There is a risk that the terminal vendor will make changes in the future and as such, they will no longer make terminals that are DOC compatible, leaving Zara to face obsolescence in the technology in their current stores, and any new stores that they may open.
The IT managers must decide if it is advantageous to upgrade to the newer software applications and hardware. The must weigh the cost benefit associated with an upgrade, and question whether or not an upgrade will make Zara more competitive, and allow them to also expand their customer reach via the internet. The final decision narrows to whether to upgrade or not, and if so, if it will be economically feasible.
Importance of Key Issue: Currently, less than 0.5% of Zara revenue is spent on IT, where their competitors spend 2% of their total revenues on IT development. From a strategic perspective, it is obvious that Zara has not allowed themselves to grow technologically, but has reached a plateau and remained there, while