Among the coverage devoted to the introduction of European Monetary Union, one fact stands alone. The euro will transform the way business is conducted in Ireland and across the other ten countries in the euro zone.
It follows that, like the ever vigilant boy scout, business people must "be prepared". Not only that, they must ensure that they understand the specific and wide ranging effects the new currency will have on their own enterprise.
The level of euro readiness in Irish firms is varied but Ms Angela Kennedy, business director of Megazyme International Ireland, was conscious that an early start with regard to EMU would mean gaining competitive advantage. In 1996, she moved the family-owned biotechnology business to Ireland from Australia and began researching how EMU was likely to impact on the firm's operations.
With 97 per cent of it's products exported to 40 countries, any impact would be significant. Detailed planning activities began as early as January 1997.
Ms Kennedy began by contacting the EMU Business Awareness Campaign, the Small Firms Association and the company's bank, all of who were spearheading campaigns to heighten awareness of the EMU.
There were two aspects to this kind of research. The first involved examining the likely strategic implications of EMU, and the second concerned the operational changes that would be required to cope with these changes.
It was important for senior management at Megazyme to understand that the changes were not just driven by financial, accounting or IT considerations. With this in mind, the sales and marketing sections were heavily involved in the detailed planning.
Strategically, the changeover to would provide opportunities that Megazyme could capitalise on, while at the same time minimising any potential risks.
"With the introduction of the euro it will be simpler and less risky for Megazyme to conduct business with suppliers and customers in other participating countries. EMU will allow us to price products into Europe in local currency and will, therefore, lead to significant reduction in costs relating to foreign exchange transactions.
"Hedging will become unnecessary and price lists and catalogues will be printed solely in euro," said Ms Kennedy.
From an operational point of view, a new accountancy system was needed that could cope with the triangulation method of currency conversion. Their new system, Exchequer Enterprise, was installed early last year.
"At this stage we have all of our products converted into euro pricing and we are invoicing, operating and selling in euros," she said. Their website (megazyme.com) which accounts for 35-40 per cent of sales, is also being updated to make it euro compliant.
Megazyme is an example of a company that has looked ahead productively in advance of the euro. Not everyone has followed this path. The "no compulsion, no prohibition" principal that underpins the three year transition period before the final introduction of the euro in 2002 means that, legally, companies are not yet obliged to begin converting. However, experts agree that if a company has not adapted or changed its information systems at the very least by December 31st, 2001, there will be serious concerns about its ability to remain viable.
"In some companies training and preparation for the euro is happening but not enough in order for it to be an entirely smooth transition," said Mr Pat Delaney of the Small Firms Association.
Mr Ray Gray, head of EMU services with Price Waterhouse Coopers, said that at this stage companies should have appointed a member of senior management to carry out a "robust assessment" of both the strategic and operational aspects of the euro for their business.
In addition, he said, companies should have already taken outside advice on how to prepare. The booklet Strategic Issues for Companies Arising From the Introduction of the Euro, produced by the Institute of Chartered Accountants in Ireland puts it simply. "There is no risk and low costs involved in knowing about the facts and understanding the implications of the euro and then reviewing the impact on your company."
Whether they are a massive multinational or a small or medium enterprise, the introduction of the euro means that companies will need to re-examine what they produce, the way they deliver products and how much they cost.
Among other likely developments, the euro will lead to increased competition due to more transparent pricing, greater ease of cross-border trading, reduced labour costs and the elimination of exchange rate uncertainty.
The editor of Aer Lingus's in-flight magazine Cara, Mr Vincent De Veau, writing in the current issue said that "the EMU project is the largest cross-organisational business/IT programme Aer Lingus has undertaken to date". Since early 1997 the organisation has been preparing for what it calls "eday", and all staff that deal directly with customers are already conversant with the euro. Payments in euro can now be accepted by credit card or euro travellers cheque.
For those who have not become Euro ready, Mr Gray has this advice. "They should very quickly put in place someone at senior level, preferably from a communications or marketing stand point, to examine the issues involved," he said. Accountants cannot tell companies exactly what changes to implement, he added, but they provide an enabling role so that senior management can come to their own conclusions.
At present, according to Mr DeVeau, it is difficult to imagine us blithley referring to punts and pennies as old money but "before you know it we will be". The question is, which Irish companies will be ready?
Next week Business 2000 explores the role of County Enterprise Boards
