'Interview on Embedded Systems: Ken Owen, TAVA Technologies'
Ulrich and Hayes are among THE top Y2k experts.
I have described their Y2k standard book in another post.
John
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TRIAXSYS RESEARCH LLC was founded by Steven L. Hock, William M. Ulrich and Ian S.
Hayes. Their combined 60 plus years of experience in the Information Technology Industry
caused them to recognize the pressing need for corporate managers and investors to
understand the inextricable interrelationship between technology, law and economics.
Until now the business community has lacked a single source of reliable research and
analysis on the combined technical, legal and economic aspects of major technology
challenges, including the Year 2000 problem. To fill that void, the founders of Triaxsys
joined forces, assembled a team of leading independent research consultants, and are
preparing truly interdisciplinary research reports.
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triaxsys.com
Triaxsys Research Report ú Vol. 1 No. 1 ú January 1998
Executive Perspective.....................................................................................................1
An editorial perspective on the contents of this issue.
Taking Stock of Recent Developments............................................................................2
A survey of important recent developments, products, and upcoming events in the Year 2000
field.
Industry Focus.................................................................................................................4
Year 2000 Impacts on Bank Profitability: The cost of compliance could obviously
decrease a bank's profit margins. However, of greater concern are the data links between
banks and third parties. Data contamination can disrupt billions of dollars in transactions
despite compliant internal systems. Banks serving manufacturing sectors, which
potentially have both supply chain and embedded chip problems, are also at risk.
Risk Reduction in Banking Industry Year 2000 Conversion Projects: Banks should
(1) complete a systems inventory, (2) identify external data interchange points, (3) identify
all third-party dependencies, (4) define interdependencies among business functions, (5)
articulate potential problems in business terms, (6) prioritize projects based on business
impact, time to failure, and more.
Banks Facing Unique Year 2000 Legal Risks: When the SEC begins reviewing Year
2000 disclosures, financial institutions will be targeted. In addition, the Federal Reserve
has made it clear that enforcement actions against banks failing to address Year 2000
are probable. Banks also face unique liability risks to third parties.
Complications/Solutions................................................................................................10
Certifying Year 2000 Compliance: The complication is that thorough testing of every
device or application is required to ensure compliance, but that few if any information
technology (IT) organizations will be able to complete full testing efforts. The solution is a
risk based testing plan.
Common Legal Pitfalls in Testing: Juries have little difficulty grasping the importance
of testing. They are quick to perceive and condemn poor testing programs. Companies
must take steps to avoid common legal pitfalls in the testing process.
The Official Story...........................................................................................................13
Federal Government Waking Up to Year 2000 Reality: Representative Stephen Horn
(R-CA) states, "Another year has passed and the latest data show that the current work
on Year 2000 in Federal computers is unacceptable and potentially disastrous."
Government reports reveal substantial omissions in the government's efforts, and it is
clear that a number of federal agencies will not meet their Year 2000 deadline.
Action in Washington -- Disclosures to Shareholders Regarding Year 2000: SEC
investigations into Year 2000 disclosures and resultant enforcement actions are likely to
begin soon. According to SEC Bulletin No. 5, "Companies should review, on an ongoing
basis, whether they need to disclose anticipated costs, problems and uncertainties
associated with Year 2000 consequences." The bottom line is the SEC "takes this issue
very seriously."
Worldwide.....................................................................................................................16
European Update: European Year 2000 efforts lag behind US efforts by six months to
one year. A significant number of companies have yet to begin any Year 2000 work.
UK Prime Minister Tony Blair Pledges Action on Year 2000.
Features........................................................................................................................19
Electronic Supply Chains: Virtually all companies rely on data processed through other
sources. Electronic supply chains are especially vulnerable to corruption by weak links in
a chain. Companies have devoted insufficient attention to Year 2000 problems inherent in
electronic supply chains and must consider defensive actions.
Embedded Technology: The Ultimate Year 2000 Challenge: Embedded systems
range from simple chips running a single circuit to complex integrated hybrid systems.
Management must move quickly to assess their company's exposure based on
guidelines described herein. Remediation and testing strategies are outlined.
Interview on Embedded Systems: Ken Owen, TAVA Technologies: Owen, Vice
President, TAVA Technologies, discusses the magnitude of the embedded systems
problem, the economic sectors impacted by the problem and methodologies for dealing
with it.
Myth vs. Reality.............................................................................................................29
"Worldwide panic is now inevitable...". Gloom and doom are predicted by many,
including Gary North, for the Year 2000. North predicts the breakdown of society:
Triaxsys' predictions are not so dire. |
