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Hathaway Katherine
Sibbick David
Anderson Isabel
Hopkins Dick
Hinds Monica
Poduval Rags
Harris David CII
Subjects... 52::2se2::5¢ TEL
11/05/1999 12:21
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ICL Awayday
11/05/1999 12:57
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David/Dick cc:Isabel for info if of use/David/Rags/Monica
I met with George Hall yesterday to dicuss a number of things including our
forthcoming awayday, the Information Age Partnership meeting and a more general
update on all things ICL.
1) Horizon
We spent the first 30 minutes discussing Horizon during which George confirmed
that he knew that Ministers were split between cancelling the project and option
Bl (version2) - he also knew exactly where that split lay i.€. HMT/DSS versus
the others. whén asked how the deadline of 23 April had been extended he
admitted it was only because ICL were fudging their financial reporting with
potentially disastrous results as far as the directors were concerned.
He confirmed that Keith Todd will lose his job should Horizon go down and that
Fujitsu will divest themselves of ICL which will be broken up and the Services
side will probably go to Seimens along with some other Fujitsu interests on the
hardware side. Seimens are known to be interested in acquiring a services
business and are already in discussion with Fujitsu.
He also said that he was personally hawkish about the legal situation and
regarded DSS as having been utterly duplicitous ( he suggested that ICL might
accuse DSS of fraud - which I somehow doubt actually). Indeed he suggested that
Horizon had been a great eye-opener for ICL as regards to how the Government did
business and that ICL would think very hard about ever undertaking this kind of
project again. I assume that this will become common knowledge around the
industry eventually and that PFI in IT areas will become even more difficult
than it already is.
2) Business Performance
Despite the huge drain on resources that Horizon has been, ICL as a business
have turned around this year largely following the Microsoft deal ( ICL are now
a major Microsoft partner in the UK). The business is making good progress in US
gaining new customers in the retail sector e.g. Safeways and this is leading ICL
to re-think its retail strategy.
Central European business is also developing on the back of the project to
develop the IT infrastructure for the Hungarian railway. ICL have been asked to
replicate this in Czech republic and in Bulgaria.
Scandinavian business is also developing well especially in e-commerce as is
Ireland.
3) Strategic awayday ( assumes Horizon resolved)
To be held in Slough on 21/6 with kick off at 3 -3.30 depending on trains and
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ending with an evening supper.
th Todd will greet and do intro's - will also host supper. Andew Boswell,
George Hall and Nigel Hartnell will all be there as well as Alistair Reid and
Michael Wild ( ICL secondee in the Future Unit).
On ICL's agenda are :
Presentation re. business development/progress - 15 mins on last year and a
forward look to 99/2000 and the flotation
ICL's new business model
Relationship with DTI as a client - Elgar.
Framework 5 projects ( albeit verey briefly)
Market/ technology developments
ICL have suggested we discus our view of the Information Society - e-commerce,
PIU, learning from the e-commerce bill and conditioning the environment for
e-business
They also want a view on International perspectives - WTO and the agenda for
e-commerce e.g. IPR, Taxation, rights of establishment etc.
We probably also need to review IAP outcomes as part of this meeting.
Lastly George mentioned a concern about how ICL are viewed in Government and
whether they were communicating effectively. I think this has three sources -
Horizon clearly , the imminent flotation and also an echo of concern about the
TA's which we picked up at the EDS awayday ( I assume Rob and Alan are doing
their work in this area)