This is how a data capture solution typically works in both the manual system and automatic input systems:

• A number of forms are scanned
• All the data is processed (manually or through electronic data recognition solutions)
• Electronically processed data is passed on for a further human inspection.
• Verified data is stored in a database

Electronic data capture solutions require quality images to be created. Identifying the fields means that the system must understand the type of form that is being processed. And automated recognition requires both an understanding of the kind of element it is recognizing and neat straight characters or fields.

Forms processing using data capture solutions automate the data capture process from paper-based forms using recognition technologies. Most processes use high-end Optical Character Recognition (OCR) engines and elaborate data validation routines that extract hand-written or printed forms that go into a database.

Some common acronyms used in recognition technology:

• OCR: Optical Character Recognition involves reading text from paper and translating the images into a form that a computer can read. This system converts paper-based forms into electronic files that can then be edited. OCR takes a bit-mapped image and matches it to a pre-determined matrix or pre-defined geometric shapes.
• ICR: Intelligent Character Recognition is the translation of manually entered text characters into machine-readable characters. This is sometimes used along with OCR.
• OMR: Optical Mark Recognition is the technology that is used to electronically extract data from marked fields like check boxes on printed forms; the error rate for this technology is less than one per cent.

However, for many companies, especially in the financial services and healthcare spaces, forms processing using data recognition software doesn’t make much sense as these software packages are still not sophisticated enough to read all styles of human handwriting.

Before opting for a forms processing solution, one needs to evaluate business requirements, arrive at an optimal forms automation strategy and its potential benefits. It is important to understand:

• How forms processing solutions work
• How this solution aligns with your key line of business (LoB) and priorities
• How this solution will work for your key business partners
• A cost benefit analysis that outlines the financial value

The solution should have:

• Flexibility: The processing efficiency should be across a number of form types, including structured as well as unstructured documents
• Ease of Use: The solution should require minimal training and translate into actual time saving so that employees are able to spend time on other critical areas
• Accuracy: The solution should provide maximum accuracy
• Speed: The processing cycle should streamline and accelerate document routing and approvals
• Profitability: The solution should provide vast savings in time and translate into a measurable improvement in productivity levels and return on investment

Transitioning to a Paperless Scenario

While evaluating the benefits of a transition to a paperless scenario, it has been noticed that organizations often use the solutions for paperless files and fail to develop controls to reduce the flow of paper. To avoid this, one has to develop the capability to capture and categorize information as it enters the system. This categorizing provides an organization privacy and security and consigns sensitive customer information to an electronic storage reservoir where it can be accessed only by the authorized people.

To make an effective transition, one has to examine the organization’s architecture and determine how to index all the information. It is important to develop a logical consensus as indexing can be the most challenging part of the transition process.

The factors that need to be considered when selecting an indexing system:

• Document type
• Lifespan of various documents
• Source of the documents
• Retention and destruction needs of each document
• Security parameters
• An analysis of the interrelationship between the organization infrastructure and processing abilities
• An exhaustive examination of business processes

Documents are scanned and classified; and indexed to make them searchable. The data files cross-reference other documents in the database and records all actions which enables proper tracking and auditing. How and in what order these procedures are carried out depends on the specially designed workflow processes. The implementation of the workflow processes requires proper understanding of the business to successfully fulfill the business processes.

A complete understanding of underlying business processes is important in designing and constructing the right workflow. The right workflow integrates entire electronic document management systems by allowing disparate silos of information to communicate.

Without proper document verification, electronic storage just manages to duplicate paper processes electronically. Applying a properly designed workflow process to the document verification process provides the consistency and efficiency required to improve competitive standing, decrease turnaround time and improve customer service.

Properly designed workflow processes will enable companies to access information quickly and more efficiently. In order to design the right workflow process, one has to work out a work process analysis depending on the complexity of the database. Based on the complexity, the workflow process can be designed in such a way that various sets of data can communicate with each other with ease. This will help streamline business processes significantly.