Zara: Information Technology For Fast Fashion :: Problem, Solution, Case Study

Issue Statement: In 2003, Zara's CIO must conclude whether to update the retailer's IT framework and abilities. At the hour of the case, the organization depends on an obsolete working framework for its store terminals and has no full-time arrange set up across stores. In spite of these confinements, notwithstanding, Zara's parent organization, Inditex, has assembled an exceptionally well-performing esteem chain that is by a wide margin the most responsive in the business. Hence the serious issue to the organization is to choose whether it needs to overhaul the current framework and thusly, taking a chance with the dependability they have with the present framework or to proceed with the current DOS based framework which won't be perfect for future changes or enhancements. Investigation and Recommendation: Zara’s principle technique is the capacity to react rapidly to the requests of target clients which called for recognizing patterns of the client ahead of time. The organization has had the option to distinguish the patterns and fulfill the need with the assistance of its self-rulingly sorted out structure and its viable worth chain frameworks. The current framework followed by Zara has been compelling and simple to keep up, which subsequently has convinced the organization to proceed with no adjustment in the current framework up until now. The issue that Zara faces right presently is that the framework that they use, P-O-S (Point of Sale terminals), runs on DOS which Microsoft doesn't bolster any longer and any equipment change in the POS terminal won't be perfect with the present POS programming. In spite of the fact that the desire to move quickly for the change may not be that high, putting resources into IT foundation is an unquestionabl e requirement as MS Dos is an old innovation and there is no agreement or assurance from their POS terminal seller that they will keep providing a similar terminal with out a lot of changes in the equipment for a particular timeframe, in this way change is unavoidable. The other fundamental issue that Zara faces is that the stores don’t share stock data electronically and henceforth stock administration turns out to be exceptionally troublesome and manual. The dynamic procedure depends on the judgment of workers all through the organization as opposed to depending on a little arrangement of chiefs; most of the choices were made by senior supervisors and subsequently they put orders for the things as opposed to just tolerating and showing what central command chose to send them.