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ICL Pathway
Bringing Moatht
Technology if
to Post Office
Counters &
Progress
Report
Benefit Payments (CL
October 1998 — 0-8 800
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ICL Pathway Programme Monthly Report Ref: PA/REP/031
Version: 1.0
Date: 20/11/98
Document Title: Pathway Monthly Report - October 1998
Associated Documents:
Reference Vers Date
(1) PM/PRO/002 1.0 26/09/96
Approval Authorities:
Name Position
Title ~ Source
Pathway Programme - Project
Planning, Reporting and Control
Signature Date
J. H. Bennett Managing Director
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ICL Pathway Monthly Report
Contents:
ge Managing Director’s Summary
Systems Report
ad
4 Commercial & Financial Report
Ze Customer Requirements Report
Customer Service Report
Quality & Risk Report
x. Business Development Report
International Sales Report
Organisation & Personnel Report
Post Office Client Report
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Areuruins
§ 1019911
SUISeUL YL
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ICL Pathway Managing Director's Monthly Report Ref: PA/REP/O31
Version: 1.0
Date: 20/11/98
Managing Director’s Summary
PROGRAMME PROGRESS
. A new Programme Plan has been agreed by all parties (BA/POCL/Pathway)
as a result of the Treasury Review: This takes account of the work
programmes:and dependencies of all three parties and gives the following
dates:-
Start of Live Trial April 1999
Start-of National Roll-out July 1999
NR2+ Live April 2000 (TBC)
End of. National Roll-out November 2000
© Model Office-Rehearsal 3 (MOR3) is progressing well and is just one day
behind schedule. End to End (E2E) cycle 2 has experienced problems in
both the CAPS (BA) and TIP (POCL) interfaces.and is seven days behind
schedule. The issues are-now well understood and we are progressing on a
day for day-basis but will not catch.up days lost so will use seven days
contingency.
e Acceptance Test ptéparation is now progressing well with all twenty three
specifications prepared. Of these éight have beeii signed off by sponsors
via CCN and only three have outstanding issues of any note to resolve.
Two Acceptance Test runs have been completed via final pass of System
Test; these being for APS and OBCS.
e The key issué:that. may prevent progress being:maintained to plan.is
software quality where the number of software faults (PinICL’s) is higher
that anticipated at this stage of the Programme: Although few are of
significance by themselves the total number is causing concern. Actions are
in hand to address the issue and the new Programme Plan includes
additional contingency for PinICL clearance and software stabilisation,
. Implementation preparation is. progressing apace with 6,300 outlets having
received the management briefing which puts them in the process. In
addition 3,600 site surveys have taken place and 50 outlets have had their
site preparation completed which starts building the stock of outlets ready
to be automated when National Roll-out commences.
HM TREASURY REVIEW
e The four week review carried out by the Treasury Independent Advisor
completéd as planned on the 16 October 1998.
e — The terms of reference asked:-
a) Whether there is a commercial basis.for proceeding with the project
which is acceptable to the parties.
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iCL Pathway Managing Director's Monthly Report Ref: PA/REP/031
Version: 1.0
Date: 20/11/98
b) Whether there is in place a satisfactory implementation plan with a
detailed timetable for completing the project.
e On the first point no satisfactory agreement was reached, with a major gap
between the parties in NPV terms.
e On the second point good progress was made-and the essential
components,of‘an implementation programme agreed by BA, POCL and
ICL was.established.
e Following the unsatisfactory conclusion of the Independent Advisors
review, a series of correspondence took place between Keith Todd and
Stephen Byers, Treasury Cabinet Minister, which culminated in an
agreement to a further two week exercise between POCL and ICL. This
was to explore the basis.for a public/private partnership between ICL and
POCL to determine a long term business plan for future additional
business opportunities in addition to: those referred to.in the existing
contract. This, if.successful, would allow for any loss incurred by ICL on
the original contract to be-off-set-by the prospect of being able:to recover
the position later on. Our proposal, together with a Heads of Agreement
for the public/private partnership, had to be with the Minister by close of
play on Monday 9 November.
e Anintense period of discussion and negotiation has now taken place with
POCL, from which ICL has concludéd a number of actions.
e A proposal was submitted to Stephen Byers on 9 November containing
four papers; a.non-binding Héads of. Agreement for'the private/public
partnership, ICL Pathway funding’paper, Acceptance Proposals and
Commercial.and Contractual Proposals.
© The Heads of Agreement-has been fully agreed. in.draft form with POCL
and has beén signed by the parties. This will provide the essential basis for
discussion.and negotiation on thé remaining three papers. This work has
not yet started and will be difficult.
© We.havé asked the Minister to nominate who.in HM Treasury-will now
take our proposals forward and have recommended priority'work to
concentrate on the Commercial and Contractual Proposals and the Heads
of Agreement. A reply from HMT is expected within the next few days.
. In parallel to the work with POCL, SG Hambros, Masons and Grant
Thornton have provided professional support to prepare the way to obtain
non-recourse funding, and an independent verification of the ICL business
model.
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ICL Pathway Systems Monthly Report Ref: PA/REP/O31
Version: 1.0
Date: 20/11/98
Systems Report
MONTHLY SUMMARY
© October has required heavy involvement.from Pathway in the Treasury
review. Although not complete commercially, there is a joined up
programme plan showing the way forward for the delivery of the
outstanding functionality specified in the contract. This introduced a short
contingericy window between the end of the model office rehearsals and
the model office.test proper.
e The second phase of the Model Office and End to End testing completed
during the month and an analysis of the test conditions demonstrated a
74% coverage. The third phase (MOR#3) started on the 19" October
1998 butiwe.encountered several énvironmental and sofware difficulties
which caused slippage to the schedule. This was disappointing but not
entirely surprising because we had introduced significant change to the
data centre. However we are confident that this can be contained within
the contingency available.
. Final Pass System Test activities have commenced. OBCS and APS have
completed.and BPS and MIS-are ongoing. Business Intégration Test cycle 5
and Y2K cycle.2 have also completed.
e The counter. migration processes worked well in the model office but
further changes:are required to handle local post office products more
efficiently. There is now an agreed plan for the Wigan.(1C) to Bootle
(NR2) migration exercise but the regression opportunities are still being
determined.
e The EPOSS usability study in Pangbourne and Welwyn Garden City is
complete and provided valuable feedback. A further study in an ECCO
office is planned for November:
e The design team is losing a. number of key personnel mainly due to
retirement..Several new staff have been recruited but it'will be a little while
before they are fully productive,
« The number.of open software incidents has reduced considerably but there
is still a large amount.change that could effect the quality ‘and stability of
the latest build. Actions are in place to manage this burit still represents a
formidable challenge.
. Progress on the design of the. NR2+ functionality remains on schedule and
we expect the majority of the development activity to commence in the
new year.
e Asummary of the position. following completion of BT/Energis analysis of
ISDN coverage in the UK has résulted in a better position than anticipated.
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ICL Pathway Systems Monthly Report Ref: PA/REP/031
Version: 1.0
Date: “20/11/98
PROGRESS
e The design team continues to focus on PinICL clearance particularly BPS,
TPS and migration.
e The Design Plan for NR2+ has now been issued and baselined. It shows
the external systéms design (i.e. contractual applications) completing in
December 1998 and the internal systems design (i.e. supporting
infrastructure) by the end of February 1999.
e A large number of EPOSS fixes were applied to the MOT baseline. We are
hopeful that the residue will either by ‘fast-tracked’ or be accepted onto
the Known Problem Register. Release NR2+ development has begun on
PAS/CMS.
e Frame relay circuits for testing at Bracknell and Feltham have been
installed and are working successfully.
e Several performance runs have been completed and we.now know where
the potential bottlenecks are, and the hardware upgrades required.
e The testing teams spent most of their time supporting the model office and
E2E activittes and running the final pass system tests. OBCS and APS are
complete and BPS is ongoing, Business Integration Test cycle 5 and Y2K
cycle 2 also finished at the end of the month. The test scripts are now
being revised to take on late acceptance critéria sponsor review comments.
e Progress with regard to the Secure Builds was slow during October. A
number of issues prevented:several tests from being run. Resolutions of
these is targeted for the MOT build. Third Party testing ‘is also slow with
all three managed services failing to meet agreed dates for the production
of the high level test plans (HLTP’s)
CURRENT CRITICAL PROBLEMS
e — The MOT software baseline contains a large number of fixes which must
be system tested before commencing the formal test scheduled for 14"
December. This is putting added pressure on tests rigs and manpower
resources.
e — Software problems which cannot be rectified in the time-available continue
to be submitted to the sponsors for business impact evaluation. If they
consider it essential to fix a large proportion of these defects it could
impact the current delivery schedule.
e Testing the Audit functionality in.the time available is proving to be very
difficult. Several options are being considered which will enable the tests
to be completed and satisfy the acceptance criteria.
© There several software problems with the Training Mode Facility. We have
yet to demonstrate this functionality to the.customer in Model Office.
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ICL Pathway Systems Monthly Report Ref: PA/REP/O31
Version: 1.0
Date: 20/11/98
ISSUES
e We must ensure that all the system test ‘final pass’ stages are complete
before model office test commences. This is essential to support the
acceptance process but is proving challenging and resource consuming in
terms of people and rigs.
e — Recent work on the PSTN solution has suggested that the current design is
not viable.
e The data'transferred to TIP contains-transaction details(ITM’s) created by
the Pathway solution. These are inconsistent with the-details passed to TIP
by POCL reference data. Discussions with POCL are being held to
determine how this problem can be resolved.
e Formal testing of the Automatic. Payment (AP) Client backlog has not yet
started, this is an important exercise and needs careful management.
e We have still to prove the new message store.replication mechanism when
PC’s are replaced in outlets. The current approach takes:too.long and is
unworkable.
° Some of thé Cathode Ray Tube (CRT) monitors are showing ‘signs of
deterioration and further investigation has uncovered serious
manufacturing defects. Discussions are taking place with the supplier in’
question, in the meantime we continue to persuade POCL to install flat =
screens in all locations.
. The disaster recovery strategy for the Data Warehouse. is still to be proven. &
It involves the use.of a Sequent SE70 with limited disc capacity to handle Eg
the work normally processed by a large Sequent, NUMA-Q. ve
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.
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ICL Pathway Commercial & Finance Monthly Report Ref: PA/REP/031
Version: 1.0
Dare: 20/11/98
Commercial &.Financial Report
COSTS
© The Controller’s report follows.
OCTOBER ACTUALS 1998
KEY NUMBERS (£000’S)
Morty of Ocaber 1888 "Yaar io Gata Epa Ociobar 1688
Variance Vanances vs
Actwat__I vs. Feast Acwot__[OaFeast I “Bugger
Trading/Project Costs: Revenue 264 190, 763 190 386
Project Costs before Captalisatons 9.59 789 e4219 789
Deciarea PBT Losses / (Prot (134) 269 1208 269
CasniBistance Sneat Business Operating Cash Flow (13,433) 2217 (91.151) 2217
Project WP. #20
Net Fixed Assets ~ 935
atin Borrowings 2217 (2.127)
Engol October 1658
Varanoss vs
Headcount: Actual I SopiFeast_[ “edger
Permenent 1% 5 (4s)
Nom Permanent ((Ts and Temporanes} 3 1 any
(Meme): Freeiance’s procured tough ICL T Contractor Services na 2}
Comments Alandmark marth! ICL Pathway reported a bottom dine proSt of £9, 1m inthe month (apologies fr our brackating convention which currently
‘assumes thel an unbrackotad number is @ toss).
z “This esl was achieved through the eater than forecast invoiang of development work
‘packages to Osutscha Post in Germany: associated coss i his projdc Nad aready been recognised as parod costs in provdus months.
Mainstfaam project expeinetauro was also tower than forecast by £0.5in, due to lower subcontract Sxpenditure wth Oracte Corporation and with
{CL Outsaurong, together with savings on freelancers; equipment maintenance ana finance costs.
Headcount was cloie to foracast,
Cash fow benefitted from tne reduced project expenditure, ower than forcast fixed assel additions and higher than forecast accrusls, lo give
‘month end borowings that wera €2.2m less then forecast
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ICL Pathway Commercial & Finance Monthly Report PA/REP/031
1.0
20/11/98
PROJECT COST ANALYSIS (£000'S)
Woon of Oca TE Yaaro Cobar 10a
Vonance Vartaneat va
crt _I va. Penat Acua [Toa Feast [eager
Revenue 264 1%0 783 190
Direct Cost of Sates 1.683 (153) 16,042, 4153)
Gross Margin (Defct) 7.619] 37 715.279) Fu
Opex- Labour: Own Staft 81 » 6.088 Py
Travel & Subsistence 6 1 453 1
Freelancers 177 108 15247 104
ICL Subeonteete 1540 166 v.98 186
Otner Subconvacss 52 268 7.484 264
Deprecauon 1219 ° rogat 9
erkeung 2 2 470 2
Proessional 508 a 1 ‘
Otner opex ze 108 3.407 104
Gross Project Opex ara fe wise ca
Intorest csteincoma) 1.70 Py 9276 5
Costs before Capitalisations 9533 763 = 4210 789
Decared P&T Losses /(Profts) _ Fal Tae aE TH]
‘Capialeed ino WP during year 687 520 e001 20] (nang)
Comments:
Reverwe gains arose from naxtivolcing of dévelopment work for Davische Post ahead of fordcast, All associated coBts - vitualy ali gine and miatariels -
hhad already been recognised as and when incured, resulting in a positive declared PBT in the month - a frst for ICL Pathwo
Etsewnore,thore were net savings of over £0.5m on mainstream project costs, Saveral long-standing accruals ware reviewed arid sijustod In tha morth,
resuting in apparent cost reductions on Oracle development costs of £0.2m, There ware further gars trom lower than forecast charges from ICL Outsourcing
{ot devetopment and product suppam actives. bul those were ofist by a one-time extra cost from Qutsourciig relating 16 fevsion to Une way in which
‘charges 49 spacialised archiving media are passed io Pathway, Other gains arose on freelancers, intarast cosls and - within tna ‘other apex’ category «lower
OCTOBER ACTUALS 1998
HEADCOUNT
End of October 1988
Permonent Headcount Variances Va
Actuat__[“GaFeast_[ “Guage
‘Systems. 35 2 19) Permanent headcount grew dy 10 in the
Implementation a4 ay ) month, but was still 5 below forecast.
Customer Service 56 2 7)
Allotner departments 35 2 (1}I Harr of the new intake was Into Cistomer Service
‘Totals - Permanent Statt 190 5 (45)I
Endot October 1005
Non-Permanent Headcount ‘Variances v=
Actual [Gat Feast [Budget
Industrial Trainees and Temporary Statt 43 1 (i)
Freelancers sourced through
ICL IT Contractor Services
Systems: 129 (4) (49)] Freelancer levels have been relatively stable
Implementation ‘ : =I overine past tew months, wit end;October
Customer Service 7 : 1] ~ neadeount just 5 ahead of he July levels
Ailother departments Fy ‘ i)
Totals - Higher Skilis Frovlancers 7 : oH
Totals - Non-Pormanent Staft Tm 7 Tal
Grand Totals
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Date: 20/11/98
OCTOBER ACTUALS 1998
CASH FLOW (£000’S)
Wonih at Oataber Toe Youre October 108
‘arience Variances vs
Inflows/(Outflows) Actual vs. Ficast Actual Oct Feast: “Budget”
Net Project Costs - capitalised into WIP 20] 43,00) szol 14.118
Project costs taken suaight io P&L 269] 1218] 269) “ail
Sepreciation a 9] i031 “al 2034
Movement in omer Working Capit Items 224] 4,140] «33I 4.760]
Fixed Asset Addons a4] 13.724) aa 044
Business Operating Cash Outflow 27] ETAL 2zi7I 13,989
Opening Net Borrowings Teer 7 BOB] 7 aam7
Closing Nat Borrowings 181,105 2217 381.105 2217I 3,124
BALANCE SHEETS (£000’S)
a
Dalaba 96S Pathway Tor Cash outiow of £14.4m in the month was €2.2 a
Not Fixoa Assets,
Project Work in Progress.
Otner Werking Captal
Share Capital
Retained Eomings
Group Pooled Borowings
Extemal Loans
Total Borowings
Totals:
Taber I October 1
‘etval I Feroeast_I _-avager
39,084 3a,383
175.756 162,595
(iss4n] (15:04) ‘ez
Tame] wore I 00775
20000] 20,000 20,000
(xe08] —(2o7si] 1.203)
7.995 322 82,187
173,128] 183{000, 39.781
$a1.105 I 189.322 I 171978
Taree I rsa I e075
loss than forecast
Fixed esset additions were £0,9m lower than:
{orecast, due lo lower than expected invoicing
{or post afice site preparalion work and end “
user training,
‘This, along withthe lower net cost evals inthe
modi and a turher £0.5m favourable varianco
on working Gaps! (due rigiiy to a forecast *
error gave the ower Borrowngs requrement
[No new Asset Company funds ware arawn down
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ICL Pathway Customer Requirements Monthly Report Ref: PA/REP/O31
Version: 1.0
Date: 20/11/98
Customer Requirements Report
MONTHLY SUMMARY
OBCS and APS have completed Acceptance Trials.
Eight Acceptance Specifications (ASs) have been contractually approved —
it was to have been ten but the customer rerieged on two.
The early signs of a more positive attitude from the DSS have continued
and we-are now expecting the three big DSS Acceptance Specifications to
be. approved this week.
The specifications for Audit, POCL Infrastructure and.Help Desks are now
clear for approval. Good progress has been made on EPOSS through
meetings rather than document reviews.
The-four remaining problem specifications out of the 23 are
Reconciliation, Reference Data, Rollout and BES.
DETAILED PLAN ACTIVITIES
NEW RELEASE 2
A large number of PinICLs have been dealt with. The KPR stands at about
30. Several PinICLs potentially affecting BES Acceptance remain
outstanding, particularly those relating to prompts and the display of title
in card verification. A paper about BES behaviour under conditions of
LAN failure was completed in response to two outstanding PinICLs
although final resolution will take time and will need to be taken outside
NR2 and.Acceptance.
There are currently 119 Security PinICLs open, of which around 25 are
adjudged Business Impact One through the Security Forum, The clear-up
rate in baseline.9FT Inc7 was much below expectation, with the ECCO
migration particularly affected.
We.are in course of reviewing the PPDs. The BES one, in:particular, is
important to Acceptance. We need to use the PPD to cover any remaining
issties concerning Acceptance particularly-in the area of counter interface
prompts and messages.
The DSS Reference Data is under test. DSS has changed the format of the
table of Benefit Offices to CAPS Release 4 formats without first raising a
CR. What price their configuration management?
An updated version of the Access Control Policy has been produced
accurately reflecting the NR2 level of product. -
RELEASE NEW 2+
We have.supported the NR2+ contents reviews.
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e The 11th joint CAPS/PDA/Pathway review was held in a good spirit of co-
operation. Useful progress has continued on the casual agent / temporary
agent front and consolidation of, business rules. Issues:now look forward
into the Release 2+ and on-line enquiry developments.
* The DIDVR for CAPS Release 3.5 has now been received.
CARS
e There was again no CARs activity.
A2AS
© There was no progress on outstanding A2As. The approval of the CMS
Acceptance specification and the definition of the Performance:testing
programme will clear several.
CCNS / CRS / CPS
e Dave H completed a total re-drafting of the DSS, POCL and Joint solution
schedules as the basis for contractual resolution of CCN 117. These texts
provide differentiation between payments cards and temporary tokens
within the Pathway. solution, in the face of the Authorities’ continued
unwillingness to introduce two separate classes of instrument of payment
into the Requirements. In:addition various suggested amendments to a
small number of Requirements.have been identified in conjunction with
Finance & Commercial, along with a proposed amendment to the contract
clause covering usage of the term “Card”. Hopefully, now the Authorities
have found a way to absolve themselves from the outward and visible sin
of wholesale change to Requirements, there will be a resolution of this
long-running issue.
e@ CCNs were drafted for including Frame Relay, and for Help Desk changes
needed: for Acceptance.
° Among the Change Requests received are two for.APS, the:new British Gas
smart card product and bar-coded.BT bills.
ACCEPTANCE
e — Eight of the 23 ASs were formally approved via the CCN process.
e Further versions of the BES AS were completed in response to successive
waves of Authorities’ comments. The issues are the familiar ones of the
POCL / DSS BES / PAS boundary, contract documentation versions plus a
number relating to system prompts. In addition, POCL refuses to accept
the DSS’s CAPS DIDVR as the basis for encashment data content sent
between BES and PAS. A letter listing the remaining issues and asserting
resolutions to them has been sent.
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e Tony H issued further versions of the DSS Interface AS to achieve an
agreed final version. In the event, the DSS reneged seeking further
changes, since made.
e Tony also dealt with further waves of comménts on the CMS and PAS ASs
and has again brought DSS back to the point of agreement.
e ‘T&I (Kevin Barrett) has consolidated all the tests used for PAS, CMS, BES
and DSS Interface within a single document, with virtually all these:tests
now within BIT03. The rewritten acceptance specifications refer to this
document and reflect the latest status of the test scripts.
. Dave C has brought the very large. POCL Infrastructure AS to the point of
agreement:and has overseen the actual Trials phases for:OBCS and APS.
Closure reports*for these two’ Trials are in preparation, but both require
reruns to clear PinICLs/Acceptance Incidents.
° Peter Burden has similarly reached agreement on the Help Desks AS.
e John P has secured much progress on the EPOSS AS through a series of
workshops, Although the specification has been significantly reworked the
tests involved are virtually unchanged. We still expect a number of
disputed aréas. ~ .
e The POCL Reference Data Acceptance Test Manager (of PA Consulting) is
trying to combine his assurance role with Acceptance and is proving
difficult.
e That for TIP is ready for approval but was reneged on, but no further
comments yet.
rare we
° The Security AS was formally approved — a significant milestone. The
principal caveat is the provision of three third party test plans final drafts
of which are due this week.
. The Service Levels (Performance) AS formal approval was achieved.
However, the Test Plans for performance are about to be recast.over a
longer period of time which may mean that tests required to support
Acceptance will not be available within the Acceptance window.
e Not everything that the TSC Bracknell element of Acceptance Trials
requires is available in 9FT Increment 7, the MOT baseline being built at
this time and which will allow testing to restart. Around 100 tests may not
be executable, particularly MIECCO & RODB, in the required time scale.
There are-also a number of reruns not yet possible and non-Security
Acceptance dependencies on the TSC tests not yet met.
° It is clear that there will be insufficient time to rerun-all Bracknell tests in
the Final Pass: This is particularly the case for Integrity where the tests
have been put into priority order so that the high priority can be done
before MOT and the rest to follow.
e The Reconciliation AS is proving to be extremely difficult with comments
late back and oppositionist in character, to say the least.
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° The Rollout AS depends on resolving the.nature of the completion packs
from installation and overcoming the desire by POCL to inspect a 10 per
cent sample of outlet installations. Pam. Barlow is putting this blank
completion pack together.
e There have been three-meetings of the three-way Acceptance Management
Forum. A significant achievement is finding a way forward whereby the
Authorities do.not have to witness all the Trials by assuring themselves of
the process. Initial audit was-positive.
e An updated version of the database was sent to Horizon. A number of
updates are now outstanding from the team.
NEW BUSINESS SUPPORT
e The EFTPOS workshops continue. The target is to achieve a Functional
Specification by the end of year.
e Dave C has produced an RFI for a PIN-Pad. This will go to various
suppliers before the end of the year.
OTHER TEAM ‘ACT IVITIES
e Dave H reviewed the IWIM proposal to the Post Office (integrated
workflow and document management) as a red team member. Contact
was also made with Mike Strong of the Post Office at the joint WFMC /
Black forest Group meeting (see item below). Following the subsequent
ITT arrival, Dave H will contribute, where possible, to any subsequent
proposal.
e¢ — Dave'H chaired the Workflow Management coalition October meeting
and was also involved in a presentation to the Black Forest Group
(multinational users), which includes the Post Office: within its
imembership. An invitation has been received to contribute to the Black
Forest Group on an ongoing basis.
* John C also participated in the A&TC bid qualification for IWIM. This
gave a score of 71.5%, at the bottom end of what ICL should achieve in
order to go for-a bid.
e John D made contributions to the Acceptance Treasury paper.
CURRENT CRITICAL PROBLEMS
° None.
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ISSUES
e Technical & Security Testing (Bracknell); The ‘high level-of PinICLs not
dealt with within the MOT baseline, the lateness of the baseline itself and
the redefinition of Performance testing will make the timely completion of
Acceptance Trials for Security, Service Levels and POCL Infrastructure
difficult.
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FUJ00058177
Customer
Service
Report
FUJ00058177
FUJ00058177
ICL Pathway Customer Service Monthly Report Ref: PA/REP/031
Version: 1.0
Date: 20/11/98
Customer Service Report
MONTHLY SUMMARY
Service performance in October was again excellent with all’key service
performance measures being met or exceeded.
RELEASE 1C VITAL STATISTICS
Installed base : 204 Post Offices, 334 counters
e Number of Cards issued 45,126
° Number of Active Gards in use 35,985
® ~~ Total number of BES Counter Transactions 665,913
° BES Counter Transactions in month 81,480
e — Total value of Benefit Payments received £21.3m
© Value of Benefit Payments received in month £2:6m
e Total value of Benefit Encashments made £20.1m
© Value of Benefit Encashments in month £2.5m
© — Total number of OBCS Transactions 5.7m
@ Number of books impounded 16,521
© Potential fraud avoided > £2.1m
PROGRESS
OPERATIONS
@ No major issues this month.
© Steady progress ha’.been made by the Reference Data team and the take-
on for MOR3 was completed on time and loaded into the counters.
© We intend to use StaffWare as the workflow control system for Reference
Data-and discussions with, A&TG are in train to provide.support for its
implementation.
@ Operational Readiness Reviews for NR2 have been held.and I am pleased
with progress. The main aréa to be improved concerns data centre
operation in fail-ovér situations.
e Discussions are being held with TIP to determine how we can implement
effective operation of this interface.
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ICL Pathway Customer Service Monthly Report Ref: PA/REP/031
Version: 1.0
Date: 20/11/98
BUSINESS SUPPORT
e@ The BSU has once again had an outstanding month and they have
exceeded all of their SLA performance targets.
. The ‘incomplete transactions’ fixes were'implemented this month and
were immediately effective. Transactions without. reconciliation, incidents
were at their highest level at 99.985% and we.are on track to achieve our
unofficial target of .99.99% by the end of the year. (official SLA target is
99.9%).
BA & POCL SERVICES
e@ — Service suppliers continue to provide good service both for Ric:and MO.
e@ — There is much work that DLR-CS have'to undertake to bring in their card
packing machine and for their forthcoming building move. We-will ensure
that they produce appropriate plans for these activities and will be
monitoring them closely.
e Thé.éxércise to swap monitors, check asset.information and change to an
“unslashed” zero on.the counter printer at.all outlets is now complete. A
consequent reduction in calls is being seen at the Helpdesk.
CUSTOMER SATISFACTION
e Special thanks are:due to the ICL System Service engineers who have
* consistently excelled in delivering:an effective and timely. servicé-to the
Ric post offices and have achieved-an outstanding 100% satisfaction
rating in our recent survey.
e — Excellent progress has been made in conducting Manager Care Visits and
the programme is now nearly complete. A report analysing the-results of
the visits will be published in November.
SYSTEM SUPPORT
© Model Office is providing a very high workload for the SSC and.1 am
concerned that NR2 software quality should show significant
improvement for MOT in order that wé can achieve Release
Authorisation.
oe The SSC closed 227 calls in October with.a further 145 passed to
Development.
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FUJ00058177
FUJ00058177
ICL Pathway Customer Service Monthly Report Ref: PA/REP/O31
Version: 1.0
Date: 20/11/98
INFRASTRUCTURE SERVICES
(MIS / PROCESS ENGINEERING / PERFORMANCE / IT)
The slippage in the programme has undermined our plan to get-all NR2
joint process work baselined by the end of the year. DSS and POCL are
saying that some parts of the BPS process definition work will have to
extend into January/February next year.
New APS and EPOSS Reconciliation Panels are being set up and good
progress has been made on.reconciliation process definitions.
We have recéived approval.from POCL of our APS transaction. times and
all NR2 standard operation times are‘now.approved.,Approval of fallback
times is still outstanding.
Our clustered server system (‘P Drive’) continues to be monitored on Red
alert. Fujitsu have.delivered two new servers to replace Cluster1.
CURRENT CRITICAL PROBLEMS
ISSUES
None
pA
Continued dissatisfaction with the delivery of sérvice.from Outsourcing.
Since our meeting earlier in the month with John.Scott, we have seen no 2
improvement. Paul Westfield has raised the issue with. Group IT. - :
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FUJ00058177
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FUJ00058177
FUJ00058177
ICL Pathway Quality & Risk Monthly Report Ref: PA/REP/O31
Version: 1.0
Date: 20/11/98
Quality & Risk Report
MONTHLY SUMMARY
e FRM progress. The repudiated transaction has been investigated; no
liability for Pathway. A potential replacement for 2nd line of address-is
being considered; nominated Post Office.name and 1st line of address.
Sign off of CCN243 is still being pursued.
. Risk Management. A high level business analysis has been conducted
which has identified schedule, implementation, operational and new
business risks. Immediate programme risks which could still scupper the
latest plans for NR2 and NRO include EPOSS produict quality, TIP end to
end, BES fallback reconciliation, CAPS dependency and Audit content and
testing.
° System Security. Progress continues to be made in the definition of
procedures, particularly for Security Event Management. The definition of
technical penetration testing continues; there remains an issue of the
availability of rigs and resources.
e
. Quality. Disaster'Recovery Planning; collection of information to support
the plans continues. Quality assurance of vendors continues,
. Audit. There are substantial issues remaining with the Audit solution; part
of Requirement 816 has been overlooked and no testing of Audit content
has yet been conducted; these could result in serious acceptance incidents.
A successful acceptance audit of testing processes has been conducted by
BA/POCL, with the result that witnessing will be low level. The definition
of the Audit Manual and commercial specifications continues.
e Year 2000.Conformance. Good progress - assessment of service providers,
3rd party compliance and internal testing continue - no major issues
currently.
PROGRESS
FRAUD RISK MANAGEMENT
RELEASE 1C€
e The répudiated transaction notified in September has been resolved, The
‘Customer’ involved stated.that he was aware who committed the offence
but refused to.divulge the information. No fraud liability. has been
apportioned to ICL Pathway.
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FUJ00058177
FUJ00058177
ICL Pathway Quality:.& Risk Monthly Report Ref: PA/REP/O31
Version: 1.0
Date: 20/11/98
e¢ — The-high incidence of manual transaction performed on certain cards was
investigated. Cards are being used for multiple manual transactions
because customers are failing to collect new cards:for a significant period.
This matter will be alleviated in NR2 - a message will be displayed if a
customer attempts to usé a card when another is available. The situation
‘will be monitored.
NEW RELEASE 2
° FCMS system testing. The first pass raised concern as to the status of the
FCMS. FRM has agreed with testing to run a stand alone version of FCMS
to allow fiinctionality and reports to'be checked.
e Four procedures (FRM Contingency Report Dispatch, Incident
Categorisation, Fraud Case Management Administration Procedure and
the Information Interchange Procedure) have been completed and
baselined.
NEW RELEASE 2+
° EVP: .
e The sign off of CCN 243 (‘Soft EVP) is still being pursued.
e Replacement data item for the 2nd line of address. Nominated Post
Office Name and 1st Line of address has been identified as being the
front runner. Design.implications for the supply of the information
are being considered - BA data may not-be cofisistent and a new
interface may be needed to use POCL data.
e ‘Beneficiary Title’ is not being shown on the counter screen..Agreemient
has been reached ‘in principle’ with Horizon, that this would be added to
the KPR with minimal impact. A number of changes to the desktop were
identified for NR2+ as a result.
RISK MANAGEMENT
e NRO Risk Register. The. November update will not.be completed on
schedule. POCL have attempted to discontinue the 300 Club meetings;
this has diverted attention from risk assessment and they have not
provided an update. Some Pathway risk owners are also not.providing
updates.
e Business Risks. A high level analysis has been produced; key risks are:
e NR2 dates. Testing issues and poor EPOSS quality may cause delays
to start and duration of Live Trial.
e NR2 Acceptance may be delayéd as a result of dependencies on CAPS
and BA and POCL
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FUJ00058177
FUJ00058177
ICL Pathway Quality & Risk Monthly Report Ref: PA/REP/031
Version: 1.0
Date: 20/11/98
° NR2+ dates may be impacted by for example resource constraints,
impact of NR2 hangouts and operational issues, design and
development ‘surprises’, and inadequate adherence to end to end
processés.
e Implementation / NRO. Major risks are-well understood and include
beat rate, state of Post Office estate, effect of interruptions, pace of
card roll-out and accuracy of BA personal data.
© Operational risks are largely around uncertainty - system
maintenance costs, reconciliation costs, need for technology refresh,
adequacy of recovery, failover procedures. Training and turnover
training in Post Offices continues to be an issue.
e Business Case risks are mostly associated with uncertainty - level of
fraud, rate of customer take up, new business forecasts and
development costs.
SYSTEM SECURITY
GENERAL
. Documentation:
° V4 of The ICL Pathway Security Policy will be baselined in
November.
_© V1 of The Security Management Procedures will be baselined i in
November.
. Version 0.2 Horizon Security Passes Audit Procedure has been
distributed for review.
° Version 1.1 of RS/PRO/0013 (Horizon Security Passes Procedure). has
been.
¢ There.have been 4 virus incidents during October. Requirements and
process documents have been prepared for Customer Service to carry out
ongoing virus updates on the servers.
e The physical and logical security requirements of the CS move to Bracknell
have been defined. PIR and CCTV requirements have been approved by
Group Security.
e ACP (CP1602) has been raised :for Outsourcing to build and install the
FRM, Audit and Security Event workstations'in the ‘secure room’ in AO
which has now been vacated. The CP also requests connectivity to the live
network for these workstations. Back up requirements aré being
considered.
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FUJ00058177
FUJ00058177
ICL Pathway Quality & Risk Monthly Report Ref: PA/REP/031
Version: 1.0
Date: * 20/11/98
RELEASE 1C
Post Release 1c physical security reviews have been conducted at.Belfast,
Lytham St Anne’s, Wigan and Bootle with Sponsors. The only significant
concern raised by the Sponsors is the risk of ‘car borne devices’ parked
adjacent to the Bootle‘Data Centre - a very low risk, the mirrored site
provides adequate mitigation.
NEW RELEASE 2
The draft HLTP for teclinical penetration testing has been received from
Admiral Management Services Limited (AMSL) and is under review with
Horizon and Secure Test representatives. The issue around T & I rigs &
resources necessary for this testing remain. Horizon have indicated their
willingness.to jointly furid the actual penetration tests.
Security Event Management:
e Girobank Network Services have agreed the use-of Tivoli, and that
ICL Pathway can: have access'to security-relevant events.
e — The draft requirements specification for R2 Security Event
Management system-is with ICL Outsourcing for comment.
Requirements and HLD-documents for verifying callers to the Horizon
System Helpdesk using One Shot Passwords were issued for review. POCL
procedures are being urgently progressed.
A long-standing PinICL regarding clearance of Pathway arid other ICL staff
to view NSI data is with the BA Security Group.for resolution.
QUALITY
Actions from WTplc audit progressed, including the audit.of security
passes,and review of invoic checking / authorisation process.
Review of draft Horizon Training Workbooks has continued, identifying
technical errors and omissions.
Support to Acceptance Test planning / preparation continues.
Disaster Recovery Planning. Collection of information continues,
including pérsonal contact'and next of kin details and specific team
information, including supplier, contact and critical record details.
Vendor assurance. Vendor Assessment Questionnaires have been sent to
potential suppliers of lease equipment.
AUDIT
Continued high level of contribution to the PinICL exercise.
The Audit Acceptance Test Specification has at last been signed off; it
remains now to schedule review activities.
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FUJ00058177
FUJ00058177
ICL Pathway Quality & Risk Monthly Report Ref: PA/REP/031
Version: 1.0
Date: 20/11/98
° There remain substantial issues regarding the Audit solution, including:
° Part of Requirement 816 appears to have been overlooked —-this
specifies that Cash Account information for-longer than 2 periods is
required within 24 hours.
° No testing of the content of Audit input.to the server has been
conducted and the definition of content still has to be completed.
e The Horizon System Audit Manual (NR2) is being developed as the sole
supporting manual for Audit Acceptance. It will be distributed-to
BA/POCL Auditors early November for review.
e Standards and Procedures. The principle of standard audit products has
been agreed and BA will produce first drafts.
. Acceptance Audit. In order to reduce the need for witnessing, BA and
POCL have conducted an audit of the Test processes, with positive results.
e Audit Trail Specifications for CCS, CON Admin and SLAM (required for
the commercial arm of audit) are nearly complete.
YEAR 2000 CONFORMANCE
e Assessment of Service Providers compliance plans; issues:
° Girobank:
a. Buildings; loss of water supply. is an issue
b. Help Desk pe’s are due to be upgraded in Jan 1999
° Celistica
c. Ontrack to complete IT systems this year.
d. No contingency power supply-either for manufacturing or office
buildings.
° 3rd party compliance issues include:
° SQL server v6.5 has declared defects — low risk
e TrueTime (time synchronisation) have completed test programme —
may need to upgrade time servers from v4 to-vS
e Y2k testing continues well with only a few faults raised.
° Outsourcing have. been asked to confirm ownership for ensuring that
support chains aré Y2k ready.
CURRENT CRITICAL PROBLEMS
e Sign off of CCN243.
e Audit delivery, particularly content, testing and assurance for R2
authorisation.
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FUJ00058177
FUJ00058177
ICL Pathway , Quality & Risk Monthly Report Ref: PA/REP/031
Version: 1.0
Date: 20/11/98
ISSUES
¢ The number of PinICLs, rate of clearance and time to regression test.fixes,
° The quality, stability‘and maintainability of EPOSS.
e — Security & Fraud groups within Pathway no longer have a focal point in
Horizon.
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FUJ00058177
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yIoday
juswudopAsq ==
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FUJ00058177
FUJ00058177
ICL Pathway Business Development Monthly Report Ref, PA/REP/O31
Version: 1.0
Date: 20/11/98
Business Development Report
MONTHLY SUMMARY
LOGISTICS FEEDER SERVICE:
e Signed CCN due this month (November). We did specify end of October
as.cut off so we-now need to use:this as:bargaining.power if we are'to put
LFS into NR2+. .
BANKING:
e Very little movement on the POCL front. David Walker has been tied up
with other non-banking-related activities. Allocation of resources to the
“Vision” work.continues to be.a concern. Internally, we have put together
a team to create an end-to-end design for a banking service. We will also
aim to produce a prototype to help with POCL’s sales task.
EFTPOS:
. A number of workshops have taken. place to clarify the more detailed
requirements. We will now take the initiative to document and baseline
the requirement otherwise, workshops will continue and nauseam.
MARKETING SUITE:
e Plans are firmly in place for re-occupation in December: This will allow us
to have a wider range of demonstrations, covering. multi-channel, web
enabled, smart card and Mails.
PRESS:
° No significant press activity, except for the 82 year old sub-mistress in
Norfolk. This-article showed the capacity for the press to pick up on any
little story and blow it into something far larger than is deserves. It did
however point to flaws in internal processes — the problem:should have
been sorted earlier. Corrective action is taking place.
CUSTOMER EDUCATION:
° Plans continue in place but are now totally dependent on the programme
plan and the confirmed Benefit migration dates. We are ensuring that
significant budget is not committed prior to firmly agreed rollout dates.
This means leaving media purchase as late as possible, otherwise we take a
hit.
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FUJ00058177
FUJ00058177
ICL Pathway Business Development Monthly Report Ref: PA/REP/031
Version: 1.0
Date: 20/11/98
MANAGEMENT AWARENESS:
A programme of work is in place to specify a joined up awareness
programme, similar to'the Management:Awareness events run earlier. This
will cover all key target audiences and will be fully funded. I see this as
part of the re-launch activity following Treasury review:negotiations.
ONE ICL PRESENTATION:
Considerable effort this month: focused on a successfully organised
presentation for POCL, which showed how ICL could support its business
ambitions. In mounting the event we were able to pull together, in a very
short time, a comprehensive presentation on ICL. (Much effort also went
into CITU event). This :reflected well on:thé comprehensive “One ICL
message” and was reinforced by the John Roberts letter.
PROGRESS
All external:communication and planning are effectively stalled until the
outcome of the Treasury Review is communicable.
Sponsor internal communications: POCL are not adhering to the customer
education recommendations. This matter is now in the final stages of
escalation and must (if not resolved by late November) be raised with
Horizon management. On the positive side we have spent time
demonstrating the system to.POCL communicators and explaining rollout.
Anna managed to kill an article in the Financial Timés - they were
convinced that we had dropped demands for additional payment and that
in-view of this, and even though the contract was late, that the government
would extend the contract. Trade press has a greater incentive to produce
copy and they believe now that the contract will continue — if not with the
Payment Card; this speculation is fuelled by Nat West’s new ATM!
The Sub Post Office exhibition at Wembley went off very well under Greg
Couper’s management.
A2As: Graham White from Horizon has been doing a lot of work on these
and has been very helpful in the moving of the database from the multiple
Excel spreadsheets to Access. This should enable the whole activity to be
better managed and reported. This is-particularly important'to enable an
agreed statement to be presented for the RAB process. Mason’s are also
examining A2A’s in the light of the review.
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FUJ00058177
FUJ00058177
ICL Pathway Business Development Monthly Report Ref: PA/REP/031
Version: 1.0
Date: 20/11/98
ISSUES
« — Recovering the partnership working is of paramount importance. A critical
success factor to this is the achievement of the current programme plan.
Slippage loses us credibility and directly affects joint working. We must
continue to put pressure on to achieve partnership and.my view is the
message must come dows from John Roberts level as.in hhis.letter.
We tend to ‘hear criticism.from.POCL about length of time to get product
to market. I am about to use LFS as‘a key example of the length of time it
takes (20+ months) to.get from first known requirement to signed CCN.
ICL Pathway caused norie of this delay.
. Internal Communication within POCL as is affects Horizon continues to
bé a worry. [ have now discussed this with Dave Miller and we are putting
a plan in place to ensure more joined up activity.
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FUJ00058177
FUJ00058177
ICL Pathway International Sates Monthly Report Ref: PA/REP/031
Version: 1.0
Date: 20/11/98
International Sales Report
MONTHLY SUMMARY
° No submission this month
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FUJ00058177
FUJ00058177
Organisation
& Personnel
Report
FUJ00058177
FUJ00058177
ICL Pathway Organisation & Personnel Ref: PA/REP/031
Monthly Report Version: 1.0
Date: 20/11/98
Organisation & Personnel Report
MONTHLY SUMMARY
e Recruitment activity has continued successfully. Following on from the
previous months management briefings all employees were briefed on the
introduction of Professional Communities and Performance + to ICL
Pathway.
PROGRESS
¢ There has been. good progress in recruiting permanent people, as follows:
Permanent appointments:in October 8
Currently under offer 2
Appointments YTD 93
Current requirements. 42
° Particularly$pleasing is an offer made to Patrick Cattermole for the Fraud
Risk Manager, a key role which has been outstanding for some time. He
has accepted the offer.
° Arrangements have been made for ICL Pathway-to be represented at VISIT
recruitment events in London and Reading. These will be.followed up by
an open evening.
° Employees were briefed on the introduction of Professional Communities
and discussions commenced with managers to benchmark all permanent
employees within their appropriate community.
. Managers and employees were briefed-on Performance+.
© The plan was finalised for the customer service unit would move out from
Felcham to BRAO1 in November. The first draft of the associated replan
for FELO1 was.completed.
CURRENT CRITICAL PROBLEMS
. None
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FUJ00058177
FUJ00058177
Post Office
Client
Report
FUJ00058177
FUJ00058177
ICL Pathway The Post Office - Client Director's Ref: PA/REP/031
Monthly R rt Version: 1.0
onthly Repo! Date: 20/11/98
The Post Office - Client Director’s Report
MONTHLY SUMMARY
¢ — Work on the [WIM Integrated Workflow and Image Management bid has
commenced. :
BETTER GOVERNMENT
e CITU are keen to accelerate the acceptability of Smartcards for
government electronic service delivery, being of the view that the next step
is to “close the sale”, for the potential of Citizen Smartcards for
government.direct, to ministers and MPs. The aim is to break the deadlock
between govt departments being unwilling to commence electronic service
developments until a wider citizen smartcard population exists, and. card
suppliers being unwilling to issue large volumes of digital signature
smartcards until there is a govt electronic applications/services market.
e Tam directing the building of an ICL “ Whitehall Demonstrator” showing
a full citizeti interaction, from Housing Benefit application-via a Local
Govt Kiosk, to payment of the Benefit via a Post Office Counter; with
identification and authentication via Smartcard. This is intended to be
available in time for the CITU conference Nov 2/3".
IWiM
e Following:a good response to the first OJEC ad we have gone through to
the second-round. This consists of a most unusual RFI, demanding an
extraordinary amount of free advice, with ten days to respond. A&cTC
(who own all the skills) have responded well, putting together a hit team
to respond to the RFI whilst we focus on the key questions of bid
qualification and win:strategy.
e The full revenue from this bid could amount to £50m over 5 years.
ONE-STOP-SHOP DESKTOP SUPPLY
e The good news is that Fujitsu have been selected as the second hardware
supplier,:alongside Compaq. The not so good news is that.Systems Service
are achieving 30% of warranty calls within the specified timescale, against
an SLA of 95%.
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