High Tech Consortium Created to Address Y2K Risks

Strategic Insights -

The High Tech Consortium (HTC), an organization composed of 27 of the world's most influential high-technology companies, has been formed to collectively address supply-chain network and global infrastructure risks associated with the Year 2000 (Y2K) issue. The HTC aims to pool resources and leverage shared information about the Y2K readiness of suppliers, providing a framework for companies to assess, report, and share suppliers' level of Y2K readiness. The consortium offers fee-based services, including the Data Sharing Service, which provides a secure, web-accessible database for members to monitor their suppliers' Y2K status and track improvements.

Key Takeaways:

  • The High Tech Consortium is a voluntary, non-profit organization comprising 27 high-technology companies, including Cisco Systems, Dell Computer, Motorola, Solectron Corporation, and Sun Microsystems.
  • The HTC's goal is to reduce the impact of Y2K issues on the high-tech industry by pooling resources and leveraging shared information about suppliers' Y2K readiness.
  • Members of the HTC can access exclusive fee-based services, including the Data Sharing Service, a secure web-accessible database that provides real-time information on suppliers' Y2K status.
  • Membership benefits also include standardized Y2K assessment and contingency planning tools, reduced costs of assessing suppliers and being assessed by customers, and access to the latest research and shared practices.
  • The HTC's Limited Liability Corporation status protects members from unforeseen Y2K disruptions among assessed suppliers.
  • The consortium's assessment process allows member companies to identify alternate sources if key suppliers are not prepared for Y2K disruptions.
  • The HTC members share between 20 and 50 percent of their suppliers with other members, as per a study by PricewaterhouseCoopers of 3,000 companies that supply 12 member companies.

Statistics:

  • 27 high technology companies are part of the High Tech Consortium.
  • The HTC has six founding members: Cisco Systems and Solectron Corporation.
  • The HTC has standardized Y2K assessment and contingency planning tools.
  • The Data Sharing Service is a secure, web-accessible database that tracks the Y2K status of suppliers.
  • The data sharing service costs US$15,000 for new HTC members.
  • Members of the HTC can access the Data Sharing Service, which allows them to track the Y2K status of their suppliers and stay up-to-date with the latest practices in Y2K compliance.
  • A PricewaterhouseCoopers study of 3,000 companies that supply 12 member companies found that each member shared between 20 and 50 percent of its suppliers with other members.

Sources:

  • High Tech Consortium (HTC) (http://www.hightech2000.com)
  • PR Newswire (June 22)
  • PricewaterhouseCoopers (study of 3,000 companies that supply 12 member companies)