Managing Information and Technology

This essay explores the impact of information systems and ERP systems on the operations of an organization, with a focus on ZARA. It discusses the different categories of information systems and their functionalities. It also examines the benefits of ERP systems in real-life business and how ZARA utilizes ERP systems for efficient management. The essay concludes with recommendations for ZARA to enhance its use of information systems and ERP systems.

Managing Information and
Technology

Table of Contents
Introduction, aims and objectives...........................................................................................1
Categories of information systems.........................................................................................2
ERP systems...........................................................................................................................3
Benefits of ERP systems in real-life business........................................................................4
Conclusion and recommendations..........................................................................................5
REFERENCES................................................................................................................................7

Introduction, aims and objectives
Information system are defined as set of incorporated network of components that acts
like a collaboration within distribution, processing and production of data. This denotes software
that organises as well as analyse data (Dotson and et. al, 2020). ZARA has broadened their retail
operations with their approximate stores 7475 that involves clothing along with accessories for
their customers. Their annual revenue was near €25.34 billion and organisation was founded by
Amanico Ortega along with Rosalia. The products offered by them are based on latest trends that
prevail within the market that makes them largest apparel retailer. Company is opting for making
more investments in having more stores instead of carrying out advertisements. This aids them to
render services to ample number of customers. Information system illustrates formal,
organisational and socio-technical systems that are designed for collecting, processing, storage as
well as distribution of information. With reference to socio-technical perspectives, this involves
technologies, people, task and structure. Employees along with management of ZARA opt for
utilisation of information system for distinct processes that are being conducted in firm. This
involves software, hardware, designing, storage of design patterns and transmission of designs
via usage of internet and computer, VoIP, emails and various other methods are there.
Aim of this essay is to identify probable influence of information system on the
operations of organisation. Objectives are to determine concept of IS along with ERP system. In
addition to this, effectiveness of control and management of information system will be
analysed.
Enterprise resource planning is defined as management software that aids firm within
managing as well as automation of functionalities of organisation with reference to technology,
resources and services (Fernie and Sparks, 2018). This is liable for segregating various facets
associated with operations like manufacturing, marketing, planning and development of products
in their peculiar single user interface or database. ERP software aids firm within enhancement of
efficiency, minimised operational costs, promote collaboration, have close forecasts,
enhancement of data security and various other aspects.
Distinct categories of IS
The study of distinguished networks that involves hardware as well as software that is
being utilised by firm as well as people for compilation, filtering, formulating processes, creating
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them along with their transmission of information. This might be categorised within distinct
categories depending on functionalities that have to be carried out by different assets of firm
(Hemker, 2020). They include transactional processing system which implies operational level
system that is being controlled by front line employees. This renders information that is required
to support distinct operations that are being carried out via front line employees. This is liable for
furnishing data that is required for supporting distinct functionalities carried out in firm. In
ZARA, transaction processing system will render data to other systems through which
information can be utilised in an adequate manner for conducting operations of organisation, in
appropriate manner. The system is being utilised at unlike supervisory levels along with via
operational personnel. ZARA makes its use for carrying out stock control systems, payments,
order processing and reservations. Office support system implies group of devices in which
business is liable for rendering services by building up network for operations (Hignite,
Margavio and Chin, 2020). It is formulated for assisting employees to accomplish their everyday
tasks for having enhanced interaction. In ZARA, these activities are being divided within clerical
as well as managerial activities. These activities conducted by making use OSS that comprises of
scheduling, printing, keeping calendars, mailing and many more. In ZARA, office automation
system is liable for implementation of distinct transactions that creates an impact on official
operations at distinct levels. This involves data exchange, storing information and its
management.
MIS denotes a system that is liable for transforming data from external along with
internal sources of information that is being interacted to managers at distinct levels within
adequate way. This data aids firm within making effectual decisions as well as plans. In ZARA,
MIS is liable for furnishing structured support for decisions depending upon internal data flow.
Within firm, it is utilised by lower as well as middle level management. This will aid them
within having sorted, merged and summarised reports through which they can evaluate overall
performance of their functionalities. This can be attained by making comparison among results
attained from previous operations and the one those are carried at peculiar instance of time.
DSS (Decision support system) is furnished model as well as information that aids within
strategic along with tactical decision making (Kadam and Onkar, 2015). This is liable for
integrating data performance, rules of business in decision table, rendering adequate user
interface along with analytical tools and models for forecasting as well as planning. Basically, it
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will furnish summary of information that is being gathered through distinct information system,
data processing and data acquired from any other external source. Within ZARA, decision
support system will aid them within having support in ill-structured decision making along with
prediction of future and having analysis of modelling as well as analytical capacities. This will
be utilised by senior managerial levels (Laudon and Laudon, 2016).
EIS (Executive information system) denotes system that is designed with intent for
integration of data that is associated with external events such as tax laws or competitors. They
can have relevant summarised data from MIS as well as internal DSS. This will assist
management along with executives of ZARA to have analysis of functionalities that are
conducted by organisation as well as determine long term trends which will assist them within
formulation of adequate course of procedures. This will aid firm within having sumnarised
reports, simulation and drilling of operations through which precise results can be attained that
are in context of forecasts, graphs, etc. This will be utilised by senior management of
organisation only.
ERP systems
The business management software that deals with peculiar set of integrated applications
that assists businesses within gathering, storing, managing as well as making interpretation of
information within distinct functionalities in real time through which smooth functioning can be
conducted is referred to as enterprise resource planning (Logan, 2020). This will assist within
integrating core processes of firm such as development of plans, carrying out marketing
activities, sales, procurement of raw material, supply chain, finance and many more aspects. In
addition to this, ERP will render employees of organisation with authenticated access for sharing
single database that can be utilised again and again as per requirements of employees of ZARA.
This will lead to elimination of data redundancy, decline within bugs, and suspension along with
manipulation leads to bring in automation in business. These will assist within generation of
synchronised reports depending upon businesses metrics which will furnish information to
individuals at the time it is needed.
There are different kinds of ERP that can be utilised by organisation; they are described
in this section. On-premises or traditional ERP software is the one whose database is present
within on-site server and hardware (Meziache and et. al, 2020). It is being managed as well as
maintained through IT employees of organisation, the one who have implemented them. Cloud is
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being rendered like service for firm as well as is being hosted within servers furnished by
vendors. Data and software are centrally managed at different remote Datacenter through
assistance of enterprise resource planning. Customers can have access to them through usage of
web browser. The third ERP is hybrid which implies aggregation of both on-premises as well as
cloud (Sherer, 2020). This will enable firm to have amplified features as they have option to
utilise cloud to store as well as have on-premise to handle on-site ERP resources.
ZARA has opted to utilise on-premise ERP as they intend to identify information
associated with trends that prevails within the market. Designers can opt from making use of
ERP system for identification of what is what is going well and what is needed to be added so
that sales figure can be enhanced on day to day basis. This will assist designers to determine
which fabric people are opting for, colour collection, designs and many more related aspects can
be depicted through this. This will minimise time associated with design conception from arrival
of clothes till they are being manufactured. In addition to this, preferences of customers will be
monitored by making use of intelligence to gather efforts which are being made by managers of
store. ZARA have their own centralised distribution system or database. This leads them to keep
half of production in house and along with this they can make use of smart technologies for
having competitive edge with reference to efforts that are being made by them (Tingru and et. al,
2020). It will also aid them within managing their logistics, designs, distribution of products and
warehouses functions by themselves. For maintaining latest trends they have opted to utilise
recent technologies. ZARA utilises ERP system for analysis of purchase patterns, targeting
directly and profiling their potential customers.
Benefits of ERP systems
Enterprise resource planning is one of the unavoidable needs within retail sector despite
of kind, size or products they are being offering to their customers. As competition is
accelerating, ERP solutions are becoming critical for firm to keep up as well as sustain within
altering requirements of their customers. Key benefits associated with this involves: reliable
business information associated with business for collection from unlike sources such as
inventory, sales, purchase, etc (Dotson and et. al, 2020). Accurate, real time and precise
information will assist management of organisation within formulation of business decisions.
The single database is liable for enabling simplified accessibility for data that will assist within
facing competition within efficacious way through which needs can be met. Enhanced inventory
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management has significant role in each firm, it will assist within having adequate stock through
which anticipated orders can be accomplished as well as excess can be eradicated to minimise
wastage. ERP system of ZARA is liable for handling distinct challenges in a comprehensive
manner where they store data related with products in inventory and the one those are needed
(Fernie and Sparks, 2018).
By integrating various channels they will have distinct channels that will be merged to
work as an identical to attain goals. Retailers need to have different mediums that will enable
them to carry out concurrent functioning of their functionalities so that they can be conducted in
smooth manner. ERP system of ZARA will merge distinct channels within single platform that
will allow them to share information in real time. When any kind of update is being carried out
then notifications will occur by themselves and departments have not to inform each other
manually. Augment customer management is critical for carrying out their operations as per
desired standards. By making use of automate sale as well as payment recording firm can have
amplified outcome (Hemker, 2020). For this POS can be utilised that is liable for recording
details of transactions which will eradicate efforts along with extent of human errors that takes
place within manual transactions.
Conclusion and recommendations
As per the above information, it can be easily inferred that information system has a
crucial role to play within the bounds of any company. This can be said to be a composite of
various networks used for purposes like collecting, filtering and distributing information amidst
the diverse set of departments or firms. ZARA is a well renowned firm that makes use of
information system for the analysis of various pattern as well as trend in the bounds of retail
sector. ERP system is put to use by ZARA for utilisation of business information in a manner
such that security of data can be strengthened as well as enhanced, community support can be
taken into use, better business decisions can be executed through the application of better data.
This will render aid in reducing the cost incurred upon marketing as well as operations. There are
various types of ERP systems that are put to use by ZARA which render diverse set of benefits to
the company.
The analysis done above reveals that ZARA should take into due consideration certain
suggestions that will be beneficial for the company in the long run. It is suggested to make use of
Point of Scale which is developed with the sole purpose of streamlining retail operations. This is
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concerned with financial overview along with management of inventory in real time reporting.
This will provide aid to the respective organisation in maintaining the integrity of data. This
tends to imply that data can put to use in another system. In addition to this, the guarantee of data
security adds to it. Further, ZARA can make use of POS as well as ERP system got evaluation of
revenue, stock and sales levels. This will render aid to it in making predictions about the
inventory as well as the stock so as to prevent the company from running out of stock.
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References
Books and Journals
Dotson, J. and et. al, Whistic Inc, 2020. Methods and systems of assessing and managing
information security risks in a computer system. U.S. Patent 10,592,675.
Fernie, J. and Sparks, L. eds., 2018. Logistics and retail management: emerging issues and new
challenges in the retail supply chain. Kogan page publishers.
Hemker, T., 2020. Cyber Security…… by Design or by Counterplay?—Enabling and
Accelerating Digital Transformation Through Managing Information Security
Technology, Risk and Compliance at the Right Place. In Redesigning Organizations (pp.
315-325). Springer, Cham.
Hignite, M.A., Margavio, T.M. and Chin, J.M., 2020. Assessing the conflict resolution profiles
of emerging information systems professionals. Journal of Information Systems
Education, 13(4), p.6.
Kadam, K. S. and Onkar, V. C., 2015. A review paper on student information supervision
system. International Journal of Research In Science & Engineering. 1. pp.66-72.
Laudon, K. C. and Laudon, J. P., 2016. Management information system. Pearson Education
India.
Logan, P.Y., 2020. Crafting an undergraduate information security emphasis within information
technology. Journal of Information Systems Education, 13(3), p.3.
Meziache, T. and et. al, STMicroelectronics GmbH and STMicroelectronics Rousset SAS,
2020. Method and device for managing information exchange between a main element,
for example a NFC controller, and a set of at least two auxillary elements. U.S. Patent
10,536,836.
Sherer, S.A., 2020. Academic departments of information systems faculty in the US. Journal of
Information Systems Education, 13(2), p.5.
Tingru, C.U.I., Yu, T.O.N.G., Hock-Hai, T.E.O. and Li, J., 2020. MANAGING KNOWLEDGE
DISTANCE: IT-ENABLED INTER-FIRM KNOWLEDGE CAPABILITIES IN
COLLABORATIVE INNOVATION.
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