Information Technology for Businesses
This report will illustrate how businesses which have embraced innovation through IT apply real time monitoring, enhance customer experiences, utilize more systematic management systems, and make better informed decisions. The report utilizes the case of an organization based in Colorado, Four Seasons Greenhouse and Nursery. It will evaluate the benefits of information technology, its nature, drawbacks, and issues that should be checked when applying technology for a company. Table of Contents Introduction 4 Advantages and Disadvantages of POS System 4 Advantages of the new POS system 4 Disadvantages of the new POS system 5 Gaining Competitive Advantages through POS system 5 Benefits of a Centralized Database 6 Role of the POS system in Decision-Making 7 Recommendations on Telecommunication Options for the POS System 7 POS System Risks 8 Recommendations and Conclusion 8 References 10 Introduction The use of information technology in businesses is crucial.
In this case, IT refers to the use of computers for storage, retrieval, transmitting, and manipulating data or information in perspective of a business. The adoption of the new POS system enabled checking of items which remained in stock and order the most appropriate quantity of items. As a result, the firm eliminated the guesswork of contemplating on the number of units to order. The main reason for this inference is that the POS system enabled the enterprise to adapt the operation of lean inventory units. In this context, as supported by Moori et al. (2017), lean inventory units ensured that the firm operated effectively by eradicating the risk of running out of stock, losing sales, and reduced its stock keeping units.
Fixing the problems is a difficult task and might consume a lot of time and require a lot of funds which affect the profit margins of firms. Gaining Competitive Advantages through POS system The POS system will enable Four Seasons Greenhouse and Nursery to achieve competitive advantages. The firm enhances the process of pricing and searching inventory. Since the POS system allows the enterprise to obtain product and pricing information while interacting with the client, it facilitates excellent customer experience. In the contemporary marketplace, improved customer experience is one of the competitive advantages which businesses require (Kumar & Pansari, 2016). Since it is simplified and includes one database structure, end-users find it to use a centralized database. A centralized database facilitates access to data at the same time from a single location.
This way, it enables a firm to save on costs because it minimizes power supply, labor, and maintenance expenses. Due to its location, a centralized database allows a firm to undertake simple database administration and embrace the aspect of data portability. Role of the POS system in Decision-Making The POS system adopted by Four Seasons Greenhouse and Nursery facilitates decision-making processes. In this case, Four Seasons Greenhouse and Nursery is classified as a small and medium-sized enterprise (SME). Hence, the most appropriate network type for Four Seasons Greenhouse and Nursery is the LAN (local area network). As illustrated by Sadiku (2017), LAN is a type of network with various network devices and computers linked together, usually within the same building. The rationale for using LAN in this firm is that the POS system requires high-speed connections which are facilitated by the LAN.
It is also less expensive compared to the other network types. The POS system poses privacy and confidentiality risks to the customer (Hashem et al. This is because the POS systems entail personal information such as names, addresses, zip codes, email addresses, purchase history, and credit card data. Hackers might illegally obtain such information, thereby interfering with the clients’ privacy and confidentiality. Recommendations and Conclusion From the discussion, it is evident that information technology is essential for businesses. Specifically, technology has had positive impacts on Four Seasons Greenhouse and Nursery. B. , Mokhtar, S. , Gani, A. , & Khan, S. U. A. A Lean Inventory Management Model as a Competitive Strategy Analysis Tool: Implications for Sustainability. Latin American Journal of Management for Sustainable Development, 3(4), 310-330.
From $10 to earn access
Only on Studyloop