New computer era plans inadequate says survey

Almost half the State's top companies have no written plans to deal with the possible disruption to computer-based data systems created by the dawn of the year 2000 and large numbers are unable to estimate the costs involved.

A "2000 Aware" survey by Price Waterhouse says the failure by companies to estimate year 2000 costs "suggests a serious lack of financial control".

Computer programmers predict that many computer systems will breakdown when the date change needed for the year 2000 arises.

The authors says it is "worrying" that nearly one third of financial institutions have no written plans to deal with the problem.

The survey was carried out by surveying the top 200 companies in the Republic and all Government departments. Despite these findings, 71 per cent of respondents say the year 2000 issue is either "serious or fundamental" for their business.

While overall awareness of the problem is high, only 38 per cent of senior managers and company board members are familiar with the issue. "It appears that further work will be necessary to ensure that boards and senior management are adequately briefed on this important issue." Those who have not yet started their year 2000 preparations may find it impossible to complete the necessary work in time, according to Price Waterhouse.

A worrying feature is "just how recently it started in many cases" - 52 per cent of organisations only started planning this year.

"The bigger the company the more urgent it is to start planning now," said one of the report's authors, Mr Bob Semple.

Even those companies which are implementing their year 2000 plans may find difficulties. One of these is that many companies rely on assurances from computer sellers that their products are year 2000 compliant, without any independent testing.

The survey points out that 77 per cent of companies have requested confirmation from hardware and software sellers about the year 2000, but only 44 per cent have received replies.

Companies should realise the level of preparation among their business partners is very important, says the survey.

"If a service provider or customer, who is critical to a company's supply chain, has not taken action on the year 2000, the company itself could be damaged," said Mr Semple.

The survey says that 40 per cent of respondent companies have not considered requesting confirmation from business partners on their preparations for year 2000.

Included in the survey are possible steps which can be taken to deal with the variety of year 2000 problems.

To deal with scepticism among senior management a series of briefings and workshops should be set up, says the survey. It also proposes a "millennium contingency plan" to deal with the failure of one or more systems.

For companies who have already started work on year 2000 issues, the survey recommends that a complete inventory of systems is undertaken and evaluations of any possible breakdown properly assessed.