Proposal to Improve the IT/IS Strategy at ZARA
Be future ready!!!
Oct. 3, 2011
Executive Summary
To grow at the same pace in the fast changing fashion industry, Zara should use advanced IT/IS systems as an enabler to improve the overall business process. Zara is facing a challenge today by using obsolete technology. Also due to a number of internally developed applications, there is no clear picture of the entire sales or inventory at any instant.
In this report, it is recommended that Zara should upgrade their systems into a newer OS, replace existing POS terminals with ones which are compatible with the new OS and rollout an MIS system to integrate data across all departments.
Case Synopsis
Inditex is a multinational clothing retailer and manufacturer headquartered in La Coruña. It is a holding company atop a number of brands like Zara, Pull & Bear, Massimo Dutti, Bershka, Stradivarius and Oysho. Zara is one of the largest international fashion companies producing and retailing trendy and fashionable clothing for men, women and kids.
Since its inception, Zara has tried to remain in line with the customers’ demands and rapidly changing trends. Their short manufacturing lead times and effective design and production teams ensure launch of new design collections continuously throughout the year. This keeps them ahead of competition that launches new collections only at the start of fall or spring buying periods.
The major issue facing Zara is obsolete hardware and software being used all across the organization. As per the current scenario, Zara has a lot of processes which can be improved upon with the use of better IT/IS system in place. To iterate a few of them: 1. The current IT systems run on DOS which has not been supported by Microsoft for years now. Microsoft moved to Windows OS in 1985 and have revolutionized the whole computer industry with the user friendly OS since
References: Pant, S., & Hsu, C. (1995). Strategic Information Systems Planning: A Review. Information Resources Management Association International Conference. Atlanta. Roux, C. (2002, October 28). The Reign of Spain. The Guardian, p. 6.