IT for Business: Evaluating POS Systems for Business Decision Making

This report provides a comprehensive analysis of Point of Sale (POS) systems within a business context. It begins by introducing the importance of technology, including POS systems, in modern businesses, highlighting both the advantages and disadvantages associated with their implementation. The report then delves into the specific benefits of POS systems, such as efficient data storage, transaction tracking, inventory management, and cost reporting, emphasizing how these features contribute to competitive advantages and improved decision-making. It also discusses the advantages of a centralized database and how POS systems facilitate data-driven decisions, leading to enhanced customer experiences and marketing strategies. Furthermore, the report examines how POS systems streamline business activities, replacing manual data manipulation with real-time tracking capabilities, and evaluates the importance of data security, privacy, and confidentiality within a POS system. The report concludes by exploring telecommunication options suitable for a POS system, recommending LAN connectivity, and assessing the associated risks, such as security breaches. Overall, the report underscores the critical role of POS systems in optimizing business operations and strategic decision-making.

Running head: IT For Business
IT For Business

IT For Business
Introduction
In the present scenario, technology is one of the important needs of every company. Point
of sale is also the technological equipment needed by the company. There are merits and
demerits related to this technology and it is important for the companies who are conducting
their activities at various places. It assists in the overall process related to the decision making of
the organizations and also it has a link with the financial affairs. This report focuses on the
various aspects related to POS.
Advantages and Disadvantages of New POS
There are various advantages and disadvantages concerned with the new point of sale.
Advantages are
a.) It has been seen that a large amount of information can be stored in less
space and also it offers robust functionalities related to distributing, storing, inputting and
tracking the overall data.
b.) The system also assists to keep track of the important transactions related
to sales and also of the products which are sold (Gupta and Gupta, 2014).
c.) The information gathered with the help of POS assist in enhancing the
inventory and also compiling the overall history related to sales.
d.) It assists in considering the decisions which are linked to the inventory
management and also which reduces the confusion. It also assists in conducting the
learner inventory units.
e.) Cost reporting also gives assistance in analyzing the overall facts related
to a product. It helps to add more and more profits (Dontigney, 2018).
f.) It also safeguards the time of the managers who control the information in
a proper manner.
g.) Transparency is also maintained through this which helps to ensure proper
accountability in the units.
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Disadvantages of New POS
The software which is based on the POS system has to be upgraded on a routine basis.
This can enhance the overall cost of input. There are various risks related to the risk of hacking
and also the information can be transferred in the hands of an unauthorized person.
POS assist in achieving competitive advantage
There are various advantages related to the usage of POS systems. These systems help in
the overall process of making decisions and accurate data offered through it. This information
assists in considering the decisions that are related to the facts and also offers a competitive
advantage to the companies (Pantano, Rese and Baier, 2017).
It has been seen that point of sale offers immediate information concerned with the
products that help to enhance the profits. It also assists in the management of the inventory
which controls the cost and enhances the profits of the nation. The financial information is also
managed and this information is important so that profits can be maintained and also it helps in
becoming a market leader.
Advantages of having a centralized database
There are various advantages which are related to the use of a centralized database. This
is important for the large companies but it is also important for small companies. Some of the
benefits are
a.) It is easy to make the changes and also to update the information.
b.) The integrity of the data is high and also data redundancy is low. It can be
ensured by keeping the data at one place.
c.) It is seen that there is a high security of the data where the attacks can
happen.
d.) The information can be accessed easily in the specified time and at the
time of considering the decisions to collect the data in any part of the world. It can be
available to the decision makers at the same time.
e.) The process can become easy with proper database management and also
data portability.
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f.) To protect the data it is important to have proper resources.
POS system facilitating the process of decision making
A large amount of information can be gathered with the help of POS system as it
helps in the process of decision making. The first step which is taken into consideration is
related to the help which is given to making the data-driven decisions so that competitive
advantage can be achieved.
POS offers detailed information concerned with the sale of products and it is important
for achieving growth and the revenue margins. The data that are real-time helps to consider
better decisions concerned with the discounts and offers. The information taken can be
considered for enhancing the activities of the back office and also the customer experience. It
also helps in considering the information and also the evaluated decisions. At the time of
considering POS data, it can be seen that customized decisions can be taken. It also assists in the
overall process of evaluating the information which is important for making competitive
decisions. It helps in emphasizing towards the weakness present in the overall sales and
promotions of the activities (Ingram et al., 2015).
It can be evaluated that with the help of POS data it can be easy to customize the
decisions related to marketing. It also helps in the overall process of evaluating the information
that is important for making the competitive decisions. The products are offering higher
advantages that can be promoted with the help of the information gathered through the POS
system (Hansen and Sia, 2015).
POS system process business activities more effectively
The first thing which is considered by POS is related to eliminate the manual methods for
manipulation of data. The data is gathered at the point of sale and it can be easy to track with the
help of POS system. This can be related to the orders diminishing stock to search the best sellers.
It can be completed with the assistance of manual methods but if the emphasis is given then it is
seen that it is not effective from the time management view. It gives proper information about
the type of orders that are more considered by the customers. This will be important at the time
of strategic decision making especially at the time of considering the STP strategy (Williams et
al., 2014).
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Can information be tracked through the manual techniques
It can be completed by considering the manual methods in the present business situation
it is not important to consider more time. In the technique related to the manual, it is seen that
there are many chances of attaining the misinterpreted information which can lead to incorrect
decisions. To track the data consumes more time and also efforts of humans and there will be the
confusion related to the accuracy of the information tracked. In the present situation, the
decisions of the company should focus on the real-time data and also the use of manual tracking
which is not so effective (Saeri et al., 2014).
Type of questions that should be answered
There are many questions on which focus should be given to be answered by considering
the use of the data that is achieved through POS. The questions concerned with functions like
marketing and also the financial operations can be easily considered with the help of POS
system. Also, there are many queries related to the customers which are taken into consideration
at the time of making the decisions.
Information considered in managing the business in a better way
There are many types of data which are gathered by POS and plays a great role. All these
types of data can be considered for making accurate decisions and also focus on the areas where
they will search discrepancies. The changes in the process can be made by focusing on the data
that is gathered through the system of POS. The data-driven approach to the various activities
can be considered which can assist the company in managing the business in an effective way
(Wheatley, Maillart and Sornette, 2016).
Telecommunication options for this POS system
There are many kinds of options related to telecommunication that are available with the
four season's greenhouse. Telecommunication option should be selected by focusing on the need
of the company. There are many common options which are available with the company and it is
related to the type of network it must be considered.
Type of network
Among all the options which are available LAN can be the best option that could be
taken into consideration. This is just because of the small company and also the requirement of
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the network is small. The connectivity related to LAN offers high speed and also consider the
less use of the resources which is best in case of the small companies who are having limited
financial resources (Neves and Eisenberger, 2014).
Type of media
It has been seen that wire technology can give benefit to the small companies like four
seasons' greenhouse and nursery. This is just because of the wired community who are having
good speed and also there is low chance to be hacked. Ethernet cables can be considered for this
connection (Rauschnabel and Ro, 2016).
Types of risk in POS system
There are many types of risks which are related to the use of POS system. There are
many ways which can help the business to be secured from the risks. Three types of risks that are
considered through the use of POS system are:
a.) Security: A large amount of information is stored in the POS system and
the data also plays a strategic role. So, it is important to ensure the safety of the data. If it
is not secured then it can lead to the serious issues related to stakeholders. If the
information is hacked then it can lead to a financial loss which is not good for the success
of the company. For securing the data protection software and other authentication
systems should be taken into consideration (Ilvonen, JJussila, and Kärkkäinen, 2018).
b.) Privacy: POS system takes into consideration various types of important
data. Through this, it can be easy for them to maintain the privacy of the information
which is stored.
c.) Confidentiality: by considering the POS system there is always an
opportunity to maintain confidentiality related to the customers (Saxena and Pushkar,
2017). The major issue is also concerned with the use of credit and debit card for
scanning. To consider firewalls can be best in this case.
Conclusion
By analyzing the information, it is concluded that there are many benefits and also the
disadvantages related to the use of POS systems. It assists in offering a competitive advantage by
focusing on the decision making process. The system of centralization can be good for the
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company as a promotion of people can be done effectively in relation to the decision making.
LAN with connectivity can give advantage and also with this privacy and confidentiality can be
connected with the use of POS systems.
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References
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Saxena, V.K. and Pushkar, S., 2017. Fuzzy-Based Privacy Preserving Approach in
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