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Module 8: Zara Case Study Mind Map - Coggle Diagram
Module 8: Zara Case Study Mind Map
RELEVANT FACTS
Current DOS POS works perfectly for Zara
Zara is the only company using the DOS POS
DOS is no longer supported and is an outdated software
KEY PROBLEMS
Key Problem 1: DOS POS is likely to be discontinued.
CAUSE
This is a likely problem because Zara is the only customer using the DOS POS and although they are using it in all their stores and they have over NUMBER of stores, the POS company may want to focus all of its resources on modern technology for everyone instead of old technology for one company.
CONSEQUENCES
This could lead to a very large increase in unplanned cost if Zara had to suddenly switch to a new POS
This could also lead to operations being negatively impacted if there are issues during the change
WHO IS RESPONSIBLE
The tech lead and head of IT are responsible for this. It is their job to make a decision to switch to a new POS or get the POS company to sign a contract that the DOS POS will not be discontinued. If they get the contract signed, then Zara will not bear the cost if the DOS POS is discontinued.
IMPACT TO IT AND THE GROUP
Loss of money
Instability in operations for a while until they get back on track
Key Problem 3: Zara stores are not able to share inventory
CAUSE
The DOS POS doesn't allow this functionality
CONSEQUENCE
Stores will need to place a new order whenever an item is out and this could mean other stores that are not selling that item as quickly will have it in excess which could lead to a loss if they have to move them to clearance.
Also, the stores will have to order in bulk every time they need just one quantity of the item if that is what their suppliers allow.
WHO IS RESPONSIBLE
The tech lead and the head of IT and partly other stakeholders responsible for IT decision making and approval at the company.
IMPACT TO IT AND THE GROUP
Increased cost, reduced profit
Possible delay in delivery if the order from supplier process takes time.
Possible loss of customers with delay in delivery.
PROPOSED SOLUTIONS
Solution 1: Implement the new POS System
PROS
New features added to the system for store managers
System will be supported and safe from hackers
CONS
Pain points of learning new software
There could be bugs in the new software
solution 2: Get contract with POS Company that DOS will not be discontinued
PROS
All employees are used to this POS so no new learning is required.
Operations can go on as usual.
CONS
DOS POS doesn't allow accurate inventory tracking.
Its dated process of transferring and saving data in floppy disk is risky incase of a fire or theft.
Stores cannot share inventory;
It is risky as it depends on one company keeping their end of the contract and staying profitable enough to remain in business.
MOST FEASIBLE SOLUTION
Implement the new POS system
Key Problem 2: Zara store manager determines replenishment quantities by walking around the store and determine what had been selling by counting the garments and talking to the salespeople.
IMPACT TO IT AND THE GROUP
The IT group will not be able to handle the situation if DOS stop working since there is no back up plan for the company since they too rely on DOS.
CONSEQUENCES
Once the DOS POS stop working that they have nothing to rely on will causing a huge mess in their company. The store manager don't know what to do which will causing a huge loss to the company.
CAUSE
The CEO and CIO think that the company can continue to rely on DOS POS that they don't need to focus on the IT to use other platform to manage their inventory and product sales.
WHO IS RESPONSIBLE
The top manager such CEO, CIO needs to responsible for this.