Zara IT for Fast Fashion Case Notes

Identify decision issue, and your role as a decision maker

Salgado and Sanchez need to decide if it is the right time to update Zara’s information technology. The key concern is the outdated operating system they use for their point of sale (POS) terminals. Should they purchase the current POS machines from their vendors so that they can support their needs in case the vendor changes their machines to new technology? Or should they move to using new operating system for the POS application? The new operating system provides the opportunity for system and process improves that the store and throughout the company.

Why has the decision issue arisen?

Zara’s  POS terminals are currently …show more content…

-this speed allows them to respond to fast-changing and unpredictable tastes of its target customers
-did not have to rely on accurate long-range sales forecasts. Store orders told Commercials how well items were selling and adjust future production (increase or decrease it.) Â Factories were flexible with short lead times to accommodate such changes. Â Â
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Information Technology
Approaches and Organization
-approach to IT was consistent with its preferences for speed and decentralized decision making.
-decision making for IT was informal.
- No formal justification for IT efforts, no cost/benefit analyses conducted for proposed projects.
- They preferred to write net application in house rather then buying commercially available software
-low employee turn over in IS departments

La Coruna
-several information systems used at headquarters

Factories
-simple application used to plan production

Distribution Centers
-uses a great deal of automation and computerization
-applications were written in house with collaboration with equipment vendors

Stores
-All stores had PDA and POS systems
-all stores have several PDAs which allows