Only 500 days left to e-day
17 augusti 2000
A "euro zone" company that cannot trade in euro on January 1, 2002 cannot legally trade. Yet, with the issuing of euro notes and coins close at hand, the majority of European companies are still unprepared for the advent of euro. In 500 days, when the deadline takes effect, not only do companies risk the inability to trade, it will be impossible for them to join the 300 million consumer euro zone e-commerce marketplace. But the time crunch doesn’t stop there. In July 2000, the European Commission issued a clear warning to the business community, " There is a significant risk that at the end of 2001 there will be bottle necks in terms of availability of it and accounting resources. Firms are running the risk of not being ready in time and of paying more for the same goods or services."
Now is the time to tackle euro, meet the deadline, and win new e-business, recommends Cap Gemini Ernst & Young. This will give companies the opportunity to drive the transformation process instead of being run over by it.
It’s a Matter of Time
All national monetary units cease to exist at midnight on December 31, 2001. This makes it legally impossible to change over to euro after January 1, 2002. Based on their experience, Cap Gemini Ernst & Young estimates that it takes between 12 and 18 months (or longer depending on testing and preparation required) for companies who have not yet started a euro transformation project to re-engineer business processes and it systems for the change over.
Cap Gemini Ernst & Young has found that many European companies face similar challenges in implementing an euro or e-commerce programme.
- Systems unable to operate and meet customer demands to trade in euro before the deadline.
- Obsolete technical architectures that prevent customer innovation in the e-business.
- Systems that are unable to accommodate new business opportunities.
Flip of a Coin
On one side of the coin, there is a serious concern: companies will be hard pressed to meet the euro deadline unless they start now. On the flip side, the rewards are tremendous. The euro zone will surpass the US in GDP and number of potential customers. Forrester, a leading analyst firm states, " The US currently represents nearly three-quarters of the world market in 2000. By 2003, the US will represent less than half the world market." Companies who take a combined approach to euro and e-commerce can make it to the profit line faster and more cost-effectively. An euro-capable system can serve as a backbone for a robust e-commerce solution, a critical success factor for European companies who want to flourish in the new millennium.