Zara for Fast Fashion
Case Analysis 1: Zara IT for Fast Fashion
1.) After analyzing the case Zara: IT for Fast Fashion and reviewing the company’s operational strategies, we can identify both positive and negative aspects within the organization. Major contributors to the company’s success include: a fined tuned value chain system; lean manufacturing, design and distribution; the ability read target markets and predict market trends. Conversely the most significant issues identified in the case include:
(1) Poor IT and Business Integration
(2) Lack of strong IT Leadership
(3) No formal IT objectives, no leadership development plan
(4) Low IT funding and personnel budgets
(5) Out dated IT hardware and software
(6) No internal communication networks
A.) The most important issue in the Zara case is the absence of IT and Business integration. This is the most significant problem in the case because it is the catalyst for all other issues within Zara. In analyzing the case we find that Zara did not appoint a CIO; had no formal process for setting an IT budget; did not have policies in place to select specific technology investments; required no formal justification for IT efforts; and did not conduct cost/ benefit analysis for IT projects. All of these elements are critical components to the success of IT and business overall. These shortcomings advocate the fact that Zara completely belittled the role of IT within the organization and merely used IT as a support function for business. With a completely decentralized decision making strategy and lack of IT /business integration, Zara created the platform for eventual failure. Because all of the above mentioned are responsibilities of both positioned executives and IT leaders, I am inclined to assert that poor integration is in fact the central dilemma to the case. Because the lack of IT and business alignment sets the groundwork for the additional issues to cultivate, it is significantly more critical than all other noted issues
1.) After analyzing the case Zara: IT for Fast Fashion and reviewing the company’s operational strategies, we can identify both positive and negative aspects within the organization. Major contributors to the company’s success include: a fined tuned value chain system; lean manufacturing, design and distribution; the ability read target markets and predict market trends. Conversely the most significant issues identified in the case include:
(1) Poor IT and Business Integration
(2) Lack of strong IT Leadership
(3) No formal IT objectives, no leadership development plan
(4) Low IT funding and personnel budgets
(5) Out dated IT hardware and software
(6) No internal communication networks
A.) The most important issue in the Zara case is the absence of IT and Business integration. This is the most significant problem in the case because it is the catalyst for all other issues within Zara. In analyzing the case we find that Zara did not appoint a CIO; had no formal process for setting an IT budget; did not have policies in place to select specific technology investments; required no formal justification for IT efforts; and did not conduct cost/ benefit analysis for IT projects. All of these elements are critical components to the success of IT and business overall. These shortcomings advocate the fact that Zara completely belittled the role of IT within the organization and merely used IT as a support function for business. With a completely decentralized decision making strategy and lack of IT /business integration, Zara created the platform for eventual failure. Because all of the above mentioned are responsibilities of both positioned executives and IT leaders, I am inclined to assert that poor integration is in fact the central dilemma to the case. Because the lack of IT and business alignment sets the groundwork for the additional issues to cultivate, it is significantly more critical than all other noted issues
References: Austin, R., Nolan, R., & O 'Donnell, S. (2009). The Adventures of an IT Leader. Boston: Harvard Business Press. McAfee, A. (2006). Mastering the Three Worlds of Information Technology. Harvard Business Review, 141-149. McAfee, A., Dessain, V., & Sjoman, A. (2007). Zara: IT for Fast Fashion. Harvard Business School.