Key Differences Between BI and Traditional MIS

Business Intelligence (BI) refers to state of the art, modern software which is designed to gather past as well as present data in order to facilitate strategic decision-making for the enterprises’ future benefits. Whereas, traditional Management Information Systems (MIS) is a small part of BI which is a system simply designed to manage information within an organization.

Let us take a look at the key differences between BI and MIS to know which one is the best for your business in 2021.

Extraction of Data 

The data extracted using traditional MIS is aggregate data which is not enough for formulating decisions since this data suffers from a bunch of deviations, the root cause of which simply cannot be identified. Therefore, the finance team is put under immense pressure to go through each transaction and identify this root cause from their General Ledger (GL).

But when it comes to a BI Tool, all data is stored on one single system and can easily be integrated with accounts, inventory and payroll. Thus, pinpointing a particular transaction just takes one click instead of going through everything in the GL manually which is extremely cumbersome.

Comparison of Data

Comparing the data generated by different managers via traditional MIS is not an easy task by any means. There is a lot of manual work involved and more the number of managers, larger is the amount of reports generated by each. This ultimately increases the workload of directors.

Bi Tools facilitate smooth comparison of different types of data across all departments since everything is stored at one place. Their automation process also transforms the data into attractive visuals and saves the time and efforts of departmental heads as well as company directors.

Centralised Visibility & Accountability

In the case of traditional MIS there is no way in which we can store all the data in one place and instantly know the areas where the business is doing well and where it is lacking. In case of budget deviations or missed targets, identifying the exact cause becomes a hectic task.

As far as BI Tools are concerned, you get a dashboard which gives you an overview of all the data across departments in one place. You can easily judge the performance of a team just by taking a glance at the dashboard. It’s most helpful in making prompt business decisions.

Allocation & Feedback

Traditional MIS cannot tell us accurately which organisation is taking up how much resources and is the work allocation among team members resulting in optimum output or not. Thus, there is practically no constructive feedback on which the organization can improve upon.

Since BI Tools make use of Artificial Intelligence (AI), they give us valuable insights into data which cannot be caught by the naked eye. They tell us whether our output is at the optimum level or not and how we can allocate resources differently to achieve better results. Thus, BI gives us good feedback using which we can strengthen the structure of our organization.

Therefore, the conclusion stands that investing in a BI solution will prove to be fruitful for business in the long run. If you are looking for a reliable BI tool then you can opt for a free trial of EasyReports which offers seamless integration with Tally.ERP9, SAP B1 and NAV among other business software and offers a feature rich dashboard too.
 

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