COMPANY SECRET
FSMC/07/06
FUJITSU SERVICES MANAGEMENT COMMITTEE
FEBRUARY 2007
MAJOR ACCOUNTS
POST OFFICE ACCOUNT
Fujitsu and Post Office Limited have signed the HNG-x (Horizon Next Generation)
contract which extends the current contract from expiring in March 2010 to March
2015. The recognition of the contract is subject to a funding condition confirmation
which is due by and expected by 28" February 2007.
The delivery of the HNG-x programme is fully mobilised with over 140 full time
employees engaged. The programme has experienced challenges with regard to
timescales to complete, and after extensive reviews are now on track in terms of
man-days and budget. The current challenge is to ensure that Fujitsu meet the
planned Release Authorisation date of 27" December 2007. The current planning
demonstrates that a 6 week delay has to be mitigated.
Hardware procurement decisions are complete comprising Fujitsu Siemens
Bladeframe servers; EMC storage and Sarian for the branch router infrastructure.
Other programmes are also continuing successfully with the Horizon T40 and T50
software releases. The major component of T40 and TSO is the deployment of
Moneygram, Pin change, and support for the Epson counter printer.
There are two major opportunities closed in quarter 3, which were ‘must wins’ for the
account to meet the full year 06/07 financial commitments:
e Post Office Counter Printer Replacement GBP 7.6m
e Royal Mail Group Digital Media Network GBP 15m
The operational service continues to perform strongly and the latest CSIP report from
the IS and Change team within Post Office has provided a feedback score of 8.5 out
of 10.
The mobilisation of the Royal Mail Digital Media Network is proving to be very
challenging. Technically, the solution works; however there are numerous network
provision, equipment logistics, site wiring and access issues which are causing the
rollout progress to be impacted along with customer satisfaction. As a result of these
additional challenges we have reinforced the Programme Team to ensure we deliver
to our agreed plan.
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Difficulties continue to be experienced with achieving volume deployments of the
Cerner application. NHS Trusts have not been prepared so far to take the product as
presented and have insisted on changes which have delayed the Programme. The
NHS Connecting for Health (CfH) team have been unable to manage the Trusts to
the original plan.
Recently the new NHS Chief Executive, David Nicholson, initiated the National
Programme for Information Technology (NPfIT) Local Ownership Programme
(NLOP). It has been set up to ensure that the NPfIT was re-positioned to become
part of mainstream NHS business. It will also ensure that the products and services
being delivered under NPfIT were meeting the current priorities in the NHS. The
NLOP recommendations stipulate that the functions currently carried out by the CfH
Clusters will in future be carried out either at a local Trust, Strategic Health Authority
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(SHA), Pan-SHA or national level. The current NLOP activities are focused on joint
work between NHS CFH and SHAs to develop an NPfIT Operating Model for the
future. The Fujitsu Services NHS Project management team will continue to work
closely with the NHS, CfH and the SHA’s to ensure that we are in step with the
devolution of responsibility introduced as a key component of NLOP. We will need to
manage the transition carefully as the new NLOP regime does not take effect until 1
April 2007 and is taking place during a critical phase of the RO deployment
programme. In the medium term, NLOP is seen as helping to achieve faster
deployment.
Over the next two months four acute Trusts are scheduled to deploy the Release “0”
version of the Cerner Millennium NHS Care Record System (CRS). As reported in
the last update the most difficult aspect of the implementation of CRS to the acute
Trusts has proved to be the creation of month-end reports and key to achieving these
short-term go-lives is the resolution of some reporting-related issues. This is primarily
due to data quality issues associated with data migration from previous systems and
each trust having a different approach to reporting.
Following up on the successful introduction of the NHS Connecting for Health
Service Desk to the 223 Trusts in the North West Midlands, North East and Eastern
Clusters in December, Fujitsu Services NHS Account has recently completed the
deployment in the London and Southern Clusters. This brings to a successful
conclusion Release 1 of the £42 million programme across all of England. The new
service provides a helpline for NHS staff with IT problems or questions regarding
systems and services brought in as part of the NHS NPfIT. In a satisfaction survey of
the Trusts deployed in December 82% of those who responded were either satisfied
or very satisfied with the service which replaced an existing NHS National Service
Desk. Subsequent releases will provide support for future applications to be
deployed under the NPfIT programme.
The Picture Archiving and Communications System (PACS) programme has moved
into the final phase with 4 PACS systems remaining to be deployed. Since the
programme commenced in April 2005 33 PACS systems and 30 Radiology
Information Systems (RIS) have been deployed. 153 sites now have access to the
PACSIRIS applications and over 115 million patient images are now stored in the
central data store. The completion of the remaining deployments will bring the overall
value of the PACS programme to £283 million.
HMRC
The joint Fujitsu Services and Capgemini presentation, outlining the major
operational risks and vulnerabilities currently facing the Department, has received its
final review by the HMRC Operational Committee. Its recommendation is to proceed
in migrating the most critical business systems into a Fujitsu Services Tier 3 Data
Centre from the existing HMRC premises. Funding approval is awaited from HMRC.
HMRC has instigated a Departmental Transformation Programme (DTP) which will
transform the way it does its business over a 5 year period. There are 20 work
streams and the executive committee of HMRC will be reviewing the outline business
cases for the work streams at the end of January. This will result in a period of
refinement and prioritisation before any approvals are forthcoming.
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In November, Aspire successfully implemented a SAP (ERP) system for Payroll and
HR Self-Service, including online access to payroll data for all 110k HMRC
employees.
The Aspire/HMRC Innovation Centre was successfully launched in December and
was well received by the Client. This will be used for showcasing potential solutions
to business issues facing HMRC and accelerating adoption and implementation.
The roll out of the STRIDE programme delivering a new Windows XP desktop
environment across the whole of HMRC is nearing completion and is on schedule
and to budget. This has been recognised by HMRC as a major success and the next
phase, aimed at exploiting the new desktop capabilities, is being planned.
The fourth tranche (of seven) of Volume Printing has been transitioned from the ex-
HMC&E output centres. When completed in April, this will transfer the printing of
1,248 document types to Aspire and represents around 23.5 million printed images
per year.
Department for Constitutional Affairs (Libra)
The Department signed contracts on 23’ October 2006 with ATOS Origin for
Infrastructure Services and with Logica for the Applications support, as the final
outcome of the DISC procurement.
Discussions are still taking place with regard to the request from the DCA to extend
the current contracted Fujitsu service for an additional 3 months beyond 31° March
2007. It was anticipated that this would be finalised by January 2007. However,
delay has been caused by ATOS underestimating the complexity of services
provided by incumbent suppliers. The customer is reluctant to finalise the scope of
the contract extension until they have an agreed plan with the new supplier ATOS.
We are expecting this agreement and finalisation of scope during February, with
agreement of the contract extension during March.
The Libra Application deployment has recommenced in January, with a target date
for completion of July 2008. This date remains dependent on the development of the
Fines Enforcement functionality.
The key focus for the Account team remains that of maximising profit for the
remaining contract period, whilst maintaining service quality and ensuring a
professional exit.
Home Office
The overall relationship with the Home Office remains strong. In December
Kurokawa-San paid a visit to the Home Office and met Sir David Normington, the
Permanent Secretary. We also have a good relationship with the Financial and
Commercial Director, Helen Kilpatrick.
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The Home Office continues to suffer severe management problems and this is
beginning to noticeably affect the way that they deal with suppliers. The problems
are increased by a financial crisis (caused by a need to divert funds towards building
more prisons), which means IT budgets and investments are threatened. This is
badly affecting the size and timing of sales prospects.
We are building a good relationship with Tom Saunders, the interim Head of IT. He
appears to respect our abilities and the qualities of our people. However, he adopts
an adversarial and contractual style of supplier management the new approach is
creating challenges for us in a number of areas.
IND will be a separately governed agency of the Home Office from April 2007.
Senior management appear to be considering trying to reduce dependence on
Fujitsu, in favour of ATOS, as part of this move. Our strategy to counter the threat is
to ensure we deliver very high quality project work in all key areas of IND, thus
making Fujitsu indispensable. We have now succeeded in delivering good project
work or bids to each of the key directorates, which reinforces this strategy.
Our team is reshaping its management skills and we are recruiting several new
people with experience in applications sales. We are also strengthening our
relationships with key partners, particularly Oracle and hope to exploit these to drive
sales.
Service quality has substantially improved. Since the last report, we completed our
customer satisfaction survey and achieved the highest score ever. We have also
recorded very low service credits — in October we incurred zero points for “time to fix”
failures and in December the total service credit was the lowest ever recorded on the
account.
DTI Elgar
Service has been very good during the period with availability consistently exceeding
service levels & customer satisfaction remaining above average.
UK Trade and Investment (an Agency of DTI) scored us at 7 during December. This
was an improvement from 6-12 months earlier and reflected a noted improvement in
Project Delivery.
The Flexible Computing Programme is progressing. This project was delayed due to
a communications error resulting in a Red Alert. The Red Alert was satisfactorily
resolved and the project is shortly due to enter UAT.
The Matrix2 Document Management Programme continues satisfactorily, the project
has been re-scheduled to an end-August delivery date.
We are currently refreshing the estate with Office2003. This high profile project is on
schedule.
Negotiations have begun with regard to completion of the Insolvency Service
CAMEO project. This Service is currently considering a number of options.
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In August the DTI issued an ITT to selected suppliers for a replacement HR system.
Fujitsu responded with a proposed contract value of £3.5m. We are currently short
listed awaiting the decision.
The DTI is reducing headcount as a Department. They have already reduced the
contracted headcount by over 600 seats and this trend is likely to continue through
2007. As we are currently well above the contracted minimum number of seats these
reductions feed through to the bottom line through the lifetime accounting model.
The Insolvency Service issued a Catalist ITT for an infrastructure refresh at the start
of November. Fujitsu is the incumbent supplier for this service. We are preparing
our response based on the benefits of Insolvency Service joining the DTI’s ELGAR
contract in a Shared Services environment. It is expected that there will be further
TCV opportunities emerging within the Insolvency Service, e.g. Application Support,
once the Infrastructure Service is secured.
The DTI has insisted that Fujitsu enter into a Benchmarking exercise with regard to
the services provided. This is a contractual obligation and we have agreed to begin
the process using Gartner as the Benchmarker. We are currently negotiating the
terms of the exercise. Particular care is being taken to protect Fujitsu’s commercial
position whilst complying with the customer's requirement for us to demonstrate
value for money.
MoD DIK(F)
At the end of December the rollout volumes achieved were 130 sites, 2000 UAD’s
(user access device) and 11,000 users trained. The site approval process which is
part of the migration roll out method is still introducing complexities and potential
delays. These range from health and safety, site environment works and network
equipment installation. None of these areas are Atlas or Fujitsu's responsibility.
Some improvement in roll out volumes was achieved at smaller sites during
December; however, rolling out the larger sites scheduled during Q1 2007 will be key
to increasing the current volumes. MOD and ATLAS have revised the Site
Implementation approach and approval process based on lessons learned to date.
These changes come into operation during January 2007.
Following intensive and difficult discussions between EDS and Fujitsu, the ATLAS
Engineering technical organisation has been restructured to create more effective
joint working within the teams and improved integration throughout the engineering
lifecycle. This is necessary to underpin the Q1 and Q2 delivery dates of technical
solutions required for DII/F Rollout and to improve the efficiency and effectiveness of
the ATLAS delivery organisation.
Overall, the changes identified above for Implementation and Engineering are
essential to overcome the difficulties experienced by the DII/F programme to date
and to improve delivery volumes throughout 2007.
There are a number of significant RFCs (change requests) in progress, including:
RFC12 — Increment 2 additional fixed site migration for approximately 55,000
desktops, this RFC is entering its final phase of negotiations between Fujitsu and
EDS. RFC12 was signed between EDS and MOD at end December 2006.
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RFC29 — Increment 2 solutions and services for deployed systems, this RFC is at an
indicative pricing stage and is scheduled for contract change during August 2007,
with activities ongoing to try and bring the date forward to April 2007.
RFC7168 — Covers the DII/F solution changes to Release 2. It has been agreed to
reduce the EDRMS roadmap from 3 stages to 2. The interim stage of porting the
current DII/C EDRMS solution to DII/F has been removed. The first stage of
reaching back from DII/F to the DII/C EDRMS will continue longer until the office
collaborations tools from Microsoft are available sometime during 2008. This RFC
will need to be revised and then progressed with MOD.
RFC9817 — Brings forward the Abbey Wood MOD Procurement Agencies from
Increment 2 into the Increment 1 scope of work. Currently in negotiation with MOD
for agreement Q1 2007.
Northern Ireland Civil Service e-HR Programme
The e-HR programme is to help the Northern Ireland Civil Service (NICS) move to its
Future Service Delivery Model for HR across all the NICS departments. The Fujitsu-
led consortium is supported by PWC and Capita to deliver the programme of work.
Plans are in place to complete the next main programme milestones in the next two
weeks, with some scoping discussions with Capita being managed by the
programme management team. These discussions have progressed well over the
last number of weeks, with the team making good progress in ensuring Capita
understand that they and Fujitsu must jointly ensure the success of the programme of
work. It is also anticipated that the overall risk provision for the programme will
reduce in March as the Design and Build is completed.
Customer engagement at all levels on the e-HR programme is strong, with the
governance and communications mechanisms helping to provide early sight of
potential issues and helping both the NICS and the Fujitsu teams to manage both
risks and issues on a timely basis. As part of this, the senior level team are working
to build relationships with the new SRO who has recently been appointed by the
customer.
Overall, the client is satisfied with progress to date and good working relationships
exist between the Fujitsu team and the primary customer stakeholders, who have
remained in place from the procurement phase into the delivery programme. This
has been reflected in the recent CSIP that was completed last week by the customer.
Looking forward, the next major milestones are due to be delivered at the end of
January 2007 and in March 2007 and are currently on target to be met.
David Courtley
February 2007
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