Is your business still using OCR data extraction vs manual data entry? Companies can save up to 90% time by switching to automated data entry with OCR data extraction. This switch also reduces mistakes. Being quick and accurate is very important. Choosing between OCR data extraction and manual data entry is a key decision.
Automated data entry solutions offer a more efficient way to handle information. This blog will explain the differences between the two. It will examine how each method affects your business’s work, costs, and efficiency. Therefore, you’ll be able to make better choices for your business. This blog will also guide you through how both optical character recognition and manual data entry work.
It will compare how well they do their job. Finally, it will help you pick the best option for your needs. Let’s start our journey now!
What is OCR data extraction vs Manual data entry?
OCR data extraction technology changes scanned documents, PDFs, or images into editable and searchable structured data.
The process is automated data extraction. OCR software scans the document, recognizes characters and numbers, and extracts the needed information. For example, a bank might use OCR to get details from scanned checks quickly. This reduces the need for manual data entry processes and lowers the chance of human error.
Manual data entry is different. It involves a person typing information from a document into a computer system. This method is slower and can lead to human error. However, it is helpful for tasks where human judgment is needed. For instance, in a medical office, staff might manually enter patient details into a database to ensure all specific information is correctly recorded.
Let’s discuss some real-life examples:
A logistics company using manual data entry processes might spend hours inputting shipment details. This can lead to delays and errors. However, with OCR software for automated data extraction, the same company could process thousands of scanned documents in minutes. This ensures all details are correct and up-to-date.
While manual data entry is useful in some cases, optical character recognition technology is usually better for businesses. It is faster, more accurate, and more efficient. It also reduces the time and effort needed to handle large amounts of data. As a result, employees can focus on more complex tasks.
What is the process of manual data entry?
Manual data entry refers to typing information into a computer system by hand. It involves a few simple steps.
- First, we gather the data from sources like paper documents or forms.
- Next, we check the information to ensure it’s correct.
- Finally, we type the data into the right fields in a computer program. For example, a spreadsheet or database.
We must be careful to avoid mistakes. Once we enter the data, we should check it again to ensure everything matches the original. This method can take a lot of time and is more likely to have errors than automated methods. However, manual data entry is still used when automation isn’t impossible or data isn’t in a structured format.
How do OCR data extraction vs Manual data entry compare?
We will compare these based on different aspects to clarify everything for you. Let’s begin.
First of all, it is important to realize that both of these are completely different techniques. Each method has its pros, cons, and features. Let’s explain how these techniques vary:
Accuracy
Accuracy is one of the most critical aspects to consider. As we know, manual data entry relies on humans, which can lead to a lower accuracy rate. Distractions, fatigue, or any other system mistakes may impact accuracy.
On the other hand, OCR systems are known to be more accurate and fast. However, their accuracy may vary depending on the input images or documents. They can struggle with poor-quality images or files.
Speed
Next, we have the speed of these techniques. As mentioned earlier, manual entry is a humanized process. Therefore, it can be a slow technique to convert documents to text. On the other hand, OCR uses different tools for this conversion. Therefore, it can be fast. For example, OCR depends on APIs, NLP, and machine learning.
Cost
Cost is an essential factor when choosing or comparing the two. Manually entering data can be low-cost due to human processing time. On the other hand, OCR can be costly because APIs and other advanced algorithms are used. OCR is less time-consuming for extracting data through natural language processing. However, it can be the fastest and most effective method.
Consistency
You must know that manual data entry can have low consistency in document
processing. This is due to the distractions, fatigue, and other such factors of the data entry personnel for document management. On the other hand, OCR maintains a high consistency due to intelligent document processing in different data formats.
Scalability
It can be hard to scale through manual data entry since processing receipt data in large volumes can be time-consuming. There is a higher chance of human errors in the extracted data management. On the other hand, OCR systems can handle it all for you without any problems. For example, Filestack API is a highly scalable OCR engine API. You can handle as much workload as possible.
APIs like Filestack are highly suitable for large-scale business financial data or sensitive data with unstructured documents.
How can you make the right choice for your business?
Making the right choice for your business process involves several steps. Let’s show you all the steps one by one.
Data Volume
Data volume plays an important role in choosing the right data extraction technique. If your business deals with a very small amount of data, you can go for a manual process. It can also save costs. On the other hand, if your business is growing at a fast pace with higher data entry volumes, you should opt for optical character recognition technology.
Accuracy Requirements
Having accurate data records is businesses defines the success of your business. Therefore, choosing technology that can maintain accuracy becomes an essential part. Manual effort can reduce the accuracy and consistency due to higher human error rates. On the other hand, OCR systems use APIs like Filestack to extract data from an image file. Therefore, it can give you a higher accuracy rate.
Cost Consideration
If you have recently started your business, you might have a low budget. Therefore, you should look for low cost options. At this point, choosing manual labor for processing physical documents can be the right choice for you. It can save costs. However, if you have a good budget, you should always look for OCR over human resources. It can be fast, accurate, and consistent.
Scalability Needs
OCR helps us scale easier for businesses. Consider your business’s growth potential. If you anticipate needing to scale your operations, OCR data extraction is more adaptable to increasing data volumes without requiring a proportional increase in resources. Manual data entry, while scalable, involves more complex scaling processes, such as hiring and training additional staff.
OCR data extraction vs manual data entry: Conclusion
Data has always played an essential role in your business’s success. Better data management means a higher success rate. To gain a better data management system, choosing accurate and high-quality data management tools is important. OCR is one such example. However, manual data entry can also be a better option if you want low cost and a small data volume.
You can choose APIs like Filestack to integrate OCR within your applications. It can give you amazing results for scanned images through its automated solution. Although, it can have a higher initial costs, but the results are worth investing.
OCR data extraction vs manual data entry: FAQs
What are the key differences in accuracy between OCR data extraction vs manual data entry?
OCR offers faster processing but can struggle with poor-quality text. Manual data entry is slower but often more accurate, especially with complex or unclear documents.
How does the cost of OCR data extraction vs manual data entry compare in the long term?
OCR data extraction reduces long-term costs by minimizing labor needs, while manual data entry incurs ongoing expenses due to continuous reliance on human operators.
What are the benefits of using OCR data extraction vs manual data entry for large-scale projects?
OCR data extraction processes large volumes quickly, reduces costs, and offers consistent results. It outperforms manual entry in speed, scalability, and efficiency for large-scale projects.
What is the best OCR engine API?
Filestack gives you the best OCR technology results for your business.
Sign Up for free at Filestack to get your business’s most accurate OCR services.
Ayesha Zahra is a Geo Informatics Engineer with hands-on experience in web development (both frontend & backend). Also, she is a technical writer, a passionate programmer, and a video editor. She is always looking for opportunities to excel in her skills & build a strong career.