ZARA CASE

Problem/Issue Statement

The problem that Zara faces is that they are using DOS operating system for their PDAs and POS terminals. DOS operating system does not require a lot of computing resources, which makes it easy and cost proficient to maintain. However the user interface is not friendly for people used to Smart Phone Touch Screens and it requires additional training for the new employees. Since 2003, DOS is not supported by any vendors and in the future it will be harder for Zara to keep up with any new market trends.

The symptoms are very clear in this case. DOS does not support Store Managers with inventory count for their own store, any new garments and trends need to be seen through the small screen of Zara’s PDAs, and returns had to be completed through the same screen, which customers and store managers complained to be a very time consuming process.

The scope of the problem is Zara’s retail stores that are not supported with enough data. It is harder for management to make decisions based only on physical observation and customer service is hurt by stores not being able to see what inventory neighbor stores have at the moment.

Situation Assessment

The context of the problem is that Zara does not have a written declaration in their contract that the hardware vendor will continue to provide them with machines that support DOS. Even if he continues to do so, DOS cannot accommodate networks within stores and across the company, which potentially hurts store management decisions.

The decision criteria are what program should the company use for the future? Or should they continue using DOS? To find out the best answer, Zara should make a outline and start comparing solutions for their options.

List of Plausible Alternative Courses of Action

  Continuing the use of DOS.

  Purchasing enough of the current POS terminals now.

  Integrating new operating system such as Windows or Linux.

       Upgrading Software procedures for improved functionality.

  Buying modern PCs that will amplify capabilities of store management. 

All the above mentioned alternatives will provide the necessary inter-terminal communication. So instead of directing the inventory requirement to the head office, the individual stores can exchange the inventory as per their requirement and also order the necessary inventory from the warehouse quickly. This will reduce the lead time and better fulfill the customer demand. The upgradation with multifunctional system will also resolve the problem of obsolete hard-ware requirement. The up-gradation will completely remove the existing lacuna and will also come in line with the latest technology used by majority of businesses. Hence, the problem of hard-ware parts will be out of question. Also the compliance of regulations for the IT governance will be met more stringently.

Evaluation of Alternatives

Zara should evaluate their alternatives by seeing which one would work the best for the company. The executives should make a template and weigh up each option.

By evaluating each option, Zara can chose the best alternative that will make them independent of their hardware vendor as well as help the company stay current with market trends.

Recommendation

My recommendation for the company would be to upgrade their operational system. Although DOS works well for them, the future is not in it. It makes them dependent of their hardware vendor and opening a new store may become risky if they cannot provide it with the same hardware tools. It will be impossible for the company to run on different operational systems and therefore Zara should update before it’s enforced to do so.  A newer system such as Windows will support store management with more information and it will increase efficiency of customers’ returns.