Improve profitability and cash flow for small business, even the one-person operation, by applying proven value engineering methods.
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Improve profitability and cash flow for small business, even the one-person operation, by applying proven value engineering methods.

The Y2K Scare
(Coming Back To Haunt Us)

The short article below reduced the Y2K scare to "Management's Top Five Y2K Issues." It's almost frightening how the approach to the Y2K problem is so applicable today with new technologies invading businesses so quickly it's hard to keep up with them all.

For emergency preparedness kits and countless related survival products, we recommend starting with the Executive 72-Hour Kit from Nitro-Pak, as seen on CNN.


On many pages of this site, you'll see paired images like these two that urge you to "Apply VE to your business..." and "Profit by doing things better."
Apply VE to your business... Profit by doing things better.
They appear just as a reminder of the basic premise of this site, which is that we can use value engineering principles to solve almost any business problem and so improve a company's performance, profitability and cash flow.

Management's Top Five Y2K Issues

To help business managers deal with the Y2K scare, we prepared a special summary of the top five Y2K issues. First, here's the essence of the year 2000 problem:
  • For the last four decades, computer programmers have stored date information in YY-MM-DD format.

  • Representing years with only two digits saved on computer storage space which was very costly 40 years ago compared to today.

  • With no digits available to indicate the century, computers cannot distinguish between 1900 and 2000.

  • All time-sensitive functions (virtually everything) will be adversely affected the moment we enter the 21st century.

  • Millennium bug problems have already started occurring as computers have already begun routines involving dates beyond January 1, 2000.

  • Correcting the problem involves adding back in the two century digits or taking some equivalent action.

  • The solution is expensive and labor-intensive because of the many lines of computer coding that have to be checked and adjusted with human intervention.

Please note that our top-five Y2K scare summary consists of information that is non-technical in nature. It's intended primarily for those with management responsibility for Y2K projects within their organizations. It may also interest those who simply want a concise overview of the issues. Now, here are management's top five Y2K issues relative to the Y2K scare.

  1. It's time sensitive.
  2. It's a business, not technical, problem.
  3. 100% solutions may be impractical.
  4. No business is an island.
  5. Labor-saving resources exist.

1. It's time sensitive.

You couldn't find a better situation to use the expression, "Time is of the essence!" This is a real problem with an unalterable deadline. WE CANNOT STOP THE ARRIVAL OF JANUARY 1, 2000. Many businesses fail because their owners/managers put off essential action. At the very least, you must assess your current position. Once you know this, taking cost-effective action becomes a lot easier. If you don't, you're working in the dark. As a result, decisions may be costly, even deadly for your business. RECOMMENDED ACTION: Assess your current position immediately. Hire qualified resources if you don't already have them in-house.

2. It's a business, not technical, problem.

Day in and day out, businesses are faced with problems to solve. Some are technical, some are not. Regardless of its nature, every problem is ultimately reduced to a business issue. Ideally, management evaluates several possible solutions and then selects the most cost- effective one. APPROACH THE YEAR 2000 PROBLEM IN THE SAME TRADITIONAL WAY. Just because the problem has to do with computers is no reason to fear it any more than any other problem. It's important to act quickly though because problem-solving resources are already starting to become scarce and more expensive. Have you ever bought standing room only from a ticket-scalper just before a popular event? RECOMMENDED ACTION: Develop a year 2000 action plan immediately and start checking off the things on it as soon as possible.

3. 100% solutions may be impractical.

Many of us feel dissatisfied if we don't find a 100% solution to a problem. This is especially applicable in the case of computer software where programmers hate to stop working on their project until it's perfect. The fact is though that the effective operation of a business almost always involves a compromise of some sort. THE YEAR 2000 PROBLEM IS SO BIG AND PERVASIVE, THERE IS SIMPLY NOT ENOUGH TIME LEFT FOR IT TO BE SOLVED COMPLETELY. So don't go looking for a 100% solution. Instead, assess your current position and then, at the very least, take the action necessary for your business simply to survive. Make a plan to deal later with non-essential issues. RECOMMENDED ACTION: Accept the reality of the situation. Divide your action items into two categories - survival and revival.

4. No business is an island.

The year 2000 problem is a worldwide one. Whether we want to or not, we all have to join hands on this one. Will businesses want to work with suppliers who have not demonstrated that they've effectively fumigated their operation for the millennium bug? Will banks want to lend money to businesses that risk failing because they've not taken effective year 2000 action? NO BUSINESS CAN OPERATE IN ISOLATION. The business owner/manager charged with year 2000 responsibility needs bug-eyed alertness. He needs to be the Bruce-Lee action hero who can see all attackers at once and then dispense with them one by one in order of threat value. RECOMMENDED ACTION: At the very least, meet all parties with whom you interact to ensure there are no life- threatening gaps in your year 2000 solution.

5. Labor-saving resources exist.

The problem originated when the first computer programmers stored date information in YY-MM-DD format. With no digits available to indicate the century, computers cannot distinguish between 1900 and 2000. Correcting the problem involves adding back in the two century digits or taking some equivalent action. The solution is expensive and labor-intensive because of the many lines of computer coding that have to be checked and adjusted with human intervention. FORTUNATELY, TOOLS EXIST TO DO WORK SUCH AS CODE SCANNING. Qualified trouble-shooters can then limit their attention to the flagged items. RECOMMENDED ACTION: In your action plan, identify all tasks for which you can use labor-saving tools. Start on them first so that flagged items can be dealt with by qualified human resources while they're still affordable.

Return from this Y2K scare page
to the value engineering page
.

Internet business consulting that is results oriented.