Business Technology Report: Point of Sale System Implementation

This report provides a comprehensive analysis of Point of Sale (POS) systems within the context of business technology. It begins with an executive summary highlighting the advantages of implementing a POS system, such as improved inventory control, reduced operational costs, and enhanced customer loyalty programs. The report delves into the advantages and disadvantages of POS systems, emphasizing their role in prioritizing profitable products and facilitating speedy transactions. It also addresses the costs associated with implementation, the need for skilled staff, and potential security risks. Furthermore, the report explores the competitive advantages offered by POS systems through accurate reporting and efficient transaction processing. It discusses the importance of centralized database storage for data preservation and security, as well as the role of POS systems in decision-making by providing real-time customer data. The report also touches on telecommunication options like LAN and RFID, and concludes by recommending the adoption of POS systems for businesses seeking a strong market presence.

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BUSINESS TECHNOLOGY
Student’s name
Subject
Date

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Contents
List of Abbreviation............................................................................................................................3
INTRODUCTION.................................................................................................................................4
Executive Summary...........................................................................................................................4
POINT-OF-SALE SYSTEM.................................................................................................................4
Advantages........................................................................................................................................4
Disadvantages....................................................................................................................................5
POS competitive advantage...............................................................................................................5
POS database.....................................................................................................................................6
POS and decision making...................................................................................................................7
Telecommunication option in POS....................................................................................................8
POS risks............................................................................................................................................8
Conclusion and recommendations.........................................................................................................9
References...........................................................................................................................................10

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List of Abbreviation
POS point-of-sale
RF Radio Frequency
LAN Local Area Network
RFID Radio-frequency identification

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INTRODUCTION
Executive Summary
After employment of the point of sale system in the organization, many advantages will be
enhanced out of same. POS is the period and place where a sales transaction is completed,
and there are no unconfirmed aspects from either of the gatherings involved in the business.
At this point, the small nursery in the case calculates the amount owed by the customer and
later prepares an invoice and offer various options for different payment. A POS system
currently is gaining a lot of acceptance in small and large businesses as eradicates price tags
needs and even if there is a price variation it accomplishment through the inventory window.
According to Abraham (2018) also it assists in the implementation of different discounts sorts
and loyalty programs that tends attraction to the clients in the market zone to purchase the
merchandise or services offered.
POINT-OF-SALE SYSTEM
Advantages
The small nursery in the case study will enhance the benefits of having effective inventory
Control. The point of sale system when efficiently integrated into the inventory control for
the establishment will offer proper control of all the resources available and the operations
associated in the business (Edwards et al., 2016). Once that incorporation is in place, the
system spontaneously tends to generate a purchase order and reorder operation kinds of stuff
when they start to diminish. POS is advantageous in the sense that will bridge the gaps
brought up by lack of inventory. POS also reduces the work amount and costs related to
running the business that in turn boost incomes and raises the profit margins.
A study by Chaimae and Rahal (2015) Sates that POS enhances prioritizing of the products to
be initiated in the market. A business can have a wide variety of products that are in the

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product, but not all of them sell according to the organization’s requirement. When a product/
service is initiated in the market for purchasing there is a profit margin set by the organization
and not all products meet the margin set. With POS the selection of products tends
enhancement regarding products/services with high profits when sold. Products failing to
meet the threshold of profit set are eradicated from the business, and others are minimized
reason that they product stagnant profit or even losses to the company which may lead to
failure of the company.
Disadvantages
However, the system (POS) portrays some problems even if they do not affect business
much. The system is costly in proper employment, and that means raising the operations costs
which can reduce the amount of profited realized. POS is a complicated structure that needs
high skilled staffs who are paid high salaries at the end of the operation. Improving the
current skills of the crews in the business means high operating costs to the end products. The
small nursery in the case study lacks appropriate skills to operate the new system efficiently
in operation and thus means recruitment of staffs will be enhanced from outside the business
(Wheelen et al., 2017). POS structure portrays security risks, and this aspect tends much
deliberation by the management as to adequately secure the business appropriately.
Cybersecurity issues which are typical of enhancement by hackers and other authorized
persons in the business play a major role in failing one’s business.
POS competitive advantage
Accurately reporting of information enhances effective management of the business where it
provides real information regarding customers need in the market. When an organization is
capable of meeting client’s requirement improves an upper hand of winning their loyalty
which is brought by satisfaction enhanced from the products/services (Robson 2015).

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Satisfaction of customers in the market will install a competitive advantage to the
organization reason that customers will acquire the products since they are meeting their
needs appropriately. The point-of-sale system provides a mechanism that enhances speedy
transactions for busy customers in the market.
In the current market with improved technology, no customer has the time to delay in long
queues waiting to purchase a particular product or services. Dependable POS software will
reduce the time customers devote at the register and will eradicate human error by staffs.
Merchants are now capable of organizing menu items on the webpage based on group and
can make colored-coated “link keys.” With POS retailers tend to have large amounts of
catalog no longer have to disquiet about slow dealings or inventory blunders. Many POS
software suppliers in the market currently offer integrated barcode perusing that increases
speed and efficacy (Falzone et al., 2016).
POS database
Storing data in a centralized database is an important aspect since it will bring enhanced
preservation of data. Consolidated database storage advances data preservation. Personal
computers and laptops hardly offer fault lenience and the capacity to endure functioning after
hardware botch. Fault forbearance requires duplicate works, which increases costs. The
deficiency of fault tolerance primes any data stored in the organization system at risk for
permanent loss. Centralized storage often embraces a fault-tolerant system and redundant
storage that conserves the data, even in the occasion of a catastrophic hardware let-down in a
hard drive. Also, the system capable of providing centralized data stored delivers improved
Physical Security where locally stored data characterizes an ongoing physical safety risk.
Laptops and other computer devices in the order may get lost or filched (Dorsey et al., 2017).
An unattended computer presents a prospect for someone to access, take or damage stored

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data. Centralized catalog storage and appropriate server room security confine direct physical
admittance to a single position and a trivial group.
POS and decision making
Not only in the case but generally the POS system assists much in decision making in all
organization that applies the strategy. Business activities tend proper management with the
help of the system reason that guesswork aspect is eliminated in the organization. That aspect
of guesswork elimination assists much in sound and effective decision making as the
executives will only element right information gathered by the system (MADDEN and TAN,
2018). POS easily fits the beak as a comprehensive system that can aid an organization in
accepting and processing payment and even tracking inventory levels in actual time. What the
system does most exceptional is gathering critical customer data that can enhance the
application by the organization to develop its interests. Information collected by use of the
system assist executives in managing the business effectively as they tend to operate with
actual information needed by the customers in the market zones. Managing a business is a
vital aspect that needs many considerations in any organization as it tends taking data
collected from all stakeholders in the environment. Customers are essential stakeholders of
every business and in this case their will and say needs much deliberation which in turn helps
management in instances of decision making.
Tracking information manually is a hectic activity, but it depends on staffs skills and morale.
It is possible to track information manually, but it will not be useful as where compared to
automated measures. The manual method of monitoring information may leave some aspects
not well considered due to fatigue of staffs in the field.
Information gathered through the POS enhances the effective capability of managing the
business since executives can refer the system later in case of some clarification. POS

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database acts as security to information stored hence enhancing future retrieval (Van Horn et
al., 2016).
Telecommunication option in POS
Telecommunication aspect in POS is important due to technology evolution available in the
current world. Local area network tends enhancement as the system will require connection
of different workstations in the entire establishment. In LAN, there is a computer acting as a
file server that is the most precarious of the machines in rapports of security and constancy.
LAN enhances effective communication through the network and also portrays secure
measures of transmitting information only to the established environment.
Type of media communication that is effective in the application is the wireless mode of
communication and data transfer. The wireless method is more appropriate as media
transmission cannot be subjected to physical damages. According to Rothaermel (2015) users
tends to enhance flexibility since they can move freely with their laptops all over the network
without any interference.
Radio-frequency identification (RFID) is the most appropriated wireless technology that will
be applied in the company under consideration. The method employs small transponders
(tags) embedded in or devoted to specific objects. RFID systems apply transmitters in the
radio frequency (RF) quota of the electromagnetic spectrum to exclusively identify resources.
RFID expertise is coming into the cumulative industrial application as an alternative barcode
scheme (Funk, W.L. and Jackson, 2008).
POS risks
Internet introduction portrays dangers in security to various systems in business. POS system
access in every business should ensure that there are important aspects that permit only

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authorized people in the system. The user of biometric recognition when accessing the system
tends enhancement to only approve company staffs (Orr et al., 2015).
Privacy risk also is available in the system and management should employ measures to curb
privacy risk. Encryption of data/information in the mode is greatly enhanced since it will
control all risks associated with privacy risks.
Conclusion and recommendations
POS structure is a vital aspect and should be employed in all businesses that anticipate
grounding themselves on the strong base in the market. Companies using this system tends to
gain a competitive advantage over their competitors where they realize high profits in the
market (Rothaermel 2015).

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References
Abraham, S.M., International Business Machines Corp, 2018. Intelligent point of sale system.
U.S. Patent Application 10/068,218.
Chaimae, E. and Rahal, R., 2015. NEW WAY OF PASSIVE RFID DEPLOYMENT FOR
SMART GRID. Journal of Theoretical & Applied Information Technology, 82(1).
Dorsey, J., Henderson, W., Grassadonia, B., McKelvey, J.M. and Wen, X., Square Inc, 2017.
Point of sale system. U.S. Patent Application 15/599,826.
Edwards, T., Skoog, L., Babu, A. and Dorogusker, J., Square Inc, 2016. Point-of-sale system.
U.S. Patent 9,257,018.
Falzone, L. and Ciabarra, C., Revel Systems Inc, 2016. Point of sale system. U.S. Patent
Application 15/043,163.
Funk, W.L. and Jackson, W.C., Electronic Data Systems LLC, 2008. Automated system and
method for point-of-sale (POS) check processing. U.S. Patent 5,801,366.
MADDEN, C.A. and TAN, G.P., VeriFone Inc, 2018. Point of sale system. U.S. Patent
Application 15/924,636.
Mahalingam, M., Dutt, D., Duda, K., Agarwal, P., Kreeger, L., Sridhar, T., Bursell, M. and
Wright, C., 2014. Virtual extensible local area network (VXLAN): A framework for
overlaying virtualized layer 2 networks over layer 3 networks (No. RFC 7348).
Orr, R.N., Lemley, D., Hotchkies, C.J. and Dehoux, J.L., Atx Innovation Inc, 2015. System
and method for interfacing a client device with a point of sale system. U.S. Patent 9,195,982.
Robson, W., 2015. Strategic management and information systems. Pearson Higher Ed.
Rothaermel, F.T., 2015. Strategic management. McGraw-Hill Education.

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Van Horn, E., Kearney, S.P., Giordano, P.A., Good, T., Dickinson, C., Au, K.M., Wilz Sr,
D., Furlong, J.A., Hejl, B., Walczyk, J.A. and Coyle, L., 2016. Multifunction point of sale
system. U.S. Patent 9,412,242.
Wheelen, T.L., Hunger, J.D., Hoffman, A.N. and Bamford, C.E., 2017. Strategic
management and business policy. pearson.