Why ERP is Better Than MIS: Top Difference Between Software
According to Panorama’s survey, approximately 83% of companies are staying off obsolete systems of sales, marketing, staff, and finance management now. Modern MIS and ERP systems are helping with that, as their main function is to improve the efficiency of data management and business decision-making.
As we speak, MIS and ERP are widely used in sales, marketing, finance, logistics, and other industries to track business data and make weighted operational and management decisions. Nevertheless, there is a very significant difference between them: MIS is the designation of systems that control any kind of information, and ERP is a specific type of information. That is, the first is a particular and / or element of the second.
This article will answer the following questions:
The main reason for introducing such systems is to increase the income and profitability of the business. The company’s management and chief technology experts make the decision on the implementation of MIS. Below are the main functions of MIS:
If the restaurant uses MIS, then such a system will be divided into three levels:
The advantages of management information systems include the following:
Scope of application of MIS
MIS solutions are most frequently used to optimize and accelerate the exchange of information among the departments of accounting, marketing, sales, production, etc. A system with SAP (Systems, Applications and Products in Data Processing) is useful almost for any enterprise, where there is a necessity to digitize and systematize data according to production requirements. Development or integration of MIS is adapting to the requirement of a specific type of company. For instance, key features for the production are:
Currently, this component is even more popular among large and small enterprises than classic MIS because it’s customized to more specialized tasks.
The main functions of ERP-systems:
Panorama studies have shown, that 80% of enterprises are either in the process of implementation or are already using ERP systems because a specialized decision is always prioritized over a general one. This is mainly a business in the field of retail, logistics, production, distribution, finance, real estate, and information technology. Recently, ERP solutions based on distribution registers have been popular: blockchain, Tangle, Hashgraph.
Depending on the application, ERP covers the following:
The implementation process of ERP systems is far from simple. Initially, it’s the integration of the most important blocks, which embody the basis of the company’s activity. As a rule, these are such parts of architecture as the platform (a base with minimum capabilities, i.e. the environment) and «control of the money», where the database is stored, methods of array storage and processing are considered, and the software to work with them. Then the rest, which is related to separate less-significant departments, is embedded.
To sum up, the following differences can be identified. First of all, as it was stated in the beginning, MIS is a more general concept of information; more precisely – an entire class of management systems, a special case of which is ERP as information on resources.
The result is a certain difference in specifics of interaction with data.
The task of MIS is primarily to work with accounts and reports, i.e. collection, storage, and processing of information from certain sources. ERP aims at the automation of business processes and accounting, which are related to the company’s resource management. On top of that, ERP has features of monitoring the current state of the business, analyzing, and forecasting future activity and development.
As stated at the very beginning, an enterprise resource planning (ERP) system is a special case and / or element of a management information system (MIS). The main difference between the two:
ERP is a business process management software that integrates and enables finance, supply chain, operations, reporting, manufacturing, human resources. This software is part of the MIS, which integrates many other components. It is cheaper and easier for you to use the ERP if you need to solve the following issues: accounting, finance, production processes, HR or business analytics.
MIS is mainly reporting. Such software collects, stores and processes information from various sources. ERP is responsible for the automation of business processes and accounting related to the management of company resources.
MIS is a large management system, which includes ERP. The goal of MIS is primarily to work with accounts and reports, i.e. collection, storage, and processing of information from certain sources. ERP aims at the automation of business processes and accounting, which are related to the company’s resource management.
1. Simplified reporting. ERP solutions usually have a built-in report template or employees can create custom reports. 2. Increased efficiency. Like MIS, ERP software reduces the number of repetitive manual processes. 3. Improved business processes. Resource planning systems provide timely access to data.