Impact of IT on Business: Advantages and Disadvantages of POS System

IMPACT OF IT
ON
BUSINESS
EXECUTIVE SUMMARY
This report is revolving around the technological development that has been made in retail
industry especially related to the use of POS systems. This system has been highly efficient

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for the business and has facilitated the firm to make sure that their sales and transactional data
is stored in a better way. This report presents the advantages and disadvantages that are
brought by POS system to the business. The benefits of using centralised database have also
been described along with the fact that how POS systems have facilitated decision making. It
also defines the manner in which POS systems helps in doing business process more
effectively as compared to manual methods. This report also presents the telecommunication
options that are available in the market for adoption of POS system. It also defines the risks
that are present in the POS systems.
Content

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s
Introduction...........................................................................................................................................3
Advantages and Disadvantages.............................................................................................................3
Competitive advantage provided by POS system..................................................................................4
Centralised database use benefits..........................................................................................................4
POS system facilitating in decision making...........................................................................................5
POS systems processes business activities more appropriately.........................................................5
Can information be tracked through manual ways in an effective manner........................................5
Type of questions that can be answered.............................................................................................5
Information used for appropriate business management....................................................................6
Telecommunication options available...................................................................................................6
Type of network................................................................................................................................6
Type of Media...................................................................................................................................6
Types of risk in POS systems............................................................................................................6
CONCLUSION.....................................................................................................................................7
RECOMMENDATIONS............................................................................................................................8
REFERENCES......................................................................................................................................9

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Introduction
Technology has facilitated retail firms to smoothen their work process (Falzone and Ciabarra,
Revel Systems Inc, 2012). In retail industry, there are various kinds of information that are
generated through different platforms. It is essential that organisation generates to incorporate
such technology that helps in the management of such data. Point of sale is one such device
that is used by organisations so as to manage the sales data. This report describes the various
aspects associated with the use of POS.
Advantages and Disadvantages
POS system has empowered the firms in many ways. It has brought both positive and
negatives with them. There are several advantages and disadvantages attached with POS
system. Some of advantages are as follows:
 POS system helps in maintenance and storage of data at the same time when the
products are sold (Duvall, et. al., 2012).
 It diminishes the probability regarding transactional errors.
 It shortens the operational time related to transactions.
 Problem related to data redundancy is eliminated.
 It helps in CRM practices as it alerts people regarding their sales transactions.
 Since data can be taken out from the system anytime hence better and real time
decisions can be made.
 It assures accountability and brings transparency in the sales procedures.
Disadvantages
 System maintenance is not an easy task and requires an IT professional for upgrading
the technology.
 Data piracy and security related threats are present.
 If the system gets hacked there can be loss to huge amount of data.
Competitive advantage provided by POS system
Having such a huge amount of operational benefits attached with POS system, it acts as a
value adder for the company (Weber and Bailey, Visa International Service Association,