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Year2000_Outbound_Mail_See_Below (AT) year2000 (DOT) com wrote:

 

> Part 2

>

> May 2, 1999

>

> This is part two of our special coverage of the BrainStorm

> Year 2000 National Symposium Series that took place in

> New Orleans, LA March 29 - 31, 1999. The next BrainStorm

> Conference is in San Francisco on June 28-30. Stay tuned

> for special discounts from Year2000.com.

>

> Covered by Jon Huntress, jon (AT) year2000 (DOT) com, for the Year

> 2000 Information Center: http://www.year2000.com

>

> If you wish to from this list or change your

> subscription address, please see the note at the end of

> this message.

>

> Our special conference coverage has been sponsored by

> Fidelity Technology Solutions - TRACER 2000. This

> organization provided the resources necessary to cover

> the conference, so please check out their web site if you

> have a chance.

>

> ********** The State of Other Nations

>

> Stephanie Moore of the Giga group gave a report as to

> how the rest of the world was doing. This was timely as

> many press stories are beginning to feel better about the

> Y2K situation of the United States, but are questioning

> how the rest of the world is doing and what effect this will

> have on the US.

>

> She began by telling the audience how difficult it is to

> get meaningful information from many countries. For

> instance in Saudi Arabia, getting any information is

> challenging, but in Russia there is a general lack of

> awareness at the management level. She emphasized

> that every company needs to make contingency plans

> if they deal with foreign companies, regardless of what

> country they are in. Make sure that any company,

> business partner, supplier or subsidiary that affects

> your bottom line is compliant. If they aren't, you must

> have a back-up plan.

>

> I noticed in the press very recently that Russia had

> asked for 8 billion pounds for help with Y2K. Stephanie

> pointed out that only a year ago they thought they had

> very few problems. This means there is a real question

> here as to whether this was a new projection of Y2K

> costs or just the discovery of a new "cash cow." I think

> the latter. Just as some managers have discovered

> during the last two years that they could fund their pet

> projects by tying it into year 2000 compliance, I expect

> some will see this as a whole new source of foreign aid.

>

> Stephanie reported that, in most foreign countries, there

> is a general level of ignorance at the executive level, and

> most small- and medium-sized concerns have not done

> very much. In France, the IT people are working on the

> problem, often in secret, while the managers ignore them

> and the issue. There is general feeling in Europe that the

> year 2000 problem is an Anglo-American conspiracy.

>

> Stephanie recounted an interesting story that happened

> to her when she was being interviewed about Y2K on

> French TV. The interviewer was polite and knowledgeable

> and asked her the right questions during the interview,

> right up until the end. Then he popped his zinger question.

> He asked Stephanie if all this concern about Y2K was just

>

> hype so American consulting firms could get more money

> out of France. The question took her off guard to such an

> extent that she had no answer, which is just the way he

> wanted the end of the interview to go.

>

> She said the United States is the only country working on

> contingency planning and the only country with extensive

> executive-level awareness. The United Nations is trying to

> raise awareness of the problem but often has to pay the

> airfare of delegates to go to the conferences to ensure

> their presence. Italy is doing almost nothing while, on the

> Pacific Rim, they are at least talking about it. She said

> the main obstacle to success is that the executives still

> have little or no understanding of the problem.

>

> This highlights the main reason this problem is so pervasive

> and misunderstood. The year 2000 problem is very difficult

> to understand, especially for someone with no knowledge of

> what software is or how it is made. I think the main year

> 2000 problem is the general level of ignorance beyond the IT

> circle. Some people say we could have avoided this problem,

> and I even heard that statement at this conference from

> presenters who should know better. If everyone knew then

> what we know now this might be true, but the executives in

> the rest of the world are where our executives were one, two

> and three years ago. While this attitude shows the

> marvelous effectiveness of 20/20 hindsight and gives good

> ammunition to the lawyers, it doesn't help solve the problem

> one bit.

>

> Because of the ignorance problem, there is no way we could

> have done this any differently. I wish the education process

> could have gone faster, but it didn't. And judging from the

> relatively stable number of people who think the end is

> coming, it still isn't happening. We have to work now with

> what we have, not with how we wish things could have been,

> or spend our time singling out those to blame.

>

> There are other obstacles to consider. Stephanie said there

> is a huge disconnect between the CIO and IT departments

> and the CEO. In many cases, the executives sponsor, but

> don't empower. This is also fairly common over here. The

> executives are leaving the business decisions to IT when

> these people don't have an enterprise view and can't make

> these decisions.

>

> Worldwide difficulties that exacerbate the problem are the

> Asian financial problem, Japanese banking, and the Russian

> economy. Difficulties also come from the introduction of

> the EMU in most of Europe. Stephanie reported that many

> IT departments are stealing money earmarked for EMU

> transitions in order to fix Y2K.

>

> I found a news story a few months ago out of Europe, urging

> IT people to work on the EMU because there was another

> whole year to work on Y2K. Stephanie said that year 2000

> affects everything, not just the financial system software,

> and is much more serious than the introduction of the Euro.

> But many who are involved with the Euro think just the

> opposite. She pointed out that most of the work on the Euro

> is coordinated while the Y2K solutions are individual, often

> unique, and created in isolation of everyone else. This will

>

> cause lots of problems when it comes time to test the

> systems with other systems.

>

> ** Sponsor's Message: Fidelity Technology Solutions - TRACER 2000 **

>

> The Scan Compare Utility, as well as an evaluation copy

> of TRACER 2000, may be downloaded at no charge from

> the TRACER 2000 website at http://tracer2000.fidelity.com/ .

> To get more information, including a white paper on how to

> continuously re-validate your software, e-mail TRACER 2000

> at:tracer2000 (AT) fmr (DOT) com .

>

> ********** End of Sponsor's Message ***********

>

> Editorial coverage continues:

>

> So where are the nations of the world relative to each other

> and fixing their systems? According to Stephanie, Latin

> America, the Pacific Rim, and Eastern Europe were in the

> awareness/inventory stage of finding what and where the

> problem is. Europe is in the impact assessment phase, which

> is repair and fix. The US, UK, Canada and Australia are in

> the testing implement phase, which is installing and testing

> the fixes.

>

> In Asia, the situation is mixed. China says it is addressing

> the problem, but of 500 companies asked, 53% still don't

> know what Y2K is. China has the added difficulty of having

> lots of pirated software because of their differing perceptions

> of intellectual property. Japan is supposedly having troubles

> with contingency planning and supply chain issues because,

> to ask a supplier or a customer how they are coming along

> with their fix shows a lack of trust and is impolite. Stephanie

> said the general thinking is that Japan has underestimated

> the problem and that their lack of contingency planning shows

> that the managers still don't understand the problem.

>

> She said Germany, Belgium, France, and especially Spain

> are behind and in significant danger of year 2000 failures,

> even though they are ahead on the Euro. The utilities over

> there are not in bad shape and they are doing some creative

> things. The French electrical utility is asking all their

> major customers what their electric needs will be for the

> week before and after new years. There is less job-hopping

> going on in Europe and, while there is almost no contingency

> planning, the people of Europe have had a forced education

> in contingency planning that is superior to anything on our

> side of the pond. This is because of what Stephanie called

> "human induced" infrastructure failures, or strikes. They

> have so many strikes in Europe that people are accustomed

> to having parts of their society going down or being

> inaccessible for protracted periods. They know what to do.

> The bad news is that, while Britain is ranked high, many

>

> companies are not ready. The U.S. Government ranks

> Germany on the same level as Japan. In Germany there

> is little public information available and a general reluctance

> to discuss or plan. Italy just set up a committee to deal with

> Y2K and Spain is one of the least prepared. Interestingly

> enough, in another session, one of the speakers cited the

> Gartner Group statistics on Europe and was contradicted by

> a Swedish man sitting just behind me. He said the Gartner

> numbers were just guesses and in Sweden they had a more

> accurate index called the "Garlic Belt". He said that the

> level of year 2000 compliance is inversely proportional to the

> consumption of garlic in Europe, meaning that, as you go

> South, the consumption of garlic goes up and the level of

> compliance goes down. The "garlic belt" tends to confirm

> Giga's findings.

>

> This illustrates the major problem in trying to assess how

> the rest of the world is doing. Meaningful statistics just

> aren't there. It may well be that how a company or country

> deals with disruption is more important than how many

> systems are fixed. I have been exchanging mail with an

> engineer in Latvia named Lucas. Two years ago, I asked him

> how he thought it would be. At that time, he was about the

> only person in Latvia who even knew there was a problem. He

> predicted the worst, but then added, "But look what they

> say can happen. Intermittent power, scarcity of goods and

> services, no gas, no garbage pick up. We HAD that for fifty

> years under communism. We can do that!"

>

> Stephanie didn't really cover the third world in her session

> but, at the end, she said there were far fewer things to go

> wrong because their infrastructures are older and simpler

> and the countries, as a whole, still remember how to do

> most processes with paper and pencil. But she said there

> is just no way to predict if it will be business as usual or

> what the impacts would be.

>

> Next week will be contingency planning.

>

> Best practices,

>

> Jon Huntress

> jon (AT) year2000 (DOT) com

> The Year 2000 Information Center

>

> http://www.year2000.com

>

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