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ICL Pathway
Bringing Monthly
Technology Progress
to Post Office Report
Counters ICL
October 2000 ‘MAIN
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ICL Pathway Monthly Progress Report
Contents:
cc
Managing Director’s Summary
ee Development Report
aca
= . . .
<= Commercial & Financial Report
@ Customer Requirements Report
= Customer Service Report
oO) Quality & Risk Report
7 Business Development Report
= Implementation Report
=
=
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Organisation & Personnel Report
Post Office Client Report
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ICL Pathway Programme Monthly Report Ref: PA/REP/OSS
Version: 1.0
Date: 08/11/2000
Document Title: [CL Pathway Monthly Report - October 2000
Associated Documents:
Reference Vers Date Title Source
i) PM/PRO/002 1.0 26/09/96 —- Pathway Programme - Project
Planning, Reporting and Control
Approval Authorities:
Name Position Signature Date
M. Stares Managing Director
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ICL Pathway Development Report Ref: PA/REP/OSS
Version: 1.0
Date: 08/11/2000
Managing Director’s Summary
1 PROGRESS AND ISSUES
1.1. BUSINESS PLAN
We are ahead of plan on revenue, costs, cash and headcount and we over achieved our
half-year profit budget by £1.3M. We achieved the November £90M milestone
payment 2.months ahead of plan. Forecasts for full year revenue, costs, profit, cash and
headcount are.all either on or ahead of budget. Risks are well understood. We are on
schedule for the next.£90M milestone in March 01.
After a difficult few weeks on CSR+ migration we have now achieved customer
acceptance and are rolling out the product for completion in early December, ahead of
plan. This has triggered payment of the first £60M retention starting in January 2001
at £1.25M per month. The quality of CSR+ appears robust (as evidenced by help desk
calls).
The long awaited PIU report on the future of the Post Office Network is supportive of
new initiatives such as Banking including the Social Bank and of using the post offices
as e-gateways into Government services (GGP). The report acknowledges the
investment in Horizon as a platform for developing PO business.
The Business Plan has a clear set of metrics (cost, task, risk etc) for next year and draft
budgets are already with the line units to analyse how we can achieve the “task” and
“cost down” requirements, with or without the revenue and margin associated with
new business. This will probably result in a revised 2001/02 plan with a reduced
revenue profile but lower risk to drive out the.same profit.
There.are the first signs that.PO are considering the implications of contract “renewal”
as théy go into their own business planning cycle although serious discussions are
unlikely before 2002.
1.2 PROGRESS AND ISSUES
Good progress is still being made. CSR+ migration has proved problematic but
technical difficulties have now been résolved. and we are into mass rollout phase (600
Post Offices per- night). We have managed the fuel crisis with minimal impact on
rollout and service levels. Our systems and processes are holding up well as we
continue to increase the number of live post offices and we have now entered a cost
down phase which is critical to the business plan.
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Date: 08/11/2000
Rollout is on track. We have migrated over 13500 post offices (>75% of the estate). As
we enter the second cycle of rollout the planned weekly number has reduced below
300. We are about a week ahead of plan. We have trained in excess of 45000 Post
Office staff. Solutions for Satellite and. Mobile technology have now been agreed with
PO. There is a particular issue with Training Occupancy where the number of funded
courses is insufficient and a further £1-1.5M will be required. This is being negotiated
with PO and responsibility will inevitably be shared. This is already assumed in the full
year forecast.
Weekly service performance remains a key issue and although we are back on track and
demonstrating consistent performance we are missing some of the very challenging
SLA’s: As expected PO have now placed us in formal Breach of Contract (they can do
this if we miss any three quarters in 24 months) although they currently appear to be
genuinely seeking contractual compliance rather than financial recompense. A meeting
is fixed for mid November with the customer to try and finalise a way ahead on this.
My concern is that we have breach and termination hanging over us on an ongoing
basis. Also that we establish a methodology that avoids the withholding of our second
£60M retention by PO from July 2001.
Headcount management remains a CSF and is getting considerable attention. We
reduced by over 70 heads in September and October and the downward trend
continues through the rest of this year. We will finish the year with 150 less people
than we started with. We have now entered a vulnerable phase where we are highly
dependent on key skills and motivation but at the same time are in a heavy cost down
program, particularly amongst freelance staff. Freelance headcount is planned to
reduce by 100 in the year. We are also in a fluid scenario regarding new business
opportunities that makes resource planning very difficult.
1.3. NEW BUSINESS
The outlook for this years incremental revenue (£3M target) has deteriorated as it
becomes clear that PO are in some disarray on their strategy for developing the post
office business. We are still engaged in joint working groups on Network Banking and
ERA.
Progress on significant e-commerce initiatives proves difficult with lack of momentum
in the PO. We are responding to a European Journal enquiry for potential e.commerce
suppliers but this would simply place us in a basket of suppliers for future work.
Post: Office has initially selected CGEY as their preferred supplier of GGP and we
intend to engage with them to evaluate opportunities to utilise Horizon during this
pilot phase.
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Version: 1.0
Date: 08/11/2000
1.3.1 NETWORK BANKING
Post Office has been struggling with its business case with conflicting pressures from
government, the banks and their own objectives and also internal PO differences of
opinion on the right way forward. Pathway is the nominated contractor for the post
office counter and IBM has been selected as the Banking Engine supplier to provide
multi channel capability. There now appears to be more momentum on resolving the
way ahead and we are engaged on defining new chargeable work packages to home in
oni the technical solution and functional requirements. This remains a key business
opportunity anda CSF.
1.3.2 RE-ENGINEERING/ERA
As with Network Banking, this initiative has run into some difficulty as Post Office plan
their investment priorities. There are difficult decisions facing PO as they balance cost
reduction requirements with the investment needs of ERA. They have authorised
further spend to extend the consultancy contract that places us at the heart of this
initiative. However, indications are that there will.be a three-month minimum delay as
Post Office get their own plans and priorities understood. PO has asked about our
willingness to help fund ERA, we have initially taken the stance that any discussion ‘
would need to be as part of a contract extension agreement.
1.4 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 V Ref: PAIRET/OSS
ersion: 1.
Date: __ 08/11/2000
Development Report
1 MONTHLY SUMMARY
° CSR+ continues to perform well resulting in a lower than expected support
load.
° The 600 counter migration planned to take place during the 9 — 11" October
and the 1500 between 22" - 27" October were a success. The number of
failures occurring is within the targets set by the.Programme:and we should now
be able to complete the large majority of outlets before Christmas 2000 as
planned.
° Even with.a population of approximately 3000 outlets and growing, we are not
seeing an increase in the number of software incidents reported.
° The ‘Maintenance Release (M1)’ testing is proceeding according to plan
although the third cycle has been delayed by one day due to communications
network problems. We expect to recover this. We number of changes approved
for this release is being very closely controlled to ensure that we do not cause
any destabilisation.
2 PROGRESS
° The Data Centres now appear to have settled down. The issues surrounding
Automatic Payments (APS) are either resolved or actions in place to prevent
them occurring. The only remaining area of concern is related to the handling of
rejected files/records from TPS and discussions with POCL are ongoing.
. The planned counter migrations designed to demonstrate. our volume
capabilities were very successful, achieving a failure rate less than 10% per night
on average. This resulted in CSR+ gaining Release Authority Board (RAB)
approval on 24" October.
° There have been one or two issues encountered around the key management
service (KMS) and the application (KMA). The majority of these are known
problems but we were unable to get them applied to the live system before the
full migration commenced. This is now receiving close management attention.
° The software itself continues to perform very well with very few
errors/problems being reported.
. The customer change request to re-introduce the Quantum Smart Card for
British Gas metering and payment has been received and impacted. This service
should now be available to customers in early January 2001.
. Implementation of the first satellite offices has not gone well. The engineers are
entering the incorrect communication address into the personal earth station
(PES) device installed in the outlets. This is being investigated to identify the
cause and modify the end to end process accordingly.
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Date: 08/11/2000
° The Maintenance Release (M1) has completed the third cycle of system testing
and the second of five cycles of conformance testing. The main Business
Integration test script has been reviewed by Horizon and approved. 85% of the
B&TC scripts were executed, of which 84% passed. 87 fixes were successfully
closed, out of the 96 delivered. We encountered some regression and this is
being investigated to establish if there is an underlying issue. The next cycle of
testing will include a large number of the approved change proposals and these
may cause a degree of destabilisation, which needs to be carefully monitored.
. Delays in the delivery of thé changes to Tivoli which support the interim
solution for OCMS caused a knock-on impact onto the full solution.
Consequently, Customer Services have withdrawn their request for an interim
version in order to maintain the schedule for the full solution.
° We are now in a position to deliver Business Objects (SLAM replacement) into
the Data Warchouse with M1, earlier-than planned.
° Preparation for the ISO pre-assessment planned for 14"/15" November 2000 is
nearing completion. All the development activities should be completed on
schedule.
3 COST DOWN
. No new initiatives introduced this month.
4 CURRENT CRITICAL PROBLEMS
. The problems surrounding KMS & KMA during counter migration must be
resolved very quickly otherwise it will seriously impact the roll-out schedule.
° The issue effecting the installation of the satellite option must be resolved
urgently if we are to maintain the roll-out schedule.
5 ISSUES
. ‘We must implement the solutions which resolve the failure to meet service level
agreements for file delivery to POCL at the earliest possible opportunity.
° The number of outbound calls in the live system is unacceptably high. The TDA
have:recommended a number of mitigating actions and these are in the process
of being implemented.
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/OSS
Version: 1.0
Date: 08/11/2000
Commercial & Financial Report
1 MONTHLY SUMMARY
° Financial ‘performance to end October has continued to track better than
Plan, Budget and forecast.
° Achievement.of CSR+ RAB means that we are. now assured payment of the
first £60m retention starting January 2001 at £1.25m per month. This is very
good news, as is the fact that migration is now going to plan and that the
software-quality appears robust (as evidenced by help desk call rates).
. Work continues on rectification plans and inter-actions with the customer to
resolve the breach condition on SLA performance. A combination of product
improvements to help diagnose comms breaks etc. and operational process
improvements by OSD will reduce the size of the problem but not eliminate it
entirely. We are working to agree-a method of ‘carving out’ exceptions which
will not count towards the SLA misses. The trick will be to agree definitions
of what can be carved out (POCL fault, no fault, ‘semi’ force majeure,
learning curve subject to remedial action, etc.) so that we are not subject to
on-going subjective POCL approval or refusal to carve out case by case.
Target is to reach agreement at the Dave Miller meeting on 15" November. If
we fail to agree, we have identified a recent High Court case law precedent
which may help us push back on the 100% targets as disproportionate to the
business impacts.
° Training course occupancy remains to be resolved, but after two long
meetings with POCL, I am reasonably confident we can do so within Forecast
and Plan. A solution is emerging which involves a package of measures and an
equitable sharing of the cost over-run, with mutual incentives to control costs
from now to the end of roll out. A number of efficiency measures have
already been approved by POCL. The anecdotal evidence suggests KPL might
have done better (too many course with just one attendee), and if this is borne
out by the facts we will be pursuing them for claw back of costs.
. We have invoked Masons to write to ntl: to knock them back from their
£800k claim for standby charges. We feel strongly that their claim should be
more like £250k. Our action may provoke some reaction because ntl: are a
strategic customer.
° We will also be writing to Energis to claim back costs which have resulted
from what we assert were their breaches of contract with respect to ISDN line
installations.
° We have resolved with POCL to our satisfaction the redefinition of the Roll
Out Part A/ Part B split (CCN655a) in the light of reducing outlet numbers
and temporary suspension of installations by POCL.
. The CCN pipeline is at an all time low, with turnaround timeliness generally
within target on both sides.
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Version: 1.0
Date: 08/11/2000
° New Business remains a challenge. The concern remains ‘planning blight’ in
relation to Horizon’s long term strategic role {is it or isn’t it?), with the MFUs
challenging PON’s single supplier role and seeking to remove dependencies
on Horizon to achieve their long terms business goals. PON are also
signalling that to do significant new work on Horizon, they are looking for
financing help from ICL (aka PFI). Dealing with this may represent an
opportunity to break the current unsatisfactory mould but it also represents a
potential blocker.
° The immediate opportunities are to secure the programme management of
Network Banking end to end and to.re-target ERA by focusing. on the biggest
payback elements only and pushing back scope creep: both involve occupying
new high ground.
° There has been progress, with agreement imminent, on the definition of
which software related incidents are subject to time to fix remedies
(significant cost implications under control).
e Transaction time SLAs remain an issue, although after a lot of work it now
looks no worse than it did at CSR: we still need to agree new methodology
with POCL to be sure of avoiding a possible breach condition which could
prevent our collecting the second £60m-retention.
. TIP reporting (specifically solving POCL’s client settlement problems) has
moved forward, with general agreement on what needs to be done on both
sides. This was successfully de-coupled from CSR+ RAB. There may still be
an argument over who pays.
. Departmental Budgets for 2001/02 have been reviewed again and are
converging on where we need to be. A lot of work is going into resource
planning, cost baselining, risk reduction, task allocation, and estimating the
amount of new business we should plan on. We need to go through one or
two more rounds to finally agree all of these.
. Meanwhile, based on latest new business thinking, we shall probably submit a
lower revenue plan for next year than thatsubmitted last month as part of the
5 year plan: we need to show a lower risk profile so that we can drive out the
same profit.
. Propel and OPA/ Oracle Gold Build are not going to meet our immediate
business needs: if they happen, we are now looking at 12 months away for
both, Interim solutions are now well advanced to plug the gap and reduce
dependency. We remain actively involved in trying to shape both.
. Work on the DTI audit of the £8m interim government funding of April/May
last year is in train.
2 PROGRESS
° CSR+ product quality appears from early life experience to be good and the
migration problems have been resolved.
. Customer attitude - professional and supportive approach to RAB and
reasonable approach to SLA and training (so far)
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Version: 1.0
Date: 08/11/2000
. Some signs that NBU is moving our way a bit, although PON continues to
appear unable to push things through: Government Unit’s attitude unclear
(we lost GGP although logically we will be invited to work with CGE&Y
later)
° SLA rectification — cost, second retention and another reason for POCL not
to make new commitments on Horizon
e New business — continued difficulties in POCL decision making and
commitment, added to which they have now declared that they don’t have
any investment moneys.
4 ISSUES
° As risks above.
5 FINANCIAL PERFORMANCE
See below for Financial Summary and Risks and Opportunities Report
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Ref: PA/REP/OSS
Version: 1.0
Date: 08/11/2000
ICL PATHWAY FINANCIAL SUMMARY
OCTOBER 2000
Month of October 2000
Year to Date (7 Months)
Varnce vs. Varice vs.
Actual I Forecast I Forecast Actual I Budget I Budget
Rollout Key Metrics (Revenue Drivers):
Outlets installed and migrated:~
During month (4 weeks) / YTD 1,129] 1,071 58 9,063 3,755] 308
Acend of month (27/10/00) 13,658I 13,600 538 13,658] 13,350} 308
‘At 31 March 2001
Forecast] Budget I Variance
Ac31 March 2001 17,650] 17,910 (260)
Month of October 2000 Year to Date (7 Months)
Varnce vs. Varince vs
(Values in £000s) Acual I Forecast I Forecast Actual I Budger I Budget
Revenue:-
Rollout Miléstone Accruals 13,755] 12,521 1,234] I 147,106] 142,949 4,157]
Implementation Contributions 605 s12I 93 3,475 2,876 599]
First Availability Fee
CCNs (incl. New Business) 5 48 (33) 845 852 (a)
OBC 66) 26I 40] 180] 226I (46)
Other Revenue 28 15 13
Total Revenue 14,431] 13,107 1,324] I _i91,634. 146,918} 716
Cash Costs 10,773 13,240 2,467 81,390] 88,376 6,986
Interest Costs 801 1,323] $22] 4,828! 5,872I 1,044]
Profit Recognised 1,587 1,442 145 16,675I 15,694 381
11.0%] 11.09%] 71,096] 10.68%
Fixed Asset Additions 2,690 5,693 3,003 29,824] 31,740) 1,916
Closing Cash/(Borrowings: HIGHLIGHTS:
Revenue ahead driven by combination of rollout
Cash at Bank 64,403] 59,575 4,828] [performance and higher unit accrual rate
Asset Co Borrowings (#4,000)] (88,000) 4,000}
Total Net Borrowings (19,597)I (28,425) 8,828] ICosts lower than forecast across all main depts
land cost cacegories, particularly headcount related
lwhere high recent accruals have'now unwound
Headcount:- Acual I Forecast I Budget
Permanent/Shared Service 202 201 233] [Borrowings far lower than forecast due to higher
Freelancer 157] 162I 150] [creditor levels caused by (legitimate) delays in
ICL Contractors 134) 134 117] Jpaying certain stippliers including Energis, atl:
Temps/ITs 19 7 ul
TOTAL HEADS 312 314 S11] [Headcount reductions in line with forecast/budget
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ICL Pathway Commercial & Financial Report Ref: PA/REP/OSS
Version: 1.0
Date: _ 08/11/2000
ICL Pathway As at: November 7, 2000
Selected Permutations of Profit Risk and Opportunity (Total Year - 2000/01)
(not exhaustive)
New Business Revenue Shortfall £1m
New Business Revenue Shortfall £0.75m
New Business Revenue Shortfall £0.5m
New Business Revenue on Forecast
Rollout Shortfall: 750 outlets
Rollout Shortfall: 500 outlets
Rollout Shortfall: 250 outlets
Rollout Volume on Forecast (17,650 outlets)
Rollout Excess: 75 outlets
implementation Revenue Shortfall £0.5m
Profit Recognition Percentage: 9.5%
Profit Recognition Percentage: 10.0%
Profit Recognition Percentage: 10.5%
Profit Recognition Percentage: 11.0%
Profit Recognition Percentage: 12.0%
Base Profit Forecast
Impact of Risks/Opportunities
New Business Revenue
Rollout Varlance
Imp!'n Revenue Variance
Impact of Profit Recognition Variance
Total of Risks and Opportunities
Profit Forecast after Risks and Opportunities
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ICL Pathway Customer Requirements Report Ref: PA/REP/OSS
Version: 1.0
Date: 08/11/2000
Customer Requirements Report
1. MONTHLY SUMMARY
The Network Banking and EFTPOS projects are once again moving forward. We are
getting full customer funding for these and for our ERA work. There are several APS
opportunities materialising for suriimer 2001 delivery. The SLA ‘get well’ actions were
completed. The GGP kiosk opportunity has gone to Cap Gemini / Ernst & Young.
1.1 DETAILED PLAN ACTIVITIES
1.1.1 NEW BUSINESS REQUIREMENTS
Network Banking
Work resumed on Network Banking in August. We briefed IBM, the preferred
prospective Network Banking Engine supplier, on the principal characteristics of
the Horizon system and potential boundaries and interfaces. We attended a
workshop together with Post Office and IBM at the PO Wolverton Mill training
facility to consider integration options and start the process of revising existing
work packages. A further version of the work packages was tabled and
developed on 2/11.
The first of these, the creation of state diagrams, has started and should form
the basis for the subsequent end-to-end design activity.
An invoice. for £47K was raised covering the work authorised under CCN 699
for running Network Banking workshops. The work package work can also be
booked to the £33K remaining on this CCN, which is excellent news. Four of
the original workshops remain outstanding and if necessary will be funded out
of anew CCN
Meanwhile, Joan T has completed the draft of a Preliminary Analysis Product
Description using the DOORS requirements management tool and continued
with documentation in DMR Macroscope.
It is now expected that the Network Banking application will be web-based,
although there are. various flavours being considered.
ERA
Alan P is working in a joint team documenting the Functional Requirements for.
the “Vision” for ERA based on the current ERA blueprint stage requirements
catalogue and process flow diagrams. The DOORS requirements managément
tool is used to document these requirements.
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Mike C and is part of the Product Re-engineering and MFU contact work
group.
POCL had an extremely useful visit to An Post to see how they had developed
their system. An Post has in fact done everything the UK Post Office aspire to,
but'with a pragmatic and business led approach.
Alan and Mike are now both fully booking their time, again excellent news.
PIU/GGP
Dave:H and myself were committed to this bid during early October completing
the ICL proposal and producing plans for the phasing of work bundles
associated with early pilot deliveries. This included completion of the proposal
document itself, dealing with question follow up, presentations / meetings with
POCL and Quadrant and contributions to the Pathway risk register.
In the event CGS/EY were successful in achieving “preferred partner” status.
There will be a debrief on 7/11 at which we may learn how PO see the kiosks
and their applications being linked to Horizon.
Some associated work with Energis on data network options will be followed up
separately with a view to identifying cost reduction opportunities for the
mainstream Horizon environment.
Service Development Plan
Some opportunities are still on the table, but lack of funding and strategy
difficulties prevent-real progress.
A DVLA. requirement to provide receipts for Statutory Off Road Notices should
be supportable by using Reference Data and the feature for forced printing of an
EPOSS Session receipt. However, the feature has regressed and the fix needed
cannot be-accommodated now until M1.
EFTPOS
John C is leading a 20-day consultancy project to provide Andy Radka with
information on which to base the POCL business case for an EFTPOS capability
using debit and credit cards. The consultancy deliverable is a report due about
9/11 providing indicative costs for development and ongoing operations. Debit
cards are expected to be required at all positions, credit cards at foreign
exchange bureau positions plus various options for support of hot card lists,
non-zero floor limits, etc.
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Meetings with Nat West, the expected first Merchant Acquirer, and Retail
Logic, the most probable supplier of commodity software, were held and
decisions on how to accommodate the requirement within the Horizon
architecture and derive costings were facilitated with the Architecture team.
1.1.2 SLAS ‘GET WELL’
TIP files
John P has supported Commercial in finding a way forward over TIP exception
handling and AP settlement, gaining a lot of ground in our favour. TIP has now
agreed to a previous offer of ours to renumber exception files distinctively and
will raise two paid-for CCNs to make AP reconciliation easier.
POCL is now seriously reconsidering their practices of whole file rejection and
of requiring normal and exception files to be delivered in a particular order.
Non-polled offices
Tony H completed documenting ‘get well’ measures for the failing 13 SLAs, in
particular those for inward data file delivery from 100% of outlets by Day D.
Customer Services, TDA and Customer Requirements have now raised Change
Proposals.to address root causes, for implementation post M1.
1.1.3 CSR/CSR+
Acceptance hangovers
We repeated our advice that POCL should recommend that DSS procure
specialist bar-code testing devices to judge the quality of EDS’s printing of bar-
code on order books.
POCL requires the OPS and TMS Architecture Specifications to be updated and
reissued in line with the Generalised API for OPS/TMS. The OPS Architecture
Specification has been sent to POCL for final review and sign off, and the TMS
Architecture Specification is expected to follow within the next:few days.
SADD
Late comments on SADD 5.5 were received and version 6.0 was produced on
24/10 to coincide with the RAB. This was revised after several impromptu
discussions with POCL and is now cleared for approval, and, eventually, for
adoption via CCN.
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Version: 1.0
Date: 08/11/2000
AP Client Migration
Approval of the CCN for the Client specification for Welsh Water is delayed
pending confirmation of particular tests required for both Welsh Water and Mid
Kent water. That for Northern Ireland Electricity is out for approval. Those
for SWALEC:and DVLNI are at the review stage.
POCL will formally request that the physical connection for BT will be a
standard AP file transfer system, but installed at the POCL Data Processing
Centre site.
A change is being applied to cause all Client files to include record delimiters.
This now leaves Yorkshire electricity as the only client that docs not want them.
POCL has to.decide how it wishes to handle this.
Major reviews of the Client Migration plan have taken place. As a result we
have changed our policy of swapping: out the client hardware between DIT and
live - we will now rebuild the system, not replace it. We will also adopt a more
flexible approach to DIT testing slots ‘to give more parallelism.
Other APS
SPM and Watercard schemes are now running live as part of CSR+.
It has now been agreed that SEMA will provide the HAPS Data Cleansing
Service for POCL, if it is ever required. There will now be no activities within
Pathway on this topic.
A simple Client File Server demonstrator has been created and internally
reviewed. The POCL meeting to consider this was postponed.
Two new initiatives are now underway for delivery in summer 2001. The first
is a pre-payment scheme for Northern Ireland Electricity that adds an on-line
authorisation process to a fairly standard AP transaction. The second is a revival
of the Schlumberger Talexus smart key service. There is significant pressure
from Yorkshire Electricity for this latter service, as the Regulator requires it to
have a sufficiently large vending network available before new meters are
allowed to come on-line. Schlumberger has agreed to create a new set of
documentation in a short period of time to allow POCL / Pathway to create the
programme plan. Ir is finalising designs for a mouse-sized smart key reader that
De La Rue’s Payzone organisation will also use.
Other opportunities include E-Top Ups for mobile phones. This is a basic AP
transaction but with an on-line link to advise the mobile phone operator that a
credit has been purchased by a customer.
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Both EFTPOS, NIE and E:Top Up have similar functional requirements and
could benefit from a common architecture that addresses the issues, shared with
Banking, of higher on-line workloads and branch network telecommunications
capacity.
1.1.4 OTHER ACTIVITIES
Dave H provided some material to ICL Poland to assist with the éarly stages of a
local bid response. The Polish Post Office is in the early stages of a fundamental
restructuring which may open opportunities downstream for infrastructure
modernisation.
Dave H gave a presentation on workflow standards for e-Commerce at the
recent Black Forest Group conference, concentrating on the role of XML
standards and the Wf-XML standard for distributed processes.
The team has been briefed on their ISO 9001 process roles and an associated
Management Plan has been put in place.
Discussions with the ERA team have been held and an ERA board / management
briefing for the meeting with POCL for the 15/11 is in preparation.
2 CURRENT CRITICAL PROBLEMS
None.
ate
3 ISSUES
The eventual indicative costs of the EFTPOS solution may lead to an uncompetitive
business case for POCL as compared with installing Nat West Streaniline boxes at each
outlet.
There is no ICL ERA Project Manager, now that John Hunt has become a full time
consultant, t6 manage the team of eight, six of whom are contractors.
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Why
I
lief
I
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Service
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Version: 1.0
Date: 08/11/2000
Customer Service Report
1 SUMMARY
° The two 155MB inter-campus links were lost for approximately 50 minutes on
3rd October and stopped rollout for 2 hours before the fault appeared to clear
itself; The underlying cause has been identified within the Energis Network
Management Centre.
° The “Live Host Systems Memory” upgrade from 1 Gbyte to 2.Gbyte on both
Wigan and Bootle Hosts took place over the weekend of 14" /15" October.
. The RDT rig has yet to be upgraded to CSR+. The ability to produce test files
to fulfil our obligations for the CTO service will be compromised if we do not
upgrade and understand how the new facilities will be used for this service.
. Overnight-processing delays early in the month resulted in some TIP file
deliveries after the SLA deadline of 3am. The TIP Disaster Recovery site
implementation is now complete after a number of issues and delays in software
build.
. The APCM plan version 11.0 has been submitted to POCL together with
suggestions to increase flexibility in terms of the use of DIT slots. This plan
fulfils our contractual commitment for AP Client Migration.
° As at 3rd November, 3607 Outlets are using CI_4. Some Outlets have occurred
twice in the migration schedule, which has caused already migrated Outlets to
teceive a letter giving them a new date for migration and created much
confusion.
. There were some processing problems with delivery of APS reports from
5-10" October. These have been reconstructed by Development and
forwarded to PON
° Non polling is still giving cause for concern. MSU are struggling to keep on top
of the older cases. Support from both BT and Energis.is not satisfactory.
° The service review book for September 2000 was completed and sent to PON
on 13th October in accordance with the agreed timescale. Notable
improvements were evident in the HSH and System Service SLA conformance.
. There are an increasing number of referrals from HSH/SSC Duty Managers
regarding bad attitudes from PMs; these are being referred to PON for
comment.
° Over the last fortnight, 20 FSM visits have been completed, with 25 planned for
the next-fortnight. At Washington, FSM intervention ensured that the engineers
and a representative. from BT attended site together, leading to the swift
resolution of a long-running problem.
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fersion: 1.
Date: 08/11/2000
1.1 VITAL STATISTICS
Live Base as at 31" October 00: 13,686 Post Offices, 30,025 Counters
Cumulative Data is from 1* December 99 to 31* October 2000 inclusive
Monthly Data is from 1* October to 31* October inclusive
OBCS
Total number of transactions to date 216,761,496
Total number of transactions in October 45,213,750
Total value of payments to date £ 16,532,192,010
Total value of payments in October £3,394,526,872
EPOSS
Total number of receipts to date 306,306,996
Total number of payments to date 75,364,405
Total number of zero value transactions to date 24,202,261
Total number of receipts in October 53,247,805
Total number of in payments October 7,363,503
Total number of zero value transactions in 4,435,028
October
Total value of receipts to date £17,304,124,412
Total value of payments to date £ 6,921,269,390
Total value of receipts in October £2,999,607,685
Total value of payments in October £689,904,900
APS
Total number of transactions to date 98,848,491
Total number of transactions in October 18,855,878
Total value of receipts to date. £ 2,685,686,847
Total value of receipts in October £485,635,261
NOTES:
e OBCS transactions include non-monetary transactions - issue of books,
change of address etc.
* 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
e A Major Business Continuity Incident occurred on the 3rd October when the
two. 155MB Inter-campus links were unavailable for approximately 50
minutes. The underlying cause has been identified as a ‘provisioning error’
within the Energis Network Management Centre. A number of process
improvements have already been identified and implemented by the Energis
Network Management Centre. The incident will be closed when Energis
operationally demonstrate full alarm functionality on these circuits to ICL.
e The “Live Host Systems Memory” upgrade from 1 Gbyte to 2 Gbyte on both
Wigan and Bootle Hosts took place over the weekend of 14" /15" October.
e A number of contingency actions have been taken within Pathway and its
suppliers to alleviate the affects of further fuel disruptions. Additional
measures are currently being discussed with the Post Office.
e A number of procedural issues remain open, which adversely effects ICL’s %
preparedness for rebuilding OTT and Reference Data disaster recovery
equipment at FELO1.
2.1.2 REFERENCE DATA
e The only outstanding issue with CSR+ for RDT is that the RDT rig has yet
to be upgraded. This is still pending confirmation of the solution (CP2782)
for use of the new APS facilities. The ability to produce test files to fulfil our
obligations for the CTO service will be severely compromised if we do not
upgrade and/or know how the new facilities will be used for this service.
There are disagreements between CS and Development over how the
changes should be achieved.
e The problem with Data Centre rollout processing, which limited the rollout
extract each night to 45 offices, has been fixed and rollout.is back to day-10.
PON data quality is still a cause of concern. David Anders, PON Problem
Manager, has submitted an improvement plan. RDORF meeting on
5" October agreed some measurement.breakdown on thé data; the intention
being to apply new rules for consideration by next RDORF.
2.1.3 POCL INTERFACES
e Overnight-processing delays early in the month resulted in some TIP file
deliveries after the SLA deadline of 3am.
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e The TIP Disaster Recovery site implementation is now complete after a
number of issues and delays in software build. A post-mortem statement is
being progressed from Release Managemenv/PIT, to account for the several
weeks needed to achieve the software build.
e Weare still awaiting PON sending a Statement of Requirements for the new
CSR+ CTO process, which then needs to be negotiated, agreed &
implemented. This now cannot be achieved before 1st Client Migration, at
the end of November. The fallback is for OSG/HAPS to continue to provide
an interim service.
e A Maestro schedule change (CP2712) to start LFS earlier and avoid excessive
phone-costs is targeted for delivery “pre-M1”.
e AP Client Migration
e The APCM plan version 11.0 has been submitted to POCL together with
suggestions to increase flexibility in terms of the use of DIT slots and to
minimise the disruption to clients caused by the replacement of DIT kit. This
plan fulfils our contractual commitment for AP Client Migration.
e The DIT for HCC has béen formally signed off. The live kit is being built
and the installation is planned for 7th November.
e The DIT at Mid Kent Water has been completed successfully. There are
concerns around our ability to deliver a virus checker in time for the build of
the live kit for Mid Kent Water putting the migration date for Mid Kent
Water at risk.
e The Welsh Water client spec has been signed and the CCN 712 submitted.
The client spec for SWALEC and NIE has been finalised and submitted for
signature. The client spec for DVLNI has been produced and is out for
review.
e Girobank have reviewed some output files from Horizon. This has raised
three issues. One is a known problem, one needs to be fixed by Pathway and
one needs to bé addressed by POCL.
e The SPM installation has raised concerns over the effectiveness of our
internal and client communication and we are getting similar messages from
HCC/SCC regarding the DIT preparation. Furthermore, the SPM experience
has highlighted that a successful DIT may not be the only predecessor for
live operation.
e Preliminary investigation of the data cleansing service has highlighted some
technical complexity. A meeting took place with SEMA to review possible
solutions. SEMA will provide the data cleansing service and we.are awaiting
formal confirmation from POCL
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2.2 SUPPORT SERVICES
2.2.1 GENERAL
e The focus on APS issues in Cl_4 has resulted in significant improvements.
There have been no major operational problems recently and we are now
handling any issues-as ‘business as usual’.
e An SSC exercise aimed at assisting TIP with transactions that they are
missing has now been completed.
e There are still a high number of fixes targeted for application to the live
estate which is resulting in considerable pressure on the Release
Management and Operational Test teams.
2.2.2 MAJOR RELEASE IMPLEMENTATION
As at 3rd November, 3607 Outlets are using CI_4.
e Rollout Counters are having to have their Reference Data installed via the
Agents. The fix for this has failed testing.
e The KMA server is giving problems that cause POLO login at Outlets to fail
and means that the customer has to redo the POLO login. The technical
cause of the problem is under investigation.
e Some Outlets have occurred twice in the migration schedule. This has caused
already migrated Outlets to receive a letter giving them a new date for
migration and created much confusion. The schedules are being checked to *
stop this happening again. ‘
2.2.3 RELEASE MANAGEMENT
e 95 Release Notes for CI_4R have been raised over the reporting period. Of
those 21 are in testing, 12 have been applied to live and 4 have been
withdrawn. Those remaining are awaiting application or are Reference Data.
e Release Management is controlling the distribution of CI_4 to the live estate
via a series of special Release Notes.
e Release Management is moving forward with their plan to control software
releases via PCMS. Release Notes are now being produced using PVCS. Fine
tuning of the detail is being discussed with CM.
2.2.4 METRICS
Totals for the month of October 2000.
Release Notes cleared by OTT 68
Total Calls received by SSC 987
Total Calls closed by SSC * 1136
© Of the total calls closed, 532 were in categories (e.g. Advice and Guidance,
Published Known Error) which should have been closed by SMC.
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2.3. INFRASTRUCTURE SERVICES
2.3.1 MANAGEMENT SUPPORT UNIT
2.3.1.1 BUSINESS INCIDENT MANAGEMENT
e There were some processing problems with delivery of APS réports from Sth -
10th October. These have been reconstructed by Development and forwarded to
PON.
e Non polling is still giving cause for concern. MSU are struggling to keep on top of
the older cases. Support from both BT and Energis is not satisfactory: Daily high
priority focus has now been applied.
2.3.1.2 MIS
e The service review book for September 2000 was completed and sent to PON on
13th October in accordance with the agreed timescale. Notable improvements were
evident in the HSH and System Service SLA conformance.
e Long standing OBCS issues which arose through analysis of PON ad-hoc requests
32 & 36 continue to be investigated, however, an agreement with Liz Tuddenham
for OBCS reporting across the live estate has been designed, implemented and
awaits Customer approval of the results.
e CSR+ migration has caused problems which resulted in long reporting delays whilst
temporary access was provided (unofficially). Extensive testing to validate existing
and new Data Warehouse results followed this. MSU Data Warehouse access
remains via the one MIS Client, as the remaining 3 (1 at BRAQ1 & 2 at FELO1)
have not been fully migrated.
e Actions remain outstanding against the aforementioned MIS Clients at FELO1
following the Disaster Recovery test on 27th April 2000. It is believed that in a real
DR situation, MSU would not be able to continue work using the Data Warehouse.
¢ The Data Warehouse is being interrogated on a daily basis to compare results to
SLAM and the spreadsheets currently provided by HSH. This is with a view to
proving the Data Warehouse can be relied upon to produce quality data, without
additional validation input.
2.3.2 BUSINESS EFFECTIVENESS
¢ Confirmed dates for the BSI assessments are: - Pre-assessment 14th & 15th
November 2000. Full assessment w/c Sth February 2001. Actual timetable
for the pre-assessment is still to be confirmed.
¢ Workshop held with PON to progress the re-write of the joint Service
Management Framework.
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« The reviews / updates covering the APS and TPS/LFS Business Continuity
plans are now complete. As a Quality initiative Tony Wicks has been asked
to instigate walkthroughs of each BC plan as they are updated.
e Regular workshop is held every two weeks with Pathway Developmeny/TDA.
These are delivering real business benefits and enabling cross-organisation
processes to be validated and enhanced.
2.3.3 STRATEGIC SERVICES UNIT
2.3.3.1 OPERATIONAL BUSINESS CHANGE
© The following tables show actual deliveries for October and firm orders for changes
up to the end of February 2001.
Opening/Relocation/Refurbishment (Outlets)
Month Total Actual Deliveries Actual Deliveries
Deliveries I Allowed Within Additional to Contract
Contract
October 76 17.48 58.52
Month Total I Forecast Deliveries Forecast Deliveries
Orders Allowed Within Additional to Contract
Contract
November 98 19.31 78.69
December 27 20.33 6.67
January 18
February 2
Closures (Outlets)
Month Total Actual Deliveries Actual Deliveries
Deliveries I Allowed Within Additional to Contract
Contract
October 19 10.92 8.08
Month Total I Forecast.Deliveries Forecast Deliveries
Orders Allowed Within Additional to Contract
Contract
November 15 12.07 2.93
December 3 12.71 Not yet exceeded contract
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2.3.3.2 BUSINESS AS USUAL
¢ HSH and NBSC are advising of Outlets receiving migration letters but (apparently)
no card. Average is about’6 / day. Most Outlets claim the card is missing, but there
are likely to be a number of reasons for this.
e UKSS are advising that base swaps are taking too long to download the software
and impacting on Service Levels. (Download is assumed 5 minutes in contract),
Engineers are to trap these timings - current belief is that this is taking between 40
and 90 minutes with some instances of 2 + hours due to network problems.
2.3.3.3 CUSTOMER COMPLAINTS
© Complaints regarding Agent attitude have decreased this petiod although wrong
advice complaints still remain high and are being monitored. There are an
increasing number of referrals from HSH/SSC Duty Managers regarding bad
attitudes from PMs; these are being referred to PON for comment.
2.3.4 FIELD SERVICE MANAGEMENT
* A presentation was made to Managers of the HSH and NBSC as part of their
regular meeting. This raised awareness of the FSM team; subsequent contact
with HSH management has highlighted opportunities for working together
to identify and manage problem sites and this will be explored further.
© Over the last fortnight, 20 visits have been completed, with 25 planned for
the-next fortnight. Visits during the last fortnight have included a number of
“last minute” visits, notably St Agnes in Cornwall, and Guiseley near Leeds.
e Washington was supported during an ongoing comms ‘problem. FSM
intervention ensured that the engineers and a representative from BT
attended site together, leading to a swift resolution of a long-running
problem. The RNM was delighted.
© PON flagship office, Trafalgar Square, has been reporting performance issues
for some time. These are likely to be helped by CI_4. FSM involvement and
discussion with the Branch Manager has enabled the date for the upgrade to
be brought forward. The Branch Manager, ‘who was previously very
concerned, is very pleased with the support he has been given.
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Version: 1.0
Date: 08/11/2000
Quality & Risk Report
1 MONTHLY SUMMARY
° Security. Virtually all effort has been directed at the generation of 5,500 live
keys. This has been successfully achieved, notwithstanding serious problems
with for example the late delivery and extreme unforecasted variation of data
feeds:
° Risk Management. Responsibility for Risk Management has been transferred to
Steve Reed, Commercial and Finance.
e Quality. IS09001. Dates for the pre-assessment (14-15/11/00) and formal
assessment (week beginning 5/2/00) have been agreed with BSi. Process maturity
matrices have been developed to aid identification of gaps and lack of progress.
Progress continues with the QMS and BMS.
° Audit. The programme for the next 6 months is being developed.
Documentation has been updated. The CAPs have been reviewed - a fall in
outstanding actions by 13 to 57.
° Business. Continuity has made significant progress. Plans are virtually complete
and discussed with Team Leaders and the Theale Disaster Recovery Centre is
now proven.
2 PROGRESS
2.1 SYSTEM SECURITY
2.1.1 GENERAL
¢ = CP2292 et al (Anti-Virus software on the Live-Estate). The draft strategy
paper has been discussed with interested parties across Pathway. A solution
has been agreed that accommodates the delivery of anti-virus software to
remote FTMS gateway PCs. This will now be taken forward under
formalised project management. Urgent work is underway to ensure the
delivery of anti-virus software to the remote AP Client gateways outlined in
CPs 2798/2799.
e Security documentation continues to be reviewed as part of the ISO 9001
plan. Work is also underway on incorporating measures for process
improvement.
e Work for obtaining ListX status for Pathway has been completed. We are
awaiting CESG confirmation of acceptance.
e A proposed process compliance review of Datacentre operations has been
prepared. This should be undertaken shortly.
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e Work is progressing well on evaluating various compliance toolkits to
facilitate remote checking of security policy compliance across the live estate.
Implementation will be progressed via CP.
e A build problem with the Audit workstation stopped work on Audit data
extractions for PONU for two weeks. This has now been fixed and the
resultant build up of requests is being actioned.
2.1.2 CSR+
© The Key Manager has successfully generated keys for about 5,500 outlets
this month but there have been serious problems, some of which are still
under investigation. Most stem from the late delivery of Data feeds to the
KMS and because known problem fixes have not been implemented on the
live estate.
© The KMS Key Manager continues to consolidate. knowledge of the KMS
system and is performing a daily analysis of migration/rollout activities to
inform the programme.
e A KMS database corruption prompted the use of a temporary archive
security procedure. This successfully facilitated the certification of keys
pending resolution.
e Findings from Live Pilot are informing amendments to the KMS User Guide
and other process documentation.
e A procedural failover test from the primary KMS operation in FELO1 to the
contingency site at BRAQ1 was undertaken and successfully completed.
2.2 QUALITY
e [809001 Programme.
e Progress has been reviewed with BSi lead assessor and dates for pre-
assessment (14-15/11/00) and formal assessment (week beginning
5/2/00). The schedule for pre-assessment is being developed and
discussed.
* QMS documentation development continues — reviews of the major
documentation have been held and will be baselined by early November.
The remaining documentation will be completed by end of November.
¢ Process Review Forums for cach directorate are now taking place
regularly, to review process development, records, implementation of
measures.
e Process Development update:
© Most documentation of processes is on track.
e C&F process documentation. A technical author is now on board.
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e A Management Plan for the Quality Directorate has been produced and
will form the basis for a standard layout to be incorporated into the
QMS.
e Business Management System (BMS). Continued progress to populate
with processes as they are baselined. A mechanism to simplify the process
of updating is being developed.
e A process matrix has been developed populated. It has been extended to
include the maturity of processes to better focus attention.
© Propel implementation. Gateway reviews of Network Banking, EFTPOS and
ERA have taken place — results are now in Siebel. An initial review of GGP
was conducted.
2.3 AUDIT
e Internal audits:
e Invoicing Audit. The audit report and Corrective Action Plan have been
approved.
© Audit Plan for Q4, 2000 to end Q1, 2001. The Internal Audit Committee u
discussed areas to be audited during the next six months. An outline plan
was agreed. CS involvement is to be discussed before finalising the plan.
e CAP Monitoring. All CAP Reports have been reviewed. The number of
outstanding corrective actions has reduced by 13, to 57.
e Audit Manual. The document (I[A/MAN/003) has been updated substantially
and is being-reviewed. The new draft.includes further process measures.
2.4 BUSINESS CONTINUITY
e Theale Disaster Recovery Centre communications have been been proven.
The site now replaces the City site as Pathway’s DR site.
e The Disaster Recovery plans have been completed. LDRPS is now in
maintenance mode. Plans have been discussed with the majority of Team
Leaders. Disaster recovery boxes containing copies of plans are being
prepared for distribution.
e The telephone message number has been established. The credit card with
emergency details is being designed.
3 ISSUES
e° The Audit Manager is leaving, 10/11/00. No successor has yet been found
internally.
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Version: 1.0
Date: 08/11/2000
Business Development Report
1. SUMMARY
° Two steps forward, one step back sort of month! Decisions were taken on
Network Banking only to be then questioned at higher levels and sent back for
further review. I sense unless a gun is put to people’s heads with a.looming date
for necessary implementation, then reviews will happily go on which all the time
place a higher risk on the deliverables. However, without personal impact, it is
hard to break through this process.
° ERA continues with some additional ICL Pathway resource but no clear picture
on the way forward. Discussions will take place this week to progress.
° The next away day with Post Office Network will take place on 15" November.
This needs to be a more direct meeting than heretofore with focus on
identifying if Horizon is strategic or not.
Network Banking:
e The requirements are now based on three separate models:
e Network Banking for normal deposit or withdrawal from a standard
bank account
e PAT14 (Policy Action Team) account which offers the above features
plus direct debit from an account that cannot go into overdraft
e Clear Account which seems to have:to offer most of the vagaries of the
old benefit card
e IBM has now been chosen as the Network Banking Engine provider but no
contract has been placed:as yet.
« We have attended two meetings with IBM & Post Office, the first as an ice
breaker, the second to help identify work packages.
e We have now identified 11 different work packages, most of which will
require some level of ICL Pathway resource and corresponding revenue. One
of the work Packages will require Escher involvement to continue to assess
whether Web Riposte can handle downloaded business logic from an
external source.
e As yet, there is still no commercial agreement in place between Post office
and any bank.
ERA:
e¢ We now have 8 paid for consultants working on the ERA project. The
current aim is to have those resources gainfully employed on the project
until March. This has yet to be agreed. Meetings this week will flush this
out.
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e There is continued concern within POGL regarding the funding of ERA and
as yet there is no buy-in from the Market Facing Units. This is a crucial issue
for discussion on the 15" at the away day.
Government Gateway:
e Now that thé chosen partner has been won by CGEY, we need to understand
better where Horizon can fit in. There is a debrief with Post Office on 7*
following which we will.formulate our new strategy for GGP.
¢ I remain dubious about this area as there is no buy-in from government in
real terms. Post Office are still not positioned well to get the business.
Compaq have withdrawn from UK-Online.
Marketing Communications:
e Continued good work internally. Some progress with Post Office. We must
continue to keep focus-on the area of positive communication on Horizon. It
is not Post Office’s natural way to promote success.
2 PROGRESS
Business Development:
e EFTPOS: This is now making progress. We have been awarded a small
piece of consultancy business to help PON put a business case together. The
main action on our side is to come up with a cost profile for implementation
of EFTPOS on Horizon. The business case is due to be proposed to PONEC
later in November.
¢ Mails: A further demonstartion has taken place-with Post Office. They like
the system and it seems to fit their supposed requirements. The task for us is
to assess the integration issues. Work is underway to do this and I expect to
put a proposal to Post Office by end November.
e Service Improvements: This continues to drag along. The danger is that Post
Office ‘will involve us in lots of detail activity without any positive outcome
at the end of the day. Again this is an issue for the away day. We must find
ways of helping them prioritise their requirements. At present, they tend to
resopond to he who shouts loudest.
e MIS: We-are still continuing to assess the possibilities here. The difficulty is
that the data warehouse does not contain a lot of the detail that is needed for
the production of meaningful reports.
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ICL Pathway Business Development Report Ref: PA/REP/0SS
Version: 1.0
Date: 08/11/2000
Marketing Communications
e An article has been submitted for the next edition of the [CL magazine,
regarding mobile, trolley and satellite systems.
e A new case study on ICL Pathway / Horizon produced and received approval
from the Post Office. This has been produced with the objective of it being
used by ICL:as a reference to the project. The case study can be found on the
ICL Pathway Community and the ICL Marketing Community via CafeVIK.
e A press release titled "UK's most northern Post Office branches are
automated" regarding how offices in the Shetland Isles and Orkney Isles have
been automated, was approved by the Post Office and distributed. It made
the front page of Computer Weekly for the 26" October.
e We are speaking to the Post Office Press Office regarding future PR
opportunities and they have informed me that they have been talking to the
"SOAPS' about having Horizon on the television. Coronation Street and Take
The High Road are interested and both should confirm in the next couple of
weeks. Emmerdale is next on the list. The systems will not be run as live
outlets, they will just have the screen, keyboard and barcode scanner.
e We attended, at the request of the NFSP, the Working Country Fair, which
took place during the Conservative Party Conference on the 4" October. We
showed a prototype of the new mobile system, which went down extremely
well. Our stand was moved to the number one position and ended up
meeting William Hague, who believed that the Payment Card should be
bought back!
e We attended the NFSP Annual Conference and Exhibition in Telford on the
14 & 15 October. The Horizon system was on the Avery stand as they
wished to demonstrate it with their scales.
International
e Work on the latest developments for Deutsche Post has completed
successfully.
e No forward moves on the African continent.
3 ISSUES
None
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FUJ00058195
FUJ00058195
ICL Pathway Implementation Report Ref: PA/RED/OSS
Version: 1.0
Date: 08/11/2000
Implementation Report
1 MONTHLY SUMMARY
A total of 13,937 Post Office outlets have had the Horizon system installed, as at close
of business 3° November 2000. This represents 77% of the current agreed number of
open outlets (18,095). It is anticipated that this will fall to approximately 18,000 or
less by the end of rollout.
The team are on schedule to achieve the next rollout payment milestone (17,240
outlets by 9" March 2001) with headroom of 300 outlets available. We are also on
target to achieve the current outlet revenue forecast of 17,650 outlets by 30" March
2001. Recent commercial negotiations with PONU have successfully reset the payment
milestone target to the lower figure above to take account of attrition over which
Pathway has no control.
During the reporting period, weekly rollout performance was consistently below the
planned levels. The reduced level of achievement is attributed to recent errors in the
ordering of ISDN lines by Energis, an unforeseen scheduling conflict in the tail.end of
the programme and a higher rate of attrition in the tail than had been expected. Action
has been taken to-address each of these issues and is discussed in more detail below.
An Implementation Closedown Strategy has been defined in conjunction with Pathway
Customer Services and the customer. All three parties have agreed to the strategy and
are in the process of implementing the activities required to achieve it. This will enable
Pathway to closedown. its Implementation Infrastructure team in January 2001 and the
remainder of the Implementation team in May 2001.
2 PROGRESS
Infrastructure Preparation
Activity in the Infrastructure programme continues to make good progress. We are
nearing the end ofthe program and are now receiving outlets from PONU released
from the remaining 140 outlets due to be released as compliant. These outlets will
count towards thé Rollout Part B total in the Codified Agreement. A further 15 releases
between. 31% October and 10" November are likely prior to the end of the year, after
which infrastructure activity will be managed by the OBC unit in Customer Services.
The Implementation. infrastructure team will be disbanded following the transfer of
responsibility, as part of the Implementation Closedown Strategy. The infrastructure
team is working closely with PONU centre in order to achieve the maximum number
of releases possible prior to the proposed end date in November.
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ICL Pathway Implementation Report y Ref: PARER/OSS
ersion: 1.
Date: 08/11/2000
The 40 outlets previously removed from the rollout database and re-entered into the
program are now progressing through the infrastructure process and will be made
ready for installation by 15 December.
The ICL IP regions are reviewing outstanding offices with their PONU regions to
ensure every outlet is accounted for.
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.
Surveys and Preparations for mobile outlets are in progress. From the 84 surveys
carried out to date 62 are fits, 12 ‘can't do's', 7 won't do's' and 3 aborted sites. The
outlets that resulted in a fit being found but the outlet manager not accepting the
solution (won't do's) have been passed back to the PONU regions for resolution.
Mobile outlets are targeted to complete the infrastructure phase prior to the Christmas
break however it is anticipated that asmail number may. be.completed in January where
Landlords consent is outstanding.
Installation Activity
Rollout plans include three sequential sweeps around the whole of the United Kingdom
with each sweep achieving a reduced level of outlet density per geographical area.
Consequently, the later sweeps also move around the country at a faster rate than the
initial sweep. These three structured rollout phases are labelled as X, Y and Z with a
steady beat rate being achieved in each of those phases. Following Phase Z the
programme enters a final planned, but less structured phase, to complete rollout where
the beat rate reduces every week until the end.
Rollout Phase X was completed in early October and rollout Phase Y commenced from
6" October and will run until mid-February. This is in practical terms the
commencement of the “rollout tail” where we are installing Horizon in the last 25% of
the Post Office éstate. The significance of this point is that the last 25% will be much
more difficult to complete due to the dwindling numbers, outlet availability and the
minority groups of outlets in the tail which are unique or require special. attention.
This includes outlets that use the mobile, satellite or trolley solutions or those that were
aborted or unavailable during previous sweeps due to technical issues. Consequently,
we can expect to see a greater level of attrition during the remainder of rollout and are
likely to see some under-achievement against the target levels in the rollout planned
beat rate.
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ICL Pathway Implementation Report y Ref: PAREDIOSS
ersion: 1.
Date: 08/11/2000.
In practice, the effects of the tail have been evident since the beginning of October and
achievement on a weekly basis has been reducing each week as a result. Improvement
was observed in the week commencing 30" October where the forecast was exceeded
although in the following week a further impact is expected. There is likely to be a
continuing pattern whereby some weeks we beat. forecast and in other weeks we
underachieve. It is anticipated that on balance we will achieve the overall plan. To
protect against the risk of further underachievement special measures have been taken
to reschedule additional outlets into the programme outside of the planned
geographical rollout area. This incurs a small additional cost, which can be
accommodated within the budget but will safeguard the final rollout payment
milestone and outlet revenue forecast.
The success criteria are whether the next payment milestone and outlet revenue
forecasts can be achieved. Overall we are just under 400 outlets ahead of plan
although this will fall with time. The final rollout payment milestone will be achieved
with headroom of approximately 300 outlets. The outlet revenue forecast for the year
assumes 17,650 outlets are installed by 30 March 2000. We are on plan to achieve
this and the special measures being taken will ensure some headroom. is also created.
Rollout of CSR+ CI4 counters to new installations commenced from 23"! October and
the Cl4 software release will be used for all future counter rollout until the end of the
Implementation programme. Transition to CSR+ included the national deployment of
1,200 new build training systems and the transparent change from the CSR to CSR+
training programme. Horizon system training continues to be delivered to a high
quality.
Horizon installations at sites using satellite communications commenced in the
installation programme from the week commencing 23" October and some 12-15 such
installations will have been completed by 10" November. The first satellite site at
Shotton Colliery near Durham unfortunately suffered a number of issues and had to be
aborted on three separate’ occasions. The first successful installation of this type was
completed successfully in Northern Ireland on 1* November. The system at Shotton
Colliery is rescheduled for 10 November and the initial installation concerns have all
been resolved. These issues were all process related and occurred during the “bedding
down” of the processes.
Implementation Closedown Strategy
An strategy to complete rollout and disband the Pathway Implementation team is now
in place with detailed plans having been agreed between Implementation, Customer
Services (who will take-over any remaining small scale activity) and the Customer
implementation unit.
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SCL Pathway implementation Report Ref: PA/REP/OSS
Version: 1.0
Date: 08/11/2000
Key milestone dates, supporting assumptions and high level plans have been defined by
agreement and’ detailed working plans to achieve that strategy are now being
developed. These typically include the review and refinement of existing plans and
processes for use during the final stages of rollout. Customer Services and
Implementation representatives meet once a fortnight to progress these. plans and meet
once a month with the customer to seek their agreement. The infrastructure
programme will closedown in Implementation and pass to Customer services from 8"
January 2001 and the installation programme from 12" May 2001.
ACTIVITY, NGE ULATIVE
Number of Open Post Office Outlets “36 18,095
INFRASTRUCTURE PROGRAMME
Sites Entered Into the Programme -37 18,085
Sites Remaining to be Surveyed -245 334
Sites Remaining to be Prepared +127 641
INSTALLATION PROGRAMME
Sites Migrated and Live +1,118 13,937
Percentage of Open Sites Live +6% 77%
Counters Live 2,157 31,514
3 CURRENT CRITICAL PROBLEMS
No new critical issues have arisen. Two existing issues continue to be of significance
although they are being successfully managed with the customer’s agreement and
within the pathway financial budget. These are the projected shortfall in training
courses and responsibility for that shortfall, and the dispute with ntl: over an invoice
for weekly shortfall charges to the value of £800K.
Pathway are continuing to predict that an additional 1,000+ training courses will be
required beyond that specified in the Codified Agreement as a result of low course
occupancy. [t is now clearly understood that the shortfall is created as a result of
scheduling conflict, aborts. and suspensions, non-acceptance of appointments by
postmasters and non-attendance for reserved places. Through analysis it has been
determined that although Pathway are convinced PONU hold the greatest
responsibility for the shortfall, this is difficult to substantiate with clear. evidence due to
the dynamic nature of the scheduling process. Negotiations with PONU to determine
and agree responsibility have been undertaken but a conclusive outcome is unlikely for
the above reasons. Therefore, a settlement offer to share responsibility for the shortfall
has been made and linked to the mandatory introduction of more stringent acceptance
and scheduling policies. This will motivate both parties, but specifically the customer,
to minimise the future impact of low occupancy. The settlement offer, on which a
customer view is expected in mid-November, can be contained within the
Implementation financial budget and also offers the opportunity for further cost
reduction.
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PA/REP/OSS
1.0
Date: 08/11/2000
ICL Pathway Implementation Report
The-current projection of the training shortfall remains at approximately £1.2M and is
already fully covered in the forecast. There are some further changes to the modelling
of the shortfall to be added which will include a combination of adverse and favourable
impacts to this estimate. However, Implementation remain confident that the issue will
be maintained within the worst case projection of £1.6M and the available budget.
Occupancy achievements in October indicate some favourable movement: following the
introduction of mitigation actions during August-arid September.
Pathway and ntl: are in dispute over the ntl: claim for £800K of shortfall charges.
Negotiations to settle the claim have resulted in ntl: making an offer to settle for a
reduced amount of £530K. Pathway remain convinced that the claim is flawed and
have therefore sought legal advice. A response to the ntl: offer will be made in
November with a view to reducing the value of the claim. The forecast includes the
full value of the claim such that the worst case prediction is covered.
4 ISSUES
We continue to have concerns over Energis ability to deliver a sustained acceptable
level of performance in the ordering and installation of ISDN lines for the Horizon
installation programme. This has created considerable extra work for Pathway and has
resulted in additional costs due to aborted installations. Escalation to management ‘
level on a number of occasions has proved unsuccessful and therefore the concerns
were raised with the UK MD of Energis. The performance deficiencies have been
recognised by Energis and positive steps to increase the size of the team, improve ”
processes and introduce a more effective management team have been taken. Bob
Taylor, the Energis MD, has supported this. Performance has started to improve and ‘
measurement of sustained performance is underway. A claim is being prepared to
recover. the cost impact incurred by Pathway from Energis under performance,
although contract provision for this is limited.
The timeliness of training invitations continues to be monitored and has not been an
issue for the last two months.
One of the satellite system process issues has been the application for planning
permission to install satellite dishes on buildings. Obtaining planning permission was
always going to be a troublesome process and it is expected to be an issue throughout
the remainder of the rollout. However, the supplier failed to initiate planning
permission applications at an early enough point for the first three weeks of satellite
installations. Consequently, 10 outlets per week for each of the first three weeks until
20" November are at risk of being suspended from the programme. Thereafter,
process improvements will minimise the risk of aborted installations due to late
planning permission.
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ICL Pathway Implementation Report Ref: PA/RED/OSS.
Version; 1.0
Date: 08/11/2000
There is a risk of a further fuel tax protest from the week commencing 13" November,
which may result in fuel shortages across the UK. In anticipation of this threat to
rollout contingency plans have been drawn up. Assessment of the risk after the use of
these contingency plans is that rollout can be maintained with-minimal impact for up to
2-3 weeks. Thereafter the impact will increase proportionally. However, given tha
rollout stops on 8" December for a month it is likely that overall impact will be
minimal unless a prolonged crisis occurs.
5 COSTS
The Implementation forecast remains within budget and is on schedule to achieve the
task and revenue targets for the year.
Potential improvements to the forecast are possible, dependent on successful
conclusion of the negotiations with ntl: over the weekly shortfall claim and with PONU
over the settlement offer for training shortfall responsibility.
The costs of satellite and mobile installations have now been agreed with suppliers and
have resulted in some cost reductions in the forecast. This has been used to achieve the
remaining task reduction in the budget for this year.
Management of business case risk is progressing well with all identified risks reducing
in terms of probability and potential impact. Contingency funding in this area is
therefore being gradually reduced.
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Organisation
& Personnel
Report
FUJ00058195
FUJ00058195
ICL Pathway Organisation & Personnel Report Ref: PA/REP/OSS
Version: 1.0
Date: 08/11/2000
Organisation & Personnel Report
1 MONTHLY SUMMARY
The campaign to replace freelancers with ICL employees continued to be pursued
energetically with increasing success.
The number of vacant positions requiring recruitment continued to fall with the focus
moving from filling vacant positions to replacing freelancers with ICL employees so
that the core team needed going forward will contain as high a proportion of ICL
employees.as is. possible.
In terms of the Freelancer replacement task, we are currently targeted to have 143
Freelancers in the business on the 1* December and the end of October forecast is that
we will actually achieve 136, 7 better than target.
2 PROGRESS
° Appointments in October:
External-Recruits
Transfers In
E-Apps
LINKwise
Freelance
Fixed Term Contracts
Adecco Temps
TOTAL:
RB OOHNOHS
° Known Joiners
External Recruits
Transfers In
e-Apps
LINKwise
Freelance
Fixed Term Contracts
Adecco Temps
TOTAL:
NRPOOoCoOOK
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ICL Pathway Organisation & Personnel Report Ref: PAVREP/OSS
Version: 1.0
Date: 08/11/2000
° October Leavers:
Permanent Staff
Freelance
Transfers Out
Linkwise assignee
e-Apps
Fixed term Contracts
Adecco Temps
TOTAL:
BPNOwWDOKL=
° Known Leavers
Permanent Staff
Freelance
Transfers Out
Linkwise assignee
e-Apps
Fixed term Contracts
Adecco Temps
TOTAL:
RORRORAH
0
° Further planned activity took place in respect of the Implementation transition
plan with some employees being transferred to Roll-Out services and one person
being released back. to e-Applications. The next large transfer of employees
occurs at the end of December. The plan itself was reviewed on 27" October
and a number of minor changes made. Customer Service highlighted a
requirement for a further 2/3 Field Service managers to join their team and
possible candidates are in the process of being identified.
° 6 appointments against vacancies were made in October. The number of live
vacant requirements has decreased from 15 at the end of September to 10 at the
end of October.
° The freelancer replacement programme continued to be given high priority.
Approximately 50 CV’s were forwarded to our Development managers for
consideration and of these 21 were invited to interview by month end. 4 people
were appointed in October against planned freelancer replacement roles and 1
further offer was made for which an acceptance is being awaited, all of which
relate to Development. In other Pathway areas, 1 freelancer has converted to
ICL permanent status and another freelancer is planned for a quick release, as
an existing permanent member of staff will assume his responsibilities. It was
also decided to release a further 6 roles into the replacement plan making 26 in
total. The lack of suitably qualified candidates, both internal and external means
this exercise demands a great deal of effort and persistence by both the
personnel team and line managers. So far a good start has been made which
needs to be built on.
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ICL Pathway Organisation & Personnel Report Ref: PA/REP/OSS
Version: 1.0
Date:__ 08/11/2000
° 2 e-Applications' Assignees agreed to extend beyond their end date in order for
2 freelancers to be released with notice, achieving cost down.
° The requirement for Technical Support Product Specialists for Customer Service
is still outstanding. 7 CVs were forwarded for consideration of which all were
invited to interview. Disappointingly, only 1 offer was made, leaving 2
requirements outstanding, which may be resourced by freelance staff in order to
avoid risk to the live estate.
New Business
. ERA. The current situation is that 8 people are deployed on ERA and this is
planned to increase to 12 during November. All these 12 will be covered by a
new CCN.
° Network Banking and EFTPOS. No resourcing activity occurred on either of
these areas. However work will be carried out through November to build the
team, it is expected that the initial team will come from within the existing
resources on Pathway.
° 15 people left the project during October, including 8 planned releases of
Freelancers
Freelancer Replacement Progress to date
Date No working on Pathway
31/10/00 156
01/11/00 __150 .
01/12/00 Forecast 136 t
01/04/01 Forecast 62 &
4
° The accommodation plan was reviewed and significant progress has been made.
Area F4 became vacant as planned and has been released to Group. It has now
been re-occupied by another part of the company. The relocation ofa team of
testers from E-block has allowed this space to be released and it has been agreed
to consolidate a development team based in Bracknell from its current location
in Annex 2 to G74 on the Ground Floor. The vacant space in Annex 2 has been
allocated to another part of the company who have.a requirement.
° A review of the progress of the Personnel and Resourcing department towards
meeting its: objectives regarding ISO 9001 took place. Progress was generally
satisfactory. A number of new actions were identified and action is in hand to
achieve them in time for the next review in November.
. A significant amount of work was undertaken in connection with the updating
of the ICL Pathway disaster recovery plan. It was necessary to collate and
provide up dated personal information on all people working on Pathway. This
was achieved and in addition the parts of the plan specific to Personnel were
updated and agreed.
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ICL Pathway Organisation & Personnel Report Ref: PA/REP/OSS
Version: 1.0
Date: 08/11/2000
3 ISSUES
The Freelancer replacement plan is very aggressive and requires e-Applications to
supply people no later than January 2001 to effect a safe handover of tasks so that the
1* April target figure can be achieved.
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FUJ00058195
FUJ00058195
ICL Pathway Post Office Client Report Ref: PA/REP/OSS
Version: 1.0
Dare: 08/11/2000
The Post Office - Client Director’s Report
1 MONTHLY SUMMARY
PO have selected Cap Gemini Ernst Young as IT partner for the GGP/ILAP programme.
We await the results of the eBusiness Services procurement ~ delayed a further 3 weeks.
2 PROGRESS
G
(a)
P
PO have selected CGEY - the ICL-KPMG debrief is Nov 7".
°
ES
(PP
ISD are still failing to complete the trial/interim Peregrine-based asset management
service.
Despite this, PO have signed the Licence and Resources contract as proposed by Joe
McKenna.for the Component Managed Service.
e-Infrastructure - Progress by Steve Reay IT Consultancy Account Manager included a
meeting with the Platform 2000 PO team and the start of a full sales campaign to be
planned out in November. The PO are listening to what we are saying about migration
to W2K, verification and rollout issues by modifying their approach.
e-Business
The ITT for a "inanagement of change and eServices partner" was issued 7" September;
e-Innovation responded 29" September. PO are seeking to select a panel of suppliers
covering SI, technologies, software development et al. Work Packages will then be
competed.
PO have been following up with niche suppliers. We have been informed that decisions
are now delayed for a further 3 weeks - no other information is forthcoming.
OSS - One Stop Shop. Current MC performance slowly improving and Mark Newall
is busy trying to re-build confidence. PO have decided to select a single supplier from
ICL and ComputerCenter, and have issued an RFP for response by 24 November,
decision by 22 December.
OJEC $173 Consultancy. Initial OJEC response submitted 13 October for a wide
range of IT consultancy services.
OJEC $179 Storage. OJEC replied to by HPS.
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ICL Pathway Post Office Client Report v Ref: PAIRENOSS
ersion: 1.0
Date: _ 08/11/2000
3 CURRENT CRITICAL PROBLEMS
SMPP
This project is now under Lee Laver who has reported that the SMS and SRT Gateway
development was still NOT closed despite a project plan which Joe McKenna had
committed to of closure by 13/10. LL is sympathetic to the “history” of this project but is
at great pains to point out that Kevin Brown and end-user patience is becoming rapidly
exhausted. Practically, a significant sum had been spent on the physical internal audit and
this data was still unavailable to the Help Desk, and was becoming out of date. He
complained that they were unaware of the next actions, lack of communication etc etc.
Tom Lane ISD Account Manager for PO has taken the action to update LL with a status
report Tuesday 7 Nov (and ongoing).
WDM Worldwide Despatch Manager - is a project within One Stop Shop, which involves onsite
delivery by MC and installation by ISD in PO’s Parcelforce customers. An improved PO review
took place with Tom Lane and Mark Newall present but the combination of poor engineering
installation effort (ISD) and poor configuration work (MC) is still causing SLAs to be missed. Chris
Burton (ISD) could give no assurance that things would improve.
4 ISSUES
Kate Robinson has decided to leave ICL to take up teaching.
5 COSTS
Nia
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