Zara´s Information Technology System

553 Words Feb 19th, 2018 2 Pages
This demonstrates that Zara's leadership team understood that their corporate strategy focused on the expansion of the number of stores selling of high fashion, short life span clothing to young fashion conscious, city dwellers. There was a relatively low need for reliability and strategic IT, it simply existed to support employees activities (Nolan and McFarlan, 2005). By implementing a new POS system Zara could potentially have come up against the following key risks:
1. Increasing security threat: Zara were working from a decentralised IT system based on floppy disks, providing little opportunity to access highly valuable data on a networked database. The majority of security breeches originate with careless or vindictive employees (Austin and Darby, 2003). For Zara, there is limited opportunity for an employee to threaten the system, the worst-case scenario is that they might delete the days sales records. With such a basic system, there is also limited opportunity for hackers to infiltrate the system as the data is transferred only once a day to headquarters.
Zara has inadvertently taken an operational approach to mitigating risk through having decentralised stand alone store systems that interact once a day with headquarters therefore requiring little protection and staff only having limited access and control over their part of the system, not a network of data (Austin and Darby,…
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