, but the software can work 24/7 with no hiccups. The companies using a complex central OCR system show higher productivity and efficiency. The process becomes faster and more accurate.

5. Better Resource Management

The OCR allows higher management to utilize their resources in a much more productive manner. With faster data automation and processing, the reporting becomes easier.

The same time can be used to generate higher revenues, do research work, and increase the quality of your product.

6. Better Customer Service

The OCR technology gives companies a chance to improve their customer service. With targeted data available, they can understand the demands of a certain region. After working on those, they can come up with a solution for that. The OCR also allows companies to get instant customer feedback. This feedback can be acquired via questionnaires and online forms.

7. Customer Retention

The positive user experience translates into customer retention. If used well, OCR can guarantee customer retention. It can make the customer relations desk job easier by giving consistent updates.

Types of OCR

The OCR technology can be divided into 5 simple types, which are: Intelligent Word Recognition (IWR): The technology is devised to understand complete words instead of identifying singular characters. It is most suitable for extracting handwritten text.

  • Intelligent Character Recognition (ICR): This type identifies singular characters. The type is particularly useful for QR scans and blurred images.
  • Optical Word Recognition (OWR): It identifies an optical pattern and compares it with the internal database to do the right selection. The type is useful for typed text.
  • Optical Character Recognition (OCR): This method converts typewritten texts into editable format by identifying singular characters.
  • Optical Mark Recognition (OMR): It recognizes the human input by analyzing the marks & patterns of the document.

Closing Remarks

The business world is shifting towards automation and fast processing. The OCR allows businesses to fast-track their data input, processing, and storage. This article explains why businesses should use OCR technology to improve their production and overall efficiency. We urge you to give these points a read and deploy an OCR system for your benefit.

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