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Impact of IT on Business



Point of Sale system is a pointor location where the transaction or a ‘check out’ takes place. The systems are able to track the internal stock and reschedule the restocking from the external source. This management of inventory is an importantaspect of the business of garden company. It is mainly mapping out everything about inventory management which deals with replacement lead time, carrying cost of inventory, inventory and demand evaluation, stock visibility, forecasting of price, quality management, and management of return policy.

Advantages and disadvantages of POS system

POS system is an automated system. It can be integrated in existing inventory control of the management. When POS system was applied to garden company, they were able to automatically reduce the work, expenses and time associated withrunning the business. The system helped the management of the garden company to keep track of the popularity of each item and the quantity of each item sold so that restocking can be effectively managed. The system helps to track seasonal growth patterns and those related to certain events so as to plan appropriate inventory management (Reyhanoglu, 2014). On the flip side POS system requires an initial cost of setup. Apart from that, it needs regular updates. These have to be scheduled or the vendor is to be allowed to download and install them. These require a maintenance fee on a regular basis. Each technology comes with its own pros and cons. POS system also poses their own kind of security risks ( Ahn, Moon, Kim, Shin, & Kim, 2012).  POS systems are connected to a central network which has its own drawbacks. Security breach can happen if the system is not updated on a regular basis. This could also mean leak of sensitive and protected data like bank details.

POS system helps the business to gain competitive advantage

With an effective POS system in Placedgarden Company is at a competitive advantage. POS systems fast track transactions and remove the need to keep the customer waiting in line( Huang, Dyerson, Wu & Harindranath, 2015). This enhances the shopping experience for the customer making him want to come back for more. POS system helps by hourly data reporting.to give a clear insight into times when there is need for more staff and when there is not much requirement of staff. If there are not enough employees to answer queries of customers and retrieve merchandise when needed, then the customer is bound to go elsewhere for better service. The garden company can keep itself refreshed in the customer’s memory by keeping in touch through social media and mail. POS systems help can in marketing of the garden company’s products across various channels. If the customer came to buy a particular product which is not in stock, then he is bound to go looking somewhere else. The POS system applied at the garden company helps in keeping inventory updated and driving sales by keeping it sufficiently stocked. By using a POS system, the garden company is able to allow tech savvy customers to pay in whatever mode they wish. This in turn helps drive sales and retain customer loyalty.

Advantages of having a centralised database

Centralised database storage offers some substantial advantages to the customers of the Four Seasons Greenhouse and Nursery. The centralised storage often includes a backup which allow preservation of data. The system can continue in spite of hardware failure which generally happens in case of localised computational networks. Tablets and laptops might get stolen or lost and an unattended PC is susceptible to access by anyone. Centralised storage and server room security restricts access to a small number of people. Data storage in the centralised version helps in keeping critical information safe as it implements encrypted virtual private networks, firewalls and rigorous password protection (Iacobucci, 2014). Centralised system put the garden company at an advantage by reducing the costs. It is economical and less space consuming to maintain combined storage system than to run multiple ones at multiple locations.

Facilitation of decision making by POS system

The new technology in the form of POS system helps accelerate decision making process and drive up sales. The implementation of POS system enables sales associates to leverage the system, deliever product recommendations, resolve queries and many other concerns. The decision making process of the garden company was further heightened by charting out information related to customers such as product preferences which helps in responsiveness to customer needs. For example, promotional messages will most likely be delivered to the inbox of specific individuals who are more likely to be interested in the product. POS systems can be effectively integrated into the inventory management system of the organisation. The implementation of the POS system at the garden company helped to stock up the inventory, streamlining order fulfilment, empowering the staff to service the customer effectively, retrieve the demanded product and even drop ship it if necessary. The system helps the Four Seasons Greenhouse and Nursery to act more effectively because of analytics and reporting capability which help in interpreting business trends and accurate forecasting. The statistics generated bythe POS system helps to better manage the business by providing access to quick-glance at sales numbers, staffing levels, trends, and location dashboards. Moreover the information can also be tracked manually and effectively fulfilling an order.

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