The difference between MIS and ERP: Do These Systems Differ?
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Is There Any Difference Between MIS and ERP?

by Irina Kravchenko

Technology is a must in modern business. To digitally change business models, concepts, and operations, companies are constantly looking for innovative technologies, better management systems, and user-friendly software. Improved systems and stewardship help companies stay competitive not only on the domestic market but also on the world mark. A great variety of terms for enterprise management software causes ambiguity in some notions. Today, we will examine the difference between MIS and ERP terms and will try to distinguish those.

Both MIS (management information system) and ERP (enterprise resource planning) system manage business data and help executives make data-driven decisions. However, these two systems are a little bit different. Therefore, in this article, you will learn certain similarities and differences between MIS and ERP. Before comparing and contrasting MIS and ERP, let’s define both.

What Is MIS?

MIS, a management information system, is a centralized database that stores information about the company’s departments and allows managers to use this information for managing workflow, making data-driven decisions, and generating reports. The basic concept of MIS is to process data from an organization and present it in form of a report in regular intervals.

Management information systemThe main objective of information systems implementation is to raise the business’s income and enhance its profitability. The decisions of MIS implementation are usually taken by chief technology/information officers. Below are the main functions of MIS:

  • Data capturing is the process of gathering data from various resources. This includes the following: customer touch points lives, e-commerce sites, global shopping, self check-out, etc., an output of one or more systems like sales, finance, market analysis, operations, etc. and from social media sites.
  • Data storage. All data is collected in a database or in data files. This data is also stored in various storage media (DVD, hard drives, etc.). Cloud-based applications store data on virtual servers.
  • Data processing. Converting all data into meaningful information is what is called data processing. This is an important function of MIS.
  • Information and data distribution. As information is the core necessity, for achieving competitive advantage, distribution of the right information to the right person in the right time is information distribution. The information could be in the form of report, image, message, file, video or audio. To facilitate comparison, information is presented in the form of charts or tables or graphs.
  • Prediction and forecasting. With the help of modern statistics, MIS can predict business using historical data as a base.
  • Planning. Reports are generated based on the enterprise’s needs. These reports help management to plan in advance.
  • Control. MIS helps in monitoring and tracking operations against organizational plans. The deviation between the operations and the organization plans is analyzed for exercising control.

As mentioned above, MIS has different functions that enable the management to function effectively and efficiently.

What Does ERP Stand For?

ERP means enterprise resource planning. It is a large system allowing companies to manage their information properly, facilitate information sharing, business planning, etc. In other words, that is what we call a management information system (MIS). And if you ask “Is ERP a part of MIS?”, we can definitely say that it is. According to Wikipedia, ERP system is a subset of MIS.

Enterprise resource planning is a computer-based system that unites various functions like inventory, accounting, inventory management, human resources, etc. Below are the main functions of ERP systems:

  • Accounting. Accounting is one of the key functions of ERP software which is intended to manage receivable and payable accounts, payroll, tax reports, and working time tracking. Accounting tools give employees a real-time look at their finance system.
  • Manufacturing. ERP provides a single interface for managing manufacturing processes like production, procurement, budgeting, planning, and forecasting.
  • Customer relationship management. Facilitates customer interaction and manages relationships with suppliers and vendors.
  • Forces discipline and organization around the business.
  • Business intelligence. Supports administrative activities. BI tools capture and analyze data processes within the ERP system.

What does ERP stand for?

Would you like to learn more about ERP systems? Here are some helpful links:

Is It Worth Moving Your Resource Planning to the Cloud ERP?

Do You Need ERP Software Development Services?

14 Key Benefits of ERP Having Positive Influence on Business

A Relationship Between ERP and MIS

Having defined the terms of both systems, we can easily understand the role of MIS in ERP. As discussed above, an enterprise resource planning solution is a part of a management information system. The main difference between the two systems is as follows:

ERP is all about automation of the workflow and accounting processes. ERP is planning. It analyzes business and forecasts development decisions.

MIS is all about reporting. MIS is information. It collects, saves, and organizes the information from different departments in a single database.

How Can Diceus Help You?

If you are looking for a user-friendly MIS or ERP solution, you should know that there some options like on-premises solutions and cloud-based solutions. Our team is able to consult you on what option will work best for your company. Besides, we provide a wide range of software engineering, testing, migration, and maintenance services. We will offer you the best-suited technology to develop the software product in accordance with your business needs and requirements. Send us your requirements and our professionals will contact you as soon as possible. Should you have any question, feel free to ask us.

 

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