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Business Strategies for Surviving Y2K

Contributed by Robert Hoersch

Sponsored by California Manufacturing Technology Center - LA Center

What the Experts are Saying…

  • Most Year 2000 projects are only software, yet every year 4 billion chips go into embedded systems, running everything from household appliances to traffic controls to weapon systems!

  • 87% of retail business systems are noncompliant!

  • 92% of companies report missing deadlines in their Year 2000 efforts!

  • The barrage of Y2K lawsuits has begun (790 demand letters for new Y2K lawsuits and rising)!

  • 25% of small business owners think Y2K is a problem; 94% of IT Professionals say it is a crisis!

  • 37% of mission-critical systems of the Federal Government may fail!

  • Bankruptcies among small business may climb to 20% (3 million businesses may not survive)!

  • Only 8 to 10 percent of Y2K failures will occur during the first two weeks of 2000, 25% of failures will occur before the end of this year!

  • Small businesses represent a critical link in the "value chain" of most companies, yet only 40% have addressed or intend to address the Y2K problem!

  • Smaller companies that are working on Y2K are about 18 months behind larger businesses in their Y2K progress!

  • International commerce and trade may face serious disruptions early next year because of computer failures in foreign countries!

Y2K Risks to Your Business?

Experts can only predict risks; no one knows for sure. Estimates range from minor inconveniences to widespread outages of vital services and even civil unrest. Successful businesses are those that plan their future and prepare their people for the inevitable obstacles and emergencies that arise.

Assessing Business Risks and Contingency Planning

The Problem

Y2K readiness is critical for business survival. Yet, there is neither enough time nor money to anticipate every potential business risk and avoid or mitigate them all. What is needed is a useful tool and methodology to quickly identify and assess risks, prioritize them according to your business operations, and develop practical contingency plans that protect the vital aspects of your business.


The California Manufacturing Technology Center CMTC will supply a Y2K computer program (provided free of charge) to identify and assess potential business risks, prioritize them according to your essential business operations, and develop Contingency Plans and effective remediation actions.

This will show how to reduce or avoid legal risks associated with Y2K business interruptions and failures. This will also provide examples of best business practices in dealing with emergency situations and potential Y2K problems.

Y2K Testing

Hardware, Software & Embedded Systems

The Problem

Any electronic device that contains a date-sensitive chip, code or program is suspect for failure unless proven Y2K compliant or harmless. The problem is testing and verifying the vast combinations of digital transactions and system failure modes. While common PCs and operating systems can be easily upgraded, custom programs and application software present technical challenges. Embedded chips are vulnerable to Y2K failure and often the most difficult to remediate, test and validate.


Through the CMTC connection You will learn how to test your PCs, operating systems, and application software for Y2K readiness using effective diagnostic tools, many free of charge from reliable industry sources. You’ll receive a valuable resource list of diagnostic and remediation tools and services.

You will learn how to identify customized programs and embedded systems that require technical investigation. You’ll receive a list of resources available for remediation, testing and validation.


The Problem

Small businesses in California account for about 70% of state employment and its economic vitality. Yet small businesses often lack the resources and organization to tackle such a serious and complex threat as Y2K.


CMTC has also been chartered by federal and state government under The Manufacturing Extension Partnership MEP and in conjunction with its Y2K Partners to work with all California companies not just manufacturing companies to address Y2K issues. CMTC will provide small business and the supply chain vendors the best proven technology for your Y2K programs on both business computers and plant floor embedded systems. Remediation and testing is available on an indivual basis for all companies that need the resources.

CMTC is providing a phone Help Desk to field Y2K questions, 8 AM to 5PM (877-Y2K-CMTC) West Coast/Pacific Time, Monday through Friday with 1-hour response. CMTC’s Website at is also available. The MEP/California Y2K Partnership will also provide Y2K internet/web site Help Desk 5PM through 8AM West Coast/Pacific Time, Monday through Friday with 24-hour response.

In addition CMTC will conduct onsite plant Y2K evaluations and reviews when needed.

Contingency Planning Workshops will be available for clients who require assistance in verifying the due diligence of their contingency plans. Remediation Requirements Workshops will be provided for those clients that need assistance in determining remediation requirements and the prioritization of the remediations.

CMTC will help minimize or eliminate the problems associated with the arrival of Year 2000 ("Y2K Millennium Bug").

All problems for Y2K are solvable.

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