FUJ00058192
FUJ00058192
ICL Pathway
Bringing Monthly
Technology Progress
to Post Office Report
Counters , I CL
June 2000 HMMM
ICL Pathway Monthly Progress Report
Contents:
ss
In
=
=
(I
»
il
a
4
»)
a
ae
FUJ00058192
FUJ00058192
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
Post Office Client Report
{CL-Pathway
FUJ00058192
FUJ00058192
Programme Monthly Report Ref: PA/REP/OS1
Version: 1.0
Date: 12/07/2000
Document Title:
Associated Documents:
Reference
o) PM/PRO/002
Approval Authorities:
Name
M. Stares
ICL,Pathway Monthly Report - June 2000
Vers Date Title Source
1:0 26/09/96 Pathway Programme - Project
Planning, Reporting and Control
Position Signature Date
Managing Director
COMMERCIAL IN CONFIDENCE Page 1 of 42
wr
il
FUJ00058192
FUJ00058192
Managing
Director’s
Summary
FUJ00058192
FUJ00058192
ICL Pathway Managing Director's Report Ref: PA/REP/OS1
Version: 1.0
Date: 12/07/2000
Managing Director’s Summary
PROGRESS AND ISSUES SINCE LAST MONTH
As reported last month, generally good progress is being made, although there are still
significant pressure points. We are.now at crunch time on CSR+ and there is a
significant:risk that we will choose to delay the Pilot. Our systems and processes are
currently holding up well as we continue to increase the number of live Post Offices.
Tough Budgets have been set at line ‘unit level which reflect the requirements of the
Business Plan at this stage. These include a large cost down element and incremental
business growth, as well as very significant risk management. We are currently on track
but the next few months will undoubtedly prove a significant challenge, particularly
from a headcount perspective.
Rollout:is on track. We have now migrated almost 9000 post offices and are achieving
in excess of 320 implementations per week. We are about a week ahead of plan. We
have trained in excess of 30000 Post Office staff. This performance is recognised by PO
and relationships are developing positively with PO Network Unit. Training:scheduling
has improved following urgent corrective action to respond to complaints from PO
Directors. The Pathway team is now also working with the PFI projects to manage
other rollout programs.
As previously reported, weekly service performance is a key issue and recent problems
with. Help Desk service have significantly dented PO confidence. However, I am
pleased to report that OSD service levels are now much improved and we are getting
back towards a reasonable SLA performance. The poor service in Q1 has cost ICL over
£200K in penalties. It is intended to remove the Red Alert within the next three weeks
once we have demonstrated consistent performance. It will take week on week, month
on month good performance to fully recover the confidence of PO Directors.
CSR+ is behind where we would like it to be and is being tightly managed through this
critical phase. This is a major end to end software release with big functionality
additions. Latest B&TC test results show that we are on a knife-edge. PO decision to
proceed with user confidence test (UCT) was successfully achieved.on 16th June and is
still going well. However, there are a large number of Pinicls outstanding from our
own testing cycles and it would-be foolish to move to Pilot phase (currently scheduled
for 14th August in 300 offices) unless we‘are confident of performance. PO decision on
roll out is:planned for 6th September assuming we proceed with Pilot.
Headcount management-remains a big issue and is getting considerable attention. A lot
of progress has been made in retaining key staff. We have now entered 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, particularly amongst freelance
staff. We-are also in a rapidly developing scenario regarding new business opportunities
COMMERCIAL IN CONFIDENCE Page 2 of 42
FUJ00058192
FUJ00058192
ICL Pathway Managing Director's Report Ref: PA/REP/OS1
Version: 1.0
Date: 12/07/2000
including Network Banking, EFTPOS, Project ERA. These opportunities will demand a
range of skills and resources. Forward projection shows significant TDA, Development
and Testing resource peaks over the next two years.
PIU REPORT
The long awaited PIU report on the future of the Post Office Network has been
released. It is directly critical of PO for not moving quickly enough into new business
streams. It is also very supportive of Banking including the Social Bank and of using the
post offices as e-gateways into Government services. The report acknowledges the
investment in Horizon as a platform for developing PO business. This should provide
us-with additional opportunities and we are opening up discussions with a view to
helping PO respond to the report.
NEW BUSINESS
As indicated above, we are engaged in joint working groups/discussions on Network
Banking, EFTPOS, ERA-and Client Reengineering.
Progress on significant e-commerce initiatives proves difficult with lack-of momentum
in the PO. We have now met with Wheelhouse and Dykes/Sweetman. They all
acknowledge the need for fast co-ordinated action but are awaiting the initial
recommendation-from the two newly appointed. MD’s before committing to.any real
action.
On a broader front in the Post Office, business is proving difficult and ICL is not seen
as a ‘strategic supplier in Parcel Force nor Royal Mail. We are still tarnished with the
history. Our PC Supply contract has hit severe difficulties this month with supply issues
from MVC and.PO have exptessed major dissatisfaction.
NETWORK BANKING
ICL e-Applications'has been shortlisted for the backend ITT (5 suppliers‘in total) but
have struggled:to put together a bid team and the necessary sales focus.
Pathway is the nominated contractor for the Counter and we are evaluating technical
options with PONU and.PO Network Banking Unit. In conjunction with Escher, we
have secured a £620K feasibility study (Network Banking Proof of Concept) for the
production and evaluation of an e-enabled counter banking approach. There are
considerable tensions between the two PO units and we are treading a delicate line in
the middle. We are visiting Escher in Boston this week with key representatives from
both PO divisions. We have signed confidentiality agreements, which introduce
Chinese Walls between Pathway and.e-Applications-and will need careful management.
COMMERCIAL IN CONFIDENCE : Page 3.of 42
FUJ00058192
FUJ00058192
ICL Pathway Managing Director's Report Ref: PA/REP/OS1
Version: 1.0
Date: 12/07/2000
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. Initial scoping suggests'a'£20M plus
opportunity for Pathway in a 2001/02 timeframe. This would underpin Release 4 in
the Business Plan. However, there are some difficult decisions facing PO as they
balance cost reduction requirements with the-investment needs of ERA. Their June
Investment Board has. authorised the next phase of this project to March 2001. We
have secured a £400K consultancy contract that places us at the heart of this initiative
and should secure significant additional contracts throughout this year.
EFTPOS
Indications are still positive that this will get.the go ahead soon.
NATIONAL AUDIT REPORT
Latest indications are that a formal draft copy will be:issued to Keith Todd and others
within the next few days for quick comment. There is then still the possibility that it
will be issued before the summer recess.
PRESS/INTERNAL IMAGE
I reported last.month on a new initiative to rapidly improve the internal and external
image of Horizon. We are already seeing more positive press comment and PONU are
supportive of raising the image within Post.Office. We are seeking PO Director level
agreement to a joint press release in October to mark the 10000" post office and the
release of CSR+.
FINANCE/COMMERCIAL/BUSINESS PLAN
Please see separate report.
COMMERCIAL IN CONFIDENCE Page 4 of 42
FUJ00058192
FUJ00058192
=== Development
_—=: Report
“lp
I
iW
FUJ00058192
FUJ00058192
ICL Pathway Development Report Ref: PA/REP/051
Version: 1.0
Date: 12/07/2000
Development Report
1 MONTHLY SUMMARY
. There have been no major software incidents in the Live System during
June. Therefore the maintenance and support load on the development
team has been relatively low and has enabled them to concentrate on
resolving problems identified in the final stages of CSR+ testing.
¢ The-correspondence server upgrade in the data centres designed to provide
extra capacity is still progressing according to plan. Three of the four
Servers have been upgraded including the test rig in Bracknell and the final
upgrade is scheduled for the weekend 15/16" July.
. The fifth cycle of the Business and Technical Conformance testing
completed on the 18" June and the sixth cycle, which is the audit run,
commenced on 30" June. The fifth cycle achieved an improved pass rate of
95% against 22,280 scripts and achieved a 90% coverage. The final cycle
will run against the UCT software baseline and intercept the ‘live
reference data and will be completed 13"/14" July.
° Horizon witnessed and approved the fixes demonstrated in the target test
phase and started the formal User Confidence Test on 23% June as
planned. This critical stage is scheduled to complete 21% July and early
indications are that they are unlikely to request another run i.e. UCT2. We
do however expect to run a further ‘target test’ between 24" — 27" July to
demonstrate clearance of certain high priority incidents.
e The Data Centre is scheduled to be migrated to the new release 4"'/5*
August and the ‘live’ pilot comprising 305 outlets (including 20 new sites)
will start 14" August. Migration of the live estate will commence 11"
September and take approximately 8 weeks. These activities are
threatened by the lack of positive evidence from our volume and
performance tests and a number of outstanding software errors which
cannot be resolved in the remaining time. If we are unsuccessful in
addressing these areas during July, the live pilot could be delayed.
¢ Although there are issues surrounding the. mobile and satellite options, the
work is moving forward in accordance with our plans. The first satellite
installation is due to take place 1 November 2000 and mobiles will
commence roll out 8" January-2001.
. We have now agreed internally to dévelop a ‘Maintenance Release’ and
commence distribution to the live. estate in January. This will enable us to
group together and test a number of late change proposals and software
fixes rather than distribute them as series of incremental upgrades during
the migration period.
COMMERCIAL IN CONFIDENCE Page 5 of 42
FUJ00058192
FUJ00058192
ICL Pathway Development Report Ref: PA/REP/0S1
Version: 1.0
Date: 12/07/2000
2 PROGRESS
° The fifth B&TC testing cycle exercised 90% of the scripts and achieved a
95% success rate. A large percentage of the deferred tests were related to
an environmental problem, the Quantum Smart Card facility and Training
Mode. The special 20 counter rig-which repeats certain test scripts against
a very large message store was run successfully and uncovered a number of
performance issues. These are now being:addressed urgently.
© The sixth and final audit B&TC cycle started on the 30" June and it was
agreed with the customer that the ‘live’ reference data would be used. This
is now scheduled to be completed 13" July. Early indications are that the
coverage is very high circa 98% but new errors have been encountered.
Every effort is being made to resolve these in time for the live pilot on 14"
August.
e We are finding it very difficult to run appropriate volume and performance
tests which will give us the confidence that the.new agent and AP Host
software will handle the expected traffic. Further attempts are. being made
during July but we may have to delay the start of the live pilot if we are
unable to obtain sufficient evidence.
e The Customer witnessed and approved the target test which occurred
between 7" — 12 June and commenced the UCT proper.23" June as
planned. They will determine whether it is necessary to lunch a further run
of the UCT on 14" July. If after reviewing all the test results they insist on
this second run, it will take place between 7 August — 1° September-and
delay the release of CSR+ from 11" September to 16" October.
° In addition to resolving the software problems encountered in the various
CSR-+ testing phases the development teams continue to work on the
OCMS system, the new service level monitoring and invoicing modules in
the warehouse and a number of late change requests. The introduction of a
new ‘maintenance release’ in January 2001 will provide the mechanism for
regression testing a number of fixes to the live estate.
e Although we are dealing with a number of issues regarding the mobile and
satellite options we are still progressing according to plan.
e The proof of concept project for network banking is progressing’in line
with the schedule but it is still early days in terms of anticipating the
findings. The formal report and presentation is planned for 11" August.
e Work continues on the set of management and corrective action plans in
preparation for the ISO9001 accreditation.
3 COST DOWN
¢ No new initiatives have emerged this month.
COMMERCIAL IN CONFIDENCE Page’6.of.42
FUJ00058192
FUJ00058192
ICL Pathway Development Report Ref: PA/REP/OS1
Version: 1.0
Date: 12/07/2000
4 CURRENT CRITICAL PROBLEMS
e The number of unresolved incidents reported from our final B&TC audit
pass may at worst, cause the customer to insist upon another run of the
User Confidence Test (UCT) or at best a require a lengthy target test. The
latter also has the potential to delay the start of the ‘live pilot’ scheduled
for 14" August.
. We have not yet succeeded in gaining the confidence that the new CSR+
Agent and AP Host software can handle the volumes generated by the live
post office network. Further tests are required which in. themselves could
delay the start of the live pilot, notwithstanding the fact that we may
encounter a. major performance problem.
° We are experiencing a generic and variable performance problem in the
counter software which is proving very difficult co isolate. It is unlikely
that we will be:able to enter ‘live pilot’ with this issue unresolved and time
is running out.
5 ISSUES
¢ — The budget is coming under pressure as the programme wrestles with laté’
changes, bug fixing and the consequential regression testing. The planned™
reduction in headcount is not occurring at the rate anticipated. >
¢ The ISDN element of the OBCS foreign response time is non-compliant
with the contracted requirement. The solution has been defined and the ~
changes will be implemented in the Maintenance Release.scheduled for 7
January 2001.
¢ The Operational Change Management System (OCMS) supports Customer
Services in responding to changes in the Post Office Network (e.g.
temporary closures, permanent closures & new outlets). An interim
solution will bé delivered late November 2000 and this will substantially
reduce the manual effort involved in handling these changes and
consequently reduce the risk of human error. The final solution will be
available towards the end of February 2001 and will totally automate the
proc
e We are still experiencing a number of non-polled outlets in the live estate.
This impacts our file delivery service level agreements because the
transactions cannot be harvested from these outlets in the required
timeframe. The current crust is to ensure that we have resolve all the
system issues and to improve the quality of the various reporting facilities
available to cistomer services.
e The new enhanced invoice functionality in the MIS programme suite was
to be included in the Maintenance Release planned for January 2001.
Unfortunately, this is part way through a financial quarter (defined as Dec
— Feb in the contract) and therefore unsuitable. Plans are now being drawn
up which will enable the functionality to be exercised from the beginning
of the final quarter ic. December.
COMMERCIAL IN CONFIDENCE ~~ Page 7 of 42
FUJ00058192
FUJ00058192
ICL-Pathway Development Report Ref: PA/REP/OS1
Version: 1.0
Date: 12/07/2000
6 COSTS
¢ — The development activities continue to progress inaccordance with the
forecasts and remain under tight control and subject:to regular financial
reviews.
COMMERCIAL IN CONFIDENCE Page 8 of 42
FUJ00058192
FUJ00058192
1I0ddyJ
peroueul dq =>
2Q [elor1swU07) ==
FUJ00058192
FUJ00058192
ICL Pathway Commercial & Financial Report Ref: PA/REP/0S1
Version: 1.0
Date: 12/07/2000
Commercial & Financial Report
1 MONTHLY SUMMARY
¢ Spend and cash continue better than Forecast and Budget. The one
exception is freelancer spend, which is higher than plan. See Controller’s
report below.
e The June Forecast review against agreed Budgets yielded no Forecast
divergences from Budget. Concerns remain however as to Development’s
ability to reduce headcount according to plan between now and yearend.
Work is going on to validate the position.
* CCNSs for Network Banking Proof of Concept and ERA Phase 1 work were
signed, with a combined value over £1m. The POC subcontract with Escher
was also signed and the work is well underway. The Budget for new business
of £3m should at this rate be achievable. This is borne out by the prospect
data now entered on Siebel, which has been applied for these and for
EFTPOS. The challenge is to get POCL to commit the additional work
required for Network Banking in parallel to their selection of the banking
engine supplier.
e Demand thus far is falling more on TDA and Design and less on
Requirements than we had expected. This needs to be watched as we go
along.
e Current contractual issues, all of which are being dealt with with a view to
resolution, are listed below. None of them is ‘critical’ as of now. They are
being progressed through the Contract Administration Board.
e CCNs continue to be dealt with expeditiously:in the main by both sides.
JCCBs now typically take-no more‘than one hour. There are no critical
issues associated.
e The Business Case has‘not changed in any material way in the past three
months.
e There was a wobble over FSS implementation but we are now back on track.
2 PROGRESS
¢ Continuing excellent progress on roll out.
¢ Help desk SLAs in particular getting much better.
« Interactive Voice Response looking good, and now promoted by POCL as
the preferred method of achieving single point of contact.
e The away day with POCL was good, engendering a positive attitude and
some useful actions. Step by step.
e — Initial Network Banking and ERA CCNs signed off and work underway.
The session in Boston should help convergence of understanding of what
still needs to be done on NB.
e Satellite subcontract signed with Energis (and behind Energis, Hughes
Olivetti). The CCN is close to agreement, all issues having been resolved last
COMMERCIAL IN CONFIDENCE Page 9 of 42
FUJ00058192
FUJ00058192
ICL Pathway Commercial & Financial Report Ref: PA/REP/OS1
Version: 1.0
Date: _ 12/07/2000
week. (The subcontract is provisional and subject to CCN approval, just in
case). Work is underway to optimise roll out dates. Significant
improvements to prices and terms were achieved by dealing with HOT and
Energis jointly, getting us back to what had been allowed for in the business
plan: good work by the Pathway team.
¢ Mobiles are close to agreement with POCL and Celestica, although Celestica
have just upped the price estimate significantly (and this needs to be
reviewed further).
« Working level agreement has been reached with POCL on how to deal with
the training course occupancy shortfall (CCN likely to be approved) and
potentially also on CSR+ training.
¢ Fujitsu Siemens have just informed us that we are to get a further £250k
price reduction on PCs as a flow through from improved component supply
prices. This is under the deal negotiated last time.
e The PIU report, now published, should help us by directing POCL to take
further action on new business opportunities.
3 RISKS
* Overall, the ‘expected value’ of risk has come down slightly month on
month.
¢ CSR+ timescales are under pressure, and this shows up in a number of
individual risks. Bringing CSR+ in on time would significantly reduce the
risk profile overall. Crunch time.
¢ CSR+ performance.
¢ The matching of supply to demand when demand comes in bursts which are
difficult to read and manage. ‘Must do better’, plus it raises questions about
tuning the organisation.
* Specifically, the CSR+/ new business bathtub now looks deeper than it did a
couple of months ago. That implies a shift towards Option A and rebuilding
according to new demand, rather than rollover. ‘That will require very adroit
management.
* Ability of AXTC, Large Projects (?), OSD and KnowledgePool to support
the necessary resourcing and performance levels. Still a risk.
¢ Control of PONU, NBU and Escher. An ongoing challenge.
COMMERCIAL IN CONFIDENCE Page 10 of 42
FUJ00058192
FUJ00058192
ICL Pathway Commercial. & Financial Report Ref: PA/REP/OS1
. Version: 1.0
-Date: 12/07/2000
4 ISSUES
¢ As risks above.
e Non critical issues include, not necessarily in order of importance:
OBC pricing (POCL are challenging some of our prices), consumables
(POCL want to use generic consumables which could damage the Ithaca
printers), TIP file transfers (method of transfer of repair files), transaction
times (individual versus average), measurement of time to fix SLAs
(applicability to software faults), the Part A versus Part B rollout split
(CCN655), internal service levels (still an A2A to resolve), help desk SLAs
(but helped by IVR), training (as above).
5 FINANCIAL PERFORMANCE
The Controllér’s report is not available.
COMMERCIAL IN CONFIDENCE Page-11 of 42
FUJ00058192
FUJ00058192
Customer
Requirements
Report
FUJ00058192
FUJ00058192
ICL Pathway Customer Requirements Report Ref: PA/REP/0S1
Version: 1.0
Date: 12/07/2000
Customer Requirements Report
1 MONTHLY SUMMARY
Network Banking commitments supporting POCL’s issue. of the ITT were achieved.
ERA work starts 16 July. New opportunities for card systems, particularly for
transport ticketing, are emerging. All CSR+ business as usual activities have been
achieved, particularly thosé for AP Migration, to support the imminent release. The
Propel tool DOORS is now in service.
2 PROGRESS
2.1 NEW BUSINESS
2.1.1 NETWORK BANKING
The Network Banking team has concentrated on preparatory and supporting activities
during the Proof of Concept phase and periding a restart of the product line phase by
POCL.
Final comments on the POCL Requirements c& Solutions document were.generated and
the interim Application Interface Specification (AIS) tidied up and handed over to
POCL per Change Control Note (CCN) 649a.
Work stopped on producing the AIS when POCL decided to limit the scope for the
Requirements support to 10 man-days of assistance in the production of the POCL
Requirements cr Solutions document, the contents of which formed the basis of the
POCL’s.ITT.
The 10 man-days havé now been fully used up and an invoice is being raised. There is
no CCN in place for any additional support although we were asked to comment on
responses provided by POCL to questions asked by one bidder.
Papers were produced for Management Action 1.18, covering the potential
development of a complete Network Banking solution derived from existing Pathway
central facilities, Action 1.7 describing longer-term architecture choices in the light of
intended Riposte and competitive devélopments, and Actions 1.4/5 developing actions
for increasing control over the Network Banking activity.
2.1.2 ERA
Mike Chawner and Alan Paterson are now finishing their preparation for the Business
Analysis work that starts on 16 July. Most of the team attended John Hunt’s project
progress update.
COMMERCIAL IN CONFIDENCE Page 12.of 42
FUJ00058192
FUJ00058192
ICL Pathway Customer Requirements Report Ref: PA/REP/OS1
Version: 1.0
Date: 12/07/2000
2.1.3 POCL SERVICE DEVELOPMENT PLAN
We discussed with BFPO the use of Horizon in their offices.
2.1.4 PIU REPORT
This has been studied and the associated Management Actions will be addressed this
month.
2.1.5 CARD SYSTEMS
A number of potential prospects for new card-based applications on the Horizon
platform have surfaced.
A first round of discussions was held with representatives from thé ICL Smartcard
group on opportunities in the Youthcard project. This is a smart card issued to 16-19
year-olds, tied to tracking attendance on college-coursés.and possibly linked to the
collection.of education benefit payments. It may also be linked to welfare and reward
schemes (e.g. discounts on travel, purchase of goods). Of particular intérest to Pathway
are:
° The asset value of the mothballed Card Management Service (CMS)
including the Post Office as issue route, and the associated exploitation of
the Help Desk.
° The opportunity for allowances payment via the Post Office counter.
Extracts from the SADD and CMS design documentation were provided to Mike:
Haynes, who is assisting Ed Parton/Tim Brophy on this potential bid.
The issue in taking this forward appears will be finding a lead ICL sponsor to establish
a business case within the constraints of the PPP procurement program.
Transys/Travel - There may be opportunities for the post office to sell train. and bus
tickets (Smart cards along the Transys lines), although the real potential may be with
local authorities supporting concessionary schemes, one of which is subsidised travel.
This is likely to require multi-function, combi cards.
2.2 CSR+
2.2.1 ACHIEVING SLAS
We have supported the CS programme to underpin SLA achievement. The main
problem is failing the 100% day-4 SLA file transfer delivery requirements. The
solution breaks down into:
. Improvements in detecting and reporting failures within the office, for
example disconnected nodes, and ISDN handling to facilitate earlier
action in fault.detection and resolution.
COMMERCIAL IN CONFIDENCE ~ Page 13 of 42
FUJ00058192
FUJ00058192
ICL Pathway Customer Requirements Report Ref: PA/REP/OS1
Version: 1.0
Date: _ 12/07/2000
° A method of last resort for harvesting transactions and delivering data,
perhaps using a laptop, for an office that has been isolated for too many
days.
2.2.2 AP CLIENT MIGRATION
Dave C output Client specifications for Girobank and Yorkshire Electricity, now
approved. Those for Northern Ireland Electricity and Oxfordshire SS were issued.
Next on the list are Welsh Water and SWALEC.
We expect to support POCL in their discussions with BT. POCL’s-relationship with
BT is very difficult, with BT currently unwilling to participate in Client‘migration.
A CCN to provide a Girobank disaster standby facility has'been issued.
2.2.3 AP FILE DELIVERY
It has become clear that our file delivery capability does not meet the Clients’
requirements. We provide for only seven days/week operatiori, while Clients want
variable numbers of days to avoid working on weekends and national and local Bank
Holidays.
POCL has raised a Change Request (CR) to support six days/week for Girobank but ‘+
with an understanding that we can only achieve this as an intérim solution by turning*»
off the APS harvester. POCL will raise a CR to describe the final scheduling
requirement to reflect all of the current Clients’ actual requirements and a view into
the future.
2.2.4 HAPS
The need to get Girobank AP migrated off HAPS by December is driven by uncertainty
of POCL’s HAPS capacity as we ramp up the Joad on. HAPS coming from-Horizon
outlets. We have asked POCL to state what its limits.are.
Dave C has also intervened to head off a very late CR to relax'validation of data being
merged in from the old APT systems. It should be possible to cleanse any poor APT
data within CS on a service basis during the demise of HAPS. There is no known
history of such bad data: POCL was just going for overkill.
2:2.5 QUANTUM
Siemens has confirmed its back end Quantum systems will-not be ready for CSR+ and
so this facility will have to be deferred, probably by using Reference Data to switch it
off and back on for a pilot and live use.
2.2.6 OBCS
A CR was issued, but is temporarily on hold, to provide more information for POCL
from OBCS transactions, as this service may enjoy an extended life.
taps
COMMERCIAL IN CONFIDENCE Page 14 of 42
FUJ00058192
FUJ00058192
ICL Pathway Customer Requirements Report Ref: PA/REP/OS1
Version: 1.0
Date: 12/07/2000
2.2.7 SADD
A further 200+ comments were received and afe in course of clearance. POCL want
to clear these by a. meeting, conscious that a version of the SADD has to be agreed by 4
August.
2.2.8 PINICLS ETC
The team cleared all PinICLs assigned to it in advance of the CSR+ build, including a
crop on Watercard.
There is still a number of Low category Acceptance Incidents to clear.
John P obtained final agreement to the new PDR form layout from POCL.
2.2.9 MOBILES & SATELLITES
These two difficult CCNs were progressed, the end'is now in sight‘on both.
2.3 ISO PROCESSES & PROPEL
We are preparing:a “galactic checklist” of the activities that- Pathway will-have to be
complete under the Customer Solution Life Cycle (CSLC) and will apply it to the Debit
Card opportunity that is expected to re-emerge from POCL shortly.
We have provided review of the PA/PRO/xxx document set in support of ISO9001
Programme Board and of the key management roles document RS/DES/047.
Most of the team has now been trained on DOORS, the mandated Propel
Requirements Managementisoftware tool, and licences forteam use have been-bought:
and the software installed thanks mainly to.Mike Chawner.
The current:activity is to set up DOORS for general project use.
Efforts are being made to use the new software to access early work done on the
Codified Agreement.
2.4 OTHER
RTR has been introduced and is going through its teething problems.
We supplied a facilitator for the SMT.
We reviewed changes to Schedules to bring in Message Broadcast Service.
We supported Development and CS in introducing changes to LFS/SAPADS
operational schedules.
Workflow: Dave H chaired the Wf[MC: Workflow standards meeting-and,formed part of
the panel at the joint conference after the meeting. This was a joint meeting with OMG
and representatives of the Black Forest Group.
3 CURRENT CRITICAL PROBLEMS
None.
COMMERCIAL IN CONFIDENCE Page 15 of 42
FUJ00058192
FUJ00058192
ICL Pathway Customer Requirements Report Ref: PA/REP/OS1
Version: 1.0
Date: 12/07/2000
4 ISSUES
We are sampling Popkin’s System Architect product, which.is also on the Propel tool
schedule, and for which a corporate licence agreement is in preparation (like DOORS).
We recommend that this is evaluated by for use in Pathway. It appears to cover both
Customer Requirements and Development functions. It reportedly includes
requirements capture and traceability, as well as process / organisation and data
modelling. It also supports-‘UML models and has a process definition export facility.
COMMERCIAL IN CONFIDENCE Page 16'of 42
FUJ00058192
FUJ00058192
1I0dayJ
ALS =
JoWI0jSND)
{
UIT]
FUJ00058192
FUJ00058192
ICL Pathway Customer Service Report Ref: PA/REP/OS4
Version: 1.0
Date: 12/07/2000
Customer Service Report
1 SUMMARY
1. Data Centre performance has been good. The upgrade of the Correspondence
Servers and implementation of the ‘wing’ Servers is almost complete.
2. Improvements in management processes have significantly reduced the amount
of offices appearing on the non-polled report.
3. Implementation of the Performance Management Service.is now underway, with
the performance software now included in the Counter build.
4. There are currently issues within the AP Client Migration plan with Girobank
functionality and resourcing for bespoke: developments. The APCM programme
needs to be replanned to incorporate the changes required to address these
issues and there is a high risk that not all activities will be completed by the énd
of March 2001.
5. The improved testing of bar code scanners.has now been cut in to Celestica and L
within 3 weeks, only fully tested scanners will be being installed in new Outlets.
CI_3.2 has been implemented.
Charges for Manual Exception Reports have been submitted to POCL and ‘
Pathway Commercial for March 2000. There are 5 specific case types which
need ratification by the Contract Administration Board before a precedent can 4
be set for future incidents of the same type. Charges for April and May are :
currently being recalculated following POCL's admission that they were using an
incorrect formula.
8. Closure criteria have now been agreed for the OSD Red Alert and OSD
continues to work to achieve service levels.
COMMERCIAL IN CONFIDENCE Page 17 of 42
FUJ00058192
FUJ00058192
ICL Pathway Customer Service Report Ref: PA/REP/O51
Dams, 12/07/2000
1.1. VITAL STATISTICS
Live Base as at 1“ July 2000: 8532 Post Offices, 18,841 Counters
Cumulative from 1“ December 1999
OBCS
Total number of payments to date 71,665,755
Total number of payments in June 23,241,726
Total value of payments to date £5,512,953,772.86
Total value of payments in June £1,754,437,377.50
EPOSS
Total number of receipts to date 125,461,105
Total number of payments’to date 44,767,419
Total number of zero value transactions to.date 9,434,267
Total number of receipts in June 21,920,305
Total number of in payments.June 7,473,131
Total number of zero value transactions in June 2,515,783 j
Total value.of receipts to date: £6,682,492,292.16
Total value‘of payments to date £4,040,794,936.08 a
Total-value of receipts in June £1,750,730,713:49 {
Total value of payments.in. June £685,168,807.86
APS
‘Total number of receipts to date 38,487,683
Total.number of receipts.in June 10,226,397
Total value of receipts to date £1,083,691,935.86
Total value of receipts in June £286,811,609.64
NOTE:
Data from May 1999 will be published once analysis of archived Data
Warehouse data is complete (end of August 2000 target date).
The above data is monthly. Weekly data is now available on the Customer
Service web site at the following location:
COMMERCIAL IN CONFIDENCE Page 18 of 42
FU,
ICL Pathway Customer Service Report Ref: PA/REP/OS1
Version: 1.0
Date: 12/07/2000
2.1
2.1.1
2.1.2
2.1.3
2.1.4
PROGRESS
OPERATIONS
AVAILABILITY MANAGEMENT
Servers and implementation of the ‘wing’ Servers is now almost coniplete with
no major problems.
Improvements in» management processes around the identification and
resolution. of non-polled offices have significantly reduced the amount of offices
appearing on the report. Developments are being identified which should give
earlier warning of Outlets that have lost communication with the Data Centres.
There is an issue with regard to 100% achievement of ‘day D’ data deliveries,
which needs to be resolved with POCL.
REFERENCE DATA
There are still concerns regarding the quality of Reference Data received from ,
POCL, in particular regarding the actual volume of errors and the amount of *
rework resulting from last minute changes. It is difficult to identify ownership
within POCL to take this forward. This is being addressed through the HSRF.
SLA MANAGEMENT
Issues have been identified in the UCT with regard to the LFS operational
schedule being different to that expected by the customer. An internal review is
being held on Tuesday 11th July co investigate discrepancies and identify
remedial actions.
AP CLIENT MIGRATION
. Gtrobank is causing further concern. The current view is that the functionality
required for delivering files $-days/week instead of daily will not be in place
before Q1 2001. To date only 4 Clients, that can be migrated without the 5-day
delivery functionality developed for Girobank, haye been confirmed, leaving a
short window in which to migrate the remaining Clients.
The bespoke interface for Northern Ireland Electricity is stretching APS Host
resources and the current view is that development will not be completed before
January 2001. More bespoke interfaces like BT will stretch resources even
further.
The AP Client Migiation programme needs to be replanned to incorporate these
changes and there is a high risk that not all activities will be completed by the
end of Marck 2001.
FUJ00058192
1JO0058192
. Data Centre performance has been good. The upgrade of the Correspondence:
COMMERCIAL IN CONFIDENCE . : Page’ 19 of 42
FUJ00058192
FUJ00058192
ICL. Pathway Customer Service Report Ref: PA/REP/OS1
Version: 1.0
Date: 12/07/2000
2.1.5
PERFORMANCE MANAGEMENT
implementation of the Performance Management Service .is now underway, with the
performance software now included in the Counter build. Some security issues,
identified in the.current solution, are being investigated and resolved.
2.2
2.2.1
1.
we
2.2.2
SUPPORT SERVICES
GENERAL
The improved testing of bar code scanners has now been cut in to Celestica and
within 3 weeks; only fully tested scanners will be béing installed in new Outlets.
‘The Exel and OSD spares stock-will be updated on similar timescales.
. The new management appointments in the SMC have now had the opportunity
to get up to speed with SMC's ‘issues, and the first CS feview with the new
management team have been held.
. Following a Health and Safety evaluation of the 6th Floor a number of issues
have been identified. A report will be produced and a rectification plan
established.
MAJOR RELEASE IMPLEMENTATION
CI_3.2 has been implemented.
$. CI_4 planning is continuing
2.2.3
us
a) On the Data Centre side: it is now confirmed that the Correspondence
Servers and Agent Servers will be upgraded via Tivoli. A final upgrade
rehearsal is being planned for the week beginning 24th July on the B&TC
release rig.
b) Counter implementation planning continues. As agreed with PON, following
completion of Live Pilot Counter migration will commence at a high rate
(500 per night) for an initial two-week period. This will be followed by a
two-week break for evaluation. purposes before resumption at a rate agreed
during the evaluation,
RELEASE MANAGEMENT
. 79 Release Notes have been raised over the reporting period and 44 have been
authorised for live. 18 Release Notes have been withdrawn over the’same period
and 14 rejected.
CP2439 (RM Tivoli Workstation) has been delivered & installed.
- Sheila Bamber, the new Release Manager, joined on 3rd July. Rebecca Burger
and Amanda Knight are expected to join as Release Controllers on 10th and
17th July respectively.
COMMERCIAL IN CONFIDENCE Page 20 of 42
FUJ00058192
FUJ00058192
ICL Pathway Customer Service Report Ref: PA/REP/OS1
Version: 1.0
Date: 12/07/2000
2.2.4 ISSUES
On-going support for TeamWARE Crypto is still not tied down. An option is
being pursued with e-Applications Group.
2.2.5 METRICS
For the month of June 2000 (up to 27").
Release Notes cleared by OTT 42
Total Calls raised through. SSC 1531
Total Calls closed through SSC * 1662
Of the total calls closed, 1067 were in categories (e.g. Advice and Guidance,
Published Known Error) which should have been closed by SMC.
2.3. INFRASTRUCTURE SERVICES
2.3.1 MANAGEMENT SUPPORT UNIT .
23.1.1 BUSINESS INCIDENT MANAGEMENT
1. MSU currently have over 200 uncleared BIMS reports waiting for final closure
action - the incidents themselves having been resolved. However the
administration function has not yet been completed. At the non-polled Outlet
meeting scheduled for 10th July with POCL, MSU. will be proposing (an
alternative for BIMS as this method of updating incidents is nor entirely
effective or suitable for non-polled problems.
2. MSU is fully involved in the UCT testing of both the EPOSS and APS
reconciliation systems and reports. Incidents have been few and manageable.
Me
we
3. Charges for Manual Exception Reports have been submitted to POCL and
Pathway Commercial for March 2000 where we are in dispute. There are 5
specific case types which need ratification by the: Contract-Admin Board before a
precedent can be set for future incidents of the same type. Charges for April and
May are currently being recalculated following POCL's admission that they were
in fact using an incorrect formula. It is expected that both parties will be in a
Position to negotiate these at the Incident Management review on 17th July.
2.3.1.2 MIS
1 Remedies have now been calculated and submitted for Q2 2000 for Data File
delivery, OBCS Stops and System Service. The total being £194,353.23 of which
£154,057.74 is recoverable from OSD. In line with the contract Network
remedies have been recalculated to just include LAN and not WAN. Q1
Network remedies will be recalculated in line with this new understanding by
7th July and a revised invoice submitted.
‘COMMERCIAL IN CONFIDENCE Page 24 of 42
FUJ00058192
FUJ00058192
ICL Pathway Customer Service Report Ref: PA/REP/OS1
. Version: 1.0
Date: 12/07/2000
2. Pathway met with POCL on Sth July and agreed the way forward in agreeing
remedy payments on a weekly / monthly basis, as the checking process is too
time consuming if this is left to a quarterly submission.
Ww
After checking the conformance figures for the HSH SLAs within SLAM against
the manually calculated data supplied by OSD, and verified by MSU, the figures
are vastly different. Confidence in the figures supplied by SLAM cannot
therefore be stated and an investigation involving the OSD supply of data and
the actual Data Warehouse and SLAM processing will be undertaken, to
ascertain why the differences are so great.
2.3.2 BUSINESS EFFECTIVENESS
All existing process and policy documentation is undergoing review and update
in preparation for the planned BSI audit at the end of September. New process
definitions are being added to fill gaps in the CS process set. The Service
Management Frameworks (service policy) is being re-written. The Terms of
Reference for the CS Director’s meeting are agreed. A new inter-working
initiative with Martyn Bennett’s team is being progressed.
2.3.3 STRATEGIC SERVICES UNIT
2.3.3.1 BUSINESS AS USUAL
1. OSD Red Alert
OSD continues to work to achieve service levels. Closure criteria have now been
agreed.
2. Help Desk Forum
a) June’s HSH/NBSC review took place on the 27th. Operators from both
Helpdesks have been working together over the past month to identify how they
can improve the Helpdesk Service experience for the postmaster. To date the
Helpdesk teams have identified 6 improvement opportunities.
b) Both Helpdesks are to meet jointly with ICL Pathway and PON CI_4
management teams as a further opportunity to understand more about the Cl_4
release and to determine what joint issues the desks may have to face.
3. Interactive Voice Response (IVR)
In a meeting between ICL Pathway and POCL last Friday it was agreed that IVR
would continue to be used at the HSH with flexibility to alter its use. It will also
be the vehicle to introduce a single point of contact for postmasters and will be
run from the NBSC. The cut-in for this is unlikely to be before the énd of CI_4
migration. IVR will be used for routing CI_4 type calls. However, before we can
move on the above the telephone answering SLAs for calls answered in 20 and
40 seconds need to be reviewed and agreed. A workshop will take place this
Thursday to agree a way forward.
COMMERCIAL.IN CONFIDENCE _ Page’22 of 42
FUJ00058192
FUJ00058192
ICL Pathway Customer Service Report Ref PA/REP/OS1
Version: 1.0
Date: 12/07/2000
2.3.3.2 COMPLAINTS
1. The table below’ shows the customer complaints received in June. After
investigation the team has identified that 50% of complaints raised are not
justified but nevertheless they are responded to and investigated.
Wrong I Attitude Call Software I Installation
Advice Backs
Raised to CS 37 8 4 13 6
HSH 22 3 1 6 0
2. Many of the complaints are about jointly agreed Pathway and POCL processes
where the PM does not like or understand the process. For example, the
problem of restoration of power generates some complainc and we have now
introduced a standard response.
2.3.3.3 HIGH VISIBILITY SITES
1. Guisley
Isolation transformers, made to filter the spikes measured on site at Guiseley,
failed to correct the problem. during testing. They did remove the spikes a
identified, which made visible an underlying earthing problem. A sample
‘medical’ filter is being made and will be tested at Hearsley to ensure that this
filter corrects the underlying fault.
2. Dyke Road
The Post Mistress stated in June that there were two faults outstanding
following the work already carried out on site: - Counters slow in the morning
and P&A transactions being incorrectly récorded. The Counters are no longer
appearing slow and the incorrect P&A transactions were always for the same
customer and were carried out by the PostMaster. When his wife, under
observation, made the transaction the problem did not recur. It has been agreed
with POCL that this problem should now be put on to-monitor.
2.3:3.4 ocms
The first réleasé of OCMS will now be delivered at the end of November and
the final release, which introduces the capability to update Tivoli configuration
changes automatically, will be.delivered at the end of March 2001. Before this
the Tivoli configuration will have to bé completed in a semi-automated manner
but this is:not critical to the success of the change biisiness.
23.3.5 OPERATIONAL BUSINESS CHANGE
The following tables show actuals for June and-firm orders for changes up to the
end of August:
COMMERCIAL.IN CONFIDENCE : Page 23 of 42
FUJ00058192
FUJ00058192
ICL Pathway Customer Service Report Ref: PA/REP/OS1
Version: 1.0
Date: 12/07/2000
1. Opening/Relocation/Refurbishment (Outlets)
Month Total Actual Deliveries I Actual Deliveries Additional
Deliveries Allowed Within to Contract
Contract
June 41 10.31 30,69
Month Total Orders I Forecast Deliveries Forecast Deliveries
Allowed Within Additional to Contract
Contract
July 32 12.25 19.75
August 22 14.05 7.95
2. Closures (Outlets)
Month Total Actual Deliveries I Actual Deliveries Additional
Deliveries Allowed Within to Contract
Contract
June 4 6.44 0
Month Total Orders I Forecast Deliveries Forecast Deliveries
Allowed Within Additional to Contract
Contract
July 7 7.66 0
Aug 1 8.78 0
2.3.4 FIELD SERVICE MANAGERS
1. An initial meeting took place with five Implementation staff to discuss the
possibilities of them coming across to Customer Service as Field Service
Managers. Further one to oné meetings took place where all five were offered
positions in this new role, The current expected date for the moves is late
August.
2. A further four CVs have been received from implementation staff who are
interested in the role.
COMMERCIAL IN CONFIDENCE Page 24 of 42
FUJ00058192
FUJ00058192
FUJ00058192
FUJ00058192
ICL Pathway Quality & Risk Report Ref: PA/REP/OS1
Version: 1.0
Date: 12/07/2000
2.1
Quality & Risk Report
MONTHLY SUMMARY
Security. Virtually all effort is now focused on implementation of KMS.
Technical User Guide Testing has been completed, with minor issues.
Implications for resourcing during migration / roll out are now being better
understood and temporary staff being obtained to support. The demand for
keys for testing increases.
Risk Management. Business case risks — new business risks have increased —
related to the volume of business. Implementation risk have increased ~
associated with the tail. Development-risks remain associated with late
delivery of CSR+ and migration. Operational risks have reduced with
growing experience of SLA impact. Progress continues on Disaster Recovery
procedures and implementation.
Quality. ISO9001. Progress is being made with process update. Most
Directorates will be complete by end July. The Development programme is
being focused on maintenance / enhancement. A date for formal assessment
has not yet been agreed. The development of the Intranet site is making
good progress.
Audit. Audits have been conducted in HR (a few minor actions) and
Migration (formal presentation July 12"). Variable performance in CAP
actions has been observed and escalated. The major issue is still the audit
solution — problems continue to plague it and large chunks of data cannot be
extracted and are having to be reconstructed.
PROGRESS
RISK MANAGEMENT
Risk Analysis & Management Process (RAMP) document has been drafted
for review.
The 3 levels of risk register which Pathway operates — working level,
Consolidated and Business Plan risk registers - are now reasonably well
aligned, and the processes for keep them up-to-date and in line are being
observed.
Conducted preliminary risk impact analysis of the course booking process
run by KnowledgePool for Horizon as potential significant cost overruns
became a concern resulting from low course occupancy and the conseqitence
of having to-schedule many hundreds of additional training events.
The Business Case Risk Register. The weighted total now stands at £22.5mn,
an increase of £2mn from May. The major risks are now associated with:
COMMERCIAL IN CONFIDENCE Page 25 of 42
FUJ00058192
FUJ00058192
ICL Pathway Quality & Risk Report Ref: PA/REP/OS1
Version: 1.0
Date: 12/07/2000
¢ New Business (increased by £2mn to £8.7) — recognition of the difficulty
in realising the total volume-in the business case.
© Staff (little change at £7mn.
¢ Implementation risks have increased slightly to £1.2mn as the potential
impact of the tail begins to be understood. The risk associated with
training underoccupancy has reduced as mitigation actions are
progressed.
¢ Development risks have-increased slightly, the impact of a tight
programme and potential for slippage in CSR+.
© Operational risks have decreased significantly (by £0.7mn to-£4.8mn),
mainly as a result of the reduction in SLA related risk with operating
experience.
e Disaster Recovery Planning:
e Completed the first draft of a plan to raise awareness throughout
Pathway about business continuity and disaster recovery
¢ Revised and presented the final draft of the Incident and Crisis
Management flowcharts, and completed the supporting commentary for.
the’ revised Pathway Disaster Recovery (DR) plans and deployed
flowcharts. Completed the first draft of a document detailing DR tasks
and procedures.
¢ Cost Down register:was updated to reflect changes in the. Business Case-since
March. This now with individual Directors to review and develop active
programmes.
2.2 SYSTEM SECURITY
2.2.1 GENERAL
¢ CP2292 et al (Anti-Virus software on the Live-Estate), This CP is being
progressed as a matter of urgency. Difficulties continue to be experienced in
obtaining assurances that the delivery of-upgraded AV versions are capable of
being automated using Tivoli.
e Widespread virus outbreaks affected users across the Group. These were dealt
with in conjunction with IT support and Group Security.
e DPA. Further meetings have been held with PONU to raise awareness of the
implications of the new Act, refine the contractual.requirements and establish
a procedure for responding to Subject Access Requests.
¢ Security documentation continues to be reviewed as part of the ISO 9001
plan. Most documents have been re-basclined ‘or’are in the process of formal
review. Work is required on establishing a security présence and process on
the Pathway Intranet.
COMMERCIAL IN CONFIDENCE Page 26 of 42
FUJ00058192
FUJ00058192
ICL Pathway Quality & Risk Report Ref: PA/REP/OS1
Version: 1.0
Date: 12/07/2000
2.2.2 CSR+
2.3
¢ The draft continuity plan for the security administration workstations is
progressing.
Cryptographic Key material continues to be provided for test purposes.
Extensive Technical User Guide Testing (TUGT) of KMS has been
completed successfully. The exercise validated the KMS User Guide-and
helped inform the likely resource implications for rollout/migration. PinICLs
raised are being addressed by Development for software issues and by the
Technical Author for User Guide amendments.
The proposed Service Operational Readiness Test (SORT) has been re-
evaluated in view of the difficulty in reproducing live conditions in the test
environment. It is now proposed to undertake a discrete documentary
process review prior to testing readiness during Live Pilot.
KMS Implementation. Timescales are being refined and increased granularity
included in the project plan. The fortnightly service introduction workshops
continue to run in parallel with the CI4 forum. KMS supporting
documentation, including processes for key handling and exception events
during migration is nearing completion for formal review. Additional *.
hardware and secure storage for cryptographic key material has been /
ordered and delivery co-ordinated with accommodation / facilities managers.
A risk assessment of the RODB was undertaken to inform decisions about
proposals for the future of SME implementation of which was well beyond
agreed timescales. The recommendation is to stop the SME development,
subject to the incorporation.of some improvements to access controls and
additional security measures on RODB.
QUALITY
e [SO9001 Programme.
e Quality Management processes are under review and being updated,
including the Process Management Process (PA/PRO/038) and Quality
Management System (PA/POL/002).
© Process Development / update:
e HR is complete.
e Risk / Security process updates are well advanced.
e Input from C&F is proving difficult to elicit.
¢ Implementation will be complete.by the end of July.
* CS has some minor amendments from CAPs that will be complete by
the end of July.
e Development plans are now in the ISO plan. A decision has been made
to focus on a maintenance / enhancement process, as future design,
development will be encompassed by CSLC.
e Development of QMS Intranet site has made good progress.
Equipment has been obtained / set up. The content of existing site has
been reviewed and ownership established. Reviews of future,
COMMERCIAL IN CONFIDENCE Page 27 of 42
FUJ00058192
FUJ00058192
ICL Pathway Quality & Risk Report Ref: PA/REP/OS1
Version: 1.0
Date: 12/07/2000
extended, content in hand with other Directorates. Development of
front end overview in hand with reference to ICL processes, so as to
facilitate migration in due course.
© Process Review Forums are being established, to review Directorate
progress.in more detail, tackle cross boundary issues-and control
content of the Intranet. These will be maintained after accréditation.
e The date for the first formal assessment has still to be agreed; the
critical factor is Development progress.
© Propel implementation.
© Stage 1 gateway criteria reviews have now been held for Network Banking,
ERA and EFTPOS. Very useful sessions, raising issues and actions which
are being progressed.
« Meetings-have been held with the Propel Programme Officé to begin to get
a better understanding of the timetable. The objective is to plan
implementation to merge with the Pathway programme.
e A commitment to support the introduction of Macroscope for Network
Banking (post Proof of Concept) has been obtained. Staff training will take
place when the project is initiated.
2.4 AUDIT
¢ Internal audits:
e CSR+ Migration Audit. This:audit-is effectively “end to end” — validating ‘
how: migration requirements are being met. The report is due’ for
presentation on 12 July.
e Resource Management/Personnel Audit completed on 9 June; minor
corrctive actions have been agreedand and are under way.
e CAP Monitoring has indicated variable results; these have been escalated.
¢ Joint Audit preparation. The audit is now planned for December: An audit
trail is in place as evidence that we have captured and resolved contractual
POCL requirements. The manual system has been declared auditable and will
run until the automated system is delivered; and thereafter possibly in
parallel. Invoicing will be a key element of the Commercial & Financial
audit.
¢ Audit Solution Problem List. The main problem still concerns rebuilding of
missing file indices. We are currently exposed by data being unavailable at
both Wigan and Bootle for the period 12-21 April 2000. OSD’s initial plan
for recovering TMS data will be out for review on 12 July.
3 ISSUES
e There are certain areas of Pathway’s business.that need to be. more actively
involved in the risk analysis and management process e.g. TDA; the
Programme Status Review-meeting doés not give risk review sufficient time.
COMMERCIAL IN CONFIDENCE Page 28 of 42
FUJ00058192
FUJ00058192
ICL Pathway Quality & Risk Report Ref: PA/REP/O51
Version; 1.0
Date: 12/07/2000
The impact of OTT requirements for testing automated keys has been
assessed and a solution devised. This puts strain on the availability of the
limited number of Certification Authority Workstations. There are issues
surrounding security of the OTT test rigs whilst testing sensitive APS code.
This will need to be resolved as a matter of urgency.
Outputs from TUGT have shown an urgent need to re-consider QRM
resource requirements for the operation of KMS during rollout/migration.
Difficulties are anticipated because of strict security requirements for
segregation of roles and for cover during absence. This will place increased
demands on the ability to maintain the general security function.
Limitation of BSi Assessment Scope to exclude basic development of CSR+:
how to manage this situation with the Assessors.
Lack of C&F input to process development.
Bou
COMMERCIAL IN CONFIDENCE Page 29 of 42
FUJ00058192
FUJ00058192
yIoday
yuswdopaasq =
—
—
—»
In
uf
ssouisng =
FUJ00058192
FUJ00058192
ICL Pathway Business Development Report Ref: PA/REP/O51
Version: 1.0
Date: 12/07/2000
Business Development Report
1. SUMMARY
e There is a fresh impetus to the New Development work with some key
activities now being progressed. CCN’s for new business were signed last
month totalling £1.13m. Progress is as follows:
e Network Banking: The Proof of Concept work continues with clear
and agreed terms of reference and an agreed sub-contract with Escher
who are undertaking the development work. This package-of work is
scheduled to finish.11" August. The ITT for the Network Banking
Engine has been distributed to the six shortlisted suppliers, including
ICL. Submission date is 23" July with award of contract in October.
Discussions are now planned to take place to identify the next tranche
of work focussing firstly on identifying the end-to-end activities that
need to take place and then carving out a suitable ICL Pathway piece.
Post Office will visit Escher in Boston 10" through’ 13" July. This is a
marketing pitch that is aimed at convincing Post Office of the strategic
direction of Riposte (web enabled) and hence the underlying Pathway
systems. It may also help to draw the different factions in Post Office
together. The Network Banking unit is focussed on new technology
while the Post Office Network people are perceived by them as
luddites.
e ERA: We have now signed up to a further 400 man days of
consultancy work on ERA. This work will take place in Chesterfield up
to end October. The design phase of: ERA is. scheduled to last till
March ’01 to enable the team to go to the P.O. investment strategy
committee for further funds in April.
e Service Development Plan: The latest updated prioritised version is
due out in July. This should provide.clearer direction on the specific
developments that are in the front of mind for Post Office Network.
¢ Communications: Continued good progress in the marcomms area. We are
working with Post Office to identify key press stories and appropriate dates
for release. They continue to be very wary but a thought through approach
that offers no risk to them seems to work. We now havea policy of directly
contacting a number of journalists to keep them updated. Also-a policy of
correcting any factual errors that are printed in the media.
e Relationships: Another good workshop took place on 12" July with Dave
Miller and team. This-was another opportunity to share issues, concerns but
also to look forward at the business opportunities for the Horizon platform.
We must continue this type of event to continue building trust.
COMMERCIAL IN CONFIDENCE Page 30 of a2
FUJ00058192
FUJ00058192
ICL Pathway Business Development Report Ref: PA/REP/OS1
Version: 1.0
Date: 12/07/2000
2. PROGRESS
BUSINESS DEVELOPMENT:
« EFTPOS: Still awaiting a green light from Post Office. There are signs that this
is imminent. Peter Moroney, the external consultant is still on.the case.
¢ EURO: Helen Pedley has taken over responsibility for this area within PON and
is currently getting up to speed. Discussions will take place with Pathway within
two months.
« SDP: We held a very successful workshop on possible EPOSS enhancements.
This highlighted opportunities to make changes through reference data, of
which PON were unaware. We also identified a number of other key areas for
quick wins.
MARKETING COMMUNICATIONS:
Internal Communications in ICL Pathway
© Communicated Post Offices annual results internally via email and notice
boards.
e The SMT took place on 7" June 2000 at the Madjeski Stadium, Reading, with
over 70 people attending. Feedback has been extremely favourable. A full
evaluation report. was produced and sent to everyone who attended the event.
Work is now beginning on the next one, which looks. due to take place around
late November.
e Brief EnCounters has been completed and ready for distribution. It has been
redesigned and will be distributed via an email with a hyperlink to the ICL
Pathway Community on CafeVIK. Delayed due to problems with CafeVIK.
© Weekly emails continue to be sent with automation figures on.
* An ‘Induction Pack’, has been produced which will be looked after by all
secretaries, as a slot-in document for new joiners, containing information such as
personnel issues, health and saféty, pay, site map, organisation charts, bri¢f
description on each team within ICL Pathway. At present the pack is with
Document Control, waiting for PVCS.
« ‘ICL Pathway 2000 Corporate Presentation nearing completion.
ICL Communications
e Chrissie & Stacey will now have a reporting line into Shared Services, ICL
Marketing via Marjorie Sayers / Jane Berry. This will provide an easier route
into ICL, for better communication of ICL Pathway (and ICL).
e ICL's Future Focus has now added Horizon, and has a training counter for
demonstration purposes only. This is for the REA24 Future Focus, with the
same going to the additional Future Focus site at the DTI late summer.
COMMERCIAL IN CONFIDENCE Page 31 of 42
FUJ00058192
FUJ00058192
ICL Pathway Business Development Report Ref: PA/REP/OS1
Version:, 1.0
Date: _-12/07/2000
e Rolling demo has proved a huge success within ICL. Because of its success, it is
being updated and redesigned by the ‘Design Studio! in BRAO1, such that we can
distribute it to a wider field.
External Communication
¢ Computing and Computer. Weékly have both signed up to case studies on ICL
Pathway/Horizon. Computing article is due out on 13" July. Computer Weekly
still requires chasing.
© Relationship building-with National and !T media continues and is improving.
e Attached is a summary on press coverage received during June on ICL Pathway,
Horizon & Post Office automation
Post Office Network comms.
© Met with.Post Office PR team for planning/review meeting. Post Office wishing
to take a step back on Horizon activities until Post Office Annual Results and
PIU Report has been made public. These dates have now passed so things should
get easier. . ,
e The proposal for a Horizon “user satisfaction" survey has not been approved by
the Post Office. 2
Government Communications aig
e Working with ICL Corporate Affairs on an ICL Pathway update required for an
MP’s newsletter (Information technology Bulletin). Wording will need to be
approved via Post Office, although they have verbally approved.
¢ The PIU report has been published, and communicated to ICL Pathway
Management team and ICL Senior Members. Hard copies of the report are
available.
¢ [continue to press for early publication of the NAO report. It has been bogged
down within the higher echelons of the NAO. There is a suggestion on the table
via the DTI via George Hall that it be ‘placed’ in Parliament before recess (28th
July).
International:
+ Interest suddenly sprung up in the past few weeks from Hong Kong, Spain,
Kenya & Botswana. This rekindles the issue with Escher of a licensing
agreement for'such countries. I am in discussion with Escher to resolve. Without
a proper licensing agreement, there is little point-in us getting involved.
3 CRITICAL PROBLEMS
None
‘COMMERCIAL IN CONFIDENCE ~ Page 32 of 42
FUJ00058192
FUJ00058192
ICL Pathway Business Development Report Ref: PA/REP/OS1
Version: 1.0
Date: 12/07/2000
PUBLICATION II ae aptINE Date
In-store Marketing II Post Natal Succession (feature on the rebirth of the June 2000
Post Office as a retailer)
MIS UK Magazine II New horizons for Post Office Counters (major feature II June 2000
on the Horizon project)
Misweb.com Post Office drops £264m debt on government 19/06/00
silicon.com doorstep
The Independent Post Office to cut 4,000 jobs as it warns on profits 20/06/00
(news)
The Post Office’s future is in the private sector
(leader)
Computer Weekly PO pays price over Pathway 22/06/00
Computing Aborted project costs Post Office dearly 22/06/00
COMMERCIAL IN CONFIDENCE Page 33 of 42
FUJ00058192
FUJ00058192
yiody =
FUJ00058192
FUJ00058192
ICL Pathway Implementation Report Ref: PA/REP/O51
Version: 1.0
Date:_12/07/2000
Implementation Report
1 MONTHLY SUMMARY
A total of 8553 outlets have now been migrated to Horizon, as of close of business at
30" June 2000, representing 47% of:the network. By close of business on Thursday
13" July 50% of the Post Office network will be using the Horizon platform.
Achievements in the installation programme continue to exceed the planned levels on a
weekly and cumulative basis.
The programme remains on track to to achieve the 1* November 2000 rollout payment
milestone of 10680 live outlets. It is currently forecast that this will be achieved in
mid-August.
Training scheduling, specifically invitation timeliness has improved considerably. At a
working level this is no longer believed to be a major issue. However, a significant
deficit in the number of courses required compared to the contracted quantity is being
forecast and is likely to create a dispute with PONU over responsibility for the issue
and the costs involved (see Critical Concerns).
Activity continues co align all staff with future opportunities in ICL in. preparation for
the closedown of the Implementation team at the end of rollout next spring. This
includes the potential transfer of staff into E-Applications and into vacant roles in
Pathway Customer Services. This work also includes the creation. of a rollout services
group to provide a shared rollout service to this and.other rollout programmes in ICL.
2 PROGRESS
The infrastructure tail plan continues to make good progress and is on track to be
completed by the end of September. The deadline for accepting non-compliant outlets
was-passed on 3oth June. From this. point outlets can only be accepted if they are
already compliant otherwise they will need to be managed through Operational
Business change. On an individual outlet basis Pathway will consider accepting outlets,
provided dates can be agreed for completion of infrastructure activity which meets the
requirements of the installation programme.
Review of forma! documentation for the survey and preparation activity for satellites is
at an advanced stage and-has included PONU review. These activities remain on target
to achieve the planned dates for satellite and mobile installations. This assumes the
CCNs for satellites and mobiles are approved expediently.
Preparations for CSR+ the introduction of CSR+ and the live pilot remain on track.
Up to 20 new installations will be included in the live pilot.
COMMERCIAL IN CONFIDENCE Page 34 of 42
FUJ00058192
FUJ00058192
ICL Pathway Impiementation Report Ref: PA/REP/OS1
Version: 1.0
Date: 12/07/2000
Following the introduction of the reduced cut of outlets into the 16-week installation
process (from 352 to 333), 2 weeks of successful installations have taken place with no
impact to the weekly rollout achievement.
ACTIVITY. CHANGE CUMULATIVE
Number of Open Post Office Outlets -79 18,154
INFRASTRUCTURE PROGRAMME
Sites Entered Into the Programme 0 18,050
Sites Remaining to be Surveyed - 674
Sites Remaining to be Prepared - 1,491
INSTALLATION PROGRAMME
Sites Migrated and Live 950 8,553
Percentage of Open Sites Live - 47%
Counters Live 2,185 19,267
3 CURRENT CRITICAL PROBLEMS
Examination of course usage, relative to the contracted number of training course, and
the introduction of a detailed usage forecasting model has identified a large potential
shortfall of courses. This would require PONU to purchase approximately 2,000
additional training courses. The driver for this is course occupancy. Levels of course
occupancy reduced in the last two months.consecutively, exacerbating the problem.
The deterioration in occupancy levels is considered to be caused by an increase.in the
number of postmasters refusing training dates because of holidays. Postmasters are
made aware of installation dates and the training window, relative to the install date,
up to 14 weeks prior to installation, but the dropout occurs several weeks after this.
This indicates that acceptance of training dates and lack of enforcement by PONU is
having a considerable impact on attendance. This has, and will continue to add to, the
shortfall in training courses currently being predicted. All parties will need to increase
their efforts to improve this situation.
Not surprisingly PONU are concerned about this and are likely to claim the issues
around training scheduling caused this situation. Although training scheduling has
contributed to the problem, PONU have a large degree of responsibility for thé status
also. Pathway and PONU are currently working together to determine actions to
resolve the issue. Once such action, allowing 1 additional person to be scheduled onto
a training course at the point of re-scheduling, will be introduced from 1" August and is
forecast to reduce the impact by 25%.
COMMERCIAL IN CONFIDENCE Page 35 of 42
FUJ00058192
FUJ00058192
ICL Pathway Implementation Report Ref: PA/REP/OS1
Version: 1.0
Date: 12/07/2000
4 ISSUES
During the last reporting period an increase in the number of modification snagging
issues was observed. This occurred, as a result of the supplier under-estimating the
complexity of the work required. This also resulted in the supplier being unable to
complete the work by the planned.date of 30" June. By agreement with PONU, the
work has been reviewed and it was determined 24 sites reqiired snagging items to be
addressed for which all appointments with outlets have been made and work is
underway.
ISDN line failures have been noticeably less this reporting period. This area of work
will continue to be monitored until the end of the programme to ensure a consistent
level of acceptable performance is maintained.
Telephone sampling by PONU has continued with the aim of monitoring
improvements in training invitation timeliness. Actions taken last month by Pathway
have enabled a clearer view of the issues to be determined, action to be taken and
improvement to be putin place. An RODB audit determined two key issues:
e Inconsistent implementation of the scheduling process for the Preview event
introduced in January and the consequential change in process timing for the UAE fa
event. Consequently, outlets would have been scheduled late until the point where
improvement would be seen in calls made week commencing 19" June. This ~
improvement was observed in the actual results reported.
¢ Occasional failures in data format transmission between Pathway and their traini 8 if
supplier. This resulted in incorrect or missing scheduling data for a-small } 2
proportion of outlets such that UAE events where impacted in terms of invitation
timeliness. Data format corrections are in place such that from the end of July no
further occurrences should be observed. Until then a small percentage of outlets
will be impacted with late UAE invitations (worse case 10-15%).
The following additional issues were also been identified after examining the reported
failures from PONU:
¢ Sampling calls being made too.early by PONU staff
¢ Discrepancies between when invitations were sent and postmasters response, which
remains unexplained
e Evidence of invitations being received when postmasters claim they have not been
(questionnaires returned to KPL).
e Late notification by PONU to KPL of outlets to be invited to Preview events
The results and supporting evidence of this analysis has been shared with PONU for
each of the 4 weeks'where it was undertaken such that corrective action can be taken.
The analysis will continue until such time as a consistent acceptable level of
performance has been:achieved. It is considered that the issue of training invitation
COMMERCIAL IN CONFIDENCE Page 36 of 42
FUJ00058192
FUJ00058192
ICL Pathway Implementation Report Ref: PA/REP/OS1
Version: 1.0
Date: 12/07/2000
timeliness has improved markedly and is above or close to the level of performance
required.
A CCN for the extension of the Counter Manager training course has.been submitted
for PONU approval. There will be an unacceptable impact to the training quality after
the introduction of CSR+ if the extension is not taken up. Feedback from postmasters
continues to support this view.
In the week commencing 26" June there was a major issue.in the data centre which
resulted in considerable ‘delays to installations while it was resolved. A total of 26
outlets were lost although they were re-scheduled within the following 2 weeks. The
cause of the issue was human error and.actions have been taken to prevent a
recurrence.
5 COSTS
Implementation forecast for the period remains within budget.
Headcount forecast costs have reduced following efforts to begin the transfer of staff to
alternative positions at the end of rollout. This is in line with the Implementation cost
improvement programme.
A CCN to the value of £173, 000 has been submitted to PONU for the extension of the
counter managers training course.
COMMERCIAL IN CONFIDENCE . Page 37 of 42
————
—————
Jl
f
I
—
_——
_
}
FUJ00058192
FUJ00058192
Organisation &
Personnel
Report
ICL Pathway
Organisation & Personnel Report
Ref:
Version:
Date:
FUJ00058192
FUJ00058192
PA/REP/OS 1
1.0
12/07/2000
1
Organisation & Personnel Report
MONTHLY SUMMARY
The department ensured that.the salary review was implemented and communicated to
employees. Preparatory work associated with the 2000/01 EIP and PVP bonus schemes
also took place.
Recruitment continued to receive a great‘deal of attention, with some success in filling
positions demanding rare skills which have been outstanding for some time.
2
PROGRESS
Appointments in June:
External Recruits
Transfers In
E-Apps
LINKwise
Freelance
Fixed Term Contracts
Adecco Temps
TOTAL:
Known Joiners (July 00)
External Recruits
Transfers In
e-Apps
LINKwise
Freelance
Fixed Term Contracts
Adecco Temps
TOTAL:
June Leavers:
Permanent Staff
Freelance
Transfers Out
Linkwise assignee
e-Apps
Fixed term Contracts
Adecco Temps
TOTAL:
Bue ro pon
wowou
°
NOOWSONN
° 97% of completed appraisals have now’been received and logged on the
personnel database.
COMMERCIAL IN CONFIDENCE
Page 38 of 42
FUJ00058192
FUJ00058192
ICL Pathway Organisation & Personnel Report Ref: PA/REP/OS1
Version: 1.0
Date: _ 12/07/2000
Following the issue: of the details of the EIP and Professional Variable pay
bonus schemes a significant amount of preparatory work took place prior to
communication of details to employees. All eligible-employees were
reviewed with managers to ensure they were still in the appropriate scheme
and changes made where necessary. Pathway financial targets were agreed at
both on-target” and stretch levels” Letters will be issued to all employees
including shared service personnel aligned to Pathway in early July, in line
with the overall company timetable. Managers are working with their people
to agree specific personal objectives where this is required.
In line with the agreed transition plan for members of the Roll Out Team a
number of actions took place in June. Relevant personnel information was
supplied to e-Applications management in order that they can decide who
has the appropriate skills to transfer into e-Applications. Detailed CV’s were
supplied for those people who will be the first to finish their roles in the
Pathway Roll-Out team. At a meéting in early July final decisions will be
taken on the appropriate destination for each member of the team.
Following these decisions a communications process with be instituted to
inform all members of the team,
To provide clarity a separate cost centre has been established for those
people who are already working on other Roll-Out projects while currently
remaining in the Pathway Roll-Out team. Discussions are ongoing to
determine the correct position in the organisation of. these people (and of
others as they are identified). It is hoped to also resolve this.issue by early
July.
15 people joined ICL Pathway:in June. The number of live vacant
requirements has reduced from 33 at the end of May to 27 at the end of
June. Some key positions have been resourced this month, namely the TDA
Manager and the Software Configuration Manager.
It was agreed that it was necessary to recruit a Bid Manager to be responsible
for the Network Banking opportunity. Interviews commenced during the
last week in June.
A revised accommodation plan was produced. This takes as its start point the
planned run down in headcount numbers which is contained in the Pathway
business case as the roll out programme comes to an end and the
Development organisation reduces in size. This will allow Pathway to
consolidate its teams and allow space to be released back for occupation by
other parts of ICL.
Following the-review of Health:and Safety in the Pathway labs at BRAO1, a
report was received which identified-all the required actions to rectify
problems in the laboratories. Action has been instigated to ensure all
required actions are taken within the deadlines identified in the report.
Letters were issued via managers informing employees of the outcome of the
June pay review.
In preparation for ISO 9001 assessment, the planned internal audit of the
HR and Resourcing departments took place and with generally positive
outcomes. A numbers of actions were identified by the auditor, mostly of a
COMMERCIAL IN CONFIDENCE Page 39 of 42
FUJ00058192
FUJ00058192
ICL Pathway Organisation & Personnel Report Ref: PA/REP/O5S1
Version: 1.0
Date: 12/07/2000
minor nature. A.remedial action plan-has been produced in response to this
report and work.is now taking place to fix the issues raised in the audit
report.
¢ The Pathway Senior Management Team meeting took placé. From feedback
received from the delegates this was felt to have been a very useful and
positive event. It was felt that the event had given people a lot of useful
information about the direction ICL is taking, its floatation strategy and
insights into customer perceptions of Pathway:
+ An Organisation and Management review of the Programme Office took
place. This allowed the outstanding organisational and people issues to be
discussed and actions to be agreed to deal with the issues raised.
COMMERCIAL IN CONFIDENCE Page 40 of 42
FUJ00058192
FUJ00058192
i Client
FUJ00058192
FUJ00058192
ICL Pathway Post Office Clierit Report Ref: PA/REP/0S1
Version: 1.0
Date: 12/07/2000
The Post Office - Client Director’s Report
1 MONTHLY SUMMARY
Both the ICL MC OneStopShop contract and the A+TC-OSD SMPP contract are causing
problems. We have asked for increased management attention.
QOneStopShop
ICLMC have received a Red Card primarily due.to the Comet system
implemented over a month ago - two red cards and the contract is terminated.
Each order is being walked through the system toensure that it is despatched on
time. This is a difficult process given MC have now over 15 other accounts on
Red Alert. An ex-OSD man has joined ComputerCenter to spearhead their fight
for the single source supply business in PO - this could happen assoon as Q4.
SMPP
The Service Management Productivity Programme is still not.finally closed down in its
current form - the Work Packages are now completed from a delivery perspective
however, we are awaiting formal sign off from the customer. This, and follow-on business
fot a Peregrine-based asset management service, is still being hampered by discussions
around ownership of IPR.
eGovernment
The Govt Gateway bid, led by EDS with. ICL and PO as subcontractors, was won by
Compaq with KPMG. Govt Division await feedback.
Since-introducing gov Works to PO, they have been independently approached by
Rothschilds who apparently consider govWorks a good venture capital bet provided they
have PO’s brand name. Govt Division are now evaluating whether to proceed with
GovWorks.
CMBU
PO have also declared.an intention to-reach a parnering agreement, for joint bids with ICL
for Customer Management.business in possibly govt, utilities, financial services and retail.
Something of a breakthrough. This is being jointly assessed by UK Strategic Accounts
(Derek Hardman) and the e-Innovation CRM team (Alun Roberts).
eBusiness
We hear that Dick Wheelhouse's report a) recommends PO working with IT
partner(s) and b) will not be released for several months.
John Chiswell is reported to have finally taken up his new post as MD e-
Infrastructure.
COMMERCIAL IN CONFIDENCE “ Page 41 of 42
FUJ00058192
FUJ00058192
ICL Pathway Post Office Client .Report Ref: PA/REP/0S1
Version: 1.0
Date: 12/07/2000.
e-Infrastructure
We ran an e-Infrastriicture planning day with Mike Raynor and his marketing
team to establish how ICL’s strategy can be used in PO - at the least this could
develop an ICL/MS Exchange exercise positioning Exchange alongside and
complementary to Lotus Notes.
EBPP
Checkpoint scuppered the ICL/Transpoint bid by telling PO that, after
Checkpoint and Transpoint merge, the Transpoint product will be dropped.
Network Banking
ITT arrived, response to be submitted by Financial Services 28 July.
Smartcard
Opportunitics are now emerging for the DfEE Youth Card (in OJEC); for
Newcastle region Card; for Glasgow Citycard; and for Transys travelcard.
Discussions opened with Graham Taylor (newly-in charge of Smartcard group)
to get the necéssary focus on these opportunities..Government Div appear to
have limited interest.
In the course of his consultancy work for Dave Waltho, Mike Jenkins has been
asked to switch focus to a 3 million cardholder scheme which could support a
Governnient General Practitioner pilot in (possibly) Northern Ireland.
QIEC -Reference data
OJEC $097 -a prime example of PO Purchasing mis-alignment. OJEC
effectively cancelled owing to internal disagreements.
Account Team
After 3 months, Marcel! Bonfrer is moving on from A+TC PO sales to be sales manager
for SmartCard group. We await another new eApps name .
Kate Robinson has.arrived and we will now be able to progress with "marketing"
initiatives, as well as updating the Strategic Account’plan - we recently met with
Ralph Miller and Anmarie Byrne in PO Supply Strategy.
Getting feedback from Brian Doyle/Mika Suortti on current CFAP thinking. Aiming for a
September planning event.
COMMERCIAL IN CONFIDENCE Page 42 of 42