Zara-It For Fast Fashion

Part 1: Executive Summary

Zara has developed a actually successful vertically integrated company which can design, manufacture, and dispel apparel to retail stores in short lead times. Zaras gull market is fashion-oriented consumers who shop frequently for the latest trends.  Currently, Zara faces a predicament whether to upgrade the current POS system throughout the Zara chain or maintain the existing one.   With over 550 stores worldwide, this would be a drastic change for the company. The current system meets the needs of the company. Despite nigh of the receiptss of upgrading, I believe it is in the best interests of the company to act up with the current system in place.
Zaras POS system runs on DOS, which hasnt been supported by Microsoft anymore.  DOS is a genuinely still and reliable operating system,. Zara has no problems with it.  The only obvious benefit of upgrading the system at this point in time would be to provide real-time inventory tracking and the ability to stop other stores inventories. While an upgraded system would provide more functionality, it is not essential to sustaining the core competencies that Zara currently excels at fast fashion.
Upgrading to a new operating system, such as Windows, Unix or Linux and cathode-ray oscilloscope up networks within stores and across the company would be very costly.



Moreover, it would require training for employees, as well as death penalty support and continued systems maintenance.   Even though this networking functionality would be of assistance to customers and store managers, it would deviate from the companys extremely effective business model. I recommend that Zara maintain its current systems operations. By upgrading, Zara puts itself at financial risk with potential loss of sales, increase in force-out (additional IT staff), and the potential for adding complexity to a relatively simple operation.  
Xan Salgado Badas,
power point if IT, Inditex
August 28, 2003
Part 2: Issue identification

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