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The Online Advisor - October 1998
Check for Year 2000 problems now
Year 2000 (Y2K) computer problems are not just a concern of big business. Every business is potentially affected, sometimes in unexpected ways.
For example, say that your company recently installed a computer network with new hardware and software. The hardware and software vendors have certified that the system is Y2K compliant, and it has passed all Y2K tests. You feel confident that you can begin the new millennium without worrying about computer problems.
But are you aware that microchips are an integral part of machines as varied as elevators, burglar alarms, time clocks, and sprinkler systems? Microchips are tiny computers that often depend on dates. If a machine or piece of equipment was made after 1975, there’s a good chance that it has a microchip embedded in it. No one can be sure how many of these chips will fail on January 1, 2000, or how they will fail.
How did the Y2K problem come about? In the early days of computers, memory was limited and very expensive. One tactic for programmers was to drop the century digits in any date field. As a result, the computer will read the "00" for the year 2000 as the year 1900 - a mistake that could cause any number of problems.
What should your business be doing to deal with the problem? First, make Y2K a high priority over the next year. Realize that solutions may be costly. Identify and rank potential dangers. Concentrate on those applications that absolutely must work for you to continue in business.
Communicate with suppliers and customers, prepare a contingency plan, and think defensively. For example, you might want to arrange to move key shipments from January 2000 to December 1999.
One bit of good news: The IRS will allow a current-year deduction for costs related to making your computers Y2K compliant.
Call if you would like assistance identifying and finding solutions for Y2K problems in your business.