Zara Case Study

The biggest IT problem that ZARA faced was the lack of initiative in the

use of technology within its stores . This lack of initiative created

several problems in information management for store product managers .

DOS , as an operating system , was already obsolete at that point in time .

Although DOS is very stable , it lacks the immense range of applications ,

flexibility and time saving that operating systems such as Windows and

Linux (especially Red Hat ) can provide . Moreover , ZARA was the only

retailer to use DOS as an OS which also meant that there was no

guarantee of future services by the vendor . The vendor officially did

not sign a binding contract to continue providing DOS compatibly POS

systems in the future . With continued future plans for growth of stores

in Italy and other countries , it would be napve for the management to

assume that DOS based POS systems would be available after a few years .

There were two other issues within stores . Firstly , lack of continuous

internet connectivity strictly restricted communication that would

otherwise benefit store product managers and product managers in terms

of time saving and flexibility . Secondly , the use of PDAs to calculate

returns and check inventory was tedious and difficult for product

managers .

Recommendations

Create and present a proposal for discussion in the technology steering

committee that outlines a chronological plan of action for upgrading the

system

Upgrade the POS system starting from stores in Spain only . Stores in

Spain generate 47 of ZARA 's sales . It is practical to launch a pilot

project in Spain first because of ease of project implementation

especially considering communication and geographical proximity to head

office (and the IT team of ZARA . This project can be expanded to

include countries after a period of six months after its success .

Port