FUJ00058175
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ICL Pathway
Bringing Monthly
Technology Progress
to Post Office
Counters & Report
¥,
Benefit Payments (CL
July 1998
ICL Pathway Pathway Programme Monthly Report
FUJ00058175
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PA/REP/028
1.0
Date: 19/08/98.
(1)
Document Title: Pathway Monthly Report - July 1998
Associated Documents:
Reference Vers Date Title Source
PM/PRO/002 1.0 26/09/96 ~ Pathway Programme - Project
Planning, Reporting and Control
Approval Authorities:
Name Position Signature Date
J. H. Bennett Managing Director
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ICL Pathway Monthly Report
Contents:
i]
Managing Director’s Summary
sae Systems Report
= Commercial and Financial Report
zs Customer Requirements Report
—
= Customer Service Report
=) Quality and Risk Report
=_. .
2 Business Development Report
International Sales Report
=~
=
Organisation & Personnel Report
Post Office Client Report
et
il
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Managing
Director’s
Summar y
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{CL Pathway Pathway Programme Monthly Report Ref: PA/REP/028
i . Version: 1.0
Managing Director's Report Date: 19/08/98
Managing Director’s Sumimary
MANAGING DIRECTOR’S SUMMARY
We have now had further discussions with the Horizon Programme Office
with respect to the joint plan. The central concept is the de-coupling of
the BA Benefit roll-out plans from the POCL infrastructure/physical roll-
out. This is an acceptable approach from.a programmie perspective
although we have had to flag very clearly serious commercial and
acceptance issues which need to be handled separately but in parallel for
resolution. From a delivery perspective the programme plan now under
discussion is the best way forward.
Testing work on new NR2 did progress sufficiently well for Model Office
activities to start on schedule on the 3 August for the reset of the
environment. In addition business scripts have-started from the 10 August.
With BA not prepared to join the Model Office activities until the 7
September, we are still looking-closely and are in consultation with the
Horizon Programme Office to determine the. best matching of all our
activities to énable Model Office’in its entirety to complete by year-end.
Outline plans for this have made good progress so far.
The DSS Model Office testing of JSA CAPS continues to run without
problem.
On NR2+ we now have a targetdate of the end of August for a Release 2
Content Description (RCD) proposal to go from Pathway to the sponsors.
Agreement on this will then allow us to-confirm a target date for delivery
which currently remains January 2000.
The service performance of Ric (live in 204 Post Offices) continues to run
well.
The next key inilestoné on acceptance is to get-the Acceptance Test
Specifications all signed-off. This is a major challenge and will require
considerable activity and support from the sponsors.
Letters have been sent out from POCL to some 2,100 post-offices entering
them into the process to prepare for National Roll-out. The first 150 site
surveys of these post offices has now been completed.
HM TREASURY REVIEW
We now have some knowledge of the missing sections from the Treasury
Independent Panel report concerning their specific criticisms of POCL and
BA.
The Government Working Party report was finalised as planned on the 24
July 1998 and issued to ministers.
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e As previously reported a substantial Government re-shuffle was announced
on the 27-28 July with:new ministers being appointed within DTI, DSS
and HM Treasury.
° ICL sent letters to both the existing ministers and the new ministers
straight’after the re-shuffle was announced highlighting the importance we
attach to the programnie, our views of whére the programme should be
developed and the absolute need fot ministers to take urgent decisions on
this programme, ‘notwithstanding their new appointments and the
impending Parliamentary recess.
e Inthe event:four ministers did indeed meet on the 30 July without the
officials being present. This included Petér Mandelson DTI, Alistair
Darling DSS, Stephen Byers HMT and Ian McCartney from DTI.
e We now understand that this meeting did place further work to be done
particularly within DTI and the Post Office. This work was for the Post
Office to respond with regard to their long term business strategy, the
importance they attach to the move towards banking systems and how all
this fitted together with the implementation of the Horizon programme.
We have spoken to both DTI.and POCL to help where possible in the
completion of this work which led to a DTI report being produced on the
7 August to go to Peter Mandelson in DTI.
e The best understanding we still have is that ministers will try to reconvene
in mid-August (although there is no date yet knowii for-this) for them to
complete their discussions and produce a final recommendation to go to
the Prime Minister during the balance of August.
© A successful visit was held with the Social Security Sélect Committee on
the 27 July and they expressed enthusiasm about the system we
demonstrated and were impressed with its capabilities. We subsequently ,
followed up by providing them with more information.on the benefits of
the card based payment system compared.to any current achievable
alternatives centred around automatic credit transfer (ACT). We have
reason to believe the Chairman of the Select Committee supported out
views and has said as much to the DS$ Gabinet Minister, Alastair Darling.
e We were also able to have a successful demonstration of the system to
Dame Ann Bowtell, Permanent Secretary of the DSS in her office on the
28 July. Although she was-caught up in the middle of the briefings for the
incoming ministers, she never the less gave us a full hour of her time and
clearly learnt a lot more about the system. The other DSS officials present
were however more antagonistic.
e We have now had our first joint review with POCL.on the shaping of.a
banking system to meet their business requirements. This preliminary
mecting determined terms of reference for a two month study with the
output to be suitable for review by both Keith Todd, John Roberts and
Stuart Sweetman by the end of September. We shall need to push hard to
keep the progress going on this review and to ensure that it does come up
with an outline business case and an implementation plan.
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¢ A visit to, Pathway by the Chairman of the Government Working Party has
been arranged for Wednesday 19 August, and this is likely to include
members of the No.10 Policy Unit.
° In summary, the fundamental decision. for the Government.remains
unchanged which is, does it support the implementation of the payment
card system and does it continue to sce this as the best way forward for UK
Government at large taking into account the interest of.all parties.
ISSUES
° Maintaining progress on all Model Office activities.
° Gaining-full agreement from the-sponsors on the programme replan
through to National Roll-out.
e Achieving sponsor sign-off of Acceptance Test Specifications.
¢ Obtaining ministerial commitment-to re-structure the BA/POCL
"programme. -
° Entering commercial discussions on the restructured programme.
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ICL Pathway Pathway Programme Monthly Report Ref: PA/REP/028
Systems Version: 1.0
Report Dare: __ 20/08/98
Systems Report
MONTHLY SUMMARY
e The first half of the month was focused’ on resolving the problems
associated with the accounting aspects of EPOSS and rerunning the
appropriate system tests. The latter half was spent preparing the data
centre, communication network and other supporting infrastructure for
the first stage of model office testing due to commence 3“ August.
° We successfully completed the Direc: Interface Testing (DIT) with POCL
and the second cycle of Business Integration Testing (BIT). This completes
the functional interface testing activities with the sponsors but there are
three further cycles of BIT to run.in parallel with model office. In
addition, we-continued to support the CAPS Job Seekers Allowance (JSA)
model office activity, The second cycle finished 24" July and we are
preparing for the third cycle which is scheduled for completion 21*
August. There have been very few incidents with the Benefit Payment
software-developed by Pathway but we are unable to determine whether
this can be said for the Benefit Agency systems.
. Reference data continues to be a source of concern even though we have
received several updates from POCL for the model office. and live versions.
The end to end control of this critical data is not adequate but we expect
POCL to make viral organisational changes in August in an attempt to
address this issue.
¢ — The development team again found itself under enormous pressure to clear
the backlog of software problems b :t the demands of priority testing’and
the model office preparatory work prevented them from making the
desired progress. This is now the mosc significant issue facing the
programme.
. Progress on NR2+ has been patchy, design.and development work
continues on Soft EVP, Key Management System, CAPS Online enquiries,
AP Smart and PSTN but is obviously impacted by the concentrated effort
on NR2.
PROGRESS
° The design team finally sticceeded in securing agreement with POCL
regarding the detailed office migration processes and fallback and recovery
of benefit'payments in thé event of ISDN or PC failure. They have also
jointly résolved the FAD code requirement and overcome the temporary
Post Office closure problem identified as critical issues in previous reports.
A way forward has been agreed with POCL regarding the Style Guide and
apparent inconsistencies between scréen and keyboard.
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Systems Report Date: 20/08/98
° The development team cannot mect the deadline (17"" August) for
resolving all outstanding PinICL’s for the commencement of Model Office
Rehearsal 2 (MOR#2). Too many of the fixes would now not be available
until Model Office Test (MOT) which would run this risk of destabilising
the software baseline prior to this critical activity. Therefore we have
proposed an alternative schédule which allows for another cycle of the
model office rehearsal (i.e. MOR#3) without adversely impacting Live
Trial. POCL are considering this approach and we expect a response
shortly.
e The testing and integration teams continue to perform well and be
responsive to the ever changing needs of the delivery programme.
However, there are some signs of tiredness and lowering of morale as we
continue to be bombarded by ill-informed press articles.
° Progress.on the technical, performance, security and systems management
is steadily improving bur still more management effort is required on all
sides.
. The production of the PPD’s and the User Guides is on schedule. The first
draft version will be available for the first cycle-of model office. They will
continue to be revised during subsequent cycles, with the final copy signed
off prior to the start of model office test.
CURRENT CRITICAL PROBLEMS
° The volume of PinICL’s against the Counter and EPOSS software is
considerably greater than that which can be handled by the current
development team within the time remaining. An action plan had been
devised and is in the process of being implemented. It involves the
temporary reallocation of staff from other parts-of the programme and the
daily monitoring of progress for an intensive four week period.
° The quality and the change control processes associated with POCL
reference data is causing a considerable amount of rework for the
programme. This is delaying progress on a number of fronts and must be
addressed urgently.
ISSUES
+ The performance of the system and our ability to explicitly test certain
areas is causing concern. Some believe that the hardware and time
available is insufficient to confirm the behaviour of the system when fully
loaded. There‘is also a concern that the sponsors will require ‘proof’ of
compliant performance before giving ‘Acceptance’ rather than proof of
scalability.
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ystems Report Date: 20/08/98
e {ris now clear that the interception of the Pentium.2 PC and the flat
screen will have a beneficial impact-on:the ICL Pathway solution, in terms
of performance and presentation. It is therefore crucial that the delivery
and testing schedules fit neatly with the model office and roll-out plans.
¢ — The current test strategy includes the concept of ‘full case’ tests being run
in the Business Integration Test stream . This involves the amalgamation of
several producr/system tests e.g. benefit encashments, bill payments and
the sale of stock items. This is now proving'to be difficulrto achieve but
certain parts-of ‘Acceptance’ depend upon this activity. Alrernative
approaches are now being sought.
¢ The current architecture for the TIP interface module may not be capable
of supporting the entire network. The simulated tests suggest that it cannot
harvest the daily transactions generatéd by EPOSS and send them to POCL.
in the.overnight time slot available. Further work is beifg undertaken:to
improve the performance.characteristics.of the current product while an
alternative architecture is being proven in parallel.
COSTS .
° The budgets for the systems directorate continue to be refined and
regularly reviewed but are now being used to monitor expenditure on a
monthly basis.
byes
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j 7 Version: 1.
Commercial & Finance Report Date: 19/08/98
Commercial & Financial Report
JULY ACTUALS 1998
KEY NUMBERS (£000’S)
Te hay TOS Yearie Date Tend Tay 1088
aa Variances ve
Actual vs. Frcast. Actual July Feast “Budget”
TradingProject Costs: Revenue 3 (70) 37 470)) 173.
Project Cost batora Captatestions Ce) 987 56.035 967 739]
Deciared PAT Losses 7 2 1,163 2 (623)
CaehiBatance Sheet Business Operating Cash Flow (11361] 7 (65.756) az] qos]
Project WIP 147,628 5 (6.358)I
Not Focod Assets 37.702 I 53 «1.527}
Total Borrowings 155711 7 Gos]
End ot lay TSS
Vorancea
‘Headcount: Actual dilly Feast “Budge!”
Permanent 183, cl 8}
Non-Permanent (1s aid Tomporarias) rr ‘e) ros
{Momo}: Freelancers procured trough {CL IT Contracter Services 165 8 (53)
‘Most key pumbers were batter than forecast in July
Project costs were almost £1m lower than forecast, of which around £0 6k was due lo liming variancws on subcontract costs
‘Athough the lower projact costs were mare than matchaid by working captal movernents, there were lawer than forecast captal ations, leading to a favourable
borrowings variance of amos £0 Se.
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Commercial. & Finance Report Soe 08/98
JULY ACTUALS 1998
PROJECT COST ANALYSIS (£000’S)
Month of July 1908. Year to bale
‘Varisncas va
Actuat_I va Feast Actual TulyFeast_[ “Badger”
Reverua 13 @o) 387 qo) 173
Direct Cést of Sates 1.693 el I 10,802 63 1.506)]
Gross Margin (Defict) (2.680) id 110,415) (a) (1.433)
Opex- Labour Own Statt m 102 4441 102 ea
Travel & Subsistence 61 . 298 :
Freelancars 1761 128 10,025 126 (9.782)
ICL Subcontracs 376 199 asi2 199 (623)
Other Sudconiracts 816 475 5.298 475 42]
Depreciation 4.123 12 7.370 2 (1,883)
Marketing 7 “4 3a “ 318
Professional 153. (6 1,000 64) (296)}
Other opex 356 id 2.452 7 (450)}
Gross Project Opex EIA] eal 39778 a (ES)
Interest costai(income) 1,009 7 5,842 «7 (168)
Cosis before Capitaisations: <x) Sr 3035 30 T7538)
Declared PBT Losses oF z T65 z Ca
Cepitatsed iio WIP during year 1,766. 55, sag72 955 6.15)
Revenue was lower than forocest due to the lack of invoicing for change control work: this should be rectified in August.
Deect costs ware close to forecast and virtually all categories of opex expenditure also recorded favourable variances. The only exception was legal costs
‘where accruals tiave been maintained ata high level in view of current activities,
Payrol related costs - for both permanents and freelancers - reflected tha lower than focecast heaacount numbers whol
the sub-contract areas were mainly of aiming ralure, paticfaty inthe areas of suis raiser trom Oracia to CFM, The frst month of roviaed inter company
wading arrangamants was slightly more favourabie to us than forecast. Net experxilure on imtemationa! aciwities was clase to forecast in the month, but
{ho profile of come and oxpencilue in his area is going la chango,fllowing te award of consultancy work in Nambia
aving’s against forecast in
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JULY ACTUALS 1998
HEADCOUNT
Ena ay
Permanent Headcount Venancss vt
cust [hay Feast I Buger
Sysiems (excl. plementation) 2 ‘6 Gi] Recretment of permanent sil til aps behind
Implementation 3 5 (3)] forecast assumptions, paniculary i ha systems
Customer Service 43 a (4) area.
Ailotnet dopettmenis “8 3 3
iw Ed 7a
Era THE
‘Non-Permanent Headcount Wanda va
pow Say Fess [ease
Industrial Trainees and Temporary Staft a [S) {1}] IT ere being used as # cost effective altemative
to heelancert whefewerfossble, and ther rurnbors
Fedslancers sourced through wall in uy bocavee ot 8 combination of ear,
ICL IT Contractor Services intake and overap wet outgoing ITs,
124 6 (40)]
3 2 1
Sev 8 3 2
All other departments: B fe) (16)
‘Totals - Higher Skills Freelancers: 166 8 153)
‘Totals - Non-Permanent Staff 179 2 (64) . -
Grand Totals a) ES . *
‘
Es
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Version: 1.0
Dare: 19/08/98
JULY ACTUALS 1998
CASH FLOW (£000'S)
Inflowal{Oxtfiows)
Not Project Costs - capitalised into WIP
Project costs token siraight to P & L
Depreciation
‘Moverient in ciier Working Capital tems
Fixed Asset Additions
Business Operating Cush Outflow
Openizig Nat Borrowrigs
Closing Net Borowings,
ont ay 1388 — Yeu to Dae
‘Vanance Variance
Acuat_I_va:Feast fri [hay Feast [Budget
7768) 955 (54,872) %s 915}
(97) 2 41,163) 2 623]
1123, 12 7370 12) 1,863
3889) (1,133) (agi G33) (1,363)
(733) 685 (2.720) 65 (3.388)
ED) a ESE a oe)
Tae g BIS o aaar
356754 a7 155.711 a7 (6.055)
BALANCE SHEETS (£000’S)
Not Fixed Assets
Project Work in Progress
‘Other Working Capital
Totals
Share Capel
Retained Earnings
Group Pooied Borrowings
Extamal Loans:
Total Borrowings
Totals
Tay 1358 - Pathway Talat
Tay Tay Tel
Aciai I Forecast I “Bigger”
7702] 38355 36,175
147/628) 148,583 141.270
(3370) (12.503) e731)
Tse] Tas TeaTia
20000] 20.000 20,000
C750) (1.753) (943)
(2978) (2.496) 70,748
15689 I 158.586 73.809
185.711] 186,188 I 149,657,
Taso] 174235 years
Tho law than forecasl project cost in July
‘vere fly reflected i davérae working capita
vorioncos
‘Tho improved cash flow and resutent lower
borrowings levels wera due entirely to the
lower fixed assot additions
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- Version: 1.0
Customer Requirements Report Date: 19/08/98
Customer Requirements Report
MONTHLY SUMMARY
e The Acceptance programme moved forward with the publication of the
last Acceptance Specification (AS) and many ASs were published for
approval. Some progress was also made towards-gaining such approvals.
The Acceptance Criteria database was reworked for the current setof ASs.
e The team has-reoriented to handle both the New Release 2 (NR2)
Acceptance and the business-sensitive PinICLs (incident reports) in
tandem. The goal is to. gain Acceptance approvals subject to agreed
Known Problems as a matched set.
e In addition, Requirements work on post-NR2 Releases has progressed.
DETAILED PLAN ACTIVITIES
NEW RELEASE 2
° The Model Office Rehearsal scripts wéré reviewed, and issues defined for
clearance before the MOR started.
e A further, albeit only documentary, change to the NR2 CAPS interface
definition was handled.
° The issue concerning the use of the: FAD code.as-the unique outlet identity
has been resolved for. the present, in. the manner that Pathway had
‘proposed: changes must be few and handled by closing and reopening
outlets, The projected volumes of.changes are'well within our capacity for
adopting this approach. POCL still assert the right to adopt a wholesale *
reorganisation of FAD codes in which case we will need to déal with the
problem if-it arises,
¢ DSS Reference Data: data.for post offices and benefit offices will be
maintained-automatically via the download from DSS. All other data will
in principle be:static for the duration of NR2 and subject to the Change
Control process. This static data and the Feeder Benefit Systems / EDS
end-té-end process will be documented.
e Tony H has secured agreement to his Functional Specification for CAPS
Contingency Payments.
e The PinICL traffic is just beginning to build up. Several have been dealt
with, mostly clarifications of encashment rules and encashment reporting
and some have required follow-up on business rules with. Horizon or
CAPS.
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RELEASE NEW 2+
° A new version of the SADD, Version 5.1, was output for customer review.
It distinguishes the few points.of functionality that are not required at
New Release 2+. Looked as a definition of what is not delivered at NR2
it paints a particularly encouraging picture.
. Two new versions of the Security Functional Specification (SFS) were-
output, Versions 3.1 and 3.2, the latter being a customer review level.
° The Access Gontrol Policy (ACP) is in course of revision.
e — Joint CAPS/PDA/Pathway reviews. continue to work well and are now
directed towards NR2+, although we expect some 1C to migration issues.
e Discussions with CAPS on possible application of Hopewiser to.generate
delivery point suffix-data have not progressed; there may be a possibility
to run Within CAS as an alternative.
CARS
e No CAR work this period.
A2AS
e Requirement 545: The APS Service Overview has been issued. When
POCL have added:some material on POCL Audit this A2A will be
complete.
CCNS / CRS / CPS
e Tony H sponsored several CPs and raised several CCNs in-response, on
behalf of CAPS, as part of the push to get Contract Controlled documents
up to date.
e We maintain our position on CP1286/1385, keyboard changes, that every
effort should be made to avoid changing engravings.
e The HAPS Disaster Recovery proposal has been issued via CCN
e Revised Requirements Schedules were received for changes relating to
CCN 117. A preliminary review indicated a few that were unacceptable
and.a more thorough review will be conducted.
e — ACP was raised to specify the requirements for SLA reporting. for CAPS
online transactions.
ACCEPTANCE
e [For a blow-by-blow report on the progress of this area attention is drawn
to weekly reports.]
e There are signs of positive co-operation in.-some POCL and general areas
but DSS are still very much at arm’s length.
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‘, Version: 1.0
Customer Requirements Report Date: 19/08/98
e — Security: The plan is to obtain recommendation approval for the AS by.
21/8/98. An updated version of the ATS is with the customer. The AS has
been maintained for three HLTPs that have been updated.
. “Service Levels” (Performance): Responses to a second tranche of
comments were completed. Changes in the HLTP support for this area are
* in the works.
e OBCS: Approval recommendation achieved.
e APS: Awaiting approval recommendation, expected momentarily.
. EPOSS: AS published, no response. The customer claims there is no
resource.available. I have discussed this with Colin Oudot who is hiring
additional staff for this area.
° Ref Data: AS published, no response.
e — TIP: ‘It now seems likely that the basis of Acceptance will be Direct
Interface Test (DIT), which has basically been achieved already.
e POCL Infrastructure: Revised with a small number of points outstanding.
The main issues are going to be those-which are really-manifestations of
some customer staff’s need for technical assurance — interfaces, scalability,
performance.
. BES: Issued for approval. This was a big exercise, incorporating all
comment received and including HLTP scenarios.
° PAS.& CMS: Revised specifications are with the customer. Yet a further
tranche of comments hasbeen received.for CMS, evidently sat on for some
weeks; I will take the opportunity to give the customer a roasting.
Unfortunately the comments are from CAPS and have real value as
compared with those from COBAP.
. DSS Interface: A final tranche of review comments from CAPS are
awaited. These are not expected to be difficult.
¢ The DSS are unlikely to sign any of these documents off until they have
copies of every document set out'in the Associated Documents list, and
every HLTP has been updated and baselined.
* Audit, End-to-End, Policies & Standards, Schedule C3: This group of
general specifications-was published for recommendation approval.
e — Reconciliation: A sometimes difficult review of the second version of this
was held and a third version will be required. I expect this to be a most
difficult area.
¢ Acomplete rework of the Acceptance Test Database for NR2 has been
achieved using data from the current Acceptance Specification documents.
About 15 criteria in.obsolete categories, or duplicating other entries,
remain to be dealt with.
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Customer Requirements Report Dare, 19/08/98
NEW BUSINESS SUPPORT
© EFTPOS: We have now started regular meetings with POCL and
NatWest, their Merchant.Acquirer. Dave C has produced a Statement of
Requirement for them. We expect to inyite Retail Logic, our preferred
Host software.supplier, to future meetings.
e LFS: Some progress on completing and agreeing the drafting of the LFS
Schedules. Final versions or final comment reviews are now in place and
this should give us a complete of schedules.to support:the CCN in the next
week. The only outstanding‘issue is a final commercial review. This could
remove SLA. penalties in return for a price reduction.
OTHER TEAM ACTIVITIES
e A couple of days assistance was provided.to International in support of the
Hungarian post office, including presentation and workshop activities.
e DCH chaired the Workflow Management Coalition téchnical standards
meeting this. month and is.a contributory author to a recently published
book on workflow and image processing.
© Margaret Gordon visited Requirements as a follow up on her earlier talk
to Pathway on the forthcoming Data Protection Act.
CURRENT CRITICAL PROBLEMS
° None.
ISSUES
° HLTPs for third party Security testing must be rapidly put in place.
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ICL Pathway Pathway Programme Monthly Report Ref: Pe RERIO2
Customer Service Report Dave: 19/08/98
Customer Service ‘Report
MONTHLY SUMMARY
© — Service, performance in July continued to be generally good despite an
alarming'rise in. the ingenuity:shown by post office staff attempting to
improve their transaction times by accelerating the flow of paper through
the receipt printer. Some counter staff are removing receipts from the
printer before printing has finished. The consequence of their action is that
the transaction is incomplete and can give rise to subsequent duplicate
encashment. Urgent attention is being given to resolving this operationally
and. by improvements in the application code.
e We failed to achieve the BA target for transaction reconciliation errors.
Incomplete transactions (formerly described as'incomplete: transactions)
continue to be the main cause of concern. Our performance in July was
0.11% of transactions generated reconciliation érrors. Although this is
very disappointing, the BSU is in command of the situation and several
software fixes are pending that will prevent most of these occurrences.
RELEASE 1C VITAL STATISTICS
Installed base :
204 Post Offices
334 counters
e Number of Cards issued 35,997
° Number of Active Cards in use . 29,191
° Total number of BES Counter Transactions 430,263
e BES Counter Transactions in June 69,241 _
* Total value of Benefit Payments received £13.8m
e Value of Benefit Payments received in June £2.6m
¢ Total value of Benefit Encashinents made £12.9m
. Value of Benefit Encashments in June £2.1m
° Total number of OBCS Transactions 4.8m
e¢ — Number of books impounded 14,674
e Potential fraud avoided. > £2.1m
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Customer Service Report Date: 19/08/98
PROGRESS
OPERATIONS
e The performance of our Sequent‘platforms-continues to be a concern and
is being monitored very closely. I shall be visiting them in August to review
progress.
e The Energis network has also continued to be problematic although I am
now much happier that the underlying root.cause of the congestion
. problems we experienced has been discovered and rectified. Energis have
admitted that their Wadden-2 switch (secondary overflow route for the
South of England) had not been configured correctly for Pathway. A
complete audit of the whole Pathway/Energis network configuration has
- been initiated and-should identify any other problems well in advance of
Operational Trial.
e An Operational Readiness Review (ORR) of ICL Outsotircing was held in
July. This was a major review encompassing all of theit contracts with
Pathway. I was encouraged by the completeness and quality of their
preparation for this but a number of issues were raised’ which have now
been included in the risk register. Review meetings will now be held
weekly as we enter the Model Office stage and get ready for operational
trial.
e —_ Reference data management-is still high risk and is likely to remain so until
we have gained practical experience through Model Office. and live pilot.
BUSINESS SUPPORT
e The BSU continues to work well and again has been able to reconcile all
transactions within SLA time-scales. Unfortunately we failed to achieve the
volume SLA for transaction reconciliation failures. This was entirely due to
the increase in human error and misoperation by post office staff. The BES
software at R1C is insufficiently resilient to human error. Similarly, our
training programme and counter procedure documentation needs to be
strengthened.
e We have reviewed the emotive issue of ‘lost’ transactions with POCL.and
have agreed that henceforth they shall be known as ‘incomplete’
transactions. The term ‘lost’ will in future be confined to those
transactions that-are performed at a single counter office that loses all of
its filestore at a time between connections back to the correspondence
server. These transactions are genuinely lost from the system and must be
re-input by post office staff.
BA & POCL SERVICES
e The Energis network failure caused several duplicate transactions.
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A Version: 1.0
Customer Service Report Date: 13/08/98
ORRs were held of De La Rue, Royal Mail and Girobank in preparation
for NR2 Model Office. All are performing very well.
De La Rue is planning-a building move around Easter ’99 and they have
been careful to involve us in their planning process to avoid problems at
the start of National Rollout.
CUSTOMER SATISFACTION
Feedback from Manager Care Visits and Service Visits continues to be
good.
SYSTEM SUPPORT
The SSC is now heavily involved in preparing for Model Office support.
INFRASTRUCTURE SERVICES
(MIS / PROCESS ENGINEERING / PERFORMANCE / IT)
It appears that the information received from.BA on their Benefit
Migration plan was not presented clearly.and was therefore #
misinterpreted. The problem has now been resolved.and Peter Robinson -
has been able to re-forecast card volumes. These are-now approximately in ~
line with our expectation and reflect the slippage in the programme plan.
A useful meeting was held with POCL:and Horizon-to address the Printer ¥
Time Benchmark. Ithaca presented a very good picturé of their printer and
we were able to convince POCL that there is no risk. of printer
performance degrading with age. We await their final conclusions but J
expect they will drop their requirement to.measure each receipt printed, *
CURRENT CRITICAL PROBLEMS
ISSUES
None
None
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ICL Pathway Pathway Programme Monthly Report Ref: PA/REP/O28
, ; Version: 1.0
Quality & Risk Report Date: 19/08/98
Quality & Risk Report
MONTHLY SUMMARY
° FRM progress. POCL have raised. 2 issues regarding the targeted EVP
CCN - manual entry after card.reader.failure and multiple EVPs at a single
session. No suspect fraud incidents have been reported. ,
° Risk Managertient. The Programmes Risk Register for July shows no
reduction in the overall; NR2 design and development risks are
decreasing, testing risks increasing. Acceptance risks remain high and
NR2+ risks are surfacing. The joint National Roll Out Risk Register has
been completed and procedures for-reporting and monitoring agreed.
‘e System Security. Progress continues:to be been made with development of
procedures, preparation for Release 2 and definition of penetration
testing. Delivery of NT access controls is late and may raise R2
authorisation issues. Other issues that.have arisen include transmission of
personal data in clear over the ICL network, and access to Government
data from outside the UK.
e Audit. Progress is being made with developing standards and procedures
for Release 2: Issues are beginning 'to arise ‘around the Acceptance Test
Specification and actions taken to speed up the review process. The
delivery of the solution remains a high risk. :
° Year 2000 Conformance. Issues are beginning to surface with 3 parties,
which are being monitored closely. Business Continuity risks are being
identified and quantified, with the objective of developing a Contingency
Plan.
PROGRESS
FRAUD RISK MANAGEMENT
RELEASE 1C¢
° During July no-suspected fraud incidents were reported.
e — Ananalysis of irregular encashment patterns is due on the 5" August.
NEW RELEASE 2
e The user testing of FCMS has been delayed by two weeks.
© The NR2 reports were reviewed. Concern. was expressed at the quality of
a.number of thé:repofts some revisions have been requested from CFM.
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‘ . Version: 1.0
Quality & Risk Report Date: _ 19/08/98
° Quarry House (Leeds) as the site for the BA FCMS PC’s has been
confirmed. However BA Security are having difficulty in. securing
accommodation there and therefore surveying of the siteshas-not yet been
undertaken.
e — Progress.has been made with FRM security and FCMS administration
procedures.
e CP1296 has been raised regarding card detail checking at the counter and
a workshop. held.to explore‘issues. As‘a result,: further CPs have been
raised for NR2 and NR2+.
NEW RELEASE 2+
° CCN243. for Targeted. EVP continues:to bea problem. POCL have-raised
2 issues - keyed entry volumes.(card reader failure) and multiple EVPs at a
single session.
RISK MANAGEMENT
e Programme. Risks. A risk report for June has.been completed. The overall
risk rating has not changed. NR2 design and development risks have
decreased, but NR2+ has increased, mainly in the area of management of
TSC. As timescales for NR2 get compressed, testing risks are increasing.
Acceptance risks are remaining high, as sign off of the test specifications
slips.
e. NRO beat rate risk analysis. A revised format has been agreed. The
Register has also been converted to Access to allow easier reporting and.
data entry. Joint risk and mitigation action reports through Risk
Management and better quality reporting is-now being received. The
major risks:are now:
e availability of Post Offices
e scheduling of the POCL security 2000 upgrade with Horizon surveys
SYSTEM SECURITY
GENERAL
e — A-full review of anti-virus software availability and automatic update is
beirig undertaken after a potentially significant infection. Good progress
has'been made, but the whole process needs overhauling to bénefit from
the introduction of the NT server.
RELEASE 1C¢
e A post implementation security review of the HSH and SMC in Stevenage
was undertaken with the Horizon FSG.
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, 5 . Version: 1.0
Quality & Risk Report Date: 19/08/98
° New Rambutan keys were sourced to replace keys that expired during
July.
e The findings and recommendations in the Bootle and Wigan site security
review report were discussed with representatives of Alliance & Leicester.
Ways forward were idéntified and are being costed by A&L.
NEW RELEASE 2
e The test Security Event Management solution in Bracknell has been
audited to ensure that the events specified are included. Work has also
begun on specifying the browser configuration to allow monitoring and
interrogation of the security event database.
° A very positive response to the:Pathway-IT Security Management Processes
has been received fromm the Horizon FSG and.the Security Review Panel.
e Processes and procedures to support Acceptance and/or underpin the
Security Management Procedures are in progress.
e The FSG’s formal response to the Admiral Management Services
Penetration Test & Scoping report stimulated work during July to identify
a broader scope of technical tests. This work has also helped to scope the e
non-technical (procedural) penetration tésting.required to address Fraud, ue
tisks. A paper has been produced defining a framework to ensure that
technical and procedural penetration testing share a common objective and
Structure.
e — A.solution has been identified, for authenticating HFSO’s during PO
migration. The process has been agreed with Development and 7 ss
Implementation and is subject to a CP. 5
e New cryptographic key seed values (DSA.and TBKMA) have been sourced
from CESG to support MOR, MOT and NR2.
e Delivery of NT access controls is late. This is high risk, as it was largely the
treason that Ric-was limited to 200 offices.
NEW RELEASE 2+
. Meetings continued to-agree the design forthe Key Management
Application, associated database and off-line key generation for Release
2+.
e — Security requirements for Landis & Gyr (AP Smart) testing have been
developed for unit testing in Kidsgrove and system testing in Bracknell.
QUALITY
e A letter has been sent to WTplc reminding them of our contractual.right to
audit their operations, and a follow up audit is proposed for August.
e — Microtouch have responded to our concerns about monitor reliability by
setting up an accelerated high temperature test of 288 monitors.
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; ‘ Version: 1.0
Quality & Risk Report Dare: 19/08/98
25 PCs have failed at installation with further failures during testing.
Failed units are being brought back for diagnosis either by TVC or Fj ICL.
Support to Acceptance Test planning / preparation continues.
PROCESS MANAGEMENT
Asset Data collection process development continues to be supported
supported.
AUDIT
An initial audit of the process to-apply RIC PinICL fixes to R2 has not
identified an existing robust process. Interim ideas for improvement
opportunities have been made.
Develop Audit Function. The draft Audit Manual has been completed and
provided to BA / POCL for comment.
Audit Trail Functional Specification. BA’s comments (late) have indicated
again a lack of understanding of its purpose and a desire to totally
restructure. They have also indicated that they are reviewing what is
needed for acceptance. A review of the Audit ATS is planned for 21/8/98.
Audit Design continues to cause some concern, particularly regarding the
tape silos and solution for moving data between sites. The ability to deliver
the solution in due time remains a high risk.
YEAR 2000 CONFORMANCE
A number of issues have arisen with 3" parties, which are causing concern
and are being pursues, including NT4, UNISON, SQL-Server v6.5, Solaris
2.6.
A standard questionnaire has been drafted.as the basis for discussing
service providers Year 2000 compliance programmies. The first will be
with Energis.
Progress has been made with DSS and POCL in tying down dates for
interface testing. DSS dates for testing with future system dates is into
Q1/1999. This testing is highly desirable but relatively low added value
and any defects are easier to resolve (all data centre based).
A paper describing the Business Continuity issues arising from the change
of Millennium, the types of mitigation options available, and
recommended actionees has been drafted.
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'E i Version: 1.0
Quality & Risk Report Date: 19/08/98
CURRENT CRITICAL PROBLEMS
ISSUES
. Sign off of.the EVP CCN.
© — Quality of reports produced by CFM and the correction process.
. Personal and other sensitive data is being transmitted ‘in clear’ over the
ICL corporate network, either appended as evidence to PinICL’s or in the
body of PowerHelp text. Efforts are underway to identify‘a solution to
enable the encryption of the data.
e — Oracle ‘follow the sun’ support for PAS/CMS potentially provides access
to restrictéd Government information from otitside the UK. A precedent
was set by thé Inland Revenue project and. their advice is being-sought.
e Noevidence of practical Pathway management of third party security
testing activities. Horizon have little confidence’that these elements of
security testing are under Pathway control.
° Delivery of NT access controls.
° Audit delivery. :
re,
° Getting pro-active supplier management underway together with : -
ownership of decisions/recommendations, e.g. NT4 Service Pack 4,
remains a concern.
e Lack of progress on establishing a controlled inventory of hardware and
software used within Systems Directorate (for Y2k purposes). x
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ICL Pathway Pathway Programme Monthly Report Ref: PA/REP/028
i Version: 1.0
Business Development Report Date: 19/08/98
Business Development Report
MONTHLY SUMMARY
CUSTOMER EDUCATION
There was substantial press interest and activity during July, provoked by
the news of the Treasury Review and the Post Office results
announcement. Although we have opened August with a very balanced
piece in'the-Observer, interest continues to be fuelled by speculation:in the
Trade-Press which.is in turn fed by “government sources”.
~ Planning for the approach to communication post the Treasury Review
announcement of results has started and will shortly be circulated to
narrow group for initial comment and approval.
Government Communication continues to be a clear priority. This month
saw two successful meetings with Frank Field (slightly overtaken by
events), a presentation to the Social Security Select Committee here in
Feltham and demonstrations to Dame Ann Bowtell (Permanent Secretary
to the DSS).
Customer Education and TV advertising: advert now approved but further
action is on hold until the outcome of CAPS Nile 2 replan is known. Our
recommendations are now a contract controlled document (properly
baselined therefore - hurrah!). CAPS have raised the-CR on removing the
word “cost” from the requirements and hence once this-is received, we can
progress to formal acceptance.
BUSINESS DEVELOPMENT
°
Logistics Feeder Service: Final contract schedules will be completed in the
middle of August.
Generics: Design have now taken on a new designer - he will commence
joint working with us this month.
Personal Banking Services: Joint working has commenced with POCL.on
scoping-and delivering their ‘Nétwork.Bank’ opportunity. This
opportunity has the largest transaction volume potential of any of the new
business targets.
Automatéd Payments - Smart: Wé now have all required documentation
from POCL for the AP smart product set.
Marketing Suite: We expect to move into the expanded marketing suite in
late August.
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wa} Version: 1.0
Business Development Report Date: 19/08/98
AGREEMENTS TO AGREE
e The period saw the-first Agreements to Agree which have been agreed with
the associated CCNs being approved to amend the Contract clauses
appropriately.
PROGRESS
CUSTOMER EDUCATION
e Articles have appeared in the Sunday Times (dour post office angle)
Financial Times (optimistic) The Independent (balanced but dour) The
Guardian (automation from the post office perspective) Computing,
Computer Weekly and Government Computing (rumour based) and most
recently in the Observer (balanced and positive)
¢ Comments on the effect of the Replan on Custorner Education have been
provided and with a Change Request, can be handled: there is a cost
impact. Customer Education Media & SIG roll-out activities are-all on
hold.
° Government Communication continues to be a clear priority- internal
network meeting is being organised, meetings held. with A&L and regular
meetings with ICL group. No further activity with ministers and officials.
Main recommendations of the report on government communications are
in abeyance - overshadowed by the three ‘Rs’ - recess, reshuffle and
review.
° Customer Education Acceptance CAPS have raised the CR to remove the
word “cost” from the requirements and hence once this is received we can
progress to formal acceptance.
BUSINESS DEVELOPMENT
© Logistic Feeder-Service: Work on commercial deal is continuing, with final
negotiations due to bé completed by the end of the month.
« Personal Banking Service: Joint working has commenced with POCL on.
scoping and delivering their ‘Network Bank’ opportunity. This
opportunity has the. largest transaction volume potential of any of the new
business.
¢ Future Business Opportunities: Work has now started to scope, plan and
resource how the infrastructure can support multi-channel opportunities
(expanding it to support kiosks, web sites, digital TV sites, and call
centres) and ticketing (travel, hotels, leisure events). We are investigating
from a design/architecture point of view, as well as the likely cost,-resource
and timescale implications
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Version: 1.0
Business Development Report Dares 19/08/98
Automated Payments - Smart: We now have.all required documentation
from POCL for the AP’ smart product set.
Card Design: The request to revise the PO logo on the reverse of all the
Payment Cards is progressing. Full approval should.be expected: during
September after which we may then invoice for the work (£12,255) as per
CCN285. .
Agreements to Agree: Stcady progress continues to be made with this time
consuming exercise. Progress on difficult areas such as the Style Guide,
suitability of offices for automation and reconciliation.are all making
progress although they remain difficult areas.
CRITICAL PROBLEMS
CUSTOMER EDUCATION
Press interest is unlikely to abate - matters will become more acute as we
move to a pronouncement of Treasury findings: our reputation will need
to be protected by some serious briefing activity. Our customers’ preferred
lines and media approach do little to support our reputation. To achieve
successful communication we will need a very high level customer input Pa
and support. ~
BUSINESS DEVELOPMENT og
Logistics Feeder Service: : POCL have had their business case for SAP/ADS
signed off by CEC with less budget than they require for LFS based on
their assumption that they would be able to negotiate ICL down further: a
commercial deal is still some way off. However, POCL look ready to
forego any liquidated damages remedy payments against any failure to
achieve SLAs. On that basis our risk profile is significantly reduced, and
therefore there is scope for some movement on the price.
Personal Banking Services: POCL want to move more slowly that we do
and seem unconvinced that the Horizon infrastructure is appropriate. for
on-line banking services. We clearly have different views on the
assumptions that would underpin a business model. In mitigation we are
defining a clear set of deliverables for joint working against an agreed set
of timescales. In ICL Pathway we have also commenced work on a
document which details the capability of the Horizon infrastructure
against banking ‘industry standards for on-line banking services.
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y10day
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ICL Pathway Pathway Programme Monthly Report
International Sales Report
Ref:
Version:
Date:
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PA/VREP/028
1.0
19/08/98
e — Intérriational Sales Report
MONTHLY SUMMARY
¢ No submission this month
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Organisation
& Personnel
Report
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ICL Pathway Pathway Programme Monthly Report Ref: PA/REP/O28
isati Version: 1.0
Organisation and Personnel Report Date: 19/08/98
Organisation and Personnel
MONTHLY SUMMARY
° No submission this month
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Post Office
=== Client
Report
FUJ00058175
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ICL Pathway Pathway Programme Monthly Report Ref: PA/REP/028
The Post Office - Client Director Version: 1.0
Dare: 19/08/98
The Post Office - Client Director’s
MONTHLY SUMMARY
e —_No submission this month
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