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The globally recognized clothing store, Zara is a retailer that functions on an outdated DOS system and management is beginning to question their information technology (IT) systems.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.

Visio for Websites...

Microsoft Office includes four basic programs (1) Microsoft Office Word, (2) Microsoft Office PowerPoint, (3) Microsoft Office Excel and (4) Microsoft Office Outlook but what about Microsoft Visio? Microsoft Visio is a diagramming program that allows one to create professional diagrams to simplify complex information with shapes, collaboration tools and data-linked diagrams. Originally, my first thought of Microsoft Visio was “it creates a diagram, that’s simple; you can do that on Microsoft Word or Microsoft PowerPoint.” But after a little research and some experimenting, Microsoft Visio does more than that! The following is a simple swimlane created to show the Meeting Planner Process starting from when the client gives the meeting logistics to the meeting planner all the way till when the client makes their payment to the meeting planning company.  Notice the extra details in each aspect and the complicated process that is easily clarified with a simple flow chart.

Microsoft Visio could be a successful contribution to my company. We specialize in website registrations where we design websites for clients and track attendee registration through the website. Adding diagrams and flow charts to our websites can certainly have a great impact as it could emphasize important information in a simple image. A diagram is definitely easier to show complex or large amounts of material in a professional and simple manner. Having Microsoft Visio flow charts on client websites would keep the information neat, enhanced and impressive. Also, seeing as we use Microsoft Excel for many daily projects and reports we can import information from the spreadsheets into Microsoft Visio and create seamless diagrams. This would be a great added feature for our client websites and one I am sure our clients would always request. A perfect example would be expressing the travel process to our attendees. As many times as we explain the process in detail on the website attendees are always confused. Adding a simple diagram like the one below would avoid frustrated attendees, aggravated phone calls and irritated emails. And the best part about the illustration below is that it only took about fifteen minutes to create! That includes adding color and pictures.

Adding such a feature as Microsoft Visio diagrams to our services would benefit especially since the majority of our services are based on a la carte pricing. The price range could be anywhere from $150 to $800 depending on the level and simplicity of the diagram. This would be additional revenue added just for a diagram. That could be an extra $450 more to the client’s total charges and $450 more in revenue. Microsoft Visio would be a great addition to our company and would have positive effects and advantages. The thought of just adding diagrams to client websites is just one step to improve our services. We could create diagrams about our company and display them at tradeshows to better explain our company process and how we work to create great service for our clients. We can use them internally for training new hires about the how to’s of our business or express sales trends to the marketing team. The opportunities are endless with Microsoft Visio. 

Zara Being Left Behind

Zara, a globally recognized clothing retailer that actualized $502 million in net income and $4,554 million in revenues for its 2002 fiscal-year, is finding information technology (IT) challenges within their company. Why is such a successful company affected by IT issues? Xan Salgado Badas, head of IT for Inditex is now questioning Zara’s current processes and equipment. Zara, Inditex’s largest chain of stores still runs on a Disk Operating System (DOS) which is not even supported by Microsoft any more. DOS is a widely installed operating system in personal computers, it was originally known as Microsoft’s MS-DOS (Microsoft Disk Operating System) and was replaced in 1985 with Windows OS. Zara has been working with their POS terminals to continue the use of the DOS system. The DOS system provides Zara with the basic IT applications of inventory control, ordering, purchasing, returning, etc. The system though has its disadvantages as it runs on a modem and all the software and programs do not communicate with each other. Also, store employees cannot view their inventory or other store inventories; they need to call stores when looking for a specific item. The store managers need to walk around the store and determine what to order as replenishment quantities when it comes time to purchasing. These are just a few setbacks that Zara is encountering that has made Salgado rethink their IT components. Salgado even says store managers are asking for their POS application to include more and he is reconsidering their current contracts with their vendor. Even though Zara’s vendor reveals Zara as their biggest customer, they made it clear that Zara is its only customer using the outdated DOS system.  The vendor reassures Zara that they will not be making drastic changes but that has not been confirmed in any written documentation.

Salgado has found four alternatives to solving his IT problem within the company.

• 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.
• 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.
• Upgrade Zara’s current POS terminals to build new capabilities into the software and a more customized system.
• Update Zara’s current POS terminals and software system to Windows, UNIX or Linux.

The first alternative to Zara’s IT is a good for the company as they do not have to worry about changes or adapting to new systems because their current DOS system is certainly stable. Another benefit for their current system is that the software is easy to install and opening a new store involves no IT assistance as store manages simply insert a disk and allow the installation to begin. However, this alternative has a very large disadvantage that will affect Zara in the future when their vendor stops producing the POS terminals with the older DOS system. Even though the vendor promises there will be no changes, the day will come when Zara needs to upgrade to a new version of software. In addition, the current DOS software is not even supported by Microsoft any longer as it has become outdated. Alternative two follows the same advantages and disadvantages as the first but has additional factors to consider. With alternative two the company can continue to keep their current processes and purchase more POS terminals before their vendor stops selling the older DOS system. This however, will cause a financial burden on Zara. Instead of the company allocating such expenses to an older system that will eventually need to be upgraded, why not use the money to invest in a system that will allow Zara to progress and move forward in future endeavors. Holding off on such an upgrade is in inevitable as it will eventually need to occur and Zara will need to find a modernized and accepted software. Alternative three is fantastic and it will give Zara a customized feature. This is exactly what store managers are looking for, more options. Zara can duplicate the system process that already works for their company and in addition add features that will not only benefit them but expand their services. This option will also allow for more quick and efficient services for the stores when inventory records are updated and purchasing becomes improved. This alternative though will entail experienced IT professionals. As Salgado’s technical lead for the POS system expresses, he knows the current system very well and IT is not involved in many store openings as the software is that easy to install. This alternative will require IT assistants to open stores and to troubleshoot all the custom features. This alternative will also come as a pricy option with all those customized features. The fourth alternative is surely the best option for Zara. Zara switching to Windows, UNIX or Linux will give the company an updated and current software to use, unlike the current DOS system that is not even supported by Microsoft. The modernized version will give way to efficient service and allow stores to perform at a higher level by adding functionality, networking capability and more. This alternative will allow all platforms to communicate with each other and be in sync. Switching to Windows, UNIX or Linux will definitely come at a price and will involve IT assistance but will certainly benefit Zara in the future. Zara will stay current with technology, give store managers the right tools to provide much more quality service to their consumers, improve the overall operation and positively increase revenue. 

Reflecting on Junk Van

Marcus Kingo has found his company lacking the key services it once provided to their customers and the overall management and organization of his company, Junk Van. He needs to find a solution that is cost effectibe, can be established in a short time, simple to manage, remotely accessible to all employees especially drivers, user friendly and most importantly organized to keep all the components of his operation under control. The five alternatives Kingo has are upgrading his current program, Microsoft Access, a custom application, Google Docs, Platform as a Service (PaaS) or Enterprise Resource Planning (ERP). The Consultants did an incredible presentation on Junk Van and were very convincing about the Stage 50 program. Their presentation had all the key components and demonstrated how Junk Van can prosper and improve. 4e Consultants provided Junk Van with a good list of five software options Junk Van can use to flourish their company. After narrowing the choices down to ERP they provided the top ERP alternative that would work best for Junk Van, Stage 50.

The original analysis of Junk Van revealed the advantages and disadvantages of all five alternatives. It concluded that the fourth alternative, PaaS was the best option for Kingo as it suits all of his requirements. However, 4e Consultants provided respectable reasons as to why PaaS is not the better option for Junk Van. The drawbacks of this alternative are expensive cost for a small business like Junk Van, the software must be purchased and built with additional costs, customization comes at a fee as well and there is uncertainty as to how much platform is actually needed for the company. These shortcomings were certainly overlooked in the first analysis and need to be revaluated. The cost factor is an enormous disadvantage, especially for Kingo, as he cannot afford to pay $600 a month, not including extra charges for purchasing software, building programs and customization.

After viewing the presentation it is clear that ERP is the best alternative for Kingo. ERP is affordable, facilitates future growth, includes reliable communication, offers simultaneous access, and performs automatic updates in real time. 4e Consultants took their presentation a step further and offered a specific ERP solution that would be appropriate for Kingo and his company. As good as SAP Business One and Microsoft Dynamics are their software comes at a very high cost, about $20K-$50K. SAP Business One also requires about 18-20 months for installation and Microsoft Dynamics provides average customer service to their customers. Sage 50 though, gives Kingo the answer to all his problems. Sage 50 is designed for small businesses that allow the company to expand and the software grows with the company giving future opportunities to upgrades as Junk Van succeeds. The software creates customer listing, includes payroll functionality and provides good customer service and training capabilities. Stage 50 also eliminates frustrations like daily emails to drivers about reservations, manual inputting for drivers, paper invoices, revisiting customer sites, outside bookkeeping, manual payroll and data clerks. After further evaluation and viewing the presentation by 4e Consultants it is time to consider the ERP system for Junk Van and stress to Kingo how well Sage 50 will do for his company. 

Reflecting on P&G

The consultants did a great job at presenting their case and showing that the third alternative, Web-Enabled EDC system would certainly be the best option for P&G. They explained that the problem for P&G is to find a solution that would add the most value to the company. The consultants illustrated the risks and disadvantages of the first two problems very well. It was very convincing to see how the first alternative, updating the paper-based process and the second alternative, digital imaging would sacrifice time, cost and quality for P&G.

The consultants brought up a few very good points to keep in mind about the Web Enabled EDC system. P&G would be the first in its industry to implement this type of design, giving them a competitive advantage against their competitors. This alternatives would also speed up the process and reduce the length of time it takes for their company to complete clinical trials for prescription drugs. Another reward is that P&G would save over $590 million with this new technology based process. The consultants demonstrated many other great advantages when explaining how the Web Enabled EDC system would enhance the company’s time management that were overlooked in the first analysis of P&G. Real-time study progress for relevant items like patient compliance data, reduced investigation burden for monitoring and data management, less data entry for site coordinators and eliminating discrepancies in queries are just a few of those benefits. As the consultants explained Web-Enabled EDC would improve P&G’s software, provide a more efficient workforce and investigators would have immediate access to the database.

As mentioned, in the first analysis of P&G and as the consultants recommended, the Web Enabled EDC would be the better solution for the company to reduce the length of time it takes to complete clinical trials for prescription drugs. It does not only improve the timing of clinical trials but has a positive effect on cost management and quality work for P&G. It also allows the company to venture into the digital era of experiencing new technologies. Overall, the Web Enabled EDC alternative would certainly improve the efficiency of P&G’s current data management system.      

Junk Van or No Van

Entrepreneur, Marcus Kingo invested himself in his company, took pride in his work and looked for success in creating a franchise company. Kingo’s fast-growing waste collection business has become a challenge ever since inefficiency and errors came knocking on his door. As his business is expanding operational challenges are emerging due to his custom-built MS-Works® database. Customer service is being sacrificed, the operation is negatively impacted and expenses are increasing because Junk Van’s data processing system is lacking in performance. Kingo has been left with a difficult decision of improving his virtual business model by finding the right information technology (IT) tool for his company. The right solution needs to be cost effective, established in a short time, simple to manage, remotely accessible to all employees especially drivers, use friendly and most importantly organized to keep all the components of his operation under control. The components Kingo’s operation consists of are the clerk’s database and bookkeeping, the driver’s itineraries, customer billing, payments and reservations, driver’s updates on performed jobs and staff payroll.

Kingo found five possible solutions for his business problem. The first option is to upgrade his MS- Works® to MS- Access® which can be done in a short time and at a low price. Converting his system will also fulfill his needs of hosting multiple computers and remote access. However, in order for the system to have remote access capabilities it must be hosted by a shared server which would require outside assistance as Kingo is unable to perform the set up. He is qualified enough to perform the upgrade on the local computers but that scenario would not allow for remote access. Adding the shared server would not only require professional assistance but also require additional user licenses for every employee. The licenses are priced at $179 per a computer. Kingo’s second option is to customize his own application. This would involve an IT specialist to build a custom system specifically for Kingo that would include all the necessary features to fit his virtual business model. Although, a custom system would be built to satisfy the central database with remote access per Junk Van’s needs, it would be costly and take up to four weeks to have the system operating. The upfront cost would be $2,000 plus $60 per hour per developer for maintenance support would be needed. It is difficult to estimate the cost of maintenance as Kingo could not predict how much maintenance would be needed for his custom-made software. Other downfalls with this alternative would be extra costs for data migration, not being able to approve the application or even see it before hand and support for this customized software would be billed by the hour. Google Docs would be Kingo’s third alternative and would certainly fulfill his price conscious factor as the program is free for up to ten user accounts and small businesses are only charged $5 per user per month or $50 per use per year. It would be implemented rather quickly as Kingo already created a free account to learn more, it is certainly user friendly and Kingo can migrate the system himself in a short amount of time. Although, Google Docs requires the company to input all their data on the online spreadsheet, it would cause issues for the call center operators who would need to work off a very extensive form. Inputting confidential customer and company information on this online application also raises confidentiality issues that Kingo may have to deal with in the future. Google Docs even lacks customer support and Kingo would be forced to use online blogs and forums for assistance with the program. A fourth alternative for Kingo’s Junk Van Company is called Platform as a Service (PaaS). This system is similar to Google Docs, as it delivers on a cloud-computing infrastructure but has the ability to provide users with a build your own application and common applications with a shared computing platform through a third party. Kingo witnessed this program in action when a sales representative performed an on-site trial and found that the system was straightforward. He could build forms and connect tables just as the agent did with the tasks. Another positive factor about this program is that it would take about three days to implement and migrate all of the company’s data. However, this software comes at a cost of $300 to $600 a month depending on the storage space, user licenses and amount of applications. For Kingo to customize the program further he would need to invest more time and money, the quoted amount for additional support would cost him $180 per hour. Seeing as price is a set back with this option, the advantages would be that no long-term contracts are required, monthly service amounts can be changed at any time and canceling the service only requires one month’s notice. A fifth alternative for Kingo would be the Enterprise Resource Planning (ERP) System that is built around a central database, designed for accessible remote access and allows for integrated business procedures. This alternative comes at a high cost of $2,500 per user per year with an expected user amount of 20-25. Seeing as Junk Van had fewer than 20-25 users the license prices would likely be higher at an estimated amount of $12,000 in lieu of four licenses. The ERP system also focused on finance and manufacture structures of a business; sections of the business Kingo did not need to invest time or money on since it is not relevant to what he needs. The system not only emphasizes on production but appears static and not as flexible to benefit Kingo’s virtual business model.

Kingo must make an important decision for his company in order to remain successful and escalate Junk Van to the next level of franchise. Junk Van is currently struggling to reduce inefficiencies, improve customer service, staying organized, keeping costs low and managing software that will enable important features like remote access and user friendly forms. Kingo hopes to keep his virtual business model idea and find the right software for his company. The fourth alternative, Platform as a Service (PaaS) is a logical opportunity for Kingo to choose as it provides all the right answers for him. It is cost effective as he is able to scale the service up or down at any point. This allows him to test packages and find the right one along with the right cost that suits his company best. In addition there are no long-term contracts to consider and cancellation of the software is simple. The program is user friendly to the point that Kingo can perform tasks himself and still have the ability to rely on their support system if needed. It also allows Kingo to build his own customizable application if he chooses. Best of all, the set up time only requires three days!

P&G…Upgrading for the Better?

Procter & Gamble (P&G) loses millions of dollars each day a prescription drug is delayed to enter the market. In order for a new prescription drug to enter the market it must pass IV Phase trials, cost a company over $125 million and be approved by the FDA. During each of those phases, there is an average percentage of drugs that are tested and do not follow through to the next phase. For example, only 30% of the drugs that enter Phase II move onto Phase III. As anyone can imagine the other 70% of drugs that cannot move on to the next phase cause the company to lose roughly $15 million. With large dollar amounts like that, it is no wonder why P&G is looking for a solution to reduce the length of time it takes for their company to complete clinical trials for prescription drugs.

P&G currently manages their procedure through a typical paper-based trial that involves three phases: trial preparation, data collection and verification and data management and review. The scope of this procedure is that it works for P&G as they are accustomed to this process and know their financial budget for this method. However, with this process the lead times are excessive, causing the company to suffer in delays of introducing a new drug. P&G can turn to three respectable alternatives that will prevent delays in completing clinical trials for new prescription drugs. The important factor for P&G is to solve their problem by finding an alternative that will ultimately reduce the length of time it takes to complete clinical trials. For starters, P&G can improve their familiar paper-based system by speeding up the data management process. This alternative would entail an increase of staff and express mail shipments. Seeing as P&G currently has an extended process in site monitoring and source-data verification, added staff would decrease the time allowed for these two stages. Express mail shipments would also reduce the length of time during the paper-based process by delivering at a fast speed. Although, these two improvements would hurry the familiar system P&G uses they would still have to rely on the other stages of the paper-based process that create delays. A second alternative for P&G is the use of digital imaging, which follows the same procedure of the paper-based system except when transmitting data from investigator sites to the pharmaceutical sponsors. This method like the first alternative reduces the length of time but does not provide a significant decrease because delays occur in several stages of the process before and after the digital imaging period. For instance, investigative sites allow for CRF’s to pile up before faxing them into the system. Also, the time it takes to review the CRF images still create delays in the process. A third alternative for P&G is the use of Web-enabled EDC. This process truly diminishes the time it takes to complete a clinical trial as data is entered into the data management system, records are immediately applied, potential errors are identified during the entry process and all the data is available to sponsors immediately. With this option, there are fewer visits to the sites are required to perform source data verification. This reduction will help decrease the delays caused in the paper-based process. As Ray D’Alonzo, Associate Director for Clinical Data Management at Proctor & Gamble explains in the case study, Procter & Gamble: Electronic Data Capture and Clinical Trial Management the Web-enabled EDC is “a no-brainer.” This solution could speed up the process of clinical trials and allow the company to advance their methods through the latest technology.

This third alternative is allows the company to challenge their time constraints and complete clinical trials at a faster speed but are they considering costs? How much will the Web-enabled EDC system cost for P&G and will it pay itself off in the future? This is an important question to ask since technology is improving and changing every day. Will this system be outdated in a few years? Technology is constantly changing and asking these types of questions can really help P&G find the best option for reducing the time it takes for clinical trials. One can see that P&G’s paper-based system is certainly obsolete and improving this system will still leave the company behind in today’s digital era, making this not the most logical alternative. Also, the cost perspective for this alternative would result in higher expenses when hiring additional staff and paying for express shipment. Digital imaging is not a rational choice for P&G either as it still relies on their old school paper-based process to complete clinical trials and it will affect the company’s overhead. Web-enabled EDC is allowing P&G to enter a more technological stage by advancing their equipment. New technology does not come free and usually has high price tags but it will truly be worth P&G’s investments. Staying current with technology is significant to a company like P&G because any new products delivered today are already ancient history tomorrow due to new advancements being made in such a tech based world. Alternative three is certainly staying current and allows P&G to enter the digital era by using Web-enabled EDC. This option answers P&G’s problem of reducing the time it takes to complete clinical trials. It also allows for extra benefits that include less visits to sites, potential errors being identified and up to date records.