29 Oct 2020
Enterprise Resource Planning, also known as ERP software, has gotten a lot of attention as it brings great convenience to companies. However, to meet the ever-changing demands of businesses, the ERP system still needs to evolve itself by integrating with IoT technology or gradually switching into AI-driven ERP software. Besides IoT and AI innovation, there is another technology called “OCR software” which is recognized as the next big thing emerging in the ERP software world. What is OCR software? How can it help boost the productivity of ERP solution to the maximum?
Let us figure this out in this week’s article.
WHAT IS OCR SOFTWARE?
OCR refers to Optical Character Recognition which is a technology that helps convert text from all types of documents, PDF files or images into digital data. Whether it is a photo of a paper document, a scene-photo or printed data records such as a customer’s order pdf, computerized receipts, bank statements, invoices, OCR is able to scan, read and automatically extract all relevant text data and transform it into the machine-encoded format. In other words, the OCR software makes it simple and easy for users to fill out their electronical forms just by simply scanning the documents.
The extracted data by the OCR engine will then be immediately fed into the ERP system, allowing companies to search and edit electronically within the software system.
HOW OCR SOFTWARE INCREASES THE EFFICIENCY OF YOUR ERP SYSTEM?
1. Manual Data Entry Elimination
It is obvious that the majority of companies manage their business documents inside the ERP system. The software digitizes all processes and stores paper documents in its giant data infrastructure. However, data entry is still manual. It requires human interaction in keying data one by one from these documents into the system.
It is for this reason, enterprises have started combining the OCR software into the ERP system. OCR system is able to detect and capture data automatically through scanning. Companies just simply introduce the documents to the system and all the relevant text will be automatically recognized in a matter of seconds with no need for employees’ intervention. As a result, manual data entry will be replaced with automatic data entry and companies can get rid of the concerns about time and efforts wasted in doing this tedious task.
2. Error Reduction
In a data-driven age like today, being able to update adequately with accurate data is important as never before. Data loss and inaccuracy caused by manual correction of information can lead to devastating consequences for any business.
This is where OCR software gains an extra point in enterprises’ eyes. As manual data entry is eliminated with all relevant data in business documents such as customer’s order, invoice no. and PO no. are digitally scanned and imported to the ERP system by the OCR engine, there is no chance human-prone error can be caused. Companies will not need to spend time correcting simple mistakes as OCR’s data validation has already eliminated all potential errors during the information processing runs.
3. Save Cost
Enterprises all have aims to go paperless in this digitalization era. With OCR software in place, they will find this goal totally within their reach.
As all relevant data will be extracted and instantly imported into the ERP software, companies will not need to have file cabinets for hard copies and paper documents store purposes anymore. Lesser documents, smaller storage, lower expenses. Besides the storage cost, enterprises can also reduce the expenses for printing and copying. The saved cost can then be diverted to investing in more vital areas and adding up more monetary value in the companies’ usage budget.
ERP system has played an important role in the company system for a while. To leverage the potential advantages, it is now recommended for enterprises to integrate the ERP system with OCR software. With these 2 technologies combined, enterprises can benefit a lot, both in terms of financial aspects and automatic process efficiency.
Take note that when your company adopts an ERP system and starts the digital transformation with the help of new technologies like OCR, there are several government grants to tap on. Not only the Productivity Solution Grant that allows enterprises to receive funding of up to 80% of the qualifying cost, but companies can also have a chance to grasp an additional SGD700 from the Skillsfuture Enterprise Credit. Should you wish to have more information, feel free to get in touch with us for a free consultation!
