Zara Information Technology System Management

Topics: SAP AG, Supply chain management, Customer relationship management Pages: 10 (2361 words) Published: July 28, 2013
Table of Content
1.Company presentation2
SAP CRM (Customer Relationship Management)10
-> product: SAP 360 Customer10
SAP ERP (Enterprise Resource Planning)10
SAP SCM (Supply Chain Management)11
SAP SRM (Supplier Relationship Management)11

Computers started to be used at a commercial level in 1950’s. At that moment in time they could provide a better storage and usage of information. An early Management Information System (MIS) encompassed a high volume input data which was further processed and then the output information was used for managerial decisions. (Curtis & Cobham, 2005)

In today’s economic situations, technologies, human creativity and Internet sustain the continuous change in business model. Technology is progressing day by day, new inventions like Internet, 3D printing, biotechnology will revolutionize education, manufacturing and pharmaceutical industries. This enables a change from a physical space towards a more efficient and effective virtual space, internet. (Heath, 2012)

We are facing a shift from the old fashion multi-level pyramidal business to a new more flattening business where information flow is very fast and cost effective. Old fashion physical channels of transmitting information are replaced with a simple click in the World Wide Web (www) virtual environment (Laudon & Laudon, 2010).

ZARA case study
1. Company presentation

Inditex Group is one of the biggest fashion retailers in the world owning more than 100 companies operating in different sectors of activity. Its unique business model set the basis for one of the leading brands in international fashion industry called Zara.

Zara is an eco-friendly retail company and encompasses more than 5,000 stores situated in prime locations in more than 400 cities on five continents. (Inditex, 2012) 1. Zara’s Information System

An Information Technology (IT) structure implements the business strategy in the global Information System (IS) of all business transactions. So a new an up to date IT mixed with a continuous improvement strategy helps the company to reach sustainable development on all business functions and at any level of activity. (Laudon & Laudon, 2010)

2.1 Zara’s horizontal model of information flow and vertical Integration strategy Zara horizontal information flow is one of the core competitive advantages features of the company; it implies input into the business IS from all parties involved as it can be seen in the following table.

The features of this type of information model sustain Zara competitive advantage in the following way: - Low layered structure of information flow;
- Low barriers for information input;
- Fluid exchange of information at any managerial level;
- Bi-directional communication circuit at all managerial levels; - High transmission speed;
- Tight relation with all interested parties: suppliers, customers, employees, competitors and others. Zara’s vertically integration strategy creates a strong link between major business functions of the company and sustains the company to create strong merchandising strategy. Thus Zara enables a quick response to all market’s changes getting the generic name of Fast Fashion Brand. Zara pyramidal decision making:

* Strategic level: Head Office manager decide the long term strategies catering to the overall development of the business.

* Tactical level: seasonal decisions, thus short term goals, are implemented by the Regional Managers which communicate them to the Store Manager

* Operational level: gathering information through a personnel digital assistant (PDA) and sustains the strong customer relation through a Point-of-Sales (POS) system (Market orientated strategy)

Zara’s main business functions, description and analysis
Fashion and Design Function
The team consists of designers, product development personnel and sourcing specialists. They are...

References: Curtis, G., & Cobham, D. (2005). Business Information Systems. Essex: Pearson Education Limited.
EMC. (n.d.). EMC. Retrieved 12 20, 2012, from EMC:
Fernie, J., & Sparks, L. (n.d.). Retrieved 12 19, 2012, from
Gary Garrison, S. K. (2012, 09). Success factors for Deploying Cloud Computer. Communication of the ACM , 62.
Ghemawat, P., & Nueno, J. (n.d.). researchingsustainability. Retrieved 12 5, 2012, from researchingsustainability:
Heath, A. (2012, November 23). Technology and human ingenuity will rescue the economy. City A.M. , p. 2.
Inditex. (2012, 12 14). Who We Are. Retrieved 12 14, 2012, from
Laudon, K. C., & Laudon, J. P. (2010). Management Information System. Upper Sanddle River: Pearson.
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