Character recognition software turns paper files into digital data.
Character recognition uses computer software to translate paper documents into electronic word documents. Businesses utilize character recognition software to keep track of paper invoices and other financial documents. Many different types of character recognition exist, with some having the ability to scan handwritten documents.
History
In 1950, character recognition was invented by David Shepard, who worked for the U.S. Armed Forces Security Agency. He built a computer that could turn printed documents into machine coding.
"Readers Digest" adopted the first commercial character recognition system in 1955. Many other telephone and energy companies followed suit to process payment stubs more effectively.
In 1965, the United States Postal Service switched over to optical character recognition, which was used to read the handwriting on letters, allowing mail to be sorted with less human work.
In 1978 Ray Kurzweil developed the first cheap optical character recognition system, which translated documents with a flatbed scanner.
Benefits
Many companies see the benefit in optical character recognition. When electronic invoices are not available, accounting becomes easier when documents can be scanned by a computer for future access.
Many routine tasks, such as sorting mail or reading bills, require additional employees. By eliminating these tasks, businesses can save money on overhead.
Writers may also use to turn handwriting into computer language, which is a simpler process, than having their work typed out by a professional.
Types
Three major types of character recognition software currently exist.
OCR, known as optical character recognition, uses a computer scanner. The scanner creates a high detail image of the document. The software then matches the scanned characters with a template, allowing the data to be transcribed.
ICR, known as intelligent character recognition, is used by businesses and government agencies to read standard forms. The application of this software is limited to specific fields.
Natural Handwriting Recognition reads handwriting, usually by comparing whole words, based upon a software database.
Cost
As of March 2010, optical character recognition provides an affordable alternative to manual data entry. The most popular brand of OCR software, known as ABBYY FineReader, is available for $399.99, with a corporate edition for sale at $599.99.
Another popular brand, known as OmniPage 17, sells for $499.99.
Warning
Accuracy rates for optical character recognition hover around 98 percent to 99 percent. This means that some characters will be incorrectly translated, requiring a review of a document. Usually a few manual corrections are needed to ensure that the document remains true to the original.
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