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Submitted by Shubha on May 25, 2008
Category: American History
Words: 846 | Pages: 4
Views: 95
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Zara: IT for Fast Fashion
Summary of the Case:
As a well-known apparel company, Zara had been seriously considering upgrading its information systems, especially POS, to make its business more efficient. However, then-operating system still worked very well without any big problems so that the managers were worried about risks if they change the system. Especially, due to the rapidly changing trends, Zara had been focusing on quick decision making so that improved information system needed to give Zara good decision making functionalities. In addition, its three cyclical processes – ordering, fulfilling, and design and manufacturing – also needed to be considered to be given some functional improvements by the state-of-the-art information system.
I. Assess Zara’s management of IT in the case. Here, “assess” means that you analyze both what Zara did well and did not do so well.
Zara, famous for Fast Fashion strategy, had a great achievement in market rapidly. Its IT system contributed to its success as follows.
1. Approaches and Organization
- Speed and decentralized decision making was possible by Technology Steering Committee which determine what new systems were required and which IS department personnel should work on them
- Internally developed applications that supported ordering, fulfillment, and manufacturing rather than buying commercial software..
2. La Coruna(Headquarter)
- Internally developed applications were systematically worked. That means it used to prepare the offer and distribute it to stores around the world and also to receive orders from all of the stores and aggregated them.
- Another application compared the aggregated order to available inventory for each SKU, highlighted unbalance between supply and demand. and executed commercial’s decision.
3. Factories
- Simple applications furnished managers with quantities and due dates for all...
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