ICL Pathway
Bringing
Technology
to Post Office
Counters
May 2001
Monthly
Progress
Report
HUM
270
FUJ00115976
'UJ00115976
(CL
a Foiiteu company
ICL Pathway Monthly Progress Report
OS a
FUJ00115976
FUJ00115976
Business Director’s Summary
Development Report
Commercial & Financial Report
Customer Services Report
Quality & Risk Report
Business Development Report
Implementation Report
Organisation & Personnel Report
ICL Pathway
FUJ00115976
FUJ00115976
Programme Monthly Report Ref: PA/REP/066
Version: 1.0
Date: 06/06/2001
Document Title:
Associated Documents:
Reference
1] PM/PRO/002
Approval Authorities:
Name
Stephen Muchow
ICL Pathway Monthly Report - May 2001
Vers Date
1.0 26/09/96
Position
Business Director
Title Source
Pathway Programme - Project
Planning, Reporting and
Control
Signature Date
COMPANY IN CONFIDENCE
Page 1 of 40
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FUJ00115976
FUJ00115976
Business
Director’s
Summary
FUJ00115976
FUJ00115976
ICL Pathway Business Director’s Summary Ref: PA/REP/066
. Version: 1.0
Date: 06/06/2001
Business Director’s Summary
1 PROGRESS AND ISSUES
1.1. BUSINESS PLAN
May performance was slightly behind plan with revenue £0.3m down, mainly due to deferred
revenue recognition from implementation delivering 29 fewer new installations than forecast
and transaction volumes being much less than benchmark. The relatively high level of-pass-
through revenues to Escher at 0% margin restricted the effective profit recognition to 13%
Cash costs were lower than forecast by £1.3m. Much -of the variance arose in the
Implementation area, with no charges from Knowledgepool for customer training and’ various
credits received from ntl relating to their survey and preparation activities. Elsewhere; the
direct costs of equipment relating to GGP were booked, but this was reflected in higher
revenues; accruals for costs relating to CPs in Customer Service amounting to £0.4m were
also made.
Resource costs were lower than forecast, due mainly to headcount shortfalls and early
implementation of recruitment restrictions. An adverse variance of £0.2m was recorded on
Help Desk costs, due to an increased level of calls brought about by migration activity. The
Business Plan risk contingency of £0.7m allocated to the month did not show through in any
of the other cost areas.
Cash flow in the month was £5.4m worse than forecast. This was due to a combination of
lower than forecast debtor receipts and higher than forecast supplier payments. On the
supplier side, the resolution of long-standing account issues with both Energis and. ntl
resulted in payments of old invoices. The full amount of these payments had .not been
forecast for May.
Project WIP was lower than forecast; due to the reduced project costs.
Our 2001/02 Budget has ‘been submitted. The headline figures _ being:
Revenue £126.0M, PBT £16.7M, Total Cash Costs £100.5M and Headcount 388.
Our proposal -for GGP Contents Hosting will be submitted this month with a value of circa
£1.4m.
1.2 PROGRESS
1.2.1 CORE SYSTEM RELEASE
At close of business,on 31 May, a total of 17700 Post Officers had been implemented. This
represents 99.3% of the agreed number of outlets to be automated, with 131 offices to go.
Responsibility for the remaining sites has now transferred to Customer Service.
‘COMPANY IN CONFIDENCE Page 2 of 40
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FUJ00115976
ICL Pathway Business Director’s Summary Ref: PA/REP/066
Version: 1.0
Date: 06/06/2001
CSR MI counter migration is now 98% complete. The difficult ‘tail’ will be completed by 15
June.
S03 was applied in May with no major issues. Development of S06 and S10 is now complete
and S06 will be applied on 18-30 June.
Service performance remains good with-no major issues affecting SLAs.
1.2.2. NETWORK BANKING
Progress on the SRS and SDS has fallen slightly behind schedule and so a focused task force has been
assembled to accelerate progress with key personnel released from all other activities:
A new delivery manager has been announced, Louis Prastitis, who joins PON full time from July
from French-Thornton.
1.2.3. GOVERNMENT GP
Excellent progress is being made. The schedule has no contingency but seemingly ¢very
problem so far encountered has been overcome. This is enhancing ICL’s reputation within
PON.
1.2.4 ERA
ERA continues as the strategic way forward for PON. They have taken a two-week pause on
to consider the correct way forward. This work is-mainly being undertaken by ICL Pathway
and was presented to Post-Office in a workshop on 8" June.
1.3. ISSUES
1.3.1 BREACH OF CONTRACT SLAS
Following on from the meeting in April a further customer meeting was held at the end of
May to hear Pathway’s proposal for rectification of the Day D SLA issue. A demonstration
was given of the ISDN emulation equipment as a replacement for the Satelan solution. We
have proposed achievable SLA targets of 99.9% for APS, and 99.8% for OBCS and TIP, with
100% by Day J. All of which to be implemented by April 2002. This proposal appears to
have been acceptable to POCL subject to their agreement to our written proposal. This
important step will potentially remove the Breach of contract position. In the meantime it has
been agreed with POCL that work should be suspended immediately on the previous Satelan
and AP paper solutions.
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FUJ00115976
Development
Report
FUJ00115976
FUJ00115976
ICL Pathway Development Report Ref PA/REP/O66
Version: 1.0
Date: 06/06/2001
Development Report
1 MONTHLY SUMMARY
e The migration of Live counters to MI has progressed during May with the final tai!
outlets rolling forward into June.
° Release S03 has been implemented.
e Development of S06 and $10 has completed and testing is progressing to achieve the
Live dates.
. GGP is progressing towards the desired Live date, with each'new issue that is passed
to Pathway overcome and resolved.
. The Network Banking SRS has been issued to the PO for review and the first
review/update cycle is underway.
e A Task Force has been set up to drive the NWB SDS through to completion.
2. PROGRESS
e A keyboard hardware/firmware problem has found to be the cause of the Quantum
‘Ironbridge’ meter lock out issue. Options are under review by CS to agree a way
forward.
° Three further Client migration exercises were successfully achieved during May, 2 for
further phases of Girobank clients migrations and the third for
DVNLI.
e A CCN have now been approved to-allow the development of the BBC interface and a
request has been received to develop a link to DVLA.
. S03, the TIP File changes Release, was implemented on schedule.
° S06, the SLA Day D Release, completed Systém Testing in May and completes
conformance testing early June. The movement of the Volume and Integrity test
environment from Bracknell to Feltham encountered issues during the re-installation
and early testing phases. This has resulted in a delay to the Volume testing window
and may impact the full tum on of the release functionality-if a critical performance
fault is detected: If a delay is required, it will not affect our customers. A proposal to
introduce a laptop interface to PSTN in the outlet to upload data when there is a
comms problem has been agreed with PON as the final link to resolving Day D issues.
This-will be developed and tested in S10 for post $10 availability
COMPANY IN CONFIDENCE Page 4 of 40
FUJ00115976
FUJ00115976
ICL. Pathway Development Report Ref: PA/REP/066
Version: 1.0
Date: _ 06/06/2001
e $10 development completed in May and System Testing has commenced. PTU test
preparation is on schedule to allow testing to commence in early June. Late-additional
CPs were included in the Release impacting interim delivery dates, but holding the
overail Release date.
e GGP Forms printing development completed in May and final forms have been
delivered for System Testing.
° GGP Kiosks are now operational in our test environments and are interfacing ‘to the
CGEY development Content Server.
° The GGP Access Network hardware has been ordered, but not yet delivered.
e GGP Hosting solution has been agreed and the Live Test environment built and under
test usage by the PO. Work will now commence on building for Live to meet the PO
aspiration of a Pre Pilot in mid June.
° Discussions have commenced regarding Full Roll Out of GGP and additional
functionality requirements for 2002 and 2003.
. The NWB SRS was issued to the PO and a review meeting held to discuss comments
received. The updated version is due for issue mid June.
° In order for the TDA to concentrate on specific NWB SDS activities, a Task Force
has been set up to drive this activity through towards contract approval. The critical
activity is to achieve an agreed design solution in order to direct costing by the end of
July.
. PON delayed further ERA work in late May and has asked Pathway to present their
recommendations on how ERA should proceed in carly June.
. Talextis Design has continued, although there has been debate with the PO regarding
its future following the takeover of their Talexus client, Yorkshire Electricity. The PO
are now in further negotiations with a new client and the full development costs
expected to be approved in early June.
. Work has taken place on EFTPoS requirements, reviewing the integration of Retail
Logics product with Horizon.
3. ISSUES
° Work has continued on the Freelancer replacement programme and a second
recruitment day was held on 16" May. Although a well planned event, of the 12
candidates, only two were offered roles and only one accepted. As the quality of
candidates was disappointing, 4 follow up meeting was held between Computer
People, their suppliers and the Pathway hiring managers. This helped to further clarify
our requirements regarding skills and experience and additionally discussions have
commenced regarding targeted advertising.
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FUJ00115976
ICL Pathway Development Report Ref: PA/REP/066
Version: 1.0
Date: 06/06/2001
° Current Freelancer Headcount & Forecast
Update 01-Apr-01
Summary No of Heads
Freelancers in Programme Directorate 30/04/01 92
Current FC of Freelancers in Pathway on 01/06/01 89
Current FC of Freelancers in Pathway on 31/03/02 50
e (The 31/3/02 freelancer figure assumes continued successful freelancer
replacement)
° In order to progress the System Design for NWB, Pathway has made
assumptions regarding PO requirements. If these assumptions are found to be
incorrect during discussion or review, the overall Release dates could be
impacted.
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Commercial &
Financial
Report
FUJ00115976
FUJ00115976
ICL Pathway Commercial & Financial Report Ref: PA/REP/066
Version: 1.0
Date: 06/06/2001
Commercial & Financial Report
1 MONTHLY SUMMARY
e Financial performance for May year-to-date shows revenue just behind budget
(£21.0M vs. £21.3M) due to transactions being down in May and lower than
forecast roll-out rate but offset with higher than budget revenues form New
Business areas. Consequently, profit recognition year-to-date is slightly behind
budget (£2.7M vs. 2:8M).
e Total Cash Costs for May year-to-date are better than budget (£15.9M vs.
£17.2M) largely due to budgeted risk not utilised, timing on recruitment. and
timing of Knowledgepool costs.
¢ Following on from the meeting in April a further customer meeting was held at
the end of May to hear Pathway’s proposal for rectification of the Day D SLA
issue. A demonstration was given of the ISDN emulation equipment as a
replacement for the Satelan solution. We have proposed achievable SLA targets
of 99.9% for APS, and 99.8% for OBCS and TIP, with 100% by Day J. All of
which to be ‘implemented by April 2002. This proposal appears to have been
acceptable to POCL subject to their agreement to our written proposal. This
important step will potentially remove the Breach of contract position. In the
meantime it has been agreed with POCL that work should be suspended
immediately on the previous Satelan and AP paper solutions.
e We are working to agree the absolute definition of the measures for the
performance.SLA for the payment-of the retention monies so that this paid from
the earliest opportunity. We are moving towards agreement on the volume
metrics, but POCL are still considering their position on which AP transactions
are relevant, and the status of the'times listed in Schedule E8.
e The 2001/02 Budget has been submitted to Large Project Division. The
headline figure being Revenue £126.0M, Profit before tax £16.7M, Total Cash
Costs £100.5M, Headcount at end of period 388.
e The contract, via a CCN, for the Access Network for GGP Kiosks Pilot has
been signed. Work is progressing to cost the Content Hosting Service.
e We have started discussions with POCL on the methodology the Network
Banking service will be dealt with under the Codified Agreement. A
commercial and legal meeting is set for 20" June to progress.
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FUJ00115976
FUJ00115976
ICL Pathway Commercial & Financial Report Ref: PA/REP/066
Version: 1.0
Date: 06/06/2001
2 PROGRESS
e The WebRiposte decision; we have reached contract agreement with Escher
and with POCL.
¢ Continuing convergence, as above, on the SLA package.
e Promising discussions aré taking place with ICL Group Treasury on the use of
ICL Flexible Finance for funding the Network Banking project.
3. RISKS
e That POCL will not agree to the Day D SLA proposition; this risk must be
much reduced following the successful meeting described above.
* That POCL are unable to take the hard decisions on the Programme Plan or
lack the funds to finance it.
¢ ‘That once decided, POCL’s demand for work will outstrip our ability to supply.
4 ISSUES
e As risks above.
5 FINANCIAL PERFORMANCE
See Pages 8,9,10,11 and 12
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ICL Pathway Commercial & Financial Report
FUJ00115976
FUJ00115976
Ref: PA/REP/066
Version: 1.0
Date: 06/06/2001
ICL PATHWAY
Revenue & Profit
REVENUE
Rotlout Revenue
Availabi
iy Fees (Retention Releases)
Operating Fees
Implementation Contributions
New Business - Gross
CCN619 Credit
Mainstream CCNs
OBC / Memoview
Other
TOTAL REVENUE
PROFIT
Total Revenue, as above
Less: "Non-Profit": Revenue
Net Revenue for Profit Recognition
Profit Recognition %
Profit Recognised
International Activities Losses
PATHWAY PROFIT RECOGNISED
[Monit of May 2001 ] C Year to Date ]
May May
Actual Forecast Variance Actual Forecast Variance
1.0) 1.4] (0.4) 24 2.8] (0.4)
1.2) 12 4 2:5] 2.5) q
6.1] 68 (0.1 13.5 13.6] (0.1)
V3 iM 02 Pa) 19 02
01 On 5 oO. 4
a I 5 oa] o4 ,
10.3 10.6 0.3) 21.9) 23 (0.3)
10.3 10.6 3) 21.9 213 03)
(0.4) (0.2)I (0.2) (0.8) 06) 0.2)
9.9) 10.4] (0.5) 20.2 20.7] (0.5)]
13.8% 13.5%) 13.8%
3 i4 Ga) 27] 281 On)
13) 14 (0.1)} 2.7] 2.8] (0.1)
Revenue was £0.3m down on forecast due mainly to the rollout tail delivering 29 fewer new installations than forecast, thereby deferring the
revenue recognition,
This was partly offset by new business revenues, where GGP activities started in camest, and there were also Web
from POCL, following the Escher srrangements that .were finalised in the month,
Contractually measured transaction. volumes were again well short of benchmark, with the dual bank holidays in. May leading to son
consolidation of Benefits Payments
iposte related revenues
The relatively high level of pass-through revenues at zero margin restricted the effective profit recognition percentage to 13%.
COMPANY IN: CONFIDENCE
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FUJ00115976
ICL Pathway Commercial & Financial Report Ref: PA/REP/066
Version: 1.0
Date: _ 06/06/2001
ICL PATHWAY
P&L SUMMARY [Month of May 2001 J CL ‘Year to Date _]
May May
Actual Forecast Variance Actual Forecast Variance
Revenue Recognised 10.3 lo (0.3) 21.0 21.3} 3)
Cash Costs (analysis below) 8.3] 9.6] 13 15.9 172 ie)
Depreciation 2.64 2.6] 4 5.3] 5.3]
Interest Costs CH) oO. 5 03 03)
Utilisation of March 99 Provisions (0.2) (0.2) (0.2) 2)
Total Costs 10.3 121 13 21.3] 22.6 13)
Raw Result before WIP Transfers (0.5) (1.5) 1.9) (0.3) (1.3)] 10)
‘Transfer to / (from) Contract WIP 13 239) it 3.9) 4A 1
Ordinary PBT 13 14 (0.1) 27] 28 1)
Release of March 1999 Provisions
Total PBT Recognised 13 14 1) 237] 2.8 (on)
CASH COST ANALYSIS [Month of May 2001 1 [ Year to Date ]
May May
Actual Forecast Variance Actual Forecast Variance
Paycosts - Employees i) 14 oO. 2.6 2.7] on
- Freelancers Ma 1d E 19 19 4
Total Paycosts 24] 2.5I on 45 4.6 0.
Labour Related (Travel, Fleet, ‘raining, etc) 0.) 0.2 , ol 0
Shared Services Costs, on ot E o1 on
Premises and facilities 03] 02 0.) os] 0.4 (0.4)
Computer related / Communications On 0.2I ol 0.4] 0.5] Ol
Marcomms / Advertising / Promotion / PR I e e
Legal and Professional Fees E ou Ol ou 0.2] on
Sub-Total 03] ou usI ag 0.
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ICL Pathway Commercial & Financial Report Ref: PA/REP/066
Version: 1.0
Date:__ 06/06/2001
Direct Costs and Sub contracts (provisional analysis)
Consultancy 0.1 on 01 o1
Development ot 02] o. 02] 03 ou
Rollout Related (0.2) 0.2 ol 1) 03 0.
HelpDesk 09) 07] 0.2) 14 12] (0.2)
Systems maintenance/SMC i Lo 1) 23 2.2 @.1)
Data Centre operations 0.8] os Ls 1g
Operational Business Change or 01 5 o.I 04 z
Network/Telecomms 039) Lo ou 2.09) 24 on
Customer Training 0.7] 0.1] 03 to 0]
Other (New Business Direct Costs & CP Accruals) 12 05 07) 15 og 7)
Sub-Total 49) 53 0.4] 9.5] 99) ol
Materials (maintenance of test equipment etc) o4 0. oO. 02 03 Ou
Exchange Losses / (Gains) : I
Contingency (Business Plan Risk) 4 07 07 5 07] 07
Other Costs z
SLAs 0.2 on @.1) 02] 0.1 1)
Government Contribution
TOTAL CASH COSTS 83 9.6] 13 15.9] 172 13)
Cash costs were lower than forecast by a total of £1.3m, Much of the variance arose in the Implementation area, with no charges from
Knowledgepool for customer training and various credits received fromntl relating to their survey and preparation activities, Elsewhere, the
Uirect costs of equipment relating to GGP were booked, but this was reflected in higher revenues; accruals for costs relating to CPs in
Customer Services amounting to £0.4m were also made.
Resource costs were lower than forecast, due mainly to headcount shortfalls. An adverse variance of £0.2m was recorded on Help Desk costs,
due to an increased level of caits brought about by migration activity. The Business Plan risk contingency of £0.7m allocated to the month
did not show through in any of the other cost areas.
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ICL Pathway Commercial & Financial Report
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FUJ00115976
Ref: PA/REP/0G6
Version: 1.0
Date: _ 06/06/2001
ICL PATHWAY
Cash Flow, Balance Sheet & Working Capital
CASH FLOW
Revenue Recognised
Cash Costs
Interest
Working Capital Movernent
Fixed Asset Additions
Share Capital Increase
Cash Inflow / (Outflow)
Opening Net Borrowings
Closing Net Borrowings/(Cash)
Closing Analysis
Special Purpose Vehicle Borrowings
ICL Cash pool balances
Closing Net Borrowings / (cash)
BALANCE SHEETS,
Net Fixed Assets
Project WIP
Other Working Capital
Provisions.
Share Capital
Retained Eamings
Net Borrowings / (Cash)
[[_ Month of May 2001 IL Year to Date ]
May May
Actual I Forecast_I Variance Actival Forecast_I Variance
10.3 10g (0.3) 21.9 23 03
8.3) (9.6) 1] (15.9) (17.2) 13
0.1) oy) 03) (03)
(0.4 (40) (64) (18.0) (11.6) a)
o.) (0.4) (0.3) 03)
(8.9) G3.5)I (5.4) (13.5) (8.1)] (5.4)
40) 40] 4 (0.8) 0.8)}
129) 15 (5.4) 127] 13 (5.4)
35.0 55.0 5 55.) 55.0}
(32. (47.5) (5.4) (22.3) (47.9) (5.4)
129) 15 6.4) 12.7] 23] 4)
May
Actual Forecast
54.6) 54.6)
106 17]
(12.2) (18.6)
(4) 427)
48.3) 43.0)
1517] 151.7]
(116.1) (116.0)
129) 7.5)
48.5) 43.2]
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ICL Pathway Commercial & Financial Report
Ref:
Version
Date:
FUJ00115976
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PA/REP/066
10
06/06/2001
WORKING CAPITAL
Debtors and Accrued Revenue
Prepayments
Trade Creditors
Accruals
Interco Balances
VAT.
Total Working Capital
May
Actual Forecast Variance
19.4) 17.4) (2.0)
14 1.0] (0.4)
(2.9) (9.2) (6.3)
(6.2)] (4.4) 18
(6.7) (5.2)] is
(17.2) (18.2) (1.0)
2.3) (18.6) (6.4)
Cash flow in the month was £5.4m worse than forecast. This was due to a combination of lower than forecast debtor receipts and highethan
forecast supplier payments. On the supplier side, the resolution of long-standing account issues with both Energis and nt resulted in payments
of old invoices. The full amount of these payments had not been forecast for May.
Project WIP was lower than forecast, due to the reduced project costs.
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Services
FUJ00115976
FUJ00115976
ICL Pathway Customer Services Report Ref: PA/REP/066,
Version: 1.0
Date: 06/06/2001
Customer Services Report
1. MONTHLY SUMMARY
There have been no major operational .issues with the live service this month. However there
has been a significant drop in the SLA achievement for reference data counter delivery. This
is because the SLA is now being measured through use of the new acknowledgement agents
and the deployment of M1 has caused issues with non-delivery of reference data by 3am'to
migrated outlets. These issues are under investigation.
SO3 has been applied with no-issues.
Agreement has been reached-with PON on the-SLA Day D Rectification Plan. The PSTN
laptop solution will totally replace the Satelan and AP Paper recovery solution. This will be
deployed end 2001.
Work is progressing on the implementation of GGP. Reference data activities on the forms
printing service is going well. The live test system is mostly installed and work-is progressing
on the pricing and description Contents Hosting Service
Work is progressing with TDA to put to: bed our final position on SLA’s and service
availability.
There are still a number of Quantum issues that are causing concem to POCL. Work is
progressing.on the resolution of these issues.
There will be approximately 89 counters being passed across to us from implementation. This
is much higher than expected but it should be able to be handled by CS with some temporary
assistance from Implementation.
ACS OMR will be carried out over the next 2 weeks
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ICL Pathway Customer Services Report Ref: PA/REP/066
Version: 1.0
Date: 06/06/2001
1.4 VITAL-STATISTICS
Live Base as at 25th May 2001: 17,517 Post Offices, 38,178 Counters
Cumulative Data is from 1* December 1999 to 25th May 2001 inclusive
Monthly Data is from 1 May 2001 to 25th February 2001 inclusive
OBCS
Total number of transactions to date 601,887,700
Total number of transactions in May 43,980,084
Total value of payments to date £46,802,440,990
Total value of payments in May £3,771 ,484,332.59
EPOSS
Total number of receipts to date 734,011,908
Total number of payments to date 137,492,320
Total number of zero value transactions-to date 59,800,087
Total number of receipts in May 49,494,023
Total number of payments in May 7,151,475
Total number of zero-value transactions in May 4,715,129
Total value of receipts to date £41,045,997,099
Total value of payments'to date £12,979,913,935
Total value of receipts in May 2,997,593,309
Total value of payments in May 723,652,544
APS
Total number of transactions to date 251,442,963
Total number of transactions in February 21,986,657
Total value of receipts to date £6,662,417,028
Total value of receipts in February £559 ,586,843
NOTES:
e EPOSS.zero-value transactions include issue of books, change of address, etc.
e¢ Cumulative Data from May 1999 will be published once analysis of archived Data
Warehouse data is complete.
e¢ Weekly data is now available on the Customer Service web site.
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ICL. Pathway Customer Services Report Ref: PA/REP/066
Version: 3.0.
Date: 06/06/2001
2 PROGRESS
2.1 OPERATIONS & SUPPORT
2.1.1 ACHIEVEMENT AGAINST SLA
2.1.1.1 BUSINESS INCIDENT MANAGEMENT
Achievement for May 2001 is not expected to reach conformance of 100% due to on
going delays in acquiring data for receipts and payment incidents. This is currently the
subject of a review with the SSC re the re-deployment of staff to MSU.
2.1.1.2 HELPDESK AND SYSTEM SERVICE
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ICI. Pathway Customer Services Report Ref: PAPREP/O66
Version: 1.0
Date: 96/06/2001
2.1.1.3 DATA FILE DELIVERY
2.1.2 NETWORK
The operational service has run with a good level of stability through the month.
2.1.3 BUSINESS CONTINUITY
Business continuity testing has by and large recovered from the delay caused by our
customer's MBCI over OPTIP.
A number of the centrally-held Business Recovery Plans have been extracted from the
database and will be updated in time for the BRAO! Disaster Recovery walkthrough
planned for June.
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ICL Pathway Customer Services Report Ref: PA/REP/066
Version: 1.0
Date: 06/06/2001
2.1.4 SUPPORT
The call rate has remained at a lower level during May. The one significant
operational issue related to files being sent to TIP twice..SSC staff were inyolved in
resolving this. Also a number of Outlets going through Mi migration required
technical assistance from SSC staff.
John Simpkins has been involved.in early work on GGP.
Initial work towards identifying non-functional requirements for Network Banking
has been undertaken There is currently a risk that if all Network Banking transactions
are encrypted then SSC will not be able to provide support.
Total calls raised through SSC - 419
Total calls closed through SSC - 438
2.1.5 REFERENCE DATA
Day to day service is running well.
The. Reference Data for ACP has caused some problems and for the final service is
still to be resolved.
GGP forms printing data is available and it looks as though GGP will be OK. ICON’s
for GGP are now being processed.
The RDMC workstation re-build has been performed on one workstation and is
largely satisfactory. The intention is to move this.on to the other workstations and
then implement security. A meeting is to be scheduled by PIT.
Message broadcasts continue to run at an average of I per day.
AP Client migration continues - there have been a number of minor issues but largely
the change-over has gone according to plan. The introduction of the new CTO
service is still pending final sign off of the CCN.
Audrey Adams has raised a CP to improve the issues with Cash Account for new
year,
RDT have been asked to look at'the possibility of providing additional proving for the
Scavenger.Agent. A proposal has been put to Gill Jackson and we are awaiting her
comments..
A counter connected to the RDT Rig has been made available to Eposs Development.
This supplies them with up-to-date.reference data.
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2.1.6 POCL INTERFACES
The overall service on APS remains generally good. There are issues over Quantum -
see later section.
There was one significant operational issue-where files were sent to TIP twice.
The LFS pilot within PON has continued through the month.
2.1.7 AP CLIENT MIGRATION
DVLNI and.a further 23 Girobank clients have’been successfully migrated to Horizon
on 16" May. A further Girobank migration has been scheduled for 30" May.
The SWALEC DIT is complete and the DIT report has been issued for approval.
The NIE DIT week 1 is complete and one issue has been raised, which is currently
with HAPS for investigation.
RSA have indicated that they are reviewing their relationship with the Postoffice. All
activities are on hold until further notice.
The start of the ACP DIT is delayed due to problems with the reference data.
PON have assured us that the Talexus CCN will be approved without creating a
funding gap for Pathway. Schlumberger has provided Talexus keys for development.
The hardware used for FTMS gateway is not available any more. TDA are looking
for an alternative, which PIT will have to test. Currently with TDA and escalated to
Cliff Wakeman. The new gateway spec is expected by 29th May.
The implementation activities for TVL are behind schedule. The: site survey is
complete. Awaiting update on ISDN lines.
The introduction meeting with Consignia Customer Management regarding BBC
Renewals has again highlighted the need to improve.our process for client interaction.
This has been refereed to Business Development.
2.2. INFRASTRUCTURE SERVICES
2.2.1 MSU
2.241 SERVICE PERFORMANCE
We are still reviewing the historical System Service remedial payments invoiced to
PON for September 2000 to March 2001. Currently we have only cleared to August
2000 — this delay is entirely applicable to PON who are slow in providing a response
to our submissions. It is expected that we will have November 2000 completed by the
end of May. 2001. MSU are submitting current months to PON in accordance with the
time scale agreed.
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The poor coding. within the HSH is hampering software call remedial calculations.
MSU are leading a team from both the HSH and MSU to resolve the issue and revisit
the call matrix. The delivery of software calls to PON has been relegated in priority
due to their backlog in dealing with the hardware / network presentations. This will in
turn give ICL Pathway time to ensure that software calls are not classed as remedial in
error.
MSU have designed an Access database to calculate the SLA and the remedial
payments due for all hardware, software and network calls. This is currently
undergoing testing and will be used by the HSH via direct access to the MSU'V drive.
This will remove: the neéd for separate sets of data, maintain an audit trail of call
corrections and is dynamic in the sense that the SLA calculations will be reviewed
each time a call is amended or re-coded. We will be using this database in the live
environment from June 2001.
2.2.1.2° INCIDENT MANAGEMENT
Receipts and Payment mis-balances continue to form the bulk of the incidents
received. These are being dealt with as high priority and tracked as cross-domain
problems. MSU are insistent that all fixes are progressed through to the live estate as
quickly as possible to avoid financial integrity issues.
APS reconciliation continues without any real problems other than PON delays in
providing TIP processed values. We have written to PON expressing our concern. in
being unable to provide the daily reconciliation in accordance with the joint
agreement when the delay is entirely attributable to their own system issues.
Network banking report specification has been completed and is subject to a review
with the TDA this week. I believe we have been sucéessful in ensuring: a
reconciliation system. that not only reports by exception but also provides a daily
reconciliation at all points'in the process.
2.2.1.3 IT SUPPORT
No real issues. We are looking at the processes required to take on the asset
management and IT ordering processes for the entire Large Projects Division. MSU
are currently reviewing the procedures necessary with representatives of all the
applicable divisions and with HR. It is expected that this work will commence in the
very near future.
2.2.1.4 OPERATIONAL SERVICES
The newly created team within MSU has now settled in within FEL 0! and BRA 01.
This team continues to cover the existing problem management, CP, PCCB processes
within CS but now also has responsibility for the non-polling function. No problems
are currently reported.
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2.2.2, STRATEGIC SERVICES UNIT
2.2.2.1 FIELD SERVICE MANAGEMENT
By the end of May a total of 315 Site visits will have been competed by the FSM
team
Frensham Way was successfully re-rolled and migrated on the 2" May, using a
satellite solution. There were a disappointing number of early-life and fail-on-fit
cquipment failures, which initially made it difficult to assess the system performance.
Following discussions with PON and the local Federation of Sub-postmasters, the
office was placed under the control of a PON HFSO for a fortnight, to assess the
situation impartially. During this period some disruption of the office LAN was
observed. This was traced to working practices in the office, where a lot of business
was transacted within a single customer session, which appeared to overload the
LAN’s capability. Third line has raised this with the TDA and Escher. Overall, the
system behaved to specification, and the HFSO reported that it was fully usable.
Whilst the office has been able to trade normally, there has been some disruption of
the satellite communications. On at least one of these occasions, the cause has been
traced to vandalism damage of the satellite dish. Further incidents are under
investigation. HOT have been asked to submit proposals for a cowling to protect the
dish. The original operational problems at Frensham Way have not recurred since the
transfer to satellite communications. As such, the Divisional Alert will now be
closed.
Dave Law and Reg Barton attended two days of the National Federation of Sub-
postmasters annual Conference to gauge attitudes to Horizon. Delegates were
mainly concerned at the lack of interest shown by PON in progressing system
operating improvements.. Concems were also voiced over system problems with
Quantum cards, loss of Northern Ireland Electric work, and stow running. A number
of service improvement opportunities were raised, and a full report has been compiled
and circulated.
2.2.2.2 SERVICE MANAGEMENT
2.2.2.2.1 CUSTOMER COMPLAINES
The table below shows Customer complaints received between 1‘' May and 29" May.
Complaints are received from 3 sources: NBSC, PM's directly and referrals from
Support sections. After investigation, the team has identified that approximately 60%
of complaints raised are not justified, all complaints are responded to and
investigated.
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We have responded to 42 complaints = 19 justified and 23 not justified.
Wrong I Attitude I NBSC I System I Install I Engineers I Electrics
Advice
Raised to 18 3 0 14 6 0 1
CS.
Raised to 6 1 0 12 0 1 0
HSH
Referrals to PON - 5 problem sites and 12 complaint calls.
To date 22 outlets have been referred to PON for retraining, 19 have completed
retraining. 11 have shown a dramatic reduction in calls to the Horizon Helpdesk since
retraining has been completed. I lare still on monitor until calls have reduced, or
further action is required by PON.
The complaints from NBSC have remained fairly constant.
The HSH complaints have increased slightly, this is due to the M1 release.
Complaints regarding Agent attitude have dropped again in this period. I am sure this
is due to the measures that have been put in place at HSH to deal with these problems.
All issues have all been addressed individually by the advisor's managers and. are
alerted to the Call Centre Manager and the Operations Manager.
Wrong advice complaints remain fairly high; these are still being monitored. HSH are
recommending refresher courses for offending agents.
System issues remain high, these include non- polling problems, Quantum issues,
slow running counters M1 issues and "Blue screen problems. Implementation issues
are starting-to increase as the rollout team disappears.
HSH CALL REDUCTION
The chart below shows.the:results to date of the impact:of'an MBS message sent to all
outlets to reduce the number of inappropriate calls being received at the HSH. The
results are disappointingly low at 12%, however May includes the M1 upgrade. June
will be:-monitored for any further improvement. This still equates to a £497k saving
over the life of the project.
Inappropriate Calls passd to the NBSC
Results prior To The WBS Message Rasults after WBS Mostago Apa] Way E
ULEpT [USK I TeAo I Sake I SOAR I 07 Way I TeMay I 2PNGy, Avarage I Averaga I DecroasoI Saving
ion 37 5B 7) 7 73 5] T ‘J O18 LUST
[Tue 280/264) 237] 208 21s} 22401 22I 2e7] 218] 12% £1.70
wee 416] 387] 348 353] 277] ar] 39 378I 343] 9%] £ 2085
Thy 282] 250) = 243] ssf 230] 2244 223] 263] 258] 240] 7%I £1,050
a 221] 208 208) 2001764 174 179] 173 208I 174 16%] £2,045
Sat a) nt 91 ES 74I 89] 3 c) 96} esl so%] £500
Sun I ol Q I 1 d I 1 of 1] soar [£30
otal Calls] ——Te06] —Ta78} T3951} —1 T2867] TOS re 1373} ves} ram 12% COSTS
(aH) I (aH) (8H)
Wrage taken Tor THO and TOE eeiage ken for Monday O77
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2.2.2.3 OUTLET BUSINESS CHANGE
Committing time to introducing OCMS into OBC is proving difficult. After months of
delay in getting the application, it has been made available at the time when OBC
work is at a peak —~ initially the end of year PON ‘clear-out’ and now the
Implementation tail. Where time has been put aside, basic problems have been
encountered such has no terminals built, no secure-ID issued, wrong IP addresses
installed. ] am committed to getting this in, but it will be as time and resource. allows.
In the meantime, the team is continuing to use the manual processes and their local
Access database to meet the OBC task. Geoff Coxon is available to update the ACDB
until the end of June for new outlets, after which, SSC will need to assist until OCMS
is in use.
CS takes on the Implementation Tail as of 4" June. It appears’ there will be’89 outlets
coming across. The team has been working for some months on procedures and
processes and is ready.
The following tables show actual deliveries for May and firm orders for changes up to
the end of September.
Opening/Relocation/Refurbishment (Outlets)
Month Total Actual Deliveries Actual Deliveries Additional
Deliveries I Allowed Within to Contract
Contract
May 119 23.76 95.24
Month Total Forecast Deliveries I Forecast Deliveries
Orders Allowed Within Additional to Contract
Contract
June 117 23.83 93.17
July 80 Not yet Available Not yet available
August ll Not yet available Not yet available
September 1 Not yet available Not yet available
Closures (Outlets)
Month Total Actual Deliveries Actual Deliveries Additional
Deliveries I Allowed Within to Contract
Contract
May 33 14.85 18.15
Month Total Forecast Deliveries I Forecast Deliveries
Orders Allowed Within Additional. to.Contract
Contract
June 14 14.89 Not yet exceeded contract
July 1 Not yet available Not yet exceeded contract
August 0 Not yet available Not yet exceeded contract
September 1 Not yet available Not yet exceeded contract
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Implementation Tail (Outlets)
Moath . Total
June 35
July 36
August 1
September 4
2.2.3 BUSINESS EFFECTIVENESS
Scope of the BET expanded to extend the tried.and tested process engineering work
previously carried out within CS across the whole of Pathway.
Pathway Business Process Architecture (PBPA): Stephen Muchow agreed to own and
sponsor the development and maintenance of a PBPA, which will drive top-down
process enginecring within Pathway.
Preparation for the October ISO audit: Continuing.
Process definition projects on hold: (a) Release Management awaiting Pat Lywood
validation and approval, (b) Management Care awaiting policy input from Paul
Westfield.
Ongoing process definition projects: (a) AP Client Take-on, (b) Field Service
Management, (c) MSU Remedy Reporting, (d) Addition of Virus Management within
Incident Management. :
New projects started this month: (a) Review of OBC driven outlet change processes.
Process issue management / resolution: (a) improvements to the Problem
Management Process to improve the handling of complex problems, (b) cross-
dependency between reference data and release management.
Inputs to new projects: (a) Process inputs on GGP incident management, (b)
Attendance at Network Banking workshop to gain awareness.
2.3. SECURITY MANAGEMENT
a. CP 2945 & CP2991 for implementing/updating anti-virus software on the live
estate have both received CCB approval. Work can. now begin on agreeing
business process for event handling with SMC and ISD. A.new Common Objects
distribution ‘procedure: for anti-virus software has been agreed and documented.
The MANLCF Tivoli product, upon which delivery is dependent, has been
prepared and made available in preparation for PIT/ISD distribution. First
distribution of AV contents have been delivered ready for PIT activities
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b. Work continues on a new PID for the introduction of compliance, vulnerability
and intrusion detection toolkits. This will facilitate central monitoring of the live
estate in anticipation of NB requirements. Implementation will need to be
progressed via CP.
c. Discussions on security requirements for Network Banking continue at ongoing
workshops. Outputs will be consolidated in.revisions to the SRS and SDS. Input
is also being provided to consolidate emerging security requirements for GGP
hosting solution.
d. Work continues in conjunction with Consignia on defining Data Controller /
Processor responsibilities under the Data Protection Act and agrecing the Subject
Access Request procedure.
e. Four Audit Data Extractions were completed in response to Consignia and internal
requests. Associated witness statements were provided where appropriate on a
“without prejudice" until contractual agreement is reached. Consignia will shortly
be raising an associated Change Request. A meeting has been arranged with
Consignia to clarify their future requirements for audit data to support
investigations.
f. An audit of SecurID users is underway to ensure only legitimate access is
permitted. A revised process for new logons and. SecurID accounts is being
developed to reduce paperwork, enable closer tracking and improve service
tesponse times.. The RSA Security "SecurID Ace Server Maintenance" contract
has been-renewed.
g. The Key Manager successfully processed all key requests received this month
including approx. 100 successful rollouts. The KMS Key expiry exercise
continues and 200 outlets have now been sent Memo View prompts. The results
are encouraging; few outlets have contacted HSH and analysis shows that only 6%
have ignored all five prompts. There will need to be a formal follow-up process
for these outlets that do not respond correctly to prompts.
h. An information security control grid is being prepared to facilitate the
production of self-assessment schedules necessary to review levels of
compliance across the organisation as part of the BS7799 Workshop
initiative in support of ISO9001 accreditation
2.4 SERVICE INTRODUCTION
2.4.1 NETWORK BANKING
Work is just commencing on the implementation plans and the non-functional
requirements.
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2.4.2 GGP
The Live Test system requested by PON is mostly installed and CGEY have been to
BRAO1 to install their software.
Work is continuing on the service description for the Content host and the associated
costs for providing an end to end service for GGP.
Normal CS implementation is a bit behind for GGP but a meeting has been arranged
for this Friday.
2.4.3 OTHER RELEASE ACTIVITIES
Correspondence server 1 rebuild - May
Delayed due to wing server build being incorrect
Key reissue —April / May
Process under development for this.
Level 2 CS programme plan - Peter
Peter should be updating and reissuing this week
MI counter migration— April / May
98% complete. I have advised the customer that we should hit 100% by 15"
June
OCMS- Aptil / May -
BRAOI clients installed
KIDO1: Awaiting confirmation of how Dave Law/Sharon Tushingham want to
progress this.
POLO server removal - Pat
This is now a process issue.
No progress last month
Rebuild of RDMC workstations - May - Sheila
One RDMC wis has been rebuilt -- Several PinICls raised but no show-
stoppers. Ref data waiting for network cards from Janet Beard — Once these
have arrived they will arrange for [SD to complete the rebuilds
Remote general purpose gateway installation
Still not working yet. Dave Johns is managing. These were in response to
some CS CPs so’! presume someone must. want it to work - somewhere in
Paul’s area!
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2.5
2.6
3.1
S03 —May
Applied with no issues. It needs a TIP file resent and accepted before we can
presume the code is working OK:
S06 - June
Planning is ongoing. This is due to happen at the datacentre from June 18"
until June 30th
S10 - September - ????
Planning on this will not start until the end of June.
SLA Day D - June & September.
Counter-generated message broadcast — this is largely on hold until S06 is
installed but I will review with Paul regarding resource.
Talexus
Appears to be ticking over. I will review plans with Klaus this week if
possible
Wing server rebuild — May
Delayed due to a problem with the build supplied by PIT.
UK versus US date issue - Mick
Waiting for info from PIT on the way forward.
FINANCE
STAFFING
Rebecca de Jong Berger has left the release. management team and Sarah Payne has
joined.
Mick Edwards has joined to work on release introduction.
Rakesh Patel and Peter Morgan have left the SSC.
ISSUES & RISKS
OPERATIONS & SUPPORT
The. Reference Data SLA is now being monitored more accurately by DWH
information however it is evident that there are still gaps in the information to be
strictly accurate about the SLA as worded in schedule G10. We are looking at ways
of making the data more meaningful but the fact still remains that the SLA as
currently set up achieves little.
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There are a number of issues with Quantum which are being managed as problems by
CS, but with considerable activity required of Development staff.
3.2. INFRASTRUCTURE SERVICES
3.2.1 MSU
The BIMS SLA has been missed for several quarters due to the ongoing delays in
acquiring data for receipts and payment incidents. This is currently the subject of a
review with the SSC re the re-deployment of staff to MSU.
3.2.2. BUSINESS EFFECTIVENESS
The expansion of the scope of the BET to include the whole of ICL Pathway will
increase the workload significantly. It is planned to balance this with efficiency
savings of at least 30% to avoid the:need to expand the headcount above its current
level of 4.5. One of the team’s headcount (0.5 head - part-time) is currently on
maternity leave and the increase in workload will require that an extra 0.5 head is
made available until the permanent employee returns: Achievement of the 30%
efficiency saving will depend on the-extended use of “fast-track process definition”,
high moral within the BET and increased output from the team. There is currently a
risk that one member of the team may not be able move along the planned path. It is
intended to address this risk within the next month.
3.2.3. STRATEGIC SERVICES
The lack of time and resource: to introduce OCMS into the OBC team as described in
section 2.2.2.3.
Confirmation of ISDN lines being available for next week’s implementation tail and
beyond is still awaited from Energis.
3.3. SECURITY MANAGEMENT
a. A co-incidental DLT failure at both datacentres has resulted in an incomplete
TMS audit trail. This was compounded by a loss in transit of one tape sent for
analysis. The issue has been raised with the Customer-and will be managed under
normal problem management procedures. The requirement to undertake large data
extractions continues to have a detrimental effect on the availability of the audit
servers.
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b. There is an urgent requirement to introduce the KMS smoothing algorithm to
eliminate the expected key expiry peak and to develop procedures for those cases
where Postmasters fail to respond to associated memo-view prompts. Ideally this
should be informed by management exception reports via Tivoli and would need a
CP to progress.
c. The Key Manager raised five calls including three reported ‘blue screens’ on the
KMA Workstation which is impeding the key generation process.
d. Security input to Network Banking and emerging GGP requirements continues to
place a strain on existing resource, which is fully engaged in supporting the
existing Horizon solution.
3.4 SERVICE INTRODUCTION
GGP implementation has to be seen as very risky. We are bucking a lot of the rules to
get this installed inthe time scales and will have to do an amount of back work later
to ensure we have the systems under control:
The amount of time available from TDA to assist with the S06 and S10 migration
could soon be an issue. I am discussing this with TDA today.
3.5 FINANCE
CS Budget for OPEX 2001/02 is £56.7m
Business Model 170301.is £56.5m
Forecast CSApr01 is £55.9m
The major forecast changes from March actuals and forecast, which has been set as
budget, are £600k forecast reduction in HSH costs due to Q1 actuals, and £250k net
forecast increase in OBC revenue.
The Business model was found to have a volume error relating to HSH, and needs
updating with current call data.
The budget needs increasing for 6 security heads.
Next Stephen Muchow: review 14" June.
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Quality & Risk Report -
1 MONTHLY SUMMARY
° Quality. Responsibility passed from D. Groom to J. Holmes. Work:started identifying
transition from: 1994 to 2000 version of standard.
. Audit. OBCS audit with PON IA complete. New Business and BS7799 Compliance
audits underway
Rejuvenation of the Security & Audit Panel. First meeting planned for 18" June.
Contributions to Audit Solution and other changes for Network Banking-made.
2 PROGRESS
2.1. QUALITY
Responsibility for Quality has-been transferred from Dave Groomto Jan Holmes. The
primary objective for 2001 is the transition of Pathway's Certification from the 1994
version of the standard to the 2000 version. This is targeted for November this year:
There are a number of organisational changes underway and I anticipate that June will
see these completed and a plan of work leading to the November 2001 re-assessrnent
emerging. The changes in the standard are not overly burdensome although they do
introduce the need for process measures and clear evidence that steps are taken by the
organisation to continually improve their processes.
-2.2. AUDIT
Internal audits completed during this month include BS7799 Security Requirements
Compliance and Order Book Control Service. This latter audit was carried at the
request of PON Internal Audit and involved tracing four Stop Notices through the
system from receipt from ESNS, through delivery to the Counter, PM action and
subsequent reporting to ESNS and TIP. A considerable amount of audit data was
extracted, especially as BA were not particularly helpful and would not tell us when
the Stop Notices were deliveréd. Three of the four proved to be relatively
straightforward but the fourth, located by PON IA with typical auditor's luck was an
extremely complex and convoluted story. I'm please to report that the audit data
recovered provided a complete end to end trace.
An audit of New Business Introduction has been started and will report during June.
The audit is using Network Banking as the sample 'new business’. Further audits of
GGP and Universa! Banking will take place along this theme.
Since March the outstanding Corrective Action Plans have been subject to rigorous
review and I'm pleased to report that-there-is now only one outstanding action from
the 2000 Audit Plan.
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2.3. AUDIT SOLUTION
As well as auditing the. Network Banking project we are contributing to the SRS and
dealing with audit related questions. Internal requirements for the audit archive
solution are being developed
2.4 CUSTOMER INVOLVEMENT
We are going to re-introduce the Audit Panel to PON Internal Audit during June and
expand it to include Security. This working level forum exists to allow PON and
Pathway security and audit staff to deal with day to day issues in an informal but
professional manner. The concept was used successfully during the period leading to
Acceptance and it is felt that the advent of Network Banking and other new services
provides the opportunity to revisit it.
We have been directly involved with PON IA in an audit of OBCS as described
above.
We have had to report a break in the audit trail to PON IA. We have a gap-of 6 days
during August’2000 where we can not extract TMS records from either the Bootle or
Wigan archive tapes. This unfortunate coincidence of tape failure has been
exacerbated by TNT ‘losing’ the Wigan tape between Wigan and Feltham where it was
being brought to allow specialist diagnostics on the test rigs. We are dealing with
TNT in an-attempt to locate the tape.
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Business Development Report
1. MONTHLY SUMMARY.
Another good month with useful progress all round. New business taken so far this year is
over £4million.
The.top level management of Post Office Limited has been announced. It is still scheduled to
be operational at the end of September, although some of the units will be functional before
then, e.g. Alan Barrie’s unit.
I am now embarking.on a mission to turn us back into a real sales led organisation rather than
one which reacts’ to customer requests in a contractual framework. This will need us to be
more proactive and responsive to the customer.
2. PROGRESS
2.1 I BUSINESS DEVELOPMENT
Network Banking:
¢ Work continues on the SRS and SDS, although not without its challenges. We
have submitted the SRS to the customer for comment and have received many
hundreds of comments. A new version will be issued during week Commencing
11/6.
e A task force has now been established under the management of Alan d’ Alvarez
to focus on the production of the final SRS and the SDS.
e There has been very little progress on the customer front in terms of the
appointment of a programme manager. A new consultant will take up position
during June, Louis Prastitis, from French Thornton. Louis’ title will be Delivery
Manager.
e We continue to have difficulties with IBM who have not signed the Non
Disclosure Agreement. IBM are also deemed by Post Office to be performing
badly. There is certairily an opportunity for us to get back development of the
front end application and possibly the running of the NBE.
e Post Office have employed QA systems (formerly Pontis) to undertake an end-to-
end review of the Network Banking solution. We have not yet met QA as there is
no NDA in. place and we have consistently asked for terms of reference which
have not been forthcoming.
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ERA:
e ERA continues as the strategic way forward for PON. They have taken a two
week pause on the ERA work to consider the correct way forward. This work is
mainly being undertaken by ICL Pathway and will be presented to Post Office in a
workshop on 8'" June.
© Our approach to ERA is very-dependent.on Escher and development of a strategic
Workflow product.
Government Gateway:
e Excellent progress with all stops being pulled out. There is still a very tight
schedule in place with no contingency. Progress to date puts us in good shape for
a full bid.
e We are now fully engaged on provision of kiosks, the network, contents hosting
engines and forms printing on the Horizon system. We are now a full member of
the Programme Board attended by Paul Rich.
e Plans are now being developed for the next phase of GGP assuming success for
the pilot.
Contract Renewal:
e Plans are currently being drawn up following a workshop to‘consider alternative
ways forward.
EFTPOS:
e Proposals now drawn up for implementation in the Network Banking release.
Mails:
e A successful reference visit has just taken place to Austria Post. The challenge
now is when we.can implement Mails.and whether an-interim step is a good idea.
Service Improvements:
© Post Office have now shared with us upwards of 20 potential service
improvements. We are assessing the impact of these and looking at when ‘they
might be implemented.
e AP server: Proposal due in to Post Office in June.
e AP Barcode Extension — Discussions on-going.
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ICL Pathway Business Development Report Ref. PA/REP/OG6
Version: 1.0
Date: 06/06/2001
e Asylum Seekers - No progress
e EMU/EURO - Study .exercise underway. We have also completed some
demoware to show the possible use of a calculator function to facilitate the
conversion. from sterling to Euro and vice versa.
e Talexus: A signed CCN for the Talexus work is imminent. Post Office do not yet
have a signed up client but they see Talexus as a key product in the market, hence
the move to proceed.
Consignia:
¢ =SMPP/e-infrastructure.
e Ian Lewis now has established some of his own contacts and has meetings on
Consignia Infrastructure and Platform 2000.
e SMPP/Peregrine. ISD have, at last, received the long awaited Peregrine
agreement now that Consignia have signed the CMS agreement.
e SPICE (Business) KnowledgePoo! Progress will now slow down -further work
packages will continue for the next few months- and it is believed that both
Consignia & Siebel well. may conduct the Service SPICE training requirements
themselves.
e Total last year revenue. was £723K with a much lower than anticipated margin of
13%:due to higher than expected Project Management (non-chargeable) and fixed
rate venue costs higher.
e WDM. The re-contact internal debate has produced a new pricing model which,
whilst improving customer satisfaction, equally looks like a hefty price increase.
Next month will see.the agreed proposition being taken to ParcelForce Worldwide
by Pat McCann - delivered service quality remains high.
e ITT $173 Consultancy: An active procurement, at ITT Master Purchasing
Agreement stage in order to negotiate the-"Panel" agreement. Note :-originally 13
Lots advertised, went for 11, selected at ITT stage for 4 and have made the final
selection for 2 (IS Support, Security) Contract start date scheduled for June.
e ITT IBM Maintenance: [SD unlikely to proceed having realised that 70%-ish
would need sub-contracting, & 30% is distributed with challenging call to fix
times. This ‘is undoubtedly the right decision. but exposes weakness in ISD's
capabilities and market direction.
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ICL Pathway Business Development Report Ref: PA/REP/066
Version: 1.0
Date: 06/06/2001
2.2 HORIZON COMMUNICATIONS
e We have now received a press plan from Post Office covering the end of rollout.
This is promising and should lead to some good press coverage. Meeting takes
place with Post Office 11" June to discuss.
3. ISSUES
None
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yJoday
uoneyusWsIduy
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FUJ00115976
FUJ00115976
ICL Pathway Implementation Report Ref: PA/REP/066
Version: 1.0
Date: 06/06/2001
Implementation Report
1 MONTHLY SUMMARY
A total of 17,700 Post Office outlets have had the Horizon system installed, as at the
close of business 30th May 2001. This represents 99.3% of the agreed number of open
outlets (17,831).
The Implementation unit has successfully handed over responsibility for installations to
Customer Service: (CS) as at 1* June.
2 PROGRESS
Installation Activity
A total of 17,700 Post Office outlets have had the Horizon system installed, as at the close of
business 30" May 2001. This represents 99.3% of the contractually agreed number of open
outlets (17,831). The actual number of open outlets as at 31 May (as registered on the
Rollout Database (RODB)) is 17,799.
The average number of outlets installed-weekly over the past four weeks is 20.
Last month we forecast that the number of outlets to be handed over to Customer Service for
install after the end of May would be circa 85, the actual figure is 90.
The. Post Office were keen to ensure that from mid-June there were no more than 60 outlets
remaining to be installed. Mid-June is the period when the Post Office Implementation team
hands over responsibility for remaining installs to their support organisation. The situation at
the end of May ‘is that there will be circa 71 offices remaining to be installed at the mid-June
point, which includes 10 offices that were previously removed from the Rollout Database, and
subsequently resubmitted as OBC20 requests for install. Given that ICL Pathway could not
have installed these 10 offices any earlier as they had been removed, there are 61 outlets
remaining to be installed from the total number. of outlets registered on the RODB.
A significant number of the remaining outlets awaiting install were initially delayed due to
VSAT planning permission. As at 31 May there were 39 VSAT sites still waiting for
Horizon to be installed.
Implementation Closedown
The handover of Implementation activities to Customer Service has completed. A final review of
transition activities took place on 18" May, which raised no major concerns.
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Version: 1.0
Date: 06/06/2001
Implementation-led management of installs completed on Friday 1% June. Customer
Service have full responsibility for the remaining installs from Monday 4" June. A
member of the Implementation team will continue to work alongside the C$ team. to
provide support until the end of June.
The remaining Implementation staff will bé closing down during the first two weeks of
June, however, they will be available to support the CS team if required.
Summary of Rollout Status
ACTIVITY NGE ULATIVE
Number of Open Post Office Outlets 0 17,831
INSTALLATION PROGRAMME
Sites Migrated and Live +77 17,700
Percentage of Open Sites Live 40.5% 99.3%
3 CURRENT CRITICAL PROBLEMS
No new critical issues have arisen.
4 ISSUES
As reported last month, the Post Office have alerted us to a number of complaints
received from postmasters about mobiles and Personal Earth Stations (PES) being
excessively noisy.
We have demonstrated to the Post Office a prototype mobile fitted with a quieter fan.
However, when this prototype was demonstrated to a postmistress she would not
accept it due to the fan noise. We are now investigating options for even quieter fans.
The strategy for dealing with the. PES is to re-site them where possible, and to
investigate options for an acoustic cover.
5 COSTS
The Implementation forecast remains within-budget.
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Organisation
& Personnel
Report
FUJ00115976
FUJ00115976
ICL Pathway Organisation & Personnel Report Ref: PA/REP/066
Version: 1.0
Date: 06/06/2001
Organisation & Personnel Report
1 MONTHLY SUMMARY
2 PROGRESS
. Appointments in May: .
External Recruits
Transfers In
P&PS
LINKwise
Freelance
Fixed Term Contracts
Adecco Temps
TOTAL:
yr ooo C RN
° Known Joiners
External Recruits
Transfers In
P&PS
LINKwise
Freelance
Fixed Term Contracts
Adecco Temps
TOTAL:
wooooconn
° May Leavers:
Permanent Staff
Freelance
Transfers Out
Linkwise assignee
P&PS
Fixed term Contracts
Adecco Temps
TOTAL:
eH sooO-aH
. Known Leavers
Permanent Staff
Freelance
Transfers Out
Linkwise assignee
P&PS
Fixed term Contracts
Adecco Temps
TOTAL:
moocookuN
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ICL Pathway Organisation & Personnel Report Ref: PA/REP/066
Version: 1.0
Date: _ 06/06/2001
Replacement for John Hobson: Shirley Phillips joined 29" May and is beginning to
get to know the management team.
Implementation wind down: 12 employees have been redeployed and 1 has been
transferred to Linkwise.
Appraisals: audit for permanent employees now 100% compliant. Objective Setting
now well underway.
Pay Review: new salary data is now on the system and letters are planned to go out
2° Week in June.
Accommodation: Applications Development have now moved to block D the
remaining moves are starting to be implemented.
Resource Management
Di Jackson is now fairly well up to speed in the role, with support from N Phillips for
knowledge of Pathway. Di is working with the other LPD Resource Managers to
standardise processes and consolidate of resource information. EG: A new LPD RAR
process was introduced and is now bedding down.
The Manpower Reduction Costs plan shows a 6% reduction by QI and a 20%
reduction by Q3, mainly through continued reduction in use of freelancers.
Freelancer Reduction and replacement
Update 01-May-01
Summary No of Heads
Freelancers in Pathway 01/05/01 103
Freelancers in Pathway 31/05/01 100
Freelancers in Pathway 01/06/01 98
Current FC of Freelancers in Pathway on 31/02/02 50
e 3 P&PS transfers during May (2 new roles, 1 freelancer replacement), plus a
number of potential. transfers set for June. One new recruit for freelancer
replacement and 2 more starting in June.
e One significant high cost Freelancer released this month
e RARS are being prepared in a number of units for all freelancer replacements.
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ICL Pathway Organisation & Personnel Report Ref: PA/REP/066
Version: 1.0
Date: 06/06/2001
Recruitment
The second recruitment day on 16" May was targeted on testers. Of the 12 attendees,
2 were offered roles and one accepted (but for Integrator role). The quality of the
candidates was disappointing. A meeting on 29th May followed this up between
Computer People and their suppliers and the Pathway and Libra Hiring Managers to
discuss in detail the skills and experience needed. The suppliers should now
understand the different types of testing resource needed. Still some resistance from
Line Managers to recruitment-until the pay and conditions of existing staff has been
sorted. We are also in discussions with Barkers re targeted advertising. Other
suppliers are being considered and discussions have béen opened up with Capita.
Weare still looking at redeploying people from LPD, P&PS, Linkwise and other parts
of ICL. Vacancies are now being published on CafeVik Opportunities as well as the
P&PS Assignment Register. A single point of contact with ICL Permanent
Recruitment has been established.
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