'Japan and the Y2K Dilemma
U.S. companies are spending millions of dollars to
protect their computer systems from the ravages of
the Millennium Bug. But for Japanese companies, the
problem is much worse. Many are not aware of the
magnitude of the problem; some know, but are not
concerned. Time is running out. And the fate of
Japanese companies in the year 2000 is intimately
linked to that of their better-prepared American
colleagues.
The world of business has truly become global.
High-speed air travel, sophisticated
telecommunications and the Internet link corporations
with their foreign subsidiaries. Electronic components
from Asia power computer equipment all over the
world. This interdependence has created a rich and
dynamic business environment. But in terms of the
Millennium Bug, it could prove disastrous. Even if
your company is fully Y2K-compliant, it could be
affected by the status of the foreign companies it does
business with. And that is why Japan, with its strong
ties to the U.S., has become such a source of
concern.
The statistics are shocking. Over 90 percent of
Japanese companies are not fully prepared for the
year 2000, according to a survey by the Tokyo Stock
Exchange. Takafumi Hamaguchi, the chief researcher
at Tokio Marine Risk Consulting Co., says that top
managers of Japanese companies are frequently
unaware of the urgency of the Y2K problem. They
see it as an issue to be handled by the information
services department rather than a pressing concern
for the whole organization.
"What is quite frightening is that the problem is
probably bigger [in Japan] than in other countries,
says Bob Haywood, vice president of Asia Pacific
services at the Gartner Group. "This is because the
problem is most noticeable in very large,
enterprise-wide, multiframe legacy applications …
and Japan's industry has more of these than any other
country." In addition, because more than 70 percent
of Japanese software applications are customized,
each must be analyzed separately.
The U.S. government, industry associations and many
large corporations have publicized their efforts to
achieve Y2K compliance. Many have Web pages
that invite feedback from concerned citizens. This free
exchange of information has raised public awareness
and enabled companies to benefit from the
best-known strategies. But Japanese companies are
not required to disclose their Y2K status to each
other. The true scope of their problem cannot be
known.
How should your company respond to this challenge?
Learn as much as you can about the compliance
levels of your overseas colleagues, and start a
dialogue. The Millennium Bug will affect businesses all
over the world in unpredictable ways. It's survival of
the fittest. And in today's international business
climate, no company can stand alone.
year2000.dci.com |
