Zara's Information Systems: Business Development Case Study Report

This report provides a comprehensive analysis of Zara's information systems, examining how the company leverages technology for competitive advantage and business development. The report delves into Zara's use of business information systems, including transaction processing systems, management information systems, decision support systems, and executive information systems. It explores how these systems support Zara's supply chain management, operational excellence, and strategic decision-making processes, enabling rapid response to customer tastes, efficient inventory management, and effective market analysis. The report also considers the organizational and environmental factors influencing Zara's information system management, emphasizing the importance of data management, employee conduct, and sustainable business practices. The report concludes by highlighting the strategic decisions Zara's managers must make to maintain their long-term trend and position in the market. The report is available on Desklib, a platform providing AI-based study tools and resources for students.

Table of Contents
Question One..............................................................................................................................2
1.1. Introduction.................................................................................................................2
1.2. Body............................................................................................................................2
1.3. Conclusion...................................................................................................................4
Question Two.............................................................................................................................5
2.1. Introduction.................................................................................................................5
2.2. Body............................................................................................................................5
2.3. Conclusion...................................................................................................................6
Question Three...........................................................................................................................7
3.1. Introduction.................................................................................................................7
3.2. Body............................................................................................................................7
3.3. Conclusion...................................................................................................................8
References................................................................................................................................10
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Question One
1.1. Introduction
In this new era of globalization, the use of technology was very prevalent and already has
become a key element of human life. Every organization must be competed with very high
levels of efficiency to meet the challenge of today's environment in order to manage a
corporation (Taba, 2012). This case study is concerned with Zara, a globally renowned
fashion brand, one of the companies who has successfully managed to meet competition and
standards through the application of a new technological system to deal with the pressures in
business (Arenas and Schwartzbach, 2009). Information system for the collection, storage
and processing of data as well as information, knowledge and digital goods. In order to carry
out, administer and communicate with consumers and supplients, businesses and other
companies rely on information systems and compete in the market. Inter-organizational
supply chains and electronic markets are operated via information systems. For example,
companies utilize ISSs to handle their financial accounts, manage their human resources and
employ online promotions to contact their potential customers. Many big organizations are
fully centered around IT.
1.2. Body
Basically, business information systems are employed to make their business productive and
successful by practically any organisation/company. With the intention to improve business
performance in a cross-section of business and technology, it contributes to skills in every
company (Byun, 2017). The basics of rapid transmission supply networks are information
systems. It helps Zara management to provide information that they need to do IT duties
utilizing modern day technologies by cutting the cost of manufacture, purchase and selling
worldwide items. Management of companies is the main segments in information systems
and allows businesses to proceed more quickly and conveniently through the use of intranet
facilities (O'Brien & Marakas, 2011). On the basis of the study conducted, we can understand
that the management of the information systems are Zara's most important and essential
information system for the current state of the organization. Information management
systems are the study of individuals, technology, organizations and the links between them.
The Departmental Managers of Zara monitor, oversee, decide and process administration
actions through this information system (Berghout, 2020). According to the case study we
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can see that from production to distribution, Zara is completely in charge for their process. As
a result of that, it is compulsory for them to use MIS to merge and transmit data to go on with
their day-to-day business operations. They monitor and control the sales enterprise using this
IS, and they anticipate their future performance as an example; what will be the next trend or
the kind of apparel they can design? And they are also able to change the shopping cart
versions in a few weeks because of the assistance they get from IS, and it helps them manage
their data to innovate, improve efficiency and efficiency in the enterprise. They also employ
transaction processing systems, which are computerized systems used/help records daily
regular transactions as well as management information systems (Perl, 2005). For an
enterprise like Zara, it is highly advantageous because it has a very large number of stores.
For example, in each shop in different countries, Zara uses transaction processing systems to
record the order input in every shop, manage personnel records, or perhaps maintain
shipment data. By keeping track of the situation, Zara's senior management always finds it
very convenient, to maintain information up-to-date and to keep records here and there (Chiu,
2000). When there are non-routine issues, Decision Support Systems is used. For example, it
helps to find answers to specific, unpredictable challenges. They have many questions that
they cannot predict, according to Zara. It actually contributes to better decisions in the
business and for the future of organizations by detecting internal data and records and
translating them into the decision-making process (Vahidov & Kersten, 2004). On the basis
of the case study, the clients have to respond very quickly to their taste. Due to this there is
always a question of whether sales would be popular and accepted on the market, whether the
result will be and etc if the firm is produced with different designs such as this. This company
employs Decision Support Systems to solve such problems as "what if?" With key new
technology for information collection and processing invented over the millennia, new skills
were developed and people were empowered. There are simply two instances: Johannes
Gutenberg's development of the printing press in the mid-15th century and Blaise Pascal's
invention of the mechanical calculator in the 17th century. These inventions have led to a
deep shift in the ability to record, process, disseminate and reach knowledge and information.
As a result, individual life, corporate organization and human administration have changed
even more. As information technologies facilitated a wider range of human activities, they
have had a tremendous impact on society. These systems speeding up daily operations,
allowing individuals to build and sustain new relationships that are often more fulfilling,
affecting the organizational structure and mix, changing the product type purchased and
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influencing the working nature. Knowledge and information became essential economic
resources.
1.3. Conclusion
To remain in the long-term trend, Zara managers have a need to take strategic decisions,
which are software, so that users may transform business data into rapidly reached
information and reports of management, such as billing, accounts and employees. Zara's
senior managers are using Executive Information Systems to ask themselves what product
they should produce in five years' time as they choose to move into other companies such as
furnishing facilities and Zara's brand picture will suffer from this activity. As a result, Zara is
able to make judgments by forecasting their probable outcomes and making choices through
the use of Executive Information Systems, which are believed to be the optimal decisions for
Zara.
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Question Two
2.1. Introduction
Using Information Systems, Zara may refresh its inventories with totally new styles and
patterns and supply new and rearranged goods two times a week. This enables Zara to react
quickly to customers' tastes. Customers profit from the current fashion trend by checking it
easily without waiting and spending time. As a result, customers often come back to see what
is new, which obviously benefits the company when buying (Boell & Kecmanovic, 2015).
The easy way for multiple departments and distributing teams to work together on choices is
one of the most useful roles for information systems, taking care of large numbers of data
from a number of different sources, departments or industries. After a decision is made,
information systems can assist managers comprehend the potential consequences of that
decision by updating raw data on an ongoing basis and forecasting potential future benefits or
difficulties. Managers' most information systems, in particular technologies designed to
provide easy-to-understand reports that can be reviewed by senior managers or C-suite
managers.
2.2. Body
In addition, use of the Information Systems facilitate and systematically facilitates company
activities, which means that Zara may quickly launch new shops. This has helped both Zara
and its customers. Zara is able to make greater profit when talking about the side of the
corporation, and so the net sales per year are higher. This is because Zara's outlet is easily
found by customers in everywhere to shop (Nasar et al., 2018). It's definitely a beneficial
thing to them when talking about the customer's side, because they can shop easier by having
several Zara stores. Therefore, shoppers may spend a lot easier on clothes which satisfy their
taste and finally benefit Zara. Information systems assist organizations compete by keeping
low costs, differentiating products or services, focusing on market niche, reinforcing
customer relationships and suppliers and creating market entry barriers with high operating
excellence (Matta, 2015). Zara lowers their time to the market and is able to catch up with the
trends more quickly because of the owning of factories, shops and distribution networks.
Next to this retail corporation there are many other departments and various cross-operations
are frequently carried out with particular companies (Boell & Kecmanovic, 2015).
Information Systems currently helps connect corporate units and provides a network for
contact between different departments. For example, as soon as instructions from senior
managers come to the HR Department with a budget account on current stock prices from the
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stock market database, the HR Department starts producing the product. In summary,
Information Systems enhances the systematic, effective and effective progress of corporate
processes (Garbee, 2017). They employ Information Systems to attain Zara's operational
excellence. This helps its staff to see the value flow of the client and to fix the flow before it
collapses. It greatly increases consumer connections with the new product and services that
they deliver to their clients. IS are the basis for rapidly shifting supply networks. Zara, for
example, uses the internet to obtain client input and knows the taste of various
cultures/countries for designing and producing products that fulfil customer requirements
(Markgraf, 2019). Managers can also take advantage of information systems specifically built
for their department or position's business tasks. Information systems for the marketing of
products, subsystems for products, sales projections and design systems all create information
which managers find important. Even the simplest usage of technology can enhance the
productivity and efficiency of your organization significantly. Clearly, their ability to provide
users with the knowledge they need to carry out activities efficiently is the main value of
information systems.
2.3. Conclusion
If the company gets unfavourable feedback, it can spot the problem and take measures to
make rapid changes. It creates value streams that not only meet the client demand rate, but
are visualized to the extent that each employee in the organisation. That is why the company
makes more correct decisions and improves the company's ability to compete with other
competitors. Business managers who profit from IT must know the fundamental capabilities
of IT, data analysis and business intelligence tools. All these characteristics are utilized by
information management systems geared to managers and managers. In order to make
educated decisions, managers require easy and rapid access to information, such as customer
records, sales information, market research, financial records, production and inventory
information and human resources records. Informational management systems collect and
collect data both externally and within a company.
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Question Three
3.1. Introduction
Informational systems essentially mix management, organization and technological
challenges to enable Zara corporation to successfully address earlier problems. Zara is able to
continue to be strongly positioned or to be a world leader in clothing chain systems to
become good at using these information systems and with a competitive advantage
(Thompson, 2012). Any corporation can only succeed if the organizational and financial data
with effective information systems are consistently managed. Due to its precision and
reliability, most firms have experienced a drift in the workflow process. In the world of
business, every industry revolves around the Internet of Things, there is no alternative to
information at the time required. This has meant that the systems may be established and
developed to accurately accurately provide information that can be retrieved fast on request.
An organization with better plans, decision making and thus intended results might have an
efficient Information system. An effective system.
3.2. Body
Zara's information system management consists of corporate strategy, employee conduct and
management leadership as well. As an ecologically friendly business, it makes all employees
less waste and recycling more environmentally-friendly. Due to their multimedia-based
activities, all employees are taught how to use pleasant travel and low energy use. This
enhances personal behaviour. (Zara, 2012) It is clear that the environmentally friendly notion
would strengthen Zara's position on the market as the world faces more and more
environmental problems nowadays (Berghout, 2020). The organization of the information
systems includes concerns like the hierarchy of the organisation, functional specialities,
commercial processes, culture and groups of political interest. The Zara Company has a
charter showing the hierarchy of different positions and how the work flows across the
company and hierarchy from each job. It can also describe the relationships within the firm as
a combination to improve things in order to meet the aims of the company (Arenas &
Schwartzbach, 2009). For example, at the hierarchical levels the tasks of various roles are
distinct from one other. Managers have a well-planned strategy to work in a short time with
others to develop the best design, while employees ensure that the production line functions
properly and that supply shortages are overcome (Boell & Kecmanovic, 2015). As a result, in
today's challenging business climate, every interaction between organization and IS must be
effectively maintained (Byun, 2017). Things about technology include data and information
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gathering organizations. IS supports three basic activities, including input, process and
output, technically. It contributes methodically to the work and benefits the company's future.
It makes operations function quicker with the use of the network, hardware and software
(Garbee, 2017). With the continuous changes and changes in client preferences and
requirements, companies can survive the market and continue to work in accordance with
customer requirements and new ways and creative technologies. In enterprises it can benefit
much from the establishment of the information system and helps to control internal and
external activities. Any company who seeks to strengthen and strengthen its future has a well-
organized information system to be introduced. An IS can help analyse separate processes
and allow structured work. The company can therefore comprehend how the company
originates, develops and markets services or products using an information system. It is
necessary for all companies to keep a record of the actions, understand why the problems
arise and thus find a solution for them. It makes operational data, revision history,
communication records and documents easy for business information systems to store. Data
storage takes a great deal of time and money manually. The information is saved in the
database using a sophisticated information system, which makes it easy to find the data. A
Business Information System facilitates the decision-making process and facilitates the
information supply process, and so helps to make better judgments immediately. The
business information system can be used efficiently to facilitate improved communication
between employers and employees. Information systems perform better when storing papers
and data in folders which employees can access and share. This guarantees that the
information flow between management and staff is monitored. This also gives frontline staff
a feeling of motivation for and commitment to a job to be a part of the decision-making
process.
3.3. Conclusion
Finally, we can see and comprehend throughout the report how significant IT and systems are
in the operation of a company. In order to continue strengthening its position in the
commercial sector with the use of information systems, Zara company, as a retailer, needs
improvement of daily operations. For various types of operations in companies, several types
of information systems are required. This can result in lower costs for all operations by
producing more efficient and efficient products, which will allow companies to earn more.
But it will never be enough, in certain ways, with the help of IT and systems, to move a given
business up to a higher level, since people still need to learn and develop expertise and
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knowledge. Management Information Systems integrates instruments in the information age
which enable seamless running of operations, intelligence, IT and overall processes. It
provides a wider range of services, including several specialized systems. The EIS makes it
possible for top management to make decisions that affect the entire organization. Managers
are looking for detailed data to comprehend the situation properly and EIS satisfies the
requirements. The Marketing Teams employ MIS, as the name says. The efficacy of past and
present efforts is highlighted. This data helps marketers to use the lessons they have learnt to
develop future initiatives.
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