Optical character recognition (OCR) software, also called document capture, is the technology that is used to convert most kinds of images containing written text into machine-readable text data. Once scanned documents undergo OCR processing, the text can be edited using word processors. OCR software casts a wide net of use cases because of its basic functionality. These tools can be used by virtually any team within an organization, especially accounting, human resources, and data entry teams to glean important information from mass quantities of both paper and digital files. OCR software can greatly reduce time spent on manual entry, minimize critical errors, and improve fraud detection efforts. Certain tools in this category can also make documents searchable and neatly organized for later access by the necessary individuals within the organization.
Traditional OCR software has limited but foundationally powerful functionality. Recently, an enhanced version of OCR technology, called intelligent document processing (IDP) software, has evolved out of OCR’s limitations. G2’s OCR category contains both types of products—pure OCR software and IDP software. Pure OCR software has all the functionality and use cases listed above. IDP software also has all the functionality of OCR software, however, it also utilizes advanced technology such as machine learning software, natural language processing (NLP) software, and image recognition software to intelligently scan documents and continuously improve based on patterns and user behavior. These products also differ from pure OCR software since they are only concerned with the simple scanning of a document, not the parsing of information from it. Because the text extracted using this technology has meaning, this data can be used for downstream processes. Thus, IDP software can be integrated with various applications, systems, and other automation platforms.
OCR software is often considered a hidden technology because it is utilized in so many other software products whose primary purpose is something other than document processing. Many software options, like CRM software, ERP systems, accounting software, and enterprise content management (ECM) software all utilize OCR technology to increase efficiency.
To qualify for inclusion in the Optimal Character Recognition (OCR) category, a product must:
Process digital images and/or scans of various document types
Identify and extract relevant data within scanned documents and convert it into machine-readable text that can be searched and edited
Assist with classification and sorting of captured document files
