Zara for Fast Fashion

In analyzing the case we find that Ezra did non commit a CIO had no formal process for setting an IT budget did non have policies in place to select specific technology investments indispens adequate no formal Justification for IT efforts and did not conduct cost/ return analysis for IT hurls. All of these elements be critical components to the succeeder of IT and problem overall. These shortcomings aid the f bit that Ezra tout ensemble be triviald the role of IT deep down the organization and just used IT as a support function for avocation.With a completely de primevalized decision qualification strategy and lack of IT business consolidation, Ezra created the platform for eventual(prenominal) failure. Because all of the above mentioned are responsibilities of both positioned exe dismissives and IT leaders, I am attached to assert that poor integration is in fact the central quandary to the case. Because the lack of IT and business alignment sets the ground effect for the additional douses to wreak, it is signifi stomachtly much than critical than all other noted issues including updating hardware and computer software systems creating internal networks and the lack of formal IT investment strategies.All of the above identified issues can be derived from the central issue of poor IT and business integration, and therefore makes this issue critical and more significant than the aforementioned. B. ) The individuals and groups who are some directly force by the lack of functional business and IT integration include Inedited/Ezra Owners and Shareholders Saras executives, fund get byment, and all employees Ezra customers All of the above mentioned s operateholders are directly affected by the poor business and IT integration in spite of appearance Ezra.If Ezra continues to fail to respond to the require of its instal coachs the impacts go out spread and multiply. In the case Saras managers ask motto for the present systems to incl ude more capability and dexterity. motto and the IT department cannot prepare a general consensus. As the IT steering committee discusses the theoretical possibilities nothing gets done and time is lost. If time progresses and store management is disregarded, ignored, neglected and disobliging to, the effect testament include Job dissatisfaction, passive aggression to swear out employees, spikes in turnover and ultimately unhappy customers.Because store managers possess much(prenominal) significant levels of responsibility including ordering merchandise replenishing stock handling violence and coordinating store needs, the quality and level of in store vexs heavily depend on the competencies and commitment of store management. With stores being the first and live on point of contact for customers at Ezra, the customer experience level of utility availability of impregnables and employee interaction is vital for Saras success.If store managers do not happen equipped to provide exceptional service, the customers will suffer via in store service levels. Customers will be directly affected by Saras helplessness leading by experiencing unpleasant employees, long waits for inventory assistance, and inconsistent info between store locations. As service levels drop, so does reputation, loyalty and gross sales. If sales go down shareholders and owners loose revenue. Lost revenue creates the beginning of an carbuncular business which directly hurts owners and shareholders.C. ) So what causes lead to the absence of successful business and IT integration? There are several factors which collectively generated the abovementioned central problem. Those which are most important are outlined as follows Organizational The belt along and decentralized decision making approach applied to IT was Saras first and most fatal mistake. Using this approach Ezra failed to realize the importance of appointing a CIO and subsequently had no formal erection for IT deci sion making.The authors of our textbook on summon 35 site the Global trends affecting the CIO role. These trends include Coos expecting IT managers to manage people, finances and materials not Just technology Coos expect IT to contribute to a firms tractability and ability to absorb change and that Coos are called on to take a broader role in corporate leading. These noted expectations given by the texts authors perfectly contradict every aspect of Saras current executive and IT relationship.Castellated (CEO) does not have any real expectations of Slogan. Slogan the current IT leader has little or no say in setting budgets contributing to flexibility is not solely authorized to select technology and fears acting for organisational change. With little or no influence in the big effect business strategy Saras IT department is again classified as an operating(a) support group. Because of this decentralization, business and IT units are soloed, separate and far from integrated.I be lieve that these factors lie in wait and point to one of the major causes for poor business and IT integration within Ezra. Managerial The problems at Ezra essentially surface from the top down. Starting with the CEO, the fraternity is blinded by what they do right which helps them ignore what is going wrong. The name Mastering the Three Worlds of IT states on page 142 that executives do not make do when, where, or how to get involved and the reason is, because they operate without a all-embracing vision of what IT does for the company. MacAfee, 2006) This statement defends my assertion that Ezra executives are currently looking at IT as an operational support function and fail to integrate and strategically place IT within the company. The central problem in this case exists not because things werent broken, but because no one (CEO or Head of IT) stepped up to the challenge of managing organizational change. Although Slogan was not officially appointed CIO, he was the head of IT, and with this responsibility comes the need to be business intelligent.Slogan distinctly did not look beyond his operational role and failed to define the companys IT needs as they applied to business strategy. Slogan failed to push Saras IT efforts to align with organizational needs and therefore failed as an IT leader which led to the major issues within Ezra. The authors of our text remark on page 36 that IT should be positioned as a strategic and competitive demand making sure IT plans, actions and capabilities are clearly linked to company objectives.This simply is not occurring competently or proactively within the organization, as the conversations between Sanchez and Slogan only describe reactions to current concerns. Although Ezra is good at making IT work for them, they fail to see how IT can work with them in the future. I believe that Ezra executives missee the role that IT should be playacting within the company and this leads to Saras inability to arm a long v erge IT re saucyal plan tied to business strategy.The fact that the executive and IT leadership teams within Ezra completely disregard the importance of proactive strategic plan and use decentralized brainstorming creates another major cause which leads to the central issue of poor business / IT integration. D. ) What are the possible solutions that should be considered? beginning 1 A more centralized executive decision making structure where IT decision making includes the CEO, COO, SCOFF and CIO outcome 2 slaying of an IT leadership victimisation program. Solution 3 Demoting Slogan and appointing a CIO with business management experience.So the question is how do each of these solutions respond to Saras lack of face-to-face line of credit and IT integration and alignment? Solution 1 addresses this primary issue on a multitude of different levels. By centralizing, formalizing and collaborating decision making there will be a better sense of understanding and enhancer amongst the units. This executive IT cooperation will create uncluttered communication which will result in stronger organizational awareness, and allow for clear, concise, definite business strategy formation.Once executives understand the essential business needs the technologies that are required come into play, so resulting in the desired business/ IT integration. This solution would be acceptable by Saras stakeholder because once implemented, a positive domino effect of would occur These IT applications will play the needs of store managers, who will be better able to suit their employees. With the accommodation and satisfaction of employees comes betterd customer service levels which equals success for all.Solution 2 responds to the central issue with the implementation of a long boundary resolution. The incorporation of an IT leadership development program will ultimately cultivate and nourish IT focused individuals and gear them toward business management. The authors of our tex t remark on page 11 that the most useful thing any IT manager could possibly do is to push business smarts and tech smarts closer together. With the duty of a leadership development program Ezra will be expend in the growth of individual talents that will eventually be eq to executive and IT collaborations.These future IT leaders will emerge with the IT/ Business integration mindset, thus saving he company time and money with current integration efforts. This solution will be acceptable amongst stakeholders because it has potential to cut cost and increase productivity and fluidity of operations. As operations improve employees are more efficient and customers are better served. Solution 3 is a very direct approach of organization reclamation. By demoting Slogan and appointing a new IT leader Ezra will gain fresh horizon regarding the role IT needs to play.Since Slogan has a very technical compass he hesitates on promoting organization change. The appointment of a CIO will im part formal dictation and distribution of objectives for IT to pursue. Because the new CIO will lack personal relationships within the department, he or she will be quick to act and ambitious to achieve. The new CIO will bring general management experience which will reduce the tech / business integration gap and essentially create place for Ezra. Increasing value within Ezra would again satisfy the need of all stakeholders involved. E. ) What is the ideal solution?The optimal solution to figure out the absence of business and IT integration t Ezra is solution 2. Through the deployment and development of an IT leadership programs Ezra will ultimately build a continuous affix of IT leadership talent. This solution not only becomes part of the long terminal figure business strategy, but assists in the longevity and success of the organization. This solution makes more sense for Ezra because it develops a permanent solution to a variable problem. Solution 1 and 2 are respectable ch oices however these solutions only temporarily fix the major issues.Solution 1 can easily be established by executive social cohesion and lack thereof objet dart elution 2 is volatile due to the nature and fragility of organization reformation and changes in ownership. The implementation of solution 2 will be utter(a) by (short term) mapping technologists and scouting talent (midterm) comprehensively assessing, evaluating and analyzing employees who show control and potential and (long term) mentoring, planning, and training individuals to copiously understand the business the role of IT and the essential of integration.Some potential consequences to implementing solution 2 will include the initial lead-time for the project to show exults may cost a few years the necessity to rebuild IT credibility within the company and industry new amongst flavour technologist who arent geared toward leadership and resistance to periodic shifts in IT leadership as innovative and talented lead ers take on new projects or roles.The result and outcome of an IT leadership development program will be the long term success and integration of business and IT functionalities within Ezra. By harnessing technologists and gearing personalities for management positions, Ezra will create huge value and sustainability for itself within the clothing retail manufacturing industry.