IT Strategy Group8 | Point Of Sale | Strategic Management

IT STRATEGY

Presented by: Anurag Iyengar Kamal Syal Rahul Verma Vishwesh Samant

Contents  Need for IT strategy  Strategy Grid .ZARA .ZARA  Strategy Alignment .

 .Need for IT Strategy   IT helps to design business model for operational effectiveness IT helps accelerate value chain process IT Strategy in Zara  With the help of IT. having better inventory and better connection between stores. it becomes possible to venture into new business areas like online retailing To support the core business strategy – Rapid response to market demands. decentralized decision-making.

In 2011. they are providing online retailing in 22 countries. they introduced Online retailing.What technological changes occur with time in Zara  Till 2006. No major IT/IS implementation were done . . better information retrieving ability and better connection between stores.  In 2006.they upgrade their DOS based Point-of-Sale (POS) system which resulted in better check and count inventory. Zara hardly changed their IT infrastructure.  In Fall 2010. they introduced online retailing at a global level. especially for US customers . Now.

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6 . IT strategy of Dell and Amazon turned out to be extremely successful for them. which helps rule out distributor and retailer cost in supply chain.IT strategy for Dell and Amazon   Amazon or Dell has a common revenue generating IT strategy to support their core business of selling directly to Customer via online mode.

administration support.Strategy Grid .Diversification High Low Increased Supplier Power Barrier of Entry Impact on strategy  . logistic support.ZARA High Impact on Business operations  Factory Decreased Switching Cost Strategic Change Basis of Competition • Preference for reliable IT systems • Aversion to risk arising out of moving to a newer applications • Low cost of advertising and IT personnel Support Developing internal relationship within Zara for smooth function of supply chain at large Turnaround • Critical day to day operation like order by store support. US Lower . POS & PDA Low -To develop online retailing -To explore business in new emerging markets like Asia.

POC etc. ZARA IT strategy has maintained minimum switching cost on changing fashion patters in production Store managers regularly update product manager & commercial team about latest trend in market which helps them bringing new product in short time. 8 Supplier Power Buyer Power Switching costs Existing Product/ Services Basis of Competition . whereas other competitors push new design in market at higher rate. ZARA is ahead of competitors by producing latest trend s at affordable rate.Strategy Grid – ZARA ( Five forces) Barrier of Entry IT helped ZARA to enter into online fashion market where other brands were already established ZARA is able to manage the inventory and production forecast through software's likePOD. Zara provided online design availability which further enhance Buyers power.

Decentralized decision-making .Low advertising cost(Almost Nil) IT -PDAs and POS Systems based on DOS.Self designing of applications(Customization) .Strategy Alignment . layout and location. Strategy Capabilities -Vertical integration .Outdated systems and applications . -To run the store system with minimum down time -To develop in-house IT system as per business requirement .Supply chain Network .ZARA Business .Fast and continuous communication . Should it be changed to Windows? -Should investment in IT be encourage in Zara.Creating a Scarcity value .Meticulous store design.

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