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Zara - Coggle Diagram
Zara
Relevant Facts
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As of 2003, there are 531 Zara stores worldwide.
Application development and other IT activities were the responsibility of an IS department of approximately 50 people, almost all hailing from Galicia and local universities.
The accounting and the applications that supported ordering, fulfillment, and manufacturing were largely developed internally.
The company had no CIO and no formal processes for setting an IT budget or deciding on specific technology investments or projects
There was little or no formal justification for IT efforts, nor were cost/benefit analyses typically conducted for proposed effort.
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Stakeholders
Inditex - A multinational clothing retailer, and manufacturer headquartered in La Coruna, Spain. This company owns Zara
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Key Problems
1.) The POS technology runs on DOS, which as of 2003 is no longer supported by Microsoft.
4.) Use of PDA's were very time consuming for employees to use the tiny screens and styluses to accomplish returns. Stores also have multiple PDA's which allows for redundancy and division of labor in the ordering process.
3.) Stores did not have any computers beyond the POS terminals and PDAs. To keep inventory, that means they must manually count each item in the store.
2.) Zara is the only company still using the DOS OS. If their hardware vendor decided to change their machines to no longer support DOS, this could put Zara in a bad position.
5.) Stores do not have Wi-Fi, but instead use a Dial-up modem to communicate with the systems in La Coruña.
Possible Solutions
With the implementation of new POS technology and a new OS, they would need to install Wi-Fi into their stores as well. A simple solution that would allow them to communicate with other stores easier and communicate with La Coruña easier. (problem 5)
To solve the issue of not having in-store computers, they could install new computers with the new OS they switch to. This would also solve the issue of keeping inventory and would make making orders and returns much easier and quicker. for problems 3 & 4)
The most obvious solution to their out-of-date systems is to update to a new OS that Microsoft supports. It would be most beneficial to switch to the newest OS that Microsoft would continue to support for the longest amount of time. Updating their OS would also solve the issue of worrying about their hardware vendors. (for problems 1 & 2)