Exploring the Benefits and Risks of POS Systems: A Comprehensive Analysis

IT write up

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EXECUTIVE SUMMARY
POS systems is the need of the modern day transactional processing and accounting. This
report analyses different aspects related to use of POS systems. This includes analysis of
advantages and disadvantages of using point of sale systems. It also describes about the
efficiency of that POS system in making a better decision making process. It also explains the
reasons why centralised database system is better in management of information. There are
many telecommunication options available with the small scale firms. This report suggests
about all the telecommunication options available with the firm and the reason why they are
effective. At last it gives the risks that are attached with the use of POS systems.

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Content
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INTRODUCTION.................................................................................................................................2
Benefits and Demerits of using Point of Sale........................................................................................2
Competitive advantage provided by POS system..................................................................................3
Advantages of centralised database.......................................................................................................3
POS system improves decision making.................................................................................................4
POS systems processes business operations efficiently.....................................................................4
Effectiveness of the manual tracking.................................................................................................5
Questions that can be answered.........................................................................................................5
Better business management..............................................................................................................5
Telecommunication option available.....................................................................................................5
Network type.....................................................................................................................................5
Media types.......................................................................................................................................6
Risk of POS systems.............................................................................................................................6
CONCLUSION.....................................................................................................................................6
REFERENCES......................................................................................................................................7

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INTRODUCTION
Modern day business has taken the routes of technology and in this the idea of success lies in
the way technology is used within the organisation and its various procedures. They not only
helps in managing the sales accounts but also helps in collection of data that could be used
for other types of procedures (Khodakarami and Chan, 2014). Today most of the companies
have installed POS systems for managing their transaction processing system. This report
analyses different aspects of the POS systems and its impact on the business.
Benefits and Demerits of using Point of Sale
There are long ranging benefits and demerits associated with Point of sale system. In regards
to Four Seasons Greenhouse and Nursery the benefits and demerits of POS systems are as
follows:
Advantages
 POS system is helpful in accumulation of essential data especially the ones that are
related to sales and transactions. This can be done on real time basis.
 In the customer relationship management also POS systems are helpful as it alerts
people whenever the transaction is made. At the same time it makes the billing system
faster which reduces the frustration of people (Wang and Xue, 2014).
 More real time data can be received hence making the decision making process faster
especially the ones that are made for any specific period of time.
 It ensures that no transactional errors happen due to human faults.
 In accounts data redundancy can be a serious problem which is removed by the use of
POS systems.
 It brings transparency and accountability to the transactional process.
Disadvantages
 Since POS systems are attached with internet technology hence the chances of data
leaks and security issues exist.
 Maintaining information system is not a smooth task and requires IT professionals for
its maintenance.