Zara Case Study Solution
1. How would you advise Salgado to proceed on the issue of upgrading the POS terminals? Should they upgrade the operating system? If yes, which one would you recommend? Why?
Alternative one: Current operating system and keeping the status quo (no IT involvement in daily operations:
Zara could maintain the original frame work as the POS terminals with DOS and exclusive applications work very well. The advantage with staying with the current system is that it is steady and requires less IT support. The advantages of upgrading the system simply don't exceed the expenses. The expenses incorporate the new terminals and software, as well as the expense of changing to the new framework, retraining the staff, and lastly, enlisting a full time IT staff to maintain the new system.
zara case solution
The most serious issue with maintaining the current IT framework is that Zara will not grow rapidly as most vendors are changing their machines and even though, one seller guaranteed that he will keep furnishing Zara with DOS framework,however the risk connected with the customer is high in light of the fact that Zara could exclude this confirmation in its contract with the terminal vendor.
Alternative 2: Upgrading the POS terminals
Zara could change the working framework gradually step by step, and not to include all functionality at first. Rather Zara can move to the new framework with minimum required capacity giving the organization the ideal opportunity for the move and in the meantime, conveying some dependability to the framework. Once the framework gets to be dependable, the additional functionality can be included later consecutively based on the need.
Recommendation:
Therefore, Zara should change the operating system as its main strategy is to provide positive and quick response to the target customers in order to meet their demands, which is used to identify the trends of customer in advance. The company has the capacity to recognize the patterns and to take care of the demand with the assistance of its autonomous organized structure and its powerful value chain frameworks.As Zara uses the P-O-S terminals that work on the outdated DOS programming, the establishment of new OS, for example, Linux, Windows, or UNIX, will empower Zara to enhance its capacities and abilities. Cutting edge POS terminals, which are accessible, work on modern OS, for example, Windows, UNIX as well as they can utilize a variety of physical layer protocols, however Ethernet is as of now the preferred framework; an example of this could be; HP-intuit retail solution work on Windows OS.
Cost of updating:
The supplementary expenses can be distinguished in redesigning the present OS. By looking at the expense of OS for POS terminals, it has been found that Linux does not have a one-time permit cost, whereas, Windows has a one-time permit cost of €140, and UNIX has a one-time permit expense of €160.
In this manner, Linux offers least expensive usage costs for Zara, as well as, it has higher consecutive costs, for example, service contract cost extending from €10 - €150 as Linux’s service contract depends on IT staff's learning on Linux’s programming and maintenance. As Zara will introduce the new OS on an expansive number of PCs, therefore it needs to consider the expenses of every OS. In order to update the framework, Zara will also need to put in new equipment and displace the old POS terminals. The expense of POS terminals is €5000, which will also require establishment of new links, switches and so forth. The wireless witches and ehternet cost, staff preparing cost, programming establishment and support cost, and the per store availability expense of €240 will also add to the cost for upgrading. This is, by all accounts, a rapid cost, however the expense will depreciate throughout the years...................
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