Zara It for Fast Fashion

ZARA, IT for Fast Fashion

Module 1

A Case Study

Prepared by Ritwick Banerjee

Date of Submission: 29th September, 2010

Executive Summary

My decision is to introduce a new operating system (OS) in segments. The plan identifies a number of non critical stores as pilot case. It introduces the new OS and links the Point of Sales (POS) terminals using internet to the information system at La Coruna. The necessary interface applications get written and tested by the applications development group under the pilot scheme. Training is provided to selected staff. Once the efficiency of the system is established, the existing system gets replaced with the new one in segments. This replaces the phone modem and further cuts down the cost of operation.

Zara needs new technology to meet the business strategy, sustain the business plan and create better communication. The operating system DOS is no longer supported by its originator Microsoft. The terminals using DOS should upgrade to Linux operating systems. Exhibit 12 states that one time license cost for Linux system is free. A wireless router will improvise the flow of information with 5 terminals averaging per store. Cost for setting up a wireless router per store is 180 pounds in Exhibit 12.

Process Elements

Zara is a clothing company founded by Amancio Ortega in 1975 whose business strategy was to meet quickly and accurately the demands of the fashion world. Currently worldwide, there are 531 Zara stores. In 1985, Inditrex was formed as a holding company on the top of Zara and other retail chains. The critical importance of IT as a great enabler was shared equally between Ortega, the Chairman and IT Manager Castellano. The issue is to establish the need to upgrade the operating system in Zara supply chain work flow with the latest OS in the market. It’s reasonable to replace the DOS as it has no technical support and is obsolete in the software industry. On the other hand, the...