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Document Management
Published on
December 13, 2023
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Chris Williams
December 13, 2023

What is OCR Scanning Used For? Unlocking the Power of OCR

OCR Scanning document
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Optical Character Recognition (OCR) is a transformative technology that converts different types of documents, such as scanned paper documents, PDF files, or images captured by a digital camera, into editable and searchable data. The primary function of OCR is to digitize printed texts so that they can be electronically edited, searched, stored more compactly, displayed online, and used in machine processes such as cognitive computing, machine translation, (extracted) text-to-speech, key data, and text mining. OCR is a field of research in pattern recognition, artificial intelligence, and computer vision.

How Does OCR Work? 

Optical Character Recognition (OCR) is a sophisticated technology that bridges the physical and digital worlds by converting scanned images of text into editable digital formats. The process involves several stages, each critical to the accuracy and efficiency of the conversion. Here’s a detailed look at how OCR technology works.

OCR scanning

1. Image Preprocessing

The first step in OCR is preparing the scanned image to improve its readability. This phase includes:

  • Image Cleaning: Removing noise and correcting distortions.
  • Normalization: Adjusting brightness and contrast for clearer text visibility.
  • Deskewing: Straightening any tilted or skewed images.
  • Binarization: Converting the image to black and white to distinguish text from the background.

2. Text Detection and Segmentation

Once the image is preprocessed, OCR software detects text areas. It involves:

  • Layout Analysis: Identifying blocks of texts, images, and other elements.
  • Line and Word Segmentation: Breaking down text blocks into individual lines and then into words.

3. Character Recognition

This is the core of the OCR process, where individual characters are identified:

  • Pattern Recognition: Each character in the segmented words is compared against a stored database of character images.
  • Feature Extraction: The software analyzes specific features of a character, like lines and curves, to differentiate between various characters.

4. Post-Processing

After characters are recognized, the software performs:

  • Spell Checking and Contextual Analysis: Correcting mistakes and ensuring that the recognized text makes sense in context.
  • Formatting: Retaining the original formatting of the document as closely as possible.

5. Conversion to Editable Formats

Finally, the recognized text is converted into a digital format such as a Word document or a PDF. This text is now searchable and editable.

Advanced OCR Technologies

Modern OCR systems often integrate advanced technologies for better accuracy:

  • Machine Learning: Improves recognition accuracy over time by learning from corrections and new text patterns.
  • Natural Language Processing (NLP): Helps in understanding the context of the text for better accuracy, especially useful in recognizing idiomatic expressions or industry-specific terminology.

Challenges in OCR

Despite advancements, OCR can face challenges like:

  • Handwriting Recognition: Handwritten texts present variability that can be challenging for OCR systems.
  • Complex Layouts: Documents with intricate layouts or mixed media (like images and text) require sophisticated analysis.
  • Font Variability: Unusual fonts or decorative texts can be harder to recognize accurately.

What are the types of OCR?

Optical Character Recognition (OCR) technology has evolved significantly, leading to the development of different types of OCR systems, each designed to meet specific needs and challenges. Understanding these types allows users to choose the most suitable OCR solution for their particular requirements. Here's an overview of the main types of OCR technologies.

types od OCR

Optical Character Recognition (OCR)

This is the most basic and common form of OCR. It involves:

  • Character-by-Character Recognition: Identifying individual characters from scanned documents or images.
  • Font-Dependent Recognition: Works best with standard fonts and clear print.

Intelligent Character Recognition (ICR)

ICR is an advanced form of OCR that offers:

  • Handwriting Recognition: Ability to learn and recognize different handwriting styles.
  • Adaptive Learning: Improves accuracy over time by learning from new handwriting samples.

Optical Mark Recognition (OMR)

OMR is specifically designed for recognizing:

  • Marked Data: Such as filled checkboxes or bubbles in surveys, exams, and forms.
  • Simple Yes/No or Multiple Choice Data: Commonly used in quizzes, voting systems, and feedback forms.

Intelligent Word Recognition (IWR)

IWR is a step beyond ICR, focusing on:

  • Whole Word Recognition: Instead of individual characters, it recognizes entire words.
  • Contextual Understanding: Better at interpreting handwritten texts in context.

Optical Word Recognition (OWR)

OWR is similar to IWR but typically deals with:

  • Printed Words Recognition: Focusing on words in printed materials rather than handwritten texts.

Magnetic Ink Character Recognition (MICR)

MICR is specialized for:

  • Banking Documents: Recognizing characters printed in magnetic ink, like on checks.
  • Security and Speed: Used for its security features and quick processing.

Barcode Recognition

Although not traditional OCR, this type involves:

  • Decoding Barcodes: Reading and interpreting barcode data.
  • Wide Application: Used in retail, inventory management, and logistics.

Mobile OCR

With the rise of smartphones, mobile OCR offers:

  • On-the-Go Scanning: Using smartphone cameras for instant text recognition.
  • Applications: Includes translation apps, reading aid tools, and mobile document scanning.

Multilingual OCR

For global applications, this type supports:

  • Multiple Languages: Recognizing and processing text in different languages and scripts.
  • International Use: Essential for global businesses and multilingual documents.


An emerging field, 3D OCR involves:

  • Recognizing Text on 3D Objects: Like text on products, packaging, or machinery.
  • Complex Imaging and Processing: Using advanced imaging techniques for non-flat surfaces.

What are the benefits of OCR?

Optical Character Recognition (OCR) technology is a powerful tool that transforms the way businesses and organizations manage and interact with their information. Its primary benefit lies in converting physical documents into digital formats, but the advantages extend much further.

  1. Increased Efficiency and Productivity: OCR significantly speeds up the data entry process by automating it, which in turn streamlines workflows. This automation not only saves time but also enhances overall productivity within an organization. By simplifying document handling and management, businesses can process and respond to information more quickly, leading to a more efficient operational model.
  1. Enhanced Accuracy: One of the notable advantages of OCR is the reduction in human errors commonly associated with manual data entry. OCR provides a consistent and accurate method for data capture and storage, which is essential in maintaining the integrity of the data.
  1. Cost-Effectiveness: By reducing the need for manual data entry, OCR technology cuts down on labor costs. Additionally, digitizing documents leads to a decrease in the need for physical storage space, thus saving on the costs associated with paper file management and storage.
  1. Better Data Security: Digital documents offer enhanced security options, including encryption and secure backups. With OCR, organizations can control access to sensitive information more effectively, ensuring that only authorized personnel can view or modify important documents.
  1. Environmental Benefits: A significant yet often overlooked benefit of OCR is its contribution to environmental sustainability. By reducing paper usage through digitization, organizations can lower their environmental impact.
  1. Compliance and Auditing: OCR simplifies the process of complying with regulatory requirements. Maintaining and retrieving digital records becomes more straightforward, facilitating easier audits and compliance with industry standards.
  1. Data Analysis and Business Intelligence: Once data is digitized, it can be used for further analysis. This ability to mine and analyze data leads to better business intelligence, aiding in informed decision-making and strategic planning.
  1. Space Saving: The digitization of paper documents helps in decluttering physical spaces. An organized digital archive is far easier to manage and maintain than voluminous physical files.
  1. Customer Satisfaction: Faster processing of documents leads to quicker service delivery, which enhances customer satisfaction. In customer-facing industries, the improved accessibility and management of information translate to a better user experience.
  1. Versatility: OCR's versatility makes it suitable for a wide range of applications across various sectors such as banking, healthcare, education, legal, and government operations. Its capability to handle multiple languages further makes it an invaluable tool in global business operations.
  1. Facilitating Digital Transformation: OCR is a key enabler in the digital transformation of organizations. It aligns with modern technological advancements, allowing businesses to stay competitive in a rapidly evolving digital world.

What is OCR used for?

Optical Character Recognition (OCR) has a wide array of applications across various sectors, fundamentally changing the way businesses, governments, and individuals handle and process information. Its primary use is to convert images of text from scanned documents or photos into machine-encoded text, but its uses extend into many practical and innovative areas.

  • Data Entry and Digitization: OCR is extensively used to convert printed paper documents into machine-readable text formats. This is particularly useful in digitizing historical records, archiving documents, and converting printed material into digital databases.
  • Automating Business Processes: In the business world, OCR streamlines workflows by automating data extraction from paper documents, such as invoices, receipts, and forms. This automation reduces manual labor, speeds up processing times, and increases overall efficiency.
  • Banking and Finance: OCR plays a crucial role in the banking sector for processing cheques, reading credit card statements, and handling various financial documents. It helps in automating the extraction of crucial data, thereby speeding up transactions and reducing errors.
  • Legal and Government Documents: OCR is used to digitize legal and governmental paperwork, making it easier to search, store, and manage important documents. This technology aids in ensuring compliance, maintaining records, and simplifying the retrieval of information.
  • Healthcare Records Management: In healthcare, OCR facilitates the digitization of patient records, prescriptions, and medical reports. This not only improves the efficiency of record-keeping but also enhances patient care by providing quick access to medical history.
  • Retail and Commerce: OCR solutions help in inventory management by scanning and recording product information. They are also used in point-of-sale systems to read customer information or process loyalty cards.
  • Education and Research: In academia, OCR is instrumental in digitizing books, research papers, and educational material, making them accessible for research and learning purposes. It also aids in creating digital libraries.
  • Transport and Logistics: OCR simplifies data entry in logistics, from processing shipping labels and tracking numbers to managing freight documentation.
  • Accessibility for the Visually Impaired: OCR technology is used in tools that assist visually impaired individuals by converting text into speech or Braille, making written material more accessible.
  • Language Translation Services: By converting text from images into editable formats, OCR serves as a base for machine translation services, facilitating the translation of documents between different languages.
  • Mobile Applications: With the proliferation of smartphones, OCR has found its way into mobile apps for various purposes, such as scanning business cards, translating text from images in real-time, and even recognizing text in natural scenes for augmented reality experiences.

Optical character recognition use cases

Optical Character Recognition (OCR) technology has a vast range of applications across different industries and sectors. Its ability to convert printed or handwritten text into machine-readable text has made it a key tool in various practical scenarios. Here are some prominent use cases of OCR:

  • Streamlining Office Work: In a typical office environment, OCR is a game-changer. It's used to digitize piles of paperwork, convert old reports into editable formats, and manage documents efficiently. This means less time spent on manual data entry and more on tasks that matter.
  • Revolutionizing Banking Practices: Banks and financial institutions are leveraging OCR for processing cheques, sorting mails, digitizing customer forms, and even in ATM machines for reading deposited cheques. This not only speeds up transaction processes but also enhances customer service experiences.
  • Empowering the Legal Industry: Lawyers and legal professionals often deal with mountains of documents. OCR helps in digitizing case files and legal documents, making it easier to search for specific information and manage case-related documents effectively.
  • Transforming Healthcare Record Keeping: The healthcare industry is particularly benefitting from OCR technology. Patient records, medical histories, and prescriptions are being digitized, ensuring quick access to critical health information and improving the overall healthcare delivery system.
  • Enhancing Retail Operations: From inventory management to processing customer information and invoices, OCR is streamlining various retail operations. It's reducing the time taken to manage stocks and improving the accuracy of billing and customer data management.
  • Simplifying Government Processes: Government agencies are using OCR to digitize public records, automate data entry for public services, and efficiently manage the enormous amount of paperwork involved in governance. This has led to improved public service delivery and better record management.
  • Advancing Education and Research: OCR is playing a vital role in the education sector by digitizing textbooks, academic papers, and library archives. This has not only preserved academic works but also made them more accessible to students and researchers worldwide.
  • Aiding the Visually Impaired: OCR technology is at the heart of creating assistive tools for the visually impaired, such as text-to-speech applications. This has opened up a world of written content to those who were previously unable to access it.
  • Automating Form Processing: Many businesses are now using OCR to extract data from forms like applications and surveys automatically. This has significantly reduced the time and effort required in data processing tasks.
  • Securing Borders with Passport Verification: At airports and border crossings, OCR is used to scan and verify passports and IDs, enhancing security and streamlining the immigration process.
  • Managing Traffic with License Plate Recognition: Traffic management systems use OCR for automatic license plate recognition, which helps in traffic monitoring, law enforcement, and automated toll collection.
  • Breaking Language Barriers in Translation: OCR is integral in translating printed material from one language to another, paving the way for more accessible communication and understanding between cultures.
  • Preserving History through Document Digitization: Historical documents and texts are being preserved for future generations through OCR technology, which helps in digitizing these invaluable materials for archival and research purposes.

Through these varied applications, OCR has proven to be more than just a tool for converting text. It's an essential element in modern data management and processing, playing a crucial role in various fields and contributing significantly to efficiency, accessibility, and innovation.

How can AWS help with OCR?

Amazon Web Services (AWS) offers a range of services and tools that significantly enhance the capabilities and applications of Optical Character Recognition (OCR). These services leverage cloud computing, machine learning, and advanced analytics, providing powerful solutions for businesses and organizations looking to implement or improve OCR processes. Here's how AWS can help with OCR:

OCR scanning
  • Amazon Textract: This is a primary service offered by AWS for OCR tasks. Amazon Textract goes beyond simple text extraction to understand the layout and structure of the document. It can accurately extract data from forms and tables in addition to performing standard OCR on documents. This service is particularly useful for automating document workflows, extracting data for analysis, and processing large volumes of documents quickly and accurately.
  • Amazon Rekognition: While primarily a video and image analysis service, Amazon Rekognition also offers OCR capabilities. It can detect text in images and videos, making it useful for applications like identity verification, license plate recognition, and analyzing visual media for textual content.
  • Scalability and Flexibility: AWS cloud infrastructure allows for the scaling of OCR operations to handle large volumes of data without the need for significant upfront investment in hardware. This scalability ensures that businesses can manage their OCR needs in line with their growth and fluctuating demands.
  • Integration with Other AWS Services: OCR processes on AWS can be integrated with other AWS services for enhanced functionality. For instance, data extracted via Amazon Textract can be stored and managed in Amazon S3, analyzed using Amazon Athena, or used in machine learning models with Amazon SageMaker.
  • Security and Compliance: AWS provides robust security features that ensure the safety and confidentiality of the data processed through its OCR services. This is particularly important for sensitive information such as financial records or personal identification documents. Additionally, AWS complies with various industry standards and certifications, making it a reliable platform for OCR needs.
  • Machine Learning and AI Capabilities: AWS's OCR services are powered by advanced machine learning algorithms, which means they continually improve in accuracy and efficiency. Amazon Textract, for instance, constantly evolves to handle various document types and layouts more effectively.
  • Global Accessibility: Being a cloud service, AWS's OCR solutions can be accessed from anywhere, offering flexibility and convenience for remote or distributed teams. This global accessibility ensures that OCR processes can be centralized and managed uniformly across different geographical locations.
  • Cost-Effectiveness: AWS offers a pay-as-you-go pricing model, which means businesses only pay for the OCR services they use. This model can lead to significant cost savings, especially for companies with variable OCR processing needs.
  • Easy Integration with Business Applications: AWS services are designed to be easily integrated with existing business applications and workflows. This ease of integration allows for the seamless adoption of OCR solutions into business processes without the need for extensive modifications.
  • Support and Community: AWS provides extensive documentation, tutorials, and community support, making it easier for businesses to implement and optimize their OCR solutions. This support is invaluable for businesses that are new to OCR or looking to expand their existing capabilities.

Best OCR software for both home and business

Selecting the best OCR software depends on specific needs, such as the volume of documents, the complexity of layouts, and integration capabilities with other systems. Here's a list of some of the top OCR software options, catering to both home and business use:

  • Adobe Acrobat DC: A powerful tool known for its accuracy in text recognition. It's ideal for businesses that need to convert, edit, and securely manage PDF files. Acrobat DC integrates well with other Adobe products and offers advanced features like editing, converting, and signing PDFs.
  • ABBYY FineReader: Renowned for its high accuracy in text recognition and ability to handle multiple languages. FineReader is suitable for both individual and professional use, offering excellent document conversion and editing capabilities, including support for complex layouts like tables and forms.
  • Tesseract OCR: An open-source OCR engine, Tesseract is popular among developers and businesses that require a customizable OCR solution. It's highly versatile and can be integrated into various applications, but it might require technical know-how to set up and use effectively.
  • OmniPage Ultimate: A professional-grade OCR software by Nuance, offering robust features for document conversion and editing. It's particularly useful for large-scale document conversion projects and offers excellent accuracy, batch processing, and support for a wide range of formats.
  • Readiris: This software is known for its speed and efficiency in converting documents into editable formats. It offers a user-friendly interface and is suitable for both personal and professional use, with features like batch processing, document organization, and PDF management.
  • Google Cloud Vision API: Ideal for businesses that require OCR as part of larger automated processes or applications. This cloud-based tool offers powerful image analysis capabilities, including text detection, and can be integrated into various applications and workflows.
  • Microsoft OneNote: While primarily a note-taking app, OneNote's OCR feature is quite effective for personal use. It can extract text from images and is particularly useful for students and professionals for quick conversions of written notes or scanned documents.
  • ScanSoft PaperPort: Designed more for home and small office use, PaperPort is not just an OCR tool but also a document management system. It helps organize, find, and share scanned documents and photos in a simple interface.
  • SimpleOCR: As the name suggests, this is a more straightforward and user-friendly OCR solution, suitable for individuals or small businesses that don’t require advanced features. It’s free and handles basic text recognition effectively.
  • Kofax Power PDF: This software is designed for creating, editing, and converting PDFs with OCR. It's user-friendly and provides a good balance of features for both personal and professional use, including batch processing and integration with cloud services.

Each of these OCR software options has its unique strengths, so the best choice will depend on the specific requirements of the user, such as the need for multi-language support, integration with other software, budget constraints, and the level of accuracy required. For home users, ease of use and basic functionality might be the priority, while businesses might look for scalability, advanced features, and integration capabilities.

How OCR helps streamline processes and increase efficiency

OCR technology streamlines processes and boosts efficiency by automating data entry, eliminating manual transcription and reducing errors. It enhances document searchability, making it easier to index, search, and retrieve digital documents quickly. In workflow management, OCR facilitates seamless sharing, reviewing, and editing, particularly beneficial for remote teams. The technology also reduces physical storage needs, leading to cost savings and a more organized workspace. OCR ensures data accuracy, crucial for decision-making and quality control, with applications in customer service for faster response times. It aids compliance and record-keeping, supporting industries with strict regulatory requirements. Additionally, OCR enables thorough data analysis, converting paper-based data for insights, trend identification, and strategic planning. Overall, OCR is a vital component in the digital transformation of organizations, enhancing operational efficiencies and contributing to modern data management practices.

Does OCR Create an Accessible Document?

OCR (Optical Character Recognition) technology is designed to convert images of text into machine-readable text formats, which is a significant step toward creating accessible documents. However, the level of accessibility depends on various factors. The digitized text produced by OCR can be read by screen readers, making it accessible to visually impaired users. This is a huge advantage over scanned images or non-searchable PDFs that screen readers cannot interpret. Nevertheless, for a document to be fully accessible, it must have a logical structure, including headings, lists, tables, and alternative text for images, which OCR alone may not provide. Therefore, while OCR is a crucial component in creating accessible documents, additional formatting and structuring are often required to meet full accessibility standards.

Do I need to Proofread and Correct an OCR output?

Proofreading and correcting OCR output is essential, especially in professional or official contexts. While OCR technology has advanced significantly, it is not infallible. Errors can occur due to poor-quality source materials, complex layouts, unusual fonts, or the presence of handwritten text. These errors could lead to misinterpretations or misrepresentations of the content. Therefore, proofreading ensures the accuracy and reliability of the OCR output. In legal, academic, or business settings, where the integrity of the data is paramount, this step is critical to maintaining the quality and trustworthiness of the digitized documents.

What if My OCR Output is Really Bad?

Poor OCR output can result from various factors, including low-quality source documents, complex or unusual fonts, and poor scanning practices. If the OCR output is consistently poor, consider the following steps:

  • Improve the Source Quality: Ensure that the documents are scanned at a high resolution and are as clear as possible.
  • Choose the Right OCR Software: Some OCR tools are better at handling certain types of documents or fonts than others. Experimenting with different OCR software can yield better results.
  • Optimize Scanning Settings: Adjust the contrast and brightness settings during scanning to enhance the clarity of the text.
  • Use Preprocessing Tools: Some software offers preprocessing options like de-skewing and noise reduction that can improve OCR accuracy.
  • Seek Professional Help: If the documents are particularly challenging (e.g., ancient manuscripts), professional services might provide better OCR results due to their expertise and specialized equipment.


In conclusion, Optical Character Recognition (OCR) technology is a transformative force, converting printed or handwritten documents into editable, searchable formats and streamlining workflows across industries. Its efficacy hinges on source material and software quality, demanding careful proofreading for precision. Overcoming challenges, such as poor-quality outputs, necessitates improved sources, advanced OCR tools, or manual intervention. Various software options, from basic free tools to advanced applications, cater to diverse needs. In our digital world, OCR is indispensable, bridging the gap between physical and digital data. Ongoing evolution and integration with AI and machine learning promise greater capabilities, solidifying OCR as a cornerstone in digital transformation and information management.

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