Business of IT: Advantages and Disadvantages of POS System

This report discusses the use of POS system and its advantages and disadvantages. It recommends the best network services and technologies to be used for better customer satisfaction. It also talks about the competitive advantage of POS system, centralize database advantages, POS decision making, telecommunication recommended for POS system, and risk and protection with POS system. The report concludes with recommendations for WAN network service and wireless technology for POS system.

Running head: BUSINESS OF IT
Business of IT
Name of student
Name of University
Author’s Note

1BUSINESS OF IT
Executive Summary
This background of the report is all about the use of the POS system and relating it to
traditional system that were manually used by the Four Seasons Greenhouse and Nursery. It has
recommended the best network services and technologies to be used for better customer
satisfaction.

2BUSINESS OF IT
Table of Contents
Introduction..........................................................................................................................3
Answer 1: Advantages and Disadvantages of POS system.................................................3
Advantages of POS:.........................................................................................................3
Disadvantages of POS.....................................................................................................4
Answer 2: POS system Completive Advantage..................................................................5
Answer 3: Centralize database advantages..........................................................................5
Answer 4: POS decision making.........................................................................................6
Answer 5: Telecommunication recommended for POS system..........................................6
Answer 6: Risk and Protection with POS system................................................................7
Conclusion...........................................................................................................................8
Recommendation.................................................................................................................8
Bibliography........................................................................................................................9

3BUSINESS OF IT
Introduction
This report gives brief information about the use of POS system. In the first section, it
describes the advantages and disadvantages of the POS system. The statistical data was shown in
manual transactions made on the traditional cash registry that has cause some mistakes for every
300 characters and in the POS system for every 15,000 to almost 36 trillion characters of barcode
scanned only few or one error found. Some of the competitive advantages has gain by the
organization. In the final discussion, with the use of POS system what risk has arise and how to
protect them.
Answer 1: Advantages and Disadvantages of POS system
Advantages of POS:
Improved Efficiency: According to the statistical data, manual transactions made on
the traditional cash registry has cause some mistakes with the type of every 300 characters and in
the POS system for every 15,000 to almost 36 trillion characters of barcode scanned only few or
one error found1. Further, data input for an item in the traditional cash registry system takes an
estimation of up to 6 seconds whereas using barcode reader of the POS system takes less or just
0.3 seconds. Thus, POS system makes the process of transaction easier, faster and with efficient
turnover. With just a click, the user could rectify the error or the mistakes by the POS system.
Thus, this offers a better service to the customer with a friendly calm face2.
1 Ľubica Ilkovičová, Ján Erdélyi and Alojz Kopáčik, 'Barcode Based Localization System
In Indoor Environment' (2014) 13 Geoinformatics FCE CTU.
2 Helwen Heri, 'Analysis The Effect Of Service Quality, Customers Value, Customer
Satisfaction And Customer Trust On Corporate Image' (2017) 19 IOSR Journal of Business and
Management.

4BUSINESS OF IT
Stock management: For any scale of business, traditional approach leads to time-
consuming process and it is laborious, work for the Four Seasons Greenhouse and Nursery.
However, with the modern use of the POS system, the stocks are scanned upon delivery and the
data are digitally entered into the database3. Thus, Four Seasons Greenhouse and Nursery can
make purchasing decisions accurately at a glance.
Accurate Reports: A merchant can understand the business overall success by
accessing the critical information of the report with the use of POS system4.
Employee Tracking: With the Unique Identification code, the Four Seasons
Greenhouse and Nursery are able to track the behavior of the staff particularly on the figure of
strong and weak sales and enable the merchants to take action against the weaker employees.
Disadvantages of POS
Web access cost: The additional advantage of the POS come with an additional cost.
The reason for this is that businesses do not go for software-based system rather wanted to have
web-based system as it Optimize the POS system.
Updates: Instead of investing, the cost for long-term return, businesses has to invest on
new version of software updates and the hardware updates from a software or manufacturing
company.
3 Werner Reinartz and Monika Imschloß, 'From Point Of Sale To Point Of Need: How
Digital Technology Is Transforming Retailing' (2017) 9 GfK Marketing Intelligence Review.
4 Samaneh Salehi Nasab and others, 'Critical Success Factors For Business Intelligence
System Implementation In Public Sector Organisation' (2017) 9 International Journal of
Information Systems and Change Management.

5BUSINESS OF IT
Risk in security: While making payment through debit card in POS system customers
PIN is at risk to get divulge to other customer. In addition, if the businesses have a web-based
POS system can run into a risk of asking the system widely accessible which results in danger5.
Answer 2: POS system Completive Advantage
The competitive advantages of POS system are6:
- The software always updated.
- The user gets access to unlimited support.
- Subscribers get ongoing education
- The upfront cost is lower when expanded
Answer 3: Centralize database advantages
With the use of a centralize POS system, retailers get a POS station at the property-level
of each location that are link to the central server. The corporate office then can get access to real
time reports. By centralizing the level of data, the businesses can start building the data that need
to complete. Even though the data are fairly gathered through POS system, retailer fined it
difficult get the transactional data into the information with action. Retailers get benefits from
the centralized system for the transaction of daily audit log that eliminate the need of data
analyzing and integrating it for multiple systems7. In addition to security, role-based security and
5 Courtney S. Baldwin, 'The Impact Of Web-Based Technology On Small Businesses'
(2015) 1 Business and Management Studies.
6 William F. Crittenden, Victoria L. Crittenden and Allison Pierpont, 'Trade Secrets:
Managerial Guidance For Competitive Advantage' (2015) 58 Business Horizons.
7 Fedir Hladkykh and Heorhii Stepaniuk, 'Modern Approaches To Continuous Audit In
The Pharmacovigilance System Vinnytsia Region: The Results Of 2016' (2017) 3 Path of
Science.

6BUSINESS OF IT
permissions maintains the access of the centralized system strengthening the financial oversight.
For a retailer connectivity is the key to extend the network system to integrate and standardize
the equipment. The same case is with the centralized database of the POS system. There are
many other advantages for the POS system to get a centralize database for data processing speed,
connectivity and compliance.
Answer 4: POS decision making
By the use of POS system, the businesses can analyze the sales data and figure out the
item and adjust the level of purchasing. The authorization of the credit card and the bar-code
scanners will improve the accuracy of the pricing through the POS system8. The POS system
work as an all-in-one business cash flow to keep the track. POS system software keeps the things
up-to-date and the business can gather much more information than the manual system. Based on
this information the business owner can take appropriate decisions regarding the order and
merchandise.
Answer 5: Telecommunication recommended for POS system
In the telecommunication types of networks available namely LAN, WAN and MAN,
types of media technologies are wired and wireless technologies. The high speed LAN connects
with the network devices of the same group. The high speed WAN connects with several LAN
having limited enterprise. The high speed MAN connects with the larger network area of same
town or same city. The functionality of WAN has related to Dynamic domain name service
(DDNS) to connect the POS system and the local PCs to the internet in the absence of static IP.
8Andie Chan, Malinda Reddish Douglas and Pamela M. Ling, 'Oklahoma Retailers’
Perspectives On Mutual Benefit Exchange To Limit Point-Of-Sale Tobacco Advertisements'
(2015) 16 Health Promotion Practice.

7BUSINESS OF IT
Data interchange take place when the device has identified. The Point-To-Point Connection is
used to connect the POS systems that manage the unit remotely in the network9.
The wireless technology for a POS system provides better productivity and eliminates
long lines10. It provides a mobile server and cashier which keeps better interaction with the
customer. Employees will be able to process transactions which increase the sales.
Answer 6: Risk and Protection with POS system
Security Risk: Sometimes customers use debit cards at any POS stations. In that case, it
is a high risk for the customer PIN if get divulge to any other customers. In addition this, a web-
based system is running with the risk of security and privacy while doing any business in the
internet. Even if most of the POS station provide protection on security cannot completely negate
the risk of security. In addition, when the system is widely accessible, it leads to a certain level
of danger.
Privacy Risk: Privacy has been at risk from the day when internet started. Hackers are
able to now access to the personal activities and information without the presence of the
individual by invading surveillance to public video, browsing to activities, server hacks and
spyware. It is advisable to take protections to privacy or it will be start to use against the
individual person.
Confidentiality Risk: Some companies use POS system and view sensitive information with
no proper procedure that results in accessed or lost of such information due to password got into
9 Iqbal A. Syed, 'Sales Spotter: An Algorithm To Identify Sale Prices In Point-Of-Sale
Data' [2015] SSRN Electronic Journal.
10 Zhaohua Long and Jiangnan Chen, 'Design And Implementation Of Real-Time Multi-
User Multi-Screen Wireless Projection System Based On ARM Embedded System' [2017]
DEStech Transactions on Engineering and Technology Research.

8BUSINESS OF IT
the wrong hands11. In that case, businesses should assure multi-factor authentication, unique
credentials and setting some privilege to permissions. This will protect their confidential
information. The employees must be given training to encrypt sensitive data, and manage the
official password.
Conclusion
Thus, it has concluded that POS is best used with WAN connection and with wireless
technology. This will make customer interaction higher and easier. By the use of POS the
business owner can save time and utilize it to manage the business. The use of POS in the
organization, the business has gained many competitive advantages and has realized the benefit
of it. The POS system work as an all-in-one business cash flow to keep the track. Every
organization should follow the technology that is use by the Four Seasons Greenhouse.
Recommendation
a) WAN network service for POS system: The functionality of WAN has connected the POS
system and the local PCs to the internet in the absence of static IP. Data interchange take place
when the device has identified.
b) Wireless technology for POS system: The wireless technology for a POS system provides
better productivity and eliminates long lines.
11 Viktor Arvidsson, Jonny Holmström and Kalle Lyytinen, 'Information Systems Use As
Strategy Practice: A Multi-Dimensional View Of Strategic Information System Implementation
And Use' (2014) 23 The Journal of Strategic Information Systems.

9BUSINESS OF IT
Bibliography
Arvidsson V, J HolmströmK Lyytinen, 'Information Systems Use As Strategy Practice: A Multi-
Dimensional View Of Strategic Information System Implementation And Use' (2014) 23 The
Journal of Strategic Information Systems
Baldwin C, 'The Impact Of Web-Based Technology On Small Businesses' (2015) 1 Business and
Management Studies
Chan A, M DouglasP Ling, 'Oklahoma Retailers’ Perspectives On Mutual Benefit Exchange To
Limit Point-Of-Sale Tobacco Advertisements' (2015) 16 Health Promotion Practice
Crittenden W, V CrittendenA Pierpont, 'Trade Secrets: Managerial Guidance For Competitive
Advantage' (2015) 58 Business Horizons
Heri H, 'Analysis The Effect Of Service Quality, Customers Value, Customer Satisfaction And
Customer Trust On Corporate Image' (2017) 19 IOSR Journal of Business and Management
Hladkykh FH Stepaniuk, 'Modern Approaches To Continuous Audit In The Pharmacovigilance
System Vinnytsia Region: The Results Of 2016' (2017) 3 Path of Science
Ilkovičová Ľ, J ErdélyiA Kopáčik, 'Barcode Based Localization System In Indoor Environment'
(2014) 13 Geoinformatics FCE CTU
Khalifa AM Fanni, 'A New Quadrotor Manipulation System: Modeling And Point-To-Point Task
Space Control' (2017) 15 International Journal of Control, Automation and Systems

10BUSINESS OF IT
Long ZJ Chen, 'Design And Implementation Of Real-Time Multi-User Multi-Screen Wireless
Projection System Based On ARM Embedded System' [2017] DEStech Transactions on
Engineering and Technology Research
Nasab S and others, 'Critical Success Factors For Business Intelligence System Implementation
In Public Sector Organisation' (2017) 9 International Journal of Information Systems and Change
Management
Reinartz WM Imschloß, 'From Point Of Sale To Point Of Need: How Digital Technology Is
Transforming Retailing' (2017) 9 GfK Marketing Intelligence Review
Syed I, 'Sales Spotter: An Algorithm To Identify Sale Prices In Point-Of-Sale Data' [2015] SSRN
Electronic Journal