Importance of IT in Modern Business

The assignment delves into the significance of Information Technology (IT) in contemporary business operations. It emphasizes the crucial role of IT in driving growth and efficiency, while highlighting the importance of POS system security to protect sensitive customer data. The discussion encompasses risk management strategies, including ensuring confidentiality, integrity, and availability of information.

Running Head: IT FOR BUISNESS
Name of the student-
Topic- IT For business
University name-

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Executive summary
Technology had gathered benefits for business with new equipment the organisations
remains modest and responsive in the competitive world. IT technology is designed to make
business more fruitful by providing more service in less time. POS is an example which is
discussed. Using updated technologies had helped businesses to grow and move ahead of the
competitors.

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Table of Contents
Executive summary...............................................................................................................................2
Introduction...........................................................................................................................................4
Answer to question no-1........................................................................................................................4
Answer to question no-2........................................................................................................................5
Answer to question no-3........................................................................................................................6
Answer to question no-4........................................................................................................................6
Answer to question no-5........................................................................................................................7
Answer to question no-6........................................................................................................................8
Recommendations.................................................................................................................................8
Conclusion.............................................................................................................................................8
References.............................................................................................................................................9

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Introduction
This report consists of detail of Point of sale (PoS). Moreover, it could be defined as
point of service as it not only deals with sales but with customer returns and new orders. This
report is accompanied with the several points such as Point of sales, types of risks, security
issues in IT systems, types of telecommunication network and technology.
Answer to question no-1.
Point of sale (PoS) also stated as point of service as it not only deals with sales but
with customer returns and new orders. Industries are gradually adopting POS system as it has
eliminated the need of tracking sales manually. It’s the central component of businesses for
instance it allows merchants to simplify day-to-day business operations.
Advantages of POS system
 It saves time as possessions can be done automatically instead of doing manual operations so
it reduces human errors in the long stretch.
 Deployment of system is easy it also increases the efficiency of the system and reduces data
duplications.
 POS system helps to manage and keep track of all inventories in real time consequently
reducing paper work by automatically generation reports.
 It monitors sales record and shows the alert about daily transactions or when stock is running
low which helps to plan new strategies for growth.
 It is flexible for customers as Customer Relationship Management (CRM) provides ease to
trail the record of single or multiple customers and look up past transactions.
 POS system offers customers more detailed receipts at time of purchase.
 It saves money as repair and maintenance costs are much lower compared to the old system.
 It reduces the labour as the accounting processes is simplified and does not require
accountant to maintain transactions.
 It enhanced the ordering system so that customers never run out with hottest deals, this is
more comfortable than old fashioned system.
 POS is more sophisticated and accurate method for providing service.
Disadvantages of POS system

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 Via POS system one is completely relying on the software that runs on the network thus
software need to be updated on a regular basis. It also requires maintenance fees additional to
initial setup.
 Security risks are high in POS system if the system is not updated on time or updated
incorrectly, security fissures can occur.
 Web based POS system entirely count on reliable internet connection and ISP, if in case there
is an internet outage access to system is impossible.
 Hardware failures are difficult to fix as well as it is time consuming troubleshooting the
hardware defect.
Answer to question no-2.
Competitive advantage is a unique advantage that company has which allows it to gain higher
sales volume and fascinating more customers. POS system helps the business to advance
competitive advantages by providing customer satisfaction and it differentiates the business
from other competitors in market that are offering the same services or goods. It provides
detailed reports about what products are lagging in sales so that one can implement
innovative marketing strategies to lift sales in the market (Manwani, 2010). It generates deals
report on timely basis so that decisions can be taken faster for customer service and
transactions are also processed more rapidly hence customers don’t need to wait for a long
time like others.
With the fast growing technologies where everyone expect quick response, POS offers
online payment experience to customer for better shopping experience and exceeds
customer’s expectations by central CRM which allows two way communication from
anywhere, anytime. POS segregates business from other competitive business by becoming
more dynamic and responds to requests and opportunities with excessive efficiency and
speed. If in case one tries to expand the business in future POS offers lower upfront cost
(B2C, 2018).
As per the case study, Four Seasons Greenhouse and Nursery by using POS, eliminated
tracking sales manually and allowed owners to track the sales data instantly at the time of the
sale, reduced labour expenses and gained popularity in competitive world with excessive
efficiency.

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Answer to question no-3.
Centralized database system is a collection of all logically related databases at one
single location. Centralized database is used to improve the performance and processing
efficiency of data.
Advantages of Centralized database (Retail Tech Inc., 2018) :
 Data Security: Data assets of an organization are kept confidential and integrated and made
available only to authenticated user who has appropriate access of control. It also resolves the
problem of data replication.
 Data Sharing: Data can be shared to multiple sites easily as data is not scattered at multiple
locations.
 Data Recovery: In case of server failure, data can be recovered as backups are done on
regular basis. The backup of main (only) server is maintained but in case of failure of backup
it creates problem.
 Data Integrity: As the data is stored at sole location no piece of data is repeated and when
the change is necessary, data need to be looked and updated at one place.
 Reduces costs: Centralized database cuts overall cost as maintenance of single server is less
costly than maintenance of multiple servers. Similarly, decreases overall space requirements
for data storage.
 Reliable: Centralized database facilities higher quality which is significantly more consistent
than local storage.
 Centralized databases are easier to maintain, manage and offer high degree of control.
 Data is independent from any application and can be used from anywhere, anytime.
 Writing new application is easy as data is not scattered at different places hence it can be
retrieved instantly and can be accessed from anywhere in the world.
Answer to question no-4.
Information can be tracked manually but it is very time consuming and complex process.
Tracking the information manually decreases the efficiency as transactions are not updated
instantly and number of accountants need to hired and checking the past transaction manually
is a difficult job (Armentrout, Hargett and Maximilien, 2011).
Automation of sales reporting helps in analysing the scenario deeply and taking resolution
accordingly. POS system provides proper alerts when the availability of a product is low,

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service which is in demand which keeps in decision making for the betterment of an
organization (SolutionDots, 2014).
Therefore, using POS system is very effective for business activities it reduces paper work,
saves time and efforts, makes better customer relations, tracks and manages the system within
minutes.
Answer to question no-5.
POS system require telecommunication network for exchange of information between
communicating parties. For transmission of messages, signals or information we need links.
Some telecommunication networks that can be used with POS system are:
 LAN (Local Area Network) - It is a group of computers of same organization and is linked
within a same network area. Data transferring speed is around 10Mbps. It can reach around
1000 users. Data transferring speed is around 10Mbps. It can reach around 1000 users. These
are managed, owned, and controlled by a single organization.
 WAN (Wide Area Network) – This connects several LANs to one other through a network.
Data transferring speed is depends upon the cost of connection which depends on the distance
of router. These are owned, managed, and controlled by distributed ownership.
 MAN (Metropolitan Area Network) – It connects all the nearby LANs to one other and
operates at high speed. It only lets two nodes communicate at a time. These are operated
managed, and controlled by government bodies.
Telecommunication technologies comprises of wired and wireless technology. Wired
technology is the communication between devices by cables where communication in
wireless technology is done without cables, transmission occurs over radio waves. Advantage
of over wireless network is mobility and freedom to move and work but it comprises in terms
of speed and security of data. Wired networks are difficult to install and increasing copper
thefts have also supported the use of wireless network (Lifewire, 2018). Though the cost of
transmission is high in wireless network but it covers more area for communication. Wireless
systems are comparatively maintenance-free as they are easily maintained compared to wired
network which require replacement of entire cable wires.

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Answer to question no-6.
POS need to be secured as it stores all the important information related to card
numbers, email address private data of an individual. As POS technology is flexible which
allows running on any OS such as Windows, Linux, or Unix that’s why flaws can be easily
inherited. System offer various risks like third party gains access to information by hacking
of data, create bombing and using confidential information of users (Gomzin, 2014). Risk
management is a process which allows user to take imperative decisions to avoid possible
threats. This can be done by applying reasonable controls like
Privacy is required to be kept in the collected data (confidential). Therefore, it should be
decided who can read, write or modify the data and assures that personal information are
processed fairly. Like logging the information should be secured, while scanning credit cards
the data should be reserved and properly decided what information can go where.
Security of information is very essential part for keeping the information safe in business
organization. Organization relies on the data preserved online. It involves protecting the data
and keeping the information confidential, available and integrated by properly encrypting the
data and ensuring that users are authenticated.
Confidentiality is preventing use of data from unauthorised user. In IT word, there are
several vulnerable threats which can cause serious damage or significant loss of information
as unauthorized user tries to gather information which can be misused and leads to business
disruption.
Recommendations
In today’s era, for better growth and development individual should be updated to
latest tools and technologies so that they can grow their business rapidly and provide
flexibility to customers.
Conclusion
IT has transformed the method companies are using to conduct business. Using
automated and updated technologies has provided great enhancement in companies’ growth.
It has allowed firms to increase their efficiency and effectiveness.
References
Armentrout, G.H., Do, P.K., Hargett Jr, B.R. and Maximilien, E.M., 2011, Method for more
efficiently managing complex payloads in a point of sale system. U.S. Patent.

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B2C, 2018 , The Importance of Information Technology In Business Today,viewed 24
January,<https://www.business2community.com/tech-gadgets/importance-information-
technology-business-today-01393380>.
Gomzin, S 2014, Hacking Point of Sale: Payment Application Secrets, Threats, and
Solutions, John Wiley & Sons.
Lifewire, 2018, Kinds of Area Networks, viewed 24 January, <
https://www.lifewire.com/lans-wans-and-other-area-networks-817376>.
Manwani, S 2010, IT-Enabled Buisness Change, BCS Learning & Development Limited.
Retail Tech Inc., 2018, Benefits of Using a Point of Sale (POS) System, viewed 24 January, <
https://retailtechinc.com/techtopicks/top-10-benefits-of-using-a-point-of-sale-pos-system/>.
SolutionDots, 2014 , Top 25 Advantages of Point of Sale System ,viewed 24 January, <
https://solutiondots.com/blog/point-of-sale-system.html>.
Szell, M., Lambiotte, R. and Thurner, S., 2010. Multirelational organization of large-scale
social networks in an online world. Proceedings of the National Academy of
Sciences, 107(31), pp.13636-13641.

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