ERP and MIS Software

The difference Between ERP and MIS Software

According to researches, many organizations are using the EPR systems while MIS software is mostly used in Accounting, Marketing, finances, and HR management, and many other sections.

But both ERP and MIS help companies in making decisions and managing data. Although they play similar roles, there are several differences between the two. Read on to learn what ERP and MIS software then you will understand their similarities and differences.

Let us start with MIS

MIS means management information system, and it is a database system that stores data about the company. Its principal function is to process data from different departments and create a report from the data. MIS also offers management support when making decisions.

MIS is best for people operating technology and information that creates a positive impact on the business. When a company appropriately strategizes the MIS, it becomes more productive. The system is an idea for medium-sized companies so that they can increase profitability.

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The Concept of MIS Software

As mentioned before, MIS software is best for specified businesses. Let us take an example of an eatery. Since they deal with meals, they have to plan a budget, arrange delivery activities, prepare meals, and serve clients. When we compare the MIS concept to that of an eatery, you will notice they perform the following functions:

Managerial control-The managers come up with menus and get feedback from customers. In case an order is canceled, MIS stores all the details of why it happened.

Strategic control- MIS help business owners to plan budgets and set clear objectives. They can compare expenses incurred and the profits made, which enable them to control the costs.

Operational control- This includes processing to-do-lists using the latest technologies. A good example is when the waiters take orders and redirect them to the kitchen via terminals or when the chef sends a notice regarding the stock request.

From the examples, we can highlight three MIS users’ levels, which include top managers for strategic control, middle-level managers for managerial control, and operational managers for operations control.

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Benefits of MIS

Let us review the advantages of using the MIS system.

  • Single database– All the teams within the organization can access a database with all the data required to process daily tasks. So, all the departments are updated on the activities, which creates a smooth working environment.
  • Prioritization of tasks– Since the system is flexible enough, it gives employees to concentrate on tasks according to the urgency. They don’t have to save and get the data manually, thus increasing productivity.
  • Fair decision-making process- MIS has data processing tools to make concrete conclusions from different sources
  • Highly accountable– All the actions from different departments can be traced, making it easy to make any changes that may arise. It simplifies the work for managers since they can track and know who made some errors.
  • No paperwork- The company processes are through networks. There is no paperwork in the offices. As much as it makes the work simple and faster, it also reduces costs for purchasing paperwork, printers, and other requirements.
  • Financial situation analysis– The MIS system helps top managers to analyze the economic situation of the company. In the end, they can make sound decisions concerning finances.
  • Good competition- Since the MIS software processes the data quickly, customers are satisfied with the services. Above all, it makes work smooth for employees, and they get motivated to work more. In the end, the company gets more value from MIS.

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Disadvantages of MIS

Apart from the benefits the MIS system delivers, there are also some challenges from the systems. Let us highlight them below

  • Expensive– It is costly to buy a ready-made suit. This gives the reason why only established enterprises that have a large volume of data use this system.
  • Requires Skilled Personnel– The staff must have adequate knowledge of how the MIS system operates. This means that the company must incur extra costs teaching employees how the system works.
  • Doesn’t have the required features– Ready-made suites do not have unique features specialized for business needs.

Understanding ERP

ERP means enterprise resource planning. The system helps manage business functions such as marketing, human resources, sales, planning, and other business activities.

The primary purpose of EPR is to enhance interactions between the company and business activities. The entire organization can manage information and plan for the business with the help of EPR.

The system brings together different departments of an entire organization. If the system weren’t there, each department within a business setup would be working on its own. All departments require only one application to process all the tasks.

Most modern businesses use the ERP software for their companies where all the applications store data in a central data storage

Note: Having ERP software doesn’t imply that the company is good to go. There will be challenges within the company, and the top managers have to define clearly the company’s operations to get value from ERP software.

erp-solutions

Advantages of ERP System

In the field of software development, there will always be advantages and disadvantages of some techniques. Let us highlight the benefits of ERP systems:

  • Data security- The ERP system has built-in tools that promote data protection. How does this happen? Well, the managers give different access levels to employees, then the data is stored in one data source. This makes it easy to ensure the information is well-secured.
  • Prompt reporting– Since the ERP has a unified system, it makes it easy to collect reports. The software has built-in tools that enhance financial statements.
  • Improved efficiency- Here, the two software share this similarity because all of the process daily tasks automatically, thus reducing the workload. There are no repeated tasks for a well-implemented system, and it gives room for the employee to focus on other productive tasks.
  • Good Back-up System- The ERP system has the best back-up data system. So, if someone accidentally deletes data, it can be retrieved easily and quickly.
  • Customization– The company can opt to customize the system according to their preference if the one purchased does not meet their requirements. The process makes the business simple to manage, but it comes at a fee.
  • Increased scalability- It reaches a point when the business grows, and the managers open other departments. In such instances, the company needs to be scaled. But with the ERP system, the process happens automatically.
  • Good Customer service Experience– The ERP system offers the best services t both internal and external clients. Since the system automatically processes customer data, the managers have more time to focus on other useful, productive activities.
  • Good workflows– The staff can access the data required whenever the need arises due to ERP software. The system operates under a central database. So, other departments can transfer their information to a central data storage place. Other departments can review data from different departments and act on them whenever the need arises.
  • Cost– With ERP, you have room to make choices. For instance, you can avoid going for the traditional suite due to the extra fees required for the license. Instead, you can opt for a cloud-based system and pay monthly. Although you will save some cash, the teams must subscribe to the monthly to access the system.
  • Good supply chain management- Many organizations deal with the transportation of stock or production output. In such cases, the ERP minimizes the order-processing time and other processes to ensure the business turns out successfully.

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With all the above benefits of ERP software, what can prevent you from implementing one for your company? However, there are also challenges for the ERP system. Let us analyze them below:

Comparison Between ERP and MIS System

When you look at both ERP and MIS systems’ roles, you will realize how their slight similarities and some differences.

From the discussions above, ERP plays a vital role in the management information system. However, check the main differences below

ERP is used for automizing and when planning for different processes within an organization. The process helps top managers to evaluate data and know-how to approach decision making, especially in the financial department.

On the other hand, MIS plays a vital role in managing information. The system collects the data from different teams and stores it in a single database system. As a result, the system creates reports from the data stored in the central storage.

If you are planning to build an ERP and MIS software then feel free to contact Aalpha.

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About The Author

My name is Muzammil K & I'm a passionate Blogger, SEO, and SMM. I share ideas and thoughts on Digital Marketing, Websites, Branding & Social Media.