Leading a business, one has to keep many factors in check to be successful. Budget, time, in-house employee skills are all variables in the equation, the chances of solving minimized without good software.
Panorama’s latest survey demonstrates that 83% of companies are ditching outdated sales, marketing, HR, and financial management systems. Modern MIS and ERP systems come to the rescue, boosting the efficiency of data management and business decision making.
However, there is a difference between the two. Thus, it’s important to understand the roots of the complex relationships between these software products. Let’s break down each system’s specifics and consider the key business management features.
MIS (Management Information System) is a consolidated information base that stores all available data about finances, operational activities, personnel, and working processes of an enterprise.
The main role of this software type is the collection, storage, processing, and distribution of data, drawing up data-based reports, and providing information support for management decisions. The major features include analytical forecasting, long-term and current planning, practical control of operations.
The vast scope of functionality led to separate solutions focused on particular capabilities, such as ERP in MIS, decision-making support systems (DSS), and office automation platforms (OAS).
MIS is initially adapted to a certain type of business, which individually boosts the efficiency and profitability of operations. Such systems are used in finance, marketing, manufacturing, IT, and many other professional areas.
The definite advantages of MIS include:
On the flip side, some drawbacks of MIS include the following:
MIS solutions are used to streamline and speed up the exchange of information between the departments of accounting, marketing, sales, production, etc. A system with SAP (Systems, Applications, and Products Data Processing) is useful for almost any enterprise that needs to digitize and organize data due to production needs.
MIS development or integration is tailored to the needs of a particular type of enterprise. For example, for production, the key functions are:
Such a system grants three major management segments:
ERP (Enterprise Resource Planning) is a software solution for enterprise resource planning in MIS. More precisely put, it is a business process management system. ERP is usually a part of the bigger management information system that is at the forefront of simplifying routine operations, providing managers with analytical information and tools to facilitate critical internal business processes.
As a characteristic element of the MIS concept, ERP information systems have become popular among large and small-sized businesses and more so than MIS itself. These are capacious systems that unite various management subsystems of departments in a large organization.
With access through a single application, each department uses a part of the system that is optimized for specific tasks. These applications are modular and store data in a centralized system database, all parts of which are synchronized.
However, when comparing MIS vs ERP, the latter doesn’t answer all the questions. By itself, it cannot eliminate inefficiency within the company. To achieve superior results, managers may need to change the way the business is organized. Otherwise, it makes no sense to spend a lot of money on a system incompatible with the business.
How to choose the right ERP accounting software? Read in our article!
Based on the numerous user feedback, we can define the following main advantages of ERP:
Again, alternatively, there are two common issues related to the implementation of an ERP in management information system:
Nonetheless, these disadvantages are quite overbalanced by all the goodness an ERP may bring your business.
If the system meets real needs, it will pay off quickly. In addition, it is always possible to create custom ERP software with the required functionality without unnecessary decisions. As a last resort, you can reduce the cost by asking developers to include only MVPs. Other options can be added as the need appears and only in complete confidence that they will pay off.
More about ERP types — read here!
This type of systems is quite commonplace among companies operating in the following fields:
The role of information management in ERP is critically important in any applied business aspect, including:
Now that we defined the roles of both systems, we can easily answer the question – “what is ERP in MIS?” and understand the relationship between them. ERP is considered a particular case of MIS. To be precise, programs of the first type are derived from programs of the second. And here are the main differences between them:
In a nutshell, MIS is the collection of information and reporting – it is all about generalized control. ERP is a tool for the practical implementation of business processes and accounting, analysis of the current business state and forecasting of its future development. That is, it’s more about direct control.
Now that you know what ERP in a management information system is, it should be easier for you to decide which one you need or whether you need to implement both. Regardless of how complex or valuable a solution may seem, it is critical to objectively analyze what ROI will be long before implementation. But assessing the return on future investment is difficult, so it is important to choose a software developer who can help you handle such decisions based on in-depth expertise.
DICEUS provides a wide range of software development, testing, migration, and support services. Our team has extensive experience in implementing corporate solutions. We will put your business under the microscope and advise which option is best for you.
If you need an efficient and easy-to-use system, you should know that there are both localized and cloud solutions of varying complexity and cost. We will offer the most appropriate technology for developing a software product according to your business’s needs. Send us your criteria, and we will promptly contact you for an assessment.
Looking for top-notch MIS or ERP software? We’ll help you get the most out of it.
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