Literature Review on Point of Sale (POS) Systems

This assignment requires a thorough review and analysis of scholarly articles related to Point of Sale (POS) systems. It delves into the historical development, diverse applications of POS systems across sectors like retail, healthcare, and agriculture, as well as emerging trends and future directions in POS technology.

Running head: POS SYSTEM FOR BUSINESS
POS System for business
(Four Seasons Greenhouse and Nursery)
Name of the student:
Name of the university:
Author Note

1POS SYSTEM FOR BUSINESS
Executive summary
“Four Seasons Greenhouse and Nursery” at Colorado is a small business, garden centre using
manual registers. This is to maintain and track inventory and find products bringing most of the
profit. Here the use of information system at the above nursery concerning advantages and
disadvantages of new POS or Point of Sale Systems is analyzed. The study also includes the idea of
centralized databases, a contribution of POS in decision making. Lastly, the review discusses the
recommending telecommunication options for POS system at a nursery.

2POS SYSTEM FOR BUSINESS
Table of Contents
Introduction:..........................................................................................................................................3
1. Advantages and Disadvantages of new POS systems:......................................................................3
2. Ways in which POS system help business gain competitive advantages:.........................................4
3. Advantages of having a centralized database:...................................................................................5
4. Process in which POS facilitates decision making:...........................................................................6
5. Recommended telecommunication options for POS system:............................................................7
6. Risks brought by POS system and protection of business against the risks:.....................................9
Conclusion:..........................................................................................................................................10
References:..........................................................................................................................................11

3POS SYSTEM FOR BUSINESS
Introduction:
Use of Information Technology is required by kind of business. Small businesses can get
benefited by the positive effects through adopting information technology.
The “Four Seasons Greenhouse and Nursery”, Colorado is a kind of small business. This
garden centre uses manual registers from maintaining and tracking inventory and find products that
bring most profit.
The following report analyzes use of information system at the nursery, considering different
answers arising from various questions, concerning advantages and disadvantages of new POS or
Point of Sale Systems, an idea of centralized databases and so on. It also includes a contribution of
POS in decision making and recommending telecommunication options for POS system.
1. Advantages and Disadvantages of new POS systems:
Advantages Discussion
Improved
efficiency
This helps in saving time through memorizing product prices enhancing the
confidence of users.
Stock
Management
Current POS systems help every stock to be scanned under delivery and could be
entered into the digital database.
Accurate
Reports
Best reporting capabilities of POS identifies general sales trends like seasonal
variations in demand of a product (Cui et al. 2016).
Employee
tracking
Using distinct identification codes or clerk codes helps each employee to get linked
to particular transactions. This is helpful instead of determining how many
members have been using the similar machine.

4POS SYSTEM FOR BUSINESS

5POS SYSTEM FOR BUSINESS
Disadvantages Discussion
Cost of Web Access However, this additional advantage comes at an additional cost, in that you
will need to pay for Internet access on your registers as well as a monthly
fee to the provider.
Updates In addition to the complications and costs that come with these updates,
you may need to invest in hardware updates as well (Rahman and Ripon
2014). These updates can result in significant continuing prices for
something that is supposed to be an investment that brings long-term
returns.
Security Risks Though most providers of point of sale stations offer significant security
protection, they can never negate the security risk altogether, and the
convenience of making your system widely accessible can come at a certain
level of danger.
2. Ways in which POS system help business gain competitive advantages:
POS system refers to the method in which every store is aware when to order additional
stock. Each time, anything gets sold POS System upgrades sever and inventory amount changes.
POS serves as the location where checkout or transaction takes place. POS can track internal stock
and schedule replenishment stock from various external sources (Stamam, Bakar and Radzi 2016).
Managing inventory is a crucial part of the Information system. Inventory management has been
primarily regarding specifying placement and size of different stored goods. Further, it is also
needed at various locations of supply chains. It encompasses all the things from carrying the expense

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of inventory, demand and inventory forecasting, replenishment lead time, inventory valuation, price
forecasting, inventory visibility, returns of various defective goods and quality management. To
balance the process efficiently is a consistent process. This is because inventory has been fluid and
always changing.
3. Advantages of having a centralized database:
Advantages Discussion
Improving data
preservation
Centralized databases enhance preservation. They often involve an
effective set-up of fault tolerance and a redundant storage preserving data.
This takes place although during any catastrophic failure of hardware
within the hard drive.
Enhancing physical
security
Various locally stored data denotes ongoing physical risk to safety.
Improves Physical
Security
A centralized storage of database and appropriate server room blocks
direct access towards any single location or minor group of people.
Improving Data
Security
Since businesses have been maintaining a considerable amount of
sensitive information of consumers, data protection has been a mission-
critical challenge. Supplying data security under central storages of
database gives rise to lesser changes than assuring safety around various
local storage sites (Yang and Hwang 2015). Policies of data access limit
damages that any compromised computer performs. This is as similar to
implement encrypted virtual private networks, rigorous password
protection and firewalls.
Reducing costs Different centralized storages need business in investing highly in server

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technology like fault tolerance. However, it also helps in cutting overall
expenses. Maintaining to central server denotes less cost than continuing
to various computers. This is mainly as the business operates in multiple
locations. Centralized storage also decreases overall space necessities
regarding data processing and storage.
Improved Reliability
and Update Speed
The centralized storage employs larger quality redundancy and
components. This makes that notably more reliable than the local storage.
The storage of centralized database facilitates virtualizations and delivers
comprehensive access to data (Davis and Wang 2015). This is as needed
from any place in this world. Upgrades done out on database has been
running on centralized storages. This is carried through every end-user,
unlike local storage, which is just applicable to that particular computer.
4. Process in which POS facilitates decision making:
Effective processes
facilitating decision
making
Discussion
Making market
smarter
Email marketing has been a valuable process for promoting
services and products. While integrating to POS, one can easily
boost business through recognizing primary trends in the history
of customer purchase (Keith Jr, Buckler and Hamilton 2015).
Using CRM data from POS for targeting a particular group of
customers has been gaining insights to the most efficient way for
reaching them and then capitalizing on buying habits.

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Keeping a close eye on
gross margins
To analyze performance, there is no need to wait until the end of
month or quarter. Setting daily margin goal of gross profit and to
see as one achieved it at the close of business has been vital.
Instead, POS helps in analyzing why and seeks for scopes to raise
the average sale.
Rethinking sales floor It is needed to be determined whether the business has been
featuring profitable items notably sufficient within their store.
Cloud bases POS software permits to recognize departments and
products easily making one earn the maximum income (Myatt
and Redman 2015). This helps in knowing precisely what order
and seek scopes for encouraging customers for buying them.
Purchasing with
insights
Additional inventory has been a primary draining profit,
particularly while slow-term items have been taking up a costly
real estate. Through analyzing sales reporting and information of
inventory smarter decisions can be made. This is regarding how
much one has been buying every product carries and phased out
totally.
5. Recommended telecommunication options for POS system: LAN:
POS terminals can be connected to POS servers through LAN as it supports protocols like
TCP/IP or various UDP data transfer. For using the connection option, POS terminal is
interconnected to LAN router. It is set up to send POS operations data towards the LAN. Further
LAN router gets connected to POS server.

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 WAN:
It is a rapid and secure mode of data transmission among networks. Data transmission here is
also inexpensive and reliable. One can utilize WAN for accessing distant support agents for
downloading logs or to run different utilities for analyzing potential issues. It is also used for remote
administration like uploading or programming latest POS parameters with Q-Prog. One is also able
to call up reports and then assess sales data from office or home.
 MAN:
Most of the favorite brands of the POS hardware are supported by MAN. It is also helpful to
control inventory of stock in maximizing return on capital. Here statements or invoices are also sent
to customers quickly and very fast through e-mail. Cash flow can be monitors, and the accounts are
used to develop financial performance. Further, POS is easy to use software with various levels of
access for every kind of users.
 Wired media:
This is a fixed and easy-to-use line terminal. The reliable and secure POS terminals have
been contactless. It is enabled and be conveniently incorporated into POS system. They accept major
credit and Debit cards like American Express JCB, UnionPay, Master Card and Visa. It also allows
various types of payments like contactless chipcards and magnetic stripe cards. Moreover, it
provides IP broadband connectivity for quicker transaction processing like dial-up connectivity
option through the telephone line as a backup. It is easy to use and involves backlit screen with
keypad regarding every lighting situations.

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 Wireless media:
Wireless POS is the usage of wireless devices facilitating payment for services or products.
WPOS system or wireless POS comprises of base situation connected directly to a central network
and handled devices communicating wirelessly.
6. Risks brought by POS system and protection of business against the risks: Security:
The first risk is vendors managing encryption keys with no hardware security module. The
business is using corporate network for sending system and security updates to the POS data
environments and devices. Thus the business comes at serious risk. As any hacker gets access to
network, also gets access to all of their POS data (Muyo, Balute and Gonzales 2017). Further who
can memorize intricate passwords delivered by POS device manufacturer it has been incredibly vital
that they change the password. This is to be done as once they have hooked device up to their POS
software.
 Privacy:
Connection reliability:
As there is an Internet outrage, one loses the accessibility to the system.
Risk of exposing personal information:
Customers using debit and credit cards run on the threat to present their data to other people
(Shu 2014).
 Confidentiality:

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Phishing:
Four Seasons Greenhouse and Nursery might become the victim of a breach as any employee
unintentionally falls for any scam (Johnson 2016). They might also be in trouble as they supply
credentials necessary to provide an attacker access to data.
EMV (Europay, MasterCard and Visa) chip cards:
The credit cards issuers start issuing EMV compliant cards storing data on an integrated
circuit. They are intended to decrease particular kind of fraud. However, the rise of latest
technologies provides cybercriminals with latest avenues of attack (Min and Park 2017). For
example, the CNP or “card-not-present can be considered here.
Conclusion:
The report shows that more than anything, Four Seasons Greenhouse and Nursery, need their
latest POS system for elevating their customer experience and operation they provide. It has very
likely having opposite impact as the system has never been satisfying every necessity or the
employees have not been on board as the study indicates. In the same way, it must be kept in mind,
that instead of any proper training and point person to go for troubleshooting, the staff likely
struggles to run or get up with that. Hence, the nursery must be engaging their employees early and
often throughout the process and set business up for success with new POS.

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References:
Bueno, A.D.O., Anacleto, J.C., Calderon, R., Fels, S. and Lea, R., 2014, June. ICT to support
community gardening: a system to help people to connect to each other in real life. In Proceedings of
the 2014 companion publication on Designing interactive systems (pp. 133-136). ACM.
Cui, B., Jiang, J., Huang, Q., Xu, Y., Gui, Y. and Zhang, W., 2016. Pos: A high-level system to
simplify real-time stream application development on storm. Data Science and Engineering, 1(1),
pp.41-50.
Davis, W.C. and Wang, Z.J., 2015, June. A Mobile Retail POS: Design and Implementation.
In Proceedings of the 2015 Workshop on Mobile Big Data (pp. 49-51). ACM.
Johnson, M., 2016. Sustainable Backyard Gardening: An Investigation into the Feasibility of
Implementing a Small-Scale Aquaponic System for Household Consumption.
Keith Jr, J.C., Buckler, A.J. and Hamilton, J.A., 2015. [115-POS]: Development of vascuCAP™, an
MR image analysis system for longitudinal surveillance of cardiovascular disease in women who
developed preeclampsia. Pregnancy Hypertension: An International Journal of Women's
Cardiovascular Health, 5(1), p.62.
Kumar, M.K. and Ravi, K.S., 2016. Automation of irrigation system based on Wi-Fi technology and
IOT. Indian Journal of Science and Technology, 9(17).
Min, B. and Park, S.J., 2017. A Smart Indoor Gardening System Using IoT Technology.
In Advances in Computer Science and Ubiquitous Computing (pp. 683-687). Springer, Singapore.

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Muyo, P.A., Balute, A.A.N. and Gonzales, D.B., 2017. The Development of the Authorized Valve
Distributors POS Data Management System. International Journal of Computer
Applications, 167(6).
Myatt, L. and Redman, C.W., 2015. [103-POS]: An online data collection system for preeclampsia
research to enable data harmonization and merging across studies, with generation of very large,
statistically powerful datasets: the CoLab Database Project. Pregnancy Hypertension: An
International Journal of Women's Cardiovascular Health, 5(1), p.56.
Rahman, M. and Ripon, S., 2014. Elicitation and modeling non-functional requirements-A pos case
study. arXiv preprint arXiv:1403.1936.
Rao, K.S. and Nagendra, N., 2017. Automatic Watering of an Expressional Gardening System.
Shu, N.I., 2014. Application of POS and CORS Technologies in Photogrammetry. Geospatial
Information, 5, p.025.
Stamam, M.S., Bakar, A.H. and Radzi, S.M., 2016. Perceived ease of use towards point of sales
(POS) system: Four and five star hotels in Kuala Lumpur. In 3rd International Hospitality and
Tourism Conference, IHTC 2016 and 2nd International Seminar on Tourism, ISOT 2016. CRC
Press/Balkema.
Yang, D. and Hwang, I., 2015, May. Security enhancement methods for mobile POS system.
In Proceedings of the Second ACM International Conference on Mobile Software Engineering and
Systems (pp. 152-153). IEEE Press.