Euro Essay Research Paper The Impact on

Euro Essay, Research Paper

The Impact on Information Systems

Throughout the changeover to the Euro our information systems department will play a crucial role in the process. Therefore, it is necessary to involve them at an early stage in order to avoid potential problems. As a result, the transition will provide us with a unique opportunity to screen systems and ultimately harmonize them. But at the same time, the changeover may entail a significant cost. However, at present it is difficult to assess the costs and the length of the adaptation of our information systems. And as a result, this will temporarily induce a competitive disadvantage vis-.-vis non-European companies (www.europa.eu.int: .Why a Single Currency..)

From the perspective of our information systems, the changeover to the Euro may be compared to that of learning a new language. Naturally, it impacts first and foremost the department that stores and transports information for all of the company stakeholders, including customers, suppliers, shareholders, lenders, tax authorities, and consumers. Consequently, it would be most beneficial for the information systems department to be closely associated with the preparation of all the other departments from the beginning of the process (.Why a Single Currency..).

The Euro will have practical implications within all departments of businesses and will modify the nature of relationships with stakeholders. Among these implications related to the information systems department, several opportunities will arise. These opportunities include reviewing information systems, improving efficiency, identifying external resources, and assessing electronic links with clients and suppliers (Tirbutt, 1998, p 11).

Information systems require upgrading on a regular basis due to either obsolescence or to new company needs. In order to be effective and operational both during and after the transition period to the Euro, information systems will have to be evaluated and if necessary, appropriately adapted. Bols-Wessanen currently operates with standard software packages that will require upgrades in order to cope with the Euro. Therefore, the changeover provides us with a dual opportunity to combine the need to upgrade existing systems while also adapting to the introduction of the Europe (www.europa.eu.int: .Why a Single Currency..).

In reviewing information systems, it is necessary for the information systems department to take six important steps. First, they must screen all software to assess whether each system can operate in a multi-currency environment and be adapted to the use of the Euro. Second, it is essential to initiate discussions with package vendors to assess their ability to provide a euro compatible version at a reasonable cost. Third, they must review the customized software to evaluate its Euro-compatibility and potential replacement needs. Fourth, the changeover requires that the information department reviews and lists all existing Information Technology projects. Fifth, it is necessary to evaluate the impact the Euro will have on current and planned projects. And finally, they must modify certain project plans and possibly select another package (.Why a Single Currency..).

The changeover will also provide Bols-Wessanen with an opportunity to improve efficiency by modernizing the Information Technology architecture of the company. Rather than incurring many small costs in adapting systems individually, it may prove cost effective to review the current operating procedures, to simplify them, and then to implement a new system. This requires that the information systems department reviews the total information technology budget, lists the opportunities for business reorganization, and finally identifies opportunities to replace obsolescent packages (.Why a Single Currency..)

Identifying external resources is an important part of the transition process to the Euro. Bols-Wessanen will rely on external resources to scan, review, and upgrade our systems. Therefore, it is important to check with the usual providers as soon as possible in order to make sure that they are preparing standard solutions for systems upgrades and also that they will be available at a reasonable cost. Since the Euro coincides with the millennium issue and both projects will be extremely time consuming for both programmers and analysts; it is likely that there will be a shortage of specialized information technology experts in the months just prior to 1999. In order to cope with this shortage, the information systems department should estimate the external resources which will be required, check the availability of usual providers, and assess whether anticipating the changeover could be a less costly alternative (.Why a Single Currency..)

An increasing number of companies, including ourselves have chosen to communicate with their major customers and suppliers through electronic links such as Electronic Data Interchange for orders and invoices (Jennings, 1998, pp 36-38). Therefore, coordination with these partners becomes crucial in the process of a smooth migration to the euro. As a result, the information systems department here at Bols-Wessanen should review the agreements subject to electronic transactions, agree on the changeover timing and method, and implement the changeover simultaneously.

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