Show Paper Explosion Optical readers allow direct entry of typed or printed data into data processing systems without any human The technique is faster and more accurate one error in than many methods of placing information into data-processing keypunching is still the principal method by which information is the com-puter industry has been reluctant to abandon slower and more cumbersome method because its keypunch devices already have been fully depreciated and represent an important source of revenue for the competition from emerging independent firms is pressuring IBM and other large computer producers to accelerate moves to gain acceptance of optical known in the trade as optical scanners and-or optical character recognition equipment INDUSTRY IS deluged by the so-called Information processing of made giant strides via the computer and its accessory input and output the method of feeding the data into the computer is the bottleneck to optimum Key- punch equipment still processes some 80 percent of all conventional data fed to the ITS dragging the large number of clerical workers and the potential for error in this method are some of the reasons for trying to phase out this OCR machines read the source data at hundreds to thousands of times the speed or keypunch Optical systems permit a direct input without the need for expensive LAST YEAR the estimated value of annual shipments of OCR equipment was around to Projections for 1975 range from million to The Research Department of Babson's Reports believes a median figure close to million seems more In 1970 OCR devices processed 10 percent of the input and this is expected to double by THE manufacturers comprise two distinct groups-small independent companies and the major computer producers for whom OCR is just another segment of their To the Federal Government has been the principal market because of the high costs of multifunction OCR equipment to million THIS high-volume market has been dominated by the big computer The small independent com have developed simpler machines for low- and medium-volume application that are not tied to the giant are substantially lower in and offer a broad range of There is no chance over the near term that OCR or any other type of data entry equipment will displace the keypunch system by computer the OCR independents such as Recognition Optical Scanning Scan Scan and Information competing technologies such as key-to-magnetic tape devices and on-line data entry terminals-will continue to scramble for a larger foothold in the information processing The OCR industry has been fraught with disappointments the pioneer and a large factor in the has sold its OCR IBM AND Control Data-along with other computer firms-supply some 60 percent to 65 percent of the and are therefore fierce competitors for the Lion's The Research Department of Babson's Reports is of the opinion that any profits in this special field be five to ten years investors should confine their interest to the large computer companies developing or already having OCR at least until the independent OCR concerns are more firmly |