Exploiting the benefits of Y2K preparation

Reviewer: John R. Ray

Robertson and Powell contend that the Y2K cloud could hold a silver lining if senior management and IS management both recognize the opportunities and act accordingly. The thrust of Y2K coverage has been that Y2K compliance is just a technology cost that has to be borne. Business opportunities and benefits may also derive from the Y2K problem, if approached properly. Y2K preparation also anticipates European Monetary Union (EMU) preparation, which is likely to be the next major company-wide problem. Practically all large organizations are addressing the Y2K problem in the same way, despite the lack of preparation at most small organizations. The public sector generally lags behind the private sector. However, organizations that recognize and plan for Y2K benefits will reap larger and more effective business operations than those that do not, in the form of a large return for a relatively small incremental investment. IS generally views Y2K as a problem inhibiting the use of scarce resources. Senior management may view it as a problem or an opportunity and may consider Y2K preparation solely a cost. Only senior management is likely to have the vision and ability to reap wider benefits from the Y2K bug. In many cases, the Y2K problem is being used as a means of driving wholesale hardware and software upgrades. Some of this forced rationalization is beneficial, forcing senior management into sweeping hardware and software replacements. IS management should at least spell out a business case, with piecemeal fixing as an alternative, allowing long-term cost comparisons. In addition to its effects on competitive positioning and forced rationalization, Y2K preparation affects every employee. While certain individuals suddenly earn higher salaries, benefits for the organization include increased organizational capability, flexibility, and efficient project delivery.