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ICL, Pathway
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September 1998
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ICL Pathway Programme Monthly Report Ref: PA/REP/030
Version: 1.0
Date: 22/10/98
Document Title: Pathway Monthly Report - September 1998
Associated Documents:
Reference Vers Date Title Source
(1) PM/PRO/002 1.0 26/09/96 Pathway Programme - Project
Planning, Reporting and Control
Approval Authorities:
Name Position Signature Date
J. H. Bennett Managing Director
Page 1 of 30
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ICL Pathway Monthly Report
Contents:
= . . ;
ae Managing Director’s Summary
=
es Systems Report
= Commercial & Financial Report
Customer Requirements Report
ff,
Customer Service Report
= Quality & Risk Report
7) Business Development Report
International Sales Report
10
hin!
Organisation & Personnel Report
tim
(mp
Post Office Client Report
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ICL Pathway Managing Director’s Monthly Report Ref: -PA/REP/030
Version: 1.0
Date: 22/10/98
Managing Director’s Summary
PROGRAMME PROGRESS
° Model Office Rehearsal'2 (MOR2) completed on time-successfully as did
the first cycle of End to End (E2E1) testing.
e Work-was completed to prepare for MOR3 and the associated End to End
(E2E2) cycle to begin on 19 October.
e A decision has been made and agreed with POCL to build a regression
testing period into the programme plan between completion of MOR3 and
MOT. This will allow the first components of both MOT and final E2E to
completé by Christmas, with the remaining components to be completed
by end January.
. Considerable work has been undertaken between all the parties (BA,
POCL, ICL Pathway) to create a shared resultant implementation plan.
Work continues to deliver this plan, which will enable National Roll-out
to begin in the July 1999 to October 1999 window.
° The Acceptance process has commenced with Acceptance testing being run
within trial passes of system test. OBCS completed on 16 October, BPS
and APS started on 16 October and 19 October respectively.
e The implementation work in preparation for National Roll-out is
progressing with initial site surveys continuing to plan. We have now
completed re-surveys in over 500 offices which require them, and
completed modifications in 53 offices.
e Release 1c service performance in September was excellent with all key
measures being met or exceeded. Two significant achievements for the
month were:-
. Every single transaction performed since the start of IGL has now
been reconciled.
° The final software fixes to resolve incomplete transactions have been
applied and no incidents due system faults have occurred since.
HM TREASURY REVIEW
e The review with the HM Treasury Advisor completed as planned on 16
October, with good progress-on the outstanding programme issue.
e The whole issue on Acceptance has been flagged as the most critical issue,
and still needs resolution.
e There remains a substantial gap between the public sector bodies and ICL
Pathway, and this has been reported to the Treasury officials and
Ministers.
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ICL Pathway Managing Director's Monthly Report Ref: PA/REP/030
Version: 1.0
Date: 22/10/98
. Discussions continue to explore more ways forward at both official and
ministerial level.
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ICL Pathway Systems Monthly Report Ref: PA/REP/030
Version: 1.0
Date: 22/10/98
Systems Report
MONTHLY SUMMARY
° The second phase of the model office testing (MOR#2) commenced 2
days behind schedule due to an Energis‘network fault. An unauthorised
patch had been installed in one of their exchanges. A full investigation was
commissioned to identify what needed to be done to ensure that this did
not occur in the future. Even so, this exercise was seen to be a success by
all parties. The third phase (MOR#3) is due to start on’the 19" October
1998.
e The first phase of the parallel test activity designed to exercise the more
complex business scenarios known as End to End Testing (E2E) completed
successfully on the 22" September. The second cycle is planned to
commence 19" October 1998.
© POCL are finally getting to grips with the end to end procedures and
disciplines required to manage their Reference Data. The progress over the
past few weeks has been encouraging and if maintained, will ensure we
develop a workable process...
. An EPOSS usability study commenced in Pangbourne and Welwyn Garden
City 7" October 1998 and is planned to take 4 weeks. The Post Office
staff have been enthusiastic and co-operative providing invaluable feedback
on operability, training and procedures on a daily basis. They have found
the system intuitive and easy to use and. we have not encountered any
major problems. A new updated version of the counter software will be
installed before the end of the exercise. This will address many of the
issues raised by the sub-postmasters. POCL are considering whether a
similar exercise should be launched in each geographical region before
national roll-out.
e Morale and motivation in the systems directorate remains high in spite of
the formidable challenges facing everyone and the constant rumours
surrounding the programme. The majority of staff.continue to work long
hours and demonstrate considerable commitment.
. The relationship with Horizon and POCL is improving every day. Issues
are being jointly resolved on a regular basis and there is a growing
willingness to work closely together to ensure that good progress is
maintained. The same cannot be said about BA but the relationship can be
described as tense but professional.
e Progress on the design of NR2+ is progressing well on all-fronts. The
schedule for the development-of the Key Management System has been
agreed and there are currently no major issues: outstanding.
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ICL Pathway Systems Monthly Report Vi Ref: PA'REF/O30
ersion: 1,
Date: 22/10/98
PROGRESS
e The design team continues with the production of the contractual
documentation. The PPD’s remain on target and the Style Guide is being
revamped to a revised schedule. Maintenance of the counter menu
hierarchy document is a potential issue and discussion have taken place to
limit the amount of effort involved. Together with the architects, the
designers have introduced several major changes including logical campus
network routers and a new correspondence server configuration.
e The huge effort by everyone in the team to improve the processes and
reduce the volume of PinICL’s in the system has been partially successful.
The EPOSS task force almost achieved their objectives and were kept
together for a further period in an attempt to clear the remaining
problems. These.mainly revolve around the reporting suite. Work is now
being undertaken to identify those defects which cannot be. fixed in time,
to produce workarounds and convince the sponsors that the business
impact is minimal
e The PinICL clearance exercise places-the Technical Integration teams
under severe pressure because they are responsible for installing each new
software baseline on all the test rigs and applying the constant stream of
incremental fixes against very tight deadlines. Much of their work has been
completed in accordance with the planned dates.
° The testing teams continue to work hard completing the system regression
tests, the business integration tests, Year 2000 compliance tests, the
technical tests (i.e. performance, resilience & recovery, security and
systems management) tests, data centre and counter migration tests and
supporting the end to end and model office tests. There has been some
slippage but they are generally keeping to schedule under very difficult
circumstances at this critical stage of the programme.
CURRENT CRITICAL PROBLEMS
e The elapsed time available between the model office test runs is
insufficient to retest the large number of fixes which have been-applied to
the software baseline. This will result in-'an unstable system being.used for
the critical model office testing phase. Options are being evaluated which
will make more test rigs available so that we can overcome this problem.
e Several software problems which cannot be rectified in the time available
are now being submitted to the sponsors for business impact evaluation. If
they consider it essential to fix a large proportion of these defects it could
impact the current delivery schedule.
e The Audit functionality has been delivered late and has put the testing and
acceptance schedules under enormous pressure. Everything is being done
to alleviate some of the impact but it has to be managed very carefully.
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ICL Pathway Systems Monthly Report y Ref: PA/REP/030
‘ersion: 1.0
Date: 22/10/98
ISSUES
e = We are still struggling to get POCL to agree that the EPOSS Product will
meet their operational requirement. There is no question that it will be
compliant with the contractual requirement and therefore pass acceptance
but operational suitability is another issue.
° The-EPOSS Usability Trial-has confirmed our view that the current
training and support processes will not be sufficient to enable the sub-
postmasters to confidently operate the retail.aspects of the system. This is
not-due to the inadequacy of the training material or the approach to
introduce automation but more to do with the introduction of many new
business procedures for the sub-post office staff.
° We must ensure that all the-system test ‘final pass’ stages are complete
before model office test commences. This is essential to support the
acceptance process but is proving challenging and resource consuming in
terms of people and rigs.
° The interface management system (FTMS) utilised for data transfer
between most of our suppliers and customers is a source of concern. Too
many products have not been correctly configured to use the framework
imposed. =
* We continue to work hard to ensure that the delivery and testing schedules “
for Pentium 2 and the flat screens fit neatly with the model office and roll-
out plans.. Both have been proven to meet the technical requirement but .
obtaining sufficient quantity in sufficient time still poses a risk. °
¢ We have still to prove the new message store replication mechanism when
PC’s are replaced in outlets. The current approach takes too long and is
unworkable.
. Implementing essential changes to the communications network is
destabilising the various ‘testing environments. This is subject to close
management scrutiny to minimise the impact.
° 3” party supplier security testing is receiving close attention. Plans have
been agreed but progress is proving difficult to ascertain.
¢ Some of the Cathode Ray Tube (CRT) monitors are showing signs of
deterioration and further investigation has uncovered serious
manufacturing defects. Discussions are taking place with the supplier in
question, in the meantime we continue to persuade POCL to install flat
screens in all locations.
° The disaster recovery strategy for the Data Warehouse is still to be proven.
It involves the use of a Sequent SE70 with limited disc capacity to handle
the work normally processed by a large Sequent NUMA-Q.
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ICL Pathway Systems Monthly Report Ref: PA/REP/030
Version: 1.0
Date: 22/10/98
COSTS
« The budgets for the systems directorate ‘continue to be refined and
regularly reviewed but-are now being used to monitor expenditure ona
monthly basis.
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ICL Pathway Commercial & Finance Monthly Report
Ref:
Version:
Date:
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PA/REP/030
1.0
22/10/98
Commercial & Financial Report
COSTS
. The Controller’s report follows.
SEPTEMBER ACTUALS 1998
KEY NUMBERS (£000’S)
Carandar Voor 1855
‘GaFeast.] Sop Feast I Varance
Trading!Coste: Revenue 10 10
Project Costs bore Capitaisations 153 1070 o7 oa 9a? os
Dacaved PBT Loss 18 19 ox o7 06 5)
Caan Business Opersting Cast Flow cea} ot6) 03 cosa} oso} 03)
December 1998 soptember 1999
Oa Feast [Sep Feast I Vanance: Oci Feast I Sep Feasi [Variance
Balance Sheet Project WP wz] 1977 os zosI 2013 07
Not Fined Assets «36 428 oa) Es S74 07)
Tota! Sorowings wet} 58 2] sita] site (09)
Hondcount: Permanent 20 zr 3] 270 285 «@]
Non-Pormanent (Ta/Terps) “M4 1“ : 15 6 :
(Momo) Freelancers tor ICL. IT Contr Services 199 92 fo) a2 “a 2
There hes been very Ita movementin key numbers between the Soptombor and October Forecasts
Pivotal dscussions on correc structures and fing ae curenityorgoin, but apart ram th increased professional fs that normally accompany
Siuntons, the fracast nas not atlemplod Io atipate tha impact af the avertual autcome
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ICL Pathway Commercial & Finance Monthly Report Ref: PA/REP/030
Version: 1.0
Date: 22/10/98
SEPTEMBER ACTUALS 1998
PROJECT COST ANALYSIS (£000’S)
Tape ——Catendar Your 1958 Tanuayy- Sepiomber 1559
Adual Od Feast [ Sep Feast [ Vanance Oa Feast 7 Sep Feast [ Variance
05] Revenue 10 10 - 36 38 .
142] Diract Costot Sales 195 196 os 173 173 -
T3.7]] Gross Margin (Detet) Ts5)I (186) O4 W737) 5
6.1] Oper Labour - Own Stat es a9 o4 98 97 ro
04 Travel & Subsistence os 06 - o7 07 -
135 ICL IT Convector Services Freelancers 135, 201 os 165 170 ry
4 ICL Subcorwrac 163 159 oa) 8s 85 :
70 Other Sudcontracts 95 100 oa 35 34 co
97 Depraciation 136 135 oi 143 vat ‘a2
04 Mareting 08 08 02 54 54 :
13 Professional 26 21 03) 4 14 :
7 Promises Costs 24 24 22 22 :
06 Exchange Losses oa 40 oz 4a 16 :
os thor opex 1 "1 - rt rr) :
BIS] Groés Project Opex 755 755 oS Zk] 55 oF
8.1] Interest costs 19 19 : 155 155 :
Costs botore Copiaisasions #) oro oF Em Ea oF
Dectered PBT Losses Ts 3 oT oF ay w7
Capitalsed into Project WIP 304s 1051 08 a 937 03
‘The October Forecast has been prepared using the same basic timing assumgtions as the September Foracast and also assuming that he structure
ofthe company remains unchanged. Movements n project casts are rested to axa allowances fr financing advice (Hambros), ost by reduced
{roetancer casts - following detalles review of rates wed - and deferral of markaung costs from the cuent yaw.
Sep 1988 Permanent Headcount December 1998 yeptember 1999
Agua GaFeast I Sep Feast Varance] [OciFeast I Sep Feast [Variance
33] systems a 3 1 2 6s 2
444] enplementation st 2 6) 59 54 6]
51 Customer Service LJ iJ cD) 67 6 1)
52I ANother departments 6 8 2 82 2 :
180] Totals - Permanent Staff 30 Zr o) 20 2 ro)
December 155 Sapiombar 1559
‘Aciuel —] _Non-Permanent Headcount Oa Feast I Sop Feast I Varnes ‘Oa Feat I Sop Feast I Variance
10] industrial Trainees " " - 2 2
3) Temporary Statt 3 3 : 3 3 :
73] Totals -Non-permanent stat reported to ICL wt 4 2 3 75 :
Freolancera sourced via ICL IT Contr Services
127 I Systems 135 138 1 104 108 1
3} Implementation 5 5 : 4 4 :
6I customer Servce ? 7 : 7 7 :
33] Al other departments % “ tc) 27 8 1
163 135 192 i) Taz 144 2
TZ] Totals -Non-Permanents used by Pathway 267 26 Ty] 17 ea z
(OTR) ora totale I A a Wy RT ra]
The only major change from he previous forecast is the inclusion of extra Rotlout Helpdesk operators i the implementation area
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ICL Pathway Commercial & Finance Monthly Report Ref: PA/REP/030
Version: 1.0
Date: 22/10/98
CASH FLOW (£000’S)
TSS Carondar Year 1358 January = September 1055
‘Aaual —] * taftowan Outfiows) Cares I SepFean I varaca I [OdPcat I Sep Feat I vanonce
(7.3) Net Project Costs - captalsad into WIP 04s 1052] o7 wal (992) 03
(1.4)] Project cons taken sroight fo P&L (1a) 9] on 7} os] on
97I Depreciation 138 ta 02 43 14 02
(2.4) “Movement in otnor Working Capita tea 2s) 27) 01 32 34 (02)
(12.4 ‘Fuied Asset Additions os} aos} oa] 27] oa]
TSB] Business Operating Cash Ovttow TEDL Tes) oF TSH] 8H
Opening Net Borrowings 895) Co 206.7 206.4 oF
Chong Net Borounge Lisi] os os) [sala] 0]
BALANCE SHEETS (£000'S)
ap TE Decanter TS pra TO
Aetual 7 OaFGaR I Sop Feat I Womer I I Oarcast I Sop Foam :
309] Not Fixed Assets as] ae] aas ser] sr 5
166.1 I Project Wore in Progress 1972] x77] 759 zoe} 291 2
(17,.3)] Other Working Capital a7.ay (17.0) (12.3)] (20.3) (20.4) ~
a7 Total Zar) asa] aT wea] 3785
200] shore captat 200 zo] 200 zo] 200]
{2.0 Rotanad Earings 24] as} al ey Bay
= _I Group Pooied Boromngs 61 soI 997 96 96
3697 I Extemat Losns zo0I 200] sea wore] sors
FEET] Total Borowngs 206.1 208.9] 187.5 3a] ake
1877 Total aT = wea, wes
Borrowings, bath al 1998 calondar year end and at September 1999 are virtually unchanged trom last time.
A small increase in fixed assets additions is offset by lower project costs and working capital levels. Extra finance facities in 1999 nave again been essumed
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ICL Pathway Customer Requirements Monthly Report Ref: PA/REP/030
Version: 1.0
Date: 22/10/98
Customer Requirements Report
MONTHLY SUMMARY
° Of the 23 Acceptance Specifications 16 are now being treated as approved.
Of the remaining seven, five are in endgame. The two problem ones are
EPOSS, where we have been asked to expect to resolve the specification in
a single meeting, and Rollout, where there seems to have been a
management failure within POCL to address the area seriously until now.
e — OBCS Systems Test for Acceptance has been completed successfully.
e The DSS appears to have given up the war of comment-response.attrition
and is seeking ways to minimise their involvement in acceptance
invigilation. Both customers are conceding ground on issues. It feels as if
they don’t want to be accused any longer of obstructive behaviour.
. We continue to maintain constant pressure on DSS/POCL through status
reports and action lists.
DETAILED PLAN ACTIVITIES
NEW RELEASE 2
° We have continued to perform analysis on the flow of PinICLs allocated to
us. At present there are 17 PinICLs on the NR2 Known Problem Register,
one medium severity. The wholesale reclassification of the outstanding
PinICL backlog has meant that a further 82 have just been transferred to
us for analysis and potential inclusion in the NR2 KPR.
° John P has contributed to the review of the EPOSS Functional Description,
resolved the rules for reporting BES transactions on the Cash Account and
is engaged in heading off rules for Reference Data maintenance that would
lead to vast amounts of null data being transferred.
° Dave J and John C now have the Security area under control. The general
actions list is small, with no significant issues remaining and the main
activity che resolution of outstanding PinICLs.
e The Security PinICLs were reviewed and generally agreed with Horizon.
Most of the high severity ones:should be cleared on retest using 9F
increment 5 to which TSC are-currently upgrading. Currently there are
127 security PinICLs open, of which 54 were raised during September.
The clearance of failed tests in Security has also dramatically improved
with the overall pass rate up to almost 70%. Many PinICLs are still being
raised but the introduction of the new build will much improve the
position.
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Date: 22/10/98
. The Horizon Fraud & Security Group has now virtually disappeared and
Dave J is acting in effectas continuity for Horizon. Security is clearly of
much reduced importance within their organisation, but this might well
make Acceptance more difficult as new people have to be brought up to
speed.
¢ Anew version of the Access Control Policy was output. Although this
achieved a major overhaul of the document it does not carry the definition
beyond NR2.
RELEASE NEW 2+
. The 10th joint CAPS/Horizon/Pathway review transferred attention to
NR2+ and on line enquiries.
° The DIDVR (interface definition) for “Post Nile 2” (Pathway Release 2+)
was received,.but rejected because no Change Requests had been received
for the new functionality introduced.
e CAPS have prepared the DIDVR for a CAPS Release 3.5 and this is
expected shortly. It will require a CR to change Schedule C3.
CARS
° There was no CARs activity.
A2AS
e — Areplacement CCN 234 is required to clear three of the ‘Top 50’ A2As.
The approval of the CMS Acceptance specification will clear another.
Others require the Performance programme to be established and design
documents to be written.
CCNS / CRS / CPS
e CCNs were issued for HAPS Disaster Recovery, an updated APS Client
baseline, APS Token Verification Service and revisions to the SADD.
e There are five CCNs with balls in our court.
ACCEPTANCE
¢ The war of attrition over comments continued with the comment-response
interval getting shorter, like a comic game of tennis.
e The customers are now conceding points in many areas. DSS appears to
have given up the fight. POCL still has provided nothing on EPOSS, and
in one area (Rollout). has gone completely out.of control seeking changes
in the original contract.
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ICL Pathway Customer Requirements Monthly Report Ref: PA/REP/030
Version: 1.0
Date: 22/10/98
e The OBCS System Test Final Pass, which forms part of its Acceptance, has
now been completed. Dave C produced the documentation to accompany
the start of trials. But POCL/Horizon had not adequately prepared for
invigilating, so the train has left the station without them.
. AP starts its Acceptance Trials 18/10.
¢ — POCL Infrastructure: All but one of the issues have been with POCL for a
month.
e John P has turned around the Reference Data comments and output new
versions of the Acceptance Specifications for Reference Data and TIP.
° Tony H has completed revised specifications for PAS CMS and DSS
interface responding to all late comments.
. Dave H has revised BES for all late comments.
e John D revised the Audit and Reconciliation specifications.
e ~~ We have notified Horizon and DSS that 16 of the 23 Acceptance
specifications are now being treated as approved.
° The Security and Sérvice.Levels specifications were notified as
recommended although there has been no documentary evidence of this
supplied. The Security specification has two caveats: the production of
missing third party HLTPs by Girobank and Outsourcing (two of the three
are now available in draft), and the reserved right, which they always had,
to raise incidents on penetration testing, which sits outside the Acceptance
envelope.
. It is difficult to pin down baseline versions of the HLTPs for Integrity (part 2
of Security). We have established when tests within Systems Management, E
Integrity and Performance will be run in a manner that supports
Acceptance.
e The Acceptance Test documentation for Performance has been established.
. From the standpoint of the customer’s legal representation there are two
issues:
° the level of Requirements used for Criteria - here the acceptable
party line is.that any acceptance incidents raised can be cleared as
benign if the texts used and the solution accepted do not match, but
the solution is what is wanted; and
e the argument over whether the operational audit trail should.be kept
for 18 months or six years — here I have maintained a hard line that it
is for 18 months; there.is the possibility that they might want to buy
the old audit trail
© The Acceptance Criteria Database was maintained.
NEW BUSINESS SUPPORT
° EFTPOS: The workshops start week of 12/10,
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Date: 22/10/98
. APS: Discussions have started with POCL to introduce a new smart card
for gas customers - the Simple Payment Module.
e Horizon has started up a new group on this, tracking our BRDs.
OTHER TEAM ACTIVITIES
e We provided four attendees at the Engineering Conference.
CURRENT CRITICAL PROBLEMS
° None.
ISSUES
e Technical & Security Testing (Bracknell): Several of the tests which are
cited in Acceptance Specifications from HLTPs may not now be included
in the “Regression Test” phase, which is the equivalent of the Final Pass
for this area of testing, because of lack of time. At present there are no
signed off test reports for tests already run that can be used as a substitute.
Further some of the OPS Security tests that.should be present may not be
run. A summary document listing the Acceptance needs has been
produced for TSC. Clearly finishing on time but omitting the work
needed for Acceptance is not a solution.
¢ — We need all the NR2 HLTPs baselined and the BIT03 HLTP in place as
soon as possible.
e The provision of support for Audit Acceptance within BIT is dangerously
late. There will, in effect, be‘no rehearsal.
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ICL Pathway Customer Service Monthly Report Ref: PA/REP/030
Version: 1.0
Date: 22/10/98
Customer Service Report
MONTHLY SUMMARY
e — Service performance-in Septembér was excellent with all key service
performance measures being met or exceeded.
e The BSU has once again excelled and can proudly claim to have been able
to achieve the reconciliation of every single transaction performed since
IGL.
e The number of.incomplete transactions has fallen and further reductions
may be expected next month as software fixes come. into effect.
RELEASE 1 VITAL STATISTICS
° Installed base: 204 Post Offices, 334 counters
° Number of Cards issued 44,187
° Number of Active Cards in use 34,897
° Total number of BES Counter Transactions 584,433
° BES Counter Transactions in September 78,830
e Total value of Benefit Payments received £18.7m
° Value of Benefit Payments received in September £2.8m
e Total value of Benefit Encashments made £17.6m
e Value of Benefit Encashments in September £2.4m
e Total number of OBCS Transactions 5.4m
. Number of books impounded 15,864
¢ Potential fraud avoided > £2.1m
PROGRESS
OPERATIONS
e One Sequent outage gave cause for concern but fortunately did not affect
the live service. This incident is not related to previous problems. A full
report is being prepared.
¢ Further problems with the Energis network were discovered. Their change
management-processes was demonstrably inadequate when an unapproved
patch was applied to their systems by Nortel. We weré.extremely lucky on
this occasion that their was minimal impact on the live service but it
contributed to a two days-delay in MOR. Energis has responded well and
has considerably strengthened its change control processes.
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Version: 1.0
Date: 22/10/98
e — Acompelling argument for ICL Pathway to establish a third data centre is
becoming clear. Martin Riddell is working up the plans and processes for
data centre contingency operation and reviewing our longer term needs for
a permanent Model Office environment for new product testing and
migration. ICL Outsourcing is to conduct a full study and cost evaluation.
BUSINESS SUPPORT
e The BSU has had an outstanding month. They have exceeded all of their
SLA performance targets.and finally BA has admitted that it was their error
that had previously prevented a total reconciliation of BES transactions.
Every single transaction, since IGL began, has now been successfully
reconciled with BA and POCL.
e The ‘incomplete transactions’ fixes have been successfully tested and will
be applied in early October.
BA & POCL SERVICES
e A further download of Income Support data resulted in 400 replacement
cards being ordered and sent out to post offices.
e The ‘delayed roll-out’ of R1€ cards to customers was completed with only
6,300 of BA’s forecast 15,000 new beneficiaries‘actually becoming card-
enabled. The shortfall was due to BA over-estimating the volume of Child
Benefit customers for the R1C Post Offices. Paul Hanson advised that he
will ensure closer scrutiny is given to the roll-out to the additional 100
Post Offices in Live Trial.
° The pressure on HSH to improve upon the 5 and 10 minute call
answering SLAs has been intensified. The dip in July’s performance has
been rectified but both SLAs remain well below Minimum Acceptable
Level.
CUSTOMER SATISFACTION
° Progress on the Management Care Visit Programme is inadequate. Only
23 visits have been completed with a further 28 scheduled. ‘This still
leaves 49 visits to be arranged.
° Results so far remain positive, except for the area of training and user
guides.
SYSTEM SUPPORT
e Agreement has been reached on the level of security and access controls to
be applied to the SSC.
e Steve Parker and John Simpkins are on long-tem secondment to T&I.
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+
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ICL Pathway Customer Service Monthly Report Ref: PA/REP/030
Version: 1.0
Date: 22/10/98
INFRASTRUCTURE SERVICES
(MIS / PROCESS ENGINEERING / PERFORMANCE / IT)
° NR2 BES transaction times were agreed and a.number of issues were
identified in.respect of NR2 APS transaction times. Fallback and card
transaction times have been provided to POCL for review.
e Tests for APS transactions show better times than had been predicted.
CURRENT CRITICAL PROBLEMS
° None
ISSUES
. Concern is growing for the quality and service performance of ICL
Outsourcing and several actions have been placed to effect improvements.
The performance of our IT Infrastructure contract has been very
disappointing as the current Red Alert indicates.
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ICL Pathway Quality & Risk Monthly Report Ref: PA/REP/030
Version: 1.0
Date: 22/10/98
Quality & Risk Report
MONTHLY SUMMARY
° FRM progress. Analysis 2 has been produced and issued. 1 repudiated
transaction has been notified; it is being investigated. Major outstanding
issues are for EVP - 2nd line of address and sign off of CCN 243;-solutions
are being pursued.
. Risk Management. The Programme risk for NR2 has reduced
considerable. The major outstanding issues are now PinICL level and
clearance, quality of EPOSS, timescale for regression testing and
acceptance.
e System Security. Significant progress has been made in the definition of
access controls for NT and external support services. Security Event
Management architecture has been refined and procedures are being
defined. The current major issue is the loss of key personnel in Horizon
' FSG.
° Quality. A review of Horizon Training Workbooks has revealed serious
deficiencies. Disaster Recovery Planning - an approach has been defined
and internal data collection to populate the plans is underway.
° Year 2000 Conformance. The development of contingency has begun -
when sufficiently advanced, they will be shared with POCL and BA,.as
input into satisfying the requirements of HMG. Assessment of service
providers, and 3rd party compliance and internal testing continue - no
major issues currently.
e Considerable support continues for the PinICL clearance exercise.
PROGRESS
FRAUD RISK MANAGEMENT
RELEASE 1¢
° FRM Analysis 2 was produced and reviewed and issued on.9/10/98.
° Modelling of FRM processes has started. This will input to the
formulation of investigation costing. This work is ongoing.
e Notification was received of a repudiated encashment been made at a non-
automated post office in Bristol. An investigation was carried.out and data
retrieved from the CMS/PAS database has been forwarded to the BA with a
request for an investigation update.
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Version: 1.0
Date: 22/10/98
NEW RELEASE 2
e The CCD Fraud Risk Management Service Design document was updated
to include all signed off CCNs and issued for agreement under the CCN
process. the document now includes all requirements for FRM.
e The FRM Report Requirements document and FRM Report Layout
document were formally reviewed and are ready for sign off.
e The FCMS was still unavailable for testing during. September due to
continuing problems encountered by T&I. Testing of the FCMS by FRM
will be attempted during October provided the FCMS is available.
e An review of the Introduction to the Horizon system Workbook was
conducted. This raised a number issues regarding technical content.
° A demonstration of the NR2 counter software and Fraud Case
Management System was given to BA and POCL and was well received by
the attendees. It provided an opportunity to encourage POCL to consider
data requirements they may have from a fraud perspective. This will be
progressed in October.
e Review of the Training Workbook documents has. revealed a number of
basic errors in the technical content.
NEW RELEASE 2+
e EVP:
e The sign off of CCN 243 (‘Soft EVP) is still being pursued. The issues
raised by POCL - relating to the additional transaction time for
fallback are being addressed.
RISK MANAGEMENT
e NRO Risk Register. The overall risk profile has not changed significantly.
The process of gathering and recording information for the NRO Risk
Register will become easier when the transfer of mitigation actions into
Level 3 plans by the programme office has been completed.
° Programme Risk Register. This.has been updated. The overall risk for NR2
has reduced considerably — major issues being:
e — The number of PinICLs and rate of generation compared with
clearance.
0 The quality of the EPOSS product requires focus on PinICL fixing
and investigation of product maintainability / stability.
e — Timescales are tight for regression testing of fixes.
e Acceptance remains a very high risk; particularly the level of resource
needed to satisfy Authorities and the impact on NR2+.
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Version: 1.0
Date: 22/10/98
SYSTEM SECURITY
GENERAL
. Documentation:
° V3.4-of The ICL Pathway Security Policy has been issued for review
prior to baselining.
e V0.2 of The Security Management Procedures have been issued for
review.
e Advice on ACP and SFS compliance has been given to third. parties for
security testing.
° Admiral Management Services Limited (AMSL) are to undertake analysis
and scripting for technical penetration testing; this is planned for.Live
Trial but there are dependencies on T & I for rigs and resource.
e There have been significant changes within the Horizon FSG and the
group will probably no longer exist when the current reshuffle is
announced. A great deal of time has been spent familiarising new Horizon
team members with the solution and work in progress. “
e Anti Virus processes. There have been three viruses recently (infected mail
attachments). Imperfections in the anti-virus processes on the Feltham
network have been discovered. A review and agreement of roles and
tesponsibilities is required.
RELEASE 1C ~
e The inappropriate use of live cryptographic keys has been repeated at
MORz2. An incident has been raised on the Security Event Management
database. The incident -has been investigated - no compromise is likely and
all parties involved have been appraised (again) about the correct
processes.
NEW RELEASE 2
e The security implications of Oracle, Sequent and EMC providing “follow
the sun” support from outside the UK are being addressed. The measures
we already have in place to provide secure, controlled access are more
than adequate but the problem remains of foreign nationals gaining access
to HMG RESTRICTED data.
e¢ — A requirements definition for group access controls within the secure NT
build has been agreed.
e — Security Event Management:
e The architecture and design for automated population of the SEM
database directly from the Tivoli Event Server has been agreed with
the Systems Management Group in LSA01.
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Date: 22/10/98
° Process definition continues. Service Levels will be discussed and
included to ensure that alerts and significant events are processed
timely and the appropriate people notified accordingly.
° Options for protecting traffic across the VME / MAC link (used primarily
for Sonnet) have been discussed; several hardware solutions were
identified and are being progressed within Design.
e A PinICL regarding password quality standards on the VME CAPS
machine has been referred to BA Security. The standards dictated in the
Departmental IT Security Standards (DITSS) of the DSS have not been
implemented and the incident is now with the Departmental IT Security
Group (DITSG) to resolve.
e¢ The ACP has been formally reviewed in preparation for re-issue at version
3.0 for Release 2.
° Concepts for Security Awareness in Post Offices have been developed and
will be presented to POCL Security.
QUALITY
e Horizon Security pass status for all suppliers has been reviewed. It has
shown varying degrees of control, confirming the need for periodic audits.
° Draft Horizon Training Workbooks. A quality review has revealed errors
in basic grammar, lack of consistency between the Tables of Content and
the actual content and factual errors within books and inconsistencies
between books.
e Support to Acceptance Test planning / preparation continues.
° Disaster Recovery Planning. An approach has been agreed twth the
consultants (SMH) and an extensive data collection exercise is underway
in Pathway in order to populate plans.
AUDIT
¢ No progress during September; due to involvement with PinICL
Taskforce.
YEAR 2000 CONFORMANCE
e Assessment of Service Providers compliance plans; issues:
e —_Energis:
a, expect to close provisioning over the end 1999 (low impact).
b. emergency power supply to network is vulnerable as only one path
from each data centre is protected. At best capacity could be reduced.
° DLRCS
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c. no contingericy power supply at Tewkesbury.
d. viability of Sittafd as contingency end 1999 dubious
e. may close manufacturing from 31/12/99 to-4/1/2000.
° Royal Mail
f. uncertain compliance of vehicle fleet.
g. mo major concerns on capacity but some degradation of service
expected
¢ HMG has publicised the fact that contingency plans for 61 key “value
adding” processes are required, including three relating to Pathway - Pay
Welfare, Operate Post Office Counters and Provide Housing (dependent
upon POCL). To date the published information identifies the external
dependencies, their criticality and the impact of failure, No guidance is
given to the probability of failure.or its duration. Failure is forecast to
result in immediate Personal Hardship with the potential for Civil
Disorder.
° POCL have confirmed they are evaluating contingency operations based
on “worst case scenarios”; DSS have appointed a Millennium Operating
Regime Manager. Pathway is not recognised either by DSS or POCL as a‘
critical supplier. Pathway scenarios:are being developed.
° 3rd party compliance-issues include:
« —_NT4 Service Pack 4 has slipped well beyond. NR2 timescales.
° NT4 Y2K QFE (Quick Fix Engineering) pack has been applied to
some test rigs-and appears to function; Systems have decided to adopt
this set of repairs though.no.CP has been raised
° CD writer software used by SSC (and others) does not have Y2K
Assurance.
. Y2k testing:
© — No major Y2k faults have been found in BIT so far.
e An issue is that itis probable thatthe last Y2k BIT cycle will not test a
secure system. It may be necessary to add either-another test cycle
alongside MOT and/ or Live Trial or incorporate Y2k testing into
Penetration testing.
CURRENT CRITICAL PROBLEMS
ISSUES
e The number of PinICLs, rate of clearance.and time to:regression test fixes.
° The-quality, stability and maintainability of EPOSS.
° Anti virus responsibilities (for the network) need resolution.
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e The long standing relationship with the FSG has evaporated with the
changes within Horizon. Security & Fraud groups within Pathway no
longer have:a focal point.
° Audit delivery, particularly testing and assurance for R2 authorisation.
¢ — Involvement with PinICL clearance is causing delays to Audit work.
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Business
Development
Report
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Version: 1.0
Date: 22/10/98
Business Development Report
MONTHLY SUMMARY
e September saw four articles in the Press specifically mentioning the
system/card. Recent coverage is less antagonistic to ICL and more focused
on BA & POCL approaches to the project.
° Customer Education requires a new approach if BA are to decouple post
office roll-out from benefit roll-out while simultaneously phasing-in
benefits. Our approach to customer education is baselined and this change
will increase costs by £2m. Any change will require.a Change Request and
the customer has been formally notified that all activity is on-hold until a
CR is submitted and approved.
© Sponsor approach to media communications: several meetings this month
to resurrect sponsor interest and to gain. commitment to plan for positive
communication of both automation and the card. Both sponsors seem
happy to let communications proceed as they are currently - the impact of
the various on-going reviews is to support, what for us, is an unacceptable
approach to media relations.
. Sponsor internal communications: POCL have still not grasped the nettle
on integrated internal communications. The process of our addressing this
is underway.
° Government Communication: review meeting held with Government and
Group to agree an ICL approach communicating with government, MPS
and so on.
e All contract schedules and commercial negotiation for the Logistics feeder
Service are now complete.
e The first paper on the Generics area has been produced by Design. Bus
Dev, CR & Design do not have an agreed approach to this area, POCL are
therefore, progressing their thinking on this issue without our input.
° Pontis, (the technical consultancy retained by POCL), have produced a
report supporting the use of our‘architecture for Banking Services at the
Post Office.
e Sub Post Office Exhibition held at Wembley 3-4" October: Stand
populated by Implementation, ICL Training Services, WTL and ICL
Pathway. As ever, much interest with the stand being:one of the busiest ‘at
the exhibition. All interest was positive and most‘questions were about
when the system would be rolled-out further.
e The presentation to Chairman Sekizawa on 1* October went-well.
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Version: 1.0
Date: 22/10/98
PROGRESS
CUSTOMER EDUCATION
e Press attention and coverage this month has been diverted, it has focused
on news of the BA Contributions system failure, and interest prompted by
the various conferences; TUC - PFI and Post Office privatisation debate;
Labour and single government account and the national POUNC report on
the Post Office. As a result, the journalists that have called have been
happy to accept that the review is still ongoing. Coverage specifically
mentioning our project has begun to shift the point of criticism by
suggesting a BA negativity and a Post Office “caught in the headlights” -
ICL is beginning to be seen as the party caught between two warring
fractions.
e Customer Education; the proposed new approach. requires much rework.
A set of proposals are now in a form ready to be presented to the customer
(CAPS sponsor in this instance). All customer conversations are predicated
on the fact that we do not accept the increased costs and that planning can
not proceed until sponsors agree our.reimbursement. Negotiations are
expected to be lengthy - but if there is to be a Communication campaign it
must be agreed by the customer by December 1998 such that collateral
production can start in Jan 99. A Change Request-is awaited.
° Sponsor approach to media communications: Activity continues -
worthwhile outcomes are difficult to achieve where there is no customer,
senior direction of communications and where the communicators.in the
customer audience find it easier (in periods of uncertainty) to say nothing.
Tenacity combined with creativity seem to be the only recourse.
e — Sponsor internal communications: both customers, but.notably POCL,
replicate the indifference to.external communications in their approach to
internal communications. Our contractual ability to.influence change here
is weaker, but we are actively pressuring POCL to document an approach
in order to demonstrate commitment. The communications problems
manifest a weakness in sponsor organisations to direct communication for
business benefit.
° Government Communication: review meeting held with two other
interested ICL divisions and Group to agree an JCL approach
communicating with government. Future meetings will consider if there is
an approach which the businesses can jointly resource and fund.
BUSINESS DEVELOPMENT
e — Generics; with the first paper on this area produced we now need to pull
together a plan between BusDev, CR, and Design as to what we will
achieve in the next few months, and how we will resource this work.
Work continues with POCL to understand their activities on this front.
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Date: 22/10/98
° The Pontis report supports. our architecture for Banking Services at the
Post Office and has.given us.a much better understanding of POCL’s
business model and assumptions for Network Bank. While there is little
empirical evidence to support POCL’s business model we agree with it in
principle and are working with them to “speed” up their thinking. Even
so, POCL want to move more slowly than we do and_if we are to ensure
the maintenance of client-(Lloyds/TSB) commitment we may need to
deliver a pilot service by the end of next year.
° _ EFTPOS: A series of workshops are being held in October with POCL and
NatWest to help resolve the current issues on systems/process design. We
are currently undertaking pre-work for these workshops. The current
stand alone terminal trial is running well. POCL are.still expecting
EFTPOS to be delivered in the first-available release (probably in Release 3
~Q3 2000). There are a number of difficult design issues to solve, and
POCL require an in-depth understanding of how EPOSS operates.
Resource with this knowledge is very limited, and very busy on Release 2.
Work on costs for delivering this service are ongoing.
° Multi-channel Post Office: POCL have given the ‘Open for Business’ kiosk
trial to Dave Waltho to progress. Dave is keen to use this as the basis of a
drive to multi-channel. We do not have a multi-channel demonstrator; we
have not undertaken any investigation into the architectural issues or the
development costs of enhancing the system to support multi-channel;
neither are we part of the ‘Open for Business’ team. Instead we need to set
up a team to specify and deliver a pilot for this opportunity. We will also
keep close to Dave Waltho and ensure that our system is the basis of the
multi-channel approach.
basi or
rope dn gy
CRITICAL PROBLEMS
e Sponsor approach to communications - this is an ongoing issue which can
not properly be resolved until the project is fully endorsed_at all levels.
Saying so very little is currently damaging - not just for ICL’s reputation
but for staff commitment in ALL organisations.
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Version: 1.0
Date: 22/10/98
International Sales Report
MONTHLY SUMMARY
e —_No submission this month
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Organisation
& Personnel
Report
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Version: 1.0
Monthly Report Date: 22/10/98
Organisation & Personnel Report
MONTHLY SUMMARY
e Recruitment was again a high priority with a recruitment campaign
producing a significant number of good candidates. There was also an
emphasis on briefing the managers within the business on company wide
programmes such as professional communities and Performance+, in
preparation to their introduction to ICL Pathway.
PROGRESS
e There has been good progress in recruiting permanent people, as follows:
Permanent appointments in August 11
Currently under offer 1
Appointments YTD 85
Current requirements 33
° ICL Pathway again had a very visible presence at the London VISIT
recruitment fair. This has produced a number of good candidates who are
being interviewed by managers across the business with a view to making
permanent appointments.
e An external recruitment campaign was run.in conjunction with the above,
with adverts in the computer press and regional newspapers. Candidates
were invited to come to open evenings where they could find out more
about ICL Pathway in an informal setting. Both these open evenings and
the VISIT recruitment fair were well supported by line managers from ICL
Pathway.
° Managers were briefed on Professional Communities in preparation for
detailed discussions aimed at benchmarking all permanent employees
within their appropriate community.
. The management team were briefed on Performance+, as a prelude to
more detailed communications to managers prior to-the launch of the
process to employees.
© — Managers'were briefed on the Working Time directive and advised on the
actions necessary to ensure we comply with its provisions.
e It was.agreed that the customer service unit would move out:from Feltham
to BRAQ1 with a provisional move date of the weekend.of 31% October.
This will give them room for-expansion as:required and reduces the
pressure on space at FELO1 for the medium term. Employees have been
briefed on the move.
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Monthly Report Date: 22/10/98
CURRENT CRITICAL PROBLEMS
° None
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Version: 1.0
Monthly Report Date: 22/10/98
The Post Office - Client Director’s Report
MONTHLY SUMMARY
° Work on the [WIM Integrated Workflow and Image Management bid has
commenced.
BETTER GOVERNMENT
° CITU are keen to accelerate the acceptability of Smartcards for
government electronic service delivery, being of the view that the next step
is to “close the sale”, for the potential of Citizen Smartcards for
government.direct, to ministers and MPs. The aim is to break the deadlock
between govt departments being unwilling to commence electronic service
developments until a wider citizen smartcard population exists, and card
suppliers being unwilling to issue large volumes of digital signature
smartcards until there is a govt electronic-applications/services market.
e [am directing the building of an ICL “ Whitehall Demonstrator” showing
a full citizen interaction, from Housing Benefit application via a Local
Govt Kiosk, to payment of the Benefit via a Post Office Counter; with
identification and authentication via Smartcard. This is intended to be
available in time for the CITU conference Nov 2/3".
IWIM
° Following a good response to the first OJEC ad we have gone through to
the second round. This consists ofa most unusual RFI, demanding an
extraordinary amount of free advice, with ten days to respond. AKTC
(who own all the skills) have responded well, putting together a hit team
to respond to the RFI whilst we focus on the key questions of bid
qualification and win strategy.
° The: full revenue from this bid could amount to £50m over 5 years.
ONE-STOP-SHOP DESKTOP SUPPLY
e The good news is that Fujitsu have been selected as the second hardware
supplier, alongside Compaq. The not so good news is that Systems Service
are achieving 30% of warranty calls within the specified timescale, against
an SLA of 95%.
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