Technology Effects on Businesses

TECHNOLOGY EFFECTS ON BUSINESSES
Executive Summary
The transactions of the Point of Sale which do not use cash and the machines in the
shopping done currently develop a part that is integral. The point of sale machines offers
customers an opportunity to swipe debit and credit cards, input the money required in payment
and then carry out the payments electronically within a short period of time. This is done
immediately after transactions have been sent out for authorization. Also, it is allowed to type the
account numbers which after being approved, the users may receive it and then do the signing on
the receipt that is provided. In a nutshell, the point of sale machines makes it possible for
organizations and businesses to save a lot when it comes to the time and cost and also makes it
possible for the transactions of the business to be efficient to a great extent.

Table of Contents
Introduction...............................................................................................................................................3
Positive and negative impacts of the POS................................................................................................3
Competitive advantage of the Point of Sale.............................................................................................4
Benefits of a centralized database............................................................................................................4
Decision making in the Point of Sale........................................................................................................5
Point of Sale Telecommunication.............................................................................................................5
Risks associated with POS implementation.............................................................................................6
Conclusion..................................................................................................................................................6
References..................................................................................................................................................7

Introduction
The POS systems in businesses that are small often are only cash registers that happen to
be sophisticated. In the years of 1970, registers of cash functioning via a computer started being
used in many areas which then began giving aspects like the client to server technology, peer to
peer communications which was done remotely and also the backups. In the recent time, point
of sale systems have become standard in the hospitality industry and a good number of retail
businesses level have personalized the system of POS. The point of sale systems may be linked
with business accounts which in return would make it easy and fast to accept the transactions of
cards of credit by the businesses. The businesses are provided with the joy of efficiency that is
increased of the employee, record keeping that is better and accurate when the point of sale
system processes the transactions immediately as they are being performed. The point of sale
systems can be personalized and designed specifically for the industries.
Positive and negative impacts of the POS
Efficiency is one of the main reasons as to why a good number of businesses implement
the point of sale system. A point of sale system that is right makes it possible to eliminate any
kind of errors resulting from the human which occurs during the process of processing
transactions performed by employees. The point of sale system safeguards info in a well-
organized manner and in a single place which in return reduces any errors which results to
efficient and faster processing of data. (Kumar, 2014)
Another advantage associated with the use of the POS is the simplification of information
recording. This is possible since the point of sale systems standardize the format of the
transactions. The storing of transactions is carried out in a central computer and it is possible to
immediately print any of the transactions as soon as they are requested which is efficient since it
helps in minimizing any occurrences of the wastes.
The point of sale system provides a hand in the matters of decision making in a business
since they are designed in a manner that it is able to record every minute detail concerning a
transaction, for example, the number of sales done, who carried out the transaction of the sale,
the services and the products that have been purchased in that day and finally the time of the
transaction as well as the date. (Kumar, 2015)

Last but not least, the point of sale system assists in saving of money which is made
possible by the well tracking of the inventory, making of informed decisions and time saving for
the employees which also is good in reducing the overall cost. (Wang, K.M. and Liu, 2016)
Besides being advantageous, the point of sale systems has some issues with the security.
During the transaction process, customers are likely to expose their PINs to their fellow
customers. Also, the web-based POS are likely to face the issues of security which are
experienced by online businesses.
Another concern regarding the POS is that it can be costly at times as it requires regular
updates of the POS software. There is also the monthly subscription that requires to be attended
to as well as the licensing fee required when purchasing the POS system. (Watson et al, 2017)
Competitive advantage of the Point of Sale
Among the many effects of the POS in businesses is that, it enables the businesses to
compete fairly with other businesses in the market. With a POS system that is integrated, it
becomes possible to track and manage inventory efficiently which otherwise would have been
done manually which is not very effective as it would consume a lot of time and also some
human errors that would arise. The POS is able to provide detailed reports regarding the business
products and the operations and the employees which enables proper management of the
business generally. This in return helps the businesses to properly price products according to the
returns they are providing and also evaluate the performance of individual employees. With that,
the business is able to optimize its overall productions as there are minimal errors, wastage and
the results are maximum. It also becomes possible to make smart decisions on customer
preferences based on the accurate and timely reports provided by the POS. The business is also
able to focus and put more effort on the important areas in the business. All this enable the
business to provide the best hence it becomes possible for the business to compete with others in
the market. (Rongley, 2011)
Benefits of a centralized database
The POS utilizes the centralized database as it offers a lot of benefits to the organization.
One of the benefits is that, compliance maintenance becomes easy as retailers are able to easily
comply with set standards that are followed globally and also the regulations such as the tax. The

doubts as to which systems have complied with the set standards of security and also which
systems have been updated or not are eliminated as it is possible to control that at a single point.
Centralized database also enables analysis of huge volumes of data in a quick and
effective way which helps the customers to shop globally in real time. (White et al, 2015)
Centralized databases also enable businesses to realize reduced costs in terms of
maintenance and management. This is because a good number of peripherals are easily and
quickly connected. The connection gets rid of the need to stick to specific contracts or brands on
the off chance that new functions are needed. Using a single compatible platform with various
environments of operations of systems of the servers makes it possible for the retailers to make
changes in future for the accommodation of the demands of customers for several retail channels
and the various types of payments. (Postrel et al, 2009)
Decision making in the Point of Sale
The point of sale system makes it possible to make the correct decisions in the operations
of the business. This is made possible by the fact that, the POS is able to produce timely and
accurate reports regarding the performance of each and every product transacted in the business,
the services offered, the purchase behavior of the customers and the performance of the
employees. Regarding the products and services, the POS provides detailed report based on the
products performing the best and the ones performing poorly in terms of the returns. This report
enables the business to decide on the products to increase in the business and the ones to
eliminate or less concentrate on. Also, based on the purchase behavior of the customer, the
business is able to decide on proper pricing of the products and also measure the effect of
promotions that it might provide seasonally without affecting the profitability of the business.
The POS enables easy tracking and management of the inventory. Finally, with the accurate
reports provided, the business is able to manage and evaluate the performance of the employees.
The business is able to decide on which employee to carry out specific functions based on their
productivity. (Labrou, Y. and Agre, 2010)
Point of Sale Telecommunication
For the small businesses, it is advisable that they implement the metropolitan area
network for the point of sale network. this is because it covers a measurable size of the physical

area and also allows for the resource sharing among several computers. Another technology
advisable for the small businesses is the wireless technology as it would suit MAN. It is strong,
fast as well as mobile. Additionally, technologies such as the EDGE, WCDMA and the GPRS
would be recommended as they are secure, fast and able to support the POS systems. (Smith,
2009)
Risks associated with POS implementation
There are many security issues that arise with the implementation of the POS in
businesses. The privacy and confidentiality of the customer details as well as the business
information may be exposed to danger when attackers or hackers try to inject malware in the
network of the POS system so as to steal their credentials. The malware introduced illegally on
the network captures the information being communicated between the sender and the recipient,
alters it and sends the wrong information in the receiving end. (Lum, 2013)
The attackers also may trick customers in exposing their login credentials through
disguise and then use it to access their credit card details and use it to commit fraud. There are
also skimmers in the businesses who may attach some devices on the hardware of the POS which
may be used record the security credentials and use it to commit fraud in the business.
Other attackers also find their way in accessing the default passwords provided by the
manufacture and they use that to illegally access the devices and accounts of the businesses and
steal the information for their own selfish gain. (Nelson et al, 2009)
Good news is that, it is possible to protect the business and the customers from such
insecurities by regularly updating the POS software since, the security is increased with the
release of newer versions of the software. Another mechanism of improving the security is by
ensuring that the default passwords are immediately changed as soon as the installation is
completed. Another caution to be taken may be to ensure that the access of the employees to the
business premises is limited to avoid any unforeseen insecurities. (Burke, 2010)
Conclusion
From the discussion provide above it is evident that, implementation of the POS has its
advantages as well as the disadvantages. Although, the benefits overshadow the limitations, it is
also good not to overlook the disadvantages. But the main point is, the POS provides so many

benefits and every business should seriously consider implementing it as it would boost the
business to a great level.
References
Burke, B.V., Every Penny Counts Inc, 2010. Funds distribution system connected with point of
sale transactions. U.S. Patent 6,088,682.
Kumar, R., Khyber Tech Corp, 2014. Integrated portable device for point of sale transactions.
U.S. Patent 5,294,782.
Kumar, Rajendra. "Integrated portable device for point of sale transactions." U.S. Patent
5,386,106, issued January 31, 2015.
Labrou, Y. and Agre, J.R., Fujitsu Ltd, 2010. Wireless computer wallet for physical point of sale
(POS) transactions. U.S. Patent 7,784,684.
Lum, J., Logic Controls Inc, 2013. Point-of-sale system. U.S. Patent 6,546,441.
Nelson, E., Price, J. and McCormack, H., First Data Corp, 2009. Point of sale device. U.S. Patent
Application 29/284,799.
Postrel, R.D., Haven, K.R., Empson, E.H., Fang, C.C., Nabulsi, H., Shiozaki, S.J. and O'young,
J.G., SkyTeller LLC, 2009. Point of sale device. U.S. Patent 6,003,008.
Rongley, E.H., International Voice Register Inc, 2011. Method and apparatus for conducting
point-of-sale transactions using voice recognition. U.S. Patent 5,758,322.
Smith, S., In2M Corp, 2009. Methods and apparatus for wireless point-of-sale transactions. U.S.
Patent Application 11/440,827.
Watson, D., Kuchenski, D.W., Klein, A., Zaugg, M., Block, B., Harris, R. and Konecny, R.,
Diebold Nixdorf Inc, 2017. Point of Sale Transactions. U.S. Patent Application 15/406,184.
Wang, K.M. and Liu, S.C., Ennoconn Corp, 2016. Point of sale device. U.S. Patent 9,448,598.
White, S., At&T Mobility Ii Llc, 2015. Systems and methods for handling point-of-sale
transactions using a mobile device. U.S. Patent 9,053,474.