IT for Business: Impact of POS System on Four Seasons Greenhouse

This report analyzes the adoption of a new Point of Sale (POS) system by Four Seasons Greenhouse and Nursery. It details the advantages, such as improved operational efficiency and data tracking, and disadvantages, including security risks and software costs. The report explores how the POS system can provide a competitive advantage, the benefits of a centralized database, and the facilitation of decision-making through accurate data. It also recommends telecommunication options for the POS system and addresses the types of risks associated with its implementation, offering protective measures. The conclusion emphasizes the positive impact of the technology on the business and recommends regular updates to hardware and software. The report provides comprehensive information on the POS system implementation for the business.

RUNNING HEAD: IT for Business
IT for Business

IT for Business 1
Contents
Introduction......................................................................................................................................2
Advantages and Disadvantages of New POS System.....................................................................2
Gaining of Competitive Advantage by Business through POS System..........................................3
Advantages of having Centralized Database...................................................................................4
Facilitation of Decision Making by POS System............................................................................4
Recommended Telecommunication Options for POS System........................................................5
Type of Risks brought by POS System and Protection of Business against the Risks...................6
Conclusion.......................................................................................................................................7
Recommendation.............................................................................................................................7
References........................................................................................................................................8

IT for Business 2
Introduction
Industry of every size and type requires the use of information technology. Positive effects can
be realized by small businesses through the adoption of technology. However, small businesses
often lack adequate resources and expertise that are possessed by large corporations for the
implementation of information technology strategies.
Businesses are increasingly adopting Point of Sale (POS) systems for bringing an ease in their
operations. POS systems are computerized networks in which the main computer is linked with
the checkout terminals and are sustained by a variety of features of hardware including card
payment terminals and barcode scanners. In other words, POS system is an arrangement of
software and hardware built for the centralization of business operations (Guinn, 2018). The
transaction of the business is easily managed by such system including processing of credit cards
and post- transaction operations that result in customer satisfaction. This report focuses on the
adoption of new Point of Sale (POS) system by Four Seasons Greenhouse and Nursery, located
in Colorado.
Advantages and Disadvantages of New POS System
The new POS system adopted by Four Seasons Greenhouse and Nursery has the following
advantages and disadvantages.
Advantages
More Useful than Cash Register- POS system undertakes a number of functions which makes it
more useful than a cash register. Such functions involve input, tracking and dissemination of data
which in turn provides the owner with useful information in context of operations and managing
of business (Nelson, 2014).
Tracks Business Data- Point of Sale (POS) system facilitates the owner of Four Seasons
Greenhouse and Nursery to easily track business data directly from the sales transactions which
eliminates the requirement of performing manually tracking the sales. The system itself performs
the storage and processing of data at the time of performing the function related to compilation
of sales history and updating inventory (Harbortouch, 2018).

IT for Business 3
Decision Making- Accurate data and business records are maintained with the help of POS
system which assists the owners in the decision making process. This is done by identifying the
items which are highly profitable and focusing on the production of such items in order to
increase profitability. Earlier, the decision related to order quantity was based on speculation, but
it I based on current inventory units.
Disadvantages
Security Risks- Severe security risks are associated with the implementation of POS systems in
the business. The linking of such systems to the central networks may even result in the exposure
of customer data to outside parties. The security risks may result from not keeping the software
updated (Miron & Brrown, 2006).
Inconvenient software based system- web- based systems are supposed to be more convenient
than the software based systems. The availability of the computer is not enough for accessing
reports and inventory counts with a software based system. Connectivity can be established
between hardware terminals and internet only with the help of hardware.
Costly Software Upgrades- Software requires to be frequently updated with latest versions in
case of a POS system. It also requires some updated hardware for the proper functioning of the
software which makes it costly and complicated (Reilly, 2016).
Gaining of Competitive Advantage by Business through POS System
The adoption of Point of Sale (POS) System will help Four Seasons Greenhouse and Nursery by
allowing to improve operational efficiency by taking maximum advantage of business data. This
in turn will help Four Seasons in gaining the competitive advantage. Moreover, such system will
help in gaining product related knowledge that why the profitability of the products were not as
high as expected. The system also provides detailed cost reporting for each item which in turn
provides greater knowledge regarding the products which made maximum contribution towards
profits. Furthermore, POS system will help Four Seasons by providing a new perspective by
offering the opportunity to modify their production to the items which brings higher profits for
them (Pickard- Whitehead, 2017). POS systems further allow the reporting of accurate

IT for Business 4
information on time which will allow Four Seasons in gaining competitive advantage by helping
in effective administration of business operations.
Advantages of having Centralized Database
A number of advantages are offered by centralized database against other databases. The storage
of data in a single place results in the maximization of data integrity and minimization of data
redundancy. Moreover, the single storage location for the data results in better data security from
the chances of data getting stolen or attacked (Baldauf & Stair, 2010). Situation of data at the
same location also allows easy mirroring, alteration, analyzing and re- organizing of such data.
Centralized database further provides easy portability and administration of data. Fault- tolerant
setup included in the centralized database improves data preservation in comparison with other
database types. The single database design makes it easy to use by the end user and allows them
to receive immediate updates. All the information can be accessed from a single location at a
single point of time (Sumathi & Esakkirajan, 2007).
Facilitation of Decision Making by POS System
Accurate data related to inventory maintained by POS system will help Four Seasons
Greenhouse and Nursery in the process of decision making. Earlier, speculation formed the basis
of decision making regarding the quantity to be ordered.
Effective processing of Business Activities by POS systems
The sales transactions can be instantly tracked at the point of sale by the POS system which in
turn helps in the processing of business activities effectively. Moreover, some processes such as
inventory updating and compilation of sales history contributes towards processing of business
activities in an effective manner.
Manual Tracking of Information
The tracking of information manually cannot be performed in an effective manner due to the
inaccessibility to the operational data. The operational data is considered to be the key behind the
effective management of business. Manual tracking does not facilitate cost reporting which in
turn creates difficulty in identifying the profitability of different items (Sandlin, 2013).

IT for Business 5
Types of Questions answered effectively
A number of questions are effectively answered by POS systems. The guesswork related to order
quantity is completely eliminated with the help of POS systems as it provides accurate inventory
counts. Therefore, it allows the business to operate effectively on leaner inventory units.
Answers to different questions are provided by system reporting such as order quantity and items
sold and discarded (Phillips- Wren, Carlsson & Respicio, 2014).
Using Information for Better Business Management
The requirement for the manual tracking of sales is altogether eliminated with the help of POS
systems as it allows the owner to immediately track business data at the point of sale from the
sales transactions. The system performs data processing and storage along with the functions
related to inventory updating and sales history compilation. It also undertakes the functions such
as input, tracking and sharing of data such that it can be effectively utilized in the business
operations (Edelman, Jaffe & Kominers, 2016).
Recommended Telecommunication Options for POS System
POS system can be set up with the help of following telecommunication options.
Types of Networks- LAN, WAN and MAN are the three options available for the network
establishment. Among these options, POS system is recommended to be LAN (Local Area
Network) based for Four Seasons Greenhouse and Nursery. All the requirements can be
adequately met by LAN for a small business. LAN is configured for holding all sorts of needed
settings and records for a point of sale system. However, WAN is also a good option but the
requirements of Four Seasons related to small business can be complied through LAN. LAN
setup also supports multiple POS terminals which are configured for the purpose of accessing the
same database server.
Types of Media- Wireless technologies should be implemented since wireless POS is expected to
completely change the industry’s operating mode. It can be approached in the form of wireless
LAN. In this, encrypted communication is performed by terminals with WPA2 security
standard. Infrared, spread spectrum and narrowband microwave are the recommended wireless
technologies for wireless LAN (Nonaka, Toyama & Hirata, 2008).

IT for Business 6
Type of Risks brought by POS System and Protection of Business against the Risks
A number of risks are suffered by POS systems related to security, privacy and confidentiality of
data.
Security- The POS data can be easily exposed to hackers in case the POS system is functioning
on an older operating system and there is no extended support. Sometimes the POS systems are
fraudulent and put the customer and company data into risk. Moreover, many times the machines
are taken under control by the hackers which provide them access to data and allow them to
easily navigate through the entire network with the help of practices such as phishing. Skimming
is also adopted by the hackers in which some hardware is installed on the POS system which
allows them to gain access to the credit card information (Turner & Musman, 2018).
For protecting system security, latest version of anti- virus software should be installed for
saving the data from the unauthorized access of the hackers. Default password of the system
should also be changed immediately. In cases, where the POS system is sustained by a third
party vendor, then passwords should be kept preserved under a strong policy (Goldberg &
Palladini, 2010).
Privacy- all types of personal information are contained in the POS systems which can be used
by the hackers such as name, email address, address, credit card information, city, birthday,
purchase history, etc. Spyware and hack servers can easily hack the systems and retrieve such
information for unauthorized use.
POS systems need to be regularly updated for the purpose of protecting the privacy of customer
data. There should be proper emphasis on the follow up of security protocol in the business by
the employees (Crotty, 2013). Privacy can also be ensured with the help of multi- biometric
system.
Confidentiality- The confidentiality breaches can put the confidence of Four Seasons customers
under threat. The breach of confidentiality occurs when the information is accessed by a person
not authorized to do it. The customers are severely impacted on the occurrence of such
circumstances.

IT for Business 7
Confidentiality can be protected with the help of software available in the market which are
based on emerging technology. The confidential data can be protected through such software
against emerging, known and unknown threats. Such software further protects the machines
from outside threats and malware and delivers unfailing VPN connectivity (Rodríguez, 2017).
Conclusion
Therefore, it can be concluded that Four Seasons Greenhouse and Nursery have made effective
use of technology for the smooth functioning of business. Competitive advantage along with the
efficiency in operations has resulted from the use of POS systems. It is more useful than a cash
register and allows effective tracking of business data. Now, the business is capable of making
decisions related to order quantity on the basis of accurate business data and is not required to
further rely on speculation. The profits of the business have also improved owing to appropriate
decision making as they have shifted production to those items which are highly profitable. The
POS system also provides answers to questions relating to number of units sold, discarded and
ordered.
Recommendation
It is recommended that Four Seasons Greenhouse and Nursery should update it hardware and
software from time to time for the purpose of protecting the security, confidentiality and privacy
of customer and company data. Furthermore, telecommunication network can also be established
through WAN (Wide Area Network) linked to a remote location.

IT for Business 8
References
Baldauf, K. and Stair, R. 2010. Succeeding with Technology. Cengage Learning.
Crotty, R. 2013. The Impact of Building Information Modelling: Transforming Construction.
Routledge.
Edelman, B., Jaffe, S. and Kominers, S.D., 2016. To groupon or not to groupon: The profitability
of deep discounts. Marketing Letters, 27(1), pp.39-53.
Goldberg, M. and Palladini, E. 2010. Managing Risk and Creating Value with Microfinance.
World Bank Publications.
Guinn, J. 2018. What Is a Point of Sale System?, [Online]. Available at:
https://www.softwareadvice.com/resources/what-is-a-point-of-sale-system/ [Accessed on: 8
May 2018].
Harbortouch. 2018. What is POS? The Definitive Definition, [Online]. Available at:
https://www.harbortouchpossoftware.com/what-is-pos/ [Accessed on: 8 May 2018].
Miron, A. and Brrown, D. R. 2006. The Professional Bar & Beverage Manager's Handbook:
How to Open and Operate a Financially Successful Bar, Tavern, and Nightclub. Atlantic
Publishing Company.
Nelson, S. L. 2014. QuickBooks 2015 For Dummies. John Wiley & Sons.
Nonaka, I., Toyama, R. and Hirata, T. 2008. Managing Flow: A Process Theory of the
Knowledge-Based Firm. Springer.
Phillips- Wren, G.E., Carlsson, S. and Respicio, A. 2014. DSS 2.0 - Supporting Decision Making
With New Technologies. IOS Press.
Pickard- Whitehead, G. 2017. 25 Point of Sale Systems for Small Business, [Online]. Available
at: https://smallbiztrends.com/2017/04/point-of-sale-systems-for-small-business.html [Accessed
on: 8 May 2018].

IT for Business 9
Reilly, J. C. 2016. An Overview of Point of Sale Systems. CreateSpace Independent Publishing
Platform.
Rodríguez, R.J., 2017. Evolution and characterization of point-of-sale RAM scraping
malware. Journal of Computer Virology and Hacking Techniques, 13(3), pp.179-192.
Sandlin, E. F. 2013. Start Your Own College Planning Consultant Business: Your Step-By-Step
Guide to Success. Entrepreneur Press.
Sumathi, S. and Esakkirajan, S. 2007. Fundamentals of Relational Database Management
Systems. Springer Science & Business Media.
Turner, A.J. and Musman, S., 2018. Applying the Cybersecurity Game to a Point-of-Sale
System. In Disciplinary Convergence in Systems Engineering Research (pp. 129-144). Springer,
Cham.