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Related Experiment Videos

Connectivity and control in the year 2000 and beyond.

R L Nolan1, J Brennan, K P Coyne

  • 1Harvard Business School, Boston, MA, USA.

Harvard Business Review
|June 6, 1998
PubMed
Summary
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The Year 2000 problem, a software issue with dates, is more pervasive than many executives realize, impacting critical infrastructure and supply chains. Organizations must prepare for widespread system failures beyond their direct control.

Area of Science:

  • Computer Science
  • Information Technology Management
  • Business Continuity Planning

Background:

  • The Year 2000 problem, a widespread software issue where '00' is interpreted as 1900 instead of 2000, affects numerous business systems.
  • The problem's pervasiveness extends beyond internal systems to suppliers, banks, customers, and embedded chips in critical infrastructure like power grids and ATMs.
  • Real-world incidents, such as spoiled inventory and sewage system failures, highlight the tangible risks of unaddressed Year 2000 issues.

Purpose of the Study:

  • To underscore the critical nature and pervasive impact of the Year 2000 problem for business executives.
  • To prompt strategic thinking on organizational preparedness for potential system failures.
  • To explore how senior managers should approach connectivity and control challenges in the Year 2000 and beyond.

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Main Methods:

  • Analysis of the scope and implications of the Year 2000 problem across various industries and systems.
  • Case study examples illustrating the consequences of Year 2000 failures.
  • Compilation of expert commentary and strategic perspectives on managing Year 2000 risks.

Main Results:

  • The Year 2000 problem is deeply embedded in diverse systems, from payroll to critical infrastructure, posing significant operational risks.
  • There is insufficient time to rectify all Year 2000 vulnerabilities before the deadline.
  • Interconnected systems present a major challenge, as even compliant internal systems can fail if external connections are non-compliant.

Conclusions:

  • Organizations must prepare for inevitable system failures due to the Year 2000 problem, even with internal fixes.
  • Strategic planning for connectivity and control is essential for mitigating Year 2000-related disruptions.
  • Senior management needs to focus on response strategies for when systems inevitably begin to fail.