Reflecting on Zara

The globally recognized clothing store, Zara is a retailer that functions on an outdated DOS system and management is beginning to question their information technology (IT) systems. After carefully analyzing the company and the functions of organization, four alternatives have been given to Zara to implement as one of their solutions. The following are the four alternatives:

1. Discard making any changes to Zara’s current systems and let the company continue to run as it has been on the older DOS system.
2. Continue using Zara’s current systems but purchasing many extra POS terminals from their vendor to ensure they have for future use in case their vendor stops the selling the older system.
3. Upgrade Zara’s current POS terminals to build new capabilities into the software and a more customized system.
4. Update Zara’s current POS terminals and software system to Windows, UNIX or Linux.

After the first evaluation of Zara’s IT procedures and processes the fourth alternative appeared as the best option for the company to adapt. This is because switching to Windows, UNIX or Linux will give the company updated and current software to utilize and will allow all platforms to communicate with each other. This alternative would also provide Zara with efficient service to allow stores to perform at a higher level by adding functionality and networking capabilities. However, after the consultation with Fast Solution Consultants this alternative may benefit Zara but alternative three, of updating the POS terminals to a new operating system would certainly have a larger effect on the company. Alternative three would have the same benefits as the fourth alternative but as the consultants mentioned this alternative fulfills all of Zara’s requirements for their IT system. A new operating system would have the follow advantages as well:

1. Be independent from the POS vendor
2. Stores would have accessibility to inventory look up
3. Real time inventory updates
4. Networking within the stores
5. Easily transmitted data to HQ
6. Easy installation
7. Digital receipts
8. Investigations of chargeback situations by credit card companies
9. Online interaction
10. Enhanced traceability of goods
11. Inventory management
12. Retail transaction interface         

Not only will alternative three bring about these great benefits, it will also generate a great deal of savings for Zara. Taking all the advantages into account and Fast Solution Consultants conclusion that “upgrading to a modern technology system will allow Zara to improve efficiency in the ordering, fulfillment and manufacturing process, thereby increasing  efficiencies in operations, product development, information and communication and also reduce cost of production, marketing and advertising” alternative three is the best recommendation for Zara.