Write about the Effect of Technology on Businesses for POS System.
The POS (Point of Sale) systems in small businesses are mainly just registers of cash which are sophisticated. In 1970s, cash registers operated through a computer tended to become very popular and then started to give features such as the technology of the client-server, communications of peer-to-peer access that was remote and backups. Nowadays, the POS systems have standardized in the industry of hospitality and many businesses of retail level have customized the same. The systems of POS can be connected with the account of the merchant and they enable easy and quick acceptance of the transactions of the credit cards by the business. Since the systems of the POS have the ability to immediately process transactions as they happen, the business is able to enjoy increased efficiency of the employee, better and more accurate keeping of records. The systems of POS are specific to the industries and it’s possible to customize them.
Many businesses use the system of POS for various reasons which include efficiency. The system of POS that is right POS system may enable to get rid of any errors caused by human that may occur during the processing of transactions carried out by the employees. The system of POS stores information in a single place and well organized hence reducing the errors which leads to the processing that is fast and efficient. (Reeder, K.R., 2014)
Another benefit is simplifying information recording. This happens because the system of POS standardizes the transactions format. The storage of transactions is done on a computer that is central and when required they can be printed reducing any wastage that may occur.
Also, a POS system may be designed in such a way that it records each and every detail regarding a transaction, that is; the employee who carried out the task, total amount of the sales, services or items purchased, date and time of the transaction. This can be very useful when it comes to decision making.
The system of POS also helps in saving money to a great extent. Better track keeping of the inventory, making decisions that are more informed and saving time of the employees are very good ways that help in saving money and cutting the overall cost.
Apart from the benefits offered by the POS system, it also has some limitations which include the danger of security concerns. Customers are likely to divulge their PINs while using their debit cards to the other customers. Various systems try to take measures to of hiding keypads but they have not done it successfully. Furthermore, the system based on the web also is exposed to risks of security and privacy associated with internet-based businesses.
Another problem that comes with the use of POS is the regular updates required by the system for newer versions either from the company of the software or the manufacturer. Additionally, one needs to incur the cost of updating the hardware as well that comes along with the cost and complications of the updates of the system. These costs may have been invested in something productive for the business. (Rockoff, T.E. & Groves, M., 2015)
The POS that is web based used comes with additional costs whereby one is required to pay for the access of the internet on the registers together with a fee to the provider that comes monthly.
A POS that is integrated is able to track and manage inventory on top of offering storage tools and management of the data of the customer that if done manually would have been time consuming and not effective due to some errors and omissions. Small business such as the Greenhouse of the Four Seasons, offering them the level of information detailed in that manner may help them to transform their small business. This in return would help them to generate campaigns that are personalized, begin programs or loyalty and expect more revenue. The Garden center was able to produce a report of a customer regarding their history of purchase that is detailed and hence the business develops the ability to focus and put more effort in the targeted products which makes the business to become effective in terms of marketing and in efforts of outreaching. The data that is trending in the merchandise and sales may be used in making decisions that are smart regarding the inventory. With the provision of such reports regarding the merchandise and customers, the business is able to avoid over ordering of products which saves some good money the budget of the inventory. (Beach, D., 2011)
Use of a centralized database helps the retailers to get POS stations at a level of property at every location that is connected to the central server. The connected systems offer reports of real time to the corporate offices on the habits of buying of the customers, management of the inventory and labor, costs of the company and orders of products that are online. Customers are also offered with valuable insight of purchasing and information on preference which could be essential in enhancing the experience of the shopper through programs of loyalty that are tailored. Through that, the business is able to begin the foundation of the data needed to compete in future.
Customers are able to shop in real time. New techniques of processing that are in-memory makes it possible to analyze fast data of huge volumes and roll-ups that are sub-second roll-ups. This enables the marketing, merchandising and the managers of operations to dice and slice billions of records of transactions. Views that are prebuilt and optimized for the mobile and web users makes it possible for an organization to analyze the data that is centralized in an easy manner when required. (Benco, D. et al., 2010)
Another benefit is that it becomes easy to maintain compliance. A system that is centralized enables retailers to facilitate easy compliance with regulations of the tax and the set standards globally in all locations. It eliminates the doubts as to which system is up to date and also the system that has complied with the security standards of the Data of PCI among other regulations. (Bemmel, V. and Mian, S., 2009)
In a centralized database, the costs of maintenance and the hardware may be reduced since it is possible to connect a large number of peripherals very easily and fast. This eliminates the need for locking oneself into contracts that are specific or brands in case new functions are required. The use of a single platform that is compatible with several systems of operation and environments of the server enables retailers in making changes in the future for accommodating the demands of the consumers for various channels of the retail and several payments types. Whichever product a customer may currently demand for or demand it in the future becomes possible to accommodate. And finally, the time a retailer gets ready in deploying payments that are mobile, each and every location can easily carry that out through the configuration that is central and distribution software which is automated. (Tillman, M., 2013)
The POS systems may be designed in such a way that they keep record of each and every detail concerning a transaction which include the person who carried out the transaction, the amount in total of the sales performed, the number or the services and products that were purchased and finally the date and time at which the transaction was carried out. All these operations are carried out accurately, timely and in detail. (Phillips, H. & Bradshaw, R., 2013)
The information is vital when it comes in decision making of the business. One is able to determine when a product is able to yield more in a year, the products that are adding or generating more revenue or income for the business, the employees that are providing less or more sales and whether the special promotions offered are giving the effect that is desired. Management of the inventory becomes more strategic and simple since the decisions made are based on the information that is real time. Many POS software provide the function of reporting that enables the owner of the business to come up with a sales list by category, by employee or by the date. All these specific details of reports offered by the POS system help in better decision making of a business. (Freeny Jr, C.C., 2015)
The technology suitable for this POS would be the metropolitan area network since it covers a large geographical area and enables sharing of resources by several computers. The wireless technology would also go hand in hand with the MAN as it best since its fast and easy and mobile too. The technologies to be used could be the WCDMA, GPRS and EDGE since they are fast and strong enough to support the system of the POS. (Labrou, Y. & Agre, 2010)
Attackers have tried to execute code that is arbitrary in the process browser of the user. For this to happen, the user is required to access a website or open the sent file by a hacker.
Another tactic used by intrude the privacy and security of the customer is through phishing. This can be done by the use of a single email of phishing or just the whole campaign whereby, a user is triggered to open an attachment or clicking a link. The attacks of phishing are spread widely and are affecting all industries which can be done through various ways such as:
Third-party vendors of the POS too have been a target in the campaigns of phishing whereby credentials that are stolen are used in gaining access to the network of the provider and networks of organizations of retail that are larger. (Goeller, M. and Lilly, C., 2012)
Attackers have also advanced through the use of software techniques that are advanced to evade being detected by the software of antivirus. The attackers place devices that read cards referred to as skimmers on the point of sale devices. The skimmers then copy the card numbers when users insert them. The attackers also attach cameras that are hidden together with the skimmers in order to record the numbers of the PIN when the users are typing them.
Various practices may be implemented to protect the business such as the use of a version of a software that is most recent, limiting the access of the employee for the PCs that are general purpose, choosing devices of the POS that are approved by the security council of standards of the PCI, adoption of tokenization, encryption that is end-to-end, and chip and pin, making sure that the default password that comes with the POS are removed so that hackers may not use them after acquiring them from the manufacturer. (Hills, R.R. and Nichols, H.R., 2010)
Conclusion
Based on the report detailed above, its clear that the use of the POS system has brought so many advantages to the business sector which include eliminating manual processing of transactions and report processing and managing and monitoring of the inventory. This has saved a lot of time and money for the businesses which may be used for further investments for the company hence increasing the profits. It has also enhanced better decision making for the businesses as the managers are provided with clear or real time reports of products which enable them to make prices for products that are real time. This has in return enabled businesses to compete with other businesses effectively enabling them to gain a lot. However, the POS experiences some short comings which hopefully will be dealt with in good time.
References
Beach, D., Braden, D., George, P.L. and Meredith, M., Sapient Solutions LLC, 2011. Computer based system for monitoring and processing data collected at the point of sale of goods and services. U.S. Patent 5,924,077.
Bemmel, V. and Mian, S., YOU Technology Inc, 2009. Method and system for providing biometric authentication at a point-of-sale via a mobile device. U.S. Patent 7,512,567.
Benco, D., Mahajan, S., Sheen, B. and True, S., Lucent Technologies Inc, 2010. Processing merchant point-of-sale transactions using a mobile subscriber device. U.S. Patent Application 11/280,550.
Freeny Jr, C.C., FPDC Inc, 2015. System for reproducing information in material objects at a point of sale location. U.S. Patent 4,528,643.
Goeller, M. and Lilly, C., Visa International Service Association, 2012. Point of sale check service. U.S. Patent Application 09/810,945.
Hills, R.R. and Nichols, H.R., ChequeMark Patent Inc, 2010. Check writing point of sale system. U.S. Patent 6,164,528.
Labrou, Y. and Agre, J.R., Fujitsu Ltd, 2010. Wireless computer wallet for physical point of sale (POS) transactions. U.S. Patent 7,784,684.
Phillips, H. and Bradshaw, R., 2013. How customers actually shop: customer interaction with the point of sale. Market Research Society. Journal., 35(1).
Reeder, K.R., Lucent Technologies Inc, 2014. Point of sale method and system. U.S. Patent 6,014,636.
Rockoff, T.E. and Groves, M., 2015. Design of an Internet-based system for remote Dutch auctions. Internet Research, 5(4).
Tillman, M., 2013. Method and system for hosting centralized online point-of-sale activities for a plurality of distributed customers and vendors. U.S. Patent Application 10/386,886.
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