Essay About Binding Contract And Biggest It Problem

Zara Case Study
Zara Case Study
The biggest IT problem that ZARA faced was the lack of initiative in the
use of technology within its stores . This lack of initiative created
several problems in information management for store product managers .
DOS , as an operating system , was already obsolete at that point in time .
Although DOS is very stable , it lacks the immense range of applications ,
flexibility and time saving that operating systems such as Windows and
Linux (especially Red Hat ) can provide . Moreover , ZARA was the only
retailer to use DOS as an OS which also meant that there was no
guarantee of future services by the vendor . The vendor officially did
not sign a binding contract to continue providing DOS compatibly POS
systems in the future . With continued future plans for growth of stores
in Italy and other countries , it would be napve for the management to
assume that DOS based POS systems would be available after a few years .
There were two other issues within stores . Firstly , lack of continuous
internet connectivity strictly restricted communication that would
otherwise benefit store product managers and product managers in terms
of time saving and flexibility . Secondly , the use of PDAs to calculate
returns and check inventory was tedious and difficult for product
managers .
Recommendations
Create and present a proposal for discussion in the technology steering
committee that outlines a chronological plan of action for upgrading the
system
Upgrade the POS system starting from stores in Spain only . Stores in
Spain generate 47 of ZARA s sales . It is practical to launch a pilot
project in Spain first because of ease of project implementation
especially considering communication and geographical proximity to head
office (and the IT team of ZARA . This project can be expanded to
include countries after a period of six months after its success .
Port