Benefits and Risks of POS System Implementation in Business

it for business
POS System
[DATE]

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Abstract
The below mentioned report include the major benefits and disadvantages of the new POS
system. A case study is given which shows the implementation of the new POS system in the
business which has helped the business to do all the activities related to inventory in a very better
and easiest way. In addition to this, it has also made the manual work in the form of digital work.

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Contents
Introduction.................................................................................................................................................3
Advantages and disadvantages of the new POS system...............................................................................3
POS system help the business gain competitive advantages........................................................................4
Advantages of having a centralized database...............................................................................................4
POS system facilitate in decision making....................................................................................................5
Telecommunication options for this POS system........................................................................................5
Risks that POS system bring and measures to protect the business against the risks...................................6
Recommendations.......................................................................................................................................7
Conclusion...................................................................................................................................................7
References...................................................................................................................................................9

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Introduction
POS stands for point on sale. Here, the implementation of the new POS system has created a
major advantages for the new business. Moreover, the implementation of new POS system has
helped managers to manage all the overall activities of the business in a better way. It has created
a digital platform for its users.
Advantages and disadvantages of the new POS system
New POS system has several advantages as well as disadvantages. The new POS system was
entered in the year 2009 as per the case study mentioned. The advantages of the new POS system
are given below:
It has created a huge support to all the business and organization that helps to maintain
the record of all the data which are related to sales contracts, minimizes the manual work
activities and combines the sales history in the system.
It reduces the work of Cash register and delivers functions such as inputting, tracking and
distribution of data to control all the activities of the business.
POS helps to create accuracy and reliability which managers can use to predict the actual
demand of the product in the business (Armentrout, Do, Hargett and Maximilien, 2011).
This system helps to know the detailed information of the products that has been
procured, rejected and sold. It helps the business to earn more amount of profits
(Tempelmeier, 2011).
Apart from this, the disadvantages of new POS system are also given below:
It minimizes the goals and objectives which are established by the owners of the business
but all the activities are dependent on the system.
The cost related to the system might be too high which cannot be easily affordable by all
the business because it costs about £2000 to establish POS system.
The maintenance charge for POS system is very high which becomes difficult for the
organizations to manage it on a regular basis.