Advantage And Disadvantages Of New POS System
Discuss about the Research Journal of Finance and Accounting.
In the era of digitalisation, IT has become one of the crucial aspects of the modern day business. It helps in smoothening of the business processes (Adeoti and Osotimehin, 2012). In different departments various technologies have been installed in different departments. POS systems help in the sales department. It helps in transaction processing that is done when purchase is being done. This data can be utilised by different departments for making of the decisions as per the requirements.
POS is one of the most significant technologies that help in the process of making business activities smoother. Some of the advantages of using POS systems are as follows:
- It assists management in finding crucial information from their transaction at sales.
- It removes manual errors in the recording data.
- It minimises the time that is taken for doing the sales transactions (Gomzin, 2014).
- Data redundancy is managed with the help of POS system.
- Timely details of transactions are monitored and stored.
- It helps in providing customer satisfaction which is necessary for CRM as its alerts people at the time of their transactions.
- It brings transparency in the work process and hence ensuring accountability of the overall unit.
- Cost of system maintenance is higher since regular upgrading of the technology is needed (Hansen and Sia, 2015).
- For maintaining the systems, specialist IT professional are needed.
- Several privacy and security risk is present as if when the system gets hacked then it may lead to heavy financial loses.
With the various benefits that POS offers to a business, it helps in providing competitive advantage to the firm (Hongqiang, 2011). This is so because it makes the decision effective with the help of data that is collected through various transactions. It also gives the idea regarding the products that is generating higher profits as well as the timing when the sale is highest. Both these data are crucial for making of the product related strategies hence giving competitive advantage to the firm that uses it. POS system speeds up the process of transactions and hence consumers do not have to wait for long at the time of billing. CRM plays a vital role in management and POS system due to its dynamic nature reduces the flaws in the work process. It also helps in reduction of additional workforce. Since Four Seasons Greenhouse and Nursery is in the developmental stage hence all these things gives them competitive advantage.
It is crucial for modern day firm like Four Seasons Greenhouse and Nursery to ensure that they have a centralised database system for managing the information. Several advantages are linked with the use of centralised database. Few of the advantages are:
- Since the location of attack is single hence the chances of getting hacked also remains at the lower side.
- At the time of decision making data can be easily availed as it is store the data collected anywhere at the central location (Pantano, 2013).
- Data management and portability becomes easier.
- Since in centralised data storage less number of resources is required hence it is highly cost efficient.
- Making alterations and data management is easier.
Data is the essential for making decisions effective. Since this system is capable of handling large amount of real time data hence it helps in making decisions that helps them in their growth (Polasik, et al., 2012). Since highly data driven approach is utilised hence POS helps in gaining edge in the market. Exact and accurate data is provided by the POS system which helps in making of decisions that are unique and is according to the need of the organisation. Evaluative and analysed decisions could be made based on the gathered data which also assist in finding loop holes in the operations.
POS Gives Competitive Advantage
Previously data was manipulated and stored by manual methods. It was considered to be a highly time taking process (Rese, Schreiber and Baier, 2014). There was higher probability of making wrong decisions. POS systems eliminate the data redundancy chances as well as data can be easily tracked. This has a specific significance in the case of real time data. The data that was gathered through manual methods cannot be easily sorted out for making of exact decisions. Use of POS helps the Four Seasons Greenhouse and Nursery in making of decisions that are of strategic importance. POS is also associated with ordering diminishing stock for finding the sellers who are doing well. Making of strategies like STP becomes easier and hence products that are attracting customers can be promoted.
It could be tracked with the help of manual methods also but it is relatively a slower process which is not suitable in the modern day business scenario. If the data gets tracked with the help of manual methods then there is always a chance that it could lead to wrong decisions. Even the whole process takes large human efforts. In manual methods the doubts regarding the accuracy of data is always present. In many cases manual tracking is not very effective as quick tracking of data could not be possible for instant decision making (Szell, Lambiotte and Thurner, 2010).
There are various types of question which could be answered through it especially once that are linked with transaction and sales. It also gives answers that are linked with choice of consumers or say the questions related with the trending products. It also up to certain extent provides the answers regarding the things which give them competitive gains. It also answers the questions related with changes that are required in the Four Seasons Greenhouse and Nursery based on the performance of several units (D’angello, 2018).
Information that is of strategic importance can be gathered with the use of POS systems. This data can be used for making changes in the operational procedures according to the flaws highlighted by the data of POS system (McCarthy, 2018). Since the gathered data acts a tool for elimination of inefficiencies in the business process hence a more sound management of business process is possible.
With the advancements in telecommunication sector there are several options available with the cited company. Selection of particular telecommunication option must be based on the requirement of the Four Seasons Greenhouse and Nursery. In this some basic and some advanced telecommunication options are available in the market especially regarding the type of network.
Advantage Of Centralised Database
Among the options that are available with the cited firm, taking use of LAN connection can be beneficial. Four Seasons Greenhouse and Nursery Company is at the developmental stage and it is having limited resource available with them hence this could be the best option. LAN also provides higher speed data connection.
Since the company has only one shop hence they can take use of the wired connection. This is because of three reasons first; it is easier to maintain second, it provides high speed connectivity and third, is that there is less chance of data leakage. Utilising Ethernet cable can be advantageous as they are of lower cost and data loss through such cables is least.
As it is also a part of IT system hence a large number of risks get associated with it. The cited firm needs to understand the type of risk and its impact on the business. Common risks linked with POS system are as follows:
- Security: Since data that is stored with POS system is present in large quantity hence ensuring their security becomes strategically important. If security gets breached then many information especially related with finance is at stake (Guinn, 2018). With the use of data protection software higher security could be provided to the POS systems.
- Confidentiality: POS systems have data that is linked with their stakeholders (Dontigney, 2018). For Example there are so many cards getting swiped through POS machine and hence confidentiality needs to be maintained. Data abstraction feature is also necessary so the lower level of staffs cannot be able to avail data of strategic importance.
- Privacy: Large amount of data is gathered in POS systems hence it becomes essential for the Four Seasons Greenhouse and Nursery to ensure their privacy. Data has become a challenge in the time when the number of hackers are highly active and aims to steal the data for their personal use (Expert market, 2018). If privacy is not maintained then it may blots the image of the Four Seasons Greenhouse and Nursery.
Conclusion
A conclusion can be derived from the above report that there are various advantages and disadvantages associated with the use of POS system. It is also essential that a Four Seasons Greenhouse and Nursery must utilise the data that is stored at centralised location. It helps in strengthening of the decisions that gives them competitive advantage. Telecommunication option like LAN facilities can be used. Along with this wired connectivity can be beneficial. Privacy, security and Confidentiality are some of the major risk that is posed to the POS systems. Huge amount of data loss can be possible if proper security measure are not adopted by the firms like Four Seasons Greenhouse and Nursery Company.
References
Adeoti, O. and Osotimehin, K., (2012) Adoption of point of sale terminals in Nigeria: Assessment of consumers’ level of satisfaction. Research Journal of Finance and Accounting, 3(1), pp.1-6.
D’angello, M. (2018) 7 essential POS system features for your retail business. [Online]. Available at: https://www.business.com/articles/essential-pos-features-retail-business/. [Accessed on 14th may 2018]
Dontigney, E., (2018) The advantages of Centralised Database storage [Online]. Available at: https://itstillworks.com/info-8623828-advantages-centralized-database-storage.html. [Accessed on: 14th May 2018].
Expert market (2018) Expert Point-of-sale. [Online]. Available at: https://www.expertmarket.com/pos/pos-system-advantages. [Accessed on 14th May 2018].
Gomzin, S. (2014) Hacking Point of Sale: Payment Application Secrets, Threats, and Solutions, John Wiley & Sons.
Guinn, J., (2018) What is point off sale system. [Online]. Available at: https://www.softwareadvice.com/resources/what-is-a-point-of-sale-system/. [Accessed on 14th May 2018]
Hansen, R. and Sia, S.K., (2015) Hummel’s Digital Transformation Toward Omnichannel Retailing: Key Lessons Learned. MIS Quarterly Executive, 14(2).
Hongqiang, Z., (2011) The Application of 3G Technology at Electronic Point-of-sale System [J]. Value Engineering, 12, p.170.
McCarthy, M., (2018) The benefits of Moving to a Point-of-sale (POS) System. [Online] Available at: https://www.allbusiness.com/the-benefits-of-moving-to-a-point-of-sale-pos-system-10206841-1.html. [Accessed on 14th May 2018].
Pantano, E., (2013) Ubiquitous retailing Innovative Scenario: from the fixed point of sale to the flexible ubiquitous store. Journal of technology management & innovation, 8(2), pp.84-92.
Polasik, M., Górka, J., Wilczewski, G., Kunkowski, J., Przenajkowska, K. and Tetkowska, N., (2012) June. Time efficiency of Point-of-Sale payment methods: Empirical results for cash, cards and mobile payments. In International Conference on Enterprise Information Systems (pp. 306-320). Springer, Berlin, Heidelberg.
Rese, A., Schreiber, S. and Baier, D., (2014) Technology acceptance modeling of augmented reality at the point of sale: Can surveys be replaced by an analysis of online reviews?. Journal of Retailing and Consumer Services, 21(5), pp.869-876.
Szell, M., Lambiotte, R. and Thurner, S., (2010) Multirelational organization of large-scale social networks in an online world. Proceedings of the National Academy of Sciences, 107(31), pp.13636-13641.
Hongqiang, Z., (2011) The Application of 3G Technology at Electronic Point-of-sale System [J]. Value Engineering, 12, p.170.
McCarthy, M., (2018) The benefits of Moving to a Point-of-sale (POS) System. [Online] Available at: https://www.allbusiness.com/the-benefits-of-moving-to-a-point-of-sale-pos-system-10206841-1.html. [Accessed on 14th May 2018].
Pantano, E., (2013) Ubiquitous retailing Innovative Scenario: from the fixed point of sale to the flexible ubiquitous store. Journal of technology management & innovation, 8(2), pp.84-92.
Polasik, M., Górka, J., Wilczewski, G., Kunkowski, J., Przenajkowska, K. and Tetkowska, N., (2012) June. Time efficiency of Point-of-Sale payment methods: Empirical results for cash, cards and mobile payments. In International Conference on Enterprise Information Systems (pp. 306-320). Springer, Berlin, Heidelberg.
Rese, A., Schreiber, S. and Baier, D., (2014) Technology acceptance modeling of augmented reality at the point of sale: Can surveys be replaced by an analysis of online reviews?. Journal of Retailing and Consumer Services, 21(5), pp.869-876.
Szell, M., Lambiotte, R. and Thurner, S., (2010) Multirelational organization of large-scale social networks in an online world. Proceedings of the National Academy of Sciences, 107(31), pp.13636-13641.
Order an Essay Now & Get These Features For Free:
Turnitin Report
Formatting
Title Page
Citation
Outline
