Released, 25 January 2000

The McCannics isurvey, January 2000


Yes, the Bug was Real

Sales and Prices


Chart

Contrary to the impression given by most press reports, the Millennium Bug actually had an effect on slightly more UK businesses than were expecting it. The vast majority of those which spent time and money on avoiding the Bug believe that this was well spent. These are the findings of the most recent McCannics isurvey of internet-connected businesses in the UK.

The chart (left) shows that in the previous survey, carried out in December 1999, some 16% of businesses said that they were expecting the Millennium Bug to have an effect on their business. There was a general belief amongst most businesses that the potential dangers of the Millennium Bug had been over-hyped in the run-up to the new Millennium. Most had made preparations for the Bug and were therefore relatively confident that there would not be a major impact on their business.

The current survey (carried out from 10th January 2000 onwards) reveals that slightly more, 20%, did in fact experience Millennium Bug problems. Although many problems reported were minor or indirect, this appears to have been in-line with what these businesses had been expecting.

The fact that actual Millennium Bug consequences were pretty much what was expected by respondents to this survey, rather than widespread disaster, has led to the hype being turned against itself. Press reports have implied that the Millennium Bug never posed any threat at all, that its effects have been negligible and that money spent on avoiding the bug has been wasted. This is certainly not the feeling of the majority of these businesses, which have actually had to deal with the Bug. One respondent noted:

Chart

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The chart (right) shows that only 15% of businesses taking part in this survey believe that the time and money they spent on avoiding the Millennium Bug was not well spent. Admittedly, some 20% of businesses didn't spend any time or money on preparing for the Bug and none of these subsequently experienced any Bug effects on their business. Even though all of the businesses in the survey use computers, different types of business had different levels of exposure to the Bug and it does not follow that all would have escaped if they had followed the example of those which ignored the Bug. Some 81% of those which did spend time or money on Millennium Bug avoidance (i.e. 65% of the whole sample) believe that it was well spent.

Many businesses taking part in the survey did find and correct situations which would have otherwise caused Millennium Bug problems. One respondent noted, for instance:

The view popular among respondents that the time and money spent on Millennium Bug avoidance was well spent was summarised by another thus:

More comments from respondents ...


Sales and Prices

Chart This survey reveals a further improvement in the economic performance of UK businesses over the past month. The proportion of respondents reporting their sales were higher in December 1999 than December 1998 was 54%. The proportion saying that their sales fell over the year to December was 22%, giving a balance (proportion reporting an increase minus proportion reporting a fall) of +32%, compared with +22% in the year to November 1999.

The improvement in sales, however, does not appear to be leading to much upward pressure on prices. Indeed, it appears that increased sales volumes may have been achieved in many cases by cutting prices. For the first time since this survey began, two and a half years ago, the number of firms reporting that their average selling prices were lower than one year ago exceeds the number who say that they have increased prices (see chart, left). Only 17% say that their prices in December 1999 were higher than in December 1998, while 22% say that they were lower.


Click here for downloadable figures


The twenty-ninth survey questionnaire was e-mailed on 10th January 2000. By 24th January, responses had been received from 54 businesses across the UK.


The isurvey has been operating on a pilot scale for over two years and is now ready to show its full potential. Organisations which would like to collaborate should contact McCannics. Individual UK-based businesses which would like to take part in the survey should send a blank e-mail to volunteer@isurvey.co.uk.

All individual replies will be kept strictly confidential. Only anonymised results will be published, and your e-mail address will not be passed on to any third party.


More details of the sample were included in the first survey.

E-mail us with comments, queries or suggestions for future topical questions at: isurvey@mccannics.co.uk


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