Tuesday, February 25, 2014

Zara Case Preparation

Zara is faced with the decision of upgrading their old POS system from a system which is no longer supported by Microsoft. Although nothing is wrong with the current system, if the hardware vendor decides to upgrade machines, the new machines may no longer be compatible with the outdated DOS system that Zara is currently running on.

Situation Assessment
Although Zara's current process works flawlessly, it can not keep up with the fast growing  international company. Having a system that has no technical support to assist with the expansion may lead to risks later down the line when Zara opens more stores.

Alternative Courses of Action and Evaluation
Option 1: Keep the current system.
"If if ain't broke, don't fix it." Zara's current system allows them to quickly design, produce and distribute new garments in less than one month. Also, Salgado and his colleagues write their own applications which allows for complete customization. Keeping this process will cost the company nothing, but they do run the risk of not keeping up with technology and having issues later on down the road.

Option 2:
Upgrading to a new operating system
Zara has 3 options of which include Micosoft, Linux and Unix. The main concern with upgrading is cost, time, and running into hiccups that come along with such a drastic change in IT. This new upgrade would provide Zara with new networking capabilities, and the ability to better monitor inventory.

Even though I am a firm believer in not trying to fix something that "ain't broke", making to decision to not upgrade is just postponing the inevitable. Upgrading  would provide Zara with improved communication between headquarters and other Zara stores and their inventories. The stores can run more efficiently, especially for the customers. I don't believe that the DOS will stick around forever, and the current team will eventually retire and/or move on. There needs to be a system that is easily adaptable to the changes that happen within the company as well as the industry. Zara should seriously consider upgrading to a new system based on cost, functionality and flexibility.

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