AUTOMATION OF DATA ENTRY
The era of "Ctrl+C, Ctrl+V" is over
Why does traditional OCR lose out to intelligent document parsing?
TL;DR
- Despite modern CRM and ERP systems, many companies still rely on manual transcription of data, which is a process bottleneck.
- Traditional OCR based on templates (Zonal OCR) fails at the slightest change in invoice layout, requiring constant repair.
- Intelligent parsing (IDP) based AI understands the semantic context of a document, eliminating the need for templates and manual data correction.
Imagine a typical Monday at your company. Your team is using a modern CRM, communicating on Slack, and managing projects in Asana. Everything works like a digital clock.... until it comesinvoice from new supplier or order in PDF.
At this point, modern technology is giving way to the method we have known since the 1990s - manual transcription of data. The famous "Copy-Paste."
If you've ever wondered why, despite investing in digitization, your employees are still wasting hours manually entering data into Excel or an ERP system, this article is for you. It's likely that your company is stuck in the trap of outdated OCR thinking, while the world has long since moved on toautomatic document parsing supported by AI.
Today we'll explain why a simple document reading program isn't enough, and how moving to intelligent data extraction can unlock the potential of your business.
OCR vs. AI: Why does your computer "see" but not "understand"?
To understand the problem, we need to take a step back. For years, the standard in digitization wasOCR (Optical Character Recognition). It's a technology that converts an image (scan) into text.
Sounds great, right? In theory, yes. In practice, OCR has one major drawback: it is blind to context. To a traditional OCR engine, an invoice is just a collection of characters. It does not distinguish between the word "Total" and the amount "PLN 1,200". It doesn't know that the date in the upper right corner is the "Issue Date" and the one in the lower corner is the "Due Date."
The Problem of "Stiff Template" (Zonal OCR)
Traditional systems have tried to get around this by using so-called templates (Zonal OCR). This involves developers drawing virtual frames on a document and telling the system:"Always look for the TIN in that square, 5 cm from the top.".
This solution works as long as:
- The supplier will not change the layout of the invoice (which happens often).
- A new contractor with a completely different document design will not appear.
- The scan will not move a millimeter during scanning.
When this happens, traditional OCR throws out errors, and the employee has to go back to manual correction. This isn't automation - it's just a prosthesis that needs constant maintenance.
What is Intelligent Document Parsing (IDP)?
This is where Dokum and next-generation technology.Automatic document parsing based on language models (LLM) and artificial intelligence works quite differently.
Instead of looking at pixels and coordinates, AI "reads" a document just like a human. It analyzes the semantics and relationships between words.
Example: When the system sees the phrase "Total amount due," it understands that this is the semantic equivalent of "Total amount due" or "Gross," regardless of where it appears on the page.
Key differences that change the rules of the game:
- No templates (Zero-shot learning): You don't have to teach the system every new document. You throw in an invoice from a company you've never seen before, and AI knows where the date is anyway.
- Understanding the tables: For ordinary OCR, the table is a nightmare. AI parsers accurately extract the rows and columns, preserving the structure of the data, ready for export to JSON format, for example.
- Data normalization: AI can standardize dates (replace "January 01, 2024" with "2024-01-01"), which is crucial for the correctness of databases.
Case Study: How "Logistics Company X" saved 15 hours per week
Let's learn the story of one logistics company ("TransLogic"), which faced classic documentation chaos.
Pre-implementation situation: The shipping department received about 50 transport orders (PDFs, photos, Word) per day. The team spent the first 2 hours of each day transcribing data into the TMS system. This resulted in delays, fatigue and address errors.
Solution from Dokum: The company implemented intelligent parsing. Shippers sent files to a dedicated email address. The system automatically identified the document, extracted the key entities (Address, Weight, Date) and sent them to the TMS via API.
Effect:
- Order processing time dropped from 5 minutes to30 seconds.
- Shippers recovered a total of15 hours per week.
- The number of address errors has dropped to zero.
Why is your company losing money on "Ctrl+C"?
Often managers don't see the problem, because "after all, we've always done it that way." However, on an annual basis, the cost of manual labor is enormous.
- Cost hidden in errors (Data Integrity): The human brain is not designed to copy strings of digits. The error rate with manual input is about 1-4%. Automatic parsing eliminates this risk factor.
- Business scalability: If your business is growing, the number of documents is increasing. With automation, the same team can handle 10 times more documents without overtime. A tool such as Dokum scales immediately.
- Speed of decision-making: Data trapped in PDF files (aka Dark Data) is useless. Real-time parsing gives you insight into financials and inventory in the here and now.
How to implement document parsing? 3 steps to automation
Modern SaaS tools are built with a No-Code / Low-Code philosophy, so you don't need a staff of developers.
- Identify the bottleneck: Choose one process that generates the most manual work (invoices, resumes, orders).
- Test the parser: Put 5-10 typical documents into Dokum. See how it handles data extraction and Polish characters.
- Integration: Make the data flow. Connect the parser to applications like Google Sheets, Salesforce or ERP systems using Zapier/Make. A file drops into your email -> AI reads it -> data lands in your system.
Summary: Can you afford not to automate?
Technology has moved forward. Sticking to manual data entry is like using a paper map in the age of GPS.Automatic document parsing is an accessible tool that restores time for your employees to think creatively and build relationships.
If you want to end the era of "Ctrl+C, Ctrl+V," the solution is at hand.Ready for automation? Check out Dokum today and see how artificial intelligence turns chaos into organized data in seconds.