TECHNOLOGY FOR BUSINESS: Squashing the millennium bug.

Small businesses need to immunize to keep from catching the Y2K flu

By now most people have at least heard of the Year 2000 problem. Better known as Y2K or the millennium bug, this ominous software glitch has spurred most major corporations and government agencies worldwide to take corrective measures. Doomsayers have predicted everything from massive power out-ages to plane crashes.

While the problems may not be quite that dramatic, it certainly reaches into every aspect of our lives. Banking, telecommunications, financial markets, utilities, security systems and even elevators can be affected.

For businesses small and large, which often depend on applications which use dates to trigger billing, calculate interest rates, pay creditors, etc., an incorrect date calculation could have a disastrous effect. The GartnerGroup, a Stamford, Connecticut-based technology research firm, estimates that fixing the Y2K problem will cost businesses worldwide $600 billion.

Despite the cost, corporations have been preparing their computer systems for over a year to allow time to test for Y2K compliance. Unfortunately, many small business owners haven't been as diligent in identifying and repairing the problem within their computer networks, assuming that their operations had little to fear from the dreaded "bug." That couldn't be further from the truth.

The Small Business Association launched its "Are you Y2K OK?" campaign last year to alert entrepreneurs to the dangers of overlooking this issue. The potential pitfalls of noncompliance include: the inability to retrieve inventory and accounts receivable records, losing orders placed in 1999 to be delivered in 2000 or being unable to correctly calculate taxes, insurance premiums and employee withholding. There have already been reported cases of retailers losing revenue because they're unable to process credit cards with expiration dates of "00."

Ignoring the problem could also leave business owners open to the onslaught of litigation expected to result from companies' inability to fulfill their business obligations. Global computer systems may not grind to a halt on January 1, 2000, but the problem will rear its head in unexpected places, so it's best to be prepared.

Small business owners in particular need beware of the Y2K bug because the loss of even a few days of revenue can be critical to their operations, says Aida Alvarez, administrator of the SBA. To address the problem the SBA has posted an extensive list of Y2K information and resources on its Website (www.sba.gov/y2k). Although the January 1, 2000, deadline for Y2K compliance is fast approaching, their relative size has given small business owners more leeway than larger companies in fixing a problem that's been 30 years in the making. But, time is running out.

In the early days of computing, when computer memory was at a premium, programmers saved space by making the century a permanent part of the programming. Thus, January 1, 1999, is expressed as 01/01/99, taking the "19" for granted. However, when the year 2000 arrives these systems won't be able to interpret 01/01/00 as January 1, 2000.

Mel Corbett didn't think that the Y2K problem affected his Brooklyn, New York-based store. "My computers are only a couple of years old and all the software has been updated within the last year or so," says Corbett, owner of the Brother's Community Hardware Store. He assumed that the problem of Y2K compliance was restricted to mainframe computers and that his network of three PCs was immune. But even if only a single computer is used to run the business with standard, off-the-shelf software, the bug can bite.

Despite the fact that Corbett's systems are all running Windows 98--supposedly Y2K compliant--the date format, which is part of the internal clock, is initially set in the two-digit format. Like most PCs, the system clock is used to date and time stamp every file that is created or updated, and several of his programs base calculations on its settings. To be sure your clock is in good shape, try setting your computer's date clock to 11:59 p.m. 12/31/99 to see if it will display the correct four-digit year, 1/1/2000. If not, the problem can be corrected with software that updates your system's basic input/output setting (BIOS).

Checking an individual program's Y2K compliance is not as simple. Fortunately, several companies sell diagnostic kits that can check a program's code for the two-digit date format. These programs start at under $50. "The off-the-shelf programs are probably the best bet for small businesses to identify potential Y2K conflicts at this late date," says Gary Lucas, CEO of Lucas Systems, a DePere, Wisconsin-based software development company specializing in Y2K compliance. Lucas suggests a Y2K diagnostic package should do the following:

   * Identify the date fields in your applications

   * Convert the data in your files to the new date format

   * Identify all programs using those dates

While the programs may not fix all of your problems, they make you aware of them by highlighting the lines of code where the problem exists. Armed with this kind of detailed information, it's easier and more cost effective to approach Y2K compliance. Once the susceptible applications are known, contact the original vendor or programmer to find out about repairs. In some cases, solving the problem is as simple as downloading a Y2K patch from your vendor's Website. If the problem can't be fixed by the vendor, there's still time to find a replacement program that is Y2K compliant.

As for Corbett, who installed and maintains his own network, he was shocked by his discovery after using Symantec's Norton 2000. "I assumed I'd covered all the bases by keeping my software and hardware up-to-date," he says. "It never occurred to me that there were other things that I needed to check." Corbett was especially concerned because much of his supplies are ordered automatically through an inventory program. "We operate on a thin margin and any delay could have a serious effect on the bottom line if all our interdependent systems don't work properly," he explains.

Sometimes the program's code is Y2K compliant but the data isn't. This is especially true in databases and spreadsheets. The files need to be checked to ensure all date references are in the four-digit format. Corbett discovered that some of his sales projections, balance sheets and budgets included the wrong date format. Other programs, such as an accounting package, might use some of the data and the calculations might be faulty.

If you're not up to the task or have a larger network of computers, hiring a consultant is an option. Rates and expertise vary. There's one caveat: no certification is required for Y2K consultants so anyone can claim the title. "Small business owners must work closely with their consultant. They may be skilled in programming but they don't know the idiosyncrasies of your business," warns Lucas. The SBA also has suggestions for finding a consultant on its Y2K Website.

The final check is to make sure that anyone you do business with is Y2K compliant. Many experts believe that this is the real problem. You could have your systems up-to-date but the Y2K bug could still cause problems such as undelivered inventory and lost records of payment if others fail to update their systems. It'd be a shame, after all of your diligence, if someone else's lackadaisical approach to the millennium bug could put your company in a tailspin.

Y2K software and resources

SOFTWARE

Check 2000

Check 2000 PC Deluxe

Greenwich MeanTime-UTA

Features: pinpoint and prevent data problems in software and spreadsheets, test and fix BIOS, check incoming and new data from outside sources such as e-mail, floppy disks and other storage media.

Retail: $59.99; 800-216-5545 www. gmt-uta.com

Norton 2000

Symantec Corp.

Features: extensive data scanning, color-coding and annotating of Excel spreadsheets, software application scanning and BIOS test and fix.

Retail: $39.95; 800-568-9501 www.symantec.com

Y2K WEBSITES

The President's Council on the Year 2000 Conversion www.y2k.gov

IBM's Year 2000 www.ibm.com/year2000

Microsoft's Year 2000 Resource Center

www.microsoft.com/technet/ topics/year2k/default.htm

The Small Business Administration

www.sba.gov/y2k

Symantec's Norton 2000

www.symantec.com/sabu/ n2000/n2000.html

Year 2000 www.year2000.com