The Difference Between OCR & IDP
Optical Character Recognition (OCR) is a technology designed to identify and extract text from digital images. By converting image elements into usable data, OCR facilitates the integration of paper-based text into various software applications and electronic tools.
It is commonly used to recognize text in scanned documents and images. OCR software can be used to capture text on a physical paper document or image and turning it into an accessible electronic version.
This technology forms the foundation for Intelligent Document Processing (IDP).
The difference between OCR and data extraction solutions like IDP is the amount of additional programming that goes beyond the basic OCR. OCR software typically performs a full-page conversion of a document image and can deliver data such as characters located and their X/Y coordinates.
Additionally, table data can be identified by locating the presence of rows and columns. The output is still a literal transcription, minus any character recognition errors. If a project simply requires a transformation of document images into machine-readable text, then OCR technologies can be an adequate solution.
Intelligent document processing extends beyond basic text capture to contextual interpretation. If the project scope requires the identification of particular information within a document, additional development becomes essential. This involves transforming the literal content of the document into actionable and usable data.
For example, when an invoice is captured by a basic OCR solution, it can generate machine-readable text, but it doesn't distinguish between invoice number, date, or total amount without further processing. It is the same for document classification, routing, or validation of information.
Programming Requirements
OCR requires additional programming or manual handling to achieve the level of same data results as IDP. For example, after using OCR, programming or manual tasks can be employed to extract the invoice number or total amount from the invoice data and integrate it into the business system. This functionality is available standard in IDP solutions.
IDP
IDP solutions take the OCR output and convert it into meaningful information. This can be categorizing, pinpointing, or extracting precise data from a page.
Some solutions provide the necessary technology and algorithms to process OCR output without the need for additional development, but accuracy can be a concern.
Other solutions provide user interfaces that allow the creation of rules without requiring staff with programming skills.
Field-Based Processing
While OCR solutions can provide image clean-up, the result is still text output. For documents using pre-printed data or document structure like tables, any data overlap might compromise the capture. This leads to data loss.
Some IDP solutions offer field-based processing that can clean up and even remove document structures. This leaves only relevant information for extraction and improves preservation of data.
Workflows
Most OCR solutions stop at output data and have no built-in ways to review and correct errors.
IDP solutions are equipped with the necessary workflows and software to shepherd an entire IDP process from input to final output. Additionally, there are solutions that integrate seamlessly into broader business processes or systems.
