Provides in-depth information about the complex conversions that will be incorporated into information systems, including coverage of key topics such as triangulation, avoiding rounding errors, the effect on price points, and converting historical data. Softcover. CD-ROM included. DLC: Euro--Data processing.
From the Inside Flap
"It must be considered that there is nothing more difficult to carry out, nor more doubtful of success, nor more dangerous to handle, than to initiate a new order of things." --Machiavelli, 1513 What Is This Book About?
This book was written to be the premier resource for understanding the impact that the changeover to the euro currency will have on information systems. Its purpose is to show that the scope of the project is truly as big as the organization involved. The book also aims to teach the importance of aligning an organization's euro strategy with its vision and mission rather than treating the changeover as a mere systems or accounting problem. The sheer number of issues raised is designed to help you communicate the required sense of urgency in tackling this project before your competitors do. There are no technical prerequisites for you as a reader; what you do need to bring is your knowledge of your own company's business methods, accounting procedures, calculations, and systems. You will derive the following benefits from reading the book:
You will understand the wide scope and impact of the euro project. You will be able to choose the right menu of approaches to the changeover. You will be able to disentangle the many myths from the facts. You will know more about it than most accountants and computer professionals. The Central Message of This Book
Planning the changeover of information systems to the euro is not just a matter of dealing with the technical code or data conversion. Many enterprises will face strategic decisions that will fundamentally affect the way they conduct their affairs. These can change the functionality that is expected from information systems. For this reason, the book's main contention is that the introduction of the euro is a problem of managing requirements. Every business process is affected by the euro changeover.
While the central theme of this book is the systems conversion, it emphasizes that that process must be guided by a business focus. Sufficient background on the business issues is provided to assist the information technology (IT) manager to understand the kind of requirements that may arise as other business areas get to grips with the euro. Since getting their fingers burned with Year 2000 (Y2K) issues, IT professionals have become more sensitive to problems that will arise in the future. They know there is little use in making a decision now on the basis of business managers' first opinions, as the managers may come back when the system is half-built saying, "Can we have a few changes?" This book is not a substitute for a proper business strategic planning guide; rather, it indicates what IT managers may anticipate. IT managers should find it useful to raise issues that others may not have thought about, but since the solutions are specific to each business, this book will give no prescriptions in this regard. Who Should Read This Book?
This section provides a quick guide to how people with specific responsibilities and agendas can get the best out of this book. Business Managers and Directors: Skim chapter 1; read chapters 2 and 3. Then convene the euro team and delegate the study of the rest of the book to them. IT Managers and Directors: Start with chapter 5 to get an overview of the system conversion options. Next, read the earlier chapters to find out how they fit into the bigger picture. Then select from the later chapters as they interest you.
Chief Accountants and Financial, Legal, and Taxation Advisers: Chapter 1 summarizes the legal regulations, further details of which are in the Euro-papers on the CD. Chapter 3 touches on finance, legal, and treasury operations.
Financial Auditors: Read chapter 4 to learn about the pitfalls that surround conversion calculations.
Euro Project Managers, Analysts, Consultants, and Vendors: No choice for you, I'm afraid-the whole book is for you.
Quality Managers and IT Auditors: Chapter 8 shows how good practices can help the project. Read chapter 4 about the pitfalls that surround conversion calculations and chapter 6 about system design choices. What Is the Euro?
The euro is the name for the new single currency for Europe. Eleven of the fifteen member countries of the European Union (EU) have become the first to adopt it, from 1999 to 2002. These eleven, variously termed the eurozone, euro area, euroland, and euro-11, are Austria, Belgium, Finland, France, Germany, Ireland, Italy, Luxembourg, Netherlands, Portugal, and Spain. Of the remaining four, Greece did not meet the fiscal criteria (see chapter 1), and Denmark, Sweden, and the UK will wait for a later date for accession for political reasons. During 1999 to 2001 the currency exists only in noncash (book accounting or written) format. Only in 2002 will the physical notes and coins appear. During the transition period up to 31 December, 2001, the national currency units (NCUs) of these member states (lira, Deutschmark, peseta, franc . . .) are "nondecimal" subdivisions of the euro. The euro itself is divided into 100 cents. Why the Euro Is Being Introduced "We must build a kind of United States of Europe." --Winston Churchill, 1946
European union is a political objective to ensure stability in a continent that was racked by two major wars this century. One phase in that long-term project is the achievement of a single market, a single economic area of similar weight to the USA. Economic and monetary union (EMU) is a natural development of that single market. The size of the eurozone economy is about 92 percent that of the US economy. The changeover to the euro represents a fundamental shift in the ecnomies of eleven countries and 289 million people. Who Is Affected by the Euro?
The euro affects every business and, ultimately, every individual in those countries. Through the ripple effects of trade, it therefore affects everyone they deal with worldwide. Very simply, if you do not wish to deal with people in the currency units they wish to use, you may lose business before 2002.
A rough timetable of the affected industries might look like this: January 1999 Financial services industry (banks and stock exchanges) prepared their core systems for the creation of the euro on 1 January, 1999. Consumer-facing systems will probably not change until 2001 or 2002. Large pan-European industrial companies will also announce their preparedness, although they may accept that many trading partners will continue to work in NCUs as they did in 1998. 2000-2001 Medium-size companies will start to change over, led by their larger partners. 2001 Small companies will make their final preparations. The European Commission (EC) considers small businesses to be those with less than fifty employees. This accounts for 90 percent of all businesses and 50 percent of employment in the EU. 2002 The final "wait and see" companies will have to come into line. These may include some national administrations that needed a long time to make the change. The Effect of the Euro on Information Systems (IS)
The euro affects the company, and the company's response will define what the IS and IT people need to do about it. At the very least, systems may have to be changed to remove obsolete references to national currency symbols. At the most, entirely new systems will be required.
Ultimately, every individual in the eurozone is affected as a member of the public and a user of cash. Chapter Outlines
Chapter 1 presents the history and essential legislation, the timetable, and definitions of terms.
Chapter 2 discusses general business issues, legal and accounting regulations, impact assessment frameworks, and checklists. It covers codes of practice, supply chain agreements, and ways to set up a companywide euro changeover project.
Chapter 3 discusses customer relations, marketing, dual pricing, and other issues.
Chapter 4 presents the calculation details and pitfalls in conversion, rounding, and triangulation. It is important to understand these; they are not that daunting. It also discusses the realistic implications of using current currency conversion practices that do not follow the strict regulations.
Chapter 5 discusses IT strategic changeover approaches, minimal or maximal, corresponding to conservative or aggressive business strategies. It discusses the best time for the internal changeover and the various meanings of the term "euro compliant."
Chapter 6 discusses the project management aspect of the changeover. It provides a series of checklists, a proposed schedule, and a sample project outline.
Chapter 7 describes the conflict with the Year 2000 project.
Chapter 8 discusses best practices, software quality issues for the euro, requirements management, and estimating.
Chapter 9 describes special considerations related to end-user computing, especially spreadsheets.
Chapter 10 provides a summary of the impact on US businesses. The euro is much more than "just another currency" for you!
Chapter 11 presents a possible changeover scenario for a small business. Appendix A is a contribution from John Gray about the euro symbol in various fonts.
Appendices B, C, D, and E provide extracts from national research reports and surveys and some case studies.
Appendix F lists package, tool, and service vendors.
Appendix G is a complete reprint of Euro-paper 4 as a reference for the exact legal framework.
Appendix H is a bibliography. The accompanying CD contains all the relevant EC documents and some demonstration software.
0201604825P04062001
See all Editorial Reviews
