NEWS for North Dakotans
Agriculture Communication, North Dakota State University
7 Morrill Hall, Fargo, ND 58105-5665

May 13, 1999

Y2K Bug's Bite May Be Worst for Small Businesses, says NDSU Manufacturing Specialist

Because of a lack of understanding and preparation, the region's smallest businesses may feel the biggest bite from the Y2K bug, according to a manufacturing specialist at North Dakota State University.

"Small business managers really need to be concerned about the Y2K problem and how it can affect their businesses," notes Reuben Tschritter, a manufacturing specialist with the North Dakota Manufacturing Technology Partnership at NDSU. The Y2K problem is a computer glitch that may affect computers and electronic equipment as the calendar turns to the year 2000. Many computer programs recognize only the last two digits of a date and the switch from 99 to 00 may result in shutdowns, malfunctions and confusion.

"Anything that references a date field is at risk," Tschritter says. "And if it's ignored, there will be high expenses to fix the problem under pressure."

Although government agencies and many large businesses have been reviewing their computer systems for Y2K bugs for years, Tschritter says he sees less preparation among small businesses.

He advises that businesses test their computer systems, software and equipment with microprocessors for potential problems. Managers should develop a plan to detect, correct and retest for any problems. Key areas that could be affected by Y2K problems are shipping, invoicing, processing and receiving orders. Some computerized machinery and equipment could also be affected.

"No business exists in a vacuum. They are all a part of a chain of customers, suppliers, utilities and vendors," Tschritter says. "Make sure all your suppliers and vendors are Y2K compliant."

Although interruptions in business or production are likely to be costly, the longer term damage to customer relationships may be the biggest casualty of the Y2K problem, Tschritter says.

"Many small businesses are built on relationships," he notes. "If something like the Y2K problem prevents you from providing a service or product that your customers need, the potential for harm to those is very great."

The North Dakota Manufacturing Technology Partnership is offering a kit to small businesses that will help them assess their risk of problems with the Y2K bug and help them formulate plans to fix problems. The free kit includes assessment software and a user's guide. For more information, call (701) 231-1001. Additional assistance is offered through the Small Business Administration.

"There is no simple solution, but the more you depend on computer software and microprocessors in your business, the bigger your risk," Tschritter says. "And we're dealing with a deadline that's non-negotiable."

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Source: Reuben Tschritter (701) 231-9494

Editor: Tom Jirik (701) 231-9629