Discuss about the Point of Sale System for Operating Systems Review.
The fact that a business is established with an aim of making a profit, most of the entrepreneurs do not know whether they are making profits or losses. Management and continuous running of the business does not guarantee profit. Though these two aspects are crucial to the business performance, proper monitoring of business input and output in form of orders and sales are vital. Many businesses conduct their activities in the traditional way. That is, transactions done in a day are not recorded, sales are made and no stock taking is done, orders are done by observing the products that have been sold out without considering the rate at which it profits the business, cash can be handled by any staff in the business and no monthly reports or monthly analysis of the business performance. The traditional method has been ineffective in realizing profits because the business is at risk of misuse of assets by the staff since there is low accountability, during ordering of goods, there is a probability of prioritizing on goods that are not profiting the business by large margins and poor decisions concerning the business may be made due to lack of or inaccurate data of the transactions. Point- of-sale system is a technology that has been introduced in the businesses to centralize its operations. The system manages the operations of the business and stores the transactions records for future use. As asserted by Meagher (2014), the system is installed at the retail point of sale check out station. That is, it is the final stage passed by the customer during the purchasing process. The system comprises of a computer, cash drawer, receipt printer, a barcode reader and credit and debit card readers.
The system has led to tremendous growth and success of businesses (Stotenburg et al 2009). Its ability to store accurate and timely data has enabled the entrepreneurs to make relevant decisions pertaining the business. It makes the tracking process of data and distribution of information easy and this facilitates the management of the business. As according to Walker, Jorasch and VanLuchene (2003), the system is able to maintain a database of one upsell price that helps in the exchange of customer’s change that is inform of coins with the products purchased. During a transaction the system is in a position to update inventory and compile a sales history. This reduces the process of analyzing the sales history that is normally done manually at the closure time in businesses that have not adopted the system. In manual accounting process, many inventory units are used and this complicates the retrieval of information and increases paperwork. The system reduces the inventory units and this reduces the paperwork. As stated by Lambert, Wheeler and Rosenblatt (2007), enhancement in the point-of-sale system has enabled the system to provide the customer with rebate on purchase. This may encourage purchasing which indicates more sales ad high profits to the business. The system provides a receipt of the purchased good. This help in minimizing losses that may be caused by a cashier giving wrong balances to the customer. More often the customers check on the total cost of the goods and the balance and therefore are able to detect an error and give back the excess money. The use of barcode reader enables fast input of transaction and therefore reduces the time a customer takes to check out (Xian, Ellis, Good and Zhu 2013). From the sales history, the entrepreneur is in a position to make accurate orders and also able to identify the products that are more profitable. This helps him to maximize on the most profitable products. the regular storage and compiling of information enables timely reporting and this enables the managers to effectively run the business operations. The system also helps to access the cashiers’ performance. However, the system installation fee is high. Therefore, small and medium businesses find it difficult to invest in it. The operation of the system requires an individual who is computer literate. The training required for cashiers to learn the system may cost the business extra cost and time. The regular updating of the software and hardware of this system makes a business to incur extra cost. In case a customer opts to use a credit or debit card, there is a possibility of the customers Pin to be viewed by other customer. This possess a security risk. Though the system has many advantages, the disadvantages should also be considered during the installation and methods to avoid the disadvantages to be developed.
The ability of the system to enhance the customer check out speed ensures that the customer’s time spend in the store is relatively short. A business that maximizes on this advantage usually encourages customers to be purchasing in their store than from stores where checkout process is slow. As according to Moitra and Ganesh (2005), the system enables an enterprise to determine when to give promotions (p. 928). A business that offers promotions often encourages customers to be checking in for promotions chances. This earns more customers to the business hence high profits. As asserted by Teece (2010), the business reports enable a business to develop models and strategies that enhances productivity (p.186). The timely and accurate information obtained from the system enables the managers to develop strategies that gives them an upper hand in the competitive market. The high profits realized from the use of POS due to minimized risk of theft from the staffs can be channeled to advertisement of the business which creates a bigger market and increases the business popularity. For businesses that advances the POS system to a point that a customer can purchase and make payments of goods by using his mobile phone and the goods are delivered, this motivates more customers to use this method due to time limitations and hence earns more customers for the business (Qawami,Talaich and Farrell 2014).
A centralized database (CDB), that is, a database that is located, stored and maintained in a single location effectively facilitates the operations of a business. It makes it easy to access business information from a single source than from several databases. This help to save time and also reduces the risk of multiple or repeated data which could provide in accurate information to decision makers and hence affect the type of decisions made for the running of the business. As according to Garcia (2011), the data integrity is maintained in a CDB. That is, the database ensures that there is no redundancy of data. The CDB is also cost effective to a business. The process of installing multiple databases is relatively high compared to centralize since more materials and experts are required to maintain and run the systems (Ozsu and Valduriez 2011). Therefore, SMEs are in a position to develop this type of database in their businesses. From a centralized database it is easy to monitor transactions done by the cashiers and this therefore reduces errors during reporting. The CDB enables easy updating of data since the changes are visible by all users. This helps a business to save time and money. It also enables easy control of the data security. As stated by Berger et al (2008), an administrator can easily implement security policies of a centralized database than of a multiple one. From a CDB it is easy to obtain information and make reports that are used during decision making.
The ability of the system too input data through a barcode reader and record the transaction in an inventory unit in the database, and also to keep the stock records and issue orders for additional stock helps to effectively run the business operations. The information stored in the system can easily be accessed by the relevant people in the business. As according to Laudon (2016), it is easy to access information stored in pint-of-sale system by using a search tool. Since huge transactions are done it will be impossible to track information from this system manually. This will take a lot of time and increase paperwork. Search tools are therefore used to effectively access the information. The information from this system can be used to answer questions about the business. For instance, it can answer how much a business has made as profit for a given period of time? What is the quantity of stock required to be ordered? Which product is making more profit? At what rate are the products being bought? Therefore, the information is used to make decisions about the business. It can help to develop strategies that will be implemented to increase competitiveness in the market by either giving promotions, it also helps the decision makers to know the products to order in large quantities in terms of profit gain and this can help the business to develop.
It is very important for the businesses that consider installing point of sale system to consider the type of network to use. The interconnection of the computers within the business premises requires a local area network (LAN). The LAN connects computers over a short distance. It allows sharing of information among computers under one building. There are two types of media that can be used to transmit data in this POS. the wired medium which uses cables to transmit information. They include coaxial cables, fiber optic cables and twisted pair cables which are in two forms: shielded and unshielded twisted pair cables. The wired technology is less expensive compared to wireless connection; it is reliable since there is no interference as seen in the wireless technology. Though mobility is limited it ensures the security of the information of the business. Unshielded twisted pair cabling is most efficient in the wiring of the network since it eliminates electromagnetic interference; it is cheap and affordable and facilitates high data transmission. However, in areas where there is high electromagnetic interference, shielded twisted pair cabling should be used. for businesses that will implement the mobile phone use as a point of sale wide area network (WAN) is suitable where the media should be wireless. A wireless network uses radio waves to transmit data. There are several types of wireless technology. The satellite communication, infrared communication, microwave communication and Wi-Fi. They are not limited to distance and allow one to be connected from any location.
The POS system is very prone to hacking (Williams 2009). This poses a risk to the business information being accessed with a wrong motive. When customers’ information is hacked, it might be used for fraudulent purposes. This therefore calls the business to ensure that their system is secured. They should ensure the operating system of the POS system is updated regularly, the security system of the POS should be checked regularly and the system password should be changed from the manufacturer default password to personal password.
In cases of credit or debit card use during payments, the customer feeds his pin in the card reader. The pin may be visible to other customers who may end up frauding the customer. Perhaps the business should set aside a private space for feeding the cards details that enables the customer to feed the pin without being surrounded by other customers. For the business to ensure that their operations and information are private they should limit access to the information by indicating the level by which a cashier can reach the POS system (Popovic and Hocenski 2009, p. 347). That is, the cashier should not be in a position to access any information from the system.
Accessibility of information pertaining the business by untrusted staff or people poses a risk of theft and loss of assets. The business should ensure that there is an administration password that is only used by the manager to access the information.
Conclusion
The POS system is a technology that has brought tremendous growth to businesses. Though it is expensive to install, it has many advantages. Proper installation is important and use of the best cables is vital. However, the system is prone to insecurity and therefore the business should ensure it protects its information and that of their customers.
I highly recommend the adoption of this POS technology in all businesses for maximum profit gains.
References
Berger, S., Cáceres, R., Pendarakis, D., Sailer, R., Valdez, E., Perez, R., Schildhauer, W. and Srinivasan, D., 2008. TVDc: managing security in the trusted virtual datacenter. ACM SIGOPS Operating Systems Review, 42(1), pp.40-47.
Garcia-Molina, H., 2011, February. A concurrency control mechanism for distributed databases which uses centralized locking controllers. In BERKELEY CONFERENCE.
Lambert, G., Wheeler, A. and Rosenblatt, C., Capital One Financial Corp, 2007. Enhanced system and method for point of sale cash rebates. U.S. Patent Application 11/173,651.
Laudon, K.C. and Laudon, J.P., 2016. Management information system. Pearson Education India.
Meagher, M., Metrologic Instruments Inc, 2014. Bioptical point of sale (POS) checkout system employing a retractable weigh platter support subsystem. U.S. Patent 8,822,848.
Moitra, D. and Ganesh, J., 2005. Web services and flexible business processes: towards the adaptive enterprise. Information & Management, 42(7), pp.921-933.
Özsu, M.T. and Valduriez, P., 2011. Principles of distributed database systems. Springer Science & Business Media.
Popovi?, K. and Hocenski, Ž., 2010, May. Cloud computing security issues and challenges. In MIPRO, 2010 proceedings of the 33rd international convention (pp. 344-349). IEEE.
Qawami, B., Talaich, B.Z. and Farrell, M.J., Koin Inc, 2014. Enabling a merchant’s storefront POS (point of sale) system to accept a payment transaction verified by SMS messaging with buyer’s mobile phone. U.S. Patent 8,751,317.
Stoutenburg, E., Mollett, C.J., Price, J., Fillinger, C.A., Nelson, E.M., Seifert, D.A. and Singleton, J., First Data Corp and Western Union Co, 2009. Systems and methods for performing transactions at a point-of-sale. U.S. Patent 7,600,673.
Teece, D.J., 2010. Business models, business strategy and innovation. Long range planning, 43(2-3), pp.172-194.
Walker, J.S., Jorasch, J.A. and Van Luchene, A.S., Walker Digital LLC, 2003. Method and system for processing supplementary product sales at a point-of-sale terminal. U.S. Patent 6,598,024.
Williams, C., First Data Corp, 2009. System for managing risk of financial transactions with location information. U.S. Patent 7,500,607.
Xian, T., Ellis, D., Good, T. and Zhu, X., Metrologic Instruments Inc, 2013. Bar code symbol reading system supporting visual or/and audible display of product scan speed for throughput optimization in point of sale (POS) environments. U.S. Patent 8,448,863.
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