If the Year 2000 Problem isn't enough to keep legions of CIOs, information systems specialists and programmers up late at night worrying whether their company's information systems will turn into pumpkin pie when the clock strikes 12 on the night of Dec. 31, 1999, perhaps the introduction of the euro a year earlier will.

On Jan. 1, 1999, the euro will become the legal currency of 11 member states of the European Union. The list includes Germany, France, Italy, Spain, the Netherlands, Belgium, Austria, Portugal, Finland, Ireland and Luxembourg. Greece has not yet passed the financial health check-up required for membership, while the United Kingdom, Sweden and Denmark have elected to remain out of the monetary union, at least during its initial stage. However, given the momentum of a single market soon to be bolstered by a single currency, most observers expect the holdouts to join the party within the next few years.

What impact will the euro have on enterprise information systems? Plenty, especially in this global economy that ties all but the most provincial of companies together. The introduction of the euro has been likened to learning a new language. Naturally, it impacts first and foremost the departments and systems responsible for storing and transporting information.

The introduction of the euro, combined with the Y2K Problem, provides companies with a compelling reason to review, upgrade and possibly replace their existing information systems. The review process, which involves scanning all software to identify potential difficulties and shortcomings, can be done simultaneously for both the euro and Y2K projects.

Most software packages will require upgrades in order to cope with the euro, and considerable reprogramming to deal with the Y2K Problem. Enterprises that still rely on antiquated in-house systems written in outdated programming languages should consider scraping the old system altogether in favor of a more efficient software package.

The EU provides a useful checklist for companies facing a euro conversion project. Its advice: screen all software to assess whether each system can operate in a multi-currency environment and be adapted to the use of the euro; initiate discussions with software vendors to assess their ability to deliver a euro-compatible version at a reasonable cost; review customized software to evaluate its euro-compatibility and potential replacement needs.

The report concludes that "the changeover may provide companies with the opportunity to modernize the information technology architecture of the company. Instead of incurring many small costs in adapting the systems individually, it could prove cost-effective to review the current operating procedures, to simplify them, and then to implement a new system. This should allow the company to significantly improve its efficiency."

Evolving magazine
We said in the premier issue of Evolving Enterprise that we expected the magazine to evolve right along with the enterprises it covers, and so it has. This issue marks the debut of several new columns and departments, including "CEO Spotlight" and "Last Word". This issue also marks the end of my short but professionally rewarding stint as editor of the magazine.

Tom Inglesby will assume the editorial reins starting immediately. Inglesby, who has already contributed much to the early success of Evolving Enterprise through his role as executive editor, can be reached by e-mail ([email protected]