Impact of IT on Business

This report analyzes the impact of IT in business with regards to a point of sale system (POS). It explores the benefits and drawbacks of POS system, gaining a competitive advantage, advantages of a centralized database, POS system and decision making, telecommunication options, and risks of the POS system.

Running head: I.T. FOR BUSINESS 1
Impact of IT on Business
[Name]
[Academic Institution]
[Author Note]
[Class]
[Professor]
August 29, 2024

I.T. FOR BUSINESS 2
Executive Summary
Information systems improve the state of business by introducing the benefits of
information technology into commerce activities. Essentially, enterprise operations, from the
inventory to sales are accurately managed by a modern technological process. Furthermore,
because of the benefits of differentiation and innovation, an organization gains a considerable
competitive advantage. As such, this paper explores information systems with regards to
business where the various elements and parameters are analyzed.

I.T. FOR BUSINESS 3
Table of Contents
Content Page
Introduction....................................................................................................................................4
Benefits and Drawbacks of POS System.....................................................................................4
Gaining a Competitive Advantage...............................................................................................5
Advantages of a Centralized Database........................................................................................5
POS system and Decision Making..............................................................................................6
Telecommunication Options........................................................................................................7
Risks of the POS system..............................................................................................................8
Conclusion......................................................................................................................................9
References.....................................................................................................................................10

I.T. FOR BUSINESS 4
Introduction
Information technology in its diverse forms is rapidly changing the world. Today,
organizations are adapting their functions, management and leadership styles to align with those
of technology. In return, these institutions are becoming more efficient as they can meet all the
demands of the consumers effectively based on their immediate needs. As such, IT has become
an integral part of business as it facilitates all the major operations of commerce from
transactions to organizing inventory. Furthermore, through the affiliated systems of information
systems and electronic trade, enterprises increase their market share beyond the physical world.
Essentially, the digital market extends their reach which increases their profit margins. Similarly,
at hand is a business whose application of IT resources has resulted in substantial improvements.
Through these services, Four Seasons has effectively managed its employees, inventory and
increased its competitive advantages. As such, this report analyses the impact of IT in business
with regards to a point of sale system (POS).
Benefits and Drawbacks of POS System
Data manageability is the foremost advantages of the POS system as it collects, processes
and store information. Moreover, through the functional capabilities of this information system,
the business catalog its resources from purchases (supplies) to discards. Primarily, this advantage
is facilitated by the robust operations of the system that allow it to input, track and distribute raw
data (Barros, Ishikiriyama, Peres & Gomes, 2015). This data then forms the basis of all the
decisions made by Four Seasons who now do not use intuition in their activities but factual
results, results that extended the owners knowledge of the business.
On the other hand, the same resources also introduce several drawbacks, most of which
are related to the security and privacy of data. For one, information is made readily available to

I.T. FOR BUSINESS 5
multiple parties such as the employees and customers. This availability makes it susceptible to
leakage through its distribution (Dutta, 2017). Moreover, as a centralized resource, it introduces
a single point of failure, which when exploited can immediately shut down the organization.
Gaining a Competitive Advantage
In economics, a business gains a competitive advantage when it accesses items or
resources that are unavailable to other enterprises. Furthermore, the same organization extends
this edge when it efficiently uses certain resources such as those of IT. Four Seasons Greenhouse
and Nursery first advantage is met by it having introduced an information system. This actions
not only boosts it managerial functions but also extends its customer outreach programs (Lea,
2005). Therefore, the integration with the end consumer improves which facilitates better
business as compared to the competition which uses manual means to engage them.
In addition to this, the POS system revolutionizes the cost of operations as all financial
activities are based on its analysis. Consider the supplies which can now be acquired based on
their returns to the business. A similar benefit is seen with employees and sales which are
transformed to meet the immediate needs of the organization (Xu & Quaddus, 2013). Moreover,
with the POS system, a diverse and differentiated feature is developed which manages resources
as well as boost innovation. In all, the diversification, differentiation, and innovation of resources
raise the company’s competitive edge.
Advantages of a Centralized Database
A centralized database means a central storage system is used to store data. Therefore, all
the information regarding a business is found in one location, from employees’ info to
customers’ orders. This outlook is different from a decentralized database where different
storages are used to manage data. Now, the single most important benefit of a centralized system

I.T. FOR BUSINESS 6
is the control or manageability. Thus, with a centralized database, the users can control all the
database’s resources (Linx, 2016). The same feature also extends the integrity of data as few
redundant instances are introduced to the stored information. Consequently, this improves the
system’s security as all its features are accounted for at any given time.
POS system and Decision Making
Accurate decisions require credible foundations which are often given by information.
Thus, data forms the basis of good managerial decisions as they enable a business take steps in
the right direction based on factual results and not guesswork. Furthermore, through the
functional capabilities of information systems, organizations can predict future outcomes thus
make better decisions.
Processing business activities: The POS system acts as a central resource for managing
data thus determine all the actions taken. This data is used to make various projection and
scenarios that predict future outcomes. Therefore, through this system business activities are
processed effectively based on the data (Nordmeyer, 2018). An example is given by report
simulations that help managers make decisions using digital roadmaps.
Tracking information manually: It is feasible to track data manually where people can
catalog all the items used. However, this process is extremely tedious and is vulnerable to errors
as it is governed by the human perception/thinking. Thus, while it may seem easy at first, its
extended limitations introduces various drawbacks. Furthermore, it is a time-consuming process
because it requires the physical assessment of each variable, an action that is often done by hand.
At the same time, the security of the process is never assured as its functionality requires
multiple workers, people who have different operation standards thus do not guarantee the

I.T. FOR BUSINESS 7
integrity of the activities performed. Thus, while manual tracking of information is possible it is
not an effective process.
Question answered: As stated before, decision making is all about the information
collected. This information helps an entity answer various questions which extend its
functionalities. In this case, questions regarding inventory are answered such as the most
profitable plants' supplies. The same solutions are also given for sales where the most profitable
product is easily identified (MBA, 2018). Moreover, the employees and their most effective
working hours are discovered which enable the business to adjust its timeline to fit the demand.
Information for management: Information provides Four Seasons with a variable pool
of knowledge that includes customers’ requests and the market environment. This resource thus
acts as the guide to all of the actions taken by the business. Furthermore, it extends the
organization’s experience which facilitates the managerial roles of the enterprise.
Telecommunication Options
An assessment is needed to identify the major functions of the POS system. These
functions are the defining factors that determine the telecommunication facilities that implement
the system at hand. Now a general analysis can reveal the following: One, the POS system is
meant to enhance the company’s market engagement through the customers. Two, the POS
system is also supposed to increase the efficiency of all business activities more so, the in-house
functionalities. As such, the network and media technologies chosen should support these
requirements.
Types of Networks: Starting with the needs of the customers who require access to the
company’s resource in any given location. Therefore, a wide area network (WAN) is needed to
support the external activities. This network as facilitated by the functional protocols of IP

I.T. FOR BUSINESS 8
(Internet Protocol) and TCP/IP would extend Four Season’s resources to the worldwide web.
Furthermore, this connection would also serve as a variable source of information to be used by
the company in its engagement (Vlajic, 2010). On its behalf, the business’ in-house activities
would be based on a localized network, which is a local area network (LAN). LANs connect
electronic devices within short distances or boundaries, a concept that defines the current needs
of Four Seasons. Thus, a combination of both LAN and WAN would serve the
telecommunication requirements for the POS system.
Type of Media: Both wired and wireless medium must be used to connect the facilities of
the POS system. The wired options offer better security, bandwidth and speed thus can perform
the complex functionalities within the organization. A simple DSL (Digital Subscriber Lines)
connection can serve this purpose having a copper physical medium (Sharma, 2018). On the
other hand, the wireless technology can use Wi-Fi as outlined in the 802.11 standards. This
technology would use radio frequencies to send and receive information, a process that would
require minimal resources and time. Primarily, access points (AP) would serve the major
structural (physical) systems for this technology, otherwise, all other elements would be based on
electromagnetic waves.
Risks of the POS system
Two attributes of the POS system outline the risks involved; its extensive access to data
and the flow of information across its different channels. These characteristics are facilitated by
the different functionalities involved such as data collection, analysis, tracking, and storage.
Therefore, by default, this information system can access a wide range of resources starting with
the employees’ records and end with the customers’ data. Such data can include financial
statements and locations which when leaked to the public would not only compromise the

I.T. FOR BUSINESS 9
privacy of the users but their security as well (Hersh, 2013). Furthermore, with a public system
(accessed by open channels e.g. the internet) the confidentiality of data is never guaranteed as
multiple parties engage with it notwithstanding cyber intrusions as perpetrated by black hats.
Mitigations: A holistic approach is required to meet the needs of security, privacy, and
confidentiality of the data involved. This process would require a security policy that would
outline all the major functionalities of the systems, starting with a continuous assessment that
would regularly evaluate the security procedures put in place. Furthermore, the same policy
would outline the roles of the users in maintaining these three elements, from the level of
disclosure to the access given (Peled, 2004). Finally, extended security resources such as
firewalls, intrusion detection system (IDS) and anti-malware software would be used to secure
the POS system.
Conclusion
Information technology offers extensive benefits to business, from competitive
advantages to efficient methods of running operations. While in the past these functionalities
were seen as a supplementary item for business, they are now a mandatory feature that results in
failure when not used. For Four Seasons Greenhouse and Nursery, IT has improved its
commercial activities by improving its customer engagement, inventory support, and employee
management. These benefits, in general, have helped raise the company’s position against its
rival which defines the competitive edge attained. Therefore, by subscribing to an information
system, an enterprise can achieve better profits margins while maintaining a low operational
cost, which is the general rule for a business.

I.T. FOR BUSINESS 10
References
Barros, A., Ishikiriyama, C., Peres, R & Gomes, C. (2015). Processes and benefits of the
application of information technology in supply chain management: an analysis of the
literature. Information Technology and Quantitative Management, 55, pp. 698-705.
Retrieved 21 May, 2018, from:
https://www.sciencedirect.com/science/article/pii/S1877050915015525/pdf?
md5=8fc75a69c53491202399dc826767f676&pid=1-s2.0-S1877050915015525-main.pdf
Dutta, P. (2017). Advantages & disadvantages of information management systems. Pocket
Pence. Retrieved 21 May, 2018, from: https://www.pocketpence.co.uk/advantages-
disadvantages-information-management-systems-5494879.html
Hersh, W. (2013). Privacy, Confidentiality, and Security: Basic Concepts. Oregon Health and
Science University. Retrieved 21 May, 2018, from:
http://www.oerafrica.org/FTPFolder/Website%20Materials/Health/HiBBS/
SecurityPrivacyConfidentiality/PrivacySecurity.pdf
Lea, B. (2005). Leveraging Information Technology to Gain Competitive Advantage: A Case
Study on General Electric Consumer Products. Journal of International Information
Management, 14(1), pp. 25-37. Retrieved 21 May, 2018, from:
http://citeseerx.ist.psu.edu/viewdoc/download?
doi=10.1.1.679.6316&rep=rep1&type=pdf.
Linx. (2016). The One: 5 Benefits of committing to a single, centralized database. Central
Intelligence. Retrieved 21 May, 2018, from: http://www.linx.com/one-5-benefits-
committing-single-centralized-database/

I.T. FOR BUSINESS 11
MBA. (2018). Information System Activities. MBA Knowledge Base. Retrieved 21 May, 2018,
from: https://www.mbaknol.com/management-information-systems/information-system-
activities/
Nordmeyer, B. (2018). Types of Information Systems in a Business Organization. Chron.
Retrieved 21 May, 2018, from: http://smallbusiness.chron.com/types-information-
systems-business-organization-66974.html
Peled, A. (2004). Five steps your company can take to keep information private. Computer
World. Retrieved 21 May, 2018, from:
https://www.computerworld.com/article/2563307/security0/five-steps-your-company-
can-take-to-keep-information-private.html
Sharma, A. (2018). Wired vs. Wireless Technologies for Communication Networks in Utility
Markets. Utility Products. Retrieved 21 May, 2018, from:
https://www.utilityproducts.com/articles/print/volume-16/issue-04/product-focus/
transmission-distribution/wired-vs-wireless-technologies-for-communication-networks-
in-utility-markets.html
Vlajic, N. (2010). Computer Networks: LANs, WANs the Internet. History of Computers.
Retrieved 21 May, 2018, from:
https://www.eecs.yorku.ca/course_archive/2010-11/F/3213/CSE3213_02_PacketSwitchi
ng_F2010.pdf.
Xu, J & Quaddus, M. (2013). Information Systems for Competitive Advantages. Managing
Information Systems. Retrieved 21 May, 2018, from:
https://www.springer.com/cda/content/document/cda_downloaddocument/
9789491216886-c2.pdf?SGWID=0-0-45-1373647-p174839874