A dealer client of ours just received a letter from one of the major automotive computer companies who informed him that his system would not support the year 2000. The reason is that the majority of computers think we are fast approaching the year 1900. Most computer software keeps track of dates using a two-digit year, such as 6/30/97. On January 1, 2000, computers operating on unmodified software will read the date as January 1, 1900.
Experts estimate that 90% of computer software contains some type of date computation. In a dealership, nearly all software applications contain date sensitive data, such as aging functions for receivables, inventories, payables, etc. Additionally, most software applications for F & I calculations are also driven by date calculations. Most of these types of applications will be unusable unless corrected before the year 2000.
Software that is currently being supported by its manufacturer may be fixed in new releases. As a business owner, it will be in your best interest to determine that all of your currently supported software is made to be "century compliant." Software that is no longer supported by the manufacturer, or was written in-house, will require special attention.
The Gartner Group, a computer industry market research firm in Stamford, CT, has calculated that the cost of fixing all Year 2000 flaws will reach between $300 billion and $600 billion worldwide by the end of the decade.
On top of this, older personal computers have their own set of problems. The clocks of many IBM compatible 386 (and earlier) pcs have two-digit year registers. While the machine is running, the date can often be set correctly, but when the machine is turned off, the date will often reset to an incorrect date.
Remember that the deadline for fixing your software is approaching fast, less than 24 months remain to this immovable deadline. There will be a mass scramble to find qualified programmers (that aren't producing games) to fix the problems, so don't delay.
What are some things you should consider doing?
· Contact your software vendors and obtain binding assurances as to whether their software is century compliant.
· Review your software agreements to establish responsibility for the costs of fixing your software.
· Obtain century compliance warranties for all future software purchases.
· Consider the costs of modifying software at any dealership locations you might acquire in the future.
· Contact your insurance to see if a work interruption policy can cover this problem.
Hopefully, you and your computer system will sail smoothly into the next millennium, but if you have any questions please contact us.