How Zara Information System Work Essay

2489 Words Nov 6th, 2013 10 Pages
Question 1:

From an analytical prospective, explain how information systems relate to the way Zara runs its business. What types of systems are the most essential for this company in its current environment?

Zara is a clothing company that was founded in 1975 and came from Spain. Its under Inditex group which owns other brands such as Massimo Dutti, Pull & Bear, Oysho, Uterques and many more companies. Zara grew very fast and currently in 2012 has 1,617 stores worldwide. With a large name in the fashion industry, besides that, Zara faces tough competition internationally including H&M, Benetton, and GAP. In order to keep up with the speed chic, Zara need to keep up also with the information system to run their business.
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There are many types of information systems such as management information system, executive support system, decision support system and transaction processing system. This information system helps businesses make their workflow easier and more efficient and time saving.

Management information system (MIS) is one of the important computer based information systems. Its purpose is to meet the general information need of all the managers in the firm or in some organizational unit of the firm. MIS also provides information that is needed to manage organizations professionally and effectively. Besides that these system encompass three primary components, which is technology, people, and data or information for decision-making. MIS also is designed to examine and faciliate strategic and operational activities in the organization.

Zara uses MIS to provide managers with information system and support decision-making and provides feedback on daily operations. MIS provides information to the users in the form of reports. Besides that, MIS generates output or reports through accumalation of transaction processing system. MIS is integrated collection of subsystems, which are typically organized along functional line within an organization such as Zara.

The next information system is executive support system is a reporting tool that’s allows you to turn your organization’s data into useful summarized reports. These reports are generally…

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