Australian organisations trading with Europe face tight European Monetary Union (EMU) transition deadlines but many are focusing on addressing the Millennium problem instead, PA Consulting Group warned today.
"Many Australian organisations are extremely ill-prepared for the EMU transition and don't yet understand the fantastic impact EMU will have on their business," said a spokesman for PA Consulting Group.
Major banks and insurers are among Australian organisations most affected by EMU. Although PA is aware of several that are already working to ensure EMU compliance, PA believes that the full impact had not yet been appreciated by Australian institutions.
According to the spokesman, the EMU changes are more than simply the introduction of a new single currency for member European nations.
"EMU is about the creation of a more integrated European economy which will bring with it increased cross-border competition and eventually, a harmonised monetary policy."
With its introduction on January 1, 1999, virtually every aspect of business could be affected by EMU.
"Organisations can't afford to let EMU take a back seat in the business agenda. EMU will impact customers, the market, competitors, processes and systems and will hit computer systems directly."
"Finally, senior management must recognise EMU as a serious business issue requiring immediate attention. The critical lesson most institutions learn from experience is that, above all, euro demands the sharpest project management skills possible."
"With a great deal of time, skills and expertise already tied up in fixing the Millennium Bug, a surprising number of organisations will need to look outside for assistance. It's imperative then that optimal use of resources is made."
Estimated to cost European industry up to $100 billion, PA warned businesses should budget at least 2 per cent of operating costs for IT compliance alone.
"In many ways, IT systems must be reviewed for Euro compliance in the same way as for Year 2000. If ignored, it could spell chaos for accounting, billing and payroll systems, just to name a few."
