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What is OCR in Computer?–Uses of OCR

August 27, 2022

OCR in computer stands for Optical Character Recognition. Optical character recognition (OCR) is a method of converting images of printed text into machine-readable text. This is a software application that allows computers to read text from images or scans. The idea behind OCR is to convert scanned documents into editable formats such as Microsoft Word.

OCR is a useful tool for anyone who has to deal with large amounts of data. If you want to get started with OCR, check out our guide on how to start using OCR today.

OCR software can recognize characters in black and white photographs, scanned documents, and faxes. OCR technology is often used in conjunction with optical character recognition (OCR), where the output of OCR is then processed using additional software.

image showing the Optical Character Recognition

OCR is often used in document scanning and processing. For example, a company might scan documents and store them digitally. Then, they can use OCR to extract data from these files.

Working of OCR

A camera takes a picture of a page of printed text. The resulting image is then fed into a computer program that converts the pixels of the image into numbers. These numbers represent the letters of the alphabet, punctuation marks, and spaces between words. The computer then uses these numbers to create a list of words and sentences.

Uses of OCR

OCR is used in different industries.

Bank Industry

The Bank industry uses OCR technology to scan checks, deposit slips, and other financial documents to create electronic records. These records help banks keep track of their customers’ transactions and prevent fraud.

 Medical Industry

Medical professionals use OCR technology in hospitals and clinics to scan patient files and store them electronically. The information collected helps doctors diagnose patients and plan treatment options.

Legal Industry

Legal professionals use OCR technology to scan court documents and other legal papers. The scanned documents are then stored digitally and can be accessed at any time.

Insurance Industry

Insurance companies use OCR technology to digitize claims forms, policy statements, and other types of paperwork. The information collected helps insurers identify potential risks and make decisions about coverage.


Logistics companies use OCR to track a variety of business documents more efficiently. For example, the Foresight Group uses Amazon Textract to automate invoice processing in SAP. With Amazon Textract, Foresight software can read characters more accurately across many different layouts, which increases business efficiency. This eliminates the need for manual data entry, which was time-consuming and often led to errors.

Related FAQs

What is meant by OCR?

OCR (optical character recognition) is the use of technology to distinguish printed or handwritten text characters inside digital images of physical documents, such as scanned paper documents. OCR can be used to convert scanned paper documents, such as PDFs and images, into editable and searchable electronic versions that can be easily stored, searched, and shared.

Is OCR an input device?

OCR is an input device that converts printed text into machine-readable form.

What are the features of OCR?

Usually, OCR uses a modular architecture that is open, scalable, and workflow controlled. This includes forms definition, scanning, image pre-processing, and recognition capabilities. Using this type of architecture allows for a more efficient process overall and gives the OCR the ability to be used in a variety of different settings.