What is OCR?

Optical Character Recognition, or OCR, is a technology that converts printed or handwritten text into digital, machine-readable data. It allows computers to read text from scanned files, images, and documents—turning static information into searchable, editable, and shareable content.

How OCR Works

OCR uses pattern recognition, machine learning, and text analysis to identify characters from an image or scanned page. The process usually involves:

•  Image Capture – A document is scanned or photographed.
•  Preprocessing – The image is adjusted to improve clarity (removing noise, correcting tilt, adjusting contrast).
•  Text Recognition – OCR software identifies letters, numbers, and symbols.
• Output Conversion – Recognized text is exported into an editable format such as Word, Excel, or searchable PDF.

This process makes it possible to move information off the page and into digital systems.

OCR vs. Intelligent Document Processing (IDP)

OCR is effective for capturing text, but it often stops at recognition. Intelligent Document Processing (IDP) goes further by interpreting, categorizing, and routing that information.
IDP combines OCR with machine learning and natural language processing to deliver context and automation. For example:

• Classification – Determines if a file is an invoice, contract, or application.
• Data Extraction – Pulls details such as names, totals, or dates from documents.
• Validation – Checks data against rules or databases for accuracy.
• Workflow Integration – Sends structured data directly into systems like ERP, CRM, or case management tools.

OCR converts text into digital characters, while IDP turns those characters into usable business data—for example, capturing totals from an invoice and sending them into accounting software, or extracting patient details from a medical form and routing them into an electronic health record.

Benefits of OCR and IDP

Organizations in every industry use OCR and IDP to reduce manual work and improve access to information. Benefits include:

• Searchable Documents – Convert static files into keyword-friendly formats.
• Reduced Manual Data Entry – Automatically transfer information into databases.
• Accessibility – Support screen readers and other tools for the visually impaired.
• Compliance and Records Management – Store documents digitally for easier audits and retrieval.
• Smarter Workflows – IDP enables data to move seamlessly into existing processes, fueling automation and faster decision-making.

Common Applications

OCR and IDP are not limited to one industry—they have become standard tools across sectors where documents, forms, and records need to be processed quickly and accurately. Some practical examples include:

• Banking – Reading checks and digitizing loan paperwork.
• Healthcare – Managing patient records, prescriptions, and insurance forms.
• Legal – Scanning case files and auto-tagging contracts.
• Government – Processing tax returns, IDs, and permit applications.
• Business Operations – Managing receipts, invoices, and HR forms.

The Importance of OCR

Paper documents and static PDFs slow down document workflows and create inefficiencies. OCR eliminates these barriers by converting physical text into digital formats that can be searched, edited, and shared instantly. While IDP can add layers of automation, OCR alone improves compliance, boosts productivity, and reduces the burden of manual data entry.

The Value of Using OCR 

OCR is the foundation for digitizing paper documents, making information easier to store, retrieve, and manage across systems. When paired with IDP, it can go further—validating, organizing, and routing data into business applications. For most organizations, OCR provides immediate value by creating faster workflows, reducing errors, and enabling better use of existing resources.