Invoice Data Capture: It’s Not Magic!

Despite the fantastic claims of optical character recognition (OCR) vendors, the technology for handling multiple invoice formats has not changed a whole lot in the past several years. While the technology continues to improve, it’s not all magic.

After attending an IOFM conference, while at a Penn & Teller magic show, a connection became apparent. What I saw at the magic show was not very different from what the OCR vendors were advertising. All of these vendors are trying to make you believe in a magic solution. What they don’t tell you about is the hard work required to create the magic. Throughout the Penn & Teller show, we are constantly reminded of how much work and experience they have put into their show.

 

What Is OCR?

OCR refers to the process of converting an image to text using image recognition software. The resulting text can be machine processed, searched, or edited. The output of OCR is unstructured data.

Marketers for document scanners have jumped on this terminology. Supposedly, OCR technology will allow you to manage all your files and the data contained in them. It sounds like a great promise, but it’s misleading. There’s nothing new about this technology that will make the process any easier than before.

Unless you have sophisticated and very expensive algorithms to create structured data, you’re getting the same system packaged with new marketing. The reality is that while there are some places OCR might be useful – scanning the check you deposit at your ATM – OCR technology still has limitations. That’s especially true for where most companies want to use it, which is for high volume, detail level document processing.

 

What are the problems with OCR?

At best, OCR is only a small piece of the puzzle, not an end-to-end solution. Managing paper files in-house with nothing more than OCR technology is simply not effective. And most offices are not prepared to take on the challenge.  In order to handle multiple document formats, you need to apply additional layers of technology and subject matter experts.

 

What is the difference between intelligent capture and OCR?

As subject matter experts on document management, Edenred Pay stays ahead of the curve. We develop solutions that will truly make it easy for businesses to deal with their documents.

Edenred Pay’s Intelligent Capture encapsulates the entire document management process, utilizing an array of technology, people, and processes. It ensures that your data is not only captured but done so in the smartest and most useful way. It’s able to handle the subtlety and nuance that exists from document to document and form type to form type. While the promise of OCR technology may seem like a magic trick, it’s not. Edenred Pay has put in the work and has the experience to create an Intelligent Capture solution that will take care of everything for you.

If you believe in magic, then buy an OCR solution.

If you truly want to make the work disappear, chat with one of our AP automation solution experts. 

 

 

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Edenred Pay, an Edenred Company, is the global leader in invoice-to-pay automation. Our integrated platform connects businesses with suppliers, ERPs, banks, FinTechs, and payment rails to automate, optimize, and monetize the entire B2B payments lifecycle – from invoice receipt through payment reconciliation. Edenred Pay’s efficient, integrated solutions create a frictionless process and help deliver value to the enterprise by enhancing visibility and monetizing AP.

Visit www.edenredpay.com or contact us to learn more.