Essay about Inditex Zara

Question: Write essay about Inditex Zaras success explained from the Information System point of view. Answer: Introduction The information system is the infrastructure that is composed of a set of interrelated components for collecting or retrieving, storing, processing and dispensing the information. It helps in sustaining the organizations process of decision taking and control. An information system is utilized for achieving the principle goal of the organization by establishing effective communication and data sharing. It is important to keep track of the effectiveness of the information system used by the organization. Inditex Zara uses a hybrid model of the information system for achieving the core value of their business and align their goals for meeting the customer satisfactions. The hybrid model utilizes both human intelligence and Information technology for the organizations operations. Analysis of Success of Zara using Information Technology Zara[1] has developed the core capability for the effective and minimalistic approach for utilizing IT in suitable knowledge transmission, fast production of goods and empowerment of the employees. The principle motive of the information system is improving the regularity and class of clothing stock kept by the designing and planning panels. The unique information system of Zara helps in developing human supported IT solutions for keeping an insight on the merchandise of less demand. The information system used by Zara is cost effective and helps them for rapidly responding to the diverse customer's demand. The information system provides fine, supervised stock inventories, an effective linkage between the consumers demand and supply and reduction in the cost of outdated products. Zara has introduced online customer help desk that enables the customer from the pain of conventional shopping. The customers can see the products online and buy them using the internet. The success and competition gain of Zara is the result of its hybrid information system that comprises both information technology and human resources[2]. The information system streamlines the information between the stores and headquarters of Zara using the personal digital assistants, customer feedback and marking high demand fashion trends. The managers keep excellent inventory for decreasing the wastage and inefficiency to as minimum as 1% on an annual basis. The company Zara spends 0.5% of its total revenue on the IT development while its competitors spend 2.5% of their total revenue on the same field. It provides Zara an edge in competition over its rivals because of cost effectiveness. Due to the incremental nature of the information system in the organization, Zara has helped them to stay consistent with their business strategies. Conclusion The information system in Inditex Zara is incremental and radically innovative in nature. The compactness of their information system has resulted in the growth of the organization as the most profitable global operating clothing chain. The IT system has resulted in shortening the time expense for designing and delivering the goods. Zara has a web application to support the online market and ease of customer-company relation. It is possible because of the information system and smart technologies prevalent in modern time. The information system of Zara is relatively effective and cost saving that allows the quick response, effective communication and ensures correct pricing of the goods. Bibliography Mayrhofer, Ulrike, and Claire Roederer.Zara: The international success of fast-moving fashion. HAL, 2016. Rao, Kandi Ganeswara. "Successful International Expansion of a Fashion Retailer: A Case Study of Zara."BS Publications(2014): 245. [1] IT, Zara. 2016. "ZARA Official Website".Zara.Com. [2] Miao, L. I. "Analysis of the Development of Apparel Industry through the Success of ZARA."Progress in Textile Science Technology3 (2013): 031.