Difference Between ERP and DSS
In business, managers see information as power in their hands. With the advent of IT administration systems (MIS), managers were better able to make correct decisions based on information included. ERP and DSS are two computer systems commonly done with a lot of similarities and also have almost same goals. Yet there are differences that will be highlighted in this article for the benefit of Managers.
It is obvious that managers can make better decisions at the time just when armed with complete information that when they have inaccurate or incomplete information on the organization. In any large company, a huge amount of data is produced with sales, inventories and the number of clients with the current amount of time. All this information must be categorized systematically in order to be useful for decision makers. The use of computers is very helpful in this effort as it breaks down data and compiles summary information on the basis that it is easy for managers to make decisions in real time.
ERP is the Enterprise Resource Planning. This is the software that tries to integrate all the information on both external and internal departments of an organization with the goal to admit that the free flow of information between the accounting, finance, marketing, manufacturing and so by directing the same time information on the client portrays and preferences as well. While in the first period further, ERP has focused on back office functions and data pertaining to customers was left to the administration of customer relationship to get by. Yet in its latest models as ERP II, functions have been integrated ERP and has come up as a successful means of tackling the difficulty of integration of information within an organization. An effective ERP system, if installed properly can help in tracking and improved forecasts. It can cause improved efficiency, performance and productivity levels. ERP helps in better customer service and satisfaction.
DSS is termed as system decision support that relies on information generated by computer with the intention of assisting in the process of decision making. The main role is during planning and operations when the decisions keep changing constantly and it is difficult to expect in advance. Few cases where DSS is useful in medical diagnosis are by examining loan applications, offering a process engineering company and so on. DSS is taken advantage of the heavy in many industries and has proven to be very successful for the administration in the taking of appropriate decisions. DSS may be the model leads, communications lines, data lines, the paper leads or driving knowledge. DSS are used to collect data, develop and analyze and make sound decisions or strategies for the construction of this analysis. Although computers and AI are using, it is eventually that formulates the data into usable approach.
In large companies, it is common practice to have a MIS that benefits both ERP as DSS by integrating to obtain the best results possible.