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Case Study 1 33

$695 million in sales, a 38-fold increase in demand. You will learn In the final analysis, zulily succeeded because its found-
some of the ways that such enormous growth can be accommo- ers developed an innovative application of information sys-
dated in Chapter 6. For now, understand that such growth would tems technology. As you will learn, the technology zulily uses
be impossible in a world without information systems. is not groundbreaking. All that technology was described in
But there’s more. In that same prospectus, zulily stated the fourth edition of this textbook in 2009 when zulily was
that it has developed “extensive data collection and analyt- founded. The creative genius was finding a way to apply that
ics capabilities” that enable it to anticipate its customers’ technology to a business opportunity and then to have the
shopping preferences and to tailor the customers’ shopping managerial skill to develop that idea into a thriving business.
experiences accordingly. So, as with any good salesperson, Without doubt, dozens of such opportunities lie in front of you.
what you see and how it is shown to you depend on what You just need to recognize and build on them.
you’ve purchased in the past. That same data can also be
analyzed to help buyers determine the items customers are Questions
most likely to purchase. You will learn about data analytics
in Chapter 9. 1-9. Go to zulily.com and register. Identify features of the
site that make shopping entertaining to mothers and
Growth-Management Problems explain why those features entertain. Explain why this
is important to the zulily business model.
Such spectacular growth does not come without problems.
According to its 2013 annual report (SEC Form 10-K), zulily 1-10. Go to Nordstrom.com and shop for children’s clothes.
increased its headcount from 329 at the end of 2011 to 1,110 How does the zulily shopping experience differ from
at the end of 2013, more than tripling its workforce in 2 years. that at Nordstrom? Briefly describe the advantages and
That rate of growth is exceedingly difficult to manage, a fact the disadvantages of each type of experience.
company recognized in that annual report: 1-11. If you were a buyer for zulily, what data would you like

To support continued growth, we must effectively integrate, de- to have about customer purchase habits?
velop and motivate a large number of new employees, while
maintaining our corporate culture. In particular, we intend to 1-12. If you were a buyer for zulily, what data would you like
continue to make substantial investments to expand our mer- to have about past vendor performance?
chandising and technology personnel. 13
1-13. In the general course of life, 2-year-old boys become
Unfortunately, zulily is located just down the street 3-year-old boys, 4-year-old girls become 5-year-old
from Amazon and Nordstrom and just across a lake from girls, and so on. How can zulily use this not-so-remark-
Microsoft. Finding (and retaining) those merchandising and able phenomenon to customize a customer’s shopping
technology personnel in Seattle will be difficult. In its annual experience? What data would you need to do this?
report, zulily mentioned particularly the need to hire mid-
level managers. 1-14. As a business professional, it is likely information sys-
tems professionals will ask you data questions like
Learning from zulily those in questions 1-11 to 1-13 above. What is the best
way for you to respond? Verbally in a meeting? With a
zulily is remarkable for its spectacular growth, but it’s even
more remarkable because that growth occurred in a very written document? With a sketch or diagram? How will
traditional market. What’s more basic than selling clothes you know if you have been understood?
to women? Who would think that the founder of a company 1-15. At the March 2014 stock price, the market values zulily
in that market could turn his holdings into $2.0 billion in 4 at $6 billion. Describe zulily’s principle assets. Does a
years? Or that the company could triple its workforce in 2 $6 billion valuation seem appropriate, given your de-
years? scription of the company’s assets? Justify your answer.

13 zulily Prospectus, www.sec.gov/Archives/edgar/data/1478484/000144530514000741/zu-12292013x10k.htm.