- Impact of IT For Business
- Answer 1. What are the advantages and disadvantages of the new POS system? (300)
- Answer 2.How will this POS system help the business in gaining competitive advantage? (300)
- Answer 3.What are the advantages of having a centralized database? (300)
- Answer 4. How could this POS system facilitate decision-making? (300)
- Answer 5. Recommend telecommunication options for POS (300)
- Answer 6. What types of risks does the POS system brings and how to protect the business against the risks?
Impact of IT For Business
It abolishes the chances of human error and plays a role in saving money for the company in the long run
The POS system encompasses the usage of bar codes, which helps in record maintenance regarding the products. This also makes disseminating the services to the customers a lot faster and easier (Cunningham et al., 2015)
The records of the units sold and the units left in stock is very effectively maintained and it helps the company to serve the products that are in constant demand to the customers, effectively, by maintaining a steady supply of the products from the stock
Inventory management at Four Seasons Greenhouse and Nursery is made a lot easierwith the implementation of the POS systems
Some of the owners of the company had no idea that a few products that they had been dealing inactually had caused substantial loss to the company. Implementation of the POS systems in the Four Seasons Greenhouse and Nursery actually helped the managers to recognize the products that were profitable for them and the products that threatened to affect the revenues earned by the company
Continuous updates of the software-based POS have to be carried out by the company in order to ensure that the software function fine and the information of the stock are available for reference at any time (Wang et al., 2015)
The POS systems require constant internet access for the normal functioning of the systems. If internet connections are not available then the information cannot be shared over the POS systems and this might cause delay and inconvenience for the customers
There are associated security risks with the POS systems. Many customers nowadays buy products from the shops utilizing the debit and the credit cardsand the information of the same remains in the servers after the swipe; this has a potential threat of exposure of the sensitive information of the bank details if the POS systems are unethically and illegally hacked or gained access into, without permissions.
The detailed sales report helps to track the profit and loss statement associated with the various products that Four Seasons Greenhouse and Nursery deals in (Russell et al., 2015). This helps the management to upgrade the products that are in demand in the market and to manufacture more such products while the products that are experiencing lower sales in the market needs to be either eliminated from the stocks or sold at a cheap price. This helps the company to manage the stock efficiently, which is necessary for the businesses to thrive in the market
The improved customer services like the prompt replies to whether the products are available in stock or not and the faster transaction methods enabled by POS, satisfies the customers largely. The customer satisfaction is a big factor for gaining competitive advantage against the rival companies.
Few products tend to be sold at certain times of the day. This can be revealed by the POS systems. This enables the organizational staffs to arrange the items in the display at those particular times of the day, in order to boost the sales of the company; this also renders competitive advantage to the concerned company.
The POS systems can be used for managing the loyalty programs efficiently (Spaeth et al., 2017). The customers at Four Seasons Greenhouse and Nurserycanbe given special discounts if they have been associated with the company for long periods. This might increase the popularity of the products among the customers as well as boost the business. The management of the loyalty schemes and storing the details of the customers is a tedious job, which requires lot of attention to be effectively managed; the POS system does just that. This, in turn, helps Four Seasons to gain competitive advantage over its rivals since no other nursery or greenhouse offers such customer loyalty schemes.
Data integrity- The integration of the data minimizes the issue of data redundancy. The entire data is stored at a single place that helps in the fostering the reliability.
Data Security- The data being stored at a single place ensures the fact that data theft or attack can be from one possible source. Single data base helps in minimizing tampering of data (Terzi et al., 2015).
Cost reduction- The overall cost of the company is reduced as the database is single. The maintenance of the same is easier for the company. Hence, though the initial cost of the making one single database is huge, later the cost is reduced for companies.
Improving speed- The centralized storage form employs a higher quality of components and redundancy that makes this storage more reliable than other storage forms. The centralized database storage facilitates comprehensive data access and virtualization procedures.
Data sharing- COMPASS data repositories and the experienced programming staffs help in the export as well as creation of data into many different formats. On certain request the data dumps can be created in the required format in order to share with other informatics systems. If the data is stored in a particular location it can be accessed by multiple sites with managing the multiple privileges.
Disaster recovery- COMPASS data repositories are regularly backed up and can be restored if there is any server failure or malfunctioning or occurrence of any type of natural disaster. Hardware redundancy is also managed at the infrastructure as well as the server level. This helps in maintain about 99% system uptime can be minted (Solberg et al., 2017).
The sales history can be maintained and help to adjust the buying decision for the seasonal purchasing. The pricing accuracy of the integrating bar codes, credit card and scanner can be improved with the authorization ability of the POS.
LAN: Local area network is a type of computer networks that interconnects different computers within a very limited area such as school, laboratory, residence, university campus (He et al., 2015).
WAN: wide area network is a type of telecommunication computer network that extends over a very large geographical distance.
MAN: it’s a type of metropolitan network that interconnects users with different computer resources within a geographic region.
The wireless as well as wired cables can be used for the connection purposes.
A wireless network is a type of the computer network that uses the wireless data connection between the network nodes (Dua et al., 2014). This method is used at home, telecommunication network and also by business installations as it helps in reducing the cost of introducing cables into building. They provide the network connection in a more efficient manner and a higher speed. Multiple gadget can use a single network and fiunction.
One of the main solutions to avoid the risk of POS system is to access governance. In addition to this, the organization can also separate the access of the internet from the POS system with the firewall. This will prevent the hackers from hacking the system and at the same time, this will ensure safety in the transaction process of the POS system. Apart from this, in order to protect POS system from any kind of risk, the organization should make sure to disable SSID broadcast. The management of the organization should also disconnect or monitor the network ports, which will help in avoiding the risk in the POS system (Orr et al., 2015). Apart from this, the management of the organization can isolate the POS application with the help of the network segregation. In addition to this, in order to avoid the risk in the POS system, it is very important for the management to enable the strongest possible data encryption.
Cunningham, C., Good, T., Kearney, S.P., Miraglia, M., Amundsen, T., Giordano, P., Wang, Y.P. and Zhu, X., Metrologic Instruments Inc, 2015. Point of sale (POS) based checkout system supporting a customer-transparent two-factor authentication process during product checkout operations. U.S. Patent 8,976,030.
Dua, R., 2014. Method and apparatus for managing credentials through a wireless network. U.S. Patent 8,700,729.
He, Z., 2015. Local area network. U.S. Patent 9,106,427.
Orr, R.N., Lemley, D., Hotchkies, C.J. and Dehoux, J.L., Atx Innovation Inc, 2015. System and method for interfacing a client device with a point of sale system. U.S. Patent 9,195,982.
Rahmani, M., Eyvazloo, N. and Nasrollahi, M., 2016. Improving Inventory Control in Production Process using Value Stream Mapping (VSM) and Production Line Simulation using Software Arena in urban economic centers (Case Study: Iran Bushing and Bearing Company).
Russell, S., Dewey, D. and Tegmark, M., 2015. Research priorities for robust and beneficial artificial intelligence. Ai Magazine, 36(4), pp.105-114.
Solberg, L.I., Ferguson, R., Ohnsorg, K.A., Crain, A.L., Williams, M.D., Ziegenfuss, J.Y., Boggs, J.M., Neely, C., Brooks, L., Molitor, B.A. and Monkman, J., 2017. The Challenges of Collecting and Using Patient Care Data From Diverse Care Systems: Lessons From COMPASS. American Journal of Medical Quality, 32(5), pp.494-499.
Terzi, D.S., Terzi, R. and Sagiroglu, S., 2015, December. A survey on security and privacy issues in big data. In Internet Technology and Secured Transactions (ICITST), 2015 10th International Conference for (pp. 202-207). IEEE.
Wang, B., Zheng, Y., Lou, W. and Hou, Y.T., 2015. DDoS attack protection in the era of cloud computing and software-defined networking. Computer Networks, 81, pp.308-319.
Spaeth, P., Shimko, B., Levy, P., Toibero, L., Garton, B., Black, M., Salters, M. and Mazour, J., Visa USA Inc, 2017. Opt-in/opt-out in loyalty system. U.S. Patent 9,852,437.