Information Systems and Operations Management

Zara takes a no bells and whistle approach to the technology used outside of the manufacturing (ex. use of technology in the fabric cutting) side of their business. They have been very successful with their reactive supply chain process and do not have to rely of tends and forecasting because of their Corporate Mandate to produce low quality (10 wears) high fashion garments. I believe this is a very unique approach to business and would not be applicable or appropriate anywhere. This business practices would not function well in an environment where customers want a reliable products that last nor would it not work for companies who’s stagey to purchase large quantities

This means that instead of wrestling with inventory during busy periods, employees in Zara stores simply move items from shipping box to store racks, this help store staff regain prime selling time. Zara spends little on advertising only 0.3 percent of revenue while comparing to the other competitors. The high traffic in the stores alleviates some need for advertising in the media, most of which only serves as a reminder to visit the stores. The stores always locate in the fashionable district and new items arriving at stores twice a week, not only do stores stall know exactly when shipments will arrive, regular customers know that too, thus motivating them to check out the new merchandise more frequently on those days.

In This case we see the typical problem which affect big Companies : the conflict between old style and new school of thought. We analyze Zara’s information Technology strategies and the diatribe between Salgado, The Head of the Department and Sanchez , his assistant,s concern upgrading the operating system and the implementation of a new IT system to fulfill the needs of a fast growing retail chain. Despite the fact that Zara is over performing in their core business and that they are not showing big problems inside their structure, this shouldn’t be seen as a pretense to dodge updating the Software. Here we

Zara is a high-end street store offering the latest tastes in fashion for women, men, and children alike. Amancio Ortego, Zara’s founder, has made the store grow with rapid success in both its home country, Spain, and internationally. One of the distinct reasons why Zara is such a unique company compared to its competitors is its foundation of the quick response system. Today, Zara’s cycle time is six weeks, in which it responds to its customers’ demand very quickly, unlike most stores that take half a year. Overall, Zara is distinct from most apparel stores in its ability to travel globally and from its international strategy.

“Zara has pioneered leading-edge fashion clothes for budget minded young adults through a tightly integrated vertical structure that cuts delivery time between a garment’s design and retail delivery to under three weeks (against the industry norm of three to six months)” (Grant, 2010, p.212)

These points of interest lead ZARA to be the business sector pioneer in dress industry. ZARA can cut its expense and time or having cost and time control as it doesn’t outsource its distribution, this additionally permits them to stay away from the contentions that for the most part emerges on account of receiving diverse appropriation channels. Vertical integration is likewise serving as a state of separation in the middle of ZARA and its rivals, as a rule retailing stores outsource its distribution and that can be the reason of deferred distribution. (Bootwala,

Citation: Management Information Systems: Managing the digital firm. (14th ed). Laudon, K. C., & Laudon, J. P. Pearson Prentice Hall, 2012.

"ZARA Textile is devoted to achieve consistent improvement in the system of providing products & services to the customers through On Time Delivery & Enhancing Customers Satisfaction by means of Quality and Value."

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.

The purpose of this paper to answer the questions purposed in writing assignment 1. The first question was: In your own words, define the terms "information technology" (IT) and “information systems” (IS) and explain their components and infrastructure. Why is it important for a manager to be involved in IT and what are the critical responsibilities for the manager? The second question is: Case Study (discuss the case and answer questions at end of case): The Progressive Group of Insurance Companies - Managers Leverage Ongoing IT Investments to Achieve Competitive Advantages (p. 23 of text).

“Zara – IT or Fast Fashion” is a case prepared at Harvard Business School, by Andrew McAfee, Vincent Dessian, and Anders Sjoman. Zara is a fashion clothing line under the multinational clothing retailer and manufacturer Intidex. The case opens with a discussion between Xan Salgado Badas (Head of IT for Intidex) and Bruno Sanchez Ocampo a subordinate, on whether or not to update the current existing Windows DOS based POS (Point of Sale) terminals with advanced Windows operating system. The paper further details the business model and IT dependency. I have tried to analyze the current business model, its IT dependency, and why and how it needs to upgrade its IT infrastructure.

Each Zara outlet sends in two orders per week on specific days and timing. Lorries leave and arrive at specific times. Already labeled and priced garments are ready to be placed in the store, and that stimulates shoppers to return to the store very often.

Zara, the world largest clothing retailer brand that is part of the Inditex multinational clothing company which was created by Amancio Ortega and Rosalia Mera (Inditex, brands). They are based in the northwest of Spain. Currently, Zara has a total of 2,000 stores in major cities around 88 different countries (Inditex). They are acclaimed as a fast fashion company in the industry with more than two hundred professional designers within the creative teams. Zara’s products are diversification strategy, include men’s and women’s apparels and accessories that keep up with the current fashion trend (Inditex).

Essay Title 3: The emergence of information economy has far-reaching strategic implications for managers in many organizations. Select and discuss some of these implications by reflecting on three aspects, namely (1) the rationale behind your selection, (2) the changing requirements imposed by the new economy and (3) the disconnections between an organization’s IT capability and the external requirements. It is vital to address the increasing commoditization of IT and/or IT--‐based solutions when illustrating their strategic potentials.

The proximity of these suppliers gives Zara great flexibility in adapting their product lines based on up to date market trends and consumer behavior and responding quickly to shifts in consumer demand. It also decreases costs of holding inventory. Zara gives store managers significant autonomy in both determining the products to display in their stores and which to place on sale, and relaying market research and store trends back to their headquarters in La Coruña. Zara designers continuously track customer preferences and then placed orders. Designers talk daily to store managers, to discover which items are most in demand.