Optical Character Recognition (OCR): What it is, Benefits and How to Implement in SharePoint
In today’s fast-paced business environment, managing data effectively is more important than ever. From improving workflows to ensuring compliance, businesses need efficient solutions to handle the increasing volume of data.
One such solution is Optical Character Recognition (OCR), a technology that converts different types of documents, such as scanned paper documents, PDFs, or images, into editable, searchable data.
Let’s explore:
What is OCR?
Optical Character Recognition (OCR) is a powerful technology that scans and converts printed or handwritten text from images, PDFs, or physical documents into editable, searchable data. OCR works by using machine learning algorithms to recognize text within the document and then extracting that information to create usable digital files.
In the context of M365 and SharePoint, OCR enables your organization to manage vast amounts of documents more efficiently by turning static files into dynamic, searchable, and editable content. Whether you’re scanning invoices, contracts, receipts, or forms, OCR adds value by making these documents more accessible and actionable in digital environments.
The Value of OCR in M365/SharePoint
While OCR offers general benefits, its integration with M365 and SharePoint delivers powerful advantages that directly improve document management and collaboration. Here’s how OCR can transform the experience:
Enhanced Searchability in SharePoint
OCR makes it easier to locate specific content within SharePoint libraries. Once documents are scanned and processed with OCR, the text within them becomes searchable across your entire SharePoint environment. This enhances the search experience by allowing users to find keywords within scanned PDFs, images, and other non-editable documents. This capability is especially useful for industries like healthcare, finance, and legal, where large volumes of documents are regularly processed.
For example, in SharePoint, using PnP Search with OCR-enhanced documents can help you target specific metadata or content inside documents, making search results more precise and comprehensive. To learn more about PnP Search, check out our PnP series.
Practical Tip: Implement Search refiners to categorize OCR text by metadata or document type, ensuring users can easily filter results and find exactly what they need.
Streamlined Document Management
OCR significantly enhances document management in SharePoint by enabling metadata extraction. For example, you can extract key data points such as invoice numbers, dates, client names, or contract IDs from documents and automatically populate SharePoint metadata fields. This reduces manual data entry, improves accuracy, and ensures consistency across your document library.
Practical Tip: Leverage SharePoint Document Libraries and create custom content types with pre-defined metadata fields. OCR can automatically fill in these fields, making it easier to organize, retrieve, and report on documents without additional manual work.
Improved Compliance and Records Management
OCR helps ensure that your documents are properly indexed and organized, which is crucial for compliance and effective records management. For businesses handling sensitive data, such as in the legal and healthcare sectors, OCR ensures that important documents are stored in an easily retrievable format, while maintaining regulatory compliance (e.g., GDPR, HIPAA).
When OCR is integrated with SharePoint, documents can be automatically tagged with relevant metadata and indexed according to compliance standards. This makes it easier to locate documents during audits, ensuring your organization can meet regulatory requirements. In the compliance area, it also helps with eDiscovery / FOI searches if the content is fully searchable through OCR
Practical Tip: Configure Retention Policies in SharePoint to automatically delete, retain, or archive OCR-enabled documents based on their metadata, helping you stay compliant with industry regulations.
Cost Savings
By automating the processing and organizing of documents with OCR, you reduce the need for manual data entry and minimize errors. This leads to operational cost savings and frees up employees to focus on higher-value tasks. SharePoint’s seamless integration with OCR tools allows for greater efficiency by streamlining document workflows.
Practical Tip: Combine OCR with Power Automate to trigger workflows based on OCR-extracted data, such as automatically routing invoices for approval or categorizing contracts based on document type.
How to Implement OCR Successfully in Your SharePoint Environment
To get the most out of OCR in M365/SharePoint, it’s important to choose the right tools, configure your SharePoint environment, and implement best practices. Here’s how to ensure smooth integration:
Choose the Right OCR Tool
Selecting an OCR tool that works seamlessly with M365 and SharePoint is crucial for successful implementation. Look for solutions that offer high accuracy, scalability, and can integrate with SharePoint libraries. Many OCR tools also support AI-powered text recognition to enhance performance, especially when dealing with complex documents like contracts or medical records. For example, with our client the City of West Kelowna, the Gravity Union team used Azure AI Services and Microsoft Graph API. Read the full case study here.
Leverage PnP Search and Metadata Integration
For maximum effectiveness, integrate OCR with PnP (Patterns and Practices) Search in SharePoint. This allows users to search not only document properties but also the actual text within documents. By leveraging OCR data for automatic metadata extraction, you can streamline document categorization and improve the accuracy of search results.
Learn more about PnP Search in our blog series on the topic.
Consider Integration with Existing Systems
OCR works best when integrated with your existing workflows and systems, such as Microsoft Power Automate, Teams, and OneDrive for Business. This integration will allow OCR-processed documents to flow seamlessly through your organization’s processes.
Get Expert Support
Implementing OCR in M365 and SharePoint can be complex, especially when you’re dealing with large volumes of documents. Partnering with experts like Gravity Union can help you design a solution that fits your business needs and integrates with your existing infrastructure.
For instance, we helped the City of West Kelowna streamline their document management processes by integrating OCR with SharePoint, enhancing searchability, and ensuring compliance. Similarly, the City of Surrey saw improved document indexing and quicker retrieval times through our tailored OCR solution.
Ready to unlock the power of OCR? Explore our full case studies on the City of West Kelowna and City of Surrey to see how we’ve helped organizations.
You can also contact us with your questions and to learn how we can enhance your document management and compliance workflows.
