What is OCR? Applications of Optical Character Recognition Technology

Issues surrounding what OCR is, as well as the mechanism and applications of OCR in practice, are of interest to many organizations and businesses. Optical character recognition (OCR) technology allows users to convert images containing handwritten, typed, or printed text into editable and searchable text on the computer. Let's learn more about this technology by sharing in the article below!

What is OCR?

OCR stands for Optical Character Recognition, which was formed from the research fields of pattern recognition, machine vision, and artificial intelligence. This technology is created to convert images, handwriting, and typed text (usually scanned by scanner) into editable document text.

OCR technology is commonly used to digitize paper documents, such as books, invoices, vouchers, or other printed documents, saving time and effort compared to manual data entry.

How OCR works

Optical character recognition software works in the following steps:

Step 1: Image acquisition

A scanner reads the document and converts it into binary data. OCR software then analyzes the scanned images, categorizing light areas as the background and dark areas as text.

Step 2: Preprocessing

OCR software cleans images, removing errors in preparation for reading. Some of the leading cleaning techniques include:

• Straighten and skew scanned documents to correct alignment errors during scanning.

• Denoising or removing digital image artifacts, smoothing the edges of text images.

• Clean frame borders and straight lines in images.

• Handwriting recognition for multilingual OCR technology.

Step 3: Text recognition

The text recognition process uses two main types of OCR algorithms: pattern matching and feature extraction.

Step 4: Pattern matching

Separating a character image (letter shape), comparing it to a similar stored letter shape. This only works well when the input letter shape has a similar font and proportions to the stored letter shape. This method works best with scanned images from documents typed in stored fonts.

Step 5: Feature extraction

Break down or segment the letter shape into features: stroke direction, junction points, straight lines, and closed-loop curves. The system uses these features to find the most suitable or closest match among the various stored letter shapes

Step 6: Post-processing

After analysis, the OCR system converts the extracted text data into a computer file. Some OCR systems can create annotated PDF files, including the scanned document's previous and future versions.

Benefits of using optical character recognition technology OCR

Save time and human resources

OCR software operates through a batch processing mechanism, capable of scanning large amounts of data, images, and quickly digitizing them. This allows users to access multiple fields of information simultaneously, 50-60 times faster than manual methods, enabling quick control over data input. As a result, businesses can reduce human resources while ensuring work efficiency.

Minimize the possibility of error

Thanks to AI support, OCR technology can quickly recognize document characters with a high accuracy of up to 98%. This helps individuals/organizations/businesses minimize the possibility of errors when entering data, improving work efficiency. In addition, this technology can identify fake documents, limit the possibility of fraud,…

Search data

OCR technology supports creating unique text content from scanned documents. This makes it easier for users to search and locate documents based on keywords or storage dates

Fast data update

OCR technology helps businesses, agencies, and organizations quickly scan, digitize, update, and store large amounts of data daily. This optimizes the workspace, enhances individual productivity, and ensures accurate, secure data storage and classification.

Classification of optical character recognition technology OCR

Simple optical character recognition technology

A simple OCR tool allows for the storage of many different text image formats and fonts as templates. The OCR software will use pattern-matching algorithms, comparing the text image character by character with the internal database. The system of matching text word by word is called optical word recognition. The number of handwritten fonts, fonts is almost infinite, so simple optical character recognition technology cannot record/store all styles and types in the database

Intelligent character recognition technology

Modern OCR technology uses intelligent character recognition (ICR) to read text. This technology uses advanced methods (machine learning) to train the machine to work like a human. A machine learning system called a neural network analyzes the text through multiple levels, iteratively processing the image. 

The system analyzes and finds different image properties (curved lines, straight lines, intersecting lines, loops) and combines the results of all different levels of analysis to produce the final result.

Smart word recognition

Smart word recognition technology has the same operating principle as ICR. However, this technology will process the entire image of the word instead of preprocessing the image into characters.

Optical Symbol Recognition

This technology allows the identification of watermarks, logos, and other text symbols in documents.

OCR applications in daily life

5.1. Support for the visually impaired

In 1970, the American company Kurzweil Computer Products Inc. OCR technology capable of recognizing this font was integrated with speech synthesis technology so that machines could read and understand all text types, becoming computerized voices. As a result, texts, magazines, and more could be read aloud or turned into audiobooks, making it easier for the elderly and hearing-impaired individuals to access information and documents in a more convenient and accessible way.

5.2. Preserve valuable documents and documentary heritage

Applying optical character recognition (OCR) technology to the storage process, documents, texts, and books of high cultural and historical value will be converted from paper to soft files, easy to preserve, ensuring safety and avoiding damage from the impact of the environment and other factors. 

For example, museums, historical cultural centers, libraries, etc., use this technology to preserve valuable documents/heritage materials, simplifying storing and preserving these documents and materials. 

5.3. Personal identification 

OCR technology is capable of scanning and recognizing important documents such as ID cards, passports, driver's licenses, etc., helping to minimize errors in the data entry process. Optical character recognition technology also supports competent agencies and organizations in retrieving citizens' personal information quickly and accurately.

For example, you can make and receive a bank card at the TPBank Livebank counter in about 10 minutes. OCR technology will scan the documents, send them to the teller, complete the registration form, and receive the card quickly.

5.4. Arrange documents

OCR technology scans and analyzes text images, supporting businesses, organizations, and individuals in digitizing and organizing documents quickly and conveniently by keywords or storage date.

For example, OCR technology allows lawyers and law offices to synthesize, digitize, and store legal records related to each case by date of conviction/case number, helping to store accurately and safely and save time when searching.

5.5. Processing invoices and documents 

OCR technology allows individuals to convert contracts, invoices, etc., and related documents into digital form for easy storage, editing, and sharing, limiting errors in sorting and classification. Data will be stored in the system, allowing integration with fax, EDI, and email platforms.

For example, a paper copy of a house sale contract,… after being signed, will be scanned by OCR technology and converted into digital form for storage.

Currently, at FPT IS, many products are applying OCR technology, such as:

• FPT eID digital authentication anti-counterfeiting solution: Applying OCR technology to scan and extract information from chip-embedded ID cards

• FPT Digital Accounting automatic input invoice processing solution: Applying OCR technology to extract invoices after 3 seconds automatically.

• FPT.PetroInvoice petroleum electronic invoice solution: Applying AI camera and OCR technology to read and extract data on the pump, helping petroleum units issue invoices each time.

Conclusion

The information shared about OCR and its practical applications compiled by FPT IS through the above article will help businesses better understand optical character recognition technology and the benefits it brings when using it. If your business is looking for digital transformation solutions using OCR technology, please leave your contact information HERE so that FPT IS experts can contact you for consultation as soon as possible.