Detailed Analysis of POS System and Its Implementation: A Case Study

This report provides a detailed analysis of a Point-of-Sale (POS) system and its potential implementation at Four Seasons Greenhouse and Nursery, a small organization. The report explores the advantages of POS systems, including improved efficiency, stock management, accurate reporting, and error detection, alongside disadvantages such as cost, system downtime, connection reliability issues, security risks, and web-based POS problems. The analysis extends to the benefits of a competitive position and centralized database, emphasizing robust functionality, real-time monitoring, and improved data security. The report discusses decision-making facilities enabled by POS systems and recommends Local Area Network (LAN) with wireless technologies for telecommunication. It identifies associated risks like unauthorized access, privacy breaches, and confidentiality issues, and suggests protective measures such as firewalls, end-to-end security software, and double encryption. The report concludes that POS systems are essential for Four Seasons Greenhouse's operations, offering recommendations like employee training, regular equipment cleaning, data backup, and consultation with IT professionals. The report leverages a case study approach, providing practical insights and recommendations for the effective implementation and management of POS systems.

Running head: POS SYSTEM-CASE STUDY
POS System-Case Study
Name of the Student
Name of the University
Author Note

1POS SYSTEM-CASE STUDY
Executive Summary
The purpose of this report is to provide a detailed analysis of POS System and its potential in
Four Seasons Greenhouse and Nursery. The report focuses on benefits and limitation of POS
System including risks associated with the system. The recommendations are also provided
which Four Seasons Greenhouse and Nursery should consider for maintenance and proper use of
POS System. The final outcome of this report shows that there are risks however it can be
mitigated with the help of recommendations provided at the end of this report.

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Table of Contents
Executive Summary.........................................................................................................................1
Introduction......................................................................................................................................3
Discussion........................................................................................................................................3
POS Systems- Advantages and Disadvantages...........................................................................4
Advantages of POS System.....................................................................................................4
Disadvantages of POS Systems...............................................................................................4
Advantages of Competitive Position and Centralized Database.............................................5
Decision making facility..............................................................................................................6
Telecommunication option..........................................................................................................7
Risks associated with POS System..............................................................................................7
Protective measure for risks.........................................................................................................7
Conclusion.......................................................................................................................................8
Recommendations............................................................................................................................8
References........................................................................................................................................9

3POS SYSTEM-CASE STUDY
Introduction
The POS System is referred to as point-of-sale system. The POS System is used for
simplifying the process of transaction in an organization (Sularto, 2016). The report focuses on
POS System description and implementation in a case study given in this report. The case study
of Four Seasons Greenhouse and Nursery is taken in this report. The Four Seasons Greenhouse
and Nursery is a small nursery similar to a small organization. The purpose of the report is to do
complete analysis of POS Systems, its advantages and disadvantages, telecommunication option,
associated risks and recommendations.
The outline of the report is POS Systems advantages including competitive and
centralized database advantages, disadvantages, decision making facility, telecommunication
option recommendation, and risks and recommendations.
Discussion
POS System is a system which is used in organizations for transaction process including
other features such as inventory management, stock transfers, supplier record and bookkeeping
(Rahman and Ripon, 2014). The system tracks and stores the transaction record for further use.
The below paragraphs discuss the detailed analysis of POS System.
POS Systems- Advantages and Disadvantages
Advantages of POS System
The advantages are efficiency, stock management, accurate reports and error detection
(Eskandari, Clark and Hamou-Lhadj, 2016). The first one is efficiency which shows that it will
provide improved efficiency to Four Seasons Greenhouse and Nursery. This will be achieved

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through automatic input of large amount of data and storage of data in the system unlike
traditional systems. The speed rate of the entire transaction process is faster than that of
traditional system. The second one is stock management which is achieved by digitally entering
stock data and analyzing the data at a glance without any time consuming and complex work.
The third one is accurate reports which are achieved by eliminating guesswork of any transaction
details including purchased, discarded and sold order details (Ramos and Castro, 2017). The
fourth one is error detection which is achieved by this system to detect error and at the same time
rectify the error.
Disadvantages of POS Systems
The disadvantages are cost, system down due to power failure, connection reliability,
security risks and web-based POS problems. The first one is cost which shows that the POS
System is costly to implement and maintain. The software in POS System used needs to be
upgraded on a daily basis to prevent any malfunction or any future risks. The upgrading of
software need to be licensed and for that the organization has to pay. The second one is system
down due to power failure which shows that system can be down due to power failure which can
result in loss of sensitive data. System down due to sudden power failure may result in damage
of hardware and the whole process will stop functioning (Sularto, 2016). The third one is
connection reliability which shows that to operate a POS System a reliable connection is required
that is Internet connection is required. The Internet connection facilitates the functioning of POS
System. Unavailability of Internet connection or Internet outage will result in complete halt of
operation and function. The fourth one is security risks which show that POS Systems has risks
associated to the system including exposing of sensitive information of customer such as credit
card details (Ardakani, Ardakani and Ardakani, 2015). The fifth one is web-based POS problems

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which show that there is a monthly subscription associated with the web-based POS Systems and
it is costly to purchase.
Advantages of Competitive Position and Centralized Database
The advantages of competitive position of Four Seasons Greenhouse and Nursery due to
POS Systems are robust functionality, real time monitoring and analysis, and accuracy. The first
one is robust functionality of POS System that provides functions including inputting, tracking
and distributing data. This ensures efficiency and helps to manage the business operations. The
second one is real-time monitoring and analysis provided by POS System which helps in
evaluation of data related to sales (Muyo, Balute and Gonzales, 2017). The data is evaluated to
assess the transaction details across Four Seasons Greenhouse and Nursery for development in
business functions. The third one is accuracy which helps in producing accurate reports in less
time and without any manual work. The accuracy helps Four Seasons Greenhouse and Nursery
to focus primarily on managing business rather than consuming time on manual operations and
functions.
The advantages of centralized database in POS System in Four Seasons Greenhouse and
Nursery are preservation of data is improved, improvement in physical security, improvement in
data security. The other two are reduced costs and improvement in reliability and updated speed.
The first one is improvement in preservation of data which helps to preserve data in any
condition including harshest conditions. This is achieved by in-built fault tolerance setup and
redundant storage which is used for preserving data. The second one is improvement in physical
security which restricts any unauthorized person from accessing data in centralized database. The
database offers proper security for storage for separate server rooms to restrict access to a
particular location in server room. The third one is improvement in data security which shows

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that centralized database helps to provide security across POS Systems database locations in
Four Seasons Greenhouse and Nursery (Kaur, 2017). The fourth one is reduced costs which
show that the centralized database management is less costly than distributed database in POS
System. The reduced costs also help in reducing the overall requirement of storing and
processing data in Four Seasons Greenhouse and Nursery. The fifth one is reliability
improvement and speed update which helps in reducing redundancy and ensures reliability of
data. The update speed advantage helps in updating of data at any time any, at any place,
irrespective of geographical boundaries.
Decision making facility
The decision making facility through POS System is achieved due to management and
maintenance of accurate inventory data in Four Seasons Greenhouse and Nursery. The accurate
inventory data helps in evaluation of products or services ordered, purchased, discarded and sold
through POS Systems in Four Seasons Greenhouse and Nursery (Bin Syed et al., 2016). This is
then analyzed to get an understanding and knowledge of past, present and future business
operations in Four Seasons Greenhouse and Nursery. This evaluation and analysis helps to
improve efficiency in business operations. The tracking of information cannot be done manually
as it is time consuming and time management cannot be achieved through manual information
tracking. The question related to POS System that could be answered is how much product or
services to order by accessing accurate reports. The other question that could be answered is how
many products and services purchased, discarded and sold to help in facilitation of decision
making. The information through POS System is used to manage the business operations
efficiently and effectively, and to track record of profit and loss of products and services.

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Telecommunication option
The network to be used for POS System is Local Area Network (LAN). The reason for
this network option is that Four Seasons Greenhouse and Nursery is a small organization and
situated in one particular location. The centralized database is provided by Local Area Network
(LAN) for data storage in Four Seasons Greenhouse and Nursery (Freeman, 2015). The wireless
technologies should be used as media which provides mobility and reliability to the services
provided by Four Seasons Greenhouse and Nursery. The wireless technology helps to do
business operations regardless of geographical boundaries. MPOS System or Mobile Point-of-
sale System should be used to speed up the business operations in Four Seasons Greenhouse and
Nursery (Lowry, 2016).
Risks associated with POS System
The security risks associated to POS Systems are unauthorized access by the
unauthorized people or attackers. The attackers steal the important information such as
customer’s credit card details or debit card details which can lead to huge financial loss. The
privacy risks are those risks which can result in lack of trust among customers. The privacy risks
are hazardous in nature and should be handled properly. The confidentiality risks are breaching
of data to misuse and gain access to customer’s details stored in POS System resulting in cyber
security (Thing, 2014). These risks are correlated with each other and they should be handled
properly.
Protective measure for risks
The recommendations for the above risks that are security risks, privacy risks and
confidentiality risks respectively are given in the following points.

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 To use firewall between networks used in POS System
 To implement end-to-end security software for complete security system
 To use double encryption that is to double encrypt the data for better protection.
Conclusion
The above discussions conclude that implementation of POS System in Four Seasons
Greenhouse and Nursery is helpful and can provide benefits. The discussions also show that
there are disadvantages and risks associated with the POS System however they can be avoided
by using proper measures. Therefore, it is deduced that POS System is essential for proper
functioning of Four Seasons Greenhouse and Nursery’s operations. The recommendations
provided at the end of this report should be taken into account to leverage the potential of POS
System.
Recommendations
 To train employees for proper use of POS Systems.
 Regular cleaning of equipments of POS Systems.
 To backup important document daily for future use.
 Consulting Information Technology professionals to handle the system.
 Placing the system in a ventilated area due to heat generation from the system.
 To improve electronic services to get full potential of POS System.

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References
Ardakani, S.H.M., Ardakani, M.S. and Ardakani, M.F., 2015. A study about customer
satisfaction of e-service quality of point of sale (POS). Global Journal of Management And
Business Research, 15(9).
Bin Syed, S.J.A.N., Mohamad, N.N.S., Rahman, N.A.A. and Suhaimi, R.D.S.R., 2016. A Study
on Relationship between Inventory Management and Company Performances: A Case Study of
Textile Chain Store. Journal of Advanced Management Science.
Eskandari, S., Clark, J. and Hamou-Lhadj, A., 2016, July. Buy Your Coffee with Bitcoin: Real-
World Deployment of a Bitcoin Point of Sale Terminal. In Ubiquitous Intelligence &
Computing, Advanced and Trusted Computing, Scalable Computing and Communications, Cloud
and Big Data Computing, Internet of People, and Smart World Congress
(UIC/ATC/ScalCom/CBDCom/IoP/SmartWorld), 2016 Intl IEEE Conferences (pp. 382-389).
IEEE.
Freeman, R.L., 2015. Telecommunication system engineering(Vol. 82). John Wiley & Sons.
Kaur, M., 2017, January. Demonetization: Impact On Cashless Payemnt System. In 6TH
International conference on Recent Trends in Engineering, Science & Management, ICRTESM-
17(Vol. 8).
Lowry, C., 2016. What's in Your Mobile Wallet: An Analysis of Trends in Mobile Payments and
Regulation. Fed. Comm. LJ, 68, p.353.

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Muyo, P.A., Balute, A.A.N. and Gonzales, D.B., 2017. The Development of the Authorized
Valve Distributors POS Data Management System. International Journal of Computer
Applications, 167(6).
Rahman, M. and Ripon, S., 2014. Elicitation and modeling non-functional requirements-a POS
case study. arXiv preprint arXiv:1403.1936.
Ramos, Y. and Castro, A.O., 2017. Point-Of-Sales Systems in Food and Beverage Industry:
Efficient Technology and Its User Acceptance. Journal of Information Sciences and Computing
Technologies, 6(1), pp.582-591.
Sularto, L., 2016. Refinement and user acceptance test of accounting information system for
restaurants SMEs. Journal of Internet Banking and Commerce, 21(2), p.1.
Sularto, L., Wardoyo, W., Yusnitasari, T. and Sjafrina, F., 2014, December. Software
Development Point of Sales (POS) and Accounting Reporting for SMEs Restaurant.
In Proceeding of the International Conference on Big Data & Analytics for Business. Society for
Education & Research Development.
Thing, V.L., 2014, December. Cyber security for a smart nation. In Computational Intelligence
and Computing Research (ICCIC), 2014 IEEE International Conference on(pp. 1-3). IEEE.

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