Impact of IT on Business Assignment (Doc)
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Added on 2020-10-23
Impact of IT on Business Assignment (Doc)
Added on 2020-10-23
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IMPACT OF IT ONBUSINESS
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1MAIN BODY..................................................................................................................................11.What are the advantages and disadvantages of the new POS system.......................................12. How will this POS system help the business gain competitive advantages............................23. What are the advantages of having a centralized database......................................................34. How could this POS system facilitate decision making..........................................................45. Recommendations of telecommunication options for this POS system..................................56. What types of risks does the POS system bring and how to protect the business against theserisks..............................................................................................................................................6CONCLUSION................................................................................................................................7REFERENCES................................................................................................................................81
INTRODUCTIONInformation Technology (IT) is required by every types of business in any industry as itrenders new possibilities for developing or improving products and market activities. Advancedtechnology has transformed the ways of conducting business operations which enables smallbusinesses compete with larger organizations. The purpose of this report is to explain the impactthat IT have on Four Seasons Greenhouse and Nursery’s business and social exchange ofrelationships. The aim of this study is to investigate gains and drawbacks of introducing a newPoint of sale system (POS) to help business attain competitive advantages. The project will alsodiscuss benefits of having a centralized database, risks that new POS system may bring and waysto mitigate or protect business against them. MAIN BODY1.What are the advantages and disadvantages of the new POS systemPoint of sale (POS) is an electronic software system which streamlines retail operationsby programming transaction process and stalking important sales data (Andriole, 2010). It is thelocation in a shop where a sale or transaction takes place. Four Seasons Greenhouse and Nursery,Colorado has implemented POS system in their inventory management to manage their $1Mbusiness operations. The identified benefits and drawbacks of new POS system are as follows:AdvantagesThe new POS system allows owners to track business data from sales transactionsinstantly at time of sale thereby eliminating need for manual tracking. Eliminates dependence on manual entry of sales transactions and reduction of inventoryunits for the sold items. The system stores and processes data from sales while updatingstock as well as accumulates a sales history. POS system provides more robust functionality in inputting, tracking and distributingdata to render necessary information to operate and manage the business (Aral,Dellarocas, and Godes, 2013). Accuracy of data maintained by POS helps in making decisions regarding inventorypurchases, operate leaner inventory units, provides details of transactions of inventoryitem such as units purchased, discarded and sold.Introduction of new POS system helps managers know about the business as it assists inreviewing of reports.2
POS system follows a detailed cost reporting by item which will help to understandproducts which contributed utmost profit to the operation.Illustration: Point of Sale (Source: Understanding the Point of Sale (POS), 2012)DisadvantagesAs POS is a web based software, there needs to be a continued and reliable internetconnection and ISP to maintain this system (Chen, Chiang and Storey, 2012). Regular updates need to be scheduled which requires ongoing maintenance fees to coverchanges and apprises to the system which is above the initial cost of setup.POS systems connectivity with store to a network comprises of several security risks orbreaches that might occur if the software is not kept up to date or updated incorrectly.Slow internet connection makes the software problematic. Malfunctions like errormessages, user error, system down etc. may disrupt the service.3
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