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ICL Pathway
Bringing Monthly
Technology _— Progress
to Post Office Report
Counters &
Benefit Payments HAD (CL
POH. 3
January 1998
1D '
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ICL Pathway Pathway Programme Monthly. Report Ref: PA\REP\022
Version: 1.0
Date: 16/02/98
Document Title: Pathway Monthly Report - January 1998
Associated Documents:
Reference Vers Date Tide Source
[1] PM/PRO/0002 1.0 26/09/96 Pathway Programme - Project
Planning, Reporting and Control
Approval Authorities:
Name Position Signature Daté
J. H. Bennett Managing Director
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ICL Pathway Monthly Report
Contents:
@ Managing Director’s Summary
& Programmes Report
Systems Report.
Commercial and Financial Report.
Customer Requirements Report.
Customer Service Report,
Quality and Risk Report,
Business Development Report.
International Sales Report.
Organisation & Personnel Report,
Post Office Client Report
1IOddy
SOWIUIVISOIT
pure
Areuruins
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Managing Directors Summary Date: 16/02/98
Managing Directors Sunimary
1. MANAGING DIRECTORS SUMMARY
‘e Substantial progress has been made with Release 1c over the last
four weeks with a large number of major operational issues i
successfully fixed. This system is now much more operationally
easy to use by the counter staff and this should help considerably.
There remains some tricky backend system improvements to be
made in the area of. reconciliation and this does point rather
disappointingly to some.poor quality software -from Oracle which
still has bugs and fixes to be applied.
° Planning work.NR2 has moved forward vigorously and we now
have a new high level plan with all the key handshake milestones
with BA and POCL/PDA all properly included and agreed. This has
required extensive collective workshops and a more co-operative
style of working is beginning to emerge, particularly when the
dialogue is direct to BA or POCL. NR2 ready for live use remains
on target for the 5" October-although two of the six weeks built in
contingency have now been released.
° Alongside NR2 planning and development, good progress has been
made.on the key tasks for implementation. This is a 39 week
process to prepare the physical state of the Post Offices and we
have now reached agreement in ,.;inciple to building up a stock of
3,000 “ready to go” Post Offices hefore national rollout begins. i
This will mean active work on the ground starting next month. I
Now surprisingly, this has forced into the open the vexed question. I
of who pays for the poor.state of the post office counter estate. We
need a good argument to get this fixed.
. An active month on the marketing front with the demonstration
suite being used heavily to promote our capabilities. We.have seen
over 8 clients and international visitors and three further external
presentations carried out, including to the DTI and the Inland
Revenue. ‘It is coming sadly clear that. we cannot rely on POCL:to
market and sell the Horizon system to their existing clients or
potential new clients and we have to fifl the vacuum. More of this
will be:necessary and fresh thinking is being given to how we move
to a stronger basis for this.
. An extensive month of lobbying has taken, place to promote the
strength of ICL Pathway and the Horizon programme for
government use today and in the future. This is reported elsewhere
in more detail.
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Managing Directors Summary Date: 16/02/98
e A Post Office Group opportunity to mount:major call Centres has
been pursued through our Client Director Post Office activity and
this has led to ICL being on a final short list of two for-substantial
business this year and next. This is entirely outside the Pathway
contract as,such and is the first signs of finding new streams of
business for ICL at large across this major client.
° Press activity continues with both Government Computing and
Computer Weekly-collecting their facts for another major
onslaught. So far the collective press offices have maintained a
consisterit line which has made it difficult for a big story to be
constructed. Howéever, there are chinks and in particular
Government Computing are getting quite hostile.
i
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Managing Directors Summary Date: 16/02/98
2. PROGRESS
2.1 RELEASE 2 HIGH LEVEL PLAN
~o ~~~ Release 2 High Level Plan v3.0 1/2/98 re: tat I
Pim Oh: FERIA
Counter Applications,
‘IDevelopment
Agent Development
Host Development
: Infrastructure Development
‘ITest Scripts
iISystem Testing
{ONT Test
{/BIT Testing
IJAcceptance Prep and Testing
I lEnd to End Testing
{I]POCL End to End Procedure
1 [Watk Through
*ITechnical & Security Testing
I IModel Offica Rehearsal #1
‘Model Office Rehearsal #2
«I Model Office Test
Contingency
[Counter Migration 1¢ to'NR2
‘IData Centre Clear Down and
Migration
Live Operation
Live Triat
‘ICounter Procedures / PPD
:I Production
-INational Rot! Out Preparation
+ {Start National Roll-Out
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Managing Directors Summary . Date: 16/02/98
2.2 GENERAL
The release-of new payment cards on Release 1c is stepping-up
quickly now with over 16,000 currently issued and approximately
half of these now in active use. This has ttiggered of a lot more
calls to the Help Desks and is therefore a good tést of our complete
system. We still have issues with reconciliation and the data
warehouse which. affects the backend systems and our interfaces
into CAPS and POCL. Probably the most important area for joint
investigation is how the Pathway CAPS interface is used in live
service. This is not a surprising:area but one wheré rapid and
professional activitiy and progress is essential. Working
relationships with CAPS on this are proving good.
Feedback from the users and customers on Release ‘Ic has been
encouraging, particularly with the use of the Help Desks and the
‘Systems Service provided through CFM by ICL Sorbus. Satisfaction
levels‘in the 90 percents are already being achieved.
On NR2 good work has been done to flush out exactly how
migration from 1¢ to NR2 can be carried out.and this will be done
by migrating the counter systems first following the 5"* October
telease date, followed by a full conversion of the data centres by the
2™ November. This has been agreed with the sponsors. We
continue to work to the sponsor timetable‘for live trial 25" January
1999 with national rollout end of March, but are looking at ways
to inject more: worthwhile activity on the basis that we can hold the
5 October date. This will require persistent management for
several months.
Configuration management has moved on with successful
implementation of PCMS which is already delivering benefit. A
critical issue which needs careful watching is the level of change
control still being applied.to NR2. There are still too many change
proposals coming through and a large part of these are internal.
We still hope to get a POCL product into our NR2+ release
targeted for Summer 1999 and the most likely candidate is their
logistic feeder system, essential for better cash management.
Support and help from across the Pathway teams is-being given to
the International Group for their bid at Deutsche.Post. This is a
fine balance. with our key people doing sufficient to maintain a
strong presence on the bid, but with minimal or manageable ‘impact
on the critical domestic programmes. This will be the nature of
play for at least the next 12 months.
Active work is now taking place on the Risk Management front
looking at now just NR2 risks but also the beat rollout rate for
implementation, how to cover resilience:and recovery.
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Managing Directors Summary Date: 16/02/98
° The subject of audit is now high on the agenda and a lot of work is
being put together to see how this requirement can be met. The
critical issue, is the sheer volume of data and the need to take a
pragmatic view as to what to save and what to dump.
e The Year 2000 programme actively moves forward involving:all our
service providers'as well as injection into the test and integration
activity for NR2 and a check-on all our own IT systems.
° POCL.will not be proceeding withthe Pathway Bill Pay initiative
and instead will extend their existing APT systems. In the final
event the-real system they want is that designed for NR2 which not
surprisingly is only available at NR2. .
e Internal work is going on rapidly to determine what a Social
Banking proposition might look like and eventually to persuade
POCL to follow our views. Considerably selling effort:is still
required here.
. Further opportunities for Post Office Group IT contracts include a
major one stop shopping opportunity for TPLC which we are
helping where we can and a forthcoming RFI for a Group wide
Service Management contract. It is expected that CFM and The
Solution Centre will be able-to mount competitive bids‘using
Pathway experience.
dest oes
3. ISSUES
© The need :o determine a releas. plan for NR2+ and Release 3
which can be implemented whilst National Rollout is ‘in process,
without causing ‘delay.
. We need to find a stronger way of working with POCL to
strengthen their approach to client management for both existing
and new clients.
. Acceptance requires considerable work, yet tc issues and NR2
planning continue to make demands-on key. individuals.
. Resolution on the poor physical state of the Post Office network
requires a new commercial agreement.
° Work must complete in April to determine the validity of the
Pathway Light solution.
* Achievement of the replanning work to establish the commercial
viability of the BA/POCL Programnie.
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_ 4. COSTS
4.1 TOTAL PROGRAMME COSTS
Total Programme Costs as at'30 January. 1998
200,000 ——
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160,000
149.000
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Managing Directors Summary Date: 16/02/98
4.2 TOTAL PROGRAMME CURRENT COSTS
Total. Programme Current Costs:as at 30 January 1998)
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Managing Directors Summary Date: 16/02/98
4.3 TOTAL PROGRAMME CAPITAL COSTS
Total Programme Capital Costs as at 30 January 1998
12000 —— ape —
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ICL Pathway Pathway Programme Monthly Report y Ref: BAAREP\O22
Version: 1,
Systems Report Date: 16/02/98
Systems Report
1. MONTHLY SUMMARY
e January was a month of mixed fortunes, we made significant progress-with
OBCS (Order Books) and APS (Bill Pay) and are on:schedule to deliver the
latest version of EPOSS into technical integration prior to system testing:
e However we ran into serious difficulties with the TIP interface software
which has prevented the continuation of the direct interface testing (DIT)
with POCL. In addition, we encountered delays in the development of the
file transfer mechanism (FTMS) used in most of the interfaces with POCL.
e Initial concérns regarding the level of design and development support
required for release 1c. have subsided..The early indications that delays to
the final development activities for new release 2, may occur haye not
materialised.
° We were notified by POCL that they did not wish to proceed with the ‘Bill
Pay’ proposal submitted by Pathway. This opportunity had the potential
to become diversionary for certain key people in the Systems Directorate.
This risk is how removed.
e The danger-that we. may not be able to retain and access the vast amounts
of data required to meet the audit requirements is still present but good
progress has been made in identifying an acceptable-solution. The plan for
New Release 2 did not anticipa: ! a large amount of software development
work in this area so the emerging approach is being reviewed very
carefully.
° POCL agreed to proceed with the survey-and preparation activities in the
outlets, a decision applauded by Pathway. This enables the-programme to
build up a buffer of suitable outlets for installation, thereby derisking the
roll-out schedule.
e — Considerable effort was expended.on detailing the manpower and
hardware forecasts within the System Directorate and.expect the work to
be completed in February.
e There is a growing sense of urgency and focus throughout the team as they
ramp up for the demanding months ahead.
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2. PROGRESS
The Benefit Payment System (BPS) was delivered as planned and we are
now in the early stages of system testing. However, this functionality is
suffering from a large amount of internal change and this has had-a major
impact on the test scripting work. We have allocated a further two weeks
of elapsed time, taken from the Pathway schedule contingency, to enable
this: work to catch up. Several amendments have made to the change
proposal process in an attempt to get this activity under better control.
The 1™ pass of system testing the. APS and OBCS systems.is complete. The
main pass is expected to be finished in February. The pre-DIT stage
(interface testing) for all of the systems has now been concluded.
The taskforce created to address the development slippage on EPOSS has
been successful. The software was delivered into technical integration on
time and two further versions are planned to be intercepted by the test
teams without-adversely impacting the schedule. We are working very
closely with POCL because the documented requirement for EPOSS leaves
a lot of room for interpretation. Consequently, this application could be
the source.of confrontation in the coming months, so careful management
is crucial.
The counter migration tools, new Caps Access Service (CAS), the Data
Warehouse, MIS and a new version of the Reference Data Management
Centre (RDMC) have all been successfully handed over into:the technical
integration stage.
Much of the preparatory work (e:g. strategies, test plans etc)’for the
technical, performance, security and systems management aspects has been
completed.
Progress on the Roll-our Database (RODB) has been encouraging. The
review carried out by Pathway in January confirmed that the current
system is of acceptable quality and further development work has been
commissioned to handle the two stream implementation strategy.
Increased management focus on the Reference Data Management Centre,
_ supporting tools and distribution software has resulted in better clarity of
the issues facing the team and enabled joined up plans to be put in place.
3. CURRENT CRITICAL PROBLEM
The use of the FAD code to uniquely identify a post office outlet in the
Pathway solution is a major issue between ourselves:and POCL. Neither
party can afford the costs‘involved bringing the process in line with the
other. We still seem to be some way off from finding an acceptable way
forward.
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Systems Report Date: 16/02/98
e The TIP interface software, known as the TPS Host requires significant
redevelopment due to poor quality code. This has had a major impact on
the direct interface testing schedule with POCL and close-co-operation is
essential if we are to recover the lost ground.
e The design team is still suffering from the severe shortage of resources. This
problem has been with us_since last autumn but is now. becoming critical. All ~
previous attempts to ‘recruit permanent employees-or to secure internal ICL
staff have had limited success.
4. ISSUES
. The migration from release 1¢ to NR2 is complex and requires very careful
and detailed planning and thorough testing: A joint ROCL/Pathway team
was created just after Christmas and ‘is working very well. The migration
strategy document is currently with the Sponsors for approval but we are
not expecting any major issues to emerge.
e The number of Bill Pay clients and services required to be supported since 2
the contract was awarded has increased significantly. Identifying all the . x
services and the work-associated with the take-on is proving to be a 2
troublesome task. .
e We have been trying to resolve two serious. problems/bugs in the Unison : a
Pu
‘Maestro’ product which is used to schedule the batch processes on the NT
and UNIX platforms. The nature of the problems are such that they will -
bring the system testing activities to a dead-stop if not resolved. :
. The systems directorate is finding it increasingly difficult to support the
international activities. A proper well thought out resource strategy is
required if this is to continue on a sensible basis.
e The increased size‘and complexity of the system has had a consequential
impact on the performance testing required. Additional activities and
resources have been identified and these need to be properly factored into
our detailed, plans.
© — The audit design specification suggests that there are a number of areas
where additional development is required for NR2. A detailed review has
been commissioned to determine whether the design is:too sophisticated
arid can be simplified:
e — The Host system which interfaces with the POCL TIP system is known as
TPS. Early performance test results indicate that further'work is necessary if
wé are to satisfy the throughput estimates. This problem is in addition to
the software quality difficulties identified earlier.
° Reference data is poorly defined in the contractual requirements but is
crucial for the proper control of changes to outlet/product data. POCL are
only now realising its significance and we must be vigilant if we are to avoid
requirements creep.
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e The true development life cycle implications of Pathway Light’ must be
‘identified at the earliest opportunity if we are to. properly integrate the
activities into the overall plan.
5. COSTS
* The systems.directorate is in the process of baselining their budgets for
1998 and expect to complete this exercise early February.
1
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ICL Pathway Pathway Programme Monthly Report Vert io
sion: 1.
Commercial & Financial Report Date: 16/02/98
Commercial & Financial Report
1. MONTHLY SUMMARY
2. PROGRESS
3. CURRENT CRITICAL PROBLEM
4. ISSUES
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5. COSTS
5.1 KEY FINANCIAL DATA - JANUARY 1998
5.1.1 PROJECT COST ANALYSIS (£000)
Revenue
Direct Cost of Sales
Gross Margin (Deficit)
Opex:- Labour Related:
Own staff
Freelancers
Travel &
Subsistence
ICL Subcontracts
Other
Subcontracts
Depreciation
Marketing
Professional
Other costs
Gross Project Opex
Interest costs
Costs before Capitalisations I6,919
Declared PBT Losses
Capitalised into Project WIP]6,839
Nanuary I {Variances vs
Actual = {IForecast IICL
Budget
18 (5) (5)
1,484 (132) (132)
(1,466) I}(137) (137)
517 3 3
1,064 154 154
27 24 24
939 1210 210
753 (97) (103)
998 (34) (239)
22 S53 46
119 (5) 18
399 (56) (116)
4,836 1252 (4)
617 26 35
141 (106)
80 - -
141 (106)
¢ — Costs capitalised into Project WIP during January were £6839k, which was
£141k better than the ICL January Forecast.
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Commercial & Financial Report Date: 16/02/98
. Invoices received in respect of freelancer resources over the Xmas/New
year break proved to be lower than forecast, and further savings arose on
IGL subcontracts although some of this gain will reverse in February, as
charging units recover from their year-end diversions.
° Direct cost of salés includes-heavy accruals:and little should be'read into
the adverse variance against forecast at this stage.
° External subcontract costs were £97k worse than forecast,.due to earlier
than forecast development paymenis to Escher.
e Other cost overruns, particularly vs budget, included depreciation - due to
advance procurement of components, and-exchange losses due-to forward
exchange commitments
e Although costs taken straight to P&L in January - relating to overseas bids
- were.in line with both budget and forecast in the month, current run
rates on the German bid will make the Q1 budget difficult to achieve.
5.1.2 HEADCOUNT (YEAR END)
\January. I IVariances vs
Actual Forecast IICL
Budget
Permanent 118 (1) 1
Non-Permanent 122 (9} 2
e The January Forecasticlearly failéd to fully reflect the influx of freelancers
during the month. However, both permanent and non-permanent
headcount levels remain just below budget.
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Net Fixed Assets
Other Working Capital
Share Capita]
Retained Earnings
OpCo/AssetCo Balance
External Loans
5.1.3 BALANCE SHEETS (£000)
January I January ICL January 1998 Split
Actual Forecast [Budget I[OpCo IAssCo
38,112 I [36,219 I36,903 3,272 I34,840
Project Work in Progress 199,594 99,855 {100,046 {176,704 I22,891
(15,269)} I(10,099) I(9,485) (15,121) I(148)
Total 122,437] I125,976. I127,464 I164,854 57,583
20,000 I {20,000 {20,000 19,999 {1
(668) (668) (483) (668)
31,488 }(31,488)
Group Pooled Borrowings I14,034 42,997 142,769 14,035 (1)
89,071 I I63,647 {65,178 89,071
Total. borrowings }103,106} ]106,644 107,947
Total 122,437] I125,976 I127,464 I]64,854 {57,583
. Total borrowings were £3.5m lower than forecast, due to a favourable
working capital situation which included an amount of £1.7m outstanding
to Sequent relating to the Numa-Q equipment installed at Bootle before
Christmas. This has now been paid, following acceptance of the kit. The
higher than forecast fixed assets-were entirely offset by related creditors
and inter-company balances. Higher accruals levels accounted for most of
the remainder of the variance.
A further drawdown of £25m through AssetCo during the month gave rise
to the mix variances within. Pathway’'s overall borrowings. Drawdowns
from AssetCo's funding banks are now running-over £30m ahead of 'true!
requirements.
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== Customer
—
hh,
ml
——_.
—
== Requirements
Report.
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Version: 1.0
Customer Requirements Report Date: 16/02/98
Customer Requirements Report
1. SUMMARY
° The Customer Requirements team continues to focus to the maximum
extent on Contractual Acceptance, although there are many issues on
Release 1 and New Release 2 that demand immediate attention.
2. PROGRESS
2.1 DETAILED PLAN ACTIVITIES
2.1.1 RELEASE 1/ NEW 2
e —_- Vetsion 4.of the Counter Hardware Design Specification was.submitted
for approval. Implementation will now take over this document.
¢ There was further exchange of letters with PDA over CCN 117 (Urgent
Payments and Temporary Tokens). The PDA. legal group clearly do-not
understand either-the Requirements or the Solutions and are now just
wasting time trying to argue for unworkable definitions. The one positive
aspect is that by dragging out consideration they have lost‘any leverage on
determining aspects of the solution which is now in various stages of test.
2.1.2 RELEASE NEW 2/3
e Tony H has secured a NR2 DSS Reference Data definition which provides
all information under one cover. For R3 agreement has been reached. with
between PDA (Rod Stocker) and the Pathway RDME team to unify DSS
and POCL Reference Data.
° Dave C has created new versions of the NR2 PUN, factoring in PDA
change requests for logos and new text, .and for. Pathway GS and DLR
changes to ‘improve clarity and usage.
e There has been a major push on customer document reviews this month,
with about 20 from CAPS alone, plus others from PDA (End to End
Business Process Models).
. Tony H and Dave H now hold regular end-to-end process meetings with
CAPS. These give rise to some sensible changes although, of course, our
first response now is to seek to defer them.
e Dave H and Tony H visited D$$ Northampton District office and gained
new insights into how the Pathway solution will be used. For example, we
believe that DSS staff will routinely make on-line enquiry before a claimant
interview. Staff have been instructed to make sparing use of Teinporary
Tokens. They will also give priority to CAPS record keeping instead of
payments: currently the reverse is normal.
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* Customer Requirements Report Date: 16/02/98
¢ _ .A potential issue.concerning FAD codes is threatened: POCL have said
that they may wish to change FAD codes, while our solution depends on
the FAD code being the unique descriptor for the post office. Tony H is
visiting POCL (Chesterfield) with. Dick Long‘and will discourage more
than the very limited changes to FAD codes needed for handling offices
shutting down and starting up and will insist on a funded Change Request
to impact anything more significant.
. We have responded to queries back from PDA Commercial on CCN204a
(card stops) and CCN212 (first forenames).
e DSS On Line Enquiries: This threatened to get bogged down in wrangling
as to whether the DSS offices would have recourse to the Payment Card
Help Line (PCHL) when CMS on-line enquiries become-available. Tony
H has proposed:a simple fixed CMS enquiry dialogue to answer 99% of
enquiries with more complex ones handled via PCHL.
e John D presented on Service boundaries to the Reconciliation group. The
problem is that if POCL are deemed to have stewardship of the £200M or
so worth of:unencashed payment authorisations sitting in TMS and if DSS
give POCL permission to access them (which currently they do not) then
POCL will need some way of exercising stewardship. It could threaten a
TMS-level daily reconciliation of unencashed authorisations in’addition to
the existing one at the PAS-_level.
2.1.3 CARS
e No CAR work was done in January. The principal task remains to mark
up those as yet undelivered CARs which are the more urgent for NR2.
2.1.4 ACCEPTANCE
« A detailed plan for all Acceptance Test Specifications, including the
additional Tests mandated by PDA legal last July, was tabled. It is deemed
_ “aggressive” by the PDA although it is, in-reality, only keyed to the BIT
-phase in the 15 December plan. Since then the Live Trial has been
stretched until.26 March.
‘e —- The weekly progress and action meetings are established and are separately
reported. Additional staff are being sought to handle the additional Tests.
Good progress is being made with Test Specification preparation for
OBCS, AP, BES.and Servicés.
e A letter explaining “new style” acceptance specifications was sent to PDA,
together with an OBGS exemplar Test Specification: it will mean it is
much less work to originate and maintain the specifications than
previously, with greater reliance for Acceptance Trial material on Business
Threads (BTs) and. High Level Test Plans (HLTPs).
e The Feltham BTs and HLTPs are a little late coming through with the last
forecast for about mid March. Bracknell HLTPs are now available
although the Security ones are not baselined.
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e The Service Definition Schedules and Solutions Schedules all require
updating as, in fact, do many Requirements where the customer has not
adequately maintained;texts. We propose to update the Requirements
schedules supplied by the customer in December for Urgent Payments and
Temporary Tokens and notify him that any changes beyond that which are
the subject of open CCNs may or may not appear as acceptance non-
conformances depending on whether we have.implemented them or not.
.A wholesale review of Solutions texts has started with all Test Managers
contributing.
2.1.5 MASONS
¢ John D did one further session with. Masons to establish the audit trail for
the delivery of Reference Data CARs. Further séssioits on areas of
Requirements/Solutions drift are required.
2.1.6 NEW BUSINESS.SUPPORT
. Logistics Feeder Service - This is the most probable main new content of
NR2+ /R3, essential to POCL’s improvements to cash management. The a 4
Requirements work is-complete except for any variations.caused by the :
practicalities of modifying EPOSS, changes to the anticipated daily
operating schedule and the inclusion of classes of non-value stock items.
. Dave C helped in the selection of Retail Logic.as EFTPOS supplier.
POCL’s intention to do a stand-alone pilot has thé effect of removing
EFTPOS as a R3 candidate.
° Both the above items are factored into the Version 5.0 SADD which is
targeted at R3...
. Daye C has produced.the requirements specification for Talexus which
POCL has for agreement as the basis of our commercial proposals.
e John D has produced a discussion paper on a programme to-extend the
contract into Citizen-centred services. Dave C has also produced a
requirement specification for a Family Budgeting Service demonstrator, a
key element in such a programme.
° POCL has hired French’'Thornton consultants to analyse. the Pathway
contract and solution:in the context of using Generic Functions to.support
the POCL business. The work is of good quality. We will need to involve
Architecture and Design in taking this forward as part of R3.
2.2 OTHER TEAM ACTIVITIES
2.2.1 INTERNATIONAL SALES BIDS
¢ German Post Office: Assistance was provided with the production of
various documents, including a response on Systems Management,
requirements for an archive server and définition of generalised
workpackages. Various ad-hoc queries have been dealt with.
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2.2:2 OTHER
. Best Practices Group: Dave H has recommended that we cannot use the
Telecomms branch project documentation tools in the mainstream
Pathway context.
. Dave H chaired the Workflow Coalition technical committee meeting at
the startof Feb and has been:re-elected chairman for 1998. It is
understood that.DPAG have expressed interest in workflow interfaced to
Riposte and this may be a potential subject for follow up.
3. CURRENT CRITICAL PROBLEMS
. None
4. ISSUES
5. COSTS
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1. MONTHLY SUMMARY
e January continued to’show an increasing workload as the rate of new
Payment Card issue and activation was stepped up by BA. With over
11,000 cards produced and nearly. half of them activated, the number of
enquiries to the Payment Card Help Line has increased markedly.
° Reconciliation, data:warehousé and lost transactions on counter terminal
time-out continued to present the bulk of our problems. Fixes for the
reconciliation problems and Release 24 of Riposté, which addresses the
receipt printer and lost transactions on terminal time-out, will be-applied
in early February.
© ~The Service Management Review on 21 January was received positively
and made constructive comment on my report of the problems we have
encountered ‘on Release 1¢ and over the Christmas périod.
2. PROGRESS
2.1 OPERATIONS
Although we are still running with a number of operational issues, the
overall position has improved and witt. che (slow) réduction in the rate of
problems calls, Release 1C is becoming meré stable and manageable,
All high-impact problems now have full Pathway-wide visibility and
dedicated Problem Managers. A weekly report is‘published which tracks
the progress of each of these.
Our current top priority for operational issues is the review and
improvement to the CAPS/Pathway Operational Interface. Good progress
is being made and the final joint report is scheduled to be published by the
end of February.
Business Support workload is increasing, aggravated by the continuing
problems with Oracle code - we still have no resolution to the CBoS
PMS100 and 104 mismatches.
Work on release 2 planning continues. PPD production is delayed being
dependent on EPOSS High level design.
Méetings are now being held regularly with CAPS-t6 plan the Nile 1
upgrade which is due to be implemented over the Easter week-end.
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2.2 RELEASE MANAGEMENT
© — Since the start of Release 1c we have implemented. 122 release notes.
© A further 59 software fixes have been applied bringing the total to 135
since the start of MOT.
e@ The rate of problems coming into Release Management has reduced.
e — The siajor releases during January were as follows :
Cash Account Week Correction, Reconciliation Issues, Card Activation
Issues, Third PUN Problem, OBCS Reference Data Correction, Counter
Time-outs (System Parameters reset correctly), Various PAS/CMS Fixes
and Various DWH Fixes. .
2.3 BUSINESS SUPPORT
@ Many problems reported as a resitlt of lost transaction at terminal time-
out. A.fix for this is to be applied shortly and we should see a-significant
reduction.
e CBoS (Common Basis of Settlement) reports have nor balanced. since 16
December and in spite of Oracle fixes being applied che problem is still’
outstanding. This is seen as business critical within Benefits Agency and
from.30 January-they have startéd to raise A priority calls on a daily basis.
This is being reviewed urgently to determine the best. way forward.
2.4 BA & POCL SERVICES
e — Acommunications fault at Bootle caused the. Payment Card Help Line
temporarily to lose access to PAS.and CMS..A useful outcome from this
incident was that it provided the opportunity to exercise the fallback use
of the 2nd site at Wigan and for most of 29 January, PCHL were
successfully operating a 50:50 call:split across the two sites.
©. Tovaddress PUN quality problems De La Rue have strengthened their
production process with more.automation using.a Pitney Bowes machine.
No new problems have been identified but the situation will continue to be
monitored.
2.5 CUSTOMER SATISFACTION
e@ Customer dissatisfaction with the operation of the receipt printers was
again a significant issue. This problem will be completely fixed in
February.
‘e The report on the 1997 Management Care Visit programme has been
distributed to the Pathway Management team and to the PDA.
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© —_Initial.informal feedback from the POCL Research Services’ survey of 50:
Release 1c Post Offices (still 50 to be surveyed) is looking positive despite
the service problems we have experienced.
© The percentage of satisfied responses on Service Visit.Reply cards was
95%.
2.6 SYSTEM SUPPORT
e All SSC staff are.now based in BRAO1 but the work by CFM to complete
the build of the test rigs is still not completed.
. In January there were 277 customer calls opened and 283 customer calls
closed. February should show a dramaticimprovement.
2.7 MANAGEMENT INFORMATION SERVICES
¢ A lot of work has been done on.improving the data warehouse function
and SLAM MIS reports. Peter Robinson has again been heavily involved
with CFM NI. We now expect the‘problems to be fixed by April.
3. CURENT CRITICAL PROBLEMS
° None
4. ISSUE
° Quality of output from Data Warehouse.
° Oracle product quality -exceptions running at 5 per day !
° Late build of test rigs in BRAO1 for the System Support Centre and the
Operational Test Team.
° CAPS/Pathway interface.
5. PERSONNEL
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Quality & Risk Report
1. MONTHLY SUMMARY
FRM progress. FRM reporting for R1c has still not been achieved. The
complete Security / Fraud incident process is being developed including
incident management databases.
Risk Mariagement. Considerable effort in ad-hoc risk analyses to support
NR2 eg unauthorised encashments, roll out beat rate, resilience and
recovery, AP signing.
System Security. PCHL authentication remains an issue (broadened into
reconciliation) and will continue to absorb resource. Input into
specification of access requirements, cryptography and key management
procedures continues. The strategy and requirement for penetration testing
of the system (counter, centre and network) is under consideration.
Quality. Work has focused on sub-contractor issues from the migration to
and implementation of R1c.
Audit. It is now considered that the major issue is the quantity of data
required to fulfil the ATFS. Work has been initiated to identify the data
that is actually required ‘for audic. An ‘alternative’ design / architecture is
being considered. Concerns grow-around the lateness of Audit.
Year 2000 Conformance. ‘Joint’ testing-strategy with BA and POCL.is
being. considered. There are issues r~zarding the timing-of DSS compliance
programme.
2. PROGRESS
2.1 FRAUD RISK MANAGEMENT
2.1.1 RELEASE 1C
Further‘problems were identified in the FRM Release 1c-reporting which
again prevented production of trend reports. BPS MIS reports are also
affected. In order to recover the situation a full review and if necessary
rewrites, by CFM, of the reports has been scheduled for February.
Investigation of Reconciliation Fraud Procedure. This is now being
considered as part of a complete security / fraud incident process.
Impounded Cards PUNs and Temporary Tokens. A workaround
procedure has been implemented for Release 1c; the PDA supplies
envelopes and pays for the return of impounded items to ICL Pathway
FRM fori investigation. So Far baal a limited number of items have been
returned - all being “innocent”.
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2.1.2 NEW RELEASE 2
© Inability of the Pathway solution to identify Customer, EPOSS and BES
sessions. A Customer Session review is been scheduled for 5 February.
2.2 RISK MANAGEMENT
e - There has been significant effort involved in risk.reviews, both for the
RCD and elements of the. programme. These have included:
Unauthorised encashments during fallback. This was in
support of the PCHL atithentication gating item in the
RCD. As.a result of presenting to the PDA, it has been
expanded co encompass errors and omissions in
reconciliation.from fallback.
Roll out beat rate; to be completed.
Resilience and recovery.
AP signing.
2.3 SYSTEM SECURITY
. ACP (V1.3) is with the PDA for sign-off.
© Significant effort to provide further history of development and testing-of
the security solution for Mason’s Solicitors.
¢ The Pathway Security Breach Database and Security Breach. Reporting
system have been developed. The area-of joint security incident
investigation is being progressed with the PDA FSG.
2.3.1 RELEASE 1C
e A series of ‘briefs’ have been developed for Alliance & Leicester security
staff who will undertake work:packages on Pathway’s behalf. These
include processes for DPA subject access requests; collection, protection
and continuity of PACE related evidence; Security Materials handling.
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2.3.2 NEW RELEASE 2
Two.significant NR2 security gating items have been progressed during
‘January.
PCHL authentication in fallback. A risk arialysis and
technical.study have provided us with the assurance that
the risks of fraud directly related to spoofing are small.
This was presented to PDA and sponsor Fraud, Security,
Audit and Commercial représentatives. The perception
now is that there are’greater risks associated with under
and over payment (accidentally or maliciously) as the
result of verbal BES payment authorisations. Much
effort is now needed to develop the Pathway position
and contingency proposals.
A risk analysis paper was prepared and presented to the
PDA FSG describing Pathway’s perception of the risks of
not providing AP Signing at NR2. Informal response
accepts Pathway’s position.
Work continues on specifying the NR2 requirements for a.secure Sequent _ .
platform, including specific requirements around COSManager Security ie
Event-and access controls.
The design ‘for Key Management at NR2 has been issued to the PDA for
comment.
In liaison with the TSC Crypto Deve opment team, SEM requirements for ~
crypto code have been identified. A base line of events for recording has
beeri established and ‘critical’ events identified.
Tools for NT and Unix event monitoring (MARCH Systems) are being
considered.
Consideration of ‘unscripted’ or penetration testing has been kicked off.
This will involve a ‘counter penetration’ exercise as well as data centre /
network.
2.4 QUALITY
The. Ric migration DQA Improvement Plan has been prepared and
circulated to actionees for acceptance and completion dates.
Sub-Contractors:
A Post Implementation Review was attended. There is
universal recognition of opportunities for process
improvement and the need to secure these
improvements.
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Actions arising from the R1b to Ric Failures,Report
have been progressed with representatives of Celestica
(D2D), Exel and Peripherals Product Centre (PPC).
The Pathway approach to Quality has been.summarised for inclusion. in
future bid documentation.
2.5’ PROCESS MANAGEMENT
The. Asset Data collection process was:reviewed with [mplementation,
Exel, Celestica and CFM. The intention is to redefine and simplify the
process. A manual update of the current installed equipment database is in
hand.
2.6 AUDIT
Wigan Datacentre. The Audit PC’s are now correctly configured and
reviewed in-preparation for the joint. Audit Workshop, 12th February.
Development of the: Audit Function. A useful visit to A&L to pick their.
brains about internal audit and they have provided examples of
documentation. The development of the customer facing function
continues through the regular Audit Forum. meetings.
A high level audit plan for 1998 has been drafted. This will be refined and
a risk/sensitivity analysis applied to prioritise. It is very likely that
resourcing wiil be a problem, especially with the Q1 and possibly Q2
audits.
Reviews of:the Audit Design and Audit Architecture continue. There is
concern that thé-former is abstract and overly complex. The latter is a
much better view of how to satisfy the Audit requirements, but needs
reviewing:against the ATFS.
There is considerable concern at the lateness of resolution of the Audit
design. An alternative proposal is being formulated by 19" February, led
by P. Wiles.
During January it has become clear that one of the major issues facing the
audit design is the volume of data that would be collected if the ATFS
were fully implemented. An alternative approach is to retain only those
records that are material to the aidit-trail and filter out other ‘system’
messages. This. requires a detailed analysis of the operation of the business
stream down.to the level of the TMS transactions generated. An OBCS
Audit Trail Specification has been developed as a pilot. This approach also
serves to describe the internal working (for Audit) and the exercise needs
to be done for each.of the other business streams.
4
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The ATFS does not:cover the audit requirements for Pathway non-
Horizon business systems, eg: CCS, FRMS, RED, RODB. Given that
POCL and BA Auditors have already waved an audit flag at RED and
Invoicing, these requirements have to be identified, understood and any
development work planned in. This is underway.
MSQA#1. The first of the follow-up actions was progréssed with a two
day workshop session facilitated by Graham. Chatten.
MSQA#2. This is:uriderway (lan Honnor) and will be completed by the
end of February.
2.7 YEAR 2000 CONFORMANCE
Service Providers. CFM intend to include a risk statement with their plan -
Systems Management looks like being the highest risk. BT have now
provided a compliance statement.
The TSC Year 2000 Technical Testing-document has'beén reviewed. The
major issue is that the time slot proposed (in parallel with MOR/MOT)
leaves the risk that the Year 2000 BIT test, which has to run with’system cal
dates set forward, will fail e.g: incorrect Password expiration. The issues» a
have been‘raised. . *
Internal IT. The Oracle Financial System is not Year 2000 compliant.at its
current version..CFM have proposed to upgrade to the later/compliant 7
version, however the package is seen to be too complex for Pathway’s_ ;- Bi
business needs. It is recommende thar the decision date for the
replacement be brought forward from Q2/98 to end Q1/98. There is a
move to make Oracle Financials the preferred-accounting system ICL. wide
within UK.
‘The ‘DSS compliance programme extends well-beyond the timescales for
NR2 e.g. CAPS on-line and JSA will not be compliant until Oct 1998,
Branch Office infrastructure until Q3 1999. This has implications for end
to end compliance.
The strategy for end to end testing is’being disctissed with.BA and POCL.
The preferred approach is that it is handled by the individual organisations
and signed off at the interfaces, with a separate phase of network /
infrastructure testing. This is being discussed with Pathway testing.
3. CURRENT CRITICAL PROBLEMS
None
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4. ISSUES .
e Resourcing continues to be an issue. A fulliactivity analysis has been
conducted which has highlighted the shortfall. Recruitment of a Fraud
Risk Manager, Risk Analyst and Auditor has been approved and is-going
ahead.
e The slow progress of. Audit may result in significant exclusions from NR2
or programme impact.
e The PCHL authentication issue has broadened into. reconciliation, and
may result in the exposure of additional Pathway liability.
5. COSTS I
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Business Development Report
1. SUMMARY
e Nor surpfisingly, the BillPay initiative has not been taken up by POCL.
There were:three main reasons: the possible knock-on risk to Release 2,
the additional cost over and above APTs (Automated payment terminals)
and the uncertainty about the end-to-end reconciliation. Overall this is a
disappointment but I think the general view within Pathway was one of
relief as-it Could well have proved a distraction. However, we did gain
‘brownie points’ by at-least giving it our best shot.
. Social banking has now zoomed to the top of the priority list. This is
partially driven by noises from government but principally driven by our
own making in looking at what the BA might be considering down track
and identifying ways of pre-empting or presenting an intercept strategy.
Family budgeting (direct bill payment at the post office counter when
collecting benefit) is seen as the first step. We aré currently specifying a
prototype which I hope:to see in place by end March. Concurrently there
is work on-going with POCL and through them with che Utilities.
. Logistics Feeder system is still being progressed and remains the most
likely product to be included in Release 2+. The standalone EFTPOS pilot
proposal is being monitored. National Savings. awaits date confirmation.
e — Itis hoped to get sign-off to the Customer Education proposals by mid-
February. This still looks on track No major worms have crawled out yet
but... .
° Press activity is continuing. No week goes by without queries. from some
journalist. Government Computing have been the most active. Computer
Weekly is also sniffing hard.
° Special Interest Group activities have now taken place in both South West
and North East. Both events have beén.well attended and.a lot of interest
shown in the card.
. Martin Johnston’s work on A2As continues. We are.trying to apply more
focus to the higher priority A2As in order to dent the overall number of
those signed off.
e I continue to.be disappointed ar the lack of urgency in POCL rélating to
Client Mariagement and development. We know BA are looking for
alternative ways of paying benefit. BBC are now actively out to the market
for a potential complete licensing service provider - CFM are.involved.
DVLA have written to DTI complaining.about the high costs of POCL.
Until POCL change their way of applying all costs evenly across the client
products, the products will always remain expensive.
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© — Equally, I continue to be disappointed in POCL’s ability to push their own
cause in a pro-active way: Their approach to their ‘owner’ DTI has been
poor. They continue to write briefing documents rather than undertake
briefings.
2. PROGRESS
2.1 BUSINESS DEVELOPMENT
° EFTPOS (Debit Card acceptance) ! POCL has chosen to run an
independent pilot in a limited number of-offices,.in order to establish the
most appropriate, business rules to apply to a national service. Nat West
has been chosen by POCL to be the Merchant Acquirer.
e (LOGISTICS FEEDER SERVICE) Awaiting confirmation from POCL of
scope. of requirement (should non-value stock be included).
e National. Savings: Sales effort suspended awaiting delivery timescale
confirmation. Internal work continues.on defining a generic banking
solution allowing the Post Office to be used as an agent for all UK banks.
We are involving ICL Financial Services in the development of the
technical design.
e Family Budgeting: The specification’document for a.demonstration
version of FBS has been revised and circulated. Awaiting confirmation
that the service is technically viable.
¢ Meetings have been held with ICL sales people responsible for:
Entertainment and Ticketing (Millennium Event); BSkyB; Motorway
Tolling & MOT tests. Progress is being made on.all three.areas, with
miéetings set up with the clients to understand the potential opportunities.
¢ The Marketing Suite has been fully operational this month with 8 Client, 1
International-and 3 External presentations. Business Development has
entertained a variety of Clients, including the Department of Trade and
Industry and the Inland Revenue. External demonstrations of the Horizon
kit have taken place in Northern Ireland and Newcastle, in addition a
Roadshow in the North West supported by ICL Peritas has been
established to ensure high visibility of the system amongst POCL-staff.
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2.2 CUSTOMER EDUCATION
e Work started on the 1998 activities that will be required to support
national roll-out - in terms of-collateral production and the documentation
important’support process: some evidence of the work produced to date
can be;seen in the reception area at FELO1.
° Customer education proposals (916, 918, 919, 920, 968 and 932) and
timescales for implementation to support national roll-out to be agreed
and formally accepted by sponsors on 6 February 1998.'This is an
important event which will resolve an outstanding “agreement to agree”.
2.3 CUSTOMER RELATIONS
¢ — A meeting/presentation has been arranged with Ursula Grum, the Zonal
Implementation Team leader for Benefits Agency (South) and Tony Edge a
Territorial Director for BA on 6/2/98.
e — POCL have informed us that organisationally they have decided to have'4
x HIM’s (Horizon Implementation Managers who map directly onto 2
IPM’s) and 7 RLM’s. This appears as a top level announcement with the
detail to be finalised.
. 3m x.4m space has been reserved for us at the NFSP Annual Conference +2
11"*- 13" May in Bournemouth. 42sq m. have been reserved for our +
space at the Sub Post Office Exhibition at Wembley 10" and 11" October.
This sized area will again enable us to have-a joint Programme/Pathway
stand.
° Agreements between the owners has begun to be captured by their
signatures to the A2A Record Form although this has been on the less
critical A2A’s. The focus now is to provide assistance on the ‘Top 50”
where the agreement to six could clear a total of about 35.
3. CURRENT CRITICAL PROBLEMS
° — Getting some drive‘into POCL to make them aware of the need for change
both in their dealings with their clients and with Government.
4. ISSUES
5. COSTS
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International Sales Report
1. SUMMARY
2. PROGRESS
3. CURRENT CRITICAL PROBLEMS
4. ISSUE
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Organisation and Personnel
1. MONTHLY SUMMARY
¢ The positioning of the function to operate without a Personnel Operations
Manager in the short term.has required main focus on providing high
quality routine service. In addition, a number of important initiatives have
been launched (eg: Personal Choices) and this has been achieved by
maximising support from the wider ICL network.
2. PROGRESS
. The renewal of.freelancer contracts has progressed quickly and successfully
during January. In the area subject to significarit risk, T&I, the exercise has
reached verbal agreement stage with all contractors and written contracts
are in the process of being issued and formally accepted.
* In combination with the above, a resourcing campaign has been launched
to recruit permanent testing staff. Both external and internal
advertisements have been run. The early response, however has been
disappointing and-this remains-a,major resourcing challenge. Possible
contributory issues include a poor perception amongst target candidates of
the location of the ICL Pathway Programme (i.e. difficult commute to
work) and risk of committing perr: anently to‘a Programme organisation.
Recent press coverage of the Programme status will not have helped.
° Higher Skills now have.a presence at Fel01, three days.a week. Lewis
Cohen has been ‘focused on upgrading contact time with managers at ICL
Pathway to ensure responsive service and enhanced profile as preferréd
supplier
° Performance management, in the form of ICL Investing in People, is
rolling out as planned. Reviews are taking place and a ‘checkpoint’
quantification of progress will be made in the next couple of weeks. All
effort is being made to keep as closely as possible to-the Group roll out of
Performance Plus, whilst maintaining-sense of context for ICL Pathway
° Personal Choices has been launched. This has been generally well received
by staff, who’welcome.the inéreased flexibility in remuneration policy.
Many have attended the 6 briefing sessions, helping to answer the
numerous questions which staff have. The scheme has been found, by
many, to be rather complicated to understand
. The early retirernent option was communicated and this has generated
some.staff interest, There is no identified risk of needing to manage the
expectations of key staff who we would not wish. to leave the Programme
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3. CURRENT CRITICAL PROBLEMS
¢ As outlined last month, we are now running extremely lean within HR as
we seek to replace Melanie Lyng, Personnel Operations Manager, who left
ICL Pathway at the end of December. The result of an external
advertisement will be clear in early February and this remains a high
priority resourcing issue to be resolved. Without doubt, our normal
proactive service has been adversely:affected, but I.can confirm that
routine service continues to be delivered to a high standard
4. ISSUES
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The-Post Office - Client Director’s
1. MONTHLY SUMMARY
e The work to complete the Call Centres bid was completed inthe month,
resulting in successful shortlisting. The government.direct initiatives are
progressing, with the Post Office opportunity/role being built into the ICL
research and PR.
2. PROGRESS
2.1 PATHWAY
e The PO.view of government.direct is reportedly maturing, with PO
Group IS_ now recognising that their government.direct pilot
“genesis.direct” will prove little of néw value (given that itis at least 3
months behind the iFORMS equivalent’ work.led by Contributions Agency,
IR and HMCE with heavy Microsoft‘involvement). The Phase 2 scoping
of iFORMS is now underway with ICL involvement, with our offer to PO
Group IS to include PO on our terms being favourably received. However
the major issue within PO remains the level ‘of skills/ownership which they
will apply. We are planning how to raise, with the right people, the
importance to PO of future. new Govt business.
e The CAFExpress initiative has nov. developed, the presentation being
given a wider audience, and subgrour: in’place tackling Fraud, FORMS
and Local Govt. Smartcard remains difficult, with no obvious business case
or-sponsor yet in sight.
2.2 CALL CENTRES
. The Customer Contact Centres ITT response was submitted on time, with
the ICL team being put together from Call Centre technical and bid skills
in Kainos, together'with staff borrowed from ICL Enterprises. The
comprehensive proposal incorporates specialist telephony hardware from
Lucent technologies and specialist software from IBM Callpath and
Graham. Technologies. Following a first cut of bidders, we were invited to
respond (in 8 days) to a substantial Secondary Questionnaire, which has
succeeded in ICL being one of two shortlisted suppliers. The ICL
Presentation Day has been fixed for 27" Feb at SSL in Bristol.
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2.3 OTHER ACTIVITIES
¢ ' The ICE.response to the One Stop Shop Desktop. [TT was submitted by
Mark Newall of Tplc. Tplc are:shortlisted (one of:five with
ComputerCenter, Compel, GE Capital, SCC) - the reference-visit by the
; evaluation committee to Tplc’s premises in Warrington on.Feb.9" went
- well.
¢ The OJEC RFI ad for supply of architecture and tools for Systems
Management has been handled by CFM for Phase 1 and The Solution
Centre for Phase 2
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