FUJ00078051
FUJ00078051
ICL Pathway Programme Monthly Report Ref:PA/REP/052
Version:1.0
Date:09/08/2000
Document Title: ICL Pathway Monthly Report — July 2000
Associated Documents:
Reference Vers Date Title Source
(1) 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 Managing Director’s Report v Ref. PAREPIOS2
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Date:09/08/2000
Managing Director's Summary
1 PROGRESS AND ISSUES
Generally good progress is being made, although there are still significant pressure points.
We are now at crunch time on CSR+. Our systems and processes are currently holding up
well as we continue to increase the number of live Post Offices.
Rollout is on track. We have now migrated over 9000 post offices (50% of the estate) and
are achieving in excess of 310 implementations per week. We are about a week ahead of
plan. We have trained in excess of 30000 Post Office staff. This performance is recognised
by PO and relationships are developing positively although there are still significant scars.
Weekly service performance is a key issue and recent problems with Help Desk service
have significantly dented PO confidence. However, I am pleased to report that OSD service
levels are now much improved and we are back on track with reasonable SLA
performance. The poor service in Q1 has cost ICL over £200K in penalties. It is intended to
remove the Red Alert by end July once we have demonstrated consistent performance. It
will take week on week, month on month good performance to fully recover the confidence
of PO Directors.
CSR+ quality is behind where we would like it to be and is being tightly managed through
this critical phase. This is a major end to end software release with big functionality
additions. Latest test results show that we are on a knife-edge. PO User Confidence Trial
(UCT) has been successfully passed as a result of their decision not to request a second
UCT. However, there are a large number of Pinicls outstanding from our own testing cycles
and it would be foolish to move to Pilot phase unless we are confident of performance. Pilot
is currently scheduled for 14th August in 300 offices. However it also includes a significant
upgrade of the central software which will impact the whole of the 9000+ live estate. PO
decision on full roll out of CSR+ is planned for 6th September assuming we proceed with
Pilot.
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 has been released. It
is directly critical of PO for not moving quickly enough into new business streams. It is also
very supportive of Banking including the Social Bank and of using the post offices as e-
gateways into Government services. The report acknowledges the investment in Horizon as
a platform for developing PO business and should assist us in our quest for incremental
business.
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1.2 NEW BUSINESS
We are now engaged in joint working groups/discussions on Network Banking, EFTPOS
and ERA (targeted at reengineering PONU processes and systems to save 20% of the total
PONU costbase).
Progress on significant e-commerce initiatives proves difficult with lack of momentum in the
PO. We have now met with Messrs. Wheelhouse and Dykes/Sweetman. They all
acknowledge the need for fast co-ordinated action but are awaiting the initial
recommendation from the two newly appointed MD's before committing to any real action.
We are trying to gain commitment to an SEP in a Q3 timescale.
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. In conjunction with Escher, we have
secured a £620K feasibility study (Network Banking Proof of Concept) for the production
and evaluation of an e-enabled counter banking approach. This could lead to considerable
additional business.
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 have
secured a £400K consultancy contract that places us at the heart of this initiative, together
with Sema and Deloitte Touche.
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1.3 NATIONAL AUDIT REPORT
A formal draft copy has been issued to Keith Todd and others for quick comment with a
view to NAO issuing the report before the summer recess. The final document is probably
as good as we could have hoped for.
1.4 PRESS/INTERNAL IMAGE
There is evidence of an improved internal and external image of Horizon. We are already
seeing more positive press comment and PONU are supportive of raising the image within
Post Office. We are seeking PO Director level agreement to a joint press release to mark
the 10000" post office and the release of CSR+.
1.5 FINANCE/COMMERCIAL/BUSINESS PLAN
Please see separate Finance Director's report.
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ICL Pathway Development Report y Ref: PAIREPIOS2
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Date:09/08/2000
Development Report
1 MONTHLY SUMMARY
e The maintenance and support load on the development team continues to reduce with
CSR becoming very stable. We anticipate this stability being reversed for the first few
months of running CSR¢+ live.
e The correspondence server upgrade in the data centres designed to provide extra
capacity has now been completed satisfactorily.
e The sixth (audit) cycle of the Business and Technical Conformance testing completed
on the 14" July achieved a 97% coverage and an improved pass rate of 97% against
the 23,985 scripts executed.
e Horizon completed the formal User Confidence Test successfully on 21% July as
planned and consequently did not request a further cycle. The witnesses target tests
which followed between 24" — 27" July to demonstrate clearance of certain high priority
incidents were only partially successful. In parallel, we ran a regression test of the live
pilot software baseline and this showed signs of instability due to the amount of fixes
applied and functional enhancements targeted directly at this version.
e The volume target testing was completed in the required timeframe but it identified two
issues that required resolution before the migration of the Data Centre could take place.
e Asaresult of the events described above we recommended a delay of 3 weeks before
commencement of the live pilot. This would give us the time necessary to resolve the
six outstanding high priority incidents and carry out further regression testing.
* The mobile and satellite options continue to progress according to schedule although
we are aware that our supplier may be experiencing difficulties with the casing for the
mobile unit which may impact the 8" January 2001 roll-out date. The first satellite
installation is due to take place 1$' November 2000.
e Development of the ‘Maintenance Release’ remains on schedule and the first delivery to
release integration is due 4" September. Distribution to the live estate is planned to
occur in late January.
* Work on preparing for the ISO 9001 certification continues at a pace in all the
development departments. We are not aware of any major issues in the design and
development domains.
2 PROGRESS
« The sixth B&TC testing cycle (Audit Run) was run against the UCT software baseline
and exercised 97% of the scripts and achieved a 97% success rate. Only 643 script
lines of the 24628 (2.6%) were deferred. This is the lowest ever achieved.
« The customer completed their User Confidence Testing (UCT) on 21* July and due to
positive results found did not request a further cycle. They did however ask to witness
certain high priority fixes applied to the live pilot baseline during 24" — 27" July to
produce the evidence required for the Release Authority Board. Unfortunately, we
encountered several build and code problems which indicated that we had introduced
some system instability.
e In parallel with this we were running a regression cycle against the live pilot software
baseline (14" July — 2"? August) and completing the targeted volume and performance
testing of the APS Host/Agent system (18" — 28" July).
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e The results from all the above cycles suggested that our strategy to focus on stabilising
the UCT baseline and try to keep the amount of change in the live pilot baseline down
to a minimum failed. We were left with 6 major incidents that had to be cleared before
we could enter the live pilot with a high degree of confidence. Accordingly, we
recommended to Horizon that we delay the start of pilot by 3 weeks. This would enable
us to resolve the issues identified and run another regression cycle against the live pilot
baseline (11 — 23 August).
e Inthe revised plan, the Data centre is to migrated during the weekend 26"/27" August.
The pilot outlets will begin operating the CSR+ software from 4" September and the
migration of the existing estate will commence 25" September.
e Development of the Maintenance Release (M1) is progressing according to plan. The
first handover into the integration stage is due 4"° 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.
e System testing of the interim solution for the OCMS system has been going well.
e The proof of concept project for network banking is nearing completion. The formal
report and presentation has been delayed by 1 week to allow more time for evaluating
the findings.
* Work continues on the set of management and corrective action plans in preparation for
the ISO9001 accreditation.
3 COST DOWN
e No new initiatives have emerged this month.
4 CURRENT CRITICAL PROBLEMS
e We must be able to demonstrate that we have satisfactorily resolved the seven major
incidents to the Release Authority Board schedule to meet 18" August. The latest
position is encouraging, two have moved on and have now been downgraded, three are
fixed and fixes for two are undergoing tests.
« We will incur further delays if we encounter a major incident during the live pilot
regression testing which cannot be resolved, either before the Data Centre is scheduled
to be migrated (26"/27" August) or the outlets scheduled to be ‘committed’ (3
September).
5 ISSUES
« The ISDN element of the OBCS foreign response time is non-compliant with the
contracted requirement. The solution has been defined and the changes will be
implemented in the Maintenance Release scheduled for January 2001.
e 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.
e We are still experiencing a number of non-polled outlets in the live estate. This impacts
our file delivery service level agreements because the transactions cannot be harvested
from these outlets in the required timeframe. The current thrust is to ensure that we
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have resolve all the system issues and to improve the quality of the various reporting
facilities available to customer services.
* 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 their 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.
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/052
Version:1.0
Date:09/08/2000
Commercial & Financial Report
1 FINANCE
Financial performance continues to track better than plan. In particular, roll out continues to
run ahead of plan. This has had a beneficial effect on revenue and hence profit. Cash
costs have at the same time been held consistently below plan, month on month. Cash
flow has been further improved by careful control of working capital.
1999/00 ended with a favourable outcome against Budget and Business Plan on all counts,
with revenue at £230m and Pathway PBT at £39.4m. PwC declared themselves entirely
satisfied with the project accounting treatment (specifically, revenue accrual and margin
recognition) and detailed audit.
Good progress has been made towards cost down. Project-to-date cash cost savings
amount to some £26m (excluding phasing improvements), of which £19m are saved
subcontractor termination costs. A further £22m of cost reductions have been secured
from subcontractors over the life of the project as compared with the May 1999 Business
Plan. Areas of cost underestimate have also been identified, the net effect being broadly
neutral, but the plan is now much lower risk than it was last May. £68m of the cost savings
assumed in the May 1999 Business Case (total assumed £115m) have been secured. The
main item still to secure is the much reduced resource level assumed after completion of
CSR+.
Important early progress has been made in establishing the new business revenue stream
although it is too early to tell whether the current plan (some £60 million of new business
above the core contract to 2005) is set at the right level. Early customer commitments
mean that we are currently on track to drive out an ‘Option B’ approach (emphasis on new
business as well as cost down rather than Option A which was all about cost down) but this
will need to be kept under close review. In particular, resources will have to be very
carefully managed to match supply to demand.
The Business Plan continues to show a £15 million overall project loss at Group level. A
number of significant risks have been successfully managed out at low cost over the past
six months. The most significant near term risks are currently around CSR+
implementation. If these can be successfully dealt with, the risk profile of the project will
improve significantly and the dependency on task to offset risk will come down to quite
modest levels. Currently task stands at £21m against risk contingency at £23m.
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ICL Pathway Commercial & Financial Report Ref:PA/REP/052
Version:1.0
Date:09/08/2000
2 COMMERCIAL
The status generally on change control continues to be good (in sharp contrast to a year
ago). We now have a consistently low CR/CCN backlog, high resolution rate, few issues
and a high hit rate on chargeable change.
Initial CCNs to a value over £1m have been signed for Network Banking and Project ERA.
As always, there are a number of contractual matters to resolve, e.g. around service level
agreements, training, the final roll out milestone, help desk, and the like. These are all ‘in
the normal course of business’ and, although not trivial, are under control. The joint
Contract Administration Board oversees the resolution of such issues. They tend to be as
much operational and practical as commercial and contractual. With selective involvement
of technical experts and lawyers as necessary, the outcomes are generally regarded as
reasonable and workable by both sides. The aim is to achieve a win/win, and there have
been notable successes. Since exiting from extended Acceptance, we have not had to
make any commercial concessions of significance.
Agreements to Agree have been virtually eliminated. There is only one left which may still
cause us some difficulty (internal service levels), but there is no need to resolve it quickly
and we are playing it long. Notably, CCNs for mobile terminals and satellite
communications have now been approved. These complete the solution definition for CSR+
and infrastructure implementation.
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ICL Pathway Commercial & Financial Report Ref:PA/REP/052
Version:1.0
Date:09/08/2000
Planning Case: — 1999 200 200 200 2003 2004/ I Tota Total
SSNs 1 o WW 2 I 1 Project
With new 2000 200 200 200 2004 200 I To II Jul] MaI No
included a4 2 3 5 go II y I y9 I v9
FINANCIAL SUMMARY
REVENUE
Base Contract 2 230 205 118 118 118 111 900 II 902 I 89 I 90
7 I 0
New Business 0 0 3 12 22 16 12 64 64 0 I 44
Total 2 230 208 130 140 134 123 I 964 II 966I 89 I 94
7 4
PBT before extraordinary
item
Base Contract -2 20 22 15 13 17 19 107 II 105} 13 I 10
2I5
New Business 0 0 0 2 5 0 1 8 8 0 9
Total 2 20 23 17 18 17 20 115 II 113} 13 I 11
2 4
Extraordinary item - 19 0 0 0 0 0 19 - - -
182 163 I 18 I 16
2/4
Pathway PBT - 39 23 17 18 17 20 134 +50 I -50 I -50
184 =
Group intercompany 2 8 6 4 5 5 5 33 35 I 35 I 35
profits
PBT - ICL GROUP - 48 29 21 23 22 25 167 -15 I -15 I -15
182
Project PBT % before 9% 11% 13% 13% 13% 16% I 12% 12 I 15 I 12
extraordinary 1%! %
Margin % on New Business 17% 14% 13% 11% 14% I 13% 13 20
% %
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ICL Pathway Commercial & Financial Report Ref:PA/REP/052
Version:1.0
Date:09/08/2000
PROJECT CASH FLOW
after interest
Discrete - 7 -23 92 36 44 48 203 -50 I -50 I -50
253
Cum - -246 -269 -178 -141 -98 -50 -50 -50 I -50 I -50
253
FUNDING
Equity 20 152 152 152 152 152 152 152 II 152} 15 I 15
2 2
Year end borrowings - 94 -118 -26 10 54 102 -118 - - -
233 118 I 23 I 23
2 2
B/(W) May 99 Business 1 34 9 -3 4 1 0 4 34 I 0 0
Case
Peak cash requirement - -310 -306 -191 -175 -137 -93 -310 - - -
253 306 I 34 I 32
2 1
NET PRESENT VALUE - - -
AFTER TAX 75 I 77 I 76
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Version:1.0
Date:09/08/2000
Marc 1999 200 200 200 2003 2004/ I Tota Total
h / Oo q 2I / I Project
199 I 2000 200 200 200 2004 200 I To II Jul] Ma] No
9 1 2 3 5 I go II y I ya I v9
cu oo I 9 I 9
m
FINANCIAL SUMMARY
REVENUE
Base Contract 2 230 205 118 #118 118 111 900 II 902 I 89 I 90
7 0
New Business 0 3 12 22 16 12 64 64 I 0 I 44
Total 2 230 208 #130 140 134 123 964 II 966 I 89 I 94
7 I 4
COSTS - Base contract
Opex - Base Contract 199} 112 143 82 77 79 74 568 II 766 I 73 I 75
1 9
Opex - New Business 0 0 2 10 16 12 10 50 50 0 I 35
International 2 ie) 0 3 0 2
Treasury recovery 8 8 8 I -8 I -8
Liquidated damages - 0 0 1 2 1 1 1 6 6 12] 8
SLAs
Sub-total 201 104 146 94 94 93 85 617 II 818 I 73 I 79
5 6
Depreciation - Base 32 18 32 32 25 5 0 111 143 I 14 I 14
contract 5 I 2
Depreciation - New 0 0 0 1 3 1 5 5
Business
Utilisation of BPS -25 =-19 0 -2 -2 -1 -49 -49 I -68 I -50
Provisions
BPS subcontractor 8 0 8 8 I 27I 9
termination
Losses on forward 1 2 0 0 0 0 4 4 3 4
exchange cover
Interest 18 1 9 3 1 -2 5 18 36 I 38 I 43
Risk contingency (opex) 0 5 6 5 4 3 23 23 0 I 17
Cost Task 0 1 -2 5 6 7 -21 -21I 0 I -17
Transfers (to)/ from WIP - 92 10 -19 2 21 27 133 - - -
247 114] 11] 11
4 4
PBT before extraordinary -2 20 23 17 18 17 20 115 II 113 I 13 I 11
item 2 4
Write off of BPS spend to I 114 0 114) 11] 11
date 4 4
Provisions for BPS spend 68 0 68 I 68 I 68
not yet incurred
Release of excess BPS -19 ie) -19 -19 I 0 I -18
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Version:1.0
Date:09/08/2000
provision
Pathway PBT - 39 23 17 18 17 20 134
184
Group intercompany profits [2 I 8 6 a 5 5 5 6 33
PBT - ICL GROUP - 48 29 21 23 22 25 167 -15 I -15 I -15
182
Project PBT % before “9% 11% 13% 13% 13% 16% [12% II 12 I 15 I 12 I
extraordinary h\%I %
Margin % on New Business 17% 14% 13% 11% 14% I 13% 13 I N/ I 20
% Al%
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ICL Pathway Commercial & Financial Report Ref:PA/REP/052
Version:1.0
Date:09/08/2000
COST DOWN INITIATIVES ASSUMED IN MAY 1999
With new business included
fm Cost reductions assumed in May Business Case
Project forecast Committed to date Gap to close
Manpower related costs
Percentage of freelancers reduced from 37% to 15% 19.0 4.0 15.0
Resource shortfalls to Plan/ recruitment lag 8.0 8.0 0.0
Post CSR+ Development headcount reduction 22.5 5.0 17.5
49.5 17.0 32.5
Communications costs
Line connections made every 30 minutes instead of 15 13.0 13.0 0.0
Price reductions of 2-4% p.a. 11.0 7.0 4.0
24.0 20.0 4.0
Data centre and product support savings (no BPS)
Data centre operations and OSD support 11.6 9.0 2.6
Product support 14.2 12.0 2.2
Help desk calls
Steady state call rate down from 4 p.m. per outlet month to 2.5 (cf. 2.8
to 1.9: see Cost Up) 11.0 5.0 6.0
OBCS software licence costs (Oracle)
Annual fee eliminated by bringing product within POCL licence 4.7 4.7 0.0
Gross savings assumed 115.0 67.7 47.2
Memo
Status in December 115.0 50.0 65.0
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Version:1.0
Date:09/08/2000
TRACK OF COST MOVEMENTS SINCE MAY 1999
With new business included
£m Variances from May Business Case - B / (W)
Project forecast Committed to date To go' projection
Cost down initiatives since May 1999 62.8 49.1 13.7
Cost increases since May 1999 69.2 46.4 -22.8
Inclusion of New Business - contribution basis
Additional revenue 64.1 64.1
Additional cost - marginal -55.8 -55.8
84 0.0 8.4
Inclusion of contingency for Risk -23.2 -23.2
Inclusion of Task 21.3 21.3
Net improvement since May 1999 0.1 2.7 -2.6
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ICL Pathway Commercial & Financial Report Ref:PA/REP/052
Version:1.0
Date:09/08/2000
COST DOWN INITIATIVES SINCE MAY 1999
W ith new business included
Variances from May Business Case - B /(W): includes margin on
fm additional revenue Jan May
Project forecast itted to date Gap to close
BPS termination costs
Girobank 10.0 10.0 0.0
DeLa Rue 75 7. 0.0
Other 17 17 0.0
19.2 19.2 0.0
Extended warranty terms on equipment 7.0 7.0 0.0
Substitution of laser back office printer 5.0 5.0 0.0
RPI settlement with OSD 4.5 4.5 0.0
Less: increased capital cost of extended warranty “1.6 “1.6 0.0
Less: increased capital cost of laser printers over ink jet -1.0 -1.0 0.0
19.6 19.6 0.0 48 68
Communications costs
Line connection intervals set to transaction count: equivalent
to 60 minutes instead of 30 6.0 6.0
Satellite instead of frame relay for non-ISDN 3.0 3.0 0.0
9.0 3.0 6.0
Capital costs
Riposte licence fee reduced (APS) 0.7 0.7 0.0
PC price reduc nof4% - 6% 1.7 1.7 0.0
Less: POCL credit note re. 750 counter redn. -0.5 -0.5 0.0
1.9 1.9 0.0 145 140
Overheads
Professional fees/ bid cost repayments 2.9 2.9 0.0 9 12
Pre-sales work pared back 3.0 1.0 2.0
5.9 3.9 2.0
Interest costs reduced on improved cash flow profile 2.0 1.0 1.0
Liquidated damages forecast reduced 5.2 0.5 4.7 6 12
Gross improvements identified since May 1999 62.8 491
tatus in December 59.0 33.0 26.0
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Version:1.0
Date:09/08/2000
ADVERSE VARIANCES SINCE MAY
W ith new business included
£m Variances from May Business Case - B /(W)
Project forecast Com mitted to date ‘To go' projection
Manpower related costs
Development resource level held higher post CSR+ to enable new
business 6.0 2.0 4.0
Freelancer dependency higher, contractor rates higher 5.0 3.0 2.0
Increased operational support (CS) 4.6 2.0 2.6
15.6 7.0 8.6
Maintenance and support costs - test environments 5.0 4.0 1.0
Systems management costs were understated 14.6 8.0 6.6
Help desk useage was underestimated 11.7 4.0 17
Comms useage - downloads etc. 20.3 12.0 8.3
Non - ISDN outlets increase (to close to 500) 7.0 5.0 2.0
ted costs
g event 0.7 0. 0.0
xtended roll out pause around Ch 1.5 1. 0.0
Delay to CSR+ (3 months) 4.0 4. 0.0
TIP charges 1.4 0. 1.2
7.6 6.4 1.2
Other -12.6 0.0 -12.6
Net adverse variances since May 69.2 46.4
Memo
Status in December 76.0 24.0 52.0
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W ith new business included
im og projection
Unallocated task - candidates to close gap
Rationalise certain Pathway activities, e.g.
Testing - streamline systems test through to OTT (CS) testing 2.0
Design and development - streamline lifecycle processes post CSR+ 4.0
Business development/ business requirements/ TDA consultancy - streamline/ improve utilisation 1.0
Staff functions - devolve to line units/ streamline 0.5
Rationalise certain Pathway and OSD services, e.g.
Combine SSC (Pathway) and SMC (OSD) 4.0
Service Management - eliminate OSD layer into Pathway 1.0
Rationalise certain Pathway acti sinto ICL, e.g.
Implementation into e-Apps or Large Projects (£0.5m already assumed in Budget baseline) 1.0
B& TC testing into e-Apps or Large Projects 3.0
Recovery plans - recover half forecast overshoot against original planning assumptions
Systems management 3.3
Dependency on freelancers 1.0
Help desk useage 3.9
Comms useage - downloads ete. 4.2
Renegotiate banking lines to reduce the interest margin down from 0.7% to say 0.2% (Fujitsu) 1.9
Reduce SLA remedies (LDs) by, say, one third 2.1
(Profit im provement opportunity)
Total Unallocated task 21.3
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Version:1.0
Date:09/08/2000
PATHWAY RISKS FOR INCLUSION IN PATHWAY CONTINGENCY
Planning Case: Comment Prob'y Total
Option B
ASSET CO. CAPITAL SPEND
PC compatibility 4: last time buy Reduced limits agreed 0% 1.0
made early would require a with POCL hee
contingency stock of 1000 Hike
additional PCs
CAPITAL SPEND - GROSS RISK 1.0
CAPITAL SPEND RISK - WEIGHTED BY PROBABILITY 0.0
ASSET CO. IMPLEMENTATION
SUBCONTRACTS
PC compatability 2: Increased costs 0% 2.0
Availability causes a 1 month Eis q
break in rollout (September 2000)
PC compatibility 5: new PC Increased costs
delivered late on in the roll out
would require an extension to
Celestica etc. subcontracts 7
Two week delay to national roll Delayed revenue forNROI 0% 0.5
0.5
out restart. milestones 2 and 3.
POCL want additional time to Loss of interest.
monitor reconciliation and Increased Implementation
progress Ref Data Agreement _ costs.
Specification. Be
ntl: remedial costs. No longer required and 10% 0.7
Additional costs to mitigate / stood down hee
remedy inadequate infrastructure
quality:
4. Man in a van
2.Additional installation teams y
Installation beat rate: Low risk now 0% 2.5
Only 250pw can be sustained. se
Implementation tail: site prep. Assumed in base case
ntl & Pearce contract extended by
3 months (+ internal staff) eee
Implementation tail: Assumed in base case 50% 0.8
Installation tail from March 2001 ese
extended by three months:
mobiles, satellite, etc. ie
POCL reduce beat rate or stop Increased Implementation 20% 1.5
roll out: Business Service costs - assume 2 months. z
Management, or Help Desk
performance, or issues around
CSR+ migration
0.5
Training occupancy: below Increased number of 40% 0.5
average 6 target, results in need courses, and an argument
for additional courses with POCL & KP as to
blame and cost
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Headcount cost down: not able Increased costs and delay 30%
to manage down the headcount in
absolute or mix
ICL Pathway Commercial & Financial Report Ref:PA/REP/052
Version:1.0
Date:09/08/2000
apportionment Ws
Slip to achievement of final Interest loss .5, increased ov 0.7
rollout milestone: tail, satellites, costs .2 y
mobiles delay by 1 month the é
99% achievement
IMPLEMENTATION - GROSS RISK 10.2
IMPLEMENTATION RISK - WEIGHTED BY PROBABILITY 1.2
OPCO OPERATING SPEND
Develop PC compatibility 1: Increased costs 0% 1.0
ment Replacement pc requires 3 é
substantial development work
(new software, validation &
support). Possible delay to CSR+. Z
Additional work for NRO restart Delayed reduction in 0% 1.0
causes a 1 month delay to Development staff levels.
CSR+. Increased costs.
POCL require additional Ref Data,
reconciliation or Help Desk work
which diverts resource from CSR+
and results in a delay. :
One month delay to CSR+ Delayed reduction in 40% 2.0
programme: Development staff levels.
Due to eg rig build, quality, Increased costs over the
Riposte 6 intercept slowed reduction already
assumed. s
Flip of CSR+ general release = Delayed reduction in 30% 2.0
into 2001: Development staff levels.
Combination of factors - NRO Increased costs. Revenue
work, quality, rig build, pc loss.
compatibility cause sufficient slip
to push CSR¢+ into 2001 eS
Cost recovery processes not Reduced margins 30% 5.0
adequately implemented:
Time recording controls are
inadequate to support charges/
plan and control resourcing. L
System architecture/ structure Increased costs 0% 5.0
causes significant rework Ls
activity in R3:
Re-development required to
address outstanding shorcomings
eg. SLAs ee
Correspondence server re-configuration work not 0% 1.5
completed in time: stops roll out for one month
Loss of key staff: uncertainty Increased costs and delay- 30% 4.9
over Option direction results in knock ons to recruitment,
key staff leaving: backfill by more SLAs, help desk, CPs
freelancers, re-training, and delay
15.0
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Ability to recruit key skills to Margin loss at 25% on, 50% 4.0
fulfil new business say, 20% of total revenue
commitments: impact is loss of
margin through lost business
Custom PC compatibility 3: CM, Tivoli, Increased costs 0% 1.0
er CS field (spares, etc.) i
Services Increased CS cost ongoing as a
result of running 2 pc
configurations
CSR+ quality results in Increased costs 25% 3.0
increased support costs: ile
High level of Help Desk calls,
fixes to be applied Z
Remedial work to sustain SLAs: Increased costs 30% 2.3
Development required to reduce
SLA LDs or to satisfy SLA
termination conditions.
E.g. SLA measurement, OBCS
transaction times ee
Cash account discrepancy Increased payments to I 50% 2.9
payments to POCL: POCL 4 :
Discrepancies occur at a higher
level than planned or require
remedial work:
Assumed attributable to
Reference Data process rather
than code errors. y
Help Desk workload (1): Increased costs 20% 4.0
Higher than in plan because of I
poor turnover training
Communications costs: Increased costs 20% 5.7
Eicon problem (or similar) ARG
continues resulting in comms
costs higher than in plan Lege
Help Desk workload (2): Higher £1m additional cost built I 30% 0.5
than in plan because of poor backinto CS Budget for help
fill training re. APS smart & LFS desk costs. This is on top.
Buyout of SLA conditions - help Expectation of a deal. 40% 1.0
desk and transaction times :
CSR+ migration: 2 week Increased costs/ delay 60% 1.5
firebreak to apply CSR+ ee
(additional fallow payments/ delay
to end of roll out)
Busines New Business margin shortfall: Assumption is that 20% of 40% 9.7
s unable to charge for all the work planned work is not
Develop which has been resourced/ done: carried out/ completed,
ment additional risk over the under- and that it is only possible
utilisation assumed to save 25% of the
planned costs: hence the ~
margin loss is 75% of 20%)
of planned revenue
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Date:09/08/2000
New Business volume shortfall: £20m revenue risk at 50% !/ 40% 10.0
unable to develop fullrevenue — margin loss on
stream, with loss of contribution tocontribution basis
fixed costs
Aggregation - eliminate double counts
OPERATING SPEND - GROSS 79.9
RISK
OPERATING SPEND RISK - WEIGHTED BY 22.0
PROBABILITY
GROSS NOMINAL RISK
TOTAL ASSESSED RISK
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ICL Pathway Customer Requirements Report Ref:PA/REP/052
Version:1.0
Date:09/08/2000
Customer Requirements Report
1 MONTHLY SUMMARY
The Performance and Innovation Unit (PIU) proposals for pilot projects is in hand and will
go to POCL on 10/8. The ERA business analysis work is underway. All CSR+ release
business as usual dependencies are being covered. The Mobiles & Satellites holding
factors for roll-out completion have been cleared.
2 PROGRESS
2.1 NEW BUSINESS
2.1.11 NETWORK BANKING
Because there is no customer funded requirements activity running during the Network
Banking Engine procurement and the Pathway Proof of Concept project, the main task has
been document review and origination. The following were reviewed:
e POCL Requirements & Solutions draft F (for internal POCL use only)
e Pathway and Escher architecture documents
e PoC draft report
* Two sets of NBE vendor questions and answers
New documents issued included:
* Acompetitive NBE architecture based on RS 6000
A competitor analysis
A longer term Pathway architecture
An alternative architecture cutting out the NBE
An initial risk register
We also prepared for a Network Banking end-to-end review with POCL, particularly
concerning reconciliation requirements, but this was cancelled by NBU at the last moment.
eeee
2.1.2 ERA
Alan Paterson and Mike Chawner started on the ERA project, based out of Chesterfield, on
16/7. We now know this was later than should have been the case because most of the
POCL workshops were complete and the opportunity for business analysis input into the
requirements was passing.
Much of the input to the business requirements, and hence the shape of the new Pathway
requirements, is being influenced by our competitors. There are currently five from
Deloittes, four from SEMA, two from FI, in addition to the ten or so Post Office staff on the
project. These numbers dilute the influence of the (three usual) ICL staff even though the
analysis centres on the re-engineering of the Pathway solution.
2.1.3 POCL SERVICE DEVELOPMENT PLAN
No activity.
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2.1.4 PIU REPORT
The Network Banking team has produced two documents, whilst waiting for Network
Banking to come back on to the agenda. These are in response to the Performance &
Innovation Unit (PIU) report seeking ways of replacing the Post Office Counters business
that will be lost when Automated Credit Transfer (ACT) of benefits becomes more
widespread from 2003.
One was one a general Pathway response to the PIU proposals and a second detailing our
proposals for pilot opportunities. A presentation was also developed and given to POCL as
part of the discussion on PIU response actions. An initial internal response against the
POCL “11-bundle” wish list was generated and this is in course of elaboration to a proposal
that will be provided during the week of 7/8 and will help POCL make its response to central
government.
2.1.5 CARD SYSTEMS
ICL is sub-contractor to EDS in the bid for the “Youth Card”. We sent documentation on
CMS to the team involved, but their initial feelings are that CMS appears too specific to
benefit payments. We have offered to go and talk to them.
2.2 CSR+
2.2.1 ACHIEVING SLAS
We have produced a Change Proposal (CP) to address the major issue Customer Service
has where the office is not being harvested because one or more counters have become
disconnected, typically because they are powered off or not POLO’d following power being
restored after a cut.
The Tidy Closedown facility, which was put into CSR+ to help bear down on users shutting
counters off in fixed outlets, was forced through the CCN process. We will now be able to
document these wilful switch-offs and can therefore expect these to disappear from the
statistics.
We have resisted a further attempt by POCL to call our TIP File Repair Facility into
question.
2.2.2 AP CLIENT MIGRATION
Specifications for migrating more AP Clients were put through and a disaster standby
facility for Girobank was proposed.
2.2.3 AP FILE DELIVERY
The cut in of migration depends on introducing facilities to allow Client files to be sent
according to customised schedules. This requirement has been developed and the CCN
produced.
2.2.4 QUANTUM/SPM
The CCN to licence the secure Siemens .dil for enforcing security of these smart cards at
the counter was forced through. Quantum is still not a first day player in CSR+.
2.2.5 OBCS
We produced the CP to change the statistics to be generated for OBCS local/foreign
encashment counting.
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2.2.6 SADD
A version 5.4 of the SADD, responding to 200+ POCL comments, was issued on 20/7.
There were a further 29 supplementary comments, now resolved, and a version 5.5 will be
previewed the week of 7/8 August and published on 18/8. This version will have been
maintained for CCN approvals to the date of issue and should correspond with the CSR+
system, which is due to be approved for release at the Release Authorisation Board on that
day.
2.2.7 RELEASE NOTE
An Appendix, in effect updating the year-old CSR+ Release Contents Description for the 80
or so significant CCNs that have been Approved in the last year, was produced for
incorporation in the CSR+ Release Note.
2.2.8 PINICLS ETC
Customer Requirements helped in the “scrubbing down” of the PinICL inventory to help
define what had to be fixed at the various stages of CSR+ and to evaluate new PinlCLs as
the release date approaches.
2.2.9 MOBILES & SATELLITES
The CCN for the Mobiles Configuration specification and introduction was approved and
the volume requirement of 340-349 units set by POCL. The Physical test was also
completed by POCL so all the holding factors on product line production have been
cleared.
The CCN for introduction of Satellite communications access method was approved.
Now that these two CCNs have been seen through it will be possible to complete the rollout
in Q1 2001. Customer Requirements will now withdraw gracefully from these areas of
endeavour.
2.3 ISO PROCESSES & PROPEL
John C has attended the Siebel release update session. He produced the Customer
Solution Life Cycle (CSLC) checklist to qualify new projects and maintain the Siebel entries.
He has reviewed the new Business Management System roles and processes intranet and
the associated Process Review Forum, the group that reviews the ISO9001 processes. He
has also contributed to the process that includes Customer Requirements input at Stages 3
and 4 of CSLC, functional and system requirements specification.
We have got John P through the scarce second part of Macroscope training, and Alan P
through the two-day Macroscope course on Business Analysis using ArchitectureLab and
OPAL techniques & software.
3 CURRENT CRITICAL PROBLEMS
None.
4 ISSUES
I believe we may need to look again at the commitment to ERA, particularly in terms
of sales objectives, earlier than we had planned. Our representation is strong for
our numbers but is entirely systems oriented. The opportunities appear to be
crystallising earlier than anticipated even though their delivery will be protracted.
Liam and I will discuss this before offering the team a proposal.
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Version:1.0
Date:09/08/2000
1
Customer Service Report
SUMMARY
Data Centre performance has been marred by problems with the Correspondence
Servers. These caused major failures for the transaction deliveries for
OBCS/HAPS/TIP. Significant numbers will show up as DAY B transaction failures and
are expected to result in high penalties. The problems are under investigation but in the
meantime a workaround has been initiated which requires SSC to stop and restart
Riposte twice a day.
The LRDP is now complete and the final report issued. The release of CSR+ data to the
live estate has been completed with time to spare.
There are currently issues within the APCM plan with resourcing for bespoke
developments. The bespoke interface for Northern Ireland Electricity is stretching APS
Host resources and the current view is that development will not be completed before
January 2001. Furthermore, BT has indicated that they may not have any resources
available during the next 12 month to perform tests of the new interface. The AP Client
Migration programme needs to be replanned to incorporate the changes required to
address these issues and there is a high risk that not all activities will be completed by
the end of March 2001.
There is concern over the amount of change currently being put into the Cl_4 baseline
to be used for the Live Pilot and the consequent risk to the successful running of the
system following the upgrade.
Following the successful trialing of the revised Non Polled Outlet incident management
procedures during early July, PON have now agreed to suspend the BIMS process and
accept updates to incidents via a summary column on the Non Polled Outlet report.
Remedies have now been calculated and submitted for Q1 2000 for Data file delivery
(£26,199.13), OBCS stops (£998.92) and System Service (£255,574.19 of which
£192,403.82 is recoverable from OSD).
OSD continues to work to achieve service levels and many improvements in SLA
performance have been achieved. The red alert has been downgraded to Divisional
alert for continued monitoring.
Reg Barton, Nick Crow, Wendy Kerrigan and Claudia Walker join the team on
14/8/2000 as Field Service Managers. Christine McKay joins on 21/8/2000. They will be
the eyes and ears for Customer Service in the live estate concentrating on Manager
Care visits and Outlet Problem Management.
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1.1.VITAL STATISTICS
Live Base as at 1% August 2000: 9814 Post Offices, 22,198 Counters
Cumulative from 1% December 1999
OBCS
Total number of payments to date 100,524,027
Total number of payments in July 28,858,272
Total value of payments to date £7,653,950,795.95
Total value of payments in July £2,140,997,022.43
EPOSS
Total number of receipts to date 162,773,795
Total number of payments to date 52,309,938
Total number of zero value transactions to date 12,369,038
Total number of receipts in July 37,312,683
Total number of in payments July 7,542,502
Total number of zero value transactions in July 2,934,795
Total value of receipts to date £8,984, 101,567.69
Total value of payments to date £4,739,326,163.42
Total value of receipts in July £2,301,609,748.09
Total value of payments in July £698,531 ,699.90
APS
Total number of receipts to date 50,423,968
Total number of receipts in July 11,936,285
Total value of receipts to date £1,083,691,935.86
Total value of receipts in July £325,775,004.05
NOTE:
Data from May 1999 will be published once analysis of archived Data Warehouse
data is complete (end of August 2000 target date).
The above data is monthly. Weekly data is now available on the Customer Service
web site at the following location:
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2 PROGRESS
2.1 OPERATIONS
2.1.1 AVAILABILITY MANAGEMENT
e Data Centre performance has been marred by problems with the Correspondence
Servers. These caused major failures for the transaction deliveries for
OBCS/HAPS/TIP. Significant numbers will show up as DAY B transaction failures
and are expected to result in high penalties. The Bootle Bootserver is currently
off-line for investigations into the recent failures.
* During July there were no major network incidents, although on Sunday 30" July
there was a fibre break affecting one half of the ATM service into Bootle. Due to the
network resilience, there was no impact upon service.
2.1.2 REFERENCE DATA
e The CSR+ LRDP is now complete and the final report has been issued. A number of
minor problems are outstanding but these should not cause any issue with signing off.
« The release of CSR+ data to the live estate has been completed with time to spare.
e PON data quality is still a cause of concern. PON have not yet been able to appoint a
problem manager.
2.1.3. POCL INTERFACES
e Adraft CP has been raised to start the LFS operational schedule earlier and avoid
excessive phone costs. This is still under discussion. POCL have raised a CR
concerning 6 or 7-day working in the weekly schedules, but this has not yet been
received by Pathway.
2.1.4 AP CLIENT MIGRATION
e The forthcoming release of Cl_4 is diverting attention away from APCM issues, resulting
in slippage across the patch.
e The current view is that the required functionality to deliver files 5 days per week
instead of daily will not be available before Q1 2001. So far, only 5 clients have been
confirmed which can be migrated without the 5-day delivery functionality developed for
Girobank, leaving a short window to migrate the remaining clients.
e The bespoke interface for Northern Ireland Electricity is stretching APS Host resources
and the current view is that development will not be completed before January 2001.
Furthermore, BT has indicated that they may not have any resources available during
the next 12 month to perform tests of the new interface.
« 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.
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2.1.5 PERFORMANCE MANAGEMENT
e Work has been proceeding on the confirmation of the short-term and the long-term
designs. It is planned to issue a draft end to end design document at the end of next
week and follow that up with a walkthrough.
e Resource has been devoted to addressing the live performance issue with the
Correspondence Servers. As an interim workaround, it has been resolved by reloading
Riposte twice daily on the Correspondence Servers in both Wigan and Bootle.
2.2 SUPPORT SERVICES
2.2.1 GENERAL
e SSC are performing the closure and reload of Riposte at 07:00 and 18:00 daily.
e Interim arrangements have now been put in place with TeamWARE for on-going
support of Crypto. In the medium term it is expected that the service will be provided via
OSD/E-Applications.
2.2.2 MAJOR RELEASE IMPLEMENTATION
e The Data Centre migration plan is now fairly stable and the upgrade of the OTT rig is
now due to start on Monday 7" August. The HAPS and TIP upgrade were merged into
the overall upgrade plan but this is currently being revisited due to the change of
upgrade date.
* Counter implementation planning continues with weekly reviews. Discussions with
POCL are ongoing and further discussions this week may change the migration
schedule.
e The amount of change currently being put into the baseline to be used for Live Pilot
seems to be slowing down. The problems that require urgent fixes are being reviewed
on a regular daily/weekly basis.
2.2.3 RELEASE MANAGEMENT
e 57 Release Notes for CI_3R have been raised over the reporting period and 26 have
been authorised for live. To date, 48 Release Notes for Cl_4 have been raised from the
system baseline document.
e Release Management has completed its move to the 6th floor in BRAO1.
« Rebecca Burger, Amanda Knight and Shadim Hussein (I.T.) have joined the team as
Release Controllers.
2.2.4 ISSUES
There is concern over the amount of change currently being put into the Cl_4 baseline to
be used for the Live Pilot and the consequent risk to the successful running of the system
following the upgrade.
2.2.5 METRICS
For the month of July 2000.
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Release Notes cleared by OTT 59
Total Calls raised through SSC 1293
Total Calls closed through SSC. * 1662
Of the total calls closed, 1040 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
2.3.1.1 BUSINESS INCIDENT MANAGEMENT
e Following the successful trialing of the revised Non Polled Outlet incident management
procedures during early July, PON have now agreed to suspend the BIMS process and
accept updates to incidents via a summary column on the Non Polled Outlet report. This
has enabled MSU to devote more time and effort into the reporting and follow up
procedure in addition to a resource saving of approx. one half man-days effort. PON
are exceedingly happy with the new procedure which they say assists them in
monitoring the Outlets and, more particularly, APS transaction delivery, more closely.
e Charges for MERs have been submitted by POCL for April, May and June 2000 and
April and May have been agreed with the exception of those incidents which are
identical to the incidents referred to the Commercial Department for ratification in March
this year. We are awaiting the outcome of their deliberations.
e The joint Accounting and Reconciliation incident review was held at Chesterfield on
17th July. Once again this went well with both sides commenting on the positive
aspects of now working together. Concern was expressed though at the number of APS
reconciliation errors and differences within PON where HAPS and TIP were brought into
balance within PON central systems. As a result a meeting was held with the APS
reconciliation team on 24th July at BRAO1 to identify the main problem areas. The
feeling within Pathway was that PON were making a good deal of noise over minor
problems, which had now either been fixed for Cl_4, or were in the process of being
fixed. As a result, PON went away confident that we were handling any incidents we
had received correctly and that Pathway were taking the appropriate steps to ensure
the service was delivered to specification.
2.3.1.2MIS
e Remedies have now been calculated and submitted for Q1 2000 for Data file delivery
(£26,199.13), OBCS stops (£998.92) and System Service (£255,574.19 of which
£192,403.82 is recoverable from OSD). MSU are now calculating the weekly and have
completed June 2000 for Q2 (Data file delivery = £6911.42, OBCS stops = £663.97 and
System service = £8274.03). Data file delivery remedies have been agreed with PON a
further meeting to discuss the System Service remedies is scheduled for 18th August.
e Pathway and PON have now agreed on the way forward to ensure remedial
calculations are delivered on a weekly basis for review. This will ensure that agreement
can be reached as soon as possible after the end of the quarter.
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e The July service review (discussing June 2000 service performance) was held on 26th
July with PON. The review book showed a steady improvement in HSH / System
service SLA performance which was enthusiastically received by PON. Quarterly
conformance figures were shown for all SLAs from Q4 1999 to date.
2.3.1.3IT SUPPORT (FELTHAM)
No issues to report.
2.3.1.4 GENERAL
Procedures for ISO 9001 are currently well under way and in a good state around the
whole of MSU.
2.3.2 BUSINESS EFFECTIVENESS
A draft of the Cl_4 AP Outlet migration process is out for comment, as is a draft of the
complaint management process. Work is on going in the areas of the re-write of the Service
Management Framework and in preparation for the BSI audit.
2.3.3. FIELD SERVICE MANAGERS
Reg Barton, Nick Crow, Wendy Kerrigan and Claudia Walker join the team on 14/8/2000.
Christine McKay joins on 21/8/2000. They will be the eyes and ears for Customer Service in
the live estate concentrating on Manager Care visits and Outlet Problem Management.
2.3.4 STRATEGIC SERVICES UNIT
2.3.4.1 BUSINESS AS USUAL
1. OSD Red Alert
OSD continues to work to achieve service levels and many improvements in SLA
performance have been achieved. The red alert has been downgraded to Divisional
alert for continued monitoring.
2. Help Desk Forum
a) July's HSH/NBSC review took place on the 18" July in Manchester. The
Helpdesks were actioned to meet to look at the impact of Cl_4 on the c/a scripts
and interface agreement.
b) The Joint ICL Pathway/PON/Helpdesk Cl_4 meeting was held as planned. The
output has been widely reported and recognises how well both desks work
together.
c) ACI_4 training meeting was held with HSH this week. 60 staff will be trained
before Live Pilot and the remainder will be trained before migration. There are
still some areas requiring clarification of training detail.
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2.3.4.20CMS
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.
2.3.4.3 OPERATIONAL BUSINESS CHANGE
The following tables show actuals for June & July and firm orders raised for
changes up to the beginning of September.
1.
Opening/Relocation/Refurbishment (Outlets)
[Month Total Actual Deliveries IActual Deliveries Additional
Deliveries Allowed Within to Contract
Contract
June 41 10.31 30.69
July 32 12.25 19.75
[Month Total Orders I Forecast Deliveries Forecast Deliveries
Allowed Within Additional to Contract
Contract
(August 37 14.05 22.95
Sept 6 15.64 0
Closures (Outlets)
[Month Total Actual Deliveries IActual Deliveries Additional
Deliveries Allowed Within to Contract
Contract
June 6.44 0
July 13 7.66 5.34
[Month Total Orders I Forecast Deliveries Forecast Deliveries
Allowed Within Additional to Contract
Contract
lAugust 7 8.78 0
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Quality & Risk Report
1 MONTHLY SUMMARY
e Security. Virtually all effort is still focused on implementation of KMS. Issues are being
addressed daily to maintain progress, including demand on and performance of
Certification Authority Workstations (CAWs), incorrect build of live KMS platforms,
Siemens metering code, testing live keys on OTT rigs. Additional resource has been
identified to fulfil the role of Key Manager — this now being further reviewed to impact
the proposal for increasing migration rate.
* Risk Management. The Business Case risk exposure has increased slightly in the last
month, mainly as a result of a further increase in new business risk and increasing
headcount pressure. The pressure of CSR+ activity has resulted in cancellation of
several risk reviews. Business Continuity plans continue to make progress despite
replacement of a member of staff in the last month.
* Quality. IS09001. Progress is being made with process update. Most Directorates will
be complete by end August. A date for formal assessment has still to be agreed with
BSi - it will be timed so as not to coincide with critical programme activities. Process
readiness, cross-directorate issues, and Business Management System (intranet)
content are being reviewed via the Process Review Forums.
e Audit. The audit programme continues to plan. It is generally raising issues of poor
adherence to process, lack of document control, poor project definition. The audit
solution is still the major issue — problems continue to plague it and large chunks of
data cannot be extracted and are having to be reconstructed.
e Issues:
e Build problems are emerging again — on Audit workstations and live and test
security workstations.
e Turnover and recruitment of suitably experienced QRM staff.
2 PROGRESS
2.1 RISK MANAGEMENT
e Risk reviews have been conducted with Customer Service and B&TC.
© The Risk Analysis & Management Process (RAMP) has been defined.
« The Business Case Risk Register. The weighted total now stands at £23.1mn,
an increase of £0.6mn from June. The major risks are now associated with:
* New Business (increased by £0.5mn to £9.3) — continuing recognition of the
difficulty in realising the total volume in the business case.
© Staff (increased by £1mn to £8mn) as a result of increasing pressure on
headcount and therefore risk to the cost reduction plans.
e Implementation risks have remained the same at £1.2mn, despite an additional
risk being identified - slip to the achievement of the final roll out.
e Development risks have fallen by £0.6mn to £3.3mn, as a rsult of reducing long
term technical risk of the solution architecture. The CSR+ risk will reduce
significantly in September as a result of completion of data centre migration and
start of counter migration. The impact of the 3 week slip will be included in
forecast costs.
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e Operational risks have decreased (by £0.4mn to £4.4mn), as a result of the
reduction in helpdesk workload risk.
e Business Continuity plans. The first draft of a high-level project plan for completing and
implementing the plans has been defined. A control document to track the number and
structure of Business Recovery Teams (BRTs) has been developed. The structure of
each BRT team is being reviewed and an awareness campaign developed.
2.2 SYSTEM SECURITY
2.2.1 GENERAL
«© CP2292 et al (Anti-Virus software on the Live-Estate). This CP still being
progressed as a matter of real urgency. A meeting has been held to finalise
arrangements for implementation. Progress delayed by other Cl4 activities.
« DPA. Responsibilities under the DPA for ownership of data have been agreed
and work is underway on producing requirements as a precursor for contractual
negotiation on processes for handling Subject Access Requests.
« Security documentation continues to be reviewed as part of the ISO 9001 plan.
Most documents have been re-baselined or are in the process of formal review.
Work is required on establishing a security presence and process on the
Pathway Intranet.
2.2.2 CSR+
« The draft continuity plan for the security administration workstations is
progressing.
e Cryptographic Key material continues to be provided for test purposes.
* Work continues on a security awareness programme for new and existing
Pathway staff. A new presentation has been base-lined and input to the induction
event is being scoped.
« The KMS User Guide has been completed and is being baselined. All PinlICLs
raised for changes to the Guide during Technical Testing have been signed off.
Some low priority PinICLs remain for software issues.
« KMS Implementation. KMS supporting documentation, including processes for
key handling and exception events during migration is undergoing formal review.
Work continues on a number of hangouts from the Plan. These include finalising
arrangements with SMC for problem resolution and reviewing KMS events to
determine security-related incidents and to produce KELs for SSC. A solution to
the problem of testing live keys on the OTT rigs has been found and
implemented. A CP has been prepared to raise additional resource for a full-time
Key Manager until April 2001.
« Network Security tools. A CP is imminent and a presentation given to interested
parties.
« Implementation of agreed recommendations from the RODB risk assessment is
being monitored.
2.3 QUALITY
« IS09001 Programme.
* Quality Management processes continue to be reviewed and updated.
« Process Development update:
« Risk process complete; security processes progressing — many will be
revised as CSR+ experience is gained.
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« Completion of C&F processes is still proving difficult.
« Development is still on target; the major process (DE/PRO/003) is being
reviewed. Interfaces, primarily to CS are being discussed.
« Customer Services processes are being re-structured; target end August.
« Programme Office; Document Management Process update is under
review.
« Business Development and Customer Requirements will use the CSLC
processes as relevant for new business.
« Implementation processes are in final stages of review.
« Process Review Forums have been started, with the objective of defining
Business Management System (Intranet) content, identifying process issue
and interfaces.
* Business Management System (BMS). Reviews of Directorate requirements
have been completed. Intranet test site set up for review purposes. High level
overviews of Pathway processes and of Pathway responsibilities for ICL
processes created. Utility established in PVCS to automatically update the
site, each day, with links to the current approved versions of QMS
documentation.
e The date for the final assessment has been delayed, so as not to coincide
with CSR+ migration. Exact dates are to be discussed and fixed with BSi.
Propel implementation.
e Stage 1 outputs have been reviewed. Those of relevance to Pathway have
been identified and will be completed prior to moving to Stage 2 (for Network
Banking initially).
« Other programmes are being reviewed, discussed to understand the
relevance to Pathway and timing of rollout.
2.4 AUDIT
Internal audits:
«¢ CSR+ Migration Audit. Comments on the draft report have been incorporated
and Corrective / Preventive actions being discussed.
e¢ Commercial/Financial Audit. The first part of the audit (documentation) is in
progress. Lack of documented procedures and due diligence activities for
flotation have delayed proceedings
¢ Supplier Management — Training. Audit is in progress.
« Data Centres Audit has been completed and the draft report circulated to the
Data Centre managers. A CAP is considered inappropriate but the report
suggests possible action within the Data Centre and OSD to remedy
deficiencies identified.
Joint Audit preparation. A meeting was held with Chris Paynter in Chesterfield
to discuss POCL’s planned audit programme. Although most of their auditing will
be in the POCL domain, there are possible end-to-end issues on Reference Data
and Invoicing, which might point to joint audits. These issues were raised with
Dave Wilcox and Graham Wingrove who do not foresee problems given the likely
timescales.
Audit documentation update for CSR+ has been nearly completed.
CSR+ preparation. Audit server and workstation migration activities were found to
be missing from the migration plan, and the missing steps have been added.
Audit workstations at Wigan & Bootle were found to be markedly off-spec on test;
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representation has been made to OSD to correct the deficiencies in line with
Migration timescales.
« Audit Solution Problem List. The top problem still concerns rebuilding of missing
file indices. OSD's data initial recovery plan was rejected; Richard Laking is
assisting them.
« Brian Mooney has now left Pathway. A direct replacement is not being sought. A
data analyst is being recruited to conduct audit extractions and support security
event management.
3 ISSUES
* There are certain areas of Pathway’s business that need to be more actively involved in
the risk analysis and management process e.g. TDA.
e Risk reviews are re-scheduled or postponed indefinitely on the basis that there are
more urgent problems to which to attend; these problems arise more often than not
from unanticipated or discounted risks. This is symptomatic of an underlying lack of
discipline in certain areas within the business — in for example following processes,
definition of projects, document control.
e Aplan has been devised to handle the demand on the availability of the limited number
of Certification Authority Workstations (CAWs). There are emerging issues over the
performance of CAWs under volume conditions. This is being addressed by KMS
Development.
e Itis apparent that the test and live KMS platforms have been built with the incorrect
increments and a complete re-build is required. This places further demands on QRM
resources to repeat commissioning activities.
e Delivery of secure storage for cryptographic key material has been delayed. Existing
secure facilities mitigate risk in the short term.
« There is an urgent need to establish that we have the correct version of the Siemens
Metering deliverables for AP Quantum/SPM and that the code as prepared will interact
correctly in the live environment. Tests have been scripted and will be undertaken
imminently.
e The impact on the Key Manager of recent proposals to increase the daily number of
migrations will need to be assessed.
e Staff turnover in QRM has been very high and it is proving more difficult to recruit.
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Business Development Report
1 SUMMARY
e Principal efforts continue to be focussed on Network Banking and ERA with a renewes
emphasis on Government gateway as a result of the PIU report.
« Network Banking:
« The Proof of Concept work is nearing completion with the final report and
demonstration available 11" August. The POC exercise has achieved all
objectives to date and there is now a clear view of the forward development path
with the associated risks identified. Web enabled Riposte is achievable within
the Horizon environment and this will also provide us with a clear forward
strategy on Horizon.
« The ITT responses for the Network Banking Engine have been received by Post
Office and are currently being evaluated. A decision is expected by end August.
We continue to review the Pathway strategy regarding Horizon being the
interface to the banks. We are ready to respond to Post Office if needs be.
« Post Office are now under pressure to respond to the government's call for
Universal Banking. The banks have come out against supporting Universal
bank. There is a real [political play going on and our position is to stay low in that
we can respond to whatever direction is taken.
« Asuccessful visit to Escher’s premises in Boston took place earlier in the month.
Five PO people attended and came away impressed by what they saw and
heard.
« ERA:
« Progress on the ERA project is good with additional resource now being applied
from ICL Pathway. This involves requirements, TDA & counter development staff
and this resource will be involved up till end October when the next phase of
work starts.
« Government Gateway:
« The PIU report has emphasised a number of key areas where it believes the
Post Office can be the focal point of delivery, namely GGP (Government
General Practitioner) and ILAP (Internet Learning Access Point). The Post
Office must put clear business cases to Government by 1% September. The
PIU report has stressed that it wants to see pilots in place in Spring 2001. We
are currently discussing these with Post Office and reviewing options.
« Marketing Communications:
* Slow progress. This is a real grind. Post Office are not tuned in to positive pro-
active comms. They much prefer a reactive defensive position. We continue to
try to break down the barriers. The good news as I write is that we have
approval to use their material to promote the fact that we have just installed the
10,000" post office.
« NAO Report:
«Looks like this is finalised at long last. It is now due for publication on 18"
August. NAO have also given us sight of their press release which we have
commented on.
2 PROGRESS
Business Developme:
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« EFTPOS: We understand that Andy Radka, ex BSM manager returns from
extended leave 7" August to take overall project management control for
EFTPOS. We expect to engage with him within two weeks.
e Mails: A very useful Mails workshop has taken place with Escher’s support. This
has given Post office a lot of thoughts and ideas for them to build into a forward
plan to engage their Royal Mail and Parcelforce colleagues.
Internal Communications in ICL Pathway
¢ Brief EnCounters was distributed w/c 17" July. It has been redesigned and
launched via email with a hyperlink to the ICL Pathway Community on CafeVIK.
Positive comments received from staff members regarding the re-launch.
e An internal ICL Pathway Opinion Survey on marcomms. has been produced and
sent to all ICL Pathway staff. To-date approx. 100 replies have been received. A
full evaluation report will be produced and distributed to the Management team
first and then to all staff via Brief EnCounters.
« The ‘Induction Pack' - produced as a slot-in document for new joiners, is at
present with Document Control, waiting for PVCS approval.
« We have placed an urgent request in for an additional 5 systems to be built:
¢ 1x P1 - Future Focus for DTI
e 4x CSR+ Pll = 2 for Marketing Suite, 2 for external demo
Communication within ICL
e« The ICL Pathway Community on CafeVIK has been re-launched and has
received positive feedback.
e ICL's Future Focus has now been signed off with the inclusion of Horizon. This
is for the REA24 Future Focus, with the same going to the additional Future
Focus site at the DTI late summer.
« The ICL Pathway rolling demo has proved a huge success within ICL. Because
of its success, it is being updated and redesigned by the ‘Design Studio’ in
BRAO1, such that we can distribute it to a wider field.
External communication/ PR/Media
« Working with a number of suppliers (Energis, Eicon and Metron) regarding case
studies and press releases - all of which are with the Post Office for approval.
¢ Relationship building with National and IT media continues and is improving.
« Please find attached two summaries on press coverage received during July on
ICL, ICL Pathway, Horizon & Post Office automation.
Post Office Network Communications
« Pastiche event is due to take place in September with key players from the Post
Office attending. To-date Stuart Sweetman, David Miller, Alan Barrie, John Main,
Tim Thorpe and Ann Nevinson have accepted.
« Weare working with the Post Office on the forthcoming Party Political
Conferences. They are deciding whether to run with demonstration offices or
operational temporary offices. Dates of the Conference are as follows:
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e 17-21 Sep - Liberal, Bournemouth
¢ 24-29 Sep - Labour, Brighton
¢ 2-5 Oct - Conservative, Bournemouth
Government communications
« Reviewed executive summary and press release of the NAO report; drafted an
ICL positioning statement and forwarded to flotation document clearance team
for checking.
« Wording on Horizon for the MP's newsletter (Information Technology Bulleting)
has been approved between Jane Warriner (PO) and John Cheetham (ICL
Corporate Affairs). Due to be published in August.
Marketing Communication Team
« All team members have attended Conversations for Change.
« Alex Garforth replacing David Hilton started on 3° July.
International
* Continue to receive requests about Horizon from overseas. Interest this month
includes Egypt and Mauritius. Profiles and achievements have been forwarded.
« We are still helping South Africa to get a framing agreement in place with
Escher to enable ICL to have the marketing rights for sub-Saharan Africa.
3 ISSUES
« None
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Implementation Report
1 MONTHLY SUMMARY
A total of 10,116 outlets have now been migrated to Horizon, as of close of business at 4"
August 2000, representing 56% of the network. Achievements in the installation
programme continue to exceed the planned levels on a weekly and cumulative basis.
The programme remains on track to achieve the 1%‘ November 2000 rollout payment
milestone of 10680 live outlets. It is currently forecast that this will be achieved in mid-
August.
Training scheduling, specifically invitation timeliness has improved considerably. Ata
working level this is no longer believed to be a major issue. However, a significant deficit in
the number of courses required compared to the contracted quantity is being forecast and
is likely to create a dispute with PONU over responsibility for the issue and the costs
involved (see Critical Concerns).
Activity continues to align all staff with future opportunities in ICL in preparation for the
closedown of the Implementation team at the end of rollout next spring. This includes the
planned transfer of staff into E-Applications and into vacant roles in Pathway Customer
Services. This work also includes the creation of a rollout services group to provide a
shared rollout service to this and other rollout programmes in ICL.
2 PROGRESS
The infrastructure tail plan continues to make good progress and is on track to be
completed by the end of September. The deadline for accepting non-compliant outlets was
passed on 3oth June. From this point outlets can only be accepted if they are already
compliant otherwise they will need to be managed through Operational Business change.
On an individual outlet basis Pathway will consider accepting outlets, provided dates can be
agreed for completion of infrastructure activity which meets the requirements of the
installation programme.
Review of formal documentation for the survey and preparation activity for satellites is at an
advanced stage and has included PONU review. These activities remain on target to
achieve the planned dates for satellite and mobile installations. The CCNs for mobiles and
satellites have now been approved by PONU.
Preparations for CSR+ the introduction of CSR+ and the live pilot remain on track
for the revised CSR¢+ live pilot dates. Up to 20 new installations will be included in
the live pilot.
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ACTIVITY CHANGE CUMULATIVE
Number of Open Post Office Outlets 9 18,147
INFRASTRUCTURE PROGRAMME
Sites Entered Into the Programme - 18,050
Sites Remaining to be Surveyed - 674
Sites Remaining to be Prepared - 1,491
INSTALLATION PROGRAMME
Sites Migrated and Live - 8,553
Percentage of Open Sites Live - 56%
Counters Live : 23,000
3 CURRENT CRITICAL PROBLEMS
Examination of course usage, relative to the contracted number of training course, and the
introduction of a detailed usage forecasting model has identified a large potential shortfall
of courses. This would require PONU to purchase approximately 2,000 additional training
courses. The driver for this is course occupancy. Levels of course occupancy reduced in
the last two months consecutively, exacerbating the problem. The deterioration in
occupancy levels is considered to be caused by an increase in the number of postmasters
refusing training dates because of holidays. Postmasters are made aware of installation
dates and the training window, relative to the install date, up to 14 weeks prior to
installation, but the dropout occurs several weeks after this. This indicates that acceptance
of training dates and lack of enforcement by PONU is having a considerable impact on
attendance. This has, and will continue to add to, the shortfall in training courses currently
being predicted. All parties will need to increase their efforts to improve this situation.
Not surprisingly PONU are concerned about this and are likely to claim the issues around
training scheduling caused this situation. Although training scheduling has contributed to
the problem, PONU have a large degree of responsibility for the status also. Pathway and
PONU are currently working together to determine actions to resolve the issue. Once such
action, allowing 1 additional person to be scheduled onto a training course at the point of re-
scheduling, will be introduced from 1 August and is forecast to reduce the impact by 25%.
Good progress is being made introducing other actions to reduce the magnitude of the
problem.
4 ISSUES
During the last reporting period an increase in the number of modification snagging issues
was observed. This occurred, as a result of the supplier under-estimating the complexity of
the work required. This also resulted in the supplier being unable to complete the work by
the planned date of 30" June. By agreement with PONU, the work has been reviewed and
it was determined 24 sites required snagging items to be addressed for which all
appointments with outlets have been made and work is underway.
ISDN line failures have been noticeably less this reporting period. This area of work will
continue to be monitored until the end of the programme to ensure a consistent level of
acceptable performance is maintained.
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Telephone sampling by PONU has continued with the aim of monitoring improvements in
training invitation timeliness. Actions taken last month by Pathway have enabled a clearer
view of the issues to be determined, action to be taken and improvement to be put in place.
An RODB audit determined two key issues:
* Inconsistent implementation of the scheduling process for the Preview event
introduced in January and the consequential change in process timing for the
UAE event. Consequently, outlets would have been scheduled late until the
point where improvement would be seen in calls made week commencing 19"
June. This improvement was observed in the actual results reported.
« Occasional failures in data format transmission between Pathway and their
training supplier. This resulted in incorrect or missing scheduling data for a
small proportion of outlets such that UAE events where impacted in terms of
invitation timeliness. Data format corrections are in place such that from the end
of July no further occurrences should be observed. Until then a small
percentage of outlets will be impacted with late UAE invitations (worse case 10-
15%).
The following additional issues were also been identified after examining the
reported failures from PONU:
« Sampling calls being made too early by PONU staff
* Discrepancies between when invitations were sent and postmasters response,
which remains unexplained
« Evidence of invitations being received when postmasters claim they have not
been (questionnaires returned to KPL).
« Late notification by PONU to KPL of outlets to be invited to Preview events.
The results and supporting evidence of this analysis has been shared with PONU
for each of the 4 weeks where it was undertaken such that corrective action can be
taken. The analysis will continue until such time as a consistent acceptable level of
performance has been achieved. It is considered that the issue of training invitation
timeliness has improved markedly and is above or close to the level of performance
required.
A CCN for the extension of the Counter Manager training course has been
submitted for PONU approval but has since been rejected. There will be an
unacceptable impact to the training quality after the introduction of CSR¢+ if the
extension is not taken up. Feedback from postmasters continues to support this
view.
5 COSTS
Implementation forecast for the period remains within budget.
Headcount forecast costs have reduced following efforts to begin the transfer of staff to
alternative positions at the end of rollout. This is in line with the Implementation cost
improvement programme.
Negotiations continue with ntl: over weekly site shortfall charges.
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Organisation & Personnel Report
1 MONTHLY SUMMARY
Good progress was made with the transition plan for the Pathway Implementation team.
Employees were notified of the EIP/PVP bonus schemes for 2000/01 and managers were
supported in the associated activity of objective setting.
2 PROGRESS
. Appointments in July:
External Recruits 3
Transfers In 0
E-Apps 5
LINKwise 0
Freelance 6
Fixed Term Contracts 5
Adecco Temps 1
TOTAL: 20
. Known Joiners
External Recruits
Transfers In
e-Apps
LINKwise
Freelance
Fixed Term Contracts
Adecco Temps 0
TOTAL:
oC00300
=
° July Leavers:
Permanent Staff
Freelance
Transfers Out
Linkwise assignee
e-Apps
Fixed term Contracts
Adecco Temps ie}
TOTAL: 16
NAONO=
Known Leavers
Permanent Staff
Freelance
Transfers Out
Linkwise assignee
e-Apps 4
Fixed term Contracts
CORN
rN
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Adecco Temps ie}
TOTAL: 14
Letters confirming the details of the 2000/01 EIP and PVP schemes were issued
to all eligible Pathway employees. The PVP scheme requires specific personal
objectives to be set for each participant and the Personnel department is
working with managers to ensure all employees have SMART objectives set.
The Pathway Managing Director will review these in early August. To date there
has been a reasonable amount of work undertaken by managers but so far only
approximately 25% of objectives have been received by the Personnel
Department.
The Roll-Out transition team met and a proposal was tabled by e-Applications to
transfer the Pathway team virtually in its entirety into e-Applications in one group
as soon as it can practically be managed. The original working plan had
envisaged people being transferred to e-Applications once their individual work
on the Pathway Roll-Out was complete. The new proposal involves a group
transfer taking place as soon as the details can be agreed and with employees
still needed by Pathway being placed on assignment to Pathway until their roles
have finished. E-Applications would then place them on other assignments
within ICL.
This proposal is currently being considered in detail by Pathway and the
Technical Centre to decide whether it is workable and is the best way to manage
this activity. The implications for the supply of roll-out services to Large Projects
are also being examined. Many of the Pathway team will have a role in
delivering the roll-out of these projects and this has therefore also to be factored
into the transition plan.
Agreement was reached on the roles of the first group of people who are
working full time on roll-out services for Large Projects. Changes to Terms and
Conditions were made which reflected the new roles and offers were made
confirming these changes.
20 appointments were made in July. The number of live vacant requirements
has reduced from 27 at the end of June to 19 at the end of July. Only 4 new
requirements were submitted by Line Managers for approval.
Junior Business Analyst roles remain outstanding in Customer Service. 8
external candidates will be interviewed in early August.
Substantial progress was made on the rectification plan to clear the non-
compliances identified by the Health and Safety report on the Pathway
laboratories in BRAO1. The Manual-Handling course was completed on 27" July
and Workplace Assessments were completed on 21% July.
The Pathway Accommodation plan was presented to the Management Team
and it was agreed to implement the plan as proposed. The plan is now being
implemented and will also be formally reviewed in Quarter 3.
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A large number of questions and requests for help were generated by the
implementation of the Personal Choices benefits programme. These were dealt
with by members of the Personnel Department with support from the HR Direct
team.
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Date:09/08/2000
The Post Office - Client Director’s Report
1 MONTHLY SUMMARY
The problems with the OneStopShop contract (MC), the ParcelForce WDM contract (MC and OSD)
and the SMPP contract (OSD, eAPPS) continue despite escalation within ICL.
Renewed dialogue with PO on the government market has been encouraged by the demands of the
PIU report.
QOneStopSho,
ICLMC have been informed by PO that the cancellation of new orders will continue until
end-August and ComputerCenter will supply 6,000 laptops single tender. MC have yet to
establish the criteria for renewal of orders. PO have also now informed MC that the
selection process for a single supplier under OneStopShop starts in September.
SMPP
This staggers on with OSD still failing to satisfy customer expectations on either closing down the
original contract or presenting a strong sales case for the proposed 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. After much agitation by
Caroline this was straightened out, but now MC have run into MC product supply problems
and OSD are failing to meet SLAs - this is particularly critical to ParcelForce as the kit is
installed on their customers’ premises. Caroline is attending a service review with
Parcelforce on 10 August 2000, with MC and OSD and ParcelForce.
Penalties start to be applied to OSD/MC from 1* August 2000.
E- Infrastructure
Windows 2000 initiative kicked off in Man05 with some key Windows2000 resources.
ICLMC and A&TC are now working together to sell W2K services into Post Office.
eGovernment
PO, in response to the PIU report, are developing various plans for govt services under project names
CMCO, ECLIPSE as well as PIU and are evaluating GovWorks. ICL Govt Division are now involved,
with Yatin Mahandru meeting P Rich and D Waltho 4" August. PO intend to ask several suppliers if
they wish to partner in some/all of these initiatives and in effect we have been given early briefing.
The key (hard) part will be to establish exactly what ICL is expected to do, and to evaluate the
associated risk/reward.
John Roberts is personally leading the PIU response (not just while S Sweetman is on leave) and
there have been a number of tough meetings with Treasury. It is clear that PO are expected to
produce strong commercial business cases before they will see the PIU pilot money; of which £15m is
earmarked for govt pilots. Debate continues as to what constitutes a "pilot", where it should take
place, who pays for what etc. Treasury are insisting on a PO response by 1% September.
CMBU
CMBU's earlier plans for reaching parnering agreements for joint bids with ICL for Customer
Management business in govt, utilities, financial services and retail have been scaled back to
Government market only. This is realistic recognition of the difficulties PO face in pitching for external
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FUJ00078051
FUJ00078051
ICL Pathway Post Office Client Report vi Ref: Pa REPios2
fersion:1.
Date:09/08/2000
CRM business given the state of their in-house CRM capability; and the importance of Govt as a
client.
eBusiness
An ITT for a "management of change and eServices partner" is being issued. John Bell has
helped e-Innov to submit the qualifying first response.
Jim Reed, Director of IT Procurement has expressed a strong desire to understand "how
PO can exploit the Horizon asset" - date fixed for 30" August. Jim also attended a FJ
seminar at which Andrew Boswell's session on e-futures was well received.
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.
Smartcard
Discussions continue with PO Network Banking Div regarding the potential for London
Transport Travel Cards issued by PO - we took Alan Oliver MD of Transys to meet Paul
Rayner 4" August. Some mutual potential is being explored.
In the course of his consultancy work for Dave Waltho, Mike Jenkins has been asked to
switch focus to a 3 million cardholder scheme which could support a Government General
Practitioner pilot in (possibly) Northern Ireland.
VIACODE
Have now held two meetings with Peter Taylor GM of ViaCode, with Andrew Boswell and
assorted ICL security people. Andrew's aim is twofold: i) to establish if ViaCode could be
brought into internal ICL use as our own encryption and digital signature service; and ii)
whether it would be a good Go to Market offer for ICL to take to our customers. There is
strong interest in PO but much work remains to be done.
Account Team
Owing to a clash of dates with Post Office the Account Planning session planned for Sep 27/28 is
being re-scheduled.
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