Wednesday, June 13, 2012

Info 563 Case Reflection: Zara



    Since the C-level meeting that we had with the consulting group, I have completely changed my view of this situation. Rather than focus on the benefits of switching from the POS system to a new system, I started to think about the risk that the company is taking by keeping the POS system for ZARA. For the company, I believe the question we should ask ourselves is: “Is now the right time to make changes, or should the company simply continues to use the IT infrastructure that has worked so well for so long?”  Also knowing that Zara is growing rapidly, should Zara continue building its empire on top of a more and more obsolete operating system? I believe that even Sanchez, who believes in the POS system, will agree that “one day” they will need to switch the POS system with more updated technology.

      As a C-level executive, I would recommend my colleagues to update our system right now rather than waiting until we actually hit a serious problem. I will recommend this investment by explaining the possible future risks and what would happen if we would have to switch out our technology at last minute. I believe the conversation between Salgado and Sanchez really helped us determine the proper choice in the case study. Salgado tries to convince Sanchez, who believes that POS is perfectly fine, to convert to newer technology. Rather than explaining what kind of risks are involved with staying with the POS system, Salgado tries to convince him by introducing visions of what the new technology might bring.

      I believe ZARA will improve from having new technology brought to its IT. For example, this change will allow for online sites and create better and faster inventory updates. It will also connect all of ZARA’s chain stores. As long as ZARA can adapt to this technology the way they want, they may be able to keep their tradition of person to person interaction with customers, and at the same time, be more efficient at helping and getting them what they want.

What technology can bring -
*On 2011, ZARA opened their first online store in USA and South Korean.
*Info about ZARA's Online Sales

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