The Impact of Information Technology on Business: A Case Study

This report examines the significant impact of Information Technology (IT) on business operations, with a specific focus on the implementation of Point of Sale (POS) systems within the context of Four Seasons Greenhouse and Nursery. The study explores the advantages and disadvantages of POS systems, highlighting their role in enhancing financial transactions, improving efficiency, and gaining a competitive edge. The analysis delves into the benefits of a centralized database, emphasizing its role in data preservation, security, and update speed. Furthermore, the report discusses how POS systems facilitate decision-making by providing sales empowerment and customer intelligence. The study also covers telecommunication options, including Wide Area Networking (WAN), and the various media platforms for POS systems. Finally, the report addresses the risks associated with POS systems, such as cyber security threats, privacy concerns, and confidentiality issues, concluding with recommendations for mitigation and enhanced security measures.

IMPACT OF IT ON BUSINESS

Executive Summary
Infroamtion technology has reshaped existing standard of bsuienss operation and deliver
innovative apaporaches towards bueisness solutions. In this study, the significane of IT with
refernce to PoS insatlltion has been discussed in this study. Globalsiation has brought many
changes in busienss operations and in this respect PoS is considered as an effective devcie that is
suseful for fianncial transactions. This study sheds light on imapct of IT over financial opeartions
in the context of Four Seasons Greenhouse and Nursery.
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Abbreviations
LAN: Local Area Network
WAN: Wide Area Network
PoS: Point of Sale
IT: Inforamtion Technology
IP: Internet Protocol
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Table of Contents
Introduction......................................................................................................................................5
Q1. Advantages and disadvantages of POS system.........................................................................5
Q2. PoS system helps the business gain competitive advantages...................................................5
Q3. The advantages of having a centralised database.....................................................................6
Q4. POS system facilitate decision making.....................................................................................7
Q5. Telecommunication options for this POS system.....................................................................8
Q6. Risks associated with PoS.........................................................................................................9
Recommendation...........................................................................................................................10
Conclusion.....................................................................................................................................10
References......................................................................................................................................11
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Introduction
Information technology plays crucial role in terms with enhancing performance of business
organisations. Information technology has come up with group of strategies that incorporates
with business operation. This study is helpful to analyse the impact of IT system in the context of
Four Seasons Greenhouse and Nursery. It is important for Four Seasons Greenhouse nursery that
it must implement PoS in order to manage it financial transaction and it minimise the extra
burden of manual record system. This study is beneficial to highlight the status, statutes,
potential and constraints of e-Business using PoS machine. The paper shall also list specific
policy changes aimed at bringing improvement to the legal and regulatory environment affecting
e-business.
Q1. Advantages and disadvantages of POS system
PoS stand for point of sale in which customers can able to pay the amount using machine system.
Seller can easily generate invoice for the customers who purchase products from the outlets
(Ahmad et al. 2015, p.160). It is beneficial in order to track down the financial transaction of the
business organisation like Four Seasons Greenhouse and Nursery and it minimises the extra
burden of manually inputting the account information.
Advantages
● It has improve efficiency of accounts system
● It has effective stock management system that can able to track the record of financial
transaction
● It generates accurate reports of the transactions
● It has price consistency ability
Disadvantages
● PoS requires reliable internet connection and it is easily vulnerable under security breach
during transaction process
● The software of maintaining and upgrading PoS system is expensive and it requires
regular updating in order to run financial operations
● Software based system of PoS is more complicated compared to web based solutions
Q2. PoS system helps the business gain competitive advantages
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From the perspective of Four Seasons Greenhouse and Nursery, it is important to transform its
transaction process into PoS oriented process so that it can carry out hassle work and cut down
unnecessary expenses of business operations. The main benefits associated with PoS are;
Accuracy: Scanning process in PoS system is highly developed and it can easily recognise the
card types when the card swiped through the machine. In addition to this, it can able to identify
the cost of the each transaction process that is useful to generate invoice more effectively.
Analysis: PoS systems are helpful to manage inventory, flag items for reorder, and analyse sales
patterns. It has a cash register that can able to store information of the transactions and later that
information is transferred into invoice.
Figure 1: PoS in competitive advantages
(Source: Gonçalo and Alencar, 2014, p.350)
Q3. The advantages of having a centralised database
Centralised database recording system is helpful to track down the financial system and also
beneficial to restore information for future references (Gonçalo and Alencar, 2014, p.350). It is
not only helpful to turn down manual recording system but also beneficial for everydays
operation in a systematic manner. It offers the following services in the context of Four Seasons
Greenhouse and Nursery;
Improves the design
Centralised database storage improves data preservation that if far more beneficial than storing in
PC or any storage devices. It has fault tolerant setup that prevents duplication of records. It is
evident that it minimizes the impact of catastrophic hardware failure with reference to
transaction.
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Physical Security
Locally stored data are vulnerable under security threats and it is quite impossible to restore the
information in case of failure (Kim and Song, 2017, p.322). Centralized database storage and
proper server room security restrict direct physical access to a single location and a small group
of people.
Reliability and Update speed
Centralised storage basically deals with quality components and redundancy that is more reliable
compared to local storage. In addition to this, it provides virtualization and comprehensive data
access.
Q4. POS system facilitate decision making
Figure 2: PoS Growth
(Source: Lima and WOOD, 2014, p.460)
From the perspective of business operation, it is important that it should continue to reform its
operational structure with the help of it resolutions. PoS system has come up with comprehensive
methods that accustomed with sales efforts and its evolution.
Sales empowerment
The most effective resolution that incorporates with PoS implementation is its ability to deliver
report on sales staff (Sharma et al. 2014, p.440). In addition to this, product recommendation can
be easily done with the help of plan participation; resolution of billing questions the product
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delivery can be easily performed. A PoS system is useful to enable sales oriented associated to
leverage system.
Customer intelligence
PoS are helpful to track down the financial statement of Four Seasons Greenhouse and Nursery
in terms with business operation. Product preferences can be monitored with PoS that cannot be
efficiently managed with traditional recording system (Lima and WOOD, 2014, p.460).
System process is helpful in order to track down system information and compile sales history.
Accurate inventory management is beneficial in order to enhance decision making process in the
context of PoS adoption. The system report can able to represent information regarding
transaction and inventory management such as purchase order, sales order and discarded order.
Q5. Telecommunication options for this POS system
Network
Figure 3: PoS Networking
(Source: Krush et al 2015, p.36)
A PoS machine requires high level of network connection so that transaction process can be
easily completed (Lai et al. 2015, p.122). In this respect, adoption of Wide Area Networking
(WAN) is beneficial from the perspective of Four Seasons Greenhouse and Nursery. A WAN
network is extremely helpful in order to exchange information over long distances. It is far more
effective from LAN networking and can able to connection ample number of devices with its
network. WAN consists of several LAN that connects all together so that information can be
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easily shared. According to Krush et al. (2015, p.36), PoS can works on both network platform
but with the help of WAN it can operates in wider platform so that a link between seller and
customer is established in terms with financial transaction. PoS are extremely helpful to carry out
financial transaction of Four Seasons Greenhouse and Nursery with the help of internet without
using a static IP. The Internet provides the network architecture that is beneficial to carry out
communication process by using dedicated channel.
Media for PoS
PoS operate on basically three platforms such as mobile PoS, Tablet PoS and Terminal Pos. In
the context of Four Seasons Greenhouse and Nursery, it is evident that it can run its business
operations in any of the above platform. Meanwhile, due to advancement, customers generally
prefer to transact with wireless medium rather than any other mode. According to Banerjee et al.
(2016, p.22), PoS services through Smartphone can able to manage inventory and customers
information. It requires only a dedicated network system that should have advanced level
security features so that vulnerable issues can be addressed easily.
On the other hand, business organisation that operates on store requires terminal PoS in order to
carry out business operations. Four Seasons Greenhouse and Nursery operates on store base
services and in this respect a terminal PoS is beneficial to carry out the task of financial
transactions (Peng et al. 2016, p.91). Terminal Pos operates on guided medium as well as
wireless medium and hence it is more effective compared to other mode of operation. In addition
to this, terminal PoS offers services on real time basis so that business organizations can carry
out financial transaction without interrupting its operation.
Q6. Risks associated with PoS
Cyber security is a major matter of concern from the perspective of business organisations and
its intensity is very significant in terms with PoS transactions. Information of PoS is stored in
cloud domain and due to security breaches the system has witnessed significant level of threats
from the hackers.
Security
PoS has faced main problem in terms with security issue. It has been observed that PoS machine
is easily hacked and due to this the information of the clients might be explored in open platform.
As a result account information of customers is disclosed to third party entity that causes
violation of customers right (Visnjic et al. 2016, p.42). Hackers with the help of security
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breaches steal information of the cards of customers that they have swiped in Pos machines. In
this respect, updating system software in regular interval is very effective in order to minimise
the level of vulnerability while using Pos for financial transactions.
Privacy
Privacy is a serious matter of concern from the perspective of business organisations like Four
Seasons Greenhouse and Nursery. As it has lack in terms with security, hence the level of risk is
high in PoS with reference to privacy issues (Santos et al. 2016, p.56). In addition to this, PoS
machine has witnessed significant threat in terms with security breaches. The main reason behind
the problem is that PoS uses open source channel to carry out transaction process. Hence it is
important to use patches in order to fix the bugs of the system.
Confidentiality
PoS machine is vulnerable under the threat of security breaches and thus it explores confidential
information of the customers. Hence, from the perspective of Four Seasons Greenhouse and
Nursery, it is important that it should address the issues of confidentiality so that information of
its customers might not be transferred to some others.
Recommendation
It is important to install effective firewall inside the system so that customer’s data will not be
vulnerable to other entities. Apart from this, using dedicated hybrid cloud domain for storing
information might be more effective compared to conventional cloud domain. Point of Sale
software built specifically for operational work flow and it will help Four Seasons Greenhouse
streamline communications through business.
Conclusion
Information Technology has reshaped traditional approach of business operation. In this respect,
implementation of PoS while carrying out financial transaction is fare effective compared to
other mode of transactions process. Internet service providers have come up with dynamic
approach that establishes a virtual platform for business operations. In addition to this, PoS have
turned down the extra expenses to maintain manual records of the payments. It is evident that
with the help of internet and PoS existing system of operation can be modified to a higher level.
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