Case Study of Zara : Application of Business Intelligence in Retail Industry

ZARA is a Spanish clothing and accessories retailer based in Arteixo, Galicia.  Founded in 24 May ,1975 by Amancio Ortega and Rosalía Mera, the brand is renowned for it’s ability to deliver new clothes to stores quickly and in small batches. Zara needs just two weeks to develop a new product and get it to stores, compared to the six-month industry average, and launches around 10,000 new designs each year. Zara was described by Louis Vuitton Fashion Director Daniel Piette as “possibly the most innovative and devastating retailer in the world. The company produces about 450 million items a year for its 1,770 stores in 86 countries.

The Zara has made of use of Information Systems (IS) and to advance in many areas. This has resulted in huge success for the company. This included application of Business intelligence (BI) involves technologies, practices for collection, integration and applications to analyze and present business information. The main aim of business intelligence is to promote better business decision making.

BI describes a group of information on concepts and methods to better decision making in business. This is achieved by employing a fact based support systems. The intelligence systems are data-driven and sometimes used in executive information systems. Predictive views on business operations can be provided by use of BI systems. predictive views on business operations can be provided by use of BI systems since historical and current data has been gathered into a data bank performance management benchmarking is done whereby information on other companies in the same industry is gathered.

Case Study of Zara : Application of Business Intelligence in Retail Industry

Since the Zara’s have large network and therefore dealing with large volumes of data, an enterprise information system has been employed in the firm. This is generally a type of computing systems that involves an enterprise class that is, typically offering total quality service handling large volumes of data and able to sustain a big organization. With this system, a technology platform is provided which enables the enterprise is provided to that information can be shared in all useful levels of management enterprise systems are important in removing the problem of fragmentation of information. This happens when there are numerous information systems in an enterprise. The problem is solved by developing a standard data structure.

The Zara being big organization, the enterprise systems is housed in many different data centers, and includes content management system as the main application. The Zara team comprises technology professionals. These include content specialists, network and system engineers, flash developers, database business analysts and administrators, software developers, quality assurance managers and computer and applications support technicians. All these specialists work in tandem to bring about competitive advantage to business by allowing for quick-response capability.

The Zara is devoted to integrating information technology appropriately into all areas of its operations and activities. The range of services and resources available to its clients is attributed to the commitment of integration of IT properly in the organization. The client services group in the Zara partners with staff and clients to identify and meet each group’s technological requirements. This group of technical advisors associates with departments to execute a roadmap for a team’s technological vision and then defines this vision within entity projects.

Much support is required for invariable innovation. The Zara IT group is devoted to developing community through technology and operates closely with business associates. The IT group is devoted to developing community through technology and operates closely with business associates. The IT group has technical support and tools they require to come up with new ideas and spread the ideas to the wider community worldwide. This ensures that client needs are realized. A constantly growing state-of-the-art technology infrastructure has enabled the firm to develop and maintain a fully integrated organization/ enterprise. The infrastructure has enabled the firm to develop and maintain a fully integrated organization/ enterprise. The infrastructure entails a core of systems and attempts designed to produce the flexibility and capacity for innovation and growth.

The Zara thrives in an environment of change, experimentation and learning that is spreading over the boundaries for the application of IT in their business in the enterprises an easy-to-use modular tools, templates and platforms that involve all sides of life at the Zara firms including career development , administration and operations are implemented and developed.

In the Zara other web-based solutions are deployed with an advance knowledge management thereby making a big shift in the quality and speed of work in how the enterprises function. In the exploding growth of the software market a new world growth for the software market a new world of connectivity is realized in the Zara. The urgency of the business recognizing the importance of corporate portal has enabled linkage of information, data, people and knowledge to provide business solutions. The corporate portals come from consumer portals like Alta-vista, yahoo! and Lycos.

The portals (gateways) show the importance of letting clients have a wide scope of varied information on the web. This has given rise to the increase in multitasking, receiving information and checking from varied sources and thereby getting involved in projects that cross geographical boundaries with this technology the needs of the community, employees and even the extended network that is more advanced are served.

The Zara is possibly the most devastating and innovative retailer in the world. With more than 1000 shops world wide, the Zara has turned controlled over garment factories into a competitive advantage by making and designing the garments. By making the garments itself, it can quickly react to varying market trends. The Zara has been able to succeed in building a massive brand, without promotion or advertising but through the information systems and information technology.