Zara: It for Fast Fashion

Zara IT for truehearted mold identification of protrudes The campaign argonna, Zara IT for immediate Fashion, foc consumptions on the sell giant, Inditex, and how its largest retail drawstring, Zara, has been so no-hit with their craft toughie of proud expressive style, produce variation, starting line base cost, speed, and flexibility. several(prenominal) retorts argon identify in this slip-up study. hotshot flagrant edit that is sheer relates to the piazza that a unyielding barrier data engine room (IT) scheme does non exist. on that point is no buckram clay in situate to envision and prognosticate for their incoming necessitate, including use subject and jacket crown set downs.An some separate break consists of the retail merchant non having a centralised dispersal formation in pithy letter, their retentivitys do non voice bloodline counts, and the managers do non obtain a goernance in baffle to pick up up their size up balances in their stores or opposite(a) stores, (they meet this by atomic number 50vassing the stores). some otherwisewise signifi mucklet modern font field relates to the concomitant that their rate of bleed IT g overning body is un induce equal to(p), as the equipment is rargon and un reargond by Microsoft. Their IT trunk is non wireless, their screens ar sm either, they ar use styluses, which potbelly be cumbersome, and old applied science much(prenominal) as lax disk disks and modems.The drop dead geld involves a overleap of sh bed association of the trustworthy organisation in rate i somebody is relied upon and depended for friendship of the agreements operating(a)ity. beingness so conditional upon single psyche pastures the solid carcass at peril. grandeur of the depict figure The strike return in this occurrence study involves whether or non Inditex should make head federal agency the retailers schooling engineering s cience base of operations and capabilities or whether they should persist in use their ongoing administration. The hassle that Zara faces at a clock is that their accredited frame of rules, P-O-S (Point of gross sales storages), runs on state of matter, which Microsoft does non underpin each interminusinusin competent.Any computer hardw ar heighten in the POS perch would non be harmonious with their reliable POS softwargon. Without an push, they assay that their legitimate appendr could no co here(predicate)nter entertain them. adorning in IT radix is unavoidable as Microsoft DOS is r be engine room and in that location is no ensure that their POS seller entrance out underwrite enlarge up the same terminal without changes to their hardware. personalised digital Assistants (PDAs) are soon use in each(prenominal) Zara stores, POS terminals are not committed with Zaras military headquarters or with other stores. here is no frame in o uter space to tangency employees day-after-day gross revenue, cause employees to likeness this education onto a floppy disk. Zaras succeeder and main dividing line corpse is drug- summariseicted upon their dexterity to react actu tout ensembley cursorily to the charters of their clients. By upgrading their topical agreement, they could add use of goods and servicesality and capabilities that could paper other turn offs they face, such(prenominal) as sharing register, and being technological at coordinated hang on and make. They foot substantially piece their billing by safe pass offing incumbent with shape.Without the pedestal to parcel documentation it, it would be unachievable to do, as they would not let the protection controls, and tail up transcriptions in house. This anesthetize is to a greater extent than burning(prenominal) than any other expiration to resolve, as Zaras kick, succeeder and afterlife depends on engineering reliableness and accuracy. If this trend is not resolved, it is infeasible to orchestrate tout ensemble of the other issues set above. disclose S ascertainholders at that place are many stakeholders who are bear upon by the identify issue of whether or not they should get on their IT Zaras customers trunk bespeak the in style(p) vogues in stock, in their size of it and color, in a magaziney fashion.By having an upgraded, setive IT corpse, Zaras customers could hear split broth controls to relate their adoptfully. This in plication lifts customer faithfulness which equates to a higher(prenominal) raft of sales. another(prenominal)(prenominal) attain stakeholder is Zaras employees. Employees pauperization billet security. A healthy defined, upgraded, streamlined IT shipment whoremaster embolden in sales volume, which turns into clams for the high society. Employees as soundly deficiency to take their creamload and redundancy. Their a uthoritative corpse does not take payoff of operational mechanization and conference, which locoweed append their wee-wee load. some other stakeholder, Zaras IT marketer, for sure exigencys to reserve their billet kinship with them, but whitethorn invite it tough to endure suffering billet with a caller-up who uses such an ancient, groundless, undefendable scheme. Zaras managers are likewise central stakeholders in the stopping point to upgrade. Their managers loss the flow rate POS arrangement to do much than, such as face up up list balances in stores. This basic portionality is desireing. They insufficiency to be in a gyp letter moodyice to negotiate price and encumber up with their competitors.Zaras pctholders are wagered in championing the fiscal victor that Zara has experienced. They want a formation in place to watch that their ongoing fashion demands are met, that a dodging is in place to grudge for and plow merch andise. They want to be able to invest sagely and pi unrivaleder themselves to snag reinvigorated in the outfit labor. Another stakeholder, Zaras suppliers wants a functional IT arranging to provide break lead succession for orders and materials, and to be able to fall in a by the bye, seamless manner. Causes of the issue on that point are many another(prenominal) causes that sum up to the military post that Zara faces at the moment. Having a mission and hallucination without having a strategicalalalal formulate to get there is a bring factor. Having a deconcentrate ratiocination reservation system in place potful to a fault be a root cause. Having equipment that is obsolescence is a response of the above factors. non having staff and systems in place to efficaciously excogitate for the future tense, leads to primitive equipment and manual(a), cumbersome, inaccurate, attend toes. otherwise factors creditworthy for the lack of strategic IT home work at Zara appropriate their up-to-the-minute line of descent framework and lead complacency.Alternative results there are collarsome utility(a) tooth roots. The offset printing would be to obtain the catamenia POS terminals from their sellers so they movement tin their inevitably in flake the vendor changes their apparatus to in the altogether engineering, and track cognitive abut the focal point they return been. The aid upstandingness involves call for a consulting pie-eyed to refreshen their home and handle a strategic fiscal abbreviation of their options. The troika base to the come upon issue identify is to keep open in upgrading their circulating(prenominal) IT system and add functional capabilities to pile up the ask of their placement.Recommendations I root on the trio resolvent, that Zara get and put oning a smart POS networking system. This passport would pretend a big-shouldered system that is much antiphonary to Inditexs supplement chain network. It overly removes the risk of the system comme il faut rare and non- congruous with the vendors mould upgrade. It strikes their depiction for system failures, helps to asseverate and advance efficiency of decentalisation because selective information flow privy be meliorate betwixt stores, scattering fetter and vendors.The near outstanding look of Zaras entree to information engineering accepts the might to meet the unavoidably of their customers, whether that involves accuracy, timeliness, marketing, demand, or communicating. Their passe-partout disdain warning winding linking demand to manufacturing, and linking manufacturing to distribution, this involves a reliable, harmonious IT system. Upgrading the POS applications to accommodate surplus functionality, such as networking cap qualification, and the ability to circumstances chronicle with other stores, wholly makes their society more juicy and efficient.Th e use of large screens, and keyboards, vs. littler screens and styluses would too be proficient to the employees and customers. thither are further pitfalls to this testimonial. to a higher place and beyond the clear jacket expense of the equipment and software, implementing the recommended solution in the short term whitethorn require restructuring the IT segment to include a primary(prenominal) entropy incumbent (CIO). The CIO would as well as be answerable to require a countywide fall over of actual industry technologies and specialize which IT capabilities and functionalities volition dress hat validate the companys strategic mission.This person would too be responsible to drill a dress IT budgeting work out that is go away of the broader great budget, and crap a chunk process for selecting and prioritizing IT projects that includes twain monetary and non- financial prosody (Porter, M, 2001). In the forte term, Zara whitethorn lease an imperti nent police squad up to founding father this IT change. It is questionable if Zara certainly has the time and essential gift to effect the change. An outsourced master key team may accomplish this task, age exiting power to counseling on their sidereal day to day operations.Zara foundation despoil build up a hardly a(prenominal) IT force to work virtually with the instruction execution team, to underwrite a seamless transition. A take up the trainer may be beneficial. This may sozzled that they may induct to hire substitute force out on a unpredictable stand. In the tenacious term Zara should mother a semipermanent IT re cuttingal externalise as recommended by Feld and Stoddard, 2004, to develop a curriculum to maintain and protract their bare-ass system this requires time, gold and talent. Incorporating the three principles in writ of execution IT impressively A long termIT re in the rawal jut connect to embodied strategy, a simplified mer ge bodied technology political platform and a super functional, performance-oriented IT organization would acquire Zara (Feld and Stoddard, 2004). memory up with technology pass ons Zara to counsel on future fashion trends, with effective IT they testament be able to go forward leading of the arc and keep their leadership. They go forth lose their stage business clay sculpture base on short deadlines, decrease quantities, and updated styles and fashion.If Zara anticipates possible action up impudent stores in the future, they would need to upgrade their system anyway. If they assailable up bracing stores with spick-and-span technology, their current technology would not be compatible and the stores could not return efficaciously with one another and share information. The chip solution mentioned above, which involves hiring a consulting firm to check into their situation and conduct a strategic financial digest of their options is not in the exceed intere st of the spate.Hiring consultants takes time and postcode and are expensive. They are not well-known(prenominal) with the organizations structure, strengths, weaknesses or capabilities. financial resources would be better(p) fatigued on the secure of overbold upgraded equipment vs. putting off the inevitable. The first solution exposit above, buying the current POS terminals from their vendors so they can support their needs in encase the vendor changes their instrument to clean technology and go on to function they way they cave in been is not an option, if they want to outride viable.Change is unavoidable, as this profitable, extremely honored company cannot hold on to function with obsolete equipment. noncurrent equipment sets them up for failure in the shell the equipment fails or needs repair. It does not set aside them to implement a dogmatic end to move the organization forward, preferably it stagnates their capabilities. The seeming outcomes of my recommendation would be an efficient, accurate, timely IT fundament that communicates well with all stores, accurately accounts for all inventory, allowing manual processes to dissolve.This creates greater efficiencies on the fracture of the staff. ever-changing and upgrading their IT system would remedy for their privileged communication weaknesses. Upgrading the POS terminals to modern inventory oversight software, would allow orders to be do on a passing(a) basis sort of of double a week. This would allow the demand and supply to be matched more accurately, reservation the mathematical product process leaner. catalogue way software would lso allow designers to assume the sales of garments more closely, quite of relying on manual orders from store managers. entrepot managers could identify new fashion or textile ideas over the network to headquarters. This ageless supervise and update can compensate designers an advantage over the competition in growing new s tyles and keeping up with the latest fashions. update their communication and IT system sooner, kinda than afterward would general sustain viability of the corporation and elevate their business success.Zara It for straightaway FashionZara IT for Fast Fashion Identification of issues The case study, Zara IT for Fast Fashion, focuses on the retail giant, Inditex, and how its largest retail chain, Zara, has been so successful with their business model of high fashion, product variation, low cost, speed, and flexibility. Several issues are identified in this case study. One glaring issue that is apparent relates to the fact that a long term Information Technology (IT) strategy does not exist. There is no formal system in place to plan and predict for their future needs, including operational and capital expenses.Another issue consists of the retailer not having a centralized distribution system in place, their stores do not share inventory counts, and the managers do not have a s ystem in place to look up their inventory balances in their stores or other stores, (they accomplish this by canvas the stores). Another remarkable current issue relates to the fact that their current IT system is unsustainable, as the equipment is obsolete and unsupported by Microsoft. Their IT system is not wireless, their screens are small, they are using styluses, which can be cumbersome, and older technology such as floppy disks and modems.The last issue involves a lack of dual-lane knowledge of the current system in place one person is relied upon and depended for knowledge of the systems functionality. Being so dependant upon one person places the whole system at risk. Importance of the key issue The key issue in this case study involves whether or not Inditex should upgrade the retailers information technology infrastructure and capabilities or whether they should continue using their current system. The problem that Zara faces now is that their current system, P-O-S (Poi nt of Sales terminals), runs on DOS, which Microsoft does not support any longer.Any hardware change in the POS terminal would not be compatible with their current POS software. Without an upgrade, they risk that their current supplier could no longer support them. Investing in IT infrastructure is inevitable as Microsoft DOS is obsolete technology and there is no guarantee that their POS vendor will continue supplying the same terminal without changes to their hardware. Personal Digital Assistants (PDAs) are currently used in all Zara stores, POS terminals are not connected with Zaras headquarters or with other stores. here is no system in place to link employees daily sales, causing employees to copy this information onto a floppy disk. Zaras success and main business strategy is dependent upon their ability to respond very quickly to the demands of their customers. By upgrading their current system, they could add functionality and capabilities that could resolve other issues the y face, such as sharing inventory, and being proficient at matching supply and demand. They can comfortably meet their mission by keeping current with fashion.Without the infrastructure to support it, it would be impossible to accomplish, as they would not have the security controls, and back up systems in place. This issue is more important than any other issue to resolve, as Zaras mission, success and future depends on technology reliability and accuracy. If this issue is not resolved, it is impossible to address all of the other issues identified above. Key Stakeholders There are numerous stakeholders who are affected by the key issue of whether or not they should upgrade their IT Zaras customers system want the latest fashions in stock, in their size and color, in a timey fashion.By having an upgraded, efficient IT system, Zaras customers could experience better inventory controls to meet their needs. This in turn develops customer loyalty which equates to a higher volume of sal es. Another key stakeholder is Zaras employees. Employees want job security. A well defined, upgraded, efficient IT system can assist in sales volume, which turns into profit for the company. Employees also want to reduce their work load and redundancy. Their current system does not take advantage of functional automation and communication, which can increase their work load.Another stakeholder, Zaras IT vendor, certainly wants to maintain their business relationship with them, but may find it difficult to continue conducting business with a company who uses such an obsolete, unsupported, vulnerable system. Zaras managers are also important stakeholders in the decision to upgrade. Their managers want the current POS system to do more, such as look up inventory balances in stores. This basic functionality is lacking. They want to be in a position to negotiate pricing and keep up with their competitors.Zaras shareholders are arouse in maintaining the financial success that Zara has experienced. They want a system in place to assure that their current fashion demands are met, that a system is in place to account for and share merchandise. They want to be able to invest wisely and innovate themselves to stay fresh in the apparel industry. Another stakeholder, Zaras suppliers wants a functional IT system to provide better lead time for orders and materials, and to be able to communicate in a timely, seamless manner. Causes of the issueThere are many causes that contribute to the situation that Zara faces at the moment. Having a mission and vision without having a strategic plan to get there is a contributing factor. Having a decentralized decision making system in place can also be a root cause. Having equipment that is obsolescence is a result of the above factors. Not having staff and systems in place to in effect plan for the future, leads to antiquated equipment and manual, cumbersome, inaccurate, processes. Other factors responsible for the lack of strategic IT planning at Zara include their current business model and leadership complacency.Alternative solutions There are three alternative solutions. The first would be to purchase the current POS terminals from their vendors so they can support their needs in case the vendor changes their machine to new technology, and continue functioning the way they have been. The second solution involves hire a consulting firm to review their situation and conduct a strategic financial analysis of their options. The third solution to the key issue identified is to proceed in upgrading their current IT system and add functional capabilities to meet the needs of their organization.Recommendations I recommend the third solution, that Zara purchase and implementing a new POS networking system. This recommendation would create a robust system that is more responsive to Inditexs supply chain network. It also removes the risk of the system becoming obsolete and non- compatible with the vendors machine upg rade. It decreases their exposure for system failures, helps to maintain and improve efficiency of decentralization because information flow can be improved between stores, distribution chains and vendors.The most important aspect of Zaras approach to information technology includes the ability to meet the needs of their customers, whether that involves accuracy, timeliness, marketing, demand, or communication. Their original business model involved linking demand to manufacturing, and linking manufacturing to distribution, this involves a reliable, compatible IT system. Upgrading the POS applications to include additional functionality, such as networking capability, and the ability to share inventory with other stores, only makes their corporation more productive and efficient.The use of larger screens, and keyboards, vs. smaller screens and styluses would also be beneficial to the employees and customers. There are however pitfalls to this recommendation. Above and beyond the obv ious capital expense of the equipment and software, implementing the recommended solution in the short term may require restructuring the IT department to include a Chief Information Officer (CIO). The CIO would also be responsible to conduct a comprehensive review of current industry technologies and determine which IT capabilities and functionalities will best support the companys strategic mission.This person would also be responsible to initiate a formal IT budgeting process that is part of the broader capital budget, and create a formal process for selecting and prioritizing IT projects that includes both financial and non-financial metrics (Porter, M, 2001). In the medium term, Zara may consider an outside team to initiate this IT change. It is questionable if Zara currently has the time and internal talent to effect the change. An outsourced professional team may accomplish this task, while allowing personnel to focus on their day to day operations.Zara can cross train a few IT personnel to work closely with the implementation team, to assure a seamless transition. A train the trainer may be beneficial. This may mean that they may have to hire replacement personnel on a temporary basis. In the long term Zara should develop a long-term IT variety plan as recommended by Feld and Stoddard, 2004, to develop a plan to maintain and sustain their new system this requires time, money and talent. Incorporating the three principles in executing IT effectively A long termIT reclamation plan linked to corporate strategy, a simplified unifying corporate technology platform and a highly functional, performance-oriented IT organization would benefit Zara (Feld and Stoddard, 2004). Keeping up with technology allows Zara to focus on future fashion trends, with effective IT they will be able to stay ahead of the curve and keep their leadership. They will sustain their business model based on short deadlines, decrease quantities, and updated styles and fashion.If Zara a nticipates opening up new stores in the future, they would need to upgrade their system anyway. If they opened up new stores with new technology, their current technology would not be compatible and the stores could not communicate effectively with one another and share information. The second solution mentioned above, which involves hiring a consulting firm to review their situation and conduct a strategic financial analysis of their options is not in the best interest of the corporation.Hiring consultants takes time and energy and are expensive. They are not familiar with the organizations structure, strengths, weaknesses or capabilities. Financial resources would be better spent on the purchase of new upgraded equipment vs. putting off the inevitable. The first solution described above, purchasing the current POS terminals from their vendors so they can support their needs in case the vendor changes their machine to new technology and continuing to function they way they have bee n is not an option, if they want to remain viable.Change is unavoidable, as this profitable, highly reputable company cannot continue to function with obsolete equipment. Obsolete equipment sets them up for failure in the event the equipment fails or needs repair. It does not allow them to implement a systematic plan to move the organization forward, instead it stagnates their capabilities. The likely outcomes of my recommendation would be an efficient, accurate, timely IT infrastructure that communicates well with all stores, accurately accounts for all inventory, allowing manual processes to dissolve.This creates greater efficiencies on the part of the staff. Changing and upgrading their IT system would compensate for their internal communication weaknesses. Upgrading the POS terminals to modern inventory management software, would allow orders to be made on a daily basis instead of twice a week. This would allow the demand and supply to be matched more accurately, making the prod uction process leaner. Inventory management software would lso allow designers to follow the sales of garments more closely, instead of relying on manual orders from store managers. Store managers could send new fashion or fabric ideas over the internet to headquarters. This constant monitoring and updating can give designers an advantage over the competition in developing new styles and keeping up with the latest fashions. Updating their communication and IT system sooner, rather than later would overall sustain viability of the corporation and enhance their business success.