Difference Between ERP and MIS

ERP vs MIS

The use of information technology to make businesses more competitive and productive has become very popular and almost necessary in recent time. There are many information systems that are being used by organizations for this purpose. Two such powerful tools that provide management with all the relevant information that helps them to take better and effective decisions are ERP and MIS. There are a lot of similarities in these two approaches though there are glaring differences also. This article will highlight these differences so as to enable managers to choose one of the two depending upon their requirements.

ERP

ERP stands for Enterprise Resource Planning, and refers to a broad set of activities that are basically meant to help manage a business in a better manner. The information that is available through ERP helps a manger to learn the values of key indicators or parameters. These values are important for the management to judge whether they are moving in the right direction to achieve the aims and objectives of the organization. There are a lot of applications of any ERP software as it can be used for inventory planning, purchasing, product planning, interaction with suppliers, customer service while also having an eye on orders. Additionally ERP software can help management in human resource planning as well as in finance applications. An ERP system requires new work processes and training of employees.

MIS

It stands for Management Information System and is used for making available essential information for the management that is vital for better administration. It is basically a computer based information system about entire business operations. It is basically storing information regarding all the departments of an organization in a centralized database and making available this information to the managers who can take better decisions based upon this information and also manage the flow of information from one department to another in a smooth and streamlined manner. MIS has the capability to generate reports as and when the user demands it. It is mainly used to create reports on the basis of which decisions are taken.

ERP vs MIS • ERP is a specific application of MIS. • If MIS is knowledge, ERP can be considered as book. • ERP is very user friendly and mostly used in manufacturing units.