Zara´s Information Technology System - 553 Words

Zara’s IT was positioned in the support mode quadrant on the IT strategic impact grid. This demonstrates that Zaras 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,Show MoreRelatedZar A Critique Of A Business Case Essay1269 Words   |  6 Pageseffectiveness of such a process. An example of successful operations strategy in the retail industry is the strategy employed by Zara which is discussed in this critique. 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Should the company upgrade the POS terminals to a modern operating system? It might not be in the retailer’s best interest to perform such upgrade, as the new system will replace three of the existing legacy systems in terms of ordering and fulfillment. The IS department will perceive such upgrade as a radical move and is expected to show high resistance in response to it. Even though Zara has a decentralized decision making process, the retailer’s IS department exercises absolute autonomyRead MoreZara Internationalization Analysis1099 Words   |  5 PagesZARA-Internationalization Analysis When it comes to internationalization strategies, ZARA is the perfect case to look at. By putting in practice a set of different strategies, ZARA has accomplished great positioning worldwide and is one of the most recognized brands in the apparel market. Listed below are the main internationalization strategies ZARA has used to become one of the leading clothing brands in the world. Operating Filial When ZARA first started opening stores outside of Spain