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Case Study: Zara Policy: Framework for when it is appropriate to upgrade…
Case Study:
Zara
Policy:
Framework for
when
it is appropriate to upgrade POS systems.
The purpose of the policy
Establish a framework or clear criteria of when it is necessary to replace ANY POS systems.
Prevent unnecessary spending on technology that may not add more value to the business model.
Create clearer business goals and values and reflect on the difference of improvements made to the business model, the IT infrastructure, and when they may or may not cross over.
What the policy states
POS technology may only be updated under the following circumstances:
The current system implemented is no longer supported and it is beyond the control of Zara's IT Team
Zara Store management collectively agree that there are features that would beneficial to the fast-fashion business model.
Under this circumstance the argument from store management must include supporting evidence to the new feature, as well as a majority vote across all Zara store locations that the feature would be useful and relevant.
Zara's business model shifts from being a fast-fashion model appealing to trends and becomes something more stable in terms of ordering and styles.
Zara feels the need to implement online ordering and shipping.
Who the policy applies to
Zara's IT Team
Will review escalated concerns and determine the value they may bring to the business model that would outweigh the costs of an early upgrade.
Zara's Store Managers
Will review any concerns made by retail employees, will escalate the concerns if they see fit.
Zara's Retail Employees
Will relay any concerns of needing a new POS system earlier than expected by providing ways that new features may be useful.
How the policy will be implemented
First the policy will be reviewed by the relevant stakeholders, mainly including Zara's CEO, Zara's IT team, and Zara's store management.
Then, the policy will be discussed, noting any discrepancies or changes needed.
Finally, after making final edits and going through a final review process, the policy will be put into place.
Who will be responsible for the policy
Zara's IT Team
IT Team will be responsible for updating policy if any changes are needed throughout the years.
Zara's CEO
Responsible for reviewing any decisions made regarding such a large change in the business that may be costly.
Store Managers
Responsible for enforcing the policy and raising any questions or concerns if they feel a new system may be needed earlier than expected.
How will the organization measure if the policy is doing what it is supposed to?
Review sales data, if sales start to decline out of the ordinary then maybe it is time to make a change to the business model.
Review number of IT incidents reported, if incident count rises then it may be time to evaluate a new POS system.
Reflect on the business model itself. Are the key points of the business model being met by the current system? Or are there parts that are no longer being met, that may require an upgrade to make sure they are being met again?