Why Is Intelligent Data Capture Much Bigger Than OCR?

Why Is Intelligent Data Capture Much Bigger Than OCR?

by Amit Jnagal, on October 18, 2018 11:30:00 AM PDT

Optical Character Recognition (OCR) tools have come a long way since their introduction in the early 1990s. The ability of OCR software to convert different types of documents such as PDFs, files or images into editable and easy-to-store format has made corporate tasks effortless. Not only this, it’s ability to decipher a variety of languages and symbols gives Infrrd OCR Scanner an edge over ordinary scanners.

However, building a technology like this isn’t a cakewalk. It requires an understanding of machine learning and computer vision algorithms. The main challenge one can face is identifying each character and word. So in order to tackle this problem we’re listing some of the steps through which building an OCR scanner will become much more clearer. Here we go:


Let’s get simple things out of the way first.

IDC stands for Intelligent Data Capture, while OCR stands for well… Optical Character Recognition.

As the name suggests, OCR mostly deals with image pre-processing, identifying characters and putting together words, blocks, and sentences. The field of OCR revolves around digitizing what’s on paper or a scan or a photograph from a physical document. Online OCR plays a critical role in scenarios with a large number of scanned documents and images which need to be converted to text.

Intelligent Data Capture technology, on the other hand, is broader and more general field of information collection and analytics. It provides meaning to text extracted from many forms of digital assets such as documents, emails, text files and scanned images.

It’s a method above and beyond OCR software. In IDC, words and sentences get business meaning and become much more relevant. Let’s walk through an example;

An OCR system scanning dates may output ’12-May-2018’. A 100% accurate result but eventually it is just a sequence of characters and pixels appearing together on a picture. On the other hand, with the help of Intelligent Data Capture solutions, this sequence of characters will take one of the following meaning:

‘PAYMENT DUE DATE’ for credit card statements,
‘CHECK-IN DATE’ or a ‘CHECK-OUT date’ for hotel invoices
‘RENEWAL DATE’ on a contract
Or some other such business interpretation is driven from the context of the document.


Any place where meaningful snippets of information are hidden deep inside digital documents and images. This can be most common in industries such as Finance, Legal, Insurance, Auditing etc.

These industries generate millions of documents every month as a byproduct of their business processes. The challenge originates when these documents flow through the business workflow and reach the consumers of the document. In most cases, they are far removed from the document producers. They will have no access to digital data embedded in these documents.

Why Is Intelligent Data Capture Much Bigger Than OCR

In short, the far removed downstream stakeholders and consumers of these documents will have to force themselves to rely on manual labor for information extraction. Examples of such information are dates from contracts, ticker symbols from stock market reports or name and address of the fund manager from a fund prospectus.


Technology has reached the state where it is possible today for computer programs to read and understand digital documents as humans do. We can train Intelligent algorithms to look for specific entities such as dates, contract numbers, purchase order numbers in different documents. These trained systems regularly produce accuracy levels of more than 90%. Hence, one can efficiently analyze 100s and 1000s of documents per minute.

Although one of the most obvious advantages of these systems is the reduction of humans in the loop. But, the REAL WIN is the capability of automation and efficient integration of otherwise manual workflow with other business workflows. This characteristic of the IDC system makes it one of the most essential building blocks for your robotic process automation (RPA) program and architecture. More on this later.


We are investing heavily in building a scalable universal trained model capable of extracting common entities from common business documents such as trade notes, shipping labels, contracts, invoices, receipts etc.

Want to understand how we can customize for your needs? Chat with us at www.infrrd.ai to schedule a meeting to discuss further.


What is Intelligent data capture?

What is OCR data capture?

What is OCR and how does it work?





Topics:Intelligent AutomationAI ReadinessBusiness Insights

About this blog

AI can be a game-changer, but only if you know how to play the game. This blog is a practical guide to turning AI into real business value. Learn how to:

  • Make sense of complex documents and images.
  • Extract the data you need to drive intelligent process automation.
  • Apply AI to gain insights and knowledge from your business documents.

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