September 22 1999 presentation of:
Y2K: One Quarter to Go and Counting
Panelists (bios below on page)
Bill Caver, President, Caver-Morehead Systems
Prof. Leon A. Kappelman, Associate Director, Center for Quality & Productivity,
Univ. of North Texas
Barry Kitt, Principal, The Pinnacle Fund
Norman Thompson, CIO and Executive VP, Southwest Securities
Moderator
Neil Kaden, Nortel Networks
The Y2K Problem
It is a problem which has reared its head with a variety of names over the last
several years - Millennium Bug, Y2K, The Year 2000 Problem - but, by any name, the problem
remains the same.
The defect is a very simple one, but one that is hard to repair -- it was made so
often. Back in the early 1960's computer programmers creating early computing applications
made a decision to minimize database storage usage by designating the year as a two-digit
function rather than a four-digit function.
For example, the year 1968 is recognized digitally by the code "68".
Clearly these programmers never imagined their programs would still be around 30 years
later! The problem becomes ugly when the date rolls over from "99" to
"00" on Saturday, January 1, 2000. Many older computers and embedded electronics
will recognize the date not as January 1, 2000, but instead as January 1, 1900.
Panel Overview
The news media is full of predictions about business disruptions, equipment shutdowns,
production delays and other types of malfunctions that might occur after the clock hits
midnight Dec. 31, 1999. Even if a business has given itself a Y2K checkup, what will be
the impact to that business if other institutions it does business with have
not made themselves Y2K-ready? Potential losses to business from Y2K could include delayed
deliveries of goods and services, lack of access to critical services and supplies, and
worse situations. On the other hand, possibly corporate America has already adequately
prepared, and the few remaining exceptions turn out to be easily repaired. No one knows
all the answers, and that is not very reassuring.
Where are we and what can we do to minimize the impact from non-Y2K compliance of other
institutions, assuming that our own business is already proven to be Y2K-ready? What steps
should we be taking once the new year begins to deal with incidents? What liability could
be incurred from Y2K problems? How can we offset the lack of compliance of suppliers,
customers, government, utilities, and other entities? How do we use the last three months
of 1999 to minimize the impact of Y2K, whatever it eventually brings?
A panel of experts discusses the global state of Y2K readiness, all all the issues that
will be raised in the last quarter of 1999.
The "Y2K problem"
In the past much computer hardware and software systems contained date sensitive
data and were programmed with two digits, instead of four, to identify any given year. To
make matters worse, the programmers did not envision their programs, being around past the
end of the century. This means that the some computer programs still in use today, were
programmed to only use dates in the 1900s. When input into these programs reaches the year
2000 they will interpret the number as 1900, rather than 2000. While most computer vendors
and corporations have been desperately working to correct these programs, not all systems
will be upgraded or replaced by the end of the year.
As a result, the computer or its controlled equipment could cease to function and be
incapable of resuming normal operation. Or, the computer and its controlled equipment
might continue to work, but produce erroneous information. Either scenario could be
disastrous for the computer user and the business manager.
Y2K LINKS
Post-Y2K:
Pre-Y2K:
Panel Bios
William F. Caver, Caver-Morehead Systems, Inc.
As a leader in computerized maintenance management systems for nearly 20 years, William
F. Caver's experience in predictive and reliability maintenance management ranks high in
the industry. His present position is as president of Caver-Morehead Systems, Inc., a
company specializing in maintenance management systems for large crisis-sensitive
facilities. His clients include statewide correctional facilities in several states,
airports, major facilities, and major high technology companies. Prior to co-founding
Caver Morehead, Mr. Caver was chief operating officer of HDR FM, a facility management
company. Mr. Caver founded the facilities management division of HDR, which was one of the
first companies to recognize the value of computerized maintenance management (CMMS) for
maintenance management. He was most recently with BMW of North America where he was in
charge of all corporate facilities in North America.
Mr. Caver is a sought-after speaker for technology and applications in CMMS and has
spoken at several major industry conventions. His articles appear in correctional
journals, and he is on the advisory board of Correctional Building News. He has both an
M.A. in Business Administration and a B.A. in Industrial Psychology and Economics from the
University of California at Los Angeles. He was a founding member chosen to participate in
the symposium on facility administration at the Massachusetts Institute of Technology
(MIT).
Neil Kaden, Nortel Networks
Neil Kaden is Senior Manager, Cogent Solutions in the Symposium Professional Services
group in Nortel Networks. In this position he is responsible for creating new call center
service offerings with strategic partners, and for the business SPS does with Nortel
internally. Previously, Neil built the SPS organization providing system integration
services and support for client/server and CTI-based call center solutions, as well as for
technical support to Nortel's many CTI strategic partners. In twenty-one years at Nortel
in product and R & D business units Neil has held a number of management positions
with several product groups which included marketing operations, sales fulfillment,
product architecture, strategic planning, Information Technology, new product development,
and customer support. He has helped launch several of Nortel's wireless and Personal
Communications Services (PCS) products, as well as it's switching products for the
long-distance and international markets. Neil is a founding member and Chairman of the
MIT Enterprise Forum of Dallas - Fort Worth, and has been a Director of InteliHome, Dallas. He holds a
BS Degree in Computer Science and Engineering from MIT, and an M.Sc. Degree from the
University of Toronto.
Leon A. Kappelman, University of North Texas
Leon A. Kappelman, Ph.D. is a research scientist, teacher, author, speaker, and
consultant dedicated to helping organizations better manage their information, systems,
and technology assets. Professor Kappelman brings a uniquely comprehensive perspective to
high-technology issues because as an educator his students include software developers,
information technology (I/T) managers, and I/T users from clerks to executives; and as a
consultant his clients and confidants include software manufacturers, I/T managers, as
well as executives, policy makers, and business owners.
Leon is an Associate Professor of Business Computer Information Systems at the
University of North Texas, Associate Director of the Center for Quality and Productivity,
and co-chair of the Society for Information Management's (SIM) Year 2000 Working Group. He
was recently appointed SIM's Senior Advisor for Issues Advocacy, is a founding members of
the 3-person steering committee of the UN and World Bank sponsored YES (Y2K Expert
Service) Volunteer Corps of the International Y2K Cooperation Center, he has testified
before the U.S. Congress on Y2K and high-tech related issues, and spoke at the United
Nations Y2K conference in June.
His professional expertise also includes the management of information assets,
information systems development and maintenance, management of change and technology
transfer, project management, and information systems assessment and evaluation. He has
published several books, over 70 articles, and his work has appeared in the Communications
of the ACM, MIS Quarterly, Journal of Management Information Systems, Decision Sciences
(forthcoming), Project Management Journal, InformationWeek, Computerworld, National
Productivity Review, Industrial Management, and the Journal of Systems Management. He
authored Information Systems for Managers (McGraw-Hill, 1993); co-edited Y2K Endgame
Strategies: Risk Management, Testing, and Contingency Planning (SIM International, 1999);
and edited Year 2000 Update: Key Issues and Research Reports (SIM International, 1998),
Year 2000 Problem: Strategies and Solutions from the Fortune 100 (International Thomson
Press, 1997), and Solving the Year 2000 Computer Date Problem: A Guide and Resource
Directory (SIM International, 1996).
Additional information about Professor Kappelman and his work can be found on his
website at http://www.coba.unt.edu/bcis/faculty/kappelma/
and he can be reached by email at kapp@unt.edu or telephone at 940 565 4698.
Barry M. Kitt, The Pinnacle Fund L. P
Mr. Barry M. Kitt founded The Pinnacle Fund L. P. in 1994 and currently serves as the
General Partner.
Upon graduating from California State University-Sacramento with a Bachelor of Science
degree in Finance in 1978, Kitt began working on the Chicago Board of Options Exchange
(CBOE). From February 1979 through June 1985 Kitt was a successful Market Maker, or
"trader," for his own account on the CBOE.
In November 1984, Kitt invested in a start-up telecommunications company in Chicago. In
July 1985, Kitt left the CBOE to devote 100% of his time to this rapidly growing
telecommunications firm. He served as Executive Vice President of Sales & Marketing,
as well as Corporate Secretary, until the company was sold in May of 1990 to a
Dallas-based publicly held national telecommunications company. Whereupon he moved to
Dallas and served as Vice President of Sales for the company that acquired his firm until
November 1993. In November 1993, Kitt left to devote all of his time to the start-up of
The Pinnacle Fund L. P.. The Pinnacle Fund L. P. is organized as an investment partnership
with Barry Kitt being the sole general partner.
Since the inception of The Pinnacle Fund on January 1, 1994 through July 1999 The Fund
has appreciated 286.46% (net of all fees and expenses). For the five years ended August
18, 1999 The Fund has averaged a 30% average annual return (net of all fees and expenses).
This five-year return ranks The Pinnacle Fund L. P. as the number one small-cap fund when
compared with the five-year performance of the 610 small-cap mutual funds tracked by
Bloomberg.*
W. Norman Thompson, Southwest Securities Group, Inc.
W. Norman Thompson is an Executive Vice President and the Chief Information Officer of
Southwest Securities Group, Inc. ("SWS"). SWS is a holding company that owns
Southwest Securities, Inc., one of the largest regional clearing firms in the nation;
Mydiscountbroker.com, a Gomez top 10-rated Internet discount broker dealer; the Westwood
Group, which includes a highly ranked family of mutual funds and a trust company, and
various other companies. Mr. Thompson is also President of SWS Technologies Corporation, a
wholly owned subsidiary offering Internet, network design and disaster recovery services.
Mr. Thompson joined Southwest in January 1995 after spending 13 years in Public Accounting
and Systems Consulting. He is a member of the Securities Industry Association's
("SIA") Technology Management Committee which along with other SIA technology
organizations oversees the Securities' Industry Y2K work. Mr. Thompson received a Bachelor
of Science degree in 1980 and a Master of Professional Accountancy in 1984 from Louisiana
Tech University.
