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ICL Pathway
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Technology Progress
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ICL Pathway Monthly Progress Report
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Development Report
Commercial & Financial Report
Customer Requirements Report
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Quality & Risk Report
Business Development Report
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Post Office Client Report
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ICL Pathway Programme Monthly Report Ref: PA/REP/O53
Version: 1.0
Date: 13/09/2000
Document Title: ICL Pathway Monthly Report - August 2000
Associated Documents:
Reference Vers Date Title Source
ie) PM/PRO/002 1.0 26/09/96 Pathway Programme - Project
Planning, Reporting and Control
Approval Authorities:
Name Position Signattire Date
M. Stares Managing Director
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ICL Pathway Development Report vent PAREP/OS3
ersion: = 1.
Date: 13/09/2000
Managing Director’s Summary
1 PROGRESS AND ISSUES
Generally good progress is still being made, although CSR+ migration has proved
problematic and we have had to manage the fuel crisis. Our systems and processes are
holding up well as we continue to increase the. number of live Post Offices and we are
now entering a cost. down phase which is critical to the business plan.
Rollout is on track. We have migrated over 12000 post offices (>60% of the estate)
and are still achieving in excess of 300 implementations per week. We are about a week
ahead of plan. We have trained-in excess of 40000 Post Office staff. This performance
is recognised by PO. The fuel crisis posed a significant threat but we managed through
this with only a hand full of missed migrations, a magnificent result and one which has
further improved our developing relationship with PO.
Weekly service performance is a key issue and we are back on track and are
demonstrating consistent performance. There are signs that the PO wish to do a deal
on those SLA’s that we are missing.
Following the success of the PO User Confidence Trial (UCT), CSR+ Data Centre
upgrade has been successfully achieved and is supporting the live estate. There are 230
live CSR+ post offices and the software performance is looking acceptable. We have
struggled to demonstrate a migration strategy that will achieve the 600 per night
required for the roll out program but have now identified what we believe to be an
underlying NT instability. A work around kas been successfully tested on a live
migration run of 20 post offices and we intend to further trial this on Thursday 21*
September. If this is successful we will start the formal CSR+ pilot and would intend to
migrate a further 600 post offices w/c 2 October. If successful we can then move into
full roll out and complete by Christmas. Post Office is being very supportive although
their confidence has been dented.
Headcount management remains a big issue and is getting considerable attention. 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 that will demand a large variable profile
of skills and resources.
1.1 PIU REPORT
The long awaited PIU report on the future of the Post Office Network is directly
critical of PO for not moving quickly enough into new business streams and is
supportive of new initiatives such as 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. We worked with PO
on their response to the PIU.
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ICL Pathway Development Report Ref: PA/REP/OS3
Version: 1.0
Date: 13/09/2000
1.2 NEW BUSINESS
We are still engaged in joint working groups/discussions on Network Banking, EFTPOS
and ERA.
Progress on significant e-commerce initiatives proves difficult with lack of momentum
in the PO. They have lodged a European Journal enquiry for potential e.commerce
suppliers to which we are responding.
1.2.1 NETWORK BANKING
Pathway is the nominated contractor for the Counter and we are evaluating technical
options with PONU and PO Network Banking Unit. The £620K feasibility study
(Network Banking Proof of Concept) for the production and evaluation of an e-
enabled counter banking approach was delivered and demonstrated successfully. The
next phases need to be a requirements definition and design which will be. chargeable
services.
1.2.2 RE-ENGINEERING/ERA
As with Network Banking,: joint activities have been proceeding at a pace. Initial
scoping suggests a £20M. plus opportunity for Pathway in a 2002 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 are now delivering the £400K consultancy contract that
places us at the heart of this:initiative, together with Sema and Deloitte Touche and are
discussing significant additional consultancy work for Q3 and Q4. However,
indications are that there will be-a three month minimum delay to this initiative-as Post
Office get their own plans-aligned and priorities understood.
1.3 NATIONAL AUDIT REPORT
This has now gone quiet and hopefully is assigned to history.
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Development
Report
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ICL Pathway Development Report Ref: PA/REP/OS3
Version: 1.0
Date: 13/09/2000
Development Report
1 MONTHLY SUMMARY
e Thé live pilot regression tests and the targeted volume and performance tests on
the APS Host systems ran successfully. Only a small number of additional
incidents were raised. .
e We successfully resolved all the major problems preventing the migration of the
Data Centres to CSR+. The release authority board and the checkpoint review
held on the 18” and 24* August respectively confirmed the Pathway
recommendation to proceed.
. The Data Centres were successfully migrated during the bank holiday weekend
26" — 28" August. We have encountered a number of problems in the overnight
batch schedule since and these are being addressed, otherwise the upgraded
system is performing reasonably well.
° The migration of the counters for the CSR+ pilot commenced 4" September.
However, a.known intermittent fault in the ‘teamcrypto’ software is occurring at
a much higher frequency than anticipated. This is having a serious impact on the
counter migration schedule. On a more positive note, the CSR+ software
appears to be. functioning well in the. handful of newly rolled-out outlets and
those which have been successfully migrated.
° We.are experiencing difficulties with the casing for the mobile unit in terms of
weight and delivery timescales. These will adversely impact the plans for
completing the ‘roll-out tail’ if they cannot be resolved quickly. The satellite
option is functioning well in the internal testing phase but we have run into a
build problem. The first satellite installation is due to take place 1* November
2000.
° The ‘Maintenance Release (M1)’ has entered the build phase and the first of the
five test cycles is planned to start 18" September. Distribution to the live estate
is planned to occur in late January.
° The development departmenit is actively involved in the preliminary analysis
stage for Network Banking and EFTPoS and in addition continues to support
the early work on the ERA Project.
° The Development Directorate is now entering a large pianned downsizing phase
from approximately 290 to 170 personnel. This is being implemented against a
background of speculative development opportunities, which presents a
significant management challenge.
° Work-on preparing for the ISO 9001 certification continues at a pace in all the
development departments. There are still a few issues outstanding but much of
the-work has been completed.
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ICL Pathway Development Report Ref: PA/REP/OS3
Version: 1.0
Date: 13/09/2000
2 PROGRESS
° We were left with a number major incidents that had to be cleared before we
could enter the live pilot with a high degree of confidence. These were
successfully resolved and the Data Centre migration was achieved during the
bank holiday weekend 26"- 28" August. A number of incidents have occurred
during the overnight batch schedule which are effecting the operability of the
system. These are being investigated as a matter of urgency.
° The pilot outlets were scheduled to begin operating the CSR+ software from 4"
September and the migration of the existing estate to commence 25" September.
Unfortunately, a known intermittent fault in the ‘teamcrypo’ security software is
occurring at a much higher frequency than expected. This is seriously impacting
the rate in which the counters can be migrated.
° Development of the Maintenance Release (M1) is progressing according to plan.
The first release has entered the build phase and the first of 5 test cycles due to
start 18% September. Several deliveries are scheduled throughout
September/October and testing is planned to complete 13" January. The release
will be committed to the live.estate 28" January 2001.
° The interim solution for the OCMS system is currently undergoing B&TC
testing and no major issues have been identified to date. Development of the full
solution is progressing according to plan.
° The Data Warehouse change for the new invoice has: been successfully system
tested. and the Warehouse is now undergoing general regression testing.
Development has commenced on the use-of ‘business objects’ to report against
service levels in the future and replace the current SLAM processing suite.
° The proof of concept project for network banking is complete. The.final report
has been distributed and a presentation of the findings given to senior managers
within the Post Office. The initial reaction has been very positive and we have
now begun work on the preliminary analysis stage to clarify the requirements
and resolve some of the issues raised in the report.
° Work continues on the set of management and corrective action plans in
preparation for the ISO9001 accreditation.
3 COST DOWN
. Several changes designed to reduce the maintenance and support costs and
reduce the traffic in the network have recently been approved. These include
the removal of inter-campus ATM and EMC link and the calling line
identification protocol (CLIP).
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ICL Pathway Development Report Ref: PA/REP/OS3
i 1.0
Date: _ 13/09/2000
4 CURRENT CRITICAL PROBLEMS
. We must resolve the operational problems being experienced in the overnight
batch schedule in CSR+.
. We must find a way to migrate at least 300 outlets onto CSR+ within the next
few days. This will enable the new software to be properly exercised in the live
environment, In parallel we need to overcome the teamcrypto problem so that
we can migrate the remaining estate in a few weeks time.
5 ISSUES
° 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 be
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 process.
° 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 in place which will enable the
functionality to be exercised from the beginning of the final quarter i.e.
December. “)
° We believe that our supplier (Celestica) is encountering difficulties with theit
sub-contractor regarding delivery of the casings for the mobile units. This could
adversely impact the 8" January 2001 roll-out date if it is not addressed
urgently.
The automatic build process for the satellite configuration cannot be implemented.
This means that each of the 500 units must be built manually before being shipped for
installation at the outlets. This may have cost and/or timescale implications.
6 COSTS
The development activities continue to progress in accordance with the: forecasts and
remain under tight control and subject to regular financial reviews.
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ICL Pathway Commercial & Financial Report Ref: PA/REP/O53
Version: 1.0
Date: _ 13/09/2000
Commercial & Financial Report
° The fuel crisis dominates current thinking. The most direct impact is on roll out.
The forecast to be submitted tomorrow will show a significant shortfall in revenue
(around £6.7m) and profit (£0.7m) this month (and half year end). The current
assumption is that recovery will be possible by year end, albeit at a cost. That.may
be optimistic.
. The fuel crisis will also impact the migration related work and work generally. We
have registered ‘force majeure’ with POCL and they with us. That means we should
have relief on SLA remedies where we can show fuel dependency.
° The other major hot spot is CSR+ counter migration and HAPS reporting. The
resolution of both is key to entering and exiting from CSR+ pilot. As time goes by,
the risk of migration slipping into next year grows, with knock on implications for
the M1 release and therefore resourcing and costs. The good news is that once
migrated, CSR+ appears to work well.
. Costs have continued to run at below Budget rates. The underspend to date will be
used to fund extended CSR+ and M1 work between next month and year end. The
forecast is that we will get back to Budget spend rates by year end and stay within
cost Budget for the year as a whole (taking into account the risks and issues
identified below).
° Total revenue is £2m above Budget to date. This is thanks to roll out being ahead
of plan and infrastructure invoicing also ahead. New Business revenue is on Budget
to date but the forecast for rest of year now looks soft based on latest: POCL input.
Basically, they are running slow and are unlikely to commit all the work we had
anticipated for Q3. Of the £3m full year Budget, over half remains ‘book and ship’.
We will need to continue to balance the speculative retention of key staff against
this emerging requirement very carefully. We will also propose a ‘committed
funnel’ approach, offering assistance (unpaid) with getting business requirements
signed off in return for amounts of guaranteed work and timing flexibility for
delivery.
° Cash performance continues to better Budget by a significant margin (revenue up,
costs down, creditors up). However, this will unwind to a large extent as the year
goes on and revenue and costs go the other way. We have negotiated forward the
third milestone payment to 30 September from 1 December in return for interest
on the advance. The chances of pulling forward the final milestone payment into
this year are, however, slim.
° We are about to go breach of contract on SLA performance. Three successive
quarters of SLA shortfalls are about to be declared at the Service Review Forum
next week. We should expect a formal ‘breach letter’ and pressure to apply
additional effort to do better. The scope ranges from help desk to time to fix and
file transfer. This was always expected, but the extent of the work and cost impacts
remains to be sized. The mindset should be akin to Acceptance.
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ICL Pathway Commercial & Financial Report Ref: PA/REP/0S3
Version: 1.0
Date: 13/09/2000
° Training remains an issue, specifically the lower than planned course occupancy
rates and the attribution of responsibility for that shortfall. The consequence is a
£1m plus hit in terms of the cost of additional courses required to train all the
counter staff. Allocation of responsibility is multivarious. POCL are required to get
their people to the courses (arguably they fell short of this obligation), we and KPL
are required to send out invites in good time (KPL failed to do that for a number of
months, but the Pathway RODB on which they depend was also deficient for a
while), rescheduling of roll out wastes course places (probably more down to
Pathway than POCL). We will run out of paid for'courses in November, so need to
reach agreement on an equitable sharing of the over-run with POCL and KPL by
mid-October.
. Issues remain on a number of contractual matters. Each will require negotiation
with POCL. These include:
e the need for more training courses (as above),
e definition of which software related incidents are subject to time to fix
remedies (significant cost implications),
e Help Desk SLAs - with and without IVR, and moving to single point of contact
(NBSC)
¢ transaction time SLAs — ball is in POCL’s court to propose changes to the way
we do this,
e TIP reporting (file management and Stock reporting detail),
¢ Resetting the Part A roll out target to take account of reduicing outlet quantities
- mechanism agreed in principle but still subject to CCN,
« Terms and conditions for new business work packages — e.g. the extent to
which we are prepared to give warranties - need.to be agreed for new work,
¢ Operational Business Change pricing - close to resolution
e Consumables - POCL want to use generic consumables which may damage the
counter printers — we have withheld approval
e Resolution of AI 199 and associated A2A (formally about internal service
measures and now about the wider application of the generic acknowledgement
utility).
° There are some supplier issues also:
e Flat screen quality - Optoma have produced a firmware mod but site visits are
required — there is bound to be a fight over costs (estimated at circa £1m)
© Nt final payment - £800k claim of which we judge perhaps 25% to be fair
e KPL-our claim in-respect of wasted course places (as above - their share could
amount to £400k)
¢ —Celestica - mobiles cost.- £130k disputed cost hike
° Departmental Budgets for 2001/02 are in process. The objective is to have these
agreed in outline before submission to Group in November. They will include
organisational/ resource based cost down actions and other identified cost down
tasks. Most difficult to assess is the new business component, the latest assessment
of which is a lower number than the £12m revenue scoped a month or so ago. If
confirmed, that will require a pairing back of costs and crystallise margin
contingency already built into the Business Plan.
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ICL Pathway Commercial & Financial Report Ref: PA/REP/OS3
Version: 1.0
Date: _ 13/09/2000
Finance shared services as a centralised function is dead, but the Propel systems .
which we need for time recording and invoicing are going ahead as planned and
should now be easier to fit.to our business needs. The target remains unchanged:
to implement the new Oracle ledger environment and Project Accounting this
calendar year, with time recording to a consistent WBS structure (AMS/RTR) being
rolled out in parallel under Programme Office control.
DTI have now formally requested an audit of:the £8m.interim government funding
of April/May last year.
PROGRESS
Continuing excellent progress on roll out-— up to the point where the fuel crisis hit.
CSR+ product quality appears from early life experience to be good (exception the
HAPS file delivery)
Customer attitude — generally more supportive despite the problems.
RISKS
Fuel crisis — impact on roll out in particular
CSR+ migration issues — cost and customer confidence — possible knock on to new ,
business
New business funnel - PIU and Market Facing Unit dependencies cause delay in
POCL decision making and commitment
Breach over failure to meet SLAs.
ISSUES
As risks above.
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ICL Pathway Commercial & Financial Report Ref: PA/REP/O53
Version: 1.0
Date: 13/09/2000
ffm Actual _Forecast
Current Month YTD Ist Half Year Current Half Year
‘Actual I Budget I BAW) I Actual I Budget] BAW) [Forecast] Budget I BW)
Budget Budget
Total Orders 0.0) 02, Ont 07 04 0.3)
‘Total Revenue 20.8) 20.6 0.3) 119.3) 117.4 1.9] 134.3) 132.2} 24
Revenue Growth 4071.1 [4020.2 (7429.8 I7309.2 88.2%} 85.3%
% % % %
\Total Gross Margin 2.2I 2.2I 0.0) 12.6) 12.5) 0.2) 14.3 14.0) 0.2I
Gross Margin % 10.7%] 10.7% 10.6%} 10.6% 10.6%} — 10.6%I
Net Marketing Opex (0.0) -I (0.0)} (0.0)} (0.0)! (0.0 (0.0)} —(0.0)I (0.0)
INet Marketing Opex % (0.0)%I 2 (0.0)%} (0.0)% (0.0)%} —(0.0)%I
Development Opex - - I - + - - . -
(Other (Costs)/Income - - 4 ; : Z Z Z .
Operating Profit on Associates + + E - - I - I -
\(Contingency)/Task #VALUE!/#VALUE!I#VALUE!}#VALUE!I#VALUE!I #VALUE!I I #VALUE!] #VALUE! I#VALUE
(Ongoing Operating Profit 2.2, 2.2I 0.0} 12.6) 12.4 0.2 14:2 14.0] 0.2
Ongoing Operating Profit-% 10:7%] 10.7% 10.6%} 10.6%} * 10.6%I 10.6%
Rationalisation - + + + + - x - -
Operating Profit 2.2) 2.2 0.0) 12.6] 12.4] 0.2 14.2 14.0 0.2I
P.O.D.D.0. -I -I c -I ; 4 - in -
‘Total Interest - -I I + - I - - -
Investment Income/(Expense) + - s - - - - _ -
PBT 2.2) 2.2 0.0) 12.6) 12.4] 0.2) 14.2) 14.0) 0.2
[Net Borrowings/(Cash) 95.1] 107.7 12.5] 95.1] 107.7) 12.5) 115.4) 123.6) 8.2.
Net Inventories 2.9) 12.1 9.2) 2.9) 12.1 9.2 5.9] 13.4 7.5)
Net Receivables 0.2) 0.5I 0.3] 0.2) 0.5 0.3) 0.6 0.6) 0.0
Total Trade Creditors 10.3 24] (8.2) 10.3 21} (8.2) 10.4 21} (8.3)
Employees 198) 218] 20} 198) 218 20! 198 219 2h
Non-Permanent Staff 12 10 (2) 12 10I (2) 1 10 qd)
‘Total Headcount 210! 228I 18] 210; 228) 18) 209) 229 20
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Version: 1.0
Date: 13/09/2000
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Comments on Current Month Actual
Total Orders: There were no Significant riew orders in the month, although the Post Office
committed to further paid-for initial design work for process re-engineering. This should result in
a further small order in September towards the new business targets.
Revenue: Revenue was marginally ahead of both budget and forecast in August. This was due
mainly to earlier than forecast invoicing for implementation related activities: The main rollout
continued in line with forecast during the month.
Gross Margin: Profit recognition on the project was accrued at the forecast-level of 10.75% of
revenue. This percentage will increase each quarter, in order to yield an overall 11% profit on
revenue for the year as a whole - subject to the overall project lifetime profitability projections.
Operating Expenses: Staff costs were lower than budget and marginally lower than forecast, but
the higher use of freelance resources saw their costs record an adverse variance of £0.2m in the
month. This was more than offset by favourable variances on communications costs, legal
expenses, and maintenance. There were also exchange gains of £0.2m in the month.
PBT: Marginally ahead of budget and forecast, with profit recognition tied into revenue
performance.
Borrowings: Month end net borrowings were slightly better than forecast and £12.5m better than?
budget. Project cost savings of £5.7m and lower working capital levels are the cause of the
majority of the budget variance.
Comments on Forecast - ¢
Revenue: The. August forecast revénue again is unchanged from both budget and previous forecast
for the year asa whole. The rollout of counters to post offices is forecast to continue smoothly in
the short term, leading to a favourable revenue position at the end of the Ist half year, £2.1m
ahead of Budget.
Gross Margin: There is no change to the % levei of profit recognition, leading-to an unchanged
PBT forecast.
Operating Expenses: No significant changes. Weighted risk costs have been included totalling
£3.7m, covering the potential of expenditure necessary to support the timely and proficient release
of new software, upon which the longer-term post office counter applications will be based.
PBT: No change - see above
Increase / Decrease in Employees: Employee numbers are still forecast to fall, in line with the run-
down of implementation related activities and the completed of core system software released.
The August Forecast sees March 2001 permanent heads of 183, which is 11 lower than budget and
a half year favourable variance against budget of 21 heads. However, this masks the higher than
budget total resources used on the project when ICL eApplications contract staff and Freelancers
are taken into account. Total resource numbers of all categories of staff are forecast-at 582 for the
end of the half year — and we. are below that already in total — falling further to 425 at the year
end. This compares with budgeted levels of 549 and 408 respectively for those two dates.
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ICL Pathway Customer Requirements Report Ref: PAYREP/OS3
Version: 1.0
Date: 13/09/2000
Customer Requirements Report
1. SUMMARY
Very positive progress has occurred this. month on all principal new business streams.
Within Network Banking we have moved into the next phase of work, which is to
identify and resolve major issues in the end-to-end design.
The work on ERA progressed well. A report covering the implications-on Horizon will
serve as the foundation of the next stage‘of ERA work.
The Pathway analysis of the PIU Report was followed up with proposals for specific
work packages and partnering. As a result we.have been invited to enter into a formal
partnership selection process; as one of three contenders, for a POCL e-Government
services partner / supplier.
1.1. DETAILED PLAN ACTIVITIES
1.1.1 NEW BUSINESS REQUIREMENTS
Network Banking
CCN669 was submitted as a draft: This authorises Pathway to supply about 60
man-days of consultancy in the Preliminary Analysis Phase of the Network
Banking project. The CCN provides a link to a future CCN for further supply
should the 60 man-days be insufficient.
Comments have been received on the CCN’s terms and conditions but not yet
on the work objectives. Work is continuing under a side letter agreement and
an RTR time recording code has been assigned to this stage of the project.
However, there remains an element of risk within this arrangement until the
CCN is formaily approved.
The purpose. of the Preliminary Analysis Phase is to define business
requirements, investigating those points within the end-to-end design at which
options exist, with a view to deciding which options the project should follow.
This approach is intended to prepare the project for the next phase, the Detailed
Analysis Phase, by eliminating options-at as-early a stage as possible.
Pathway will review technical options where these are relevant, but will exclude
any further discussions on the old Option 2 / Option 3 issue, for which Pathway
has.delivered the final study report.
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ICL Pathway Customer Requirements Report Ref: PA/REP/0S3
Version: 1.0
Date: 13/09/2000
The current stage of work’is under. POCL program management (Mike Woolley,
with Bob Booth deputising during his current absence) and is in the form of a
series of joint POCL / Pathway workshops, each reviewing the major options
and issues ‘in a particular area of the overall end-to-end design. These will
output recommended solutions where options or choices exist. Where such
resolution is not possible within the Preliminary Analysis Phase the issue will be
flagged for urgent follow-up as a priority activity in the following Detailed
Requirements Analysis: Phase.
A draft document identifying a set of Product Descriptions using Prince 2
methodology was produced as the initial deliverable. This defines workshops
and documented conclusions for:
e Service Definition
e Reconciliation
e End-to-end design options, Interfaces and SLAs
e Reference Data (workshop held 8/9/00)
e Horizon Infrastructure extensions
e Security
Further deliverables cover documentation on future options, where further
work is required, and on deliverables.to be produced in-the next:stage..
This work is not» affected by the various delays in the Banking Engine
procurement.
ERA
Alan Paterson and Mike Chawner are fully engaged in the ERA activity.
Following a number of workshops-with user-type representation during July, the
ERA team has documented over 400 requirements, ranging from the trivial to
the significant. These are documented under four classifications (Accounting,
Sales, Stock and MIS). The ICL team is being asked to look at each
requirement, rate its impact on Horizon (H, M, L) and assess the cost of moving
to the next stage. However, the business rationale and contribution of each to
the main business drivers for the Post Office has not yet been made.
Mike and Alan have produced a report covering the impact of Project ERA on
Horizon that will assist in.setting the strategy for the ERA project’s next stage —
the Migration Strategy. The document highlights the key proposals for Project
ERA in both technical and business requirement areas with a focus on the
impact on the current (CSR+) version. The-document’s main audience will be
members of ICL Pathway who will have a full view basis on which to take
forward the migration and implementation of the Project ERA proposals.
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ICL Pathway Customer Requirements Report Ref: PAYREP/OS3
Version: 1.0
Date: . 13/09/2000
The overall project’s objective is to produce a Business Blueprint by the start of
September, and this will cover both business and overall technical perspectives,
although with insufficient emphasis on the former, particularly in relation to the
part played by Clients themselves
In fact it is currently the SEMA members of the ERA project that are influencing
the technical strategy and in effect seeking to confine Pathway to the counter
area.
PIU/GGP
Dave H worked on this in conjunction with John Bell and Mike Jenkins. The
response to POCL covering suggested work bundles was completed, along with
a formal Pathway report covering our analysis and comment on the Performance
& Innovation Unit (PIU) report. These formed the principal input to POCL’s
Government Strategy unit via Catherine McCrohan.
Subsequently we received a request from Dave Waltho, Post Office Government
Strategy Director, for initial input to a partnering selection process for
Government General Practitioner (GGP) and responded at short notice with-a £
document. drawing on ICL’s strengths in Horizon, the Government marketplace
and electronic business skills.
We have just been advised that POCL will now enter into a formal partnership ‘8
selection process for an e-Government services: partner/supplier, the contenders
being ICL, IBM and Andersen Consulting + 8
A management summary document of our PIU analysis and comment was also
produced for the Pathway management team.
Service Development Plan
Two areas are under broad discussion, but neither has reached the point of
CCN for enhancement work:
Dave Cooke is assisting Liam to explore how to enhance OBCS to prevent
books stolen in transit-from being encashed, and/or adding information to the
barcode to prevent a cover from being re-used with counterfeit foils. Dave C
has produced a note principally describing a scheme to check that encashments
come from duly issued books.
We are considering how the flexibility of APS could be applied to unrelated
business areas, e.g. recording parcel receipt and issue to support a Home
Shopping scheme.
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1.1.2
1.1.3
EFTPOS
EFTPOS discussions have started again. John Coakes and Dave Cooke met
POCL (Andy Radka) and re-stated the- approach and issues that must be
addressed to get the enhancement programme started. Indications are that this
information is being only slowly circulated for further comment around various
parts of POCL and hence there. is the risk of missing deadlines for development
to commence. TDA are getting geared up for this project.
ACCEPTANCE LOOSE ENDS
Acceptance Incidents (AIs)
We continue to whittle down. the few remaining “Low” priority Als. Ten in the
POCL Infrastructure area were dealt with during the month. Six are
recommended for closure, two are scheduled for M1, one is expected to be
ready for the M1 release, and one might require a site visit to OSD Belfast.
CSR / CSR+
AP Client Migration
Production of Client Specifications has slowed, partly because a new pattern of
Application Interface. Specification, based on legacy magnetic tape file. formats,
was required for SWALEC and Northern Ireland Electricity. This is now
available-and these two specifications will be prepared for-review.
We are awaiting formal POCL approval of the Welsh Water specification.
CCNs for the interim and final solutions for flexible days-per-week File Delivery
are with POCL for approval. A commercial-type rejection on the final solution
CCN has been received.
POCL expects to be able.to advise the results of the POCL HAPS sizing study in
the next week or'so. This is now looking more positive, and might well, mean
we can move some of the Client migration dates to after the M1 Release, and
therefore not use the interim file delivery solution at all.
The CCN to start work on the Application and Technical Interface
specifications for British Telecom is with POCL. POCL is very concerned about
the final cost of this and is looking at other ways of linking into the BT site.
This might involve retaining their legacy interface based on their Document
Processing Centre system, and possibly using this for other Clients in the future.
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Other APS
POCL has put on hold our proposal for supporting Girobank if it moves to a
Disaster Recovery site.. POCL is.looking-at ‘a much simpler facility with Pathway
producing transaction files on exchangeable media, probably CD. ‘This could
also be used. for many of the smaller Clients who could not afford a second site
interface.
Quantum - This is currently disabled in initial CSR+ and planned to be
introduced in November / December, because of a delay in the availability
Siemens back-end systems. However, recent information suggests that Siemens
may not be able to make even 'this date. POCL jis to advise on the situation this
week.
Installation of live equipment on site at British Gas for SPM smart card
operation has been delayed. This is due to British Gas Trading and POCL not
being aware that the original kit we installed was for development testing only
and had to be replaced.
The CCN for the HAPS Data Cleansing Service definition was approved and x
Dave Cooke has prepared the outline Service Scope document. An internal
review to define how we do this service is planned for the week of 11/9.
OBCS ‘s +
POCL has now advised that their delayed introduction of support for the IR ; é
order books is to go ahead. This is-being managed by CS and will take place on
18/9.
TIP Interface
John Pope continues to monitor operation. of the TIP Interface. A significant
problem was resolved last week, in conjunction with CS, following a failure to
harvest transaction details properly for some 300 outlets. Several hundred
thousand records were-recovered and transmitted in time to meet our SLA “Day
D" deadline.
Legalistic exchanges continue with POCL Commercial about the fact that we do
not accept any obligation to send Non-value Stock declaration data to TIP.
SADD
What could well be the version of the SADD that forms the CSR+- deliverable
was output.
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1.1.4
11.5
PROPEL ACTIVITIES
Training on Macroscope has continued with John Pope, Alan Paterson and Joan
Tan now having completed the current programme. This gives us coverage on
ERA and partial coverage on Network.Banking. A decision will need to be
taken on whether GGP should be: considered as a Macroscope Pathfinder
project, possibly as.an alternative to Network Banking.
We are responding to a request for advice on DOORS usage as other projects
consider its deployment elsewhere.in ICL.
OTHER ACTIVITIES
PINICLs
This month has seen substantial levels of effort given over to PinICL resolution,
with priority being given to those which could result in Desktop instability or
SLA failures if unresolved. There are no significant Pin]CLs for Requirements
team resolution.
Outlet Monitoring
The team continues. to provide support to the CS initiatives on this, covering
monitoring of ISDN and node operation within the outlet, a procedure for
collecting transactions marooned at an outlet:and updating an .outlet’s Reference
Data and OBCS stop lists... Contributions to. CPs were generated.
Workflow Standards
Dave H chaired the recent Workflow Management Standardisation meeting in
Boston and co-presented a tutorial at the XML World conference on XML-
based Standards for B2B Process Integration.
Presentation to POCL IS/IT Procurement Director
Dave H contributed to this event providing a presentation on ctirrent Horizon
capabilities and options for exploitation in GGP / ILAP and e-Commerce areas.
POCL SPICE project
Dave H (with John Bell) had some exploratory informal discussions with the
POCL SPICE project over options for capturing customer contact data within
Horizon and feeding it to the intended SPICE back-end environment. The
implementation contract was awarded,to Deloittes and is expected to.use Siebel.
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Version: 1.0
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2 CURRENT CRITICAL PROBLEMS
None.
3 ISSUES
We have to gain some greater influence over the technical direction of ERA. We
should also maintain a contingency view that when the ERA Client and other re-
engineering costs are assessed in Q1 2001 there will be a pragmatic retrenchment that
could be made to workin our favour.
Dave.Hollingsworth and John Dicks 11/9
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Customer
Service
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Veésion: 1.0
Date: 13/09/2000
Customer Service Report
1 SUMMARY
e The stability of the Correspondence Servers continues to cause concern and in
the week preceding the CI_4 upgrade they suffered major problems. The overall
effect was a large percentage of failures of transactions on DAY B for 2
consecutive days resulting in penalties-of approximately £15,000.
. A manual process failed on Monday 4" September and the harvesting of the APS
transactions did not take place. The transactions were re-harvested and the files
re-created but missed the SLA for transmission to APS.
° There has been limited progress on AP Client Migration and there is concern
that the Girobank host changes will not be ready in time for M1 testing. POCL
have indicated that the capacity of HAPS may be insufficient to handle the
increasing data volume if Girobank were not migrated until Q1 2001. POCL
have confirmed that DVLA has been taken on as a new client with a direct
interface from HAPS and a CR is needed to add DVLA to the end of the current
AP Client Migration programme. The AP Client Migration Programme needs to
be replanned and it is now almost certain that not all activities will be completed
by the end of March 2001.
° Although there are a few issues that still need to be resolved, the Data Centre is
considered to have been successfully migrated to Cl_4 over the Bank Holiday
weekend. A full systems and operations audit of the datacentres has been
commissioned and will report by the end of September.
. CI_4 Counter migration commenced on Sunday 3" September but failed. A
revised Tivoli package was tried on Monday 4" September at 5 Outlets, Only 1
out of the 5 successfully migrated. A number of migration issues highlighted by
the 4 failures are being addressed.
. Rollout of new CI_4 Outlets started on Monday 4" September and apart from a
few teething problems seems to be progressing well.
. Settlement has now been agreed for April, May and June 2000 BIMS reports
between Pathway and PON with an invoice adjustment being requested from
Pathway finance. The value is £45,900.
° Revised System service remedies calculations’ were submitted to PON on 25"
August for their approval and subsequent agreement. They equate to £227,709
of which £189,720 is recoverable from OSD.
. The issue of joint Manager Care visits needs to be escalated within PON, as it is
clear that we have two different agendas for doing these.
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1.1. VITAL STATISTICS
Live Base as at 31% August 2000: 11,181 Post Offices, 24,674 Counters
Cumulative Data is from 1* December 1999 to 26" August 2000 inclusive
Monthly Data is from 30" July to 26" August inclusive
OBCS
Total number of transactions to date 131,534,342
Total number of transactions in August 31,010,315
Total value of payments to date £10,079,420,482
Total value of payments.in August £2,425 ,469,687
EPOSS
Total number of receipts to date 201,136,161
Total number of payments to date 59,775,027
Total number of zero value transactions to date 15,523,329
Total number of receipts.in August 38,362,366
Total number of in payments Adguat . 7,465,089
Total number of zero value transactions in August 3,154,291
Toral value of'receipts to date £11,252,204,884
Total value of payments to date £5 ,442,705,444
Total value of receipts in August £2,268,103,317
Total value of payments in August £703,379,281
APS
Total number of transactions to date 62,893,177
Total number of transactions in August 12,469,209
Total value of receipts to date £1,736,982,015
Total value of receipts in August £327,515,075
NOTES:
e OBCS transactions include non-monetary transactions - issue of books,
change of address etc.
e Cumulative Data from May 1999 will be published once analysis of archived
Data Warehouse data is complete.
e Weekly data is now available on the Customer Service web site.
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2 PROGRESS
2.1 OPERATIONS
2.1.1 AVAILABILITY MANAGEMENT
The stability of the Correspondence Servers continues to cause concern and
in the week preceding the Cl_4. upgrade they suffered major problems. The
overall! effect was a large percentage of failures:of transactions on.DAY B for
2 consecutive days resulting in penalties of approximately £15,000.
Due to CI_4 issues with the APS Harvester, OSD are currently operating
several manual workarounds to ensure that the harvesting is kept on
schedule. There appears to have been érrors with the workarounds and
therefore the harvesting of the APS transactions did not take place. 4th Line
Support units are attempting to resolve the problems.
There were no major network incidents during August.
2.1.2 REFERENCE DATA
There is concern over the performance of the Data Centre with large
volumes of non-core Reference Data remains, even with 64 Agents at CI 4.
Changes may need to be made to the processing mechanisms. This is being
monitored.
PON have been requested to provide a statement of their requirements for
AP Smart Cards.
PON data quality is still a cause of concern. PON have appointed David
Anders as interim problem manager.
2.1.3 POCL.INTERFACES
2.1.4 AP
The number of daily APS files is regularly approaching 19, and the POCL
HAPS limit is 22. POCL are investigating what-action they can take at HAPS.
CLIENT MIGRATION
Since the last report, the focus has been on Cl_4 with limited progress on AP
Client Migration. Furthermore, there is concern that the Girobank host
changes will not be ready in time’ for M1 testing.
Girobank is causing further concerns to the APCM programme. The
required functionality to deliver files 5 days per week instead of daily will
not be available before Q1 2001. Furthermore, POCL has indicated that the
capacity of HAPS may be insufficient to handle the increasing data volume if
Girobank were not migrated until Q1 2001.
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Development has commenced on Mid Kent Water, Hampshire County
Council, Southampton City Council, Knowsley, and Yorkshire Electricity
and is progressing according to plan.
POCL have confirmed that DVLA has been taken on as a new client with a
direct interface from HAPS and a CR is needed to add DVLA to the current
AP Client Migration programme.
The AP Client Migration Programme needs to be replanned to incorporate
these changes and it is almost certain that not all activities will be completed
by the end of March 2001.
2.1.5 PERFORMANCE MANAGEMENT
Work has been proceeding on. the confirmation of the short-term and the
long-term designs. The design document for Phase 1 has been issued for
comment in advance of the CP and the Phase 2 document is.in preparation.
A meeting to map the various parts of the PMS to specific releases e.g.
CI_4RA has been scheduled for Monday 4" September. The target is to get
Phase 1 into the Data Centre by the end of September.
2.2 SUPPORT SERVICES
2.2.1 GENERAL
The SSC have been. heavily involved.in dealing with Correspondence-Server -
related issues, the stability of which has been causing concern. The Wigan
Bootserver is now more stable; following a significant reduction by Energis
of incorrectly routed "rogue" calls from live:Outlets.
A proposal for the support of. TeamWARE Crypto has been provided by
OSD. Support will be handled along similar lines to that for OBCS and OAS
- i.e. supported by e-Applications staff.
2.2.2 MAJOR RELEASE IMPLEMENTATION
Although there are a. few issues that still need to be resolved, the: Data Centre
is considered to have been successfully migrated to CI_4 over the Bank
Holiday weekend. This was achieved through very high levels of effort, and
with considerable expertise, by some very dedicated people from CS and
across Pathway.
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Version: 1.0
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e Counter migration commenced on Sunday 3% September but failed. A
revised Tivoli package was tried on Monday 4 September at 5 Outlets.
Only 1. out of the 5 was successfully migrated. A. number of migration issues
were highlighted by the 4 failures. 1 will be circumvented by’ additional pre-
migration checks at every Outlet, 1 will be resolved by a change to the
migration script and the final one is considered to be an extremely rare event
and will not be addressed in the short term.
© Rollout of new Cl_4 Outlets started on Monday 4" September and apart
from a few teething problems seems to be progressing well.
2.2.3 RELEASE MANAGEMENT
° 7 Release Notes.for CI_3R have been raised over the reporting period and 4
have been authorised for live.
© 92 Release Notes for CI_4 at the Data Centres have been raised from the
latest system baseline document. 34 of these went live over the weekend of
26"/27" August.
e 10 Counter Release Notes to deliver the Cl_4 Counter upgrade to Ci_3R
Counters were distributed to 25 Live Pilot Counters on 29/30" August.
2.2.4 METRICS
For the month of August 2000. &
Release Notes cleared by OTT 29 a 4
Total Calls raised through SSC 721
Total Calls closed through SSC * 853
* Of the.total calls:closed, 413 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
2.3.4.4 BUSINESS INCIDENT MANAGEMENT
¢ Settlement has now been agreed for April, May and June 2000 BIMS reports
between Pathway and PON with an invoice adjustment being requested from
Pathway finance. The value is £45,900.
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2.3.1.2 MIS
e Service Review for August completed. successfully with PON on 23" August. No
issues were raised with any sections within the Service Review Book and all
calculations were deemed acceptable for service level conformance.
e Revised System service remedies calculations were submitted to PON on 25"
August for their approval and subsequent agreement. They equate to £227,709 of
which £189,720 is.recoverable from OSD. A value for those-software calls that had
hardware fixes has been passed to Tony Oppenheim. It equates to an additional
£118,000.
2.3.1.3 IT SUPPORT (FELTHAM)
e Liaison with OSD re Guardian Recovery at Theale is progressing. The final kit and
telecom links were installed during the reporting period allowing testing to
commence.
2.3.2 BUSINESS EFFECTIVENESS
© Preparations: for the: BSI audit are ongoing. Issues relating to “process
standards and modelling” have been resolved.
e Also underway is a process project to define the process thread: that starts
with the RMF and finishes when a software=change is distributed to the live
environment. Joint work with Development:highlighted that the-interactions
between CS, Development and OSD. needed clarification and validation.
2.3.3 STRATEGIC SERVICES UNIT
2.3.3.1 OCMS
e The first release 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 be completed in a semi-automated manner but this is not
critical to the success of the change business.
2.3.3.2 OPERATIONAL BUSINESS CHANGE
© The following tables show actual deliveries for August and firm orders for changes
up to the end of November.
Opening/Relocation/Refurbishment (Outlets)
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Month Total Actual Deliveries Actual Deliveries
Deliveries I Allowed Within Additional to Contract
Contract
August 39 14.05 22.95
Month Total I Forecast Deliveries Forecast Deliveries
Orders Allowed Within Additional to Contract
Contract
September 48 15.64 32.36
October 33 17.48 15.52
November 8 19.31 Not yet exceeded contract
Closures (Outlets)
Month Total Actual Deliveries Actual Deliveries
Deliveries I Allowed Within Additional to Contract
Contract
August 9 8.78 0.22
Month Total I Forecast Deliveries Forecast Deliveries
Orders Allowed Within Additional to Contract
Contract
September 2 9.78 Not yet exceeded contract
October 1 10.92 Not yet exceeded contract
November 0 12.07 ot yet exceeded contract
2.3.4 FIELD SERVICE MANAGEMENT
2.3.4.1
PROBLEM MANAGEMENT
The team is working. with the customer, the MSU, SS and BET to ensure all the
relevant processes and procedures are in place for their element of problem
management at an Outlet. This is not a huge task as much of it exists within the
current problem management documentation.
PON BSM is working with us to ensure the Territories buy-in to this process. They
believe their processes will be in place by 18" September. In the meantime PW has
gained agreement from BSM to move speedily with any urgent requests for site
visits we have now. To this end we have supplied BSM with a number of sites that
require more in-depth attention due to the high number of hardware and/or
software faults.
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2.3.4.2 MANAGER CARE
PON BSM is insisting that the programme be executed with joint visits. PW
expressed disappointment at the lack of visits coming through and suggested that
ICL Pathway put together its own visit schedule - this was declined. BSM responded
that they would put more energy into the programme but it was clear that the
number of visits they wish to do is nowhere near the number we envisage. The issue
of joint visits needs to be escalated within PON as clearly we have two different
agendas for doing these.
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Version: 1.0
Date: 13/09/2000
Quality & Risk Report
1. MONTHLY SUMMARY
° Security. Virtually all effort is still focused on implementation of KMS. Issues
are being addressed daily to maintain progress, and KMS is now processing keys
for Live Pilot.
° Risk Management. Overall Business Case risk exposure has changed little;
additional risk associated with SLA remedial actions and flat screen issues is
offset by reducing risk associated with CSR+ migration and training occupancy
(now in the budget . Business Continuity plans continue to make good progress.
. Quality. IS09001. There has been some slippage in the process update plans.
The establishment of the BMS site continues — target for version 1 is end
September, although it will-not be complete.
° Audit. The audit programme continues to plan. Significant ISO9001 non-
conformances have emerged and there is an increasing backlog of corrective
actions. These issues are being addresses at ISO Board and Process Review
Forums.
2 PROGRESS
2.1 RISK MANAGEMENT
e The Business Case Risk Register. The weighted total now stands at £23mn,
little change from July. The main changes are associated with:
e The training occupancy risk has occurred - £1.3mn is now in the
Implementation budget.
e Migration to CSR+ risk reduces as the plan is implemented and
achieved.
e A firmware upgrade required for the flat screens which will involve site
visits.
¢ Potential additional costs to alleviate SLA’s to meet an Acceptance
Incident and requirement.
e A risk.analysis workshop involving the main Implementation team was held
to-surface and analyse the variance in terms of cost and schedule risks to the
“tail” pre- and post-March 2001. The major risks identified included
availability of outlets due to the infrastructure programme, PON release of
outlets, suspends and readiness of mobile outlets. The main mitigations are
renegotiation of total number of outlets and contingency. A number of lower
tisks were also identified. These will be analysed for total impact and
reviewed in september.
e Consolidated risk register. Reviews have been held with the TDA,
Configuration Management and 4 if the Delivery Unit Managers.
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Business Continuity plans. Considerable progress has been made _to-rework
plans and Business Recovery team structures. Implementation of the plans
will begin when the DR site moves to Theale. An awareness programme has
been started and plans are being drawn up for staff briefings.
2.2 SYSTEM SECURITY
2.2.1 GENERAL
CP2292 et al (Anti-Virus software on the Live-Estate). A strategy paper is
nearly complete, which will give recommendations for the delivery of anti-
virus software to all platforms or indicate where technical resolution is
required:
DPA. Responsibilities under the DPA for ownership of data have been
agreed and Pathway's DPA registration is being amended accordingly. A
draft contract and Subject Access Request form has been. prepared.
Security documentation continues to be reviewed as part of the ISO 9001
plan.
Work is underway to obtain ListX status for Pathway.
2.2.2 CSR+
2.3
The KMS User Guide and associated key process documentation have been
baselined. Event handling procedures:have been finalised with SMC and will
be baselined following any outputs/issues during Live Pilot. Work ‘continues
on a small number of hangouts from the Plan-including event handling and
the preparation of KELs.
A great deal of effort this month has been focussed on getting KMS
operational. The KMS and Certification Authority workstations have been
configured and the KMS Confidence Test was successful. KMS is now
processing keys for Live Pilot.
Frank Fallon joined QRM to undertake the Key Manager role for KMS.
A secure test was undertaken on the live Siemens Metering code. This
proved that APS will produce transactions when using the live keys:
Network Security tools. A number of network vulnerability tools are being
evaluated following approval of the associated CP. Work is underway to
undertake a similar exercise in respect of policy compliance software.
QUALITY
ISO9001 Programme.
e Process’ Development update:
e Some slippage in process development plans has occurred, mainly due to
CSR-+ priorities.
e Completion of C&F processes is still proving difficult.
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e Development. The maintenance process DE/PRO/003 has slipped by 2
weeks. Interfaces, primarily to CS are being discussed. The interface with
CR still needs to be defined.
e Customer Services; target end September.
e Programme Office; Document Management Process update is under
review, due early September.
e Business Development and Customer Requirements will use the CSLC
processes as relevant for new business. There are potential issues
regarding maintenance and change management which are being
addressed.
e Implementation processes are in final stages of review, due early
September.
e Business Management System (BMS). The target is to issue: version 1 of the
site by the end of September. A considerable amount of information is still
needed from Directorates, including document listings, introductory
paragraphs, process usage. The site will only reflect what has been made
available, but will encourage awareness.
© Propel implementation.
e Stages 2 — 6 outputs are being reviewed in order to formalise a Pathway
relevant version of CSLC.
e Other Propel programmes are being reviewed, discussed to understand
the relevance to Pathway and timing of rollout.
2.4 AUDIT
e Internal audits:
e Commercial/Financial Audit has been partially completed and preliminary
findings reviewed with Tony Oppenheim & Graham Wingrove. The
report will be completed in September.
e Supplier Management - Training Audit has been completed, the report
approved and actions agreed.
e Data Centres Audit is being followed up to ensure that OSD / Group Audit
are dealing with the recommendations from the audit report.
e Internal Audit Committée. The inaugural mecting is 28" September. It will
cover a summary of audits conducted year to date, key findings and emerging
trends, and recommendations for coverage by the next section of the audit
programme.
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3. ISSUES
. Issues concerning the performance of CAWs under volume conditions are being
addressed by KMS Development.
e A number of residual build issues remain on the KMS workstations. These are
being-resolved during Live Pilot.
° There are increasing demands by PON demands for message store information
to support investigations. The situation is being monitored.
° Significant IS09001 non-conformances are emerging. There is difficulty with
determining compliance (or otherwise) in areas where there is little
documentation.
° Greater co-ordination.is needed between Quality / process and Internal Audit.
° Increasing backlog of corrective actions, This is not being helped by the delay to
the BSi visit. The sooner a date is agreed and communicated, the better.
. There needs to be end-to-end Configuration Management rather than a
fragmented process that separates Document Management from Software
Configuration Management (SCM). Tracing original requirements to released
code is rendered problematic by the current approach and leads: to. considerable
risk.
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jIoday
jusuidopaAsg ==
Sssoulsng F==
ICL Pathway
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Business Development Report Ref: PA/REP/0S3
Version: 1.0
Date: 13/09/2000
Business Development Report
SUMMARY
Overall, a slow month with most people on holidays at some stage. However,
progress is being made albeit at a snail’s pace. This is influenced by external (to
Post Office) issues such as the PIU report and their need to urgently respond.
Incremental new business revenue to date is £1.3 million.
Network Banking:
ERA:
The Proof of Concept exercise completed with the issuing of a
comprehensive report to Post Office detailing all activities undertaken, and
conclusions arising. We had a very successful presentation and
demonstration to Post Office staff on 23“ Aug. The only downside was the
obvious disconnect between the Network Banking staff and the Post Office
network staff. One side wants a web approach while the other does not see
any bénefit to such an approach. Post Office have now called in an external
consultant to advise them. My belief is that this issue will be sorted more by
the economic and commercial reality in dealing with the banks. No banks
have yet signed up to Network Banking.
The ITTs for the Network Banking engine are being evaluated. ICL’s
response was not favourably commented on. The decision on the engine
supplier has been delayed until end September. This is partially caused by
having no bank signed up. However, the other outstanding issue is whether
or not they will need a banking engine at all.
There has been increasing pressure on Post Office to come up with a
solution to thé Universal Bank. The banks have responded negatively to any
suggesting that'they fund it. If government do so, there may a claim that it
will be anti competition rules within the EU. Post Office have responded to
the.PIU report giving their picture of the business case which at present does
not stand up. Discussions continue.
The ERA blueprint due for end August has been produced and presented to
the stakeHolders within Post Office. The team have now been asked to
ensure thar the blueprint is PIU conformant and also conforms with the Post
Office IS/IT strategy. This will certainly spell delay in.getting approval to the
next piece of consultancy work. We are currently planning a resource uplift
on ERA of up to 10 people.
ERA will now be reviewed on a fortnightly basis through the newly set up
ERA project board.
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ICL Pathway Business Development Report Ref: PA/REP/O53
Version: 1.0
Date: 13/09/2000
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Government Gateway:
e Responses were submitted to Post Office to help them respond to the PIU
report. Several options were proposed and there is still an aim to implement
government gateway pilots in Spring next year.
Marketing Communications:
e No approval forthcoming from Post Office for positive communications.
They are concerned that any positives may be negated by any problems with
CSR+. We must continue to press for clearance to be more positive but it
runs contrary to their natural way.
NAO Report:
e The NAO report has finally seen the light of day. It was published on 18"
August, received lots of media coverage on the 18", was covered in more
detail in Computing arid Computer. Weekly and has not been heard of since.
Hopefully, this-status will remain.
2. PROGRESS
Business Development:
e EFTPOS: Andy Radkashas now been given-responsibility. for EFTP.OS: He is
continuing:to look at the business. case. This is covering old:ground. for the
umpteenth time, as they know they will have great difficulty in coming up
with a-positive business case. However customer demand says that they must
do it. We have met with Radka and proposed. ways forward.
e Mails: Escher have-demonstrated their Mails product to a set of Post Office
staff. This was received well and work-continues to-evaluate implementation
and integration options.
e Service Improvements: Post Office have identified a number of potential
improvements to the existing system. We have now proposed a workshop to
work these through and ensure that we can respond with estimates of
necessary work.
Marketing Communications
e We are providing systems for the three upcoming party conferences. These
will be in ‘live’ post offices at the conferences.
e We did achieve some level of.communication for the 10,000" post office.
© Work continues with.a number of our subcontractors to build case studies
around the Pathway project. Each of these needs approval from the Post
Office.
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ICL Pathway Business Development Report Refs. PA/REP/OS3
Version: 1.0
Date: 13/09/2000
¢ There was quite a lot of media interest in the NAO report. Positive messages
were communicated to all parties with firm updates on the current status of
the-project.
International
e Approval for another tranche of work has been received from Deutsche Post.
This will take place between now and Christmas. Low value but could lead
to.more later.
e Namibia system is now rolled out and working successfully. We are
discussing with our colleagues in South Africa the possibility of a marketing
deal covering SADC, the Southern Africa Developing Countries. This could
be based on the Namibian system.
3 ISSUES
None
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Implementation
Report
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ICL Pathway Implementation Report Ref: PA/REP/OS3
Version: 1.0,
Date: _ 13/09/2000
Implementation Report
1 MONTHLY SUMMARY
A total of 11,289 Post Office outlets have had the Horizon system installed, as of close
of business 1* September 2000. This represents 62% of the current agreed number of
open outlets. The third contract rollout milestone (10,680 outlets by 1* November -
2000) was achieved ahead of schedule on 18" August 2000. In general, achievements
in the installation programme continue to exceed the planned levels of activity on a
weekly and cumulative basis although we fell below plan for two weeks in the last
period (see section4).
The overall number of open Post Office outlets (installed or to be installed) has
increased from 18,147 to 18,164. This is the net result from a combination of the
continuing trend of Post Office outlet closures and 40 outlets which have been
“returned” to the programme. The numbers of open outlets are expected to reduce by
a further 124 following discussions with Post Office and subject to confirmation. The
number of outlets yet to enter the programme is now 13, not including mobiles. There
are.88 outlets that have been released by PONU but have not been entered into the
programme. These are outlets designated for the mobile solution.
2 PROGRESS
Activity in the Infrastructure programme continues to make good progress and the
programme will be completed during September, with the exception of mobile outlets
where preparation activity will continue until the end of the year. Outlets are only
being accepted into the Infrastructure programme. now if they are fully compliant, can
be accommodated within a planned installation unit and are made available prior to
15" September.
Outlets that are non-compliant or space-only compliant must be introduced into the
programme through Operational Business Change (OBC) and charged accordingly. It
is anticipated that the existing infrastructure team will be used to manage the OBC
infrastructure activity, on behalf of Pathway Customer Services. An outline proposal
for managing OBC infrastructure activity has been discussed with the Post Office and
will be reviewed with during October. It is anticipated that the earliest any outlets will
be released for OBC infrastructure activity will be mid-October.
Surveys of sites designated for the satellite solution commenced from 24" July. The
trend of satellite sites surveyed being re-assessed as ISDN solution sites has not
continued and the quantities of anticipated satellite solution sites remains in accordance
with the previous estimates, circa 500.
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ICL Pathway Implementation Report Ref: PA/REP/053
Version: 1.0
Date: 13/09/2000
Pre-Survey calls for mobile outlets are due to start from week commencing 11"
September. This call sets the appointment for the outlet survey. Mobile installations
are currently scheduled, following surveys and preparations, to begin in late January
2001.
ACTIVITY ANGE ULATIVE
Number of Open Post Office Outlets +17 18,164
INFRASTRUCTURE PROGRAMME
Sites Entered Into the Programme +7 18,057
Sites Remaining to be Surveyed -266 408
Sites Remaining to be Prepared -846 645
INSTALLATION PROGRAMME
Sites Migrated and Live 11,289
Percentage of Open Sites Live ; 62%
Counters Live 26,887
The re-scheduling of the 20 new installation CSR+ outlets for live pilot will result in a
higher than normal number of outlets being planned for installation in the week
commencing 4" September (336 planned). Live pilot installations have commenced
and have so far been successful. These will be completed by 12 September. The
quantity has been reduced to 19 following the abort of one of the designated sites. No
further aborts of live pilot sites are anticipated.
Rollout‘of the CSR+ release will be.intercepted into the main rollout programme to all
new outlets from 23" October 2000.
Towards the end of October 2000, the installation programme will begin its second
sweep of the RNM clusters, performing installations at sites which were unavailable in
the first pass or whose installations were aborted. Detailed planning is also underway
for the latter stages of rollout where the volume of outlets is considerably smaller and
the weekly profile consequently tails off.
Given that the rollout is due to be 95% complete by mid-March and al] but a few Post
Office outlets will have been installed by June 2001, planning has started for the
closedown of Implementation. This includes the release of staff, managing the closure
of sub-contracts, ensuring the correct quantities of equipment are available to support
the tail and handing over responsibility for remaining installations to Customer
Services. A draft strategy is due for review during early October 2000.
3 CURRENT CRITICAL PROBLEMS
As previously reported, there is a serious risk to the programme that course occupancy
levels are such that PONU will require to purchase more than the contracted total
number of training courses. It is likely that they will claim ICL. are responsible for a
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Version: 1.0
Date: 13/09/2000
proportion of this deficit due to failures in scheduling and aborted installations. A
number of measures to improve course occupancy have been jointly agreed with PONU
and introduced in order to reduce the size of the predicted deficit. These include:
e Increasing the maximum potential course-occupancy
e Trading the value of other training courses where there is a forecast surplus for
additional training courses of the type required
e Relaxing scheduling constraints to.offer increased options to postmasters, thereby
improving potential occupancy
Currently, forecasting predictions indicate the total value of additional courses required
will be just over £1M, although this is based on simulations of scheduling efficiency
and may increase or decrease by a considerable percentage. Improvements in scenario
modelling are progressing.
Preparation for the inevitable commercial debate with PONU over responsibility is
underway. It is considered that Pathway can contain the appropriate level of
responsibility within the current financial forecast:
The deficit is forecast to begin in November 2000 and therefore, until responsibility
has been agreed there is a need to ensure courses are delivered beyond the point,at
which the deficit will commence. Activity is underway to determine a mechanism
which will ensure training courses continue to be: delivered whilst the commercial
debate takes place over responsibility.
The programme for mobile solution outlets is continuing to gather pace and tooled =< te
variants of the mobile system are currently in manufacture. Delays in the #
commencement of the manufacturing programme, caused by delays in approving the
solution design, have ‘impacted the commencement of mobile installations. There are is
also concerns over the unit weight of the mobile casing and one aspect of the mobile
system operation. These may create further delays to the commencement of mobile
installations. The current planned start date is the end of January 2001 although this is
likely to move into February.
4 ISSUES
The installation programme fell below the planned level of 306 installations in two
consecutive weeks (302 outlets in week commencing 14" August and 301 outlets in
weck commencing 21" August). In the first of these weeks this was as the result of a
high level of ISDN failures‘on installation day. This is unacceptable to Pathway and we
are in dialogue with. the Energis to ensure this is not-repeated. This low level of ISDN
performance has not been repeated since, although Pathway has yet to conclude
rectification action with the supplier. In the second’ week, performance below planned
levels was expected following the re-planning of the CSR+ live pilot. An additional 5
outlets were lost on the Friday of that week as a result of a data centre server issue. An
investigation of the issue is anticipated to be completed shortly. With the exception of
the two weeks mentioned above, achievements in the installation programme continue
to exceed the planned levels on a weekly and cumulative basis.
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ICL Pathway Implementation Report Ref: PA/REP/053
Version: 1.0
Date: 13/09/2000
Training invitation timeliness continues to be monitored jointly by Pathway and PONU
through telephone sampling to ensure the improved level of achievement continues.
All mainstream training events are still consistently exceeding the target 94% of invites
arriving on time. The less critical UAE and Preview Events still continue to exhibit
some low levels of appointment timeliness although it is: believed PONU and Pathway
both.have issues, which are contributing’to this. Efforts on both sides are continuing to
address and the issues in order to achieve the necessary improvement. Further
enhancements of the KPL TPAS system are due to be introduced from 11" September
and it is expected this will assist in performance improvements. Timeliness of
invitations to UAE and Preview events have been deteriorating in recent weeks and
KnowledgePool are being targeted to reverse this trend.
Processes for the survey, preparation and installation of sites designated for satellite
installation have been established and the surveys are underway. Surveys conducted to
date have identified some areas of work where additional installation costs will be
incurred. These include additional preparation activity for the siting of office
components of the satellite solutiori and the costs of an unexpectedly high percentage
of sites requiring non-standard dish installations.
5 COSTS
Additional satellite. installation. costs are being factored into the Implementation
forecast to completion with the aim of containing them within the current forecast,
although this has yet to be confirmed.
The costs associated with providing the predicted number. of ‘training. courses: beyond
the contracted. requirement are included within the Implementation forecast: This-
ensures that the forecast contains the worst case situation until the commercial debate
with PONU over responsibility for thé cause of extra courses being required has been
concluded. It is considered that this will result in a reduction in the forecast
Despite the forecast including costs for all of the predicted courses, the Implementation
August forecast remains within budget.
Implementation has a task recovery target of £1.2M and has to date achieved £500K.
Including recovery of additional training costs from PONU and KPL and negating a
significant claim for weekly shortfall charges from ntl: there.is adequate opportunity to
achieve the remaining cost down target.
The weighted impact value of Implementation business case risks continues to fall, as
expected.
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Organisation
& Personnel
Report
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ICL Pathway Organisation & Personnel Report Ref: PA/REP/OS3
Version: 1.0
Date: 13/09/2000
Organisation & Personnel. Report
1 MONTHLY SUMMARY
Work progressed on the transition plan for the Patliway Implementation team. There is
now an agreed destination for all members of the team when their roles in Pathway are
at an end. Recruitment activity to fill outstanding vacancies continued and work was
undertaken to help ensure the headcount budget (numbers and mix) is met.
2 PROGRESS
° Appointments in August:
External Recruits
Transfers In
E-Apps
LINKwise
Freelance
Fixed Term Contracts
Adecco Temps
TOTAL:
onounco
Re
°
. Known Joiners
External Recruits
Transfers In
e-Apps
LINKwise
Freelance
Fixed Term Contracts
Adecco Temps
TOTAL:
ecoocooocd
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ICL Pathway Organisation & Personnel Report Ref: PA/REP/OS3
Version: 1.0
Date; 13/09/2000.
° August Leavers:
Permanent Staff 2
Freelance 11
Transfers Out 0
Linkwise assignee 0
e-Apps 1
Fixed term Contracts
Adecco Temps
TOTAL: 28
Known Leavers
Permanent Staff
Freelance
Transfers Out
Linkwise assignee
e-Apps
Fixed term Contracts
Adecco Temps
TOTAL:
Neoona
mw
nN
° Draft PVP objectives were received for 96% of Pathway employees by the
deadline. These were reviewed by the Pathway Managing Director and are now
being signed off by managers and employees. The current percentage of signed .
objectives which have now been received is 59% and those outstanding are
being vigorously persued.
° ICL issued a clarification to the operation of the EIP scheme for this year. This
was communicated by letter to all eligible employees in Pathway.
° Work associated with the transition of the Pathway Implementation Team to e-
Apps continued. A transition plan and a communications plan were produced
and reviewed. It was proposed to transfer the whole of the Pathway team except
for administration staff to e-Applications who will then provide people on
assignment as required. This is, however , dependent on acceptable financial and
operational arrangements being agreed berween Pathway, e-Applications and
Large Projects. These have to cover not only the arrangements for work
associated with the roll-out into the Post Office estate but also the method of
dealing with Operational Business Change in the Post Office estate and also the
roll-out programmes associated with the PFI’s in Large Projects.
Until such time as these arrangements have been agreed employees who have
finished their-work on the Pathway Roll-Out will be-transferred on an individual
basis to e-Applications or other appropriate destinations, depending on their
individual circumstances. All employees were. reviewed with e-Applications and
agreement reached on who possessed the necessary skill sets to be suitable for
assignment working.
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ICL Pathway Organisation & Personnel Report PAJREP/053
1.0
13/09/2000
° 10 appointments were made in August. The number of live vacant requirements
has increased from 19 at the end of July to 20 at the end of July. Customer
Service require key Technical Support resource to replace employees who have
resigned. External recruitment is being undertaken but there is proving to be a
shortage of suitable candidates. Therefore the requirement has also been
referred to ITCS.
e The deputy to the Implementation Project Director has resigned from the
company and replacing him is a priority recruitment task.
° A Health and Safety incident occurred earlier in the Roll-Out programme.at the
Partrington Post Office. A thorough investigation was carried out at the time
and appropriate measures were taken as a result. A solicitor’s letter has now
been received in respect of a potential claim for damages on behalf of the sub-
postmistress. This has been passed to ICL’s insurers who will deal with the
claim.
° A follow up to the Health and Safety audit of the Pathway laboratories in
BRAO1 was undertaken. The audit went very well and showed that substantial
progress had been made with the rectification programme which has been
undertaken as a result of the audit.
° OMR’s were undertaken in the month in respect of the Quality and Risk a
Management Department and also a follow up to check on progress following i
the recent OMR for the Programme Office. In addition, preliminary discussions -
took place on the best way to organise the delivery streams within the
Development unit. This is to ensure the organisation structure meets the ~“
organisations business requirements, taking into account the need to consume
work arising from Network Banking and ERA.
° The headcount plan for Development was reviewed. The aim was to understand
the risks associated with the plan and to put in place actions to address the risks
identified. [t was agreed to identify 20 roles currently filled by freelancers who
could be replaced by ICL employees and to undertake an aggressive campaign to
identify suitable replacements and bring them in to replace the existing
contractors.
It was also agreed to identify the key people required to allow us to consume the
new work which is currently in the pipeline or is anticipated. If they are
contractors due to be released in the near future a decision will be taken as to
whether it is desirable/financially possible to retain them on contract so they are
available when they are needed to undertake the new work. The financial costs
have to be balanced against the rarity of each individuals skills and hence the
difficulty of finding a replacement within the necessary time frame.
It was agreed to maintain close communications with Large Projects so that
people Pathway is releasing who may be of value are highlighted to Large
Projects as becoming available.
° Review meetings took place with e-Applications and with ITCS to deal with
various operational issues and to ensure that procedures and relationships were
functioning effectively. Both meetings were extremely positive.
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ee)
SFO 180g
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ICL Pathway Post Office Client Report Ref: PA/REP/053
Version: 1.0
Date: _ 13/09/2000
The Post Office - Client Director’s Report
1 MONTHLY SUMMARY
The OneStopShop contract (MC) is back on track.
Post Office have issued the long awaited ITT for eBusiness Services.
QOneStopShop
Following PO's cancellation in July of new orders owing to ICL MC
warehousing/delivery issues, MC have now been restored by PO for receipt of new
orders. We still expect PO to start the selection process for a single supplier under
OneStopShop soon..
SMPP
The client team has facilitated meetings between OSD and relevant PO managers to
encourage the agreement of a trial/interim Peregrine-based asset management service.
WDM
This ParcelForce Worldwide Despatch Manager contract was a_ spinoff of
OneStopShop, which has:caused problems in OSD and MC for over 12 months. With
MC and OSD failing to meet SLAs the customer is despairing of ICL. New OSD
Account Manager Tom Lane has promised to get a grip.
EGovernment
Following our input to PO, in support of their response to the PIU report, PO have
now asked IBM, ICL and Andersens Consulting if they wish to partner in some/all of
the PO eGovt initiatives. We await to hear the process PO intend to select partner(s).
The key (hard) part will be to establish exactly what ICL is expected to do, and to
evaluate the associated risk/reward.
EBusiness
The ITT for a "management of change and eServices partner" was issued 7 September
with a response date of 29" September. PO are seeking to select a panel of suppliers
covering SI, technologies, software development et al. Work Packages will then be
competed amongst the suppliers. We are working with eInnovation to qualify this
opportunity.
Network Banking
The ICL response to the ITT, based on Lifestyle, was submitted on time and_a host of
follow-up questions are being dealt with. Bids were received from IBM, ICL, UNISYS
and Brokat-Sanchez. Until PO sign up the banks, it is unlikely this ITT will progress
rapidly.
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