How Does OCR Technology Streamline Document Processing and Data Extraction?

Document processing and data extraction are two of the fundamental elements of major fields of life. Document processing includes the conversion of manual and analog documental information into digital form to use it wherever required. Data extraction means the withdrawal of data from a source and inputting it somewhere else in order to use it for specific works.

Both of these procedures are useful and knowing how to perform them finely can increase the flow and efficiency of work. 

OCR technology can help streamline document processing and data extraction procedures. The usage of OCR technology can enhance the accuracy and validity of processing documents and extracting data, save you time and money, and help you organize your workflow. 

In this article, we will explain how OCR technology can streamline document processing and data extraction. In order to do that, we first have to understand what OCR technology is.

What is OCR Technology?

OCR (Optical Character Recognition) is a type of technology that detects and scans printed or handwritten words and converts them into digital texts to use for different purposes.

Since its first usage in the 1970s, OCR has now become more advanced and its features are being harnessed in almost every field of life to improve work productivity.

If we talk about the operating mechanism of OCR software, it simply stores multiple fonts and characters in its database. It, then, scans the document character-wise. It converts these characters into digital texts if they match the characters present in its database.

The functionality of the OCR can vary according to the type of software, but the main mechanism stays the same.

After understanding the mechanism of OCR, now, let’s talk about…


OCR technology helps smoothen document processing and data extraction in the following ways.

Automating Data Entry:

OCR can help the data entry process become faster, more reliable, and less expensive. When the provided data is scanned by the OCR tool, it is transformed into digital texts accurately allowing very less possibility of error in it.

Automating Data Entry

If the same work is done manually, there will always be a chance of error in the work. Moreover, the data entry process becomes fast when you do it automatically with the help of OCR technology.

This can also help you save a lot of money as you will not have to hire a data entry specialist to do the job for you.

In places like supermarkets, hotels, resorts, etc., using OCR can help enter the details of products and customers pretty quickly, saving both time and money for them.

Wherever there’s a need for data entering, OCR technology will be more useful than manual procedures.

Faster Document Processing:

OCR can help process documents faster by scanning and digitizing them rapidly and conveniently. Processing documents manually or doing it with the help of simple scanners can be a time-consuming and tedious task. 

There is the possibility that the results provided by these methods might not be authentic. Using OCR technology for document processing can perform the job faster, smoother, and with very less error possibility.

Improved Searchability and Accessibility:

OCR makes processed documents and data easily searchable and accessible. The digitalized data is stored in computers or servers and can easily be searched by inputting a key text. This can help streamline document processing and data extraction procedures. 

Improved Searchability and Accessibility

Extracting data from images by using an OCR image to text makes the data easily accessible because whatever information you require is available on your computer. Moreover, it allows easy access to data from anywhere and through any device.

The stored data in your computer devices enables you to access it quickly, saving you the trouble you would have to go through while searching the information manually.

Enhanced Data Organization:

How you organize your data determines the productivity and quality of your work. It is a very difficult and complicated task to organize files and documents in their physical form. It not only occupies a lot of space but also can compromise the safety of the stored data.

Enhanced Data Organization

This hard and overwhelming work can be done in a much more organized and convenient way by using OCR technology. Data, in its digital form, is stored in computers where you can organize it in any sequence. Computer programs provide a lot of options you can use to organize your data.

Storing files digitally can make it easy to spot the required documents which, otherwise, can be difficult.

Physically managed documents occupy more space and are difficult to move and transferred. OCR can help you digitalize your documents to save you space and the frustration of moving files.

Integration with Other Software:

While working, sometimes we have to use different software and programs to keep our workflow fluent and efficient. This software and programs can only use the information in digital form. 

Integration with Other Software

Using OCR to process documents can enable you to use this data with various integrated software related to work in order to increase the productivity of your workflow.

Let’s take the example of a supermarket. The invoices and bill receipts are scanned with OCR and the data, then, is stored and operated with software i.e., Vyaper.

Reduced Storage Costs:

Using OCR technology can save storage costs for you. Storing documents physically can occupy a lot of space.

Reduced Storage Costs:

It’s also an expensive way of dealing with information as the documents have to be printed, mailed, and shared physically which costs more.

Using data in digital form can get you rid of these expenses by storing data on computers. Computers can store loads of data in them saving you the space and money you would have to spend in storing files physically.

Improved Compliance and Security:

Dealing with documents physically can bring lots of errors and can compromise the regulations of the work. Using Online OCR technology to streamline the document processing and data extraction processes, you can reduce the risk of this happening.

Improved Compliance and Security:

OCR technology is based on software that only detects the data in terms and conditions that you have provided it. For example, using OCR in supermarkets or shops to scan bill receipts can help calculate the data accurately according to the descriptions provided about the product.

OCR is useful in places where things have to be managed according to policies and regulations, in law firms, for example.

OCR helps increase the security factor of the documents also. When documents are stored in physical form, there is a huge risk of them being misplaced or damaged. Storing them in digital form will allow you to apply any security protocol you want to ensure their safety.

It helps secure the data in the following ways:

  • It only allows access to authorized people.
  • It can be stored on multiple servers to avoid getting hacked.
  • You can store data on cloud storage to use later if it is damaged or destroyed on your device.


Using OCR technology to deal with the information can smoothly streamline document processing and data extraction procedures. By using its features, you can:

  • Process data smoothly and fast
  • Increase the accessibility of the data
  • Organize the data in an efficient way
  • Use this data in different integrated software
  • Save time and money
  • Improve the compliance and security of your data.

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