ICL Pathway
Bringing
Technology
to Post Office
Counters &
Benefit Payments
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PA [REP/O23
Monthly
Progress
Report
ANN February 198
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ICL Pathway Pathway Programme Monthly Report Ref: PARED IONS
Version: 1.1
Date: 18/03/98
Document Title: Pathway Monthly Report - February 1998
Associated Documents:
Reference Vers Date Title Source
{1} PM/PRO/OD02 ~—«1.0-——-26/09/96 Pathway Programme - Project
: Planning, Reporting and Control
Approval Authorities:
Name Position Signature Date
J. H. Bennett Managing Director
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ICL Pathway Monthly Report
Contents:
E23 Managing Director’s Summary
& Programmes Report
ed Systems Report.
= Commercial and Financial Report.
ze Cc Requi R
a ustomer Requirements Report.
Customer Service Report,
Quality and Risk Report,
Business Development Report.
International Sales Report.
Organisation & Personnel Report,
Post Office Client Report
"
ta
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Managing
Director’s
‘Summary
and
Programmes
Report
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ICL Pathway Pathway Programme Monthly Report Ref: PA/REP/023
Managing Directors Summary Version: 1703/98
Managing Directors Summary
MANAGING DIRECTORS SUMMARY
e The operation service of Release 1c is stabilising quickly and for the
last three weeks no new serious issues have arisen. Benefit
payments during the month rose dramatically-and we now have just
over 20,000 people collecting their child benefit with a further
5,000 payment cards waiting for collection in the relevant post
offices.
° This has been a very heavy month of the development and test
teams and although they have made solid progress in many areas,
they have had to release two weeks of the total six weeks
contingency allowance. Weekend and three shift working has been
put.in place where practicable and the energy level remains highly
committed. On milestone terms, the first pass of the BIT testing
started on schedule on the 7th March.
e Fhe reorganisation work for the Horizon Programme team to take
over from the PDA has gone well and is on schedule for, the PDA
themselves to disappear towards the end of March early April. Care.
is being given to ensure our teams integrate as close as possible to
the Horizon Teams, particularly in the areas of Programme Office,
Testing and Implementation.
e Avery busy month has taken place on the promotional side with
key demonstrations and presentations across BA, POCL and to
ministers. Demonstrating how our system works is the best sales aid
we have and this now is effective both within Feltham and as a
mobile unit wherever needed.
° We are now in major dispute with POCL on the condition of their
physical estate. This has been building up for over a year and we
now have facts and figures to substantiate the argument that the
total cost for putting their estate into a fit purpose for automation is
on the wrong side of £40m. They appear to have provided no
budget for this, yet-their contribution needs to be close on to £20m.
° Commercial and contractual activity has been building up during
the month and there will now be an HM Treasury led review to
collect 4 total government wide picture on the programme and its
best way forward. This is a welcomed move.and we will be invited
to play:a full role in it.
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ICL Pathway Pathway Programme Monthly Report Ref: PA/REP/023
Managing Directors Summary Version: 1703/98
« We have also had the busiest month yet with the press with over 30
journalists seeking comment from us, culminating in ten different
news articles. We have been pushing hard for Government to get
on the front foot and be more positive about the programme with
little visible success so far. With the Treasury review imminent, the
civil servants’ want to keep their heads down. Our best route
forward will be:to work closely with Post Office Counters who.are
just a touch removed from this cultural approach. Even this though
will not be easy.
e Very good progress has been made with the German Post Office Bid
and we have entered the final run in a strong position certainly with
respect to technical competence. Short bursts of support have been
given from:many ofthe skilled people across Pathway, which have
helped project the strength and competence of the ICL Pathway bid.
Our. weakness is that we are not prepared to be as contractually
flexible as our-competitors and.are not prepared to'take on open
ended, high risk contractual terms. Our standing on this bid should’
be much clearer within the next four week.
e Weare also making extremely good progress with a Call Centre
Bid, lying elsewhere-within the Post Office Group. This is our first
initiative to generate more business for. ICL at large through the
Post Office as a key client. We are now close to a decision, which
could yield a£1m contract this year with more to come. In
addition, we are using this opportunity to link up more strongly
with further ICL interests at large for the Call Centres marketplace
and will try and tie this:together as strongly as we can within the
leadership from ICL Services.
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ICL Pathway Pathway Programme Monthly Report Ref: PA/REP/023
Managing Directors: Summary Version: 1703/98
PROGRESS
RELEASE 2 HIGH LEVEL PLAN
“—~"Reléasé 2 High Level Plan V3.1 5/3/987 es a a
Print Date: L7MARSE
: TIS TOSS
L )PSis ei AsM J JIA SLOIN ID J
Counter Applications
Development
[Agent Development
Host Development
Infrastructure Development
System Testing
{IDIT Test
BIT Testing
Acceptance Prep and Testing
End to End Testing
}}POCL End to End Procedure
IWalk. Through
Technical & Security, Testing
'IModel Office Rehearsal #1
Model Office Rehearsal #2
j Model Office Test
Contingency
:ICounter Migration 1¢ to NR2
!]Data Centte Clear Down and
Live Operation
Live Triat
Counter Procedures / PPD
:IProduction
' [National Roll Out Preparation
;IStart National Roll-Out
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ICL Pathway Pathway Programme Monthly Report Ref: PA/REP/023
Managing Directors Summary Version: 1703/98
GENERAL
e We are now working very closely with the CAPS operational team
to ensure that the boundary between CAPS and Pathway for
operational management is as tight as we can make it. This is an
outstanding-activity from the Release 1c work.and should make a
big difference for the next release.
e Anew planning baseline has been agreed with the Sponsors which
ties in the POCL and. BA milestone dependencies into an agreed
plan leading to October availability of NR2.
e This joint plan is managed and reviewed at fortnightly checkpoint
meetings and it is vital that we can demonstrate that we stick to
these dates.
© The main pass for system testing of APS and OBCS is in the final
stages and looks good. The same cannot be said for BPS and EPOSS
and these are under considerable pressure and are subject to
overnight/weekend attention.
° The requirements team have done a wholesale revision of the
requirements schedule, the. solutions schedule and the service
description schedules. This has been necessary in order to produce
an acceptance baseline which is now being worked on for sponsor
signoff.
. There are a number of contracting authorities responsibilities
[CARs] which we have had to reopen due to sponsor changes. One
of the most significant refers to the reference data.system from
POCL which is now on the critical path and is a main pressure point
between us and them.
° We have completed a lot of joint work on the implementation
activities, and in particular have done an extensive and thorough
survey of 100 Post Offices, some automated, some not.automated to
give us the true picture of the condition of the estate, which as
mentioned earlier, is worse than anticipated.
° Escalation of this rapidly through the Post’ Office Group must now
take place. We have at long last got the Customer Education
programme signed off by all parties, which is in fact very close to
our-original proposals. This could of course unwind if the pilot
implementation plans of CAPS goes beyond the current proposals
which have not yet been through change control.
° In business development terms we.are pushing ahead with thoughts
on social banking with tri-partite discussions in train between
ourselves, POCL and Girobank. Also we hope to prototype a
family budgeting system within the next four to six weeks, which we
see as a stepping stone between social budgeting and social banking.
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ICL Pathway Pathway Programme Monthly Report Ref: PA/REP/023
Managing Directors'Summary Version: 08 198
. We are now connected into the programme to be run by Financial
Services on the ICL dominance of the Smart card marketplace and
this is an initiative which'we shall support fully.
e On the Government.direct initiatives, we are getting close to the
next phase of IFORMS and hope to use the Café Express.initiative
to hold this together. So far it presents.well, but it now needs to be
underpinned by some demonstrator. This will require leadership
from the ICL Enterprises teams.
© We have a large number of freelance staff working in Pathway and
we have just completed a 2 month exercise to renegotiate their
terms and contract timings to ensure that we have the appropriate
cover through the critical programmes in 1998. This has been a
difficult plan but has worked as well as can be expected.
ISSUES
© The RCD signoff for NR2 is now dependent upon a whole serious
of PDA caveats. This has got worse with the introduction of Bird & ©
Bird as'their Sponsors lawyer and looks like being a difficult issue.
* CAPS have a major upgrade to achieve over Easter weekend for
their conversion to NILE1. All this takes place against the Release
1c product which we have ‘positioned as the swing release.
However, CAPS are ‘indicating that they are under pressure, are
using up most of their contingency and rather worryingly are
beginning to blame other parts of ICL.ié HPS, for failure of the
open TP software. We are managing this as carefully as we can.
° POCL counter space is well described above.
e The clearance rate on Agreements to Agrec is still too slow and
although this is difficult work, we require yet more management
effort to force these through.
e We are also facing a heavy load of change requests, a large
proportion of these continue to be internal. Atl management action
to press this down towards an acceptable have so far failed and
more attention is yet again being given.
. Problems with POCL Reference Data require careful rethink of how,
the enrichment process should work and one upside‘is to ‘find ways
of simplifying this process.
© — One lesson for Release ic is the-need for a solid end-to-end process
for reconciliation. Proposals on this are with the Sponsors and the
risk is that changes here will have an impact on products already
developed or in development.
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ICL Pathway Pathway Programme Monthly Report Ref: PA/REP/023
Managing Directors Summary Version: 03/98
e The migration of Release 1¢ to NR2 will be complex and our
proposals for this are now with the Sponsors for signoff.
. We must, over the next two months, finally resolve how to handle
the offices which will not have ISDN coverage. We are pressing
Energis to préss BT for inspection visits to physically check
availability. Although this is all agreed, progress is still too slow.
e The operation of Release 1c has exposed areas within the Data
Warehouse where our management information reporting is less
than adequate. These issues need rapid resolution whilst volumes
are still small.
© We have spent some time looking at.how the data protection act
affects our operations and.a plan is in place and a lot of work will
need to follow on from this.
e The possibility has arisen that ICL Pathway will need to.achieve BSI
registration as an acceptance condition. This-is being challenged but
work to achieve this goal clearly :is sensible and will need to be
included in all our activities in 1998.
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ICL Pathway Pathway Programme Monthly Report Ref: PA/REP/023
Version: 1.0
Systems Report Date: 17/03/98
Systems Report
MONTHLY SUMMARY
e A satisfactory month interms of product development, maintenance (fault
fixing), integration and the early testing phases. The recovery actions put
in place last month to bring the TIP interface.testing back on track and:to , +
accelerate the BPS test scripting exercise have been successful. We have
also succeeded in reaching an agreed position on the EPOS functionality
with POCL and have upgraded the product a number’of times during the
past few weeks.
. Inevitably, as we draw closer to the major testing phases, the pressure and
challenges increase. So far, we have been successful in mitigating all the
movements in the schedule and brokering these with the Sponsors.
Although we have completed a major purge on the amount of internal
change taking place, it remains a factor that represents the greatest risk to
the delivery schedule.
e — The technical integration phase of the life cycle, which has been subject to
considerable organisational and process change during the past few
months, is now working very well. The test rigs are being built quickly and
accurately.
° Release 1c continues to stabilise and consequently has minimised the
involvement of key design and.development staff in the support activities.
¢ A number of implementation activities are carrying on in parallel with the
development and testing stages. 100 surveys have been conducted and the
report concludes that the estate is worse than anticipated. A large amount
of work is necessary to bring the outlets up to the level required for
automation. The split programme proposal has still to be formally signed
off by POCL and we have embarked on a detailed risk analysis of the 300
per week national roll-out schedule. Seven roadshows held in the North
West have been supported.
° The manpower and hardware forecasts within the System Directorate have
been completed. These are now subject to the final management review.
. The sense of urgency and the morale in the team which began last month
has been maintained throughout February even though we did-not achieve
the results expected in some areas.
PROGRESS
e Anew planning baseline (version 3.0) was agreed with the Sponsors 1*
February 1998. This realigned with the POCL and BA activities factored in
earlier movements and reduced the Pathway schedule contingency from 6
to 4 weeks.
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ICL Pathway Pathway Programme Monthly Report Ref: PA/REP/023
Version: 1.0
Systems Report Date: 17/03/98
° Several updated versions of all the Benefit Payment System (BPS)
components were delivered into technical integration i.e. BES, PCDF,
Agents, CAS and PAS/CMS.
e The 1* pass of system testing for APS, OBCS, BPS and EPOS systems is
complete. The main pass for APS and OBCS is in the final stages and we
do not anticipate any problems. The BPS and EPOS main pass:schedules
are under pressure and these are receiving close management attention.
The Business Integration Test (BIT) phase commenced 7" Marck as
planned and the Direct Interface Testing (DIT) activities remained on
schédule.
e Progress on-the-technical, performance, security and systems. management
aspects of the solution was satisfactory, except.a delay to the start of
security testing. due to product integration problems. These are being
addressed as a matter of urgency.
CURRENT CRITICAL PROBLEM
e We have not been able to find an acceptable resolution to-the use of the
FAD code in the Pathway solution. Neither POCL or ICL Pathway can
afford the substantial costs or the time involved bringing the process in line
with the other.
* — The condition of the POCL estate is considerable worse than anticipated.
The work involved in bringing them up to a standard fit for automation is
both time-consuming and.costly.
* The design of the reference data enrichment process is under review. It is
currently too complex and time-consuming and there is a danger that it
could derail the entire delivery programme. Every effort is being expended
to stabilise the existing process while we evaluate the alternatives.
e The design team continues to suffer from the severe shortage of, skilled
resources. All recruitment avenues are being explored but with little success
to date.
ISSUES
e The migration from release 1¢ to NR2 is complex and requires very careful
detailed planning and thorough testing. We are still awaiting Sponsor
approval of the migration strategy document but do not expect any late
changes. In the meantime, work continues to determine how we can
intercept these activities into the existing plan.
e Work on the Audit high level design continues and we will not be able to
quantify the impact of any shortfalls in terms of development and testing
until this specification is complete.
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ICL Pathway Pathway Programme Monthly Report Ref: PA/REP/023
Version: 1.0
Systems Report Date: 17/03/98
e The financial end to end reconciliation processes for NR2 are still being
discussed with the Sponsors. There is a danger that late changes to some of
the products will be required. This is being monitored. very closely.
e The design. of-the Non-ISDN solutions i.e. Frime-relay, PSTN and Pathway
Light is still ongoing and there is a risk that the required work cannot be
accommodated within the existing schedule.
° The issue of ‘turnover’ training i.e. new staff in Post Offices has still to be
resolved with POCL.
COSTS
© The systems directorate is in the process of baselining their budgets for
1998. The detail has now been completed and is subject to final
management.review.
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ICL Pathway Pathway Programme Monthly Report Ref: PA/REP/023
i i i Version: 1.0
Commercial & Financial Report Date: 17/03/98
Commercial & Financial Report
MONTHLY SUMMARY
. Contractual and commercial activity has been gathering momentum - much
of it phoney war as yet - but there is now a harder edge to almost all
programme interactions with PDA and sponsors. Most communications; '
now have commercial and contractual content, and we all have to
positively look for any “got you” angles, which may be inserted. That
means everyone who deals with the PDA and/or sponsors.
¢ We have now consolidated the departmental “Budget” bids for this year
and into next. These Budget bids are against the latest NR2/NR2+
planning baseline. They show that to deliver NR2+ we will need to spend
more money and recruit more people than previously thought. We are
about to enter a period of financial reviews to ensure that we only spend
what we have to’to ensure success.
° Progress on A2As has not been as rapid as we need it to be to-be sure that
we have a solid baseline for the NR2 product. Closing down the top 50
really is an urgent priority.
° Likewise, a serious CP and CCN backlog has built up over a period of
months. The backlog is being attacked by Programmes office but their
efforts.still require more dynamic and timely support by individual CP
sponsors and impactors alike. We are at risk in this area and delay is not
excusable. In the majority of cases, these CPs and CCNs have to be done
for our own-reasons. Only a small minority are being driven by
BA/POCLs.
oe We await sign off of the RCD for NR2 but expect to have to do battle on
conditions which the Authorities are seeking to impose (PDA and Bird and
Bird have been busy).
¢ The counter space problem has been better defined and is more serious
than we had previously thought. We have gone on the attack with legal
letters, which make it clear that, beyond a certain point, we consider this
to be a matter for POCL to face up to (and pay for). The current
prognosis for an early and amicable resolution is not good. Meanwhile, we
need to be even.more creative and determined to find ways to address the
problem (moneys.aside).
PROGRESS
. A Controller’s report and February actuals are contained in the annex.
e — Aschedule identifying the cost of deferring subcontract work and products
(due to programme delay) is also shown.
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ICL Pathway Pathway Programme Monthly Report Ref: PAREP/O23
ji 7 - Version: 1.
Commercial & Financial Report Dare: 17/03/98
SUPPLIER COMPENSATION
Supplier Agreed Compensation Amounts Yet to Be Determined
Girobank £2.6m covering 1997 and 1998, Compensation for '98 call volume
payable monthly from February 1998 {adjustments from 1.3m calls f/c in July ‘97, to
lover 12 mths £816K @ 4.Sp/call over }16K calls f/c in Jan '98: £1.2m forecast
first 18.1m.calls (to approx 2002)
De La Rue Formula in contract preserves DLR's [1998 impact likely to be c. £1m
contract profitability, relative to
guaranteed minimum volumes.,£1:5m
claimed for 1997, of which £1.1m has
been paid. 1998 impact has been
reduced by "swapping" contract
volumes for 1998 and 1999,
Celestica (D2D)
Lump Sum payments re. 1997 already
made totalling £345K. Monthly
charge agreed for 1998, amounting to
£106k total for year.
£5.00 per counter price increase during
national roflout (= c. £200K toral) claimed
by Celestica (due inflation)
Sorbus/CFM DSD
(Continuation of Cost-plus
arrangements for project
management, field service, help desk
8 software distribution
£4.8m forecast 1998 charge roughly half as
much again for balance of the programme
slip £5.2m forecast 1998 charge
Original CFM Continuation of Systems Operate [Roughly half as much again for balance of
Service (Bootle & Wigan) during _Ithe programme slip
fallow” period
Energis Loss of anticipated rebates worth c. £1.6m
during rollout
Ithaca £100K price increase for 1998
shipments.
IAll Counter Eqpe
suppliers (as list
below)
in varying degress, equipment being purchased well in advance of our actual
requirements. £2.6m of interest charges whilst equipment is in storage. NB not
compensation but an-actual cost
McCann Erickson
£175K estimated, for prolongation of
contract
WL
Claim in for £2.5m
Exel Logistics
£20K retraining:and interest charges
c, 7.5% price increase anticipated, due
inflation (= c. £150K)
° Counter equipment suppliers: Fujitsu (PCs), Microtouch (screens), Ithaca
(counter printers), Devlin 8 Fujitsu Australia (keyboards),
° Welch Allyn (scanners), Epson (back-office printers)
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ICL Pathway Pathway Programme Monthly Report Ref: PA/REP/023
Commercial & Financial Report Version: 1703/98
KEY FINANCIAL DATA - FEBRUARY 1998
PROJECT COST ANALYSIS (£000)
Month of February Year to Date
Variance Variance vs.
Actual Vs: Feast Actual Feb F'cast Icl Budget
Revenue 20t 86 220 86 152
Direct Cost of Sales 1,450 (97) 2,934 (97) (272)
Gross Margin (Deficit) (7,249) (12) (2,714) (12) (120)
Opex:- Labour Related
Own Staff 568 (64) 1,085 (64) (45)
Freelancers 1,066 244 2,130 244 297
Travel & Sub. 42 8 68 8 32
ICL 1,234 36 2,173 36 105
Subcontractors
Other 581 207 1,333 207 43
Subcontractors
Depreciation 990 42 1,988 42 (679) ;
Marketing 147 19 169 19 (32)
Professional 157 (51) 275 (51) (77)
Other Costs 273 67 673 67 (112)
Gross Project Opex 5,058 507 9,894 507 (467)
. Interest Costs 672 20 I 1,288 20 89
Cost before Capitalisation 6,978 515 13,897 515 (498)
Declared’ PBT Losses 200 (70) 280 (70) (120)
Capitalised into Project WIP 6,778 585 13,617 585 (378)
Revenue was boosted by the invoicing of Change Control costs to BA and
POCL, but this was offset by a cost.of sales-overrun, mainly in respect of
Energis costs.
Operating costs were £0.5m lower than forecast. Main favourable
variances were a reappraisal of contractors’ bonus accruals, following
payouts in Test & Integration and lower than forecast development
charges from Oracle and CFM. Own staff costs were worse’than forecast,
due to the accrual for a 1998 company-wide bonus scheme, which had not
been included in the forecast. Professional fees contain high accrual levels
for costs from PA. and Masons. Other opex was close.to forecast.
Expenditure on The Deutsche Post bid continued.at a very high level, due
to the maintenance of the team at the Darmstadt trials.trials in Darmstadt.
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ICL Pathway Pathway Programme Monthly Report V Ref: PAREP/O23
i i i ersion: 1.
Commercial & Financial Report Date. 18/03/98
HEADCOUNT
February Variance vs -
Actual Feb. F’cast ICL-Budget
Permanent 120 (4) q)
Non-Permanent 141 (12) (18)
e Early take-on of permanent and freelance staff towards the end of the
month drove headcount numbers well above forecast.
BALANCE SHEETS (£000)
Feb. 98 Actual Split Total Feb. February ICL Budget
Actual Forecast
Op Co ‘Asset Co
Net Fixed Assets 3,073 34,236 37,309 38,867 36,720
Project Work in Progress 81,992 24,380 106,372 106,957 106,771
Other Working Capital (14,115) (710) (14,825) (11,908) (9,113)
TOTAL 70,950 57,906 128,856 133,915 134,378
Share Capital 19,999 1 20,000 20,000 20,000
Retained Earnings (868) 0 (868) (798) (563)
OpCo/AssetCo Balance 31,165 (31,165)
Group Pooled Borrowings 20,654 (1) 20,653 562 48,997
External Loans 0 89,071 89,071 114,151 65,943
TOTAL BORROWINGS 109,725. 114,713 114,940
TOTAL 70,950 57,906 128,856 133,915 134,378
Total borrowings were £5m better than forecast, due to a combination of
lower than forecast 'fixed asset additions and higher than forecast accrual
levels: The forecast drawdown of an additional £25m of Asset Company
funding did not take place at the end of ‘February, leading to a large mix
variance within overall borrowings.
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ICL Pathway Pathway Programme Monthly Report Ref: PA/REP/O23
; Version: 1.0
Customer Requirements Report Date: 17/03/98
Customer Requirements Report
SUMMARY
e The Customer Requirements team has completed the wholesale revision of
Requirements, Solutions and Service Definition Contract Schedules to
produce the Acceptance baseline. The Acceptance plan has been revised.
PROGRESS
DETAILED PLAN ACTIVITIES
RELEASE 1 / NEW 2
° Tony H has secured a Codes Files Definitions document from CAPS that
can be baselined for New Release 2 (NR2) addressing the quality issues
that prevent us from-automatically downloading data from DSS into
PAS/CMS at Release 1C and has agreed a method of controlling its
automatic download and update.
e Tony H and Dave H have sustained good working relationships through
the PDA End to End Business Process and CAPS functional specifications
reviews: I will shortly have to:sign off end-to-end process documents for
Change of Nominated Post Office, Card impound, Urgent card issue,
Urgent payments.
° We have raised six change proposals to BPS, which we fervently hope
completes compliance.changes for Release 2.
RELEASE NEW 2/3
e John D produced a revised requirements definition for “Soft” EVP, needed
to clear a new NR2 RCD hot issue. Opportunity was taken to simplify the
requirements considerably and this may spark some reaction.
e — Tony H has resolved the functionality provided for On-line PAS/CMS
enquiries - the routine 99% of enquiries will be over the CAPS interface
and the Help Desk used only-for complicated queries. He has explained to
the customer the PAS/CMS audit trail, which incorporates the Help Desk,
and call logging information and resolved the issue of FAD code changing,
getting this moved into a separate service.
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i Version: 1.0
Customer Requirements Report Date: 17/03/98
CARS
e . The CARs were brought up to date. I sent a letter withdrawing our
approvals for CARs relating to Reference Data. The subsequent muscular
correspondence has led to a letter to Tony O asking him to intercede with
me on the customer’s behalf. This issue will either resolve itself with
deliveries by POCL of satisfactory Reference Data by the end of March, or
will become a:severe embarrassment'to POCL if they miss either or both of :
the quality or the date.
A2AS
e We have progressed our remaining assigned A2As, 753 (EDS and
CAPS/CAS interface), and 891-2,5,8 (Reconciliation processes), to the
point where signatures should be possible.
CCNS
° The state of CCN 117 remains-unsatisfactory - now a year old! PDA are
trying to make out that the changes are no big.deal but in fact it
introduces: separation between Payment Card and Temporary Token
functions, customers of temporary interest, new agent-roles including
temporary agents, and impacts on service separation and measurement for
composite on-line transactions
e We have just received a further associated documentation pack for review.
. CRP76 - the reinstatement of the twice-removed, off-the-street, uncarded
casual agent facility: DSS will prevent POCL from using this facility as it
stands so we may offer the opportunity for use of a Citizen Card as a way
of getting positive value out of otherwise nugatory work.
e CCN 121 has been resubmitted. This introduces agreed Audit Schedules
missed at dropped down and-once rejected by us.
ACCEPTANCE
e The major single activity for the last two months has been the rework of
the Requirements, Solutions and Service Definition Schedules‘to form the
baseline for Acceptance. This has been sent to the sponsors as CCN 234.
“To achieve this baseline we have incorporated four unapproved CCNs
(which introduce related changes for CAPS On-Line, Temporary Tokens
and Restricted Post Office'Indicator) and which reflect the actual
implementation. This’places the sponsors under ever more pressure since
within six weeks or so they will be faced with approving Acceptance Test
Specifications which relate to an otherwise unapproved contract level.
e Some of the tensions between the customers over not resolving contract
issues are visible: one threatened to throw another into the River Ouse -
but only a threat though at this point.
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° The detailed plan for all Acceptance Test Specifications was revised. The
Marketing element has been broken out into a separate Test as it is well
advanced. The plan takes account of High Level Test Plan (HLTP)
production, actual and forecast. It allows for the. PDA to lodge “last
minute” criteria (thereby setting a limit) and has taken advantage of the
timing of the official Live Trial to stretch activities such as Trials and
Reviews and reruns.
e Since relieving the. PDA of the burden of having to sign off the HLTPs and
making it clear these were to be the basis of the Acceptance Test
Specifications we-have received latge-quantities of good quality PDA
comments on them. Must be a message there.
° Besides the Marketing Test being handled directly-by Anna Campopiano,
John Pope has joined and is taking over the related areas of Reference
Data, EPOSS, and TIP. A “Vanilla” Acceptance Test document has been
derived to make document production slicker. It is this month, March,
that the bulk of the Acceptance Test Specifications have to be originated.
. There are several “straggler” Feltham Business Threads (BTs) and HLTPs:
those for Audit, Migration, Reference Data will require close-in co-
operation between Requirements and T&]I.
MASONS
° Masons have advised on the-handling of the Reference Data CARs issue.
NEW BUSINESS SUPPORT
° Logistics Feeder Service - POCL are slow to respond to the BRD actions,
saying that the cut off is not-until later this year.
. Dave C has now received responses to his requirements specification for
introducing Talexus Smart Key, successor to Key Budget. Design &
Development are producing costings.
e Generic Functions - A difference of view is emerging between Pathway
Design and the French-Thorton consultant retained by POCL over the
level at which generic capability is designed into the desktop.
e John D presented to the management team the paper to extend the
contract into Citizen-centred services. It included the ISA area ‘which will
be in the Budget and a possible batting order of initiatives.
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OTHER TEAM ACTIVITIES
INTERNATIONAL SALES BIDS
¢ German Post Office: Dave H produced a work package description for the
high level design activity covered by the DM3.5m element of our proposal.
Two short visits to Darmistadt were made this month’to support the sales
effort, including a long discussion with the customer on development
approach and methodology. Various documents (Openframework
development-methods and DSDM) have been provided to the bid team.)
OTHER
¢ John Pope has joined the team. We need another urgently to handle the
Bracknell acceptance activities.
«Dave C attended the ICL EMU opportunities group and.an [CX
conference on Electronic Commerce / Digital Signatures and Trusted Third
Parties, and supported POCL discussion with British Gas concerning Client
Integration.
© Tony H liaised with Accord.
e Dave H gave a presentation to'Inland Revenue and EDS on Requirements /
Solution / Architecture, as part of the ICL sales campaign.
CURRENT CRITICAL PROBLEMS
° None
ISSUES
° None
COSTS
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Customer Service Report
MONTHLY SUMMARY
February showed a marked improvement in the operational service
performance and for the past three. weeks no serious new issues have
emerged. The new release of Riposte has fixed many problems and
customer feedback has been positive. Release 1c appears to be following
the pattern of IGL and is settling down into a reliable and stable product.
The number of. payments received in February was almost double those in
January which confirms that the BA is making progress in its card roll-out
programme. At the time of writing this report, there are 19323 cards that
have been activated with a further 4987 in post offices waiting to be
collected and 727 in production at De La Rue.
We continue to experience problems with the Data Warehouse data
updates and this is inhibiting our ability to produce management reports.
PROGRESS
OPERATIONS
Release 1C is now more stable and manageable.
The review of the CAPS/Pathway Operational Interface was published and
Martin Riddell presented this to the CAPS board. I am awaiting feedback
from this meeting from the PDA.
The Nile 1 upgrade is still on-track for the Easter week-end although there
are signals from CAPS indicating that their schedule contingency is being
consumed. The CAPS data migration activity that has to be performed is
very lengthy and its implementation is a tight fit into the four-days
available at.Easter. Any slippage from CAPS would seriously impact the
whole programme since there are few remaining opportunities to perform
this scale of task this year and they have planned activities on all of them.
Since the start of Release 1c we have implemented 203 release notes.
BUSINESS SUPPORT
There has been.a significant reduction in the number of lost transactions
and printer-related problems since the.new release of Riposte.
Business Support workload has moderated and we have.made excellent
progress both in clearing some of the-backlog and reconstructing the data
to the satisfaction of BA.
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BA & POCL SERVICES
e There has been some progress on the Royal Mail/POCL card package
hand-over process, following John Bennett’s note to Richard Dykes. A
service trial of the Pathway-defined process isto be undertaken in March.
e The IGL card migration exercise is coming to.an end. The residual IGL
cards will be stopped this week.
© — The old 0645 Payment Card Help Line telephone numbers were switched
off at the end of February.
° Demonstration versions of HICO (High Coercivity) cards have been
received from De La Rue and are under test.
CUSTOMER SATISFACTION
e The official report from POCL Research Services survey of 50 Post Offices
has been produced and has been distributed. Generally speaking the results
remained very positive. POCL now plan that detailed interviews will be
held with a further 20 Postmasters - we have provided input for the topic
list for those interviews.
° An analysis and commentary relating to service visit reply cards is available.
The percentage of satisfied responses was 96% - good service again from
ICL Sorbus.
SYSTEM SUPPORT
« Work by CFM to complete the build of the test rigs is still incomplete.
There appears to be a mismatch between Energis supplied ISDN and BT
supplied ISDN lines. CFM and the SSC are conducting an analysis of the
problems and a report is being prepared so > that sensible discussions can be
held with Energis and BT.
. Oracle support is still responsive.and their access path to the live system is
now in place but implementation is being hindered by security restrictions,
creating extra work for the SSC.
° The Known Error Log (KEL) is now being populated. We currently have
155 entries accessible via the ICL intranet which will be used to provide
access to the Horizon Systems Helpdesk and the Service Management
Centre.
° In January there were 214 customer calls opened and 300 customer calls
* closed.
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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.
° The MIS team continues to be frustrated-by the late and poor quality
output of the data warehouse. This is being escalated and we are
attempting to ensure that New Releasé 2 does not cause us the same
problems, especially as vastly more data will be sent to the Data
Warehouse.
CURRENT CRITICAL PROBLEMS
° None
ISSUE
¢ — Quality and completeness of output from Data Warehouse.
¢ Late build of test rigs in BRAO1 for the System Support Centre and the
Operational Test Team.
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Quality & Risk Report
MONTHLY SUMMARY
FRM progress. Reporting of FRM and EVP continues to be-an issue. The
former should be fixed in March; the latter is. being investigated. Progress
is being made on defining joint.investigation approaches for NR2 on.
Risk Management. NR2 analysis continues, and now includes Programmes
risks, the highest of which include design documentation, quality of
delivered software, T&I script production and impact of shrinking
timescales, acceptance and issue and resource management. The major
commercial risk is now'the state of the Post Office infrastructure.
System Security. Security processes continue to be developed, and the
requirements for NR2 including Security Event Management, secure
platforms and penetration testing. Data Protection Act requirements have
been identified and informed to us by BA and are being impacted.
Quality. BSI registration is a potential acceptance. Work is underway to
explore options for accelerating registration. This will have implications
for the development and implementation of remaining Pathway processes.
Audit. Audit architecture is ATFS compliant, and data requirements are not
as onerous as originally suspected. Work is now in hand to identify in
internal requirements. BA and POCL wish to conduct an operational
review of Ric - the scope of this is being discussed. Pressure continues to
implement the improvement actions identified by the MSQA’s.
Year 2000 Conformance. Major concerns now focus on Systems
Management, internal unit testing;.and also ALPS compliance.
PROGRESS
FRAUD RISK MANAGEMENT
RELEASE 1C
Production of Fixed Reports. Assistance has been given to ICL CFM
consultants in the production of the combined FRM/BPS MIS universe and
teviewing/rewriting reports. A suite of data should be made available in the
short term for distribution to the PDA early March.
Lost/Stolen Cards Report. These have been received by E-mail. Work is in
hand to implement a monthly automatic download onto the FRM PC in
Bootle. A number of anomalies have been found on the reports and a
PINICL has been raised with Oracle to resolve them.
EVP Report. It is not possible to produce the EVP report accurately and
completely; reasons and impacts are being investigated.
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° Investigation Support. A query from the PDA concerning a repudiated
transaction has been investigated. The volume of these queries will increase
as more cards are issued. Greater efficiency in obtaining the data through a
more appropriate. Business Objects Universe and easier availability of
Riposte data via the:audit PC should reduce the impact of handling each
query.
e Training Material for R1. A workshop was held with members of the FSG,
and OFI (Organised Fraud Irivestigation) to consider how to implement.a
pilot fraud investigation team. Good progress was made. In order to
improve the investigators effectiveness, it is planned to give a
demonstration of the FCMS and the counter functionality.
e Impounded Cards PUNs and Temporary Tokens.:-The R1c workaround
procedure is not 100% effective. During February six items were not
forwarded in the agreed manner. Further instructions have been sent to the
live offices.
NEW RELEASE 2
¢ Develop Extended Verification Process. Considerable effort has gone into
revising the EVP requirement document, as'required for the RCD. This
has resulted in a re-write of section 10. The document has been issued to
PDA for comment.
¢ FCMS Support. A review ‘of the HLTP has been completed, and response
to queries given.
e Review of R2 Procedures. Work has begun on reviewing relevant
documentation and a walk through of the procedures to detect non-
constructive instructions.
RISK MANAGEMENT
e = NR2 risk identification and risk analysis has continued, particularly in the
areas of:
Programmes; with risks identified against e.g. design
documentation, quality of delivered software, T&I script
production and impact of shrinking timescales, acceptance
and issue and resource management.
National Roll Out beat rate. A number of workshops are
being held to identify detailed risks and mitigation actions.
. The major commercial risk to the programme now lies with the state of the
Post Office infrastructure. A recent survey has indicated that about £40mn
is required to make implementation possible.
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SYSTEM SECURITY
° Security functional specification. The PDA have signed off at Version 3.0
with caveats around Belfast and outstanding documentation.
¢ Again, during February there was significant effort to. provide further
history of development and testing of the security solution for Mason’s.
Solicitors.
e Draft Pathway IT Security Standards have been created from the
Departmental IT Security Standards of the DSS (by which we are
contractually bound). The intention is to make the standards available on
the proposed Pathway Intranet Server with a BS7799 front-end.
e The Pathway Security Policy has been formally reviewed and is being,
updated.
e . A Data Protection Act audit report has been produced by C&LA. The main
issues have been presented to the Management Team, and workshops are
being held to impact FRM and Customer Services. Requirements for data
for Subject Access Requests has been received from CAPS. This will be
discussed at.a workshop in March.
° Security Breach Database and Security Breach Reporting. Issues-have been*
identified concerning the lack of security awareness within POCL (whom “4
we rely on for security event ‘notification’ in the outlets) and joint
investigations.
RELEASE 1C
. Security issues regarding the security of 3rd party supplier access to the >
system for support is being addressed (e.g. Oracle).
¢ Security Processes have been developed, including Sensitive Material
Handling, PDA Site Security and Horizon Security Pass.
NEW RELEASE 2
. Progress has continued on specifying the NR2 requirements for a secure
Sequent platform, including specific requirements around COSManager
Security Event and, access controls:
e March Information Systems have demonstrated tools for NT and Unix
event monitoring. It is proposed that March provide.a day of consultancy
to run their‘compliance tools on‘each platform (Unix and NT) to verify
our secure.standard configuration.
° Penetration Testing. The scope of this is being progressed, initially
internally but during Q1 with PDA. Admiral (CLEF) have been contracted
to undertake an initial scoping in order to prioritise activities
° Security Event Management requirements are being developed, to input
into the Audit Design.
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QUALITY
¢ BSI Registration. This may become an issue for Acceptance. Pathway
progress and current status has been reviewed with the ICL Account
Manager at BSI to explore possible opportunities for acceleration of our
Registration. Registration for a limited number of services appears
possible, if necessary to achieve early contractual acceptance. This puts
pressure on all internal functions to address process management and
control.
. Sub-Contractors:
A further review of R1b/ Ric migration failures has been
held. There has been good progress on process
improvement, but limited feedback from suppliers
concerning equipment failure modes.
1997 packaging / recycling information from
Implementation, PPC and Exel has been collated and
presented in the form required by Corporate Affairs to
support ICL’s reporting requirements.
PROCESS MANAGEMENT
e¢ Support has been given to the project to define the end to end
Implementation processes, including a review of activities and outline
plans.
e A revised Asset Management data collection process has been agreed.
Definition of information flows and detailed interfaces and audit and
correction are in hand.
AUDIT
e A first draft of the Audit Programme for 1998, based on the OMR has
been produced. It indicates that resourcing will be a problem, especially
with the high priority Q1 and Q2 audits.
* — Review Archive/Audit Design. The Audit Architecture has been reviewed.
An ‘Alternative Proposal’ was delivered as planned by P Wiles. The current
AA is ATFS compliant but does not contain Internal Audit requirements
for ‘Pathway non-Horizon business systems’. These are being developed.
e Product Audit Trail Analysis. The OBCS document has been reviewed and
commented on by BA. Preliminary analysis of the SADD has identified
about 20 business streams that also require detailed analysis. This is no
longer on the critical path (data requirements not as onerous as
anticipated).
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° Internal Audit Requirements. Requirements for Audit of Pathway non-
Horizon business systems, eg. CCS, FRMS, RED, RODB, has to be
identified, understood and development work planned in. This is
underway.
© Wigan Datacentre. The Audit Forum meeting took place on 12th February
and the Audit PC demonstrated with great success!
e — POCL and BA have indicated that they wish to conduct a R1c Post
Implementation Review (PIR). The TOR of this are being discussed, with
the aim of limiting the scope so that there is minimum impact on NR2
activities.
° MSQA#1. 2 major actions have been identified (both need ongoing
pressure to complete and implement):
Improve Baseline Management, Document Management,
Change Control processes. Underway.
Introduce Openframework concepts into Pathway
Development Lifecycle and documentation. Enterprise
consulting have been contracted to review TED, Online
Standards and a proposal.
° MSQA#2 has been completed and the report issued.
YEAR 2000 CONFORMANCE
¢ Product Suppliers. Compliance statements have been reviewed and a few
issues now have to be pursued. Progress has been made with Systems in ,
determining ownership of product suppliers.
¢ There is increasing concern at the lack of a definitive position for the
Systems Management product portfolio despite the efforts of CFM to
agree the position with the suppliers. This is being monitored closely.
¢ External Service Provides. Compliance policy statements have been
received from all major suppliers including D2D.
. Internal Testing. TSC are now attending to Year 2000 Technical Testing.
In the absence of any apparent unit testing, at least in some areas, and the
lack of host platforms for Y2K testing in. Development, there are concerns
as to the extent of Y2K compliance of the applications.
e DSS/CAPS. Dates for DSS compliance are beginning to emerge and it is
clear that their programme extends well beyond the time-scales for NR2
e.g. CAPS on-line and JSA will not be compliant until Oct 1998, other
feeder systems not until end August 1998, Branch Office infrastructure
until Q3 1999,
e — Network/infrastructure testing is necessary and the Test Strategy is being
defined.
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e ALPS compliance. POCL have written to us asking for a compliance
statement; there are several issues and SORBUS have been asked to re-test
for Y2k.
CURRENT CRITICAL PROBLEMS
. None
ISSUES
e Reporting of FRM and EVP continues to be an issue. The former should be
fixed in March; the latter is being investigated.
e Resourcing for Audit is becoming an issue, with conflict for time to
develop the function, conduct audits and define requirements.
e — The impact of Data Protection Act requirements still needs to be
determined.
e Presstire has to be maintained on improvement activities resulting from
MSQA’s.
e BSI registration may need to be accelerated for acceptance.
e There are issues emerging re the internal unit testing for Y2k compliance.
COSTS
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Business Development Report
SUMMARY
© — Major activity this past month on the press. Almost-30 separate
conversations. with journalists. 10 articles have. been printed. A positive
briefing note has been produced and shared with the-sponsor organisations
but with no guarantee of anything being done with it. I am finding myself
explaining to POCL people the real facts behind the press stories!
. The Customer Education plan and all associated-agreements to agree have
at long last-been signed off by the-sponsor organisations - a major
achievement on Anna’s part.
° Promotional events have continued. Demos/presentations to David Clark,
Chancellor of the Duchy of Lancaster, Andrew Lappin his political advisor,
Tony Edge, Director of BA, ICL’s Financial Services Client managers plus
14 other events. We have also supported POCL North West region in
seven events that they have run for their postmasters.
e = Work has continued with POCL in helping them to put their presentation
together for the-DTI. They are still very ‘reluctant’ to pick up the political
sphere and run with it. It seems to always defer to Group.
e Still maintaining good relationships with the Federation of sub-
postmasters. They still are maintaining a very positive outlook. Colin Baker
has written to Tony Blair and Ian McCartney asking for public support of
the automation programme and the support of rural post offices.
e Iam concerned that we are getting bogged down on A2As. We must
identify the critical ‘win’ areas and help the relevant managers to find
resource to help. Clearing A2As is more an internal issue.
¢ . Tony Lavery continues to make good progress on EPOSS, Reference Data
and principally Reconciliation.
. We now have a firm task to get closer to the account teams in POCL. First
efforts.at this last year were thwarted. However reception this year appears
better.
e Our Social Banking forays continue. There is now a tripartite discussion
group'with POCL & Girobank to better define-a possible product delivery
route.
e Counters have.now employed McKinseys'to look at their overall business
strategy. Originally this was to cover the 10 - 25 year strategy but has now
been expanded to start from current position.
e Another good session with Vanessa Leeson who continues as the possible
beacon of change. Chris Yapp accompanied me and gave more excellent
value in pointing out potential ways forward in the government influencing
arena.
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PROGRESS
BUSINESS DEVELOPMENT
EFTPOS (DEBIT CARD ACCEPTANCE)
e Stand alone trial due to start.in April. However there is still no.sign of a
project manager being appointed by POCL. We have written to them to
confirm our understanding of the trial and the dates for evaluation and the
potential dates for a Horizon implementation. A meeting is arranged for
23rd March to discuss the way forward.
L.F.S. (LOGISTICS FEEDER SERVICE)
° Requirement now Clearly understood. We-are attempting to get POCL off
the fence and finally to agree the requirement. Because a cut-off date is not
imminent, they prevaricate. We have written to put pressure on.and
received a typical response. However, discussions are continuing.
NATIONAL.SAVINGS
e _No further progress on this until a clearer position on dates-is known.
FAMILY BUDGETTING:
° We are currently developing a prototype family budgeting system, which is
planned to be demonstrable by end March. With this available, we can
enhance our demo systems to indicate the roadmap to Social Budgeting.
BILL PAYMENT:
e We continue to. forge better relationships with the Account teams in POCL
and externally with the bill payment clients. The concept of a roadshow is
back on the agenda.
GENERIC BANKING:
e We are awaiting feedback from Financial Services on the applicability of
any of their products for this requirement.
° Work is continuing with POCL on their definition of generic products. We
are making good headway.
CUSTOMER EDUCATION
e The programme plan has now been signed off by the PDA.
° Plans in place for the ICL Pathway senior management briefing.
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e The initial brief for the advertising agency has been drawn up and is
currently going through the rounds of the sponsor organisations and
Pathway.
PEOPLE
. Helen Gillet has departed - Greg Couper has moved in‘to take over the
role.
. Pathway Liaison managers will now be part of implementation but
providing a cross functional support role. Jacqui Haxton will move across
to Implementation reporting to Allen Prescott.
CURRENT CRITICAL PROBLEMS
. Maintaining a positive press line is vital. A significant part of this is
convincing the sponsor organisations to play positive. I am also looking at
how we can ensure better internal comms. especially in POCL.
ISSUES
COSTS
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SWEDISH POST
° Following recent meetings with Swedish Post they have asked a to host a
visit to the UK in May. Their current systems were supplied by [BM and
Digital but both are over 8 years old and no longer satisfy the business
need.
OTHER
° Portugal, visited us in February, ITT to be issued in July.
CURRENT CRITICAL PROBLEMS
e Resourcing for DPAG assuming we are successful with our bid.
ISSUE
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International Sales Report
SUMMARY
PROGRESS
DEUTSCHE POST AG
e For the last four weeks we have been. actively engaged. with Deutsche. Post
in the test-phase of their procurement. There are four bidders on the
shortlist, IBM, SNI, Digital and ourselves. During this period we have been
judged on our technical competence in the areas of, application
development, TMS, middleware-and our front-end functionality. There
have also been extensive negotiation rounds running in parallel to the
technical tests as well as an extensive number of presentations and
meetings with all of the key recommenders and decision makers.
© The final decision will be made later this month when the successful bidder
will be awarded a framework contract for the delivery of licences, fixed
price services and time and material workpackages. The contract life will is
likely to be for 10 years and will yield substantial revenues over this
period.
e In order to compete we have had to set-up a development and integration
centre in Darmstadt. This is supporting the activities running at Deutsche
Posts test centre some.3 kms away.
HUNGARY POST
. Following a yellow flag being waved by Digital and Samsung, (neither of
which could pass the earlier base set of mandatory requirements set out in
the ‘capabilities’ documentation) a court hearing was held to determine
whether or not Hungary Post were in breach of GATT procurement rules.
We just been to advised that following the recent hearing’a new ITT will
be re-issued in May 98.
DENMARK POST
e A call for limited tender has just been published.
e — The scope is for the letting of a facilities management contract covering
400 Post Offices with approx 1000 seats. The contract.will be awarded in
September 98 and will have a duration for 3 years with an option for a
further 2 years.
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Organisatio Date: 17/03/98
Organisation and Personnel
MONTHLY SUMMARY
. This is a busy month administratively, with bonus payments being
prepared for March payroll run. Resourcing activity is high. There have
been very positive results from the'recent freelancer contract
renegotiations. A Personnel Manager has been offered to.
PROGRESS
. The renewal of freelancer contracts has been-achieved. This has included
the spread of, risk, with sign up ‘to 6/12/18 month contracts as appropriate.
_ The exercise: must be viewed as a very significant achievement, resulting in
minimal attrition:and control of rate increases. Working to a laid down
process, line managers have played a crucial part in achieving the goal.
° Permanent resourcing is on the increase, to achieve the ramp up to roll-out
and -rebalancing:contractor/permanent ratio. The outsourcing
arrangements with Hays Recruitment are now bedding in and Jim Whelan,
Account Manager, is getting to know the Programme and is making good
efforts to tailor procéss to our requirements
° Higher Skills continue to 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
preferred supplier
° Performance management has been rolled out in a pragmatic fashion and
there has been a great deal of appraisal activity :
° Bonus arrangements.for permanent staff have been announced, including
resetting the Pathway Programme bonus. The 1997 Pathway bonus has
been concluded and all eligible employees have been notified individually
of their due amounts. This has been received enthusiastically (many did not
expect any payout), as has the announcement of EIP payments.
CURRENT CRITICAL PROBLEMS
. As outlined last month, we are still running extremely lean within HR as
we seek to replace Melanie Lyng, Personnel Operations Manager, who left
ICL Pathway at the-end of December. I am pleased, however, to be able to
announce that I have now made an offer to a candidate and that this has
been accepted. I will be able to share details within the next few days.
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FUJ00058169
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ICL Pathway Pathway Programme Monthly Report Ref: PA/REP/023
ieati Version: 1.0
Organisation and Personnel Date, 17/03/98
Organisation and Personnel
MONTHLY SUMMARY
. This is a busy’ month administratively, with bonus payments being
prepared for March payroll run. Resourcing activity is high. There have
been very positive results from the recent freelancer contract
renegotiations. A Personnel Manager has been offered to.
PROGRESS
* The renewal of freelancer contracts has been.achieved. This has included
the spread of risk, with sign up to 6/12/18 month contracts as appropriate.
The exercise must be viewed as a very significant achievement, resulting in
minimal attrition and control of rate increases. Working to a laid down
process, line’ managers have played a crucial part in achieving the goal.
° Permanent resourcing.is on the increase, to achieve the ramp up to roll-out
and rebalancing contractor/permanent ratio. The outsourcing
arrangements'with Hays Recruitment are now bedding ‘in and Jim Whelan,
Account Manager, is getting to know the Programme and is making good
efforts to tailor process to our requirements
. Higher Skills continue to 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
preferred supplier
« Performance management has been rolled out in a pragmatic fashion and
there has been a great deal of appraisal activity
¢ Bonus arrangements for permanent staff have been announced, including
resetting the Pathway Programme bonus. The 1997 Pathway bonus has
been concluded and all eligible employees have been notified individually
of their due‘amounts. This has been received enthusiastically (many did not
expect any payout), as has the announcement.of EIP payments.
CURRENT CRITICAL PROBLEMS
e As outlined last month, we are still running extremely lean within HR as
we seek to replace Melanie Lyng, Personnel Operations Manager, who left
ICL Pathway at the end of December. I am pleased, however, to be able to
announce that I have now made an offer to a candidate and that this has
been accepted. I will be able to share détails within the next few days.
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“Chi . Version: 1.0
The Post Office - Client Director Dates 17/03/98
The Post Office - Client Director’s
MONTHLY SUMMARY
e Following success in shortlisting, the Call Centres bid work continued with
a technical workshop run with SSL, a reference visit to Telecom Eireann
and preparation for the Final Presentations. i
° A number of government.direct actions have been initiated,.and two other
Post Office bids are in progress.
PROGRESS
PATHWAY
° Following the wide use of the CAFExpress material I have now initiated a
working group to focus on the iFORMS opportunity for demonstrating
ICL’s capability (and hopefully achieving some measure of thought
leadership) in the government.direct arena; and a Fraud group looking at
the total govt benefits fraud area including Housing Benefits. Both these
are under the auspices of ICL: Government, with Pathway representation.
e FS have finally picked up the ball on cross-ICL Smartcard activity, Dave
Cooke will be the permanent Pathway rep. The key needs for Pathway are
i) to establish the opportunity and the technical requirement and ii) to find
a viable business model. Neither of these look capable of a short term
solution, we should plan to be active for some time.
CALL CENTRES
° Following the completion (in 8 days) of the substantial Secondary
Questionnaire, shortlisting was followed by a one-day workshop with SSL
in Bristol, covering all technical and resourcing areas. Post Office are yet to
open dialogue on.t+cs, so the commercial requirements are still unknown.
However it is now clear that the 1998 requirement is predominantly
telephony based, thus removing the need for any complex SI this year and
reducing short.term risk. Our cost'proposals for 1998 are being revised
accordingly and the risks/revenue/margin options revisited. The first
teference visit to Telecom Eireann went very well; the second to
ScottishPower was snowed off. The third, to Beneficial Bank in
Birmingham is on March 16".
OTHER ACTIVITIES
e Following the Post Office One-Stop-Shop Evaluation Team visit to Tple in
Warrington on Feb 9" we have so far received no feedback while the visits
to the other bidders proceed.
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The Post Office - Client Director Date: 17/03/98
e — AST’s contract for PCs has not been renewed. Fujitsu and others are
bidding to take their place as a preferred supplier (alongside Compaq).
e 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. As expected the Phase 1 order will go to an incumbent
to complete the HP ITO implementation started 3 years-ago. I am more .
optimistic that.Phase 2 will open the opportunity to a new approach- we {
have proposed Tivoli. I
e A requirement for DCE_middleware is being handled by the DAIS team in
High Performance Systems; assisted by John Bell as account representative.
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