A POS system based on the remote client‐server model in the small business environment

Purpose – In traditional point‐of‐sale (POS) systems, an in‐house database server processes all sales transactions it receives from local client computers. Such systems incur high costs because of operational requirements, such as professional maintenance, the sophisticated server hardware required, and scalability requirements. For small retailers that want to use POS systems but have relatively limited financial resources, these expensive operational requirements are big obstacles. Considering these issues, the purpose of this paper is to suggest a POS system that is adequate for small businesses. Design/methodology/approach – Using a simulation method, the authors tested and compared the operational performance of POS systems in two different environments, i.e. the remote server‐client environment and the local server‐client environment. Findings – One possible solution is for a group of small retailers to use a shared, remote database server, but such servers often have reliability and performance issues. To resolve these issues, the authors suggest a POS system that utilizes local data tables embedded in each client's computer. This system consists of a remote database server and a group of client POS computers with off‐line data‐handling capabilities. The results indicated that it is possible for small businesses to obtain significant benefits from an affordable POS system based on a remote client‐server model that utilizes a local data cache. Practical implications – The results of this study indicated that small businesses may obtain significant benefit from the affordable POS systems based on a remote client‐server model that utilizes a local data cache. Originality/value – The literature lacks studies on small businesses' accessibility to POS systems. The study fills this literature gap and shows a technological solution to provide affordable POS systems to small businesses, which have not been paid much attention by POS vendors.