Information Technology and Business Operations: A POS System Analysis

This report provides an executive summary of the adoption of a POS system by Four Seasons Greenhouse and Nursery, located in Colorado. The implementation of this technology has significantly increased profitability and provided a competitive edge for the organization. The POS system facilitates easier decision-making and efficient business management through the immediate tracking of sales data. The report details the advantages and disadvantages of the POS system, including its ability to provide a centralized database and streamline business activities. Furthermore, it recommends specific telecommunication options suitable for the garden center's POS system and outlines crucial data security measures. The report concludes with recommendations for future improvements, emphasizing the overall positive impact of IT on the business operations of Four Seasons Greenhouse and Nursery.

RUNNING HEAD: IT for Business
IT for Business

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Executive Summary
This report focuses on the adoption of information technology in the business operations of Four
Seasons Greenhouse and Nursery which is located in Colorado. Such adoption in the form of
POS system has resulted in increased profitability and gaining of competitive advantage for the
organization. The decision making has become easier along easy management of the business
due to immediate tracking of the business data at the time of sales. This report also provides
recommendation of the telecommunication network that can be utilized for the POS system of
garden centre along with the sources that can assist in protecting the security of the data.

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Contents
Introduction......................................................................................................................................3
Advantages and Disadvantages of Point of Sale (POS) System......................................................3
Gaining of Competitive Advantages by Business through POS System.........................................4
Advantages of having centralized database.....................................................................................4
POS system facilitates decision making..........................................................................................5
Processing of business activities more effectively.......................................................................5
Tracking of Information manually...............................................................................................5
Answering of questions effectively..............................................................................................5
Use of information in the better management of business...........................................................6
Recommendation for Telecommunication options for POS system................................................6
Risks associated with POS system and their protection..................................................................7
Conclusion.......................................................................................................................................8
Recommendations............................................................................................................................8
References........................................................................................................................................9

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Introduction
The use of information technology has now become the requirement of every kind of business
and industry of every size. The positive effects of adopting technology can be realized by the
small businesses but they lack the expertise and resources required for the implementation of the
information technology strategies.
POS systems are being increasingly adopted by the businesses as there is no requirement of the
price tags and the processing of sale take place only by the scanning of the product code which is
linked with the selling prices (Griff, 2014). POS systems can be defined as a computerized
network in which the checkout terminals are linked with the main computer and are supported by
various features of the hardware including the barcode scanners and card payment terminals
(Hiiemaa, 2015). This report discusses the POS system adopted by Four Seasons Greenhouse
and Nursery in detail.
Advantages and Disadvantages of Point of Sale (POS) System
The new Point-of-sale (POS) system has the following advantages and disadvantages.
Advantages
Tracking of Business Data- Point- of- Sale system allows the owner to track business data
immediately from the transaction relating to sales which in turn eliminates the need to perform
the manual tracking of sales. The data is stored and processed by the system from the sale while
performing the function of compiling of sales history and updating of inventory (Solution Dots,
2016).
More useful than a Cash Register- The functions of a POS system provide much more usefulness
than a cash register. POS systems are capable of performing a variety of functions such as input,
tracking and distribution of data which provides useful information to the owner with respect to
the operations and management of business.
Supports Decision Making- The decisions relating to the number of units to be ordered are no
longer required to be made on the basis of speculation regarding present inventory units.

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Disadvantages
Costly Software Updates- POS system requires continuous updating of the software with newer
versions along with some hardware updates which is very complicated and costly (Kimmons,
2017).
Security risks- Various security risks are associated with the linking of the registers in the store
by POS system to a central network. Security breaches can occur in cases where the software is
not updated on time or if it is incorrectly updated.
Problems caused by hardware- web- based POS systems require fixing of the hardware which is
difficult task. The costly and time consuming services of a service technician may be required for
troubleshooting the problem.
Gaining of Competitive Advantages by Business through POS System
Point- of- Sale (POS) system allows the business to take the maximum advantage of the business
data for the purpose of gaining operational efficiency and competitive advantage. POS system
assists in gaining knowledge about the products which were not as much profitable as expected.
Moreover, detailed cost reporting with regard to every item provided greater knowledge about
the products which contributed maximum towards the profits (Schroeder, 2007). This new
perspective provided by the POS system, offered the opportunity to shift production to those
items which were found to be highly profitable which significantly resulted in higher profits.
Accurate and on time reporting of information with the POS system assists in the effective
management of the business operations.
Advantages of having centralized database
Centralized database provides a variety of advantages against other databases. Some of them are
listed below:
 Data redundancy is minimized and data integrity is maximized as all the data is stored in
a single place which implies that the given set of data has only one primary record.

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 Greater data security is provided as a result of single storage location of the data which
means that there is only one place from which data can be stolen, attacked or tampered
with.
 Easy to use by the end user due to its single database design.
 Accessing of all the information from the same location at the same time.
 End user receives immediate updates on the given set of data.
 Minimization of power supply, labor and maintenance costs makes it more cost effective
in relation to other kinds of database systems.
 Changing, mirroring, re-organizing and analyzing of data become easier when kept in the
same location.
 Data administration and Data portability becomes easier.
 Data preservation improves as compared to other types of databases due to the inclusion
of fault- tolerant setup.
POS system facilitates decision making
Decision making is facilitated by POS system with the help of maintaining accurate inventory
data. Earlier, speculation related to the current units of inventory formed the basis on which the
decisions relating to the number of units to be ordered.
Processing of business activities more effectively
The business activities are processed more effectively by POS system due to the fact that the
business data related to the sales transactions are tracked immediately at the time of sale. Also,
parallel processes are performed related to the compiling of sales history and updating of
inventory.
Tracking of Information manually
Such information cannot be tracked manually in an effective manner as proper access to the
operational data cannot be achieved which is required for the effective management of business.
Moreover, manual tracking does not take into account the detailed cost reporting by item which
specifies the product making the highest contribution towards the profits.

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Answering of questions effectively
POS system provides effective answers to a variety of questions. Due to POS system, accurate
inventory counts are available which significantly helps in eliminating the guesswork relating to
the quantity to be ordered thereby facilitating the business to perform its operations on leaner
inventory units (Rainer & Cegielski, 2010). Moreover, the reporting of the system provides
answers to the questions relating to the number of units purchased, sold and discarded.
Use of information in the better management of business
POS system eliminates the need for manual tracking of the sales by allowing the owner to track
business data immediately at the time of sales from the transactions relating to sales (Park, Adeli,
Park & Woungang, 2013). The processing and storage of data is performed by the system along
with compiling the sales history and updating the inventory. The system performs functions
associated with the input, tracking and distribution of data such that useful data can be acquired
which can further be utilized in the various operation and management of business.
Recommendation for Telecommunication options for POS system
The telecommunication options which can be utilized for the purpose of setting up of POS
system are as follows.
Types of Networks- Among the three available options i.e. LAN, WAN and MAN, LAN (Local
Area Network) based POS system will be recommended as it is a type of setup where a
centralized database server is built and accordingly configured for the purpose of holding all
kinds of required records and settings for a POS system. It will best suit the requirements of Four
Seasons Greenhouse and Nursery as it is a small business. However, WAN can also be used but
LAN is recommended after taking into consideration the operations of the business. Multiple
POS terminals are supported by LAN based setup. All POS terminals are configured such that it
can access same database server. This setup is also preferred by various departmental stores and
larger supermarkets.
Types of media- As far as type of media is concerned, wireless technologies should be adopted
as wireless POS is capable of changing the operating mode of the industries. The approach to
wireless POS systems is in the form of wireless LAN. Therefore, an encrypted wireless LAN
should be set up for POS system. In this, the order terminals communicate in an encrypted

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manner with the secure WPA2 security standard. The wireless technologies recommended for
wireless LAN are narrowband microwave (help in interconnecting LAN between buildings),
spread spectrum (widely used, cost effective and uses less power, it broadcasts signals over a
random series of radio frequency which is received by the receiver, hopping between frequencies
in coordination with the transmitter) and infrared (uses infrared signals to transfer data and is
able to carry a high bandwidth).
Risks associated with POS system and their protection
POS system suffers from a variety of risks associated with the security, privacy and
confidentiality of POS data.
Security- In case if the POS system is running on an older operating system and there is no
extended support or the extended support has lapsed then such circumstances give rise to the
entry of hackers into the software leading to the exposure of POS data. Moreover, data related to
the customer and company suffers from risks in cases where the POS system itself is fraudulent.
Also, hackers can take the control of the machine and can easily navigate throughout the network
and gain access to any data by phishing. Hackers also adopt skimming by installing hardware on
the POS device which enables them to scan the credit card information (Gee, 2014).
For protecting the system, first of all the default password must be changed. If the system is
maintained by a third party vendor, then the policies regarding the passwords must be discussed.
The same passwords must not be allowed for use by the vendors as it does for other clients.
Moreover, antivirus software must be installed on the POS system (Pofeldt, 2014).
Privacy- POS systems contains all sorts of personal information including name, address, email
address, city, state, birthday, credit card information, purchase history, in- store video
monitoring, etc. hackers hack these systems of the companies with the help of server hacks,
spyware, etc. and obtain the such information for their own purposes (Point of Sale, 2017).
Privacy of the data of customers can be protected with the help of updating the POS on regular
basis with relevant security patches. Moreover, employees must also be trained to follow security
protocol (Restaurant POS Central, 2016). Multi-biometric systems can be used as it allows

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extraction of secure identifiers and ensures that the privacy of the users biometrics is not
compromised (Climato, Gamassi, Piuri, Sassi & Scotti, 2009).
Confidentiality- The confidence of the consumers of the Four Seasons is under threat as a result
of a confidentiality breaches. When the information of the customers is accessed by someone
who is not authorized to view it, the confidentiality is breached.
Various softwares available in the market can be utilized for protecting the confidentiality of the
data of the consumers. Such software protects the confidential data against the known, unknown
and emerging threats. It protects the POAS machines from malware and external threats along
with providing reliable VPN connectivity (Check Point, 2018).
Conclusion
Therefore, it can be concluded that the best use of technology is made by the garden centre for
the benefits of the business. The use of POS systems has allowed this organization to gain
operational efficiency and competitive advantage by taking the best advantage of the business
data (POS Nation, 2018). Moreover, this system helped in efficient decision making relating to
the production of items and has ultimately resulted in higher profits.
Recommendations
It is recommended that the hardware and software must be updated on regular basis by the
garden centre in order to protect the security, privacy and confidentiality of the data of the
consumers. Moreover, WAN can also be utilized for establishing telecommunication network
which will be linked with a remote location.

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References
Check Point. 2018. Retail / Point of Sale (PoS), [Online]. Available at:
https://www.checkpoint.com/products-solutions/retail-point-of-sale-pos/ [Accessed on: 18
January 2018].
Climato, S., Gamassi, M., Piuri, V., Sassi, R. and Scotti, F. 2009. A Multi-biometric Verification
System for the Privacy Protection of Iris Templates, [Online]. Available at:
https://link.springer.com/chapter/10.1007/978-3-540-88181-0_29 [Accessed on: 18 January
2018].
Gee, S. 2014. Fraud and Fraud Detection: A Data Analytics Approach. John Wiley & Sons.
Griff, M. 2014. Professional Accounting Essays and Assignments. Lulu Press, Inc.
Hiiemaa, K. 2015. What is a POS System?, [Online]. Available at: https://erply.com/pos-system/
[Accessed on: 18 January 2018].
Kimmons, R. 2017. The Disadvantages of a Point of Sale System, [Online]. Available at:
https://bizfluent.com/list-6729611-disadvantages-point-sale-system.html [Accessed on: 18
January 2018].
Park, J. J., Adeli, H., Park, N. and Woungang, I. 2013. Mobile, Ubiquitous, and Intelligent
Computing: MUSIC 2013. Springer Science & Business Media.
Pofeldt, E. 2014. How can I protect my point-of-sale system against security breaches? ,
[Online]. Available at: https://www.creditcards.com/credit-card-news/secure-
point_of_sale_system-breaches-1585.php [Accessed on: 18 January 2018].
Point of Sale. 2017. Privacy At Risk: Should You Be Worried?, [Online]. Available at:
https://pointofsale.com/201512078525/Point-of-Sale-News/Privacy-at-Risk-Should-you-be-
Worried.html [Accessed on: 18 January 2018].
POS Nation. 2018. Garden Center POS System, [Online]. Available at:
https://posnation.com/garden-nursery-hardware-pos/ [Accessed on: 18 January 2018].

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Rainer, R. K. and Cegielski, C. G. 2010. Introduction to Information Systems: Enabling and
Transforming Business. John Wiley & Sons.
Restaurant POS Central. 2016. Protect Your Reputation and Customer Credit Card Information
with POS System Security, [Online]. Available at:
http://www.possystemrestaurant.com/features/pos-system-security/ [Accessed on: 18 January
2018].
Schroeder, C. L. 2007. Specialty Shop Retailing: Everything You Need to Know to Run Your
Own Store. John Wiley & Sons.
Solution Dots. 2016. Top 25 Advantages of Point of Sale System, [Online]. Available at:
https://solutiondots.com/blog/point-of-sale-system.html [Accessed on: 18 January 2018].