Extracting data from your documents is one of the most critical steps in the document scanning process. It directly impacts how searchable and functional your digital files will be, shaping how you access and interact with them each day.
Despite its importance, data extraction often flies under the radar, overshadowed by other aspects of digitization. Yet, understanding the available data extraction methods and how they enhance your digital records is key to getting the most out of your scanning project.
Whether you’re preparing for a large-scale bulk scanning initiative or simply curious about the process, this article will provide a detailed look at why data extraction matters and the various methods at your disposal.
From Optical Character Recognition (OCR) to manual data entry and automated extraction, we’ll break down the benefits and drawbacks of each, helping you make informed decisions for your document scanning needs.
Why Extracting Data from Documents During Scanning is Important
Extracting data from your documents during scanning is essential to make your digital files truly useful. Without this step, you’d end up with a collection of image files that offer no easy way to find what you need without opening each one individually—an inefficient and frustrating process.
In the simplest setup, each scanned file is typically named using a key identifier, such as an invoice number, client name, or ID number. This allows you to locate individual documents quickly based on a single field. For smaller projects or when only basic search functionality is required, this approach may be enough to keep your records organized.
However, when you need to search using multiple fields like dates, names, or reference numbers, more advanced data extraction comes into play. In these cases, important information is extracted from the document and attached as searchable metadata. This metadata, linked to each file, allows you to look up documents using various criteria in your document management system, streamlining the search process even further.
Identifiers such as ID numbers, names, or invoice numbers can now be used as searchable fields, creating a well-organized digital library that saves you time and effort, especially when managing large volumes of records.
Accurate data extraction also ensures that critical information isn’t lost, providing a reliable digital backup of your physical records. This is especially important for industries like legal, medical, and financial sectors, where accurate and accessible records are a necessity.
How is Data Extracted During The Scanning Process?
There are several methods scanning companies use to extract data from documents, each offering unique advantages depending on the type of document and the complexity of the data. Below are the most common methods of data extraction and how each one is typically used.
Optical Character Recognition (OCR)
Optical Character Recognition (OCR) is software that analyzes written or printed text within a scanned document and converts it to digital text. OCR uses various methods to digitize text, examining the shape of individual characters, the words themselves, and even the context of the sentence to produce a fairly accurate transcription of the information inside the document. It handles the entire process of extracting and embedding the data into the digital file and requires no manual intervention.
The Pros of Using Optical Character Recognition:
- Highly efficient: OCR can process and extract text quickly, making it ideal for converting large volumes of printed documents into searchable digital files in a short period of time.
- Makes documents editable: OCR not only extracts text but also allows you to search for specific terms throughout the document. It also makes the entire document editable if changes are needed.
- Cost-effective: Since no manual labor is involved, OCR is often the most affordable option for large-scale data extraction.
The Cons of Using Optical Character Recognition:
- Accuracy can vary: OCR performs well on printed documents but may struggle with handwritten text, damaged documents, or low-quality scans, which can reduce the accuracy of the extracted text.
- Manual review may be required:: If you need very high accuracy, manual review and correction by a human operator might be necessary, which diminishes some of the time savings of using software in the first place.
When is OCR a Good Choice?
OCR is commonly used for large-scale digitization projects where the documents are in relatively good condition and have consistent formatting, such as books, reports, and printed records. Scanning technicians can train OCR to extract data from specific fields in a form, making it an invaluable tool when digitizing a large number of records all at once.
Manual Data Entry
Manual data entry involves human operators reading and inputting information from documents directly into digital systems. This method is often used when documents are too complex or inconsistent for automation.
The Pros of Using Manual Data Entry:
- High accuracy for complex documents: Human operators can accurately interpret and enter data, ensuring that important information is accurately captured.
- Handle unstructured data: Manual data entry is flexible and can accommodate documents with inconsistent formats or diverse data types, where automation may struggle.
The Cons of Using Manual Data Entry:
- Time-consuming and labor-intensive: This method requires more time and effort than automated processes. Each document must be reviewed and entered manually by a trained operator.
- Higher cost: Due to the labor involved, manual data entry tends to be more expensive than automated options.
When is Manual Data Entry a Good Choice?
Manual data entry is the preferred method for extracting data from unstructured or complex documents. It is most commonly used in historical records scanning, or when digitizing documents with varying layouts. It’s also ideal when high accuracy is critical, such as in legal or financial records. Double-blind data entry, where two operators independently input the same data, can significantly enhance accuracy and minimize errors.
Automated Extraction
Automated extraction uses software to detect and extract data from predefined fields in structured documents. It combines the speed of automation with the precision of human oversight when necessary.
The Pros of Using Automated Extraction:
- Fast and efficient for structured data: Automated extraction excels in processing large volumes of documents with consistent layouts, such as forms, invoices, or surveys.
- Reduces manual labor and errors: Automation reduces the need for manual input, minimizing human error and freeing up staff for other tasks.
The Cons of Using Automated Extraction:
- Less flexible with unstructured documents: Automated extraction struggles with unstructured documents that don’t follow a consistent format, limiting its applicability to specific types of documents.
- Initial setup can be complex: nitial configuration of automated systems can be time-consuming and may require specialized knowledge to fine-tune for specific projects.
When is Automated Extraction a Good Choice?
Automated extraction is ideal for large projects involving documents with uniform layouts, such as invoices, purchase orders, and forms. It often combines OCR with manual checks by operators to ensure accuracy. This hybrid approach leverages the strengths of both automation and human review to process large volumes efficiently while maintaining precision.
How Do You Know Which Method is Best?
Choosing the right data extraction method for your project depends on several key factors. Each method has its strengths, and understanding how they align with your specific needs will help you make the best choice.
Consider the following when deciding which approach to use:
- Document Type and Condition: Are your documents printed, handwritten, or a mix of both? What is their physical condition? OCR works well for clean, printed documents, while manual entry may be needed for handwritten or more complex forms.
- Volume of Documents: The scale of your project is a crucial factor. If you have a large volume of records, automated extraction or OCR can save time and resources. For smaller, more complex document sets, manual data entry might provide the level of accuracy required.
- Required Accuracy: If precision is critical—especially for legal, financial, or medical records—manual data entry or a hybrid approach combining OCR with human review may be necessary to ensure everything is captured accurately.
- Budget and Time Constraints: Your available budget and project deadlines will likely influence your decision. While manual data entry offers the highest level of accuracy, it tends to be more expensive and time-consuming. Automated methods are faster and more affordable, but they may require some manual oversight for quality assurance.
Often, scanning projects use a combination of methods to achieve the best results. For instance, structured forms might benefit from automated extraction, while more complex documents with handwritten notes may require manual entry. This blended approach ensures both efficiency and accuracy across different types of documents.
Wrapping Up
Choosing the right data extraction methods will help you build a digital archive that is easy to use, efficient to search, and tailored to your specific needs. Each method—OCR, manual data entry, or automated extraction—has its own set of benefits, and the most effective approach often involves a combination of these methods.
By leveraging the right tools for the right types of documents, you can achieve a balance between efficiency and accuracy, ensuring that the most critical information is captured and organized correctly.
At SecureScan, we customize each scanning project by taking a detailed inventory of all materials and identifying the best extraction methods for your documents. Whether we’re using the latest OCR technology or employing our experienced data entry specialists, we deliver reliable, accurate results that exceed expectations.
If you’re ready to take the next step in your digitization project, contact us today to get more information or request a free quote from one of our scanning technicians.
