FUJ00058190
FUJ00058190
ICL Pathway
Bringing Monthly
Technology Progress
to Post Office Report
Counters <CL
February 2000 ‘Mv
FUJ00058190
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ICL Pathway Programme Monthly Report Ref: PA/REP/047
Version; 1.0
Date: 23/03/2000
Document Title: ICL Pathway Monthly Report - February 2000
Associated Dociinents:
Reference Vers Date Title Source
[11] PM/PRO/O02 1.0 26/09/96 Pathway Programme = Project
Planting, Reporting and Control
Approval Authorities:
Name Position Signature Date
M. Stares ‘Managing Director
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ICL Pathway Monthly Progress Report
Contents:
Managing Director’s Summary
Development Report
Commercial & Financial Report
Customer Requirements Report
Customer Service Report
Quality & Risk Report
Business Development Report
Implementation Report
Organisation & Personnel Report
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Post Office Client Report
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Managing
Director’s
Summary
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ICL Pathway Managing Director's Monthiy Report Ref: PA/REP/047
Version: 1.0
Date: 23/03/2000
Managing Director’s Summary
PROGRAMME PROGRESS
e As reported last month, a new era has begun.
e Roll-out is on track. We have now exceeded 4000 post offices and are achieving
the targeted 300+ implerientations per weck. This is a tremendous
performance and hides mass planning and management involving numerous
suppliers, large-scale logistics management and line management. of the activities
of over 1000 people. Each individual implementation includes environmental
and technical infrastructure, training by Knowledge Pool and complex technical
installation. It requires good project relationships with PO, which are being
achieved.
e The key roll-out Powerhelp system is on Alert suffering from system
performance and network problems. This is a risk to roll-out and OSD are
assisting in the resolution.
¢ The major PC issue reported last month has been managed successfully and we
have now contracted to Seimens FJ for a last time buy of approximately 14000
of the X365 éxisting model. To achieve this, FJ will be reopening the
production line. We are very grateful for their support and help on this issue. As
a result the Business Plan:is derisked in this.area.
e Post delivery service is also in good shape and we have had our first full post
acceptance service review with PO, which went very well indeed. Weekly service
performance is being closely monitored and generally shows encouraging trends.
This will continue: to need close scrutiny as the business plan costs are
predicated on defined levels.of service performance (eg no. of calls at £16 p call)
and LD payments. A.small variance in call performance or reliability can make a
huge difference to the cost basé-over the life of the plan.
e Development of CI3 is on track and VPN is now being rolled out successfully.
Cl4 is behind where we would like it to be and is being tightly managed through
this critical testing. phase.
¢ We had a successful month from a financial perspective, being better on cost,
cash and revenue forecast. Much effort is now going into establishing detailed
baseline financial and operational budgets for 00/01 that are. back to back with
the Business Plan. This is a complex task at this stage of roll out and
development with so many unknowns and variables. However it needs to be
done to ensure that we are on track. Personal Objectives will then be set against
these Budgets.
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¢ Headcount management remains a big issue. We are now entering a vulnerable
phase. where we are highly dependent on key skills and motivation but at the
same time need to manage the start of a heavy cost down program. ‘This is also
in an environment of IR35 and many unknowns about new business
opportunities such as Network Banking and Project ERA. The Business Plan also
assutnes a significant shift from freelance to ATC heads. It will need tight
management and the availability of the right skills.
PROGRAMME UPDATE
NEW BUSINESS
¢ Now that Acceptance has been achieved and National Roll-out and Customer
Service are seen by PO as going well, there are positive engagements now
starting on new business. Following the successful joint Director level team
meeting with PONU on 8th February we:are in joint working groups/discussions
on Network Banking, ERA, Service Development Plan and Quick Wins.
¢ We have also engaged with PO regarding me:gov and have achieved their
agreement in principle to join the ICL consortium. This helps to give a potential
winning position against BT and is further evidence of a more positive attitude
from PO.
NETWORK BANKING
° Post Office issued a Request for Information to the marketplace in December.
We submitted a comprehensive ICL response utilising Horizon at the
counter/network with a Lifestyle Banking backend interface to the banks. ICL
FS has been shortlisted for the backend ( 6 suppliers in total) and we need to
qualify this opportunity carefully. We have made good progress towards getting
Pathway defined as the nominated contractor for the counter and network. We
are now engaged in a 3 week joint working group with PONU and PONB
(Network Banking) to narrow down their options for the ITT which is due in
April. This will involve confidentiality commitments from Pathway, ie Chinese
Walls with FS.
« We are still struggling to comprehend their overall Business Plan for Network
Banking, and at present their approach is technology driven.
RE-ENGINEERING/ERA
« As with Network Banking, joint activities have been proceeding at a pace and
Post Office seem keen to move this-forward with us. Théy are taking a Project
Initiation Definition to their Board in April. Initial scoping suggésts a £20M plus
opportunity,
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FINANCE/COMMERCIAL/BUSINESS PLAN
« Please see separate report.
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Development
Report
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ICL Pathway Development Monthly Report Ref: PA/REP/047
° Version: 1.0
Date: 23/03/2000
Development Report
MONTHLY SUMMARY
* The CI3 release, which introduces the VPN functionality (Virtual Private
Network), is progressing according to schedule. The Wigan data centre was
upgraded on 26th/27th February and. Bootle a few days later. Further work. was
successfully carried out on the live configuration on 4th Sth March and the first
10 outlets will be VPN enabled week commencing 13th March. The majority of
thé estate (circa 95%) will be fully operational by 7th April.
¢ The network/router upgrade is still scheduled to take place immediately
following the CI3 release. In-addition, we expect to upgrade the
correspondence server layer to respond to the récent increases in the peak traffic
volumes. The approach proposed is also designed to address the migration to
Riposte 6 and the implementation of:a 3rd copy of the message store.
Monitoring the live system, analysing ‘the performance and capacity trends and
upgrading the data centre configurations is a declared process in our
documented scalability strategy.
e We expect to complete the final stages of system test for the main application
release (C14) during March. The-businéss and technical conformance main pass
testing comprises of 6 cycles-and the first completed on schedule 29th February.
The second cycle is due to commence.10th March and the third on. 27th March.
The initial results in terms of coverage are disappointing and a full analysis of
the incident:register is being conducted. Early indications are that we
encountered more interface and integration issues than anticipated. POCL
testing comprises.of three end to end éycles and.a user-confidence test and starts
on 10th April.
¢ Good progress has been achieved with the CSR+ migration procéss, the mobile
and satellite solutions and the:production of additional 365 PC’s. The number
of major issues now facing the programme has reduced considerably but we
must not.allow ourselves to become complacent.
e The difficulties associated with recruitment and the potential loss of certain key
individuals is still a major concern for the immediate future. The problem is.
exacerbated by the absence of new development work, although the-recent signs
from POCL look promising, and the introduction of IR35 legislation for
freelance.staff.
PROGRESS
e The System Test for' APS, LFS, EPOSS, TPS, RDMC, Message Broadcast and
KMS are now complete. The audit run for KMS is also complete.
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e The audit run for-APS is in. progress but with some.agreed omissions; notably
SPM reversals, session mobility, APS recovery and file resend. SPM continues to
give rise for concern and we access to the British Gas site to install a FTMS
gateway has been delayed until week commencing 6th March with testing due to
complete 10th March.
¢ The Quantum interface testing has concluded but we have not received
confirmation that the system on the customer side was properly exercised. The.
LFS audit run is being performed whilst some enhancements are being discussed
for possible inclusion later. Audit runs for TPS and RDMC are also in progress.
Confirmation from Horizon that SPM and.SAPADS did not use their systems
during the interface tests has increased the risk that the first cycle of the E2E
customer testing will fail in these areas.
¢ We are still experiencing great difficulty in agreeing the interface specifications
for the PONU Clients. This issue has been escalated to the highest.Jevel within
Post Office but little progress-has been made. Further meetings with Horizon
have been arranged for early March but we are not hopeful.
¢ The Data Warehouse is in the final stages of testing and is achieving a success
rate of over 90% in the first cycle of the audit run. Changes to address issues
with SLA monitoring and to incorporate the new invoicing process will be
intercepted at a later date.
e The majority of the infrastructure (auto-configuration, Tivoli, audit, message
broadcast, training mode, Maestro, FTMS and Network) team are‘now
addressing bug clearance and enhancement work on CI4, the exception being
the Tivoli packaging unit who aré fully occupied with the CI3 implementation.
¢ The RODB v2.6 is holding to the.revised delivery plan agreed with the
implementation team. A final run of the DIT test is scheduled to take place on
the live gateway in Kidsgrove 6th.- 13th March.
» The CI3 (VPN) integrity testing (fail-over/recovery) has been completed
successfully except for systems management of the counter migration. The latter
is not due for completion until week ending 10th March,
« The B&TC testing for the Cl4 release comprises of 6 cycles (4 main passes, a
regression pass and an audit run). The first cycle of the CI4 release has been
completed but the coverage (65%) was lower than expected. A full analysis is
underway but initial indications are that we encountered a number of
integration and interface problems which prevented many test being run. The
next cycle is due to start Wednesday 8th March but this may be delayed to
enable us intercept the latest version of Reference Data from PONU. There have
been several abortive attempts to validate this‘'data and the issue has been
escalated within Horizon. If this data is not included in this cycle it will go.
directly into: the first cycle of the customers’ end to end testing.
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¢ The counter defensive (stability) testing is now underway. The blitz test finished
on 27th February and the first cycle is due to be completed by 7th.March. These
special tests are désigned to ensure that the counter software demonstrates a
very high level of robustness and stability even when subjected to unusual user
behaviour.
COST DOWN
e The Technical Design Authority is seeking ways of achieving a substantial
reduction ii the volume of traffic across the network. If.successful this will
result in a significant annual cost savings for the remainder of the contract.
« We have secured a new licence agreement with Oracle for the development of
future ‘Host’ applications fora price less than-anticipated in the business-case.
e The introdtiction of the upgraded link between the data centres from 34mbit to
15Smbit has presented an opportunity for reducing cost. A full study is
underway.
* The successful demonstration of the satellite solution provides a lower cost
alternative to frame relay. Further work has been commissioned to identify the
extent of the saving:
CURRENT CRITICAL PROBLEMS : 4
° None
ISSUES
¢ Improvements to the rig building -process continue to be implemented month on
month but the service has still not reached the level required.
* We-are currently carrying outa detailed investigation of the Service Level
Agreement Monitoring (SLAM) functionality included inthe Data Warehouse. It
is nor yet clear whether we have a contractual exposure requiring significant
resources to rectify.
e PONU have recently insisted that we introduce a software interface to a new
type of scales (Avery Berkel 702). These scales enable heavier packages to be
weighed and are normally shared with-a numberof counters. This latter aspect
creates several technical difficulties and we are also unsure whether we can
obtain a software driver.
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Version: 1.0 _
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e We:are contracted to complete the migration of all the AP Clients from the
current Post:Office HAPS system by the end of.roll-out. In order that this may
be achieved we must agree the. interface specifications for all:clients by the end
of March 2000. Progress to date suggests that this will not be achieved even
though the issue was-escalated within the: Post Office. Further meetings have
been arranged in March.
¢ Itis-now’'very unlikely that the SPM (British Gas:Smart Card) will be included in
thé CSR+ release in September 2000 due to the difficulties reported préviously.
We hope to gain access to the British Gas site early March but it is unlikely that
we will now have sufficient time to complete the required interface testing.
e When.a Post Office is temporary closed for more than 3 weeks, we havé
difficulty reinstating the business because much of the relevant data has been
archived. Fortunately, this has not yet occurred but we afe:certain that.it will
before roll-out finishes. Further workshops are being held to determine the best
way forward.
COSTS
e The development-forecasts demonstrate that even with the additional
development-resulting from the rectification plans, costs remain under tight
control and subject'to regular financial reviews throughout the year.
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Commercial &
Financial
Report
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ICL Pathway Commercial & Financial Monthly Report Ref: PA/REP/047
Version:. 1.0
Da 23/03/2000
Commercial & Financial Report
MONTHLY SUMMARY
¢ The drive is squarely on Budget setting for 2000/01. The. objective is to have
agreed department budgets tied down for April, including risk, cost down and
task management actions, and a best view of biisiness development revenues and
incremental costs.
¢ With Project, ERA and Network Banking gathering momentum, Option B is
coming forward into 2000/01. The Budget we have submitted to Group thus far
represents an ‘Option A+’ picture (Baseline Contract but retaining the capability
to go to Option B).
* The focus on monthly forecast reviews, now better integrated with resource
planning; risk management and the Business Case, continues. Progréss is
generally encouraging, with Customer Service well on top of their brief and
significant progress within Development on tying down their resource plans for
Option A. There is more to do in other areas before I can be satisfied that we
are properly under control (I exempt Business Development for the time being
because more definition of new work is still required first).
e In particular, the continuing inability to forecast costs.in the month correctly (or
otherwise to'make appropriate accruals) is plain not acceptable. Last.month, the
total underspend was well over £4m in the month, half of which was in
Implementation. This is:the third month of major cost and cash deltas.
Underspends are far better than overspends, but any deltas of this magnitude
erode confidence that we know what we are doing and play havoc with cash
planning. It is not good enough to assume that the deltas in.month aré merely
phasing errors: if the assumptions are that work will complete earlier than is
actually going to be the case, that poses questions about extension of
subcontracts and consequently increased costs overal!. This must be sorted.this
month, once.and for all.
e The year-end position is firming. The profit forecast has been increased by a
further £1m to. £39m. De La Rue have-confirmed that they will sign the
Termination.Agrcement (at the amount agreed before Christmas) within.a wéck,
thereby confirming the provision release as forecast. PwC have accepted the
principle of revenue accrual and the 9% profit margin for this year’ profit
récognition, They appear to be coming round to accepting our revenue accrual
method having had ‘more information on our Build cost profiles from Graharn
Wingrove. Martyn Bennett has taken them through the Risk
Register/Contingency methodology and detail, and they appear comfortable.
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Successful work on.risk mitigation notably includes resolution of the last time
buy requirement for PCs using the existing 365. This had four beneficial effects:
it removed the technical risk and the:risks to roll out, it reduced the contractual
commitment for counter equipment (by some 350 units), it effectively ties POCL
into the ‘luggable’ mobile, and it-reduced the buy price of PCs from FJS. All in
all, worth close to £3m to the Business Case: a nice piece of work by Steve
Reed. [The-resolution eritailed getting POCL to agree to a reduction in the
contracted entitlement for counter positions and to fix for the first time the mix
of gateway, single position, and ‘basic’ configurations. In return, we agreed to
give POCL a credit note approaching £0.5in to be suéd for buying new services.
They may also use part of the credit to increase the number of mobiles (at a
premium of £720 each), but only of thé ‘luggable’ variety with common
components, We still.need to raise a CCN to introduce this specification in place
of notebooks. Other volume requirements (spares, test, training and‘help desk)
were determined separately in consultation with interested parties. A final push
on price secured a-further reduction from FJS of.20 Euros plus a commitment to
seek further component savings (EICON and Specialix cards, processor) of
which 85% will come to us. The price for the 15,500 or so final buy machines is
‘some £85 below FJS’s first quote (assuming no such additional savings)].
A relatively quite. month on the CR/CCN front. A new, official contract baseline
is now available for general use, the first to have had all approved CCNs
incorporated (up to November 1999) since Drop Down in, December'1996!
Hilary Forrest can give you driving lessons:
Progress on time recording, essential for us to support billing on CCNs and
imminently ERA and Network Banking, has been disappointing. With Propel
AMS and Oracle OPA going backwards, we will need to gap fill with a manual
process.
PROGRESS
RISKS
.
Roll out funning ahead of plan — outstanding results (which just about
compensate for Implementation’s poor forecasting....!)
Financial performance remains well within Plan.
Successful risk mitigation actions, especially on PCs.
Project ERA and Network Banking developments: Option Bis taking shape now
— very good news even though there will be many challenges to come:
Better engagement with A&TC on resourcing — although plenty more still to do.
Generally down on last month.
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ISSUES
e The need to establish ‘rules of engagement’ with POCL.on the new business
activities. Having ‘conceded’ three weeks consultancy as pre-sales.contribution
on each of ERA and Network Banking (the right thing to do to get started), the
trick will be to convert the relationship beyond PID and ITT respectively to fully
fee paying from then on. Notso much an issue‘at this stage as a challenge.
« Resourcing: we will need up to. 40 more business analysts, system analysts,
project manger and programme office types to support,ERA and Network
Banking. Weare likely to need at least some of them within a very few weeks.
Having waited for the curtain to.go up on.new business, the risk is that we will
appear flat footed in responding to an excéss-of demand. This could be.seriously
damaging to our future prospécts.
FINANCIAL PERFORMANCE
e The Controller’s report follows.
February 2000 Finance Highlights
£000s
Revenue
Project Cash Costs
Depreciation
Interest Cost
Profit / (Loss) before Capitalisation
Allocation of result:before Capitalisation:
(Additions to) / Reductions in Project WIP
Project Profit Recognised
International Activities
Profit/ (Loss) before Provision Release
Provision Release
Total Profit / (Loss) Declared
Month Month YTD
Actual ‘Feast = Variance Actual
25,019 24,124 895 191,636
(7,599) (12,273) 4,674 (90,662)
(1,760) (1,779) 19 (14,749)
(683) (680) () (10,393)
14,977 9,392 5,585 75,832
13,233 7,730 5,503
1,752 1,672 80 17,241
(8) (10) 2 (389)
1,744 1,662 82 16,852
10,000
1,744 1,662 82 26,852
Notes:
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Balance Sheet Actual Feast = Variance
£000s better/(worse)
Net Fixed Assets 44,205 45,155 910 3
Project WIP 70,464 75,967 5,503
Other Working Capital 5,623 4,163 (1 460) 4
March 1999 Provisions (43,316) (45,654) (2,338)
Net Borrowings (82,600) (85,297) 2,697
Total (5,624) (5,706)
Share Capital 151,700 151,700
Retained Earnings Deficit (157,324) (157,406) 82
Total (5,624) (5,706)
Headcount (excluding Temps) Actual F'cast — Variance
Permanents 234 225 (9)
ITs 10 9 (1)
Freelancers 195 200 5
ICL Contractors 141 152 11
Total 580 586 6 5
i. Revenue and Profit: Actual F'cast Variance
Installed Offices at end of month:
End January (28th) 1,969
End February (25th) 3,019 2,964 55
Basis of revenue’accrual,.ré. next Milestone Payment:
No.of installations in the month 1,050 995 5.5%
(Current accrual rate is £23,351 per office)
£000s
Milestone Accrued Revenue 24,518 23,234 1,284
RFI Invoicing 274 640 (366)
Installation-based Implementation Cost Share: 227 215 12
CCNs 30 (30)
Other 5 (5)
Total Revenue _ 25,019 24,124 895
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Daré: 23/03/2000
COMMENT
e Revenue - mostly comprising accrued rollout-revenue - was again slightly ahead
of forecast, as‘we managed to maintain the’small favourable position vs. the
contracted rollout plan. The invoicing for excess outlet modification costs was
not made in the month, but is expected to be agreed with POCL during March.
2. Cash Costs
Main Variances arose as follows:
¢ Following last month's sizeable favourable variances on Implementation sub-
contracts, it was expected that a large amount of catch-up accruals would be
booked in February, and.a central provision of £2m was created in the forecast.
Actual charges from these sources were in fact still £1.2m less than the
Implementation department's own forecast for the.month, leaving the central
provision untouched.
e Elsewhere, OSD project costs were also lower than forecast by a total of £0.9m,
of which £0.5m was due to the forecast incorrectly classifying expenditure on
Cisco routers as project expenditure rather than a capital cost. Energis charges
were in line with forecast in total, but an internal re-classification of costs
relating to T&I and Implementation activities (into communications costs) gave
an apparent operating cost-gain.
£000s Actual F'cast Variance
Operating Costs:
"OSD Data-Centre Services 594 1,297 703
OSD Field/Help Desk Services 773 976 203
Energis Charges 151 S45 364
SLA and Reconciliation Penalties 142 142 0
Termination Costs charged to Provision (741) (741) 0
Resource Related:
Own Staff and Travel 990 1,087 97
Freelancers 1,956 1,932 (24)
ICL Contractors and Internal Charges 1,282 1,383 101
Subcontracts:
WTL Site. Mods & Preps 904 987 83
Pearce Site Mods & Preps 457 658 201
Knowledgepool Training 1,587 1,625 * 38
Celestica Hangaring Services 302 297 ()
Exel Delivery Services 97 954 857
Central Allowance for catch-up invoicing 2,000 2,000.
Escher Costs 246 132 (114)
Other 3rd Party Services 47 36 (11)
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Other Costs:
Maintenance 56 83 27
IT & Communications 453 441 (12)
Premises 219 240 21
Exchange Differences 18 100 82
Gov't 1999 Contrib'n - Final Recognitio (2,000) (2,000) 0
Legal & Professional 51 15 24
All Other Costs 15 54 39
7,599 12,273 4,674
3. Fixed Assets
Counter equipment additions again lagged behind forecast levels. The Cisco router additions
were incorrectly shown in the forecast as a project cost rather than a fixed asset addition.
£000s
Training Systems/Upgrades
Counter Equipment
Energis PO ISDN Installations
Router Equipment
Own Use IT Equipment
Test and Support Equipment.
4. Working Capital
Actual
133
2,198
289
478
27
182
3,307
F'east
197
3,308
339
20
372
4,236
Variance
64
1,110
50
(478)
(7)
190
929
*° Core Working Capital was £1.5m worse than forecast. This is not surprising, given the
favourable variances in both,revenues-and.costs. Accrued debtors:are higher ‘than
forecast and cost accruals are lower than forecast, both impacting adversely-on working
capital levels.
© The level of 3rd party creditors bucked this trend, with.a favourable variance of £3:7m,
which was due in part to the-receipt of the invoice for Girobank's final settlement which
swelled creditors by £2.7m and also to extended payment.terms on FJ recent:PC:
supplies, together with WT retentions.
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The main elements of Working Capital are as follows:
£000s
Debtors on invoices actually. raised
Accrued Revenue
Escher Licence Fees paid in advance
WTL "Float"
Other Prepayments
VAT
3rd Party Trade Creditors
InterCompany Creditors
Accruals and Back-to-Back Agreements
5. Headcount Analyses
Actual
593
29,241
718
1,250
781
2,718
(12,080)
(10,953)
(6,645)
5,623
F'east Variance
346 (247)
27,605 (1,636)
756 38
1,250 0
730. (51)
1,818 (900)
(8,344) 3,736
(11,904) (954)
(8,094) (1,449)
4,163 (1,460)
e Departmental forecasts were again overstated if the short term, and the central
adjustment that was included in our forecast.submission proved to be alight over-
compensation.
Development & Programmes
Permanents
ITs
Freelancers
ICL Contractors
Total - Development/Programmes
Customer Service
Permanénts
ITs
.Freelancers
ICL Contractors
Total-- Customer Service
Implementation
Permanents
ITs
Freelancers
ICL Contractors
Total - Implementation
Actual
55
4
182
118
359
57
10
78
81
16
105
F'east Variance
59 4
3 ()
189 7
122 4
373 14
59 2
3 0
8 0
ul 1
El 3
82 1
0
7 (ty)
18 2
107 2
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Central Departments
Permanents 32 34 2
ITs 2 2 0
Freelancers 2 2 0
ICL Contractors 8 10 2
‘Total - Central Departments 44 48 4
Central Forecast Adjustments
Permanents 0
ITs 2 2
Freelancers (11) (1)
ICL, Contractors (20) (20)
Total - Central Adjustments 0 (29) (29)
Total Company .
Permanents’ 225 234 9
ITs 9 10 i
Freelancers 200 195 (5)
ICL Contractors 152 141 qi)
Total - ICL Pathway 586 580 (6)
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MONTHLY SUMMARY
¢ The pace of Requirements work is hotting tip. Thé Network.Banking Tender will
require input from us as nominated subcontractor. The project ERA should start as far
as Requirements is concerned around 17/3. The Marker Development Plan, basically
POCL’s own: prospect list, is due for publication 9/3. And the néar term exploitation
activity is being demonstrated using pre-existing functionality. In addition a surprise
RFI for Electronic Bill Presentment was handled.
¢ — There is, of course, much sweep-up work on Acceptance and CSR and CSR+.
DETAILED PLAN ACTIVITIES
NEW BUSINESS REQUIREMENTS
e John P has researched how we can support short-term cross-selling / up-selling and
assessed what could be done longer term. Margaret Twelve's nominee, Kevin Brown,
attended 28/2 for discussion and demonstration. A Terms of Reference paper for this
activity was provided to Tim Thorpe. In the short-term use’of the Clerk Instruction
Line and the required grouping of product items can be exploited, but only for variable
price products.
e Astart has been made on.Project ERA. The POCL.Prince-type plan (PID),
steered by John Hunt is due for publication around 3/3 and POCL is seeking
ways of getting on with the Business Requirements and Analysis phases before
formal approval by PONU. John Hunt has given resource estimates and the
pricing proposals for these phases have been made.
¢ The Network Banking first level Business model was refined and several different
usage-.scenarios incorporated as a basis for assessment of the business
opportunity, To achieve profitable business a minimum fee of 60p per
transaction would be required; even this gives only a marginal acceptable return
for medium growth volume predictions. Some additional research was done into
business volumes for the banking sector - volume of existing ATMs, current
accounts, card usage etc. Estimates were also made of retail bank account and
branch volumes and potential savings from closure programmes.
* Various discussions have been held with ICL FS on both Network Banking-and the
related ATM ITT. Follow up is expected on both subjects. The Network Banking RFI
is anticipated to lead to discussions‘with other “back-end” potential service providers.
The ATM ITT is likely to lead to discussions with Nationwide and Abbey National on
the potential for use of the Horizon infrastructure and options for some degree of
integration with the existing applications, e.g. cash / stock movement.
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¢ = The first version of a discussion paper on strategic. options for-developing Network
Banking was produced for (subsequent) consumption by POCL: It highlights the
requirements for Horizon integration of, and design control over, various key aspects of
Network Banking and suggests those areas where 3rd party development’ would be
appropriate. [t is intended as a “door opener” to establish improved discussion with the
POCL Network Banking ‘unit.
* “Pen pictures” for'the prospect areas of new business were further developed in
Anticipation of publication to us of POCL’s Market-Development Plan due;around 9/3.
¢ POCL published an RFI on Electronic Bill Presentment and Payment leaving just five
working days for a response. A response. was dispatched on 3/3 (to time), by a
combined effort from Pathway and Financial Services. Fortunately there'was a good
deal of synergy with recent FS work with Transpoifit (as product supplier) and BACS
on a similar EBPP proposal to APACS.
«Although the focus-of this POCL RFI is.Internet based e-bills services we have also
identified the potential synergy with existing physical bill payment (potential for a full
outsourced service to Utilities) and the potential for use of Household Budgeting facility
to provide. bill budgeting presentment/payment at the counter for cash orientated
customers,
ACCEPTANCE LOOSE ENDS
¢ = The POCL. Acceptance Manager has now left the project and handed over the residual
actions to business-as-usual.
e¢ We have dealt with.queries from POCL concerning Al376. One formal letter. has been
responded to attempting to.ayoid the.conclusion'that we had not found EPOSS
reconciliation incidents that we should have found or that we have not reported those
we did find. In reality CS are greatly hampered in “spotting the incident” because the
reports have not had fixes:implemented and report large amounts of do-nothing
information. We have attended the Release Management Forum and proposed some
re-ordering of the fix backlog, but it will be at least until the first week of March before
this situation improves.
¢ Also the requirements of security have caused reports to be rétrieved manually rather
than by automated mail and handling mistakes are inevitable. In addition some changes
to the CS procedures on Reconciliation have been devised.
¢ The CP to provide CS with a TIP file Repair Facility is provisionally approved pending
OTT impact. Extensions to it sought by CS will be the subject of separate CPs.
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* A314: The.agreed documentation set comprises the body of the document Generalised
API for OPS/TMS, plus-three appendices (App A: SmartCard Manager API; App B:
KMS and Cryptography; App C: Systems Management). The POCL ATM, Bob Booth,
has said the main body of the report (173 pages) is acceptable and will be signed off on
his return from leave. Appendices A.and B are with the customer for final review.
Appendix C is being reviewed internally prior to being issued for final review on 29/2
February. A CCN has been drafted and will be issued.as soon as'these Appendices are
approved, although POCL have stated that this will not be signed off until the TMS
.Architecture.Specification and the OPS Architecture Specification have both been
updated. POCL have provided extensive comments on these documents, and work to
update these is scheduled to start on 28/2.
© A1369 is awaiting closure by POCL. The 'OBCS scan failure after manual scales
transaction problem had been fixed in the field and POCL is to tést this before formally
closing the. Al.
CSR/CSR+
© Good progress has been made on circa 350 comments and questions on the SADD.
The largest tranche is on EPOSS. In many cases the motivation behind a comment or
question is to force us:to describe how wé do something rather than to define what we
are committed to do, thus extending our commitment. Some such comments will be
dealt with by reference to the-existing PPDs. However, for others it will probably be
necessary to provide a version of the up to date Technical Environment Description
(TED) on non-disclosure terms, and Peter Wiles is preparing such a version should it be
needed.
* Some work on the SADD Appendices is needed, for example to include material on- LFS z
as a new Service. As part of this the volumetric estimates'in Appendix B for interface .
characteristics were reviewed. In some cases these can now be replaced with
measurements from thé live estate. to date, extrapolated to full outlet-volume. The
existing SADD volumes are derived from workload brief estimates, whereas the live
data can now include useful information particularly with.regard to peak volumes in the
Christmas period. This should be completed next month.
¢ John P with support from the rest of the team has provided dispositions for 180+
EPOSS PinICLs, either-to fix for CSR+, fix one day or fix never.
e John P has sustained a number of meetings with POCL to tie down how they want to
treat the Receipts not equal to Payments issue at migration and during normal
operation. A CP and CCN for a £35K- paid study has been produced. The changes to
officé.and stock ‘unit balancing :are going to ‘have to wait until after Cl4, but we expect
the changes to MiMan (for migration) could be by July - provided that POCL do not
waste too much time before authorising the CCN.
e John P is sponsoring a CP to make the changes necessary to meet our commitment on
the graceful removal of non-core products.
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¢ Tony H has supported CS in the development of validation processes and authorisation
procedures to ensure that faulty reference data is fot distributed to the live estate. It is
planned to hand over support:responsibility of the Comparison Report (referred to as
the “Attribute Checker” in the 3rd Supplemental Agreement (para. 5.2.3 of CCN600))
to Systems Directorate once this is documented and accepted by OSG (POCL,
Farnborough). We'are awaiting a document from POCL stating which Reference Data
items POCL do not test and therefore need highlighting. Other changes’to the report
have been agteed and are being implemented. Clarification on this highlighting issue
will enable the Comparison Report to be completed and signéd.off by POCL.
¢ A number of the SLAs on the HSH are extremely demanding, being beyond the-normal
industry standards. Tony H prepared a document proposing ways in which the service
targets could be more easily met, and investigated the contractual issues (Pathway to
POCL, and Pathway to OSD). The document sets.out 18 recommendations for action.
Legal opinion is that although repeated failure to meet the SLAs concerned will not give
grounds for termination by POCL, it can hold our feet to the fire and suspend the
rollout.
e Systems Directorate has identified to Tony H a solution at CSR for handling short-term
closure and reopening of outlets where the message store is aged out. This requires
POCL to undertake actions to ensure that the outlet is closed down tidily, ¢.g. runs
Cash Account.
© Version 4.2 of the Security Functional Specification elicited 94 review comments from
POCL.
OTHER ACTIVITIES
e The ISO9001 Programme Board activities and timetable has been established. This
indicates that the CAR, BRD, KPR and Acceptance processes are the prime areas to be
brought up-to-date.
© Tony H and John P have.been trained.in the new: version.of MS Access.
e Everyone has attended Conversations for Change.
¢ All staff have appraisals prepared and in review.
¢ Dave H organised a presentation at the February Distinguished Engineers meeting,
given by John Hunt, on the experiences of integration and test in the Pathway complex,
high volume project environment. Useful follow up discussion included the suggestions
of extracting key metrics and experiences for wider use across ICL.
CURRENT CRITICAL.PROBLEMS
¢ The rapid.re-orientation of activities to Requirements by POCL, particularly the nced to
staff bid teams for the Network Banking activity, may require us to staff up to handle
several initiatives in parallel.
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¢ We-somehow have to gain influence.with, or over, the POCL’s Network Business Unit.
They clearly have thedrive but their direction is not in line with our-needs and there
are too.many surprises.
ISSUES
e¢ None.
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Customer Service Report
MONTHLY SUMMARY
« Data Centre performance has been very good withthe only probléms.reported being
hardware failuré on the Correspondence -Servers-at Wigan which were quickly repaired.
¢ There were no Network incidents requiring Energis‘involvement during the reporting
period. However occasionally, incidents at Post Offices are:taking too long to resolve.
¢ Progress on AP Client Migration remains a concern. Both Pathway aiid POCL have now
accepted that the 31st March deadline (for completion of the Interface Specifications)
will not be achieved.
e Thé increased focus by OSD 6n the call filtration rate from the SMC has continued to
show through in improved performance, though this effort must be sustained.
e The new Business Incident Management System (BIMS) will be introduced with effect
from 1* March.
e¢ = The January Service Review was very positive, with enthusiastic feedback on the SLA
performance and the Horizon system in géneral being made by POCL.
© The POCL audit-.of the delivery of the HSH-Service at Cash Account has now ended
and an improvement plan to réctify outstanding issues of concern to POCL and.ICL
Pathway has-been put in place:
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VITAL STATISTICS
Cumulative from 1* January 2000
Live Base: 3010 Post Offices, 6658 Counters
Total number of OBCS transactions to date 12,385,665
Total number of OBCS transactions in February 4,562,258
Total No. of EPOSS Transactions:to date 55,917,732
Total No. of EPOSS' Transactions in February . 14,453,093
Total Value of EPOSS Transactions to date £2341,184,400
Total Valuie of EPOSS'Transactions in February £864,048,800
No. of APS Transactions to date 7,616,893 ‘
No. of APS Transactions in February 3,058,247
Value of-APS Transactions to date £196,968,317
Value of APS Transactions in February £83,821,800
NB: EPOSS transaction-data'is the absoluté sum of receipts in, payments out-and,zero
value transactions.
The above data is consolidated from the information now available 6n the Customer
Service web site:at the following.location:
http://iclpathway.braQ1 icl.co.uk/weekly%20report/section%202/supportiig. hrm
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PROGRESS
OPERATIONS
Availability Management
« Data Centre performance has been very good with the only problems reported being
hardware failure on the Correspondence Sérvers at Wigan which were quickly repaired.
There is still.an outstanding issue with the Audit Servers, which appear not to be built
in accordance with the Technical Description. OSD are investigating.
e There were no Network incidents requiring Energis involvement during the reporting
period. However there have been occasional incidents at Post Offices that are taking
too. long to resolve. A letter of complaint has been sent and a meeting is planned with
Energis and BT in.order for both to explain their lack of'action:
© There has been maximum availability of all the systems during the reporting period.
Archiving has been re-enabled on Correspondence Server 4 at Wigan and the archiving
procéss is being monitored. The relocation of the PowerHelp Server, the enabling of
Log shipping and. fail-over testing is planned for completion by the:end of March.
e Asummary of SMG development activities has now been produced. Once agreed the
activities and dates will be included in the CS level 3 plan and subsequently be fed into
the programme plan.
e — There.is a good.all round improvement in the SMC with regard to software ‘
distribution. The installation of the EICON driver upgrade.has made a significant
improvement to software downloads with only very a small tail (approx. 2.6%)
remaining.
Change Management
¢ Software Release. Management is managing to keep on top of the volume of changes
coming; through, although the delay in the update to the Reference.Data download and
the need to cope with two ‘A’ priority PinICL drops over this period, led to problems
coping with the. flow.
e There is insufficient awareness in the programme of the length of time that it takes to
get a fix from Development to Outlet. When estimating delivery dates and agreeing
implementation dates, three weeks should be ‘allowed from the time that a fix is
authorised for live.to it getting on.the Counter. This-process is being reviewed.
e The Reference Data Operational Review Forum (RDORF) is monitoring POCL data
quality. Ownership of the internal POCL interfaces with respect to Reference Data for
testing and transition to live is'still not clear and needs further work.
SLA Management
* — Implementation of the new Noh-Polling report format has been completed and the
procedures are part implemented. Further automation of processes within SSC is
required,
* The CR for the new Token Verification Service has been received from POCL. Another
CR is awaited to introduce the additional CTO mini-schedules.
« — Late delivery of Reference Data or Reference Data Amendments by POCL causes
Pathway problems in maintaining the scheduled timescales. A process is being:
introduced to trigger an E-Mail to POCL OSG every time they are.late with these
deliveries.
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© Progress on. AP:Client Migration remains.a concern. Both Pathway and POCL have
accepted that the 31* March deadline (for completion of the Interface Specifications)
will not now be achieved. Therefore all APCM dates in the Level 1 plan are subject to
review. A POCL instigated move of the HAPS interface system from Farnborough to
Andover in May 2000 can only exacerbate the problems. This'is documented.and
Should be highlighted at the Project Board forum.
Performance Mgt
* — Earnonn Long has now left Pathway and this role is‘to'be taken over by Deirdre Conniss
once a replacement Release Manager has been trained.
SUPPORT SERVICES
System Support Centre
Progress
e The increased focus by‘OSD on the call filtration rate from the.SMC has continued to
show through in impréved performance, though this effort must’be sustained.
Assistance continues to be provided to the SMC activity aimed at driving down the
volume of Events presentéd to them.
¢ The proposals for the rationalisation of all 4th-line Host Applications support within
A&TC have ‘now been considered by Development but at this stage the proposals-will
not be taken up.
e The amendment to PinICL, to enable SSC to disconnect the. PinICL priority of a call
from the PowerHelp priority, hassnow been applied.
© To accommodate the additional. staff in SSG-and OTT, extra space is. required.
Workplace Management is working towards providing this additional accommodation.
Issues
e There has been concern that a methodology for constructing a file.of corrected EPOSS
Reconciliation transactions, using the new functionality, had not been worked out. A
CP has been raised for the Development work on this but for operational purposes, SSC
need ‘additional functionality and a separate CP will be raised for:this.
Metrics.
February
Total Calis raised through SSC 1555
Total Calls closed through SSC * 1677
Release Notes:tested by OTT 24
(Of the total calls closed, 536 were in categories (e.g. Advice and Guidance, Published Known
Error) which should have been closed by SMC).
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Operational Test Team
Progress
e Key focus over the last two weeks has been on Cl_3/VPN.-OTT have been heavily
involved ‘in the final stages of testing and Pat Lywood was-on-site atthe Data Centres
for upgrade work during the 26"/27" weekend.
© Release introduction activities are now starting to look towards Cl_3.2, the
RDMC/RDDS Enhancements for CSR+.
Issues
« TeamWare have advised of difficulties in providing 4th-line support for TeamWare
Crypto. A meeting has been held with them to consider possibilities for the way
forward.
INFRASTRUCTURE SERVICES
Business Effectiveness
1809001 ,
© All CS staff have been briefed on the requirements of the BSI assessment. Updates are
provided on the CS Intranet.
¢ Revision of'all CS documentation is underway. Q&RM have incorporated the
completion dates into the overall Programme Plan.
© Confirmation of the actual BSI assessment date has still to be agreed, however the latest
targeted date is sometime during May.
Management Support
Business / Reconciliation Incident Management
« The new Business Incident Management System (BIMS) will be introduced with effect
from 1" March. This goes a long way to.satisfy POCL’s incident management
requirements following the 3“ supplemental agreement. The associated incident
management documentation has still to be agreed and signed off by ICL Pathway and
POCL. It is planned that this will be completed within the next two weeks.
e Weare currently receiving about 30 receipts and payment incidents from newly
migrated Outlets each week. This is to be expected whilst the current-migration process
is being used. In addition a small number of reconciliation incidents have.been received
either via the Counter reconciliation reports or direct from POCL. Where a fault in the
reporting process has been identified an appropriate system incident has been raised
with Development.
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Management Information
The weekly report is now in its fourth week of production. There has been considerable
change to the format following comments from within CS and externally throughout
ICL Pathway and Fujitsu. The report due for publication on 3 March incorporates .all
current Fevisions. It is expected that this'report will come under change-control now
that an acceptable format has been developed.
The:Service Review for January has’been held with POCL. This was one of the best
reviews’ yet with positive feedback, on the SLA performance.and:the Horizon system in
general, being received from the customer.
MSU are currently assembling the data required for the calculation of financial remedy
payments in respect of those remedial SLAs where we have failed to reach the required
level of:conformance.
Considerable effort is still being employed in checking the HSH Advice & Guidance
and Hardware / Network calls to ensure conformance to SLA.
There are currently in excess-of 20 high.priority PinICLs under investigation in respect
of faults within the.Data Warehouse, SLAM and the remedy‘calculations.
A potential candidate for the outstanding MIS analyst vacancy has now been identified.
Personnel are currently involved in preparing thé appropriate job offer. Ir is planned
that this vacancy will be filled within the next four weeks.
Desktop LT.
No major problems reported this month.
Strategic Services
Business As Usual
The POCL audit of the delivery of the. HSH Service at Cash Account has-now ended
and an improvement plan torrectify outstanding issues of concern to ROCL and ICL
Pathway has been put in place. The unit had two key deliverables that have now been
achieved.
The Cash Account ‘call codes have been brought into use and initial feedback:is positive,
the new coding structure enables enhanced analysis.
The interface agreement, between NBSC and HSH, has been developed and issued over
the past month. Demonstrating-commitment from both Pathway and POCL to ensure
the working relationship - works well
The sécond helpdesk review forum was held at the end of February.’ Brendan.Nugent
and Debbie Hall attended from HSH alongside Bob Davis, Jan Holmes and Dave
Fletcher from CS. Jan was.invited along to review how we-interact with the customer.
The meeting went well, there were two main areas of focus.
The completion of the interface agreement and its introduction to live service. The
interface agreement will be used until the end of March at which point comments on
the document will be taken from the.respective helpdesk teams. The comments will be
incorporated and then the document will be presented for final approval.
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e A review of the POCL docunient called HSH complaints. A detailed analysis of the.calls
logged with NBSC as HSH-complaints has been completed. Out of $2 calls presented, it
was difficult to identify more than 3 that were complaints about the HSH service. This
was raised as an issue with NBSC, who agreed to look at how they present their data.
Many of. the issues in the “complaint calls” would have been resolved at, point of
enquiry had NBS explained agreements POCL and ICL Pathway have made-with
regard to how certain problem types would be dealt with and how service would be
delivered. The meeting agreed a better way to deal with complaint calls.
© Julie Welsh is presently reviewing and tightening up the complaint procedure.and is
working to ensure that the procedure is well document.and works from end to:end:
Julie will be working close to the Business Efficiency team.in carrying out this work.
Additionally Julie is conducting a detailed analysis of Hardware and Network calls with
the intent of providing feedback to OSD to improve the delivery of their service:and
preparing for BSI audit.
* Alison Peacock was successful.in implementing new calls codes for Cash Account. She is
now managing a broader CP to support more generic coding activity..Additionally it has
been agreed with Alison that she will complete some service development work for
OBC to manage the introduction of weigh scales to the Post Office.
¢ SSU are working with Post Office’to ensure they introduce weigh scales as a
programme, priced in accordance with the rules laid down in CCN202b. SSU be
meeting with POCL on Wednesday 15th March to discuss this matter further.
¢ Additionally SSU will also meet with BSM on Wednesday next week to discuss the
introduction of 3 new services:
¢ Migration services to:support long term témporary Post Office closures.
« Aremedial service to support (particularly) inappropriate call out of engineers to site.
This is needed. Recently engineers have been called to site to replace keyboards
damaged by coffee spills, clear paper jams in printers and re-seat cables..Note that as
the PM signs to accept that the system is working correctly-at‘installation, it is probable
that the re-seat is needed because systems have’ been moved and/or pulled about within
the perceived tolerance of the cable.
e ~The provision of a warranty service for electrical works - brief discussion only.
*® OCMS delivery date has slipped. Awaiting confirmation of new delivery-date from
development.
Implementation/CSR+
e The roll out:continues successfully-although one or two process issues have occurred
since 22" February. Audrey Adams is specifically looking at SMC failure to report
exceptions against Reference Data availability for implementation. There is also a
problemi with the automated Brain Build process, Counter systems brains are now being
built manually which introduces the additional risk.of user error to the impleméntation.
Mike Stewart is managing the resolution of this issue.
© —UKSS have had somé problems preparing the spares stock to support the initial CSR
implementation. Concerns have been expressed by OSD that the new system build was
not available until late last week, not giving them enough.time to prepare for the
upgrade and that the control of 2 system builds in the field will be difficult. Audrey is
working to manage out these short-term issues. Lessons learnt will be captured for the
future and the “spare upgrade.process”, which needs thorough review.
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Quality & Risk Report
MONTHLY SUMMARY
¢ Security: Work required has been defined and additional resource has been approved
for the KMS implémentation programme. Cryptographic key material has been
developed and delivered for testing and VPN introduction.
¢ Risk Management: The Business Plan Risk registers have been reviewed and are in
alignment with the Business Plan. The overall risk profile has changed a little - reduced
pe risk and increased risk due to staff attrition. The latter is now a serious risk to
Option B. A congolidated set of Business Plan Programmes has been produced and
ownership agreed with members of the. Management Team.
© Quality: IS09001. The target-for completion of documentation is now 20" April.
Discussions are beginning with BSI. A roll out. DQA has been.conducted, showing
significant improvement since Q4 1999.
¢ Audit: The 2000 programme continues to plan. The Horizon System Helpdesk audic
has begun, and the Planning and Technical Integration audits completed. The-audit
workstations at the Data Centres continue’to cause problems.
e Y2k: There were no effects due to Leap Day.
PROGRESS
RISK MANAGEMENT
* The Business Case Risk Register (both Options A and B) has undergone detailed review.
The overall profile has changed a little, mainly to reflect the reduction in pe:risk and
increased risk associated with loss of key staff. The total risk for each option is:
Option A: total potential impact, £71.4mn, weighted at’£17.2mn
Option B: coral potential impact, £86mn, weighted at £20.75mn
The Risk Register and Business.Plan are now in alignment.
The Cost Down and Task elements of the Business Plan have been consolidated into a
nuinber of ‘programmes’. Ownership has.been agreed with members of the
Management Team: The task now is to detail.the' actions required and to enumerate
specific annual targets. There is approximately £100mn of Cost Down and Task to be
achieved to meet the Business Plan, and £19mn opportunity to address adverse
movement. This should provide a focus for management attention.
¢ The Consolidated Risk Register is undergoing a.thorough review to ensure a:level of
consistency with the individual lower level risk registers of which there are. over 20.
¢ The Risk Management and Monitoring Process‘needs is undergoing redefinition, to
reflect changes.
e The Predict! risk analysis tool is not guaranteed to be the Propel tool of choice for
managing and monitoring, business risk. The-market for risk management tools is and
will.continue to be-reviewed in conjunction with the wider Risk management
community within ICL. Inthe meantime, all risk registers wil! be maintained in a
common Excel spreadsheet format.
© — Banji Oyewumi, joined QRM in early February to progress and maintain ICL Pathway’s
Disaster Recovery and Business Continuity Planning.
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Date: 23/03/2000
SYSTEM SECURITY
GENERAL
CSR
CSR+
DPA. The agreement with PONU'to establish our respective status under the 1998 Act
has yet to be translated into requirements that Will form thé basis of contractual
négotiation. A solution for the provision of training information by Knowledgepool is
currently under consideration by Solicitors. Work is underway on an awareness
campaign to highlight individual responsibilities under the, DPA 1998 that is now-in
fofce.
Security documentation status has been reviewed and an action plan is being prepared
to review and re-baseline documents pending ISO 9000 audit.
CP2142 Access to Remote Firewalls. The installation has been completed on both
machines. On-line help will provide the appropriate user.documentation.
The draft continuity plan for the security administration workstations is being prepared.
CI3 Cryptographic Key material. A significant amount of work has been done to
generate, store and log the key material required for the VPN elements at C13. The
appropriate keys have been delivered to enable VPN testing.and server. migrations at the
datacentres.
Work on KMS User Guide and review of related documentation continues.
KMS Implementation. A scoping study has concluded that:this requires 350 man days
of effort (75 accounted for in the December OMR). Additional resources have been
approved to ensure that the operational aspects necessary to manage the system are
developed and introduced within timescales. An workshop has been. arranged with all
relevant parties to raise awareness-of the inipact of KMS, review current/new KMS
requiremenits and determine how the service will be implemented.and maintained. The
output will be a plan that identifies the required operational processes, management
control and agreed responsibilities for delivery of the service This will also include
compliance with the’contractual requirements of BS7799.
An OCP has been raised to ensure that CM.and SCM staff who access the Signing
Server do so in compliance with the SFS and the ACP. The proposed work is being
scheduled. .
QUALITY
1S©9001. The Board Meeting reviewed progress on documentation-and first-draft
action plan. The target is‘now to complete documentation by 20" April.
Quality Management System Policy PA/POL/002 has been updated to give an overview
of Pathway QMS and fit within ICL Process Framework.
Packaging Return. The ICL Pathway submission to Group Environmental Affairs has
been completed for Q4 1999 and submitted on time.
Delivered Quality Audits (DQAs) have been conducted by the QRM team at about 25
sites. A Consolidated Action List hase been submitted to Implementation. Results
indicate a.significant improvement cf Q4 99.
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AUDIT
Internal audits:
eCustomer Services Audit: now complete
e — Security’Policy Deployment Audit: 3 actions remaining open in the CAP, all in the area
of Anti Virus Software.
© Change Management Audit: 4 actions remaining open in the CAP, related to activities
supporting the ISO registration programme.
« Implementation Audit: 1 action remaining opén in the CAP, Business Continuity
Plans:
* CSR-+ Development Audit: the ‘Retrospective Work’ grouping of corrective actions is
the key activity remaining on this audit.
© 11 Week Plan: the report was issued. There were no formal recommendations.hence no
CAP was issued. Closed.
« Planning Audit: the report was issued. It-is clear that there is a significant issue between
Graham Chatten and Pete Jeram’s Development Managers. MJBC has been asked to
mediate and facilitate the production of the CAP.
¢ Technical Integration Audit. Was conducted during February; report due in March.
¢ Horizon System.HelpDesk: terms of Reference issiied and fieldwork started.
* QRM Aadit: terms of Reference issued. An external auditor will conduct the work
during March.
¢ Audit Solution Problems. User testing of the Audit Workstations:at the Data Centres.has ”
been conducted. It was less than successful and resulted in a further 15 problems being
raised,
¢ Audit Data for Investigations. Theré has been a formal exchange between Pathway and t
POCL. POCL have put the matter with their solicitors. Ay
YEAR 2000 CONFORMANCE
e Leap Day has come and passed with:no reported failures within,Pathway; there have
been failures in other parts of ICL and most notably in Japan. B&TC / TVC responded
quickly to an identified shortfall in testing of systems which support roll-out‘as.an.end
to end service had not been completed.
ISSUES
¢ Little progress has been made on the Development ‘minimum documentation set’. This
has potential implications for the achievement of ISQ9001 and.in the longer term,
supportability:of the system.
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Version: 1.0
Date: 23/03/2000
Business Development Report
MONTHLY SUMMARY
* A good month with progress on a number of fronts..Most importaftly, the joint
workshop with PON on 8" February allowed issues to be placed on the table and future
areas of development to be discussed. The event proved timely and useful, not least as
part of team building and burying some of the past. However, it should be seen as a
start - we still have quite a way to go to develop a full ‘partnership’ relationship with
PON. Three specific action areas to be agreed. These were:
© — Idéntify quick wins to help PON drive for additional sales through the use
of Horizon
* Work with PON in their ERA project which will involve the re-engineering. of their
back-end processes and the demise of the cash account
« Engage with PON and their Service Development Plan which will identify and prioritise
future potential developments on Horizon
¢ = There is still major concern about Post Office's ability to fund the new work-that is
needed. The crunch will come when we.change from pre-sales effort into paid work.
¢ Two activities are taking place on.the press/PR front. We have already (in December)
submitted a proposal for external press/PR coverage in 2000. Until now, despite
frequent requests, there has been no response to our proposal. We now need to raise
this issue.to PON management. We.have also produced a proposal for internal (to Post
Office) promotion of Horizon. This needs more work before submission to PON.
¢ The ACT argument is hotting up. The second reading of the Post Office Bill takes place
in Parliament on 12" April. The Federation of Sub-Postmasters are organising a major
rally for chat day in London still aimed at getting government to back down on the
move'to ACT for benefit payments.
* We have now been informed that we are on the short list for Network Banking. There
are five other companies on the list: Unisys, IBM, Anderson Consulting,
Price WaterhouseCoopers and Brokat. Discussions with PON and Network Bank are
progressing to. define boundaries around Pathway and the back-end systems.
PROGRESS
Business Development:
° A meeting is arranged for 9th March to discuss the Service Development Plan. PON
have shared a draft of the SDP with us. It-is not a good document and needs a lot of
work. This will evolve over the next three months.
*® The proposal for ICL to undertake CSR-+ training has been rejected. Post Office will
run the training themselves. Our concern is that competency testing 'is carried out. I am
assured that this will be done. The principal rationale behind this approach is that PON
feel that KnowledgePoot will be stretched and diverted from the main training task.
Marketing Communications:
Internal Communications in ICL Pathway
¢ Staff briefings have taken place:
> FELO1 - Thursday 24" February
>» BRAOI - Friday 18" February & Tuesday 29% February
> KIDO1 - Thursday 2nd March
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¢ There are a number of.concerns regarding the-format of these events and a proposal is
being put together to.reformat.
° The new Induction events (demo day and.old-induction event merged) took place on
Thursday 10" and Friday 11 February. Communication talked about ICL Pathway and
ICL - what we do our history and information available. The new format works but we
neéd to ensuré full coverage of new staff. This is being discussed with HR.
e Excellence Awards'as nominated by Terry Austin-have been processed and certificate
and pins have been handed out to the winners at briefings.
e We are working with programmé management to develop a communication plan for
the implementation of ‘time recording’.
External Communication
* — Continue:to work with Neil Pattie to produce press releases regarding ICL Pathway.
Latest one for approval with the Post Office is titled ‘From the Scilly Isles to'the
Shetlands’ and gives an insight on just how large a nationwide project this is. There is
also an update on automation figure (over 3,000) and how we’ve achieved a record of
automating 316 post offices in a single week.
PON Communications
* The planned meeting with the Post Office regarding the. proposed press publicity due to
take place on Wednesday 8'" March has been postponed by PON till late iti April. This
is unacceptable and wé will raisé this with PON management to get more focus behind
this activity.
¢ International Postal Conference is taking place at the NEC, 22-28 May. The Post Office
has requested a ‘live’ post office to be setup for the duration.
Government communications
* — Stephen Byers read out the 2 reading of the Postal Services Bill in Parliament on 15"
February. Horizon was ‘favourably’ mentioned a number of time.
International:
e Only current activity is with Deutsche Post where we undertake a work task in January
which has left some legacy issues that are in the process of getting sorted. Acquiring
resource from A&TC has beenca very difficult task.
CRITICAL PROBLEMS
* None
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Month ion: 1.0
ly Report 23/03/2000
Implementation Report
MONTHLY
¢ We have now completed six weeks of National Rollotit, which included two weeks
running at maximum beat rate. During these two weeks we achieved 300 and 317
outlets respectively, installed and migrated. To date the installation beat rate achieved
remains broadly in line with the plan. As of 3 March; 3306 outlets had received their
Horizon system.
© Current predictions continue to indicate that the next rollout payment milestone will be
achieved at the planned date of 1" May 2000.
¢ The strategy for the.replacement PC for'the X365 has been agreed. This will involve
the purchase of a sufficient quantity of X365 units forthe duration of the programme,
up until 2005. A price has been agreed between ICL Pathway and Fujitsu Siemens
Computers, the final quantity of the last time buy will be communicated to FSC very
shortly. The quantity required for the-duration of the rollout has already been
submitted. internally by Implementation.
¢ This decision will minimise the amount-of work necessary for interception of new
technology and will guarantee sufficient quantities of PC's to meet all rollout
miléstones.
e¢ Members of the Pathway. Implementation Team are now heavily involved in project
managing rollout requirements with the ICL PFI Group, especially for HMCE, as this
begins rolling out in March. Budgets are being constriacted for the various projects.
Current Pathway resources utilised on the PFI Group are being recovered through
inter-company cross charging.
PROGRESS
¢ The RODB software version currently in use (version 2.5p), which was installed in late
December 1999, has been the most stable software version to daté for Users and
Clients. The next upgrade, version 2.6, is scheduled to'Go Live on Monday 3“ April.
This version contains.a great deal of new’functionality. The Secure Managed
Environment (SME) is‘due to Go Live-on Tuesday 2" May. This requires a rebuild of
server and Suppliers PC’s and will enclose the RODB in:a secure environment.
* PONU have started the process of cappiig outlets, two weeks prior to install week, to
ensure that the number of outlets entering: install week can be adequately resourced
with Horizon Field Support Officers (HFSOs), who support the migration activity. The
capping levels have been agreed with ICL Pathway.
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© Data from the six completed weeks of National Rollout.is showing ’that the installation
dropout rates‘are slightly lower than the planned estimates:for the 16 week installation
cycle. In response to the reduction in dropout rates, ICL Pathway‘and PONU have
agreed to make-a small reduction in the number of outlets being cut at-the start of the
16 week cycle. This is a low risk change, which will reduce the number of outlets thar
need to be capped prior to install week and provide an Opportunity for re-scheduling
outlets, The dropout rates are being continually reviewed to ensure that the optimum
number of outlets:are cut into the installation cycle.
* The input of outlets into the cail of the infrastructure programme has now started:and
ntl are undertaking surveys. Outlets are being released to: the programme by PONU, in
accordance with the release programme, which was agreed between PONU and ICL
Pathway at the end of last year. Discussions are continuing with ntl regarding the
commercial aspects of the tail. It-is expected that the infrastructure programme will
conclude during July of this year. Any additional sites identified.by PONU will, by
agreement, be undertaken as part of the Operational Business Change Programme.
* The rollout training programme has experienced some minor training scheduling issues
relating to the late issue of training invitations. ICL Pathway, PONU and
KnowledgePool have met to discuss the cause and extent of the problem, corrective
action measures have been agreed and put in place. The root cause of the problem was
identified as. a backlog in booking training venues, which caused a delay in allocating
delegates to courses and the.issuing of invitations and joining instructions. The
situation will be monitored closely over the next few weeks.
¢ -PONU have reported improved occupancy levels on the Preview Event and continue to
provide positive feedback on the content of the event.and its.impact on the delegates.
e Detailed planning for the CSR + live pilot, due to be run in August this year, has
continued. The pilot will be made up from. 285 existing live sites, upgraded with the
CSR+ release and 20 new installations where CSR+ willbe the built release. The
selection and-identity of the 305 offices will be concluded duting March.
¢ The matter of CSR+ upgrade:training for specialist staff (e.g. Auditors) has been raised
with PONU. ICL Pathway. have proposed a way forward in the draft CSR+ Training
Strategy document.
¢ ICL Pathway have submitted a proposal to PONU for providing CSR+ backfill training.
Feedback is now required from PONU before Pathway can finalise the proposal and
submit a formal response,to PONU's Change Request.
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Monthly Report Version: 1.0
ly Rep Dare: 23/03/2000
IMPLEMENTATION STATISTICS (TO 25™ FEBRUARY 2000)
Activity Change Cumulative
INFRASTRUCTURE PROGRAMME
IRGM letters issued 0 17,563
Site Surveys tindertaken 117 17,248
Site preparations done 824 14,093
Sites RFI 843 13,709
INSTALLATION PROGRAMME
RGM2 Letters issued 1281 8,052
ISDN lines installed 1363 4486
Sites installed 1054 3,030
Sites migrated and Live 1052 3,020
Counters Live 2222 6,615
CURRENT CRITICAL PROBLEMS
e There is continuing concern over the quality of:service for the Powerhelp helpdesk call
system used by the Rollout Helpdesk (as well as the Horizon System Helpdesk).
e System response times and’system availability have been persistently poor despite i
management attention. The service level remains a concern and a risk for sustaining “
rollout at,maximum beat rate. Recent diagnostic work by OSD has:indicated that
problems are-arising as‘a result’of the local area network configuration within
Kidsgrove. This work took place on 4th March and we are now monitoring the level of
improvement gained. However, early indications-are that no improvement in the
performance of Powerhelp has been achieved.
ISSUES
* (Including progress on issues reported last month)
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© Progress with ntl-on improving the quality and timeliness of preparation activity
completion.continues and there has been .no major impact on rollout. However,
while there is still evidence of quality issues continuing to arise, ntl have given
assurances thar they are taking the necessary steps to improve this situation. We are
currently monitoring this to.enable us to évaluate ntl’s performance in achieving their
objéctives. The.improyement:in the levels:of support being provided by ntl, at no
additional cost to Pathway, have allowed us to remove the contingency element being
provided by Pearce Securities and thus reduce the overall cost of contingency. The
required notice period means that the Pearce service will not.be available in three of
the four regions (IP’s 2, 3 and 4 ) from 27 March and IP1 (the fourth region) from
10" April. The.two week delay in IP] is'to ensure-support is available to minimise
any risk when installation activity moves from Northern Ifeland to the Scottish
ainland, where the first two weeks of installations will be supported.
COSTS
© The costs relating to the extension of the infrastructure programme are currently being
finalised and incorporated into a CP. The main cost is.ntl, which has come in at £600k,
this:is being reviewed in ah attempt.to reduce it.
* The Implementation unit have accepted a target cost reduction of £2m, a plan is being
developed to identify the areas for cost savings.
¢ The KnowledgePool contract remains unsigned, this has been: taken: up with Paul Butler
in an attempt to finalise this. matter.
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Version: 1.0
Date: _ 23/03/2000
Organisation & Personnel Report
MONTHLY SUMMARY
¢ Recruitment activity continued with,a significant number of vacancies being filled.
There is still work to be done in this area, both in finding replacements for leavers,
filling new positions and replacing freclancers-with A&TC people.
© Support was given to managers to help them achieve their targets in the areas.of pay
planning, appraisals and objectives.
PROGRESS
¢ Appointments in February:
External Recruits 0
Transfer In 2
A&TC 10
LINKwise 1
Freelance 10
Tem/Fixed Term Contracts 0
Total: 23
« Known Joiners:
External Recruits
Transfers
A&TC
LINKwise
Freelance
Tem/Fixed Term Contracts
Total:
Aooo FN SO
* Offers outstanding:
External Recruits 0
Transfers: 1
e = Leavers in.;
Permanent 1
Freelance 13
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Temporary
Transfers
Total: 16
© Recruitment activity continued with 23 people joining. Pathway in February. A-further
6 candidates have accepted positions:and-will start-in March/April.
© 25 vacant positions remain outstanding at month end of which half rélate to RAR’s
submitted in February.
¢ Despite a disappointing. response to the recent advertiin the local press and Computer
Weekly, Customer Service have.resourced nearly all their Operational Test Team and
Systems Support Centre vacancies.
* Inresponse to the Programme office’s need for software Configuration Management
skills, a joint external recruitment initiative is,being undertaken with.A8cTC to find
suitably qualified individuals.
¢ Inline with ICL Pathways' commitment to achieving ISO 9001, Personnel have
submitted their plan to map local processes by mid-March.
« All relevant managers. have been advised of the pay planning process for this year.
Personnel have held one to.one meetings with all managers at which initial
recommendations were.made. These are currently being-reviewed with the Pathway
Management team before agreeing the final overall plan with the Managing Director of
Pathway.
* Regular reports have been issued in order to help managers monitor their progress in
completing appraisals. The deadline for the completion of appraisals is the end of
March. To date progress in recéiving completed appraisals has been slow. However,
judging by the number of queries.raised by managers there.is plenty of activity in this
area and completed.appraisals should start to result in the next month.
¢ The visit-by the Investors:in People Assessors took place in February.. This is part.of a
company wide programme..ICL Pathway employees contributed positively to the visit,
both on a one to one basis and as members of a number of focus groups which took
place. The feedback from the Assessors will be available as part of their report on the
whole.company.
¢ Two induction events took place-and were well.attended. Sessions’ will take place in
future depending on the level of recruitment into ICL Pathway.
¢ Work continued with A&CTC on resourcing. A&TC were successful in helping fill new
vacancies but more work is needed to identify people who would be able to replace
freelancers where this ‘is appropriate. In order to address this issue a series of actions
were jointly agreed between Pathway and.A&TC and their effect will be monitored to
measure their success..A recruitment.programme has been started ito fill roles-within-the
testing functions of Pathway.
¢ Objectives set as part’of the Professional Variable Pay scheme were distributed to all
relevant employeés-and their managers with guidance as to how and by when they
should be reviewed. The:response rate will be.monitored. by the Personne! Department
and assistance given as required to help ensiire all are reviewed and logged with the
Personnel department.
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© ‘The process for providing personnel -related information for the Time Recording
System was agreed and individual responsibilities defined. This has been working on a
trial basis over the-last few weeks and the success of the process will be reviéwéd on 2"
March.
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= =" Client
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The Post Office - Client Difector’s Report
MONTHLY SUMMARY
e° Good News: Enterprise Agreement won.
* Bad News: Disturbing:reports that £20m‘is being cut from the IT budget and the likely
candidate is OneStopShop (PC supply).
Revenue. year-to date at Jan 2000 ie 10 months
an2000
A+TC 537k
MC 11,169k
GOVT —1,358k
OsD 13,640k
PATHWAY 166,570k
Total £193m (last: month £188m)
eBusiness
¢ Arranged to meet Dick Wheclhouse, MD of "e-Enterprises" reporting to Richard Dykes,
7 April - éarliest date he would offer. He has just‘completed the PO Lottery bid work.
No news on the other. MD appointment "e-Infrastructure" to design and operate
commori internal processes needed.to support external eBus-eg intranets: reporting to
Stuart Sweetman.
¢ We need to.further develop our pitch on eBUS to incorporate eg the me.gov proposed
gove-citizen service.
Service. Management Productivity Programme
° The key requirement for an asset register, prior to April 1 when IT Services take on
responsibility for all PO desktop PCs, is being developed by A+TC/OSD using
Peregrine software. However this work still suffers from continuing delivery problems
(and ICL perception issues) although one recent software.delivery milestone was
achieved
© There is a substantial longer term opportunity to design and/or operate PO
infrastructure. I have loaned Caroline Simcock to Andrew Auty to help get-through the
immediate problems.
® The single tender Peregrine Managed service opportunity - should have been ours
(OSD) for the taking.- now slipped into the autumn.
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ICL Onsite/technical resources (bodyshopping)
¢ John Bell has met with Martin Lomax regarding the outstanding debt of £100K and
agreed payment (minus one indefensible fouled work package) - Govi Div very-pledsed
- and final invoicing is under way. Agreement on repricing is close.
ICE (SPICE/CRM )
* Deloittes contracted for scoping analysis meanwhile other. SPICE. bidders have been.
asked to consider SPICE training. KnowledgePool assisted by John Bell have moved to
a shortlist (+Druid, Parity) and first phase estimates in the order of £2m - now awaits
April budget decisions.
MC - One Stop Shop
e Another very poor month with few orders and no prospects of new moneys until.May -
and next year’s PC budget is expected to.také the cuts in overall IT budget. MC have
béen told there is‘£6m in for next year between,ICL and Ccenter (vs £40m in 1999/00).
Enterprise Agreement
e Good.news: Microsoft Enterprise Agreement. business won versus CCenter in
an-restricted ténder fight with CC very upset at the outcome. Worth £2.5 = 3m
pa for 3 years.
Modern Government
* Current activity focussed of the me.gov portal personalisation bid to CITU, ICL
is shortlisted with BT-IBM. Both are in dialogue with PO to maximise the offer.
ITT expected next week-- we then need to take.a deal to PO.
¢ Mike Jenkins starts his assignment tomorrow with PO to help them pull
together their position im the wider Modern Govt débate, with an eye on a
submission in March to Cabinet Office to impact the PIU report on the role of
the Post Office Network.
OTHER. ACTIVITIES
e A good Virtual Account Team meeting held - although OSD have now decided
once again to change their sales representation. This is appalling, 4 names in 8
months.
Siebel
¢ No progress - the ICL implementation team seem unable to connect FELO1.
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Contacts
¢ Interesting meeting with Duncan Hine - gave little away as usual but it is clear
he thinks their approach to eBUS is a shambles.
e Emphasised the-need for ICL Pathway to be “quoting 6 wéeks rather than 6
months for new developments”.
e He leaves end-March, after 9 years in PO, to be MD of Generics a Cambridge- .
based strategy/technology consultancy. Alan Shepherd is appointed temporarily
as Group IS and Technology Director whilst they headhunt.
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