Zara: It for Fast Fashion

1266 WordsAug 13, 20086 Pages
Executive Summary The objective of this document is to discuss the issue of Inditex’s DOS-base IT infrastructure and how it affects Zara’s performance. Inditex is concerned about its IT infrastructure being antiquated and the possibility that hardware vendors will upgrade their machines leaving them incompatible with DOS. Because Zara’s core business model is vertically integrated, it could specialize in speed and efficiency and the fast fashion trend. By assessing the pros and cons of the new IT infrastructure with Zara’s brand image, they determined that implementing the new POS networking system is beneficial for Zara because 1) it creates a more robust and scalable system that is more responsive to Inditex’s supply chain network, 2)…show more content…
Inditex must understand whether the advantages outweigh the disadvantages of upgrading into a modern IT system with their largest chain stores, Zara. Zara is continually growing and Inditex wants to maintain Zara’s brand image and improve Zara’s operational efficiency. Possible Alternatives Inditex can do three things to solve their IT problem. First alternative: Inditex could maintain the original system. They will stock-up on POS terminals so that Zara can continue to open stores. The IT division will continue to write application to enhance its features. The benefit with staying with the current system is that it is stable and requires less IT support. Second alternative: Inditex could immediately begin investing in the new IT system that will provide up-to-the-second information to stores and headquarters, reduced floppy disk use, improve communication between stores, and allow addition of new features. However, the system will be a big investment, roughly 13 million dollars (see Appendix 1). As a third alternative, Inditex could slowly integrate the new IT system into their company by implementing a new system that add initial functionalities, such as DC inventory checking or route checking and new product announcements, than add more functionalities, such as POS transaction, “order”, fulfillment, and other transaction

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