When forms processing pays By James E. Woodruff, Vice President of Marketing Wheb Systems Forms processing is one of the most exciting areas of imaging today. It bridges the gap between the paper and digital worlds by using technology to automatically enter information into a computer. Forms processing also provides a compelling business case--more accurate data can be collected in less time and at less than half the cost of traditional data entry methods. Distinctively different than other imaging technologies such as storage/ retrieval, full-text conversion, workflow, or COLD, forms processing is assisting many large companies in obtaining important data from their business documents. Just think about the credit, tax, registration, and other forms you fill out every day, and you will begin to understand how U.S. businesses and government agencies spend over $10 billion per year on getting the information they need to operate. The benefits of forms processing include reduced costs, little or no physical sorting, faster turnaround times, better control, increased interest income, and competitive advantages. Although there are different levels of forms processing products on the market today -- each at a different price point and performance level -- the amount of keying required to get information off a paper document and into a computer is greatly reduced with forms processing. Real savings of 50% to 80% are not uncommon with more advanced forms processing products, since the software technologies employed replace most of the work that used to be done by hand. Additional labor savings come from reductions in paper handling, particularly when a forms processing system can reliably sort documents electronically, regardless of how they were scanned. The workflow built into a forms processing system also reduces the costs of document handling. Forms processing pays for itself when there is a good "fit-to-function." In today's world of continuously improving business performance, a key strategy is to implement techniques that reduce cycle times. Forms processing allows information to be entered into a computer system the same day documents are received, rather than over the several days typical of many manual operations. For some institutions, such as banks, that deal with large numbers of financial transactions, this time savings can translate to a hard-dollar advantage in the hundreds of thousands of dollars. This does not include the advantages of controlling incoming information in-house without the delays, risks or inaccuracies of outsourcing. There are five primary factors that drive the effectiveness of a forms processing system: * fit to function * recognition accuracy * editing efficiency * flexibility * acceptance. Let's explore what these factors mean and how they affect what forms processing can do for you. Fit to Function Forms processing pays for itself when there is a good "fit-to-function." This occurs when the capabilities of a forms processing system are well suited to the types of documents and data you process. Forms processing is a great tool for some things and an ineffective tool for others. Like any technology, the expectation that forms processing can do everything would be like expecting to use a fighter jet to dust crops. A good fit fundamentally exists when data needs to be captured from documents that would normally be entered by hand. Timesheets, surveys, and credit card applications are great examples. These documents need to be image-able, which means that they can be scanned or faxed easily and contain recognizable data such as machine print, hand print, checkboxes, and barcodes. Also, forms processing is most cost-effective when several hundred or more forms can be processed at a time; indeed, some systems process several hundred thousand documents a day. Look for a system that fits your purpose. If you use forms processing for documents that are barely readable or image-able, you will not be satisfied with the results. Many people with a good fit are ecstatic that their systems have paid for themselves in less than 12 months. Consider a forms processing system that already does what you want to do: Read your type of documents and interface with your type of database. Also, work with a provider that understands forms processing as well as your operation. This will help you avoid disappointing results. Recognition Accuracy Character recognition engines are the technology behind a forms processing system. There are two common types of recognition engines: Intelligent Character Recognition (ICR), which typically applies to hand print recognition, and Optical Character Recognition (OCR), which typically applies to machine print recognition. OCR technology has been around for many years and has become very accurate. ICR technology is also well-developed, and is based on more advanced neural network technologies that have proven themselves over the last few years. Typical Recognition Error and Accuracy Rates Note that acceptance rate is the opposite of reject rate. For example, if the rate is 5%, then the acceptance rate is 95%. Recognition accuracy determines how much money you will save with forms processing. Neither OCR nor ICR is currently capable of perfectly reading every character from a document's image. Despite this, large amounts of money can be saved when OCR/ICR can read most characters. There are two types of errors that relate to forms processing accuracy: reject errors, which are those characters an engine knows it can't read, and substitution errors, which are those characters an engine mistakenly recognizes. Substitution errors are the worst kind because they can slip through unnoticed. Rejects are correctable, but if there are too many, you can end up keying most of your documents, which defeats the purpose of forms processing. Properly configured for the right applications, forms processing produces significant productivity gains. The figure above illustrates typical error and accuracy rates. More expensive forms processing systems offer outstanding accuracy and low substitution rates, while less expensive forms processing software tends to have high substitution and reject rates. More expensive systems are ultimately less costly as well, based on the ongoing costs of labor. Generally, it is true that you get what you pay for. An alternative way of improving accuracy is the use of voting algorithms, which compare the most likely results of several engines. While some tests have supported voting, the common problems in real life limit the practicality of voting, especially ambiguous characters. A better way to ensure recognition accuracy is having forms processing systems "think" more like humans, taking into account the context of the words and characters recognized. Context makes a much bigger accuracy difference than voting, especially for hand print. It is also more cost-effective because it doesn't require the processing time or expense of several engines repeating the same work. Editing Efficiency Forms processing pays when it is easy to fix errors. Full-context editing displays images of forms side by side with questionable data highlighted on the screen. This allows operators to view and edit questionable characters in the full context of each word or field. This is an effective way to resolve unknown or ambiguous errors, especially since the entire document can be readily inspected. Also, data validation checks can be run during the editing process, so that any preventable errors are detected and corrected up front. No forms processing system can do everything you might want, so it is important that it be flexible. The best forms processing systems optimize the key editing process. Alternative editing methods have been developed for use with recognition systems to speed the editing process, including block editing and ribbon editing. Block editing and its variations show blocks of similar characters together on one screen, regardless of whether they were questioned by the recognition engine. An operator can theoretically scan the screen and fix any obvious errors that might exist, since dissimilar characters that have been misclassified stand out. The problem with block editing is that human operators are more likely to miss ambiguous characters when they are lumped together, which can increase the error rate and negate the speed advantage. The best way to optimize the correction process is with ribbon editing, a process unique to Wheb Systems. Ribbon editing displays streams of questionable characters for extremely fast operator correction. This out-of-context method avoids the distraction and lengthy thought processes that slow down full-context editing. The majority of questionable characters are resolved in this mode; any remaining errors are then diverted to full-context editing for more detailed correction. The overall improvement in editing effectiveness is typically better than 20% with ribbon editing, with no loss in accuracy. Flexibility No forms processing system can do everything you might want, so it is important that it be flexible. Forms processing pays when it can be easily expanded to allow more features, processing horsepower, or server capacity. Component-ware solutions offer the ultimate in flexibility, but they are largely unproven, require starting each implementation from scratch and dilute any single vendor's responsibility. On the other hand, rigid turn-key software may or may not fit your needs, which may make it unsuitable or expensive to use. Ideally, forms processing software should include all of the features required to scan, process, correct and send data from documents while offering software hooks that allow you to easily add functionality or data validation routines. The leading systems are based on an open platform to ease integration with existing systems and aid future growth. They also provide the ability to completely set up a system without programming. Acceptance Careful planning, realistic expectations and commitment are key ingredients in accomplishing any meaningful project. People usually do not like change, but tremendous benefit cannot come without it. To ensure success within a company, an internal champion must take ownership of the system. Also, thorough training for users of the system is important to set expectations and encourage commitment. Perhaps most important, working with someone who understands the technology used in forms processing and who is experienced in implementing it is the best way to ensure success. Implementing forms processing is not hard, especially if you can draw from the experiences and expertise of others. Though people may initially balk at the change to forms processing technology, they learn to love its paper-reducing qualities. A lot of companies have mastered these factors and have proven that forms processing pays. Wheb Systems' customers have proven since 1992 that forms processing is becoming the preferred way of collecting information from the hand and machine print forms we deal with every day, especially those that are processed in large volumes. The best way to get started is to identify those providers who best understand your problem, have parallel industry experience, and have designed their products for your specific needs. Those companies that do will be handsomely rewarded. * James E. Woodruff is the vice president of marketing and one of the innovative founders of Wheb Systems (San Diego), manufacturer of the award-winning Intelligent Forms Processing System (IFPS). He can be reached at 619-586-7885. BankOne Arizona gains 100% improvement, saves $1,000,000 BankOne Arizona's BankCard Services Center receives approximately 3,000 to 5,000 handwritten credit card applications every day. Previously, each application was manually entered by a data entry specialist, who would type the information contained on the application into a master system. After that, the same application was then passed on to another data entry specialist, who retyped the information into the system to verify that no mistakes were made the first time around. However, an information analyst named Olivia O'Reilly noticed the inefficiency of this process and began an investigation into various products and vendors that could improve the productivity of this center. O'Reilly spoke with Jeff Stern, the credit risk manager, who shared the desire and goal for increased productivity. Through the persistence and dedication of not only O'Reilly, but also Bill Lajoie, BankOne's manager of operations-data processing, Wheb's IFPS product was installed early in September 1994. Immediately, the bank showed a 100 percent improvement in data entry productivity. According to Stern, "IFPS has allowed us to quadruple the number of new applications processed from 15,000 per month to 60,000 or more. In real numbers as they relate to cost and production, IFPS will save us over $1,000,000 in the next year alone." The contribution of O'Reilly and her co-workers was recognized and awarded BankOne Arizona's Ideas for Excellence Award of the greatest significance in the company's history. Today, the BankOne System services about 2.5 million cardholders. Bill LaJoie's division is responsible for processing roughly 3,500 items a day. During peak, BankOne has processed as many as 12,000 items in a given day. And, IFPS has enabled BankOne to cut its average number of days to process an application from four to less than one. IW Special Supplement, March 1996
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