Advantages and Disadvantages of Point of Sale System for Businesses

IT for business

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Table of Contents
Introduction...........................................................................................................................................2
Advantages and Disadvantages.............................................................................................................2
POS system helps in gaining competitive advantage.............................................................................3
Benefits of using centralized database...................................................................................................3
Decision making using point of sale system..........................................................................................3
Point of sale process business effectively..........................................................................................3
Tracking information through PoS is better than manual methods........................................................3
Type of questions that could be answered.............................................................................................4
Data collected via Pos system................................................................................................................4
Telecommunication option in POS........................................................................................................4
Type of network....................................................................................................................................4
Type of media........................................................................................................................................4
Risk associated with point of sale system..............................................................................................4
Conclusion.............................................................................................................................................6
References.............................................................................................................................................7

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Introduction
The limelight of this report is based on the case study of Bloomberg. The focus on
this report will be done on point of sale and its advantages and disadvantages has been
analysed. The benefits of using POs help in gaining competitive advantage. It also helps in
making the business work effectively. Apart from that there are various telecommunication
media and type of media is available that can be selected on the size of business.
Advantages and Disadvantages
Point of sale is an arrangement of software’s and hardware’s that is used for making
the business operations work effectively. It takes care of all the transactions that happen in a
business (Edwards, Skoog, Babu & Dorogusker, 2016). It has replaced the old traditional
methods that required lot of human efforts. There are various advantages and disadvantages
offered by point of sale system.
Advantage
Point of sale system helps in storing the information of all the instant transactions related to
sale in the system. They allow companies to store their data packets in less space and also
provide ways to store distribute and keep track of all the transactions. Point of sale helps in
evaluating many important transactions that take place in a business (Dorsey, Henderson,
Grassadonia, McKelvey & Wen, 2017). The information analysed helps in assisting the sales
of product. Point of sale help is a flexible approach as they provide automatic generated
reports and removes the human efforts. The history of sale can be gathered to manage the
present transactions. The deployment of system is easy and it also resolves the issue of data
replication. The sale is monitored regularly thus also enhance the relation among customers.
The maintenance and labour cost is very low as all the operations are completed
automatically. It has made the working of businesses easy by making all the work automatic
Disadvantages
It makes the business completely dependent on the system, so in case of failure of the system
it might be huge loss to the business. It requires regular update otherwise it might lead to
security issues. Some of the organisation work on web based point of sale system but it
requires an internet connection to stay connected to the system. The customers might not
access to the system if they do not have an internet connection. At time of hardware failure it
requires at IT expert (Cunningham, et. al, 2015). The input and sale of a business increases
day by day thus it is necessary to keep a backup and update the system on regular basis. The
point of sale system also suffers from chances of hacking as well as leakage of information.
Sometimes the information is transferred to the invalid users (Cunningham, et. al, 2015).