Itm - Zara and Schwab
Pauline
MIB – Chelsea
20th April 2012
Body – 2180 words
Total – 3052 words
ITM Report on Zara & Charles Schwab Corporation
HULT International Business School – Pr. R. Gruenbaum
Year 2011-2012
Executive Summary
IT has become a crucial area to consider when developing a business. IT systems and applications need to evolve, be adapted and updated on a regular basis in order for a company to maintain its competitive advantage.
Many companies, when on the brink of change, hesitate and find it difficult to make a decision with regard to IT systems and applications. Reasons could be the cost of the investment or the support it would need in the future. On the other hand, maintaining the status quo situation can put a company’s competitive advantage at risk as well as its reputation.
Zara and Schwab are companies facing those dilemmas.
This report intends to identify, with models at hand, the current situation and focus of each company and the role of IT in those organisations respectively. This analysis will enable the key issues to appear more clearly and to suggest solutions that are in line with each company’s focus, direction and orientation.
The models used are:
• The Value Disciplines by Treacy and Wiersema (1993)
• The IO Maturity Model by Marchand, Kettinger & Rollins (2001)
• The 5-Levels of IT-Enabled Business Transformation by Venkatraman (1994)
The Results
Zara Schwab
Value Discipline Operational Excellence Product Leadership
IO Maturity Weak – Low integration between shop managers information and with headquarters Strong. Though the role of Information might be too central, IT and IS dominating Business strategy.
Level of Transformation Situation: Localised exploitation
Goal: Internal Integration Situation: Business Network Redesign
Goal: Business Scope Redefinition
The Recommendations
Zara
MIB – Chelsea
20th April 2012
Body – 2180 words
Total – 3052 words
ITM Report on Zara & Charles Schwab Corporation
HULT International Business School – Pr. R. Gruenbaum
Year 2011-2012
Executive Summary
IT has become a crucial area to consider when developing a business. IT systems and applications need to evolve, be adapted and updated on a regular basis in order for a company to maintain its competitive advantage.
Many companies, when on the brink of change, hesitate and find it difficult to make a decision with regard to IT systems and applications. Reasons could be the cost of the investment or the support it would need in the future. On the other hand, maintaining the status quo situation can put a company’s competitive advantage at risk as well as its reputation.
Zara and Schwab are companies facing those dilemmas.
This report intends to identify, with models at hand, the current situation and focus of each company and the role of IT in those organisations respectively. This analysis will enable the key issues to appear more clearly and to suggest solutions that are in line with each company’s focus, direction and orientation.
The models used are:
• The Value Disciplines by Treacy and Wiersema (1993)
• The IO Maturity Model by Marchand, Kettinger & Rollins (2001)
• The 5-Levels of IT-Enabled Business Transformation by Venkatraman (1994)
The Results
Zara Schwab
Value Discipline Operational Excellence Product Leadership
IO Maturity Weak – Low integration between shop managers information and with headquarters Strong. Though the role of Information might be too central, IT and IS dominating Business strategy.
Level of Transformation Situation: Localised exploitation
Goal: Internal Integration Situation: Business Network Redesign
Goal: Business Scope Redefinition
The Recommendations
Zara
References: Unknown, 1994. Value Disciplines (Treacy & Wiersema). 12manage, [online] Available at: http://www.12manage.com/methods_valuedisciplines.html [Accessed on the 19 April 2012] PDFs N. Venkatraman, 1994. IT-Enabled Business Transformation : From Automation to Business Scope Redefinition. [pdf] Harvard Business Review. Available at : [Accessed on the 20 April 2012] Pictures Farlex, The Free Dictionary, 2012. Point of Sale Available at: http://www.thefreedictionary.com/Point-Of-Sale [Accessed on the 20 April 2012] Merriam-Webster, 2012 USLegal Definitions, 2012. Crowd funding Available at http://definitions.uslegal.com/c/crowd-funding/ [Accessed on the 20 April 2012] Bibliography Agilier, 2012. "Discipline of the Market Makers" by Michael Treacy and Fred Wiersema. Agilier, [online] Available at: http://www.agilier.com/book-reviews/discipline-of-the-market-makers.html [Accessed on the 18 April 2012] Product Bookshelf, unknown A. Petroff, 2012. Start-up finances: Student entrepreneurs tap their networks. FT.com, [online] Available at: http://www.ft.com/cms/s/2/7ec67072-6134-11e1-8a8e-00144feabdc0.html#axzz1smlAnG9r [Accessed on the 19 April 2012] Glossary