Euro is three times more expensive than Y2K

Citation

(1999), "Euro is three times more expensive than Y2K", European Business Review, Vol. 99 No. 5. https://doi.org/10.1108/ebr.1999.05499eab.001

Euro is three times more expensive than Y2K

Euro is three times more expensive than Y2K

Keywords: Technological change, EMS, Currency, Business planning

Euro is three times more expensive than the Year 2000 date change according to Euro transformation specialists, Decision Vision Europe. Decision Vision Europe commissioned IT market intelligence specialists, Neaman Bond Associates to conduct a pan-European study - supported by the European Commission - covering 14 European countries, including the 11 Eurozone countries as well as the UK, Sweden and Switzerland, interviewing 1,003 senior IT managers, strategists and business managers from Global 2000 companies and the public sector.

"Euro is more complex and therefore carries a higher cost burden," said Elizabeth Bradley, UK Managing Director and Chief Operating Officer of Decision Vision Europe.

"Governments, enterprises, their business partners and international bankers are all impacted. The main difference between Year 2000 and Euro is that Year 2000 is a technical issue that impacts a company's business. Euro is a business issue that impacts a company's technology. It is this distinction that adds to the complexity and cost of implementation."

Six stages of Euro transformation

As a measurement of progress, Neaman Bond used a stage model of Euro transformation which anticipates a progressive Euro driven business implementation through six stages. These stages include:

1. 1.

   Base level. Euro treated just like another foreign currency to be handled in a multi-currency accounting system.

2. 2.

   Base currency transition. The period where countries signed up for the Euro will operate with dual base currencies - applying until 31 December 2001.

3. 3.

   Dual coinage and notes. The six-month period starting 1 January 2002, when participating countries will simultaneously use both their own paper currency and coins as well as Euro currency and coins.

4. 4.

   Base currency replacement. Post July 2002, when the national currencies of participating countries disappear.

5. 5.

   Commercial transformation. Throughout this period commercial transformations are likely to seep into market places.

6. 6.

   Economic transformation. Genuine transformation occurs.

Decision Vision Europe is the only company to provide a step-by-step consultative service at the grass roots, operative level in order to facilitate Euro adoption throughout an entire enterprise. Using its own intranet-based library of customisable templates and pragmatic frameworks, Decision Vision Europe is able to speed execution and enhance communication at each critical stage of Euro adoption. This includes:

• •

  setting bench marks by intelligence gathering and status assessment throughout the extended enterprise;

• •

  high level impact assessment on major business processes;

• •

  detailed change and communication programme design;

• •

  progressive execution by mentoring of the client programme team or using DVE's own programme management capability.