zara itm ppt

8/9/2019 Zara ITM Ppt

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The original business idea was very simple. Link customerdemand to manufacturing, and link manufacturing to distribution.That is the idea we still live by.

Jos Mara !astellano "os, #ndite$ !%&


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SummarySummary Zara is a large chain of stores run by Inditex, a multinational clothing

retailer and manufacture

Zara business model: Vertically integrated retailer in apparel industry ,linking customer demand to manufacturing , and link manufacturing todistribution and to retailing business

Major business strategies include

Speed ecentrali!ed decision making

"o# priority to Marketing and $d%ertising

Inno%ati%e &ashion esign Strategy

'ost e(ecti%e and basic I) systems

*ighly e+cient supply chain in place

)he major issue #ithin the Zara management #as #hether to upgradethe -S terminals #hich ran on -S. -S #as stable but #as outdated,performed %ery basic functions, unsure if it could support the gro#ingbusiness and might lose support from hard#are %endor.


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IT ChallengesIT Challenges

"o# or Minimal I) /udget #hich is .012 of re%enue compared

to industry standard of 32

4o 'ost /ene5t $nalysis done on I) in%estments

$pplication running on -S #hich is outdated

4o I) expertise in IS department, most of them hired fromlocal uni%ersity

refer to ha%e in house applications #hich limit the scope

4o ')- or 'I- for e(ecti%e I) management

*igh time lag on reporting from stores due to adoption ofoutdated technology 67sage of &loppy isc and telephonecalls8

$bsence of real time database, lack of communication #ithinstores


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Business ChallengesBusiness Challenges

In%entory tracking mechanism not accurate

4o interaction bet#een the stores for e(ecti%e in%entorymanagement

9ork o%er load for store managers

%en though company ha%e an e(ecti%e supply chain, it may loseits competiti%e ad%antage due to lack of I) in%estments

Major chunk of re%enue comes from Spain, ha%e high geographicrisk

)echnology upgradation re;uired for the current -S

4o forecasting is done, hence #hile increase demand theallocation of products are based on commercials instinct


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Business CapabilitiesBusiness Capabilities


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Business ProcessBusiness Process

Primary Activities Current operationsOrdering Manual checking of in%entories . &or

ordering $


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APA " #is$ Analysis %APA " #is$ Analysis %

ScorecardScorecard


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Architectural #is$Architectural #is$


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Complexity RiskComplexity Risk


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Database RiskDatabase Risk


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Operational RiskOperational Risk


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Supportability RiskSupportability Risk


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Application DispositionApplication Disposition

"o# I) Value *igh

*igh =isk "o#


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#ecommendations#ecommendations

Zara should consider gradually and steadily upgrading the current

operating system.

/usiness strategy needs to be de%eloped as per the change in technology

Should not further in%est in the current obsolete system and conduct pilottest for the ne# systems

Zara should run the old and the ne# systems side by side, until the ne#system is smooth and robust

9hile the cost of the ne# soft#are #ill be a one>time charge, themaintenance cost #ill be distributed o%er the long run.

9e suggest 74I? o%er 9indo#s due to lo# maintenance cost, its secureand highly scalable

Zara should #eigh the options of using commercial soft#are such as '=Mand S$.


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I) System "ayoutI) System "ayout

Common

Network

&e' IT (ayout

Current IT

(ayout

$> @

$>3 $>A

$: @

$ :

3

$: A

Store -1

Store -2

$> @

$>3 $>A

$: @

$ :3

$: A

Store -1

Store -2

4o communication bet#een

stores 7nidirectional communication

#ith Modem

'ommunication bet#eenstores possible

/i>directional communication#ith Modem


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-rder &ul5llment rocess-rder &ul5llment rocess

-(errecei%ed in

digitalformat from"a 'oruna

Store @

Store 3

Store A

Segment @6Men8

Segment 369omen8

Segment A6Bids8

Storemanag

er6Infrar

ed8

'ombined-rder

-rder isgenerated Cgi%en to "a

'oruna

-(errecei%ed in

digitalformat from"a 'oruna

Store @

Store 3

Store A

Storemanager

-rder isgenerated Cgi%en to "a

'oruna

Current Order FulfllmentProcess

&e' Order FulfllmentProcess


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)hank Dou)hank Dou

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