Advantages and Disadvantages of POS Systems for Business

Running Head: POS Systems
IT FOR BUSINESS

1
POS Systems
Contents
INTRODUCTION...........................................................................................................................................2
Advantages and Disadvantages of the new POS system.............................................................................2
Advantages:.............................................................................................................................................2
Disadvantages:........................................................................................................................................2
Gaining competitive advantage using POS..................................................................................................3
Advantages of a centralized database.........................................................................................................3
Facilitate decision making using POS...........................................................................................................3
Processing business activities effectively using POS................................................................................3
If manual tracking of information is possible?.........................................................................................4
What questions can be answered using POS...........................................................................................4
How to manage the business using the information?.............................................................................4
Recommended options of Telecommunications for POS............................................................................4
Type of Network......................................................................................................................................4
Type of media..........................................................................................................................................5
Risk associated with POS system and how to protect?................................................................................5
 Security............................................................................................................................................5
 Privacy.............................................................................................................................................5
 Confidentiality.................................................................................................................................5
Conclusion...................................................................................................................................................6
References...................................................................................................................................................7

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POS Systems
INTRODUCTION
With the advancement in technology, it has become important for businesses to adopt the
technological changes and move along with the momentum. One such example of this
technological ramification is Point-of-sale (POS) system. The implementation of such system has
made the business process more efficient and is highly beneficial for the firms to keep track of its
inventory (Aurigi, 2016). The overall profit of a company can be tracked and improved using
this system. While having several advantages of such system, there are also some setbacks which
makes it difficult for the business firms to completely rely on such systems. The report will
discuss the POS system from different perspectives.
Advantages and Disadvantages of the new POS system
Advantages:
 Important and crucial data can be tracked using this system at the time when a product is
being sold which will help the owners to keep track of such data for their business
purposes
 The data collected through this POS system helps in updating the inventory list and also
compiles the sales history of a product (Tukker, 2015).
 Inputting the important data, storage of data, keeping track of useful information and
several other robust functionalities are associated with this system
 Provides accuracy of maintaining the inventory data which helps in an efficient decision
making (Ingram et al., 2015).
 Accurate prediction of inventory units can be made using this system which helps the
businesses to operate on a leaner inventory unit.
 The system is also helpful for the owners as they can run reports which help them to
analyze which product is more profitable and which is less.
Disadvantages:
 The whole setup of POS is much costlier than the traditional cash registers.
 There is a chance that the system might get affected by a POS malware which would
certainly result in loss of data.
 A proper ISP connection is needed so that there is no interruption in the normal process.