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Even though Zara has a decentralized decision making process, the retailer’s IS department exercises absolute autonomy on the IT infrastructure and design. The fact that “only one person had left the department” in the past 10 years further confirms that the retailer is suffering from cognitive and action inertia, and thus creating a huge barrier for such upgrade. Nevertheless, Zara should still perform such upgrade in the long run.
Q1b. Should the company build in-store networks?
Yes, it will remove some redundancies in daily operations. For instance, employees no longer have to collect data physically from each POS terminal in order to obtain daily sales totals...
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