POS Systems for Small Businesses: Advantages, Disadvantages, and Recommendations

Information technologies for business

POS SYSTEM
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Table of Contents
Introduction...........................................................................................................................................2
Advantages and disadvantages of the POS system................................................................................2
Advantages........................................................................................................................................2
Disadvantages of the POS system......................................................................................................3
Role of POS system in business to gain the competitive benefits..........................................................3
The benefit of having a centralized database........................................................................................4
How could the POS system facilitate the decision-making process.......................................................4
Recommend telecommunication options for POS system.....................................................................5
Risks associated with the POS system ..................................................................................................6
Conclusion.............................................................................................................................................6
References.............................................................................................................................................7

POS SYSTEM
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Introduction
According to the given scenario, the information technology required the information
technologies in order to improve their performance. However, small business industries
do not have sources and expertise to design and develop information technology
strategies. The small nurseries are not able to control and manage the operational data
more effectively for which they adopted the point of sale technique. This report
objective is to analyze the importance of the POS system with their advantages and
disadvantages and how this method help for developing a better decision-making
approach. This report divided into five parts such as benefits and drawbacks of POS,
role of POS system in the business, benefits if having a centralised database, and
recommendation for the POS system, security risks associated with the POS.
Advantages and disadvantages of the POS system
Advantages
The nursery and small business industries utilized the manual process in order to track
and monitor their inventory and identify which product was realized the most profit. In
this modern ear, the point of sale is an advanced technology that allows companies to
track the data and information from the sales transactions in less time. This technique is
more effective rather than the manual process by which small business sectors and
nursery can control and monitor the company’s inventory (Seo, and La Paz, 2008). It is
observed that the POS system help SME and nursery to reduce the operating time and
enhance the efficiency of their resources. By using this process nursery and other small
sectors can increase their trust quotient amongst the supplier, and consumers. The
main advantage of the POS system is that it saves time as it allows entering of the sale
transaction data straight away during the sale (Boukerche, et al., 2008).
During the manual process data entering and collecting require more time but POS
system reduced this drawback and improve the performance of the system. One other
major attribute of this technique is that it delivers better performance for entering,
controlling and tracking data or information for a few useful business tasks. Such kind
of technology also decreases the tedious task of the guesswork to evaluate how much
stokes should be ordered (Paynter, and Edwards, 2009). It has the ability to produce the