The Year 2000: Man, what a systems' headache

By DOUG WILLIAMSON

Business Editor

Hundreds of billions of dollars will be spent between now and Jan. 1, 2000, to avert the absolute collapse of business worldwide.

All because of two little numbers - "00."

"Nobody ever thought that computers and software being developed in 1985 would still be operational in 2000," said Louis Barton, an expert in the 2000 problem. "That's why the industry standard for dates is MM/DD/YY (or month-date-year). They just didn't think that '00' would make the computers think it was 1900, not 2000.

"The vast majority of mainframe and PC software were designed with two-digit year fields. The '19' is not utilized ... (A large research group) predicted 90 percent of all computer-based applications will fail if not adjusted for the new millennium."

First National Bank of Abilene hosted two workshops Tuesday, featuring Barton and his suggestions for overcoming "Y2K," or the year 2000.

Think of some of the possible impacts.

"The condition will result in system failures, incorrect reporting and service interruptions," he said.

"You program the VCR, but it won't record the show," he said. If you set it to record the Rose Parade on Jan. 1, 2000, It won't because the VCR thinks the date has passed.

"Today's date is Jan. 31, 2000. A retiree's birthday was April 5, 1932. His age is now 68 years, since the computer thinks '00' is 1900. Minus 68 years is less than 65 years old, so the retiree does not get a retirement check."

Those are some of the more obvious ones, but what about elevators, PBX phone systems or bank vault doors with computer chips that base some of their activities on dates?

Barton said at least one Texas bank found that it's vault door worked not only on a timing system, but a date-timing system. It just might not open on 1-1-00.

"Virtually every software application must be modified, validated and re-installed. It will require significant human and system resources," he said.

Barton suggests companies take risk assessments on each system or application. Then an action plan should be developed, joining hardware and software vendors, users and service bureaus. Each system and software application needs to be tested and certified as 2000-compatible.

If a company doesn't do those things, besides setting itself up for possible collapse on Jan. 1, 2000, Barton said it also could experience:

n Securities class actions.

n Calling of bank credit lines, if an audit shows the business at risk.

n Directors and officers liability insurance will not cover the negligence of not doing something about the known problem.

n Business interruption insurance may not recognize 2000 as a "fortuitous event."