We’re back, with another blog from the aclaros AI-series of blogs. In Part #2, we talked about AI-powered customer service automation within SAP Business One. In today’s blog, we will be exploring how Optical Character Recognition (OCR) capabilities for document digitization within SAP Business One is transforming the way businesses track, retain, store, review, and analyze data across their organizations and the impact it is having on those companies. 

As always, please remember that while some of these solutions are fully functioning in SAP Business One today, others are achievable using the AI toolsets that are available for SAP Business One.    

OCR technology is used to convert different types of documents, such as scanned paper documents, PDFs, or images captured by a camera, into editable and searchable data. It essentially allows computers to recognize and process text from images, making it easier to manipulate the text in digital form. Perhaps the most prevalent use-cases for OCR technology in the ERP space today is with AP Automation solutions and Travel and Expense Management solutions. Let’s explore these applications further and discuss the value, and impact it can have on your organization.

Image representing OCR technology integrating with SAP Business One

OCR Capabilities for Document Digitization

Common OCR applications include digitizing printed documents, automating data entry, translation services, and accessibility services.  In the world of ERP, AP Automation and Travel and Expense management solutions are among the most mature solutions taking advantage of OCR-driven technology. The following table explains how both of these solutions have adopted OCR technology to drive efficiencies and productivity gains for organizations at the highest level.

How AP Automation and Travel & Expense Management Solutions use OCR technology 

Document Capture Scan and capture all relevant data from target documents 
Data Extraction Extracts text and specific fields at header level, line items and more
Data Validation Data is validated against business rules; any discrepancies are flagged for human review to ensure accuracy. For travel & expense, expenses are categorized according to company policies  
Integration with ERPs Following validation, data can be automatically entered into ERP and approval processes can be managed  
Workflow Automation Triggers can be set up for automatic workflow from routing, to approvals and more.  For travel & expense, OCR helps generate complete expense reports. 
Searchable Archive Documents are stored digitally with fully searchable text

The adoption of OCR technology has been growing very rapidly as companies continue to look for ways to leverage AI solutions in an effort to work smarter. OCR technology is revolutionizing small-to-medium sized businesses (SMBs) by significantly improving operational efficiency, accuracy, and cost-effectiveness. Once accessible only to large enterprises, are now empowering SMBs to operate with the same level of sophistication as their larger competitors.  The following table outlines how OCR solutions like AP Automation and Travel & Expense Management have positively impacting SMBs. 

The Impact of OCR in AP Automation The Impact of OCR in Travel & Expense Mgmt.

The Impact of OCR in AP Automation

  • Eliminate manual data entry – from invoices, reducing the risk of costly errors & freeing up employees for more strategic tasks.
  • Accelerate invoice processing – allowing faster payment cycles, improved vendor relationships, & ability to take advantage of early payment discounts
  • Reduce costs – by minimizing the need for a large accounts payable team, cutting down on paper storage, and streamlining workflows
  • Increased visibility and control – over cash flow and expenses through real-time, searchable digital records, ensuring compliance with financial audits and regulations.

The Impact of OCR in Travel & Expense Mgmt.

  • Automate the tedious task – of creating expense reports, with receipts being instantly scanned, categorized, and logged within minimal employee involvement
  • Ensure policy compliance – by automatically flagging violation and excessive spending, reducing financial leakage.
  • Provide real-time visibility – into travel expenses, allowing for better budget management and informed decision-making.
  • Improve employee satisfaction – by speeding up reimbursement cycles and reducing the burden of manual data entry for employees.

Ultimately, the introduction of OCR technology into these areas is helping SMBs transform digitally, driving competitive advantage through automation. By automating mundane tasks, reducing overhead costs, and improving accuracy, OCR allows these organizations to focus on what matters most – growth, innovation, and customer satisfaction. 

In today’s business environment, SMBs cannot afford inefficiencies. OCR empowers them to streamline their most critical processes, allowing for scalability, stronger financial health, and the agility needed to thrive in a competitive marketplace.

Reaching Out to the Experts

Stick with us for the next blog in our AI Series, where we’ll explore the topics of PO Matching and Three-Way Algorithms and Automatic Recommendations for Lead Time Adjustments.If you’d like to learn more about how aclaros is embracing AI-driven solutions for our SAP Business One practice, please contact us today.

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