What is ERP in MIS?
What Is MIS?
MIS stands for a Management Information System. It is a united database that stores critical data regarding personnel, finances, operational activities, as well as varied business processes. The main purpose of this system is to store, collect, distribute, and process the data on which reports are generated. It also covers key features such as long-term and current planning, analytical forecasting, and more.
The primary advantages of MIS include task prioritization, improvised personal responsibility, task priority, less paperwork, increased competitiveness, and more.
MIS applications can be traced in various areas. It gears up the data exchange process among different departments including sales & marketing, production, and more. The best part about it is that MIS integration or development can be customized as per the needs of a company.
What is ERP in MIS?
An ERP system is nothing but a software solution in MIS and acts as a large part of it. This part usually deals with creating routine operations of the business while offering analytical data to the managing heads, and facilitating crucial business processes and other functionalities. Hence, this is what is ERP in MIS.
Since ERP is a distinctive factor of an MIS, we must mention here that the ERP enterprise resource planning software has emerged as the strongest platform for all SMEs.
Also, the application gets access from a single application from where every department would leverage a fully optimized part, making ERP and MIS modular systems. The greatest benefit of these systems is that they can store data in a central system that is already synchronized.
What are the Core Functions of MIS?
We have gained detailed information on what is ERP in MIS. MIS is an integral part of the business. Its major purpose is to report on all the business functions, facilitate decision-making and ensure that an enterprise is functioning efficiently. Significantly, all these factors will help empower the business and help it to gain a competitive advantage.
Given below are some of the important functions of MIS:
1. Easy Data Access
With the MIS, access to information becomes easier as it allows the teams to collect information from marketing, finance or operations conveniently. Managers can easily access instant reports for decision-making which are stored in a centralized location.
2. Collection of Data
All data from across the departments are garnered and collaborated with outside sources. This benefit will help in maintaining a healthy relationship with the vendors, distributors, point of sale and anyone involved in the supply chain network.
3. Tracking Performance
In the MIS, the production and sales information is documented and stored accurately. This will also help in tracking the performance of the employees. In addition, this will assist in identifying any risks in advance and help to rectify them sooner.
4. Improves Workplace Collaboration
If we take the example of large organizations, many members are involved in the process of decision-making. Even if the decision-makers are working in different locations, MIS can collaborate them. As information is available in the centralized database, the team from multiple locations can access it.
5. Projections of the Company
Management Information systems can help to know how a business will perform with its current configuration through its trend analyzing features. It also gives an idea regarding the implementation changes and how they will impact the organization.
6. Tracks Executed Business Decisions
MIS helps in monitoring the performance of the business decisions. It also checks if the teams are on track to achieve the expected results.
What are the Core Functions of ERP?
Enterprise resource planning software integrates various business processes into a common database. It breaks down all the departmental silos so that the information flows freely across the departments. Here are some of the core functions of ERP:
1. Financial Management
In this ERP module, every function related to the company’s financials is managed seamlessly. In addition, easily manage financial transactions such as budget allocation, payroll, financial reporting and maintaining financial records.
2. Human Resources Management
ERP for human resource management can streamline all the HR processes such as recruitment, employee boarding, performance evaluation, and payroll management and efficiently manage the overall workforce.
3. Inventory Management
Inventory Management ERP will give you a detailed view of all the activities of the inventory in real time. It will be easier to track the movement of the goods with this system. It also helps in maintaining optimum inventory levels, reduces excess inventory and eliminates shortages.
4. Supply Chain Management
ERP for supply chain management aids in establishing control over all the operations. It has features which will help in maintaining the flow of materials, information and finances in the supply chain network. It also helps in collaborating with suppliers, manufacturers, wholesalers, distributors and customers. Hence, ERP efficiently manages the entire complex supplier process.
5. Customer Relationship Management
CRM module of ERP is highly beneficial to provide better service to customers. It helps with customer information, interactions, and relationships. Consequently, businesses can maintain better relationships with the customers and it will also help in providing better after-sales support.
6. Production Management
ERP is proficient in managing the entire production process from planning and scheduling and quality control. With this advanced system, the production process can be done affordably without compromising on product quality.
7. Project Management
It is one of the significant ERP modules where the entire project is organized efficiently. From planning to execution, factors such as resource allocation, task management, tracking progress and ensuring timely completion of the project.
8. Analytics and Reporting
ERP provides advanced tools for data analysis and reporting. This data will help the business to make insightful decisions based on real-time information, current and historical trends.
Why Choose Enterprise Resource Planning ERP?
An ERP offers several benefits to its customers. These benefits include greater workflow efficiency, high confidential data security, effective service, improvised supply chain management, high scalability, easy reporting, and more. ERP application for the business will boost the productivity and revenue of the business.
However, if the system is fulfilling your every requirement then you should always opt for buying efficient ERP software.
ERP finds its applications in different industries’ business processes and functions including manufacturing, transportation, logistics, retail, wholesale, financial, and production management.
What is the Difference between MIS & ERP Connection?
Management information systems and ERP solutions are closely related. The purpose of MIS is to generate, organize and present information for managerial decision-making. It collects data from within the organization from different processes. The data will be further processed which will be presented in the form of reports and then on the dashboards. Hence, MIS completely focus on extracting meaningful data for the business to make insightful operational decisions.
Enterprise resource planning system automates all the business processes and streamlines all the functions efficiently. It is an advanced business intelligence software which integrates all the processes of the business into a common system. It is the best software for data management and supports the real-time information flow among various processes.
Finally, MIS mainly focuses on the information management and reporting required to support decision-making. ERP is a broader term and it encompasses MIS functionality. In addition, its processes include automation, resource planning, resource allocation, budget planning and collaboration of the entire organization. Together they coordinate to make informed decisions and ensure that the operations are functioning efficiently in an organization.
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