Question:
If you are strictly a programmer,
how much say do you have in helping
businesses prepare for the year
2000? For it seems to me
that the situation has gone beyond
the point of no return, and businesses
should be refocusing on contingency
planning. See
Are there not moral dilemmas involved
in working (and getting paid for)
a project that has no hope for success?
I am not criticizing, I am
merely questioning for myself. As
I am in a position where I can help
companies prepare, but personally
I think it is a futile effort.
How many out there are working as
part of a team? Or are the
majority doing projects solo? Also,
are your commitments to one company
for the duration, or are you doing
multiple projects?
Answer:
No company is an island, so to speak.
So how will it benefit a solitary
- company (or even a group of isolated
companies) if everyone else in their
- community is no longer capable
of purchasing or selling goods.
It is easy to dwell on the bad news.
I am not a Pollyanna; I fully
understand the seriousness of the
problem. But to answer the
question as to why continue working,
consider:
(1) The Gartner Group's estimate
that 25% of U.S. companies won't
have their systems ready in time.
But that means that 75% will
have their systems ready in time.
Every company which completes
their project in time means some
measurable fraction less turmoil
in 2000. If one of your suppliers
doesn't make it, switch to his competitor
who has.
(2) Too many people who post
to this newsgroup discount the huge
number of companies which run packaged
software. These are companies
in every industry. If you
doubt me, check out: or or
Or a banking software company:
There are literally
tens of thousands of companies which
are going to be ready by "simply"
installing the year 2000 compliant
version of their chosen software
package. If push comes to
shove (like when one's very existence
is in question),
this can be done pretty quickly--there
is an advertising "white paper"
in the April issue of News/400 which
details an installation of SAP R/3
at Starwood Hotels & Resorts
Worldwide, a multibillion dollar
corporation that employs 35,000
people. This installation
was completed in roughly 100 days.
(3) The FDIC's bank scorecard,
as published in the Feb.. 16th issue
of Computerworld, rated 79% of banks
as making satisfactory progress
towards getting their systems ready.
There was a letter to the
editor in the March 23rd Business
Week by Paul A. Schosbeg, who is
president of the industry group,
America's Community Bankers. This
group represents 2,000 banks in
the U.S. Mr. Schosberg reviewed
the scrutiny by the FDIC, noted
that his industry has requested
even more because of the year 2000
problem, and stated that his group's
members will be ready in time.
There was a post by a bank's programmer
in this ng recently; he noted that
his bank's systems have been ready
for some time, but because the FDIC
hasn't performed the final test/certification
yet, his bank is not officially
"certified."
Once again, I am a realist; I know
that there is going to be serious
economic disruption in the U.S.,
and perhaps much worse overseas.
I am just stating the reasons
I continue to help my company get
ready--so it will be one less to
worry about in 2000.
As for the Gartner's estimate,
there is new research just released
today. See below for the complete
news release . snip -(1) The Gartner
Group's estimate that 25% of U.S.
companies won't have -their systems
ready in time. But that means
that 75% will have their -systems
ready in time. Every company
which completes their project in
time -means some measurable fraction
less turmoil in 2000. If one
of your -suppliers doesn't make
it, switch to his competitor who
has. snip
Mr Paul Milne may have a new recruit
if research continues to show information
like this :-) Date: 4/21/98 7:24:29
AM Mountain Daylight Time Year 2000
Wire/Securities Filings Research
Reveals 60% of Largest U.S. Corporations
Are Only in First Phase of Year
2000 Project MISSOULA,
Mont.--(BUSINESS WIRE)--April 21,
1998-- Triaxsys
Study Shows 45% of Nation's 250
Largest Companies
Admit They May Experience
Adverse Material Impact From
Incomplete Y2K Projects
According to
a recent analysis of federal securities
filings of the nation's 250 largest
corporations, 60% of the companies
that supplied pertinent information
have still not completed their Year
2000 computer assessment -- one
of the first phases of any Year
2000 project. This
surprising lack of progress was
discovered through a study performed
by Triaxsys(TM) Research LLC, a
research and analysis company founded
by Ian Hayes, William Ulrich and
Steve Hock. Triaxsys researchers
reviewed the 250 largest (ranked
by revenue) U.S. companies' federal
securities filings on the U.S. Securities
and Exchange commission's EDGAR
database, including Form 10K filings
for companies with fiscal years
ending in December 1997. The Year
2000 disclosure data was then compiled
and analyzed for individual company
and industry progress. Complete
results will be published in the
April issue of Triaxsys Research
Reports, available later this month.
-0- *T Key findings included: --
The majority of surveyed
companies started their Year 2000
conversion efforts
late and have made very little progress
-- These largest 250 companies
will have total Year 2000 projected
expenditures
of at least $33 billion; only 20%
of the total has been
spent to date -- 45% of companies
that discuss risk factors state
they may suffer adverse
material impacts due to incomplete
Year 2000 projects -- Nearly
half of the surveyed companies either
did not disclose their
Year 2000 program status or supplied
meaningless boilerplate
information, giving investors very
little on which to
base Year 2000 investment
judgments -0- Steve
Hock, president of Triaxsys commented,
"For quite some time, the 'common
wisdom' among IT analysts, the media
and other commentators has been
that the largest U.S. companies
have the Year 2000 problem under
control. However, our analysis of
what the companies have disclosed
in their securities filings goes
contrary to this widespread anecdotal
information. Even among the 250
largest companies, the average corporation
is still in the preliminary stages
of its project. Given that the end
of the century is drawing near,
and that many systems will hit their
time horizons of failure well in
advance of the end of 1999, these
statistics are sobering."
The majority of the
nation's 250 largest companies have
started their Year 2000 conversion
efforts late. Despite the forseeability
of the Year 2000 problem and time
estimated to complete the effort,
even the largest corporations have
been slow to start work on it. Of
the companies reporting the year
in which they began work on the
Year 2000 problem, 2% began before
1995, 28% in 1995, 35% in 1996 and
34% in 1997. The
majority of companies that have
disclosed project status have made
very little progress. Of the companies
that disclosed the status of their
Year 2000 projects, 58% are in the
first phase -- the assessment of
their internal systems. Some 36%
stated that they are in the process
of converting at least some systems
and only 6% stated that they are
in the process of testing at least
some systems. The
largest 250 companies will have
total Y2K projected expenditures
of at least $33 billion; only 20%
of the total has been spent to date.
Another way to gauge Year 2000 project
status is through cost expenditures.
The average company among the largest
250 will spend $131 million each,
for a total of at least $33 billion
by the 250. For the companies disclosing
both costs incurred through the
end of 1997 and total estimated
costs through project completion,
the statistics show remarkably little
progress. Measuring project progress
by the percentage of estimated total
project costs expended through the
end of 1997, the statistics show
a range of only 7% to 45% progress
toward completion. These companies
on average will spend $146 million
on Year 2000, with an average of
only $30 million of this total being
spent to date. Results are shown
in the following chart: -0- Year
2000 Progress Measured by Percentage
of Total
Estimated Costs Expended
Through Year End 1997
($000,000)
Costs
Percentage of
Company
Incurred
Total Estimated
Total
Through Estimated
Costs Incurred
1997
Costs
Through 1997 Least
progress
$42 $565
7%
General Motors Most progress
$45
$100
45%
First
Chicago
NBD Average progress
$30
$146
21%
Largest
250
Average
-0- "This
information highlights two important
investment issues," said Ian
Hayes, executive vice president,
Triaxsys Research. "It's good
news for investors in Year 2000
vendor stocks because the majority
of the projected Year 2000 expenditures,
at least $27 billion, is still waiting
to be spent. It's bad news for those
heavily invested in the Fortune
250 companies and should warn investors
that increased pressure on corporate
management is needed to safeguard
their investments."
The largest companies
state they may suffer material impacts
due to incomplete Year 2000 projects
or failures of third parties. Some
38% of the companies that commented
on Year 2000 risk factors, stated
that they could suffer adverse material
impacts if they do not complete
their projects on time. 45% of the
companies that commented on Year
2000 risk factors stated that they
could suffer adverse material impacts
if third parties (partners, suppliers,
customers, government agencies and/or
others) do not achieve Year 2000
compliance. According
to William Ulrich, executive vice
president, Triaxsys Research, "The
10K filings that we studied state
that 80% of the work is yet to be
done. This indicates that companies
have back-loaded Year 2000 risks
into 1998 and 1999. Ultimately,
this means that companies will miss
conversion deadlines and force project
teams to put untested code back
into production where the material
costs of business disruption will
skyrocket. Very few companies understand
what these costs mean to their long-term
viability." "Another
problem," added Ulrich, "is
that while numerous companies have
stated in their filings that supplier
and customer failures present an
unknown challenge, they do not state
the potential material impact in
terms of bottom line losses. This
is one of the most dangerous unknowns
surrounding the Year 2000 dilemma."
Many of the
largest 250 companies either did
not disclose Year 2000 status or
supplied meaningless boilerplate
information. Some 15% of the 250
companies surveyed did not provide
any information on their Year 2000
status. An additional 32% disclosed
meaningless boilerplate language
in their securities filings to the
effect that "based on current
information" or "assumption"
they do not believe the Year 2000
problem will have a material effect
on their businesses.
Hock commented, "This
group of companies has either made
no progress with regard to Year
2000 conversion or their status
is unknown to the Securities and
Exchange Commission and the public
at large. This lack of information
gives investors very little upon
which to base Year 2000 investment
judgments." For More Information
For the fully
detailed report on SEC filings of
the 250 largest companies, contact
Triaxsys directly at 1-888-320-8882.
The annual subscription rate for
Triaxsys Research Reports is $995.
-(1) The Gartner Group's estimate
that 25% of U.S. companies won't
have -their systems ready in time.
But that means that 75% will
have their -systems ready in time.
Every company which completes
their project in time -means some
measurable fraction less turmoil
in 2000. If one of your -suppliers
doesn't make it, switch to his competitor
who has. Fact is, after a major
IT failure, 90% of affected corporations
file bankruptcy within one year.
Thus 25% failure to remediate
equates to the failure of 22.5%
of all businesses. That is
significantly higher than occurred
at the beginning of the great depression
and would logically have a greater
adverse economic impact on society.
And this does not even begin to
take into account the adverse effects
of not just a domino effect but
also a feedback effect on and between
the "survivors". It
also does not take into account
the potential and probable loss
of major segments of the infrastructure
or the effect of embedded systems
failures.
Further, IIRC, Gartner is now estimating
a *much* higher rate of failure
(as am I). 50%, perhaps?
If you think there is *any* chance
of surviving with anything like
today's economy, then you are not
just a pollyanna, you are mathematically
challenged.
-(2) Too many people who post
to this newsgroup discount the huge
number of -companies which run packaged
software. These are companies
in every -industry. If you
doubt me, check out: or -
or Or a banking software
-company: There are
literally tens of thousands of -companies
which are going to be ready by "simply"
installing the year 2000 -compliant
version of their chosen software
package. If push comes to
shove -(like when one's very existence
is in question),
this can be done pretty -quickly--there
is an advertising "white paper"
in the April issue of -News/400
which details an installation of
SAP R/3 at Starwood Hotels &
-Resorts Worldwide, a multibillion
dollar corporation that employs
35,000 -people. This installation
was completed in roughly 100 days.
There are *very* few "packages"
which are installed in larger businesses
(anything above mom&pop) without
a great deal of user customization
(I have personally worked on several
such customization projects during
my extensive career). Such
additional code can and almost certainly
does contain non-compliant date
handling. This is *especially*
true of SAP.
The bank I am working for is *still
waiting* for compliant versions
of several packages, all of which
have additional custom code, and
all of which must *still be tested*
after installation (this is an absolute
requirement of the bank examiners).
In addition, we have one major
"package" for which we
*do* have the source code but the
vendor is now out of business.
This package has *major* Y2K
problems and I doubt that it will
be fixed in time.
-(3) The FDIC's bank scorecard,
as published in the Feb. 16th issue
of -Computerworld, rated 79% of
banks as making satisfactory progress
towards -getting their systems ready.
There was a letter to the
editor in the March -23rd Business
Week by Paul A. Schosbeg, who is
president of the industry -group,
America's Community Bankers. This
group represents 2,000 banks in
-the U.S. Mr. Schosberg reviewed
the scrutiny by the FDIC, noted
that his -industry has requested
even more because of the year 2000
problem, and -stated that his group's
members will be ready in time.
There was a post -by a bank's programmer
in this ng recently; he noted that
his bank's -systems have been ready
for some time, but because the FDIC
hasn't -performed the final test/certification
yet, his bank is not officially
-"certified." First of
all, whoever posted that was a liar.
The FDIC doesn't "test"
or "certify" anyone's
systems, they simply have the authority
to examine them and make recommendations.
(They can also close the bank
down if they don't like what they
see, and have promised to start
doing so in September for the worst
cases).
The examiners also visited my client
recently, and gave them a thumbs
up as being "on target".
The bank itself also recently
ran a public ad stating that we
are well on our way to compliance.
The problem is, it just isn't true
-- as evidenced by an
email I just received asking why
we are falling behind the schedule.
I have been saying for months
that we aren't going to make the
dates, and I presently estimate
that we are about four months behind
their already unrealistic schedule.
I expect it to get *much*
worse before the end of the year.
And I'm not even going to get into
some of the really *stupid* technical
decisions which are being made each
and every day, many of them making
the problem worse rather than better.
So are all these good people intentionally
deceiving our customers and the
general public? By no means!
They actually *believe* that
*they* (meaning us) will get the
problem fixed if only *they* work
harder. The problem is that *they*
(meaning management and examiners)
simply don't have any valid, realistic
concept of what is involved in fixing
these problems, and so they continually
underestimate the workload and the
time required to complete it. They
just don't *listen* to the real
experts -- those of us who are doing
the actual work.
The sad part is that their pollyanna
attitude will do more harm than
the Y2K bug itself. Because
of it, there will be no serious
contingency
planning until it is far too late,
just as their attitude to date has
already led to a situation in which
it is now too late for any significant
remediation.
Because of this, what should have
been just a nasty little bug from
which everyone could recover will
now become THE WHITE DEATH -- a
worldwide plague every bit as deadly
to human life as the black death
of the 1300's.
-Once again, I am a realist; I know
that there is going to be serious
-economic disruption in the U.S.,
and perhaps much worse overseas.
I am -just stating the reasons
I continue to help my company get
ready--so it -will be one less to
worry about in 2000. No, Bob, you
are *not* a realist. You are
a Pollyanna just like my client's
management and just like the FDIC.
You are the *problem*, Bob,
not the solution, and based on your
comments I *seriously* doubt that
you are really working in the belly
of the Y2K beast.