MIS vs Business Intelligence (BI)

A management information system (MIS) in simple terms is a system where all the organizational data and system data is collected on a historical basis. It can be present as a data warehouse that gathers data from different sources on a continuous basis.

The objective is to obtain customized reports from the system based on requirements of managers. The main purpose of the MIS is to give managers feedback about their own performance; so that top management can monitor the company as a whole. Information displayed by the MIS typically shows “actual” data over against “planned” results and results from a year before; thus it measures progress against goals.

Also read What is Business Analytics

Business Intelligence (BI) covers all the processes from the source data to the final reporting. From that perspective, MIS is just a part of the whole BI framework. It encompasses data staging, data warehouse, reporting tools etc.

  • Source data: These are different datasources and transactional system where data is captured across the organization. It can be CRM, ERP or other operational systems to capture day to day transactions.
  • Storing data in operational data store: Day to day data from transactions that are carried out by various departments are stored in local databases which serve the purpose of a department or a part of the whole organization. These are also known as transactional databases.
  • Data Warehouse: Consolidating data from different departments in a data warehouse that can serve as a central data repository for the organization. It also checks the completeness of data and consistency between sources
  • Reporting: Consolidated data is presented to the management in the form of reports so that they can gain understanding of the current state of business.
  • In terms of reporting the data to the management BI is an advanced process of reporting which is applies more analytics and visualization techniques over the data for easy consumption of the users.

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