Effect Of Technology On Businesses (Doc)

EFFECT OF TECHNOLOGY ON BUSINESSES
Executive Summary
The Point of Sale transactions that are cashless and machines in the experience of
shopping today, form an integral part. The machines of POS provide the opportunity for the
customer to swipe their cards of debit or credit, key in the total money needed for the payment
and then electronically make the payment in just a few seconds after sending the transaction to
be authorized. On the other hand, the number of the account may be typed and after its approved,
the client is able to receive and then sign the provided receipt. In summary, the machines of the
POS enable organizations or businesses to a great extent save a lot in terms of time and cost and
also enables the business transactions to become more efficient.

Table of Contents
Introduction.................................................................................................................. 3
Benefits and limitations of the POS.................................................................................... 3
The POS Competitive Advantage...................................................................................... 4
Centralized database Advantage....................................................................................... 5
POS Making of Decisions................................................................................................. 6
Telecommunication......................................................................................................... 6
Risks that come with the use of POS................................................................................... 6
Conclusion.................................................................................................................... 7
References.................................................................................................................... 8

Introduction
The POS (Point of Sale) systems in small businesses are mainly just registers of cash
which are sophisticated. In 1970s, cash registers operated through a computer tended to become
very popular and then started to give features such as the technology of the client-server,
communications of peer-to-peer access that was remote and backups. Nowadays, the POS
systems have standardized in the industry of hospitality and many businesses of retail level have
customized the same. The systems of POS can be connected with the account of the merchant
and they enable easy and quick acceptance of the transactions of the credit cards by the
business. Since the systems of the POS have the ability to immediately process transactions as
they happen, the business is able to enjoy increased efficiency of the employee, better and more
accurate keeping of records. The systems of POS are specific to the industries and it’s possible to
customize them.
Benefits and limitations of the POS
Many businesses use the system of POS for various reasons which include efficiency.
The system of POS that is right POS system may enable to get rid of any errors caused by human
that may occur during the processing of transactions carried out by the employees. The system of
POS stores information in a single place and well organized hence reducing the errors which
leads to the processing that is fast and efficient. (Reeder, K.R., 2014)
Another benefit is simplifying information recording. This happens because the system of
POS standardizes the transactions format. The storage of transactions is done on a computer that
is central and when required they can be printed reducing any wastage that may occur.
Also, a POS system may be designed in such a way that it records each and every detail
regarding a transaction, that is; the employee who carried out the task, total amount of the sales,
services or items purchased, date and time of the transaction. This can be very useful when it
comes to decision making.
The system of POS also helps in saving money to a great extent. Better track keeping of
the inventory, making decisions that are more informed and saving time of the employees are
very good ways that help in saving money and cutting the overall cost.