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Session Three Vertical Integration and Outsourcing Zara Created by: Brenda Dyck 1> As Mr. Salgado, what will you do concerning the issue of upgrading the POS terminal? Will you upgrade to a modern operating system? Should the POS applications be rewritten to include any additional functionality? If so, what functionality? Response: Yes, I would upgrade both the POS terminal and modernize the operating system. With Dos being outdated and no longer being supported by the IT industry Zara has an unnecessary business risk. Zara supports the IT requirements with an in-house team, they are supporting an archaic system which limits their ability to be proactive. Should the system go down and the in-house team determines that either…show more content…
The direction and priority for the changes would entail interviews with subject matter experts and analysis to determine how changes might affect employee morale. All the changes would be staged, monitored and carefully rolled out as employees get comfortable with the previous change. As part of the change management process the change team would also ensure all corporate targets are met. Although Zara see that change is not required I believe the recommended changes would support there “just in time” business strategy. 2> What are the most important aspects of Zara’s approach to information technology? Is this approach applicable and appropriate anywhere? If not, where and when would this approach be inappropriate? Response: 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

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