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ICL Pathway
Bringing Monthly
Technology Progress
to Post Office Report
Counters CL
September 2001 Iii!
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ICL Pathway Programme Monthly Report Ref: PA/REP/O70
Version: 2.0
Date: 10/10/2001
Document Title: ICL Pathway Monthly Report —-September 2001
Associated Documents:
Reference Vers Date Title Source
0) PA/TEM/011 2.0 = 31/10/00 Pathway Programme —
Monthly Report Template
Approval Authorities:
Name oo Position Signature Date
Stephen Muchow Business Director
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ICL Pathway Monthly Progress Report
Contents:
@ Business Director’s Summary
Ye Commercial & Financial Report
3] Business Development & Consultancy
Services Report
ae Programme Report
oF Development Report
as
; Customer Service Report
ae Organisation & Personnel Report
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(CL Pathway Business Director’s Summary Ref: PA/REP/070
Version: 2.0
Date: 10/10/2001
Business Director’s Summary
1 PROGRESS AND ISSUES
1.1. BUSINESS PLAN
September’s financial performance was on forecast for Revenue, PBT and Cash. Cash
costs continue to track lower-than budget largely due to lower payroll costs, ISD costs
and non-utilisation of risk provision. The full-year September forecast for revenue and
PBT remains'unchanged.
We are reviewing possible ways of achieving the goal set by David Courtley to
improve the year-end cash position by £10M.
New Business orders now exceeds £9M against a full year revenue forecast of
£10.5M.
We are progressing the actions from the successful visit to Japan in August and a
follow-up videoconference to review progress is planned for early October.
Richard Christou is scheduled to meet John Roberts on 11'" October.
1.2) PROGRESS
1.2.1. CORE SYSTEMS RELEASE
There was a major network problem overnight on the 28'-29" September caused by
Energis imposing severe call concurrency restrictions and approximately 8,000 outlets
were not harvested. This issue is under review with Energis senior management. The
rest of month operated satisfactorily.
The main part of S10 testing has been completed.
The rollout tail is now down to 12 outlets for installation plus a further 3 outlets:to be
migrated.
1.2.2 NETWORK BANKING
During September, ICLP explained to POL that a BI3 Implementation in August 2002
could not be achieved and tit the delay to base lining their requirements was having
a direct 3-month impact to the completion of the ICLP testing. activities
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ICL Pathway Business Director’s Summary _ Ref: PA/REP/O70
Version: 2.0
Date: 10/10/2001
ICLP have restated the commitment to work with POL to help them create an end to
end plan that support.an April 2003 fully Live NWB Estate.
1.2.3. YOUR GUIDE (GOVERNMENT GP)
The Pilot continues to go well. PO held a re-launch event.on Leicester in September.
ICLP are talking to Consignia about lobbying Government on the national rollout
potential.
1.2.4 ERA
The programme may be resurrected, with likely focus on Mails, Stock Sales and
Stock Management.
1.2.5 CONTRACT EXTENSION
This topic is on the agenda for the RC/JR meeting.
Following the LPD strategy review on contract extension on September 20", a
Ttesoucing and costed bid plan are being prepared.
2 ISSUES
Despite the redeployment under the PLUTO 2 and EMEA resources, the planned
freelancer replacements in the Development team are still not being achieved, as there
appears to be no further suitable candidates from within ICL. Currently, headcount
savings are being reflected as an underspend in the monthly results, but further
freelancer contract extensions and increase overlap of permanent resources for
training and induction may put the full year labour costs forecast at risk.
The FJ Business Support Team have been briefed on the contractual issues around
Network Banking and further technical and other further briefings are planned to
assist in obtaining FJ approval for the Network Banking proposal.
LPD HR and Resoucing Managers are progressing incremental RARs‘to support the
increased activities.
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ICL Pathway Commercial & Financial Report Ref: PA/REPIO7O
Version: 2.0
Date: 10/10/2001
Commercial & Financial Report
1 MONTHLY SUMMARY
e Financial performance for September shows revenue on forecast at £10.1IM, PBT
on forecast at £1.4M. Year to date revenue is £5.3M above budget and PBT £1M
above budget.
e Total Cash Costs continue to track lower than budget and in September were
£1.8M better than forecast largely due lower payroll costs (headcount for both
permanent and freelancers were below forecast) ISD costs, and non-utilisation of
September risk provision. Year to date cash costs are £5.3M better than budget.
e No comments were received from POL on the draft CCN and schedule changes in
respect of Day D rectification plan submitted in August and thus the CCB
approved CCN has now been submitted.
e Work continues-on drafting changes to the schedules to the Codified Agreement in
respect of Network Banking.
e Four alternative Network solutions required for Network Banking and EFTPOS
were presented to POL, the alternatives described as Platinum, Silver, Bronze and
Silver/Bronze Hybrid reflecting the price banding and service levels. It is likely
that POL will select an option based on the FRIACO service offered by Energis,
the basis for the Silver and Bronze options. Discussions with Energis continue to
further fine costs, service levels and performance risks.
2 PROGRESS
© Continuing convergence on the SLA package and CCN.
e Neil McLaren (ICL Customer Finance — DrKW) met with Bob Jarvis of
Consignia’s treasury department to further discussions on Flexible Finance .
« Discussions started with Yasui-san and Imanishi-san (FJ Business Support team)
on possible request by POL to extend scope of FJ Guarantee to cover Network
Banking. It was also agreed that FJ Business Support team should start to
understand the project in order to facilitate FJ business approval requited above
ICL Group approvals. An initial introduction meeting is planned for early October.
3. RISKS
° POCL’s demand for work will outstrip our ability to supply. Currently ICLP are
trying to resolve the issue of POCL demand, ICLP resourcing and limited software
release windows until 2003.
© Work has started in assessing a risk plan for Network Banking. In parallel risk for
the Core Programme is underway.
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ICL. Pathway Commercial & Financial Report Ref: PA/REP/O70
Version; 2.0
Date: 10/10/2001
4 ISSUES
¢ Approval is being sought to allow external recruitment for RAR for a Commercial
Executive.
e The Finance Graduate identified last month chose to join ISD. Recruitment of a
temporary resource has started. This role is required to lend support to new
business, the LPD requirements for implementing Oracle Gold Build system and
LPD financial central services plan.
5 FINANCIAL PERFORMANCE
Please see pages 4,5,6 and 7
ICL Pathway
Key Numbers - September 2001
‘Month of September 2001 I YTD (vs Budget) 1
£000s Actual Forecast Variance I Actual Budget —_Variance
Revenue & Profit: Revenue 10,105 10,132 (27) 65,821 60,499 5,322
Profit Before Tax 1,407 1,402 6 8,940 7,975 965
Costs: Cash Costs 5,900 7,698 1,798 44,469 50,635 6,165)
Net Interest Cost 174 179 5 899 1,139 239
Cash & Investment Net Borrowings 18,738 18,823 85] 18,738 28,211 9,472I
Capital Expenditure 3 va 68 486 3,685 3,199
Project WIP 11,502 13,386 1,884 11,502 22,427 10,925]
Gross Working Capital 9,311 7,552 (1,758) 9311 3,857 (5,454)
Month End Headcount:
Permanent 294 296 2 294 321 27
Non-Permanent 65 68 3 65 65 t)
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Date: 10/10/2001
ICL Pathway
Key Numbers ~ September 2001
Analysis of Cash Costs
[Actual Forecast Variance
Headcount related:
Own Staff I 1,409 1,632 223
Freelancers! I 568 675 107
Temps
Main (CS) Subcontract 3,218 3,823 604
Costs
Plan Risks 0 382 382
Other Costs:
Other Subcontracts 106 523 417
Accommodation 194 208 15
Communications 261 50 (211)
Maintenance 8 178 170
IT 107 114 7
Marketing 0 17 17
Legal & Professional (37) 37 74
All other 67 60 ”)
5,900 7,698 1,798 .
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ICL Pathway Commercial & Financial Report Ref. PA/REP/070
Version: 2.0
Date: 10/10/2001
ICL Pathway
Key Numbers - September 2001
Cash Cost Sub-Analyses Actual Forecast Variance
Staff Costs
Pay 902 1,001 98
Bonus Accruals 100 110 10)
Pension/NHUMedical 255 304 49
Company Cars/Allowances 97 10 13
Travel and Entertainment 40 38 Q)
Training (0) 34 34
Recruitment & Relocation 14 35 2i
1,409 1,632 223
Direct Subcontracts
Data Centre 738 775 37
Help Desk 282 641 359
Field Maintenance 927 793 (134)
SMC 397 282 (115)I
OBC Costs 17 7 60
Energis Network Costs 763 1,010 247I
SLAs a) 110 117
CP Contingency 50 50
New Business Direct costs 102 8S (17)I
Other Costs oO
3,219 3,823 604]
Other Support Subcontracts
Implementation Contracts 22 175 153
Implementation Resources (148) 148
New Business 38 40 2]
Other Support 144 217 73
Other Work Packages 50 1 41
106 523 417
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ICL. Pathway Commercial & Financial Report Ref: PA/REP/070
Version: 2.0
Date: 10/10/2001
ICL Pathway
Key Numbers - September 2001
Actual Forecast Variance
Cash Flow and Borrowings
Opening Net-Borrowings I (23,947) (23,947)
Closing Net Borrowings I (18,738) __ (18,823) 85)
Movement 5,209 5,124 85
Cash Costs (5,900) (7,698) 1,798]
Net Interest Costs (174) (179) 5
Revenue Recognised 10,105 10,132 (27)
Working Capital 1,181. 2,939 (1,758)
Movement
Capital Expenditure ) (71) 68
Movement, as:above 5,209 5,124 85I
Actual Forecast Variance
Working Capital _
Invoiced Debtors 14,208 = 12,527 (1,681)
Accrued Debtors 11,664 10,033 (1,631)
Invoicing in advance (533) (500) 33
Trade Creditors (4,364) (3,380) 984]
Advance Payments 1,348 1,250 (98)
Intercompany Balances 3,232) (3,575) (43)
ICL B2B Accruals (2,072) (2,300) (228)
Accruals (5,755) (5,062) 694]
VAT (1,952)__(.441) 512]
9,311 7,552 (1,758)}
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ICL Pathway Business Development & Consultancy Ref PA/REP/O70
5 Version: 2.0
rt a:
Services Repo Date: 10/10/2001
Business Development & Consultancy Services Report
1 MONTHLY SUMMARY
New Business signed to date now exceeds £9million, The major focus now is closing
the principal Network Banking contract by end December.
The two other main focus activities revolve around Contract Extension and the
Consignia outsource business. These remain two opportunities that need significant
effort in:this fiscal year but wil! not close until next.
Post Office Ltd. came into operational effect on 1 October. Last week saw a major
announcement from Consignia regarding the need to significantly reduce:costs. There
was a widely-reported (3 Oct 2001) plan to reduce operational costs by £1.2bn in
order to increase profit to £300m by 2004. A key plank of the cost-reduction strategy
will be to focus on the core business of letters and parcels distribution, and.not on
supporting services including technology. Reduction in staff numbers will involve
both outsourcing and compulsory redundancies (trimming of costs by 15%, could
involve 1 in 10 staff reductions out of 200,000 employees). This will have .an
immediate impact on any R&D'type work and some-work-with the-F) Animo product
has already been cancelled.
We continue to review the actions from the visit to Tokyo but the comments in the
previous paragraph will have a direct impact.
Richard Christou is.scheduled to meet John Roberts for lunch on 11" October.
2 PROGRESS
2.1I BUSINESS DEVELOPMENT
Network Banking:
Discussions continue to resolve any outstanding requirements issues. We are now
closer to finalising costs covering development, integration ‘and testing; network
upgrades and pinpads. Fujitsu are now involved in the approval process.
SRS
Issued draft version 0.8 of the Network: Banking SRS on 11/09/01,-which was aligned
with version 1.2 of the Requirements catalogue. Comments were received back from
POCL on 20/09/01 (along with some internal comments). These were formally
responded to on 27/09/01, and a draft version 0.9 of the SRS prepared.
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" Version: 2.0
Services Report Date: 10/10/2001
A Change Request was received on 27/09/01 requesting that PIN pads be supported
from Release 1. This is currently being impacted.
The version of the SRS with PIN Pads is unlikely much before the end of October.
Contract Schedules
The last two weeks in September have been taken up completely with the draft
Network Banking Contract Schedules, which are now being issued to POCL for
review. This activity has in tum fed back some changes to the SRS to ensure
consistency.
ERA:
e Appears to be coming out of the ashes. Concentration is likely to be on Mails,
Stock sales and Stock Management. We need to engage with Escher on their
Mails product.
Your Guide:
e. Pilot continues to go well. We are talking to Consignia about joint lobbying of
government. They are proving very slow to take up this offer as it may cut across
their being seen to be fair to all potential suppliers. This is on the agenda for
Richard’s meeting with John Roberts.
Contract Renewal:
e This again is on the agenda for the RC/JR meeting. I remain of the view that this
will not happen within this fiscal year as operational issues take over in Post Office
Ltd., especially around bedding down the new organisation. The bid budget for a
renewal team has been prepared. Initial planning has taken place.
EFTPOS:
SRS:
e 0.2 issued internally
e V0.3 (incorporating internal comments) issued to POCL on 10" September.
e Meeting with Retail Logic to discuss messaging issues
¢ Following a meeting with POCL to review V0.3, our responses to their comments
are being compiled, and will be incorporated in V0.4
EURO:
e The Euro study project proceeds roughly as expected, with two workshops held in
the-month.
Current Services:
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ICL Pathway Business Development & Consultancy Ref: PA/REP/070
1 Version: 2.0
Services Report Date:_ 10/10/2001
APS / Talexus
The Talexus programme has now been formally suspended by POL, albeit that the
official instruction (as per CCN 798) has not been received. This has arisen due to the
continuing inability of POL to agree a contract with Schlumberger. Earlier in the
month the rectification plan ended which. enabled Pathway to make good progress at
both Requirements and Design / Development. CCN 883 was issued for an additional
£250k to cover the extended time that Pathway would have to spend on the programme.
However as the requirements phase was about to conclude Schlumberger again changed
the basis of some of our work and introduced further changes or ‘clarifications’. The
POL project board took the view that this was unacceptable, and since they had still not
agreed a contract with Schlumberger, issued an instruction to Pathway on 27/09 to
‘freeze’ the project. Pathway are now working to close down all current activities
against the current version of the requirements specification. This will take approx 4-6
weeks and require approx-270 mandays.
We are endeavouring to find out whether POL ever intend to re-instate Talexus (spend
will exceed £1M). There may a slim chance of Pathway providing a release slot in
early summer 2002, but development resource'is about to be reallocated to NBS as soon
as the 'closedown' activities are complete. This may therefore push us into 2003 which
of course will impact the already fragile POL business case.
Future Services:
E-top ups / Smart Travel
Meeting held with Post Office to review direction. No real direction shown on their
part. I have now escalated this as an issue to Dave Truslove, Director (acting) of
Commercial. Clients.
Future AP strategy
Met with POL Client Management team (Karen Molloy etc.) to discuss future
opportunities. We demonstrated the ‘AP file server' concept but no immediate demand.
No immediate follow up since POL do not have a future AP strategy. Again, the issue
has been raised to David Truslove.
Other:
e PWC bid meeting. Attended a PWC DVO bid meeting to assist in positioning
Horizon. Mostly unproductive since PWC were wholly concerned with their own
bid strategy. Subsequent brief discussion has identified some opportunities.
However, it also became clear that Post Office do not position themselves well in
this sort of potential bid.
e ID cards / Local Govt. initiatives. Attended internal events to discuss these topics
2.2, CONSIGNIA:
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ices Version: 2.0
Services Report Date: 10/10/2001
¢ P&PS Division IS/IT Consultancy /e-infrastructure.
P & PS Security practice have an assignment at £1,100 per day for 5 months.
Activities under way to exploit this contract such as consultancy on. Directories,
Penetration Testing and PKI etc-for David Lacey.
« ISD
Nothing to report other than some new bidding (see below) and outsourcing
discussions.(Neil Bagshaw). Re WDM - we now have an October date for
meeting Vanessa Leeson, Group MD, P & E & ICL/Escher.
e MCD
Nothing to report.
e e-Innovation
ViaCode. Technical pilot to start following agreements on Ts&Cs:
Knowledge Management: All set up to proceed but key KM expert now in
Linkwise
2.2.1 BIDS
QJEC Receipted Mail Managed Service.
Active procurement and Tim Carroll providing useful background information for
ISD. Awaiting to see if funding/Business Case fully approved before proceeding.
If this turns into a sizeable piece of work, then we'll need to “prime” it.
QOJEC Firewall Managed Service.
Active collaboration between ISD (for the service) and P&PS (for security
consultancy under the framework)
Note. It is noticeable that there has been an increase in cancelled procurements by
Consignia.
Horizon Communications:
Nothing new to report.
3. ISSUES
None.
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ICL. Pathway Programme Report Ref: PA/REP/O70
Version: 2.0
Date:__ 10/10/2001
Programme Report
MONTHLY SUMMARY
e The Your Guide Pilot has completed its first month of operational running, with
five months to go. Usage remains high and availability has been good.
e Talexus phase 1 maybe suspended whilst POL resolve outstanding issues with
Schlumberger. Consequently the recently revised Live date of March 2002 will
not be met.
e A first complete draft of the NWB Application Interface Specification was
received from IBM, reviewed and comments provided. ICL Pathway are
progressing the Technical Interface specification, a first draft on which is intended
to be available early October.
e The PO have introduced three CRs as an addition to the NWB Requirements
baseline. One of these is Pin Pads and ICLP is busy assessing the impact of how
these can be implemented by April 2003.
e A joint architecture document describing the re-architected Framework was
produced by ICLP and Escher and provided to POL. There is good agreement on
the structure and components required and we need to achieve agreement with
Escher-on progressing theses changes.
© Good progress continues on Infrastructure NWB Releases, BI] and BJ2, and these
holding the original schedule.
e ICLP has declared that the delay to the start of HLD of NWB, caused by the delay
to baselining requirements, cannot be absorbed. The indicative plan showed [CLP
testing completing in July 2002 and this is now October 2002. POL will then
embark on their own testing and this will place a Live Pilot into Jan 2003.
e Network upgrade options to support on-line authorisation have been presented to
POL who now needs to balance:service availability against cost.
e EFTPoS SRS has been held awaiting resolution of issues by POL. Progress is
again now being made, although POL has not currently brought NatWest
Streamline under control to achieve their goals.
PROGRESS
e The last 55 Girobank clients were migrated during September. The original AP
Client Migration programme, as agreed with POL on 24th October 2000, is now
complete. There are two remaining new clients: NIE, which requires a CR to be
implemented, and BT, for which POL have no agreed dates.
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Version: 2.0
Date: 10/10/2001
e POL have been reviewing the size of the Cash Account change for 2002/2003 and
are considering reducing the amount of change to allow additional CRs to be
developed in the same window.
¢ Following the POL Talexus Project Board, ICL Pathway has been informed that
POL has no confidence in the design specification provided by Schlumberger and
therefore considers the March:2002 pilot date for Talexus unachievable. POL are
currently evaluating their options and a suspension of the Talexus programme is
likely, whilst POL resolve their-issues.
e Your Guide usage continues at a high level. The indications are that the number of
user sessions is remaining constant, but that session duration’s are reducing. The
most popular topic is job searching, followed by local information
e We have initiated a short internal study into the overall impact of a Your Guide
National Rollout. However, the way forward on National Rollout remains
uncertain, with no business case or customer funding currently in place.
e We have taken a small contract to upgrade all kiosks in the field with a higher
capacity printer hopper. We have submitted proposals to relocate individual Pilot
outlets, should any move during the life of the pilot, and to enable rapid call-off of
minor purchases or services. We-are developing proposals to install kiosks in non-
outlet sites, such as the DTI Futures Laboratory, and to address a number of other
minor change requests. The first of three maintenance releases has been
implemented.
e A date of Mid October has been set for agreeing the NBE AIS, with a first
complete draft received and commented on. IBM is however behind on achieving
this and are trying to put a dependency back on ICLP for the availability of the
NBE TIS. HLD work will continue based on assumptions and a first draft of the
TIS will be provided to IBM in early October.
e We believe that IBM are de-scoping their initial deliveries to POL and offering an
initial simple switch between ICLP and LINK, with Web Sphere delayed for a
later implementation.
e The NWB baseline has been modified to include three CRs, one of which is Pin
Pads. The SRS is being updated to reflect these changes and will be re-issued to
POL in Mid October, with a further version of the NWB Message Flows.
e SDS documents for Reconciliation and Reference data have been completed and
made available under NDA for review by POL. SDS documents for Security,
Infrastructure and Applications are nearing completion and are undergone change
for the new CRs.
¢ A joint architecture document describing the proposed re-architected Framework
has been produced by ICLP and Escher and made available to POL. There is good
agreement on the structure and components required within the Framework and
Escher are now required to document the Interfaces. POL has authorised moving
forward with the new Framework.
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Date: 10/10/2001
e The first Release of NWB, BI1, continues through its testing phase in preparation
for Live distribution in.December 2001.
e The second Release of NWB, BI2, is now baselined and development and testing
work progresses towards an April 2002 commencement of implementation.
e During September, ICLP explained to POL that a BI3 Implementation in August
2002 could not be achieved and that the delay to baselining their requirements was
having a direct 3 month impact to the completion of ICLP testing activities. This
has been improved by a few weeks during September, but ICLP has held fast,
refusing to place any further risk into the plan by cutting our own test activities
further. POL have declared that they wish to spend 8 weeks testing, after ICLP
completes their testing, and this will place any Live Pilot into January 2003. This
just allows migration to complete by the important April 2003 date.
e The re-introduction of Pin Pads mainly affects Security in BI3, but also requires
distribution of a test device driver in BI2 to allow early Roll Out of Pin Pads to
commence. ICLP is progressing discussions with suppliers and POL in order to
minimise the impact of this late inclusion.
e Various Network upgrade options to support the switch from a batch orientated
system to that of on-line authorisation have been created and presented to POL.
These range from a fully nailed up Platinum Frame Relay solution to Silver
FRIACO fully nailed up and Bronze FRIACO dial on demand. ICLP will
recommend Platinum, push Silver, but expect POL to choose a Silver/Bronze
Hybrid that financially meets their Business Case, and only reduces the service at
the minor usage Outlets.
e Contract Schedule workshops are continuing between POL and ICLP, but the
level of effort required is impacting .vhat can be achieved.
° The EFTPoS SRS has due to be complete by the end of September, but there
have been a number of issues for POL to resolve. A productive meeting was held
with POL and resolved most of the review comments and outstanding issues, but
there are four key issues outstanding that POL expect to resolve shortly, namely
Transaction Volumes, Allocation of Merchant Id, Authorisation Reversal Rules
and.confirmation of their requirements baseline. POL now need to improve their
management of NatWest Streamline, the Merchant Acquirer, in order to allowed
continued progress.
e The POL ERA Project has appointed a new Project Manager who is tasked with
defining the new first phase. ICLP is working under a CR to provide assistance in
preparing options and a Product Initiation Document is due by the end of October.
If a way forward is approved, it is planned to produce SRS and SDS documents
by the end of March 2002.
e ERA Phase I is currently viewed as MAILS, Stock Management and Stock Sale,
with DVLA re-engineered into the APS type model and DNS re-engineered to use
the NWB Framework.
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3. ISSUES
¢ ICLP has now firmly declared what can be achieved for BI3, but this does put
pressure on the overall plan due to the delay in agreeing a requirement baseline.
ICLP will continue to work with the POL Programme to help them create an end
to end plan that supports an Apri! 2003 fully Live NWB estate.
* IBM continue to impact the progress ICLP can make regarding the link to the
NBE. It is imperative that we are not wrong footed and keep the visibility of IBM
delays recognised by POL.
e Discussions between ICLP and Escher continue regarding the timescales and
commercials for the re-architected Framework. Crucial milestones have been
stated to Escher, but these have not yet been agreed.
e We are. now increasing the level of visibility regarding EFTPoS to ensure
problems are resolved and progress maintained to allow the parallel development
with NWB.
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Version: 2.0
Date: 10/10/2001
Development. Report
1 MONTHLY SUMMARY
The main part of $10 testing has completed.
S12 (Talexus) work is continuing; pending confirmation of the project being
temporarily suspended.
Network Banking development continues for Phases 1 and 2, in conjunction with
planning and estimating for Phase 3.
2 PROGRESS
Work on changes to OCMS has been completed, and the Live Trial has commenced.
Sufficient $10 counter testing has been completed in time for the rollout to
commence, although there are some agreed (with CS) outstanding issues.
$10 counter testing is continuing in order to prove some outstanding issues with
OBCS and Data Warehouse. An October release date for has been scheduled for
these.
Changes to support the introduction of NI electricity as migrated AP client were
started and completed during the month.
The Laptop/PSTN changes to support Day D Data collection are progressing to
schedule for a November implementation date.
There’ has been no significant activity on YG.
There has ‘been.no APCM testing performed (none scheduled).
Discussions have taken place on the content of the Cash Account release (S11).and its
potential replacement with other functionality. Development work has started on the
Mails Labels printing which is an agreed constituent of this-release.
Network Banking Phase I (Tivoli upgrade) is in the final stages of testing, and is still
progressing to plan for a.November implementation.
Network Banking Phase 2 (infra-structure) build and early testing work is continuing
to plan.
Network Banking Phase 3 (applications) - much support is still being provided to
production of the SDS’s. In order to hold the Programme intended schedule, wherever
possible early design work is being done:in parallel with these activities. Planning and
estimating of development activities continues, working towards defining a ‘contract
bid’ situation. Prototyping of counter facilities is continuing.
COMPANY IN CONFIDENCE Page'17 of 27
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ersion: 2.0
Date: 10/10/2001
Talexus — Phase I development and test preparation has continued, working to the
revised requirements resulting from completion of the PON rectification plan.
Pending receipt of confirmation from PON that the project is to be suspended, work is
still continuing in October, aimed-at-reaching a ‘clean’ stopping position.
3. ISSUES
The planned freelancer replacements are still not being achieved as there are no
suitable candidates presenting-from within ICL, and this is adversely affecting the
forecast.
The NWB plan is not fully resourced.
COMPANY.IN CONFIDENCE Page 18 of 27
FUJ00116033
FUJ00116033
ICL Pathway Customer Service Report Ref. PA/REP/070
Version: 2.0
Date: 10/10/2001
Customer Service Report
1 MONTHLY SUMMARY
There was a major network problem overnight on the 28/29" September caused by
Energis imposing severe call concurrency restrictions and approximately 8000 outlets
were not harvested.
Significant progress is being made on call reduction due to a combination of counter
news articles, introduction of SPOC and general product maturity
S10 counter migration has now started. Current progress is not encouraging but is
being reviewed. The S10R bucket for counter fixes is very full
Work on costing and non-functional reqts for network banking is now nearing
completion.
1.1. VITAL STATISTICS
Release Notes raised
Release Notes Applied to live
Release Notes withdrawn
Live Base as at 30” September 2001: 17,558 Post Offices, 37,992 Counters
Cumulative Data is from 1‘ December 1999 to 30” September 2001 inclusive
Monthly Data is from 1°' September 2001 to 30” September 2001 inclusive
OBCS
Total number of transactions to date 806,222,226
Total number of transactions in September 49,811,011
Total value of payments to date £63,483,853,971
Total value of payments in September £4,047,908,243.31
EPOSS
Total number of receipts to date 963,458,435
Tota! number of payments to date 169,957,988
Total number of zero value transactions to date 81,950,918
Total number of receipts in September 56,266,907
Total number of payments in September 7,994,522
Total number of zero-value transactions in September 5,475,588
COMPANY IN CONFIDENCE = ~~ Page 19 of 27
FUJ00116033
FUJ00116033
ICL Pathway Customer Service Report Vert PAREPIOTO
Date: 10/10/2001
Total value of receipts to date £55,574,444;354
Total value of payments to date £16,227,063,788
Total value of receipts in September £3,535,199,681
Total value of payments in September £791,880,401
APS
Tota! number of transactions to date 353,199,077
Total number of transactions in September 26,406,684
Total value of receipts to date £9,228,566,591
Total value of receipts in September £687,835,355
NOTES:
e EPOSS zero-value transactions include issue of books, change of address, etc.
e Weekly data is now available on the Customer Service web site.
2 PROGRESS
2.1. OPERATIONS & SUPPORT
There was a major network problem overnight on the 28-29" September caused by
Energis imposing severe call concurrency restrictions and approximately 8,000 outlets
were not harvested.For the rest of the month there was a good record regarding
delivery of files to TIP, OBCS, HAPS and AP Clients. The severe call concurrency
restrictions that Energis imposed on 28” September were not advised to Pathway CS
in advance and Energis took an unacceptable length of time to resolve the problems
that these restrictions caused to Pathway. This is being taken up with senior Energis
management. There is however work that Pathway needs to do to understand what is
causing a peak workload for the Energis network to deal with.
The ISDN availability returned to a more suitable performance percentage(99.93%),
following the first downturn for many ‘months for the month. of July. The upturn in
VSAT performance has been continued, although the unusual figure of 100% may be
difficult to maintain. This performance is no doubt a reflection of the continued effort
put in by Energis to closely monitor HOT performance and address all issues.
Similarly the satellite workshop, held with all service delivery units, has already borne
benefit.
Tania Reynolds is working with the Pathway CS BC Team to specifically work on the
development of revised Disaster Recovery plans across Pathway. It is proposed that a
model, similar to that used for in the production of BRAO1 CS Disaster Recovery
plans, will be adopted. Initial planning meeting have been arranged within Pathway.
Mik Peach has given presentations to SMC/HSH/UKSS staff to reiterate the
importance of the processes which prevent marooned transactions.
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Version: 2.0
Date: 10/10/2001
Day to day Reference Data service has in general run well. Message broadcasts are
continuing to run at an average:of 1 per day. AP CTO automation work is continuing
(CP3032/CCN807). The first tool in ‘the set (Token Data Capture Tool) should. be
ready for PON testing during the coming week. The Scavenger Agents is now being
used on a sample ’of offices on the Live. system — offices which have Reference Data
but are not currently in use. Results so far are very encouraging. Use of the
Scavenger is expected to increase steadily. So. far 3 runs have been performed on a
total of 102 FADS (all old offices not currently ‘in use). This has removed
approximately 20,000 objects and 10,000 pointers on each outlet. Performance is
good, approximately 70-80 FADS per hour, but currently this is only running on
Bootle.
APS Client Migrations/Connections: The last tranche of Girobank Clients (55) have
now been migrated from HAPS (total 442) and 9 new Giro Clients connected (grand
total 451 Giro Clients). There are.now 16 AP client interfaces of which 5 are new
connections (not ex-HAPS). The outstanding HAPS migrations are NIE and BT. APS
Client service: file transfers generally good - occasional problems with individual
clients: Girobank, Quantum. Tri-partite Meeting (Pathway/PON/Agent) being
scheduled with each of Girobank, Quantum & SPM, to improve management of the
service interface.
The Quantum Gas Termination problem has been this closed by agreement with PON.
However, there is an outstanding issue re the action to be taken on impounded
keyboards - we are expecting Cliff Wakeman to progress this.
On LFS, PON SAPADS is still in pilot mode — and they have yet to provide us with a
clear understanding of their plans & progress. This will be pursued at the October
LFSORF, and if no progress will be escalated to HSRF. Regarding LFS SLAs, after
internal discussions over proposed changes, John Pope is now in dialogue with PON.
Icon Service: There is significant work still to be done to agree and document an
ongoing service with PON. A CP will be raised to isitroduce the service.
Icon production: The Batch 2001-01 (released to the estate in S06) CCN to charge for
7 Icons, has been agreed by PON. Batch 2001-03 (including icons for Quantrill), has
been produced by Escher, and bitmaps document sent to PON for approval. The target
delivery is S10R. A CP for the batch is to be urgently raised, to allow the release to be
scheduled.
2.2. INFRASTRUCTURE SERVICES
An initial review of the historical (Software) System Service remedial payments for
September 2000 to March 2001 has been conducted. These will be issued to PON
once other contractual issues have been addressed. As far as the “steady state”
temedial figures are concerned, we are delivering them in the agreed time scale.
However PON has only addressed and agreed up through to May 2001.
Remedial Penalty for September 2001 appears to be less then £500.00. This final
figure has yet to be confirmed.
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Version: 2.0
Date: 10/10/2001
DFD SLA has surpassed the rectification SLA for the month of September. This was
accomplished through efficiencies in the process by HSH/SMC in addressing Non
polling.
A meeting took place with the relevant parties to discuss the implementation of the
Day D Laptop solution. It became clear that SMC have already implemented a
number of activities that have assisted in improving the current Day D results.
Through further work with Energis and using ‘spare’ capacity in the ISD Pathway
organisation, further improvements to the daily results will be seen. These should be
implemented within the next two weeks.
Given this, it begs the question of how much UKSS involvement we will need to meet
the new SLA - not a lot appears to be the answer. Certainly the original headcount
prediction of an additional 15 engineers and 6 SMC staff has reduced to 5 engineers
and 2 SMC staff. The November pilot will help us firm up on the actual requirement.
Wrong advice complaints remain fairly high; but again many of these after
investigation are shown to be unjustified. This is clearly a misunderstanding between
what the PM feels they have asked and the advice provided by HSH. System issues
include complaints about non- polling issues and system problems that appear to have
been unresolved for some time. The attitude complaints remain constant, but again
the bulk have been found to be unjustified, again seems to arise when PM's problem is
complicated and PM cannot accept the explanation or fails to believe they are at fault.
There is currently I complaint outstanding awaiting response from HSH.
The new SVR Reply cards are now with the engineers ready to start using them on
Monday. We have had one or two drift in by mistake already, at least it has shown the
extra questions don't seem to have put the PM's off responding.
Further success has been achieved in directly affecting the number of calls being
raised by the HSH from Postmasters. At the end of July an update to postmasters on
what they should do in particular circumstances was documented in Counter News.
The results show;
Printers: -5%
A&G: reduced by 11.6%
Training: reduced by 34.8%
Reversals: 23.5%
AP / AP Recovery: 15.2%
Remittances:. 13.1%
System Admin.: 13.1%
This equates to: from July to August 4,279 calls @ £15/call = £64k saved
Take this with the saving from the. MBS message earlier in the year. The total saving
for the life of the project is £884k (MBS) + £2816K (Counter News) = £3.7M.
The rollout tail is now down to 12 outlets for installation plus a further 3 outlets to be
migrated.
Of these remaining outlets, Pathway have only 4 scheduled with dates, the remainder
having issues to be resolved by PON (8) or awaiting planning permission (3). One
months notice has been given to KnowledgePool for the cessation of training courses
at.the end of October. In addition to the above-there are approximately 62 outlets that
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Version: 2.0
Date: 10/10/2001
have previously been removed from the rollout programme, that are now to be
installed under normal OBC (no training required). PON BSM have expressed a
desire to install these this year, so that HAPS can be closed down.
By the end of September a total of 509 Site visits will have been competed by the
FSM team. Frensham Way Post Office closed as expected on the 7” September. The
removal of the equipment was achieved without problem. All remaining PinICL calls
relating to this site have now been closed. A plan has been compiled for the
replacement of the resistive monitors at Guiseley PO with standard CTX flat screens,
and will now proceed to be actioned.
The FSM Team Leader has now taken on additional responsibility for the Your Guide
service management. Site specific Your Guide problems are now the remit of the
FSM Team to resolve, and some additional problem management is also likely to be
delegated to the FSM team. One long-running site specific problem has already been
resolved.
Concer has been raised with PON regarding feelings that Postmasters had expressed,
suggesting that they would be “black balled” for raising too many helpdesk calls.
This was compounded by the discovery that certain call rates are monitored by
National Audit, and used to identify offices for investigation. PON BSM are moving
to reassure Postmasters and to encourage them to log calls in the correct manner,
through a programme of information.
2.3. SECURITY MANAGEMENT
Implementation of anti-virus software on the live estate and supporting processes has
been completed. Additional work is now underway to expand the scope of delivery to
incorporate new Horizon platforms and to re-visit the virus threat in light of emerging,
high-impact virus strains.
A high-risk worm identified as “Funlove” had a significant impact across parts of the
ICL and Pathway corporate network. Extensive effort was expended in liaising with
Corporate Infrastructure, Pathway Administrators and GISI to upgrade quickly to the
latest virus definition files and ensure that all potentially vulnerable domains were
identified, scanned and patched. The virus’ ability to infect via network shares
necessitated the introduction of some additional protection for the live Horizon
system as a precautionary measure. Work was hampered by a simultaneous outbreak
on the corporate network of the “Nimda” virus, another high-risk virus that uses
different methods of propagation. The virus was controlled following upgrades to
anti-virus software. A plan is being developed to rationalise and improve procedures
for updating anti-virus software across the Pathway Corporate and Development
estates.
Discussions on security requirements for Network Banking have continued with
PONU and changes consolidated in final revisions to the SRS and SDS. Input was
provided to the draft Codified Agreement schedules primarily in respect of
information security, data retrieval, prosecution support and data protection areas.
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ersion: ° 2.
Date: 10/10/2001
2.4
2.5
Input continues to be provided as required to consolidate emerging security
requirements for the YG kiosks and contents hosting service. We are currently
awaiting recommendations from the CGEY/Consignia penetration testing activities.
Three audit data extractions were completed in response to PON Security/Audit and
Ad-Hoc requests. One request spanned a wide date range and took a considerable time
to complete. Associated witness statements were provided where appropriate on a
“without prejudice" until contractual agreement is reached.
The Key Manager successfully processed all key requests received this month.
Automated key expiry has run throughout the month apart from a few days when
POCL requested a temporary suspension for assessment. The total number of outlets
in the KMS key expiry exercise has reached 3,203. Results continue to indicate that at
least 10% of outlets will either ignore prompts or fail to download new security data
successfully. A procedure has been introduced for managing non-compliance with re-
fresh requirements and related documentation is being agreed with POCL. This
procedure has successfully reduced the backlog of outlets operating with unchanged
keys. As part of the process, the Key Manager continues to provide reports of Outlets
that are operating on unchanged keys. However, this solution is viable only in the
short-term and it is essential that an automated Tivoli process is developed to alert
SMC to outlets that are not responding to prompts.
The co-incidental DLT failure that resulted in an incomplete TMS audit trail
continues to be managed under normal problem management procedures. Mitigation
action for a “read after write” process and automated media management has been
introduced and work continues to attempt recovery of data from other archived
sources.
SERVICE INTRODUCTION
Work is continuing on Network Banking implementation plans, costings and the non-
functional requirements. Plans for BI1 are well under way and ISD are holding a
meeting on 3" October to finalise all the activities required.
GGP is now running as part of the normal business. Reg Barton is taking over as the
service manager for GGP.
The S1OR bucket for counter fixes is very full. One CP has been deferred and the remaining
fixes are under review.
$10 Counter migration is ongoing. Initial commit rates seem low but this is under review.
STAFFING
Paul Curley is leaving in October. A RAR will be raised for replacement.
We are having difficulty finding a replacement for Kevin McKeown and must now
start looking at external recruitment.
Tanya Reynolds has joined Operations.
COMPANY IN CONFIDENCE Page:24 of 27
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Version: 2.0
Date: 10/10/2001
Kath Greenwood has left Support.
Jan Ambrose has joined Infrastructure Services
2.6 FINANCE
CS Budget for OPEX 2001/02 is £57.9
Business Model 050601 is £56.5m
Forecast (CSAug01) is £51.8m
The major forecast improvement from July actuals and forecast of £300k are from the
£232k saving in the month taken through to the full year and a few other adjustments.
3. ISSUES & RISKS
The delay in implementing OCMS is creating discrepancies in the KMA database and
may lead to failure in key deliveries. KMA relies on appropriate feeds to ensure that
outlet and key data is kept up to date. Until this is resolved Pathway is expending
additional effort in developing and maintaining manual processes for tracking outlet
changes.
PON requirements for investigation support, ad-hoc requests and the provision of
witness statements continue to place a strain on the existing Audit: solution
architecture. Requests for AP Client transaction data is exacerbating problems. A
study is underway to review the issue with a view to making recommendations for
meeting the Customer’s long term information retrieval requirements.
’
Work on the Codified Agreement for Network Banking has reinforced the need for
POCL to formalise with Pathway the Data Controller / Processor responsibilities
necessary to ensure compliance with the new Data Protection Act which comes fully
into force in October.
Security input to Network Banking and EFTPOS requirements continues to place a
strain on existing resource, which is fully engaged in supporting the existing Horizon
Solution.
The time available to fix the live estate is becoming more worrying. A number of the
items that have to be applied to live are time critical and if any should slip the rest of
the programme.could be affected.
~~ COMPANY IN CONFIDENCE Page 25 of 27
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ICL Pathway Organisation & Personnel Report Ref. PA/REP/O70
Version: 2.0
Date: 10/10/200t
Organisation & Personnel Report
1 MONTHLY SUMMARY
° Appointments in September:
External Recruits
Transfers:In
P&PS
LINKwise
Freelance
Fixed Term Contracts
Adecco Temps
TOTAL:
wWwocooocon—
° Known Joiners
External Recruits
Transfers In
P&PS
LINKwise
Freelance
Fixed Term Contracts
Adecco Temps
TOTAL:
eoooecocoo
° September Leavers:
Permanent Staff
Freelance
Transfers Out
Linkwise assignee
P&PS
Fixed term-Contracts
Adecco Temps
TOTAL:
WOSSOCOWN
e Known Leavers
Permanent Staff
Freélance
Transférs Out
Linkwise assignee
P&PS
Fixed.term Contracts
Adecco Temps
TOTAL:
NOSOOSCOON
Resource Management
The redeployment of people under the Company’s PLUTO 2 programme continued during
September, with the focus on EMEA resources. This has not yet had any impact on filling
vacancies:or freelancér replacements.
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ersion:
Date: 10/10/2001
A new electronic RAR system has been introduced which should speed up the processing of
RARS.
Freelancer Reduction and replacement
Update 30-Sep-01
Summary. No of Heads
Freelancers in Pathway 01/09/01 63
Freelancers in Pathway 30/09/01 61
Freelancers in Pathway 01/10/01 60
Current FC of Freelancers in Pathway 46
on 31/03/02,
As well as the roles that are currently filled by contract.staff that are budgeted to be replaced
by permanent staff, there. is now an increas¢ in permanent roles due mainly to Network
Banking and the Contract Renewal ‘team.
In. the meantime, there are currently 60+ people based in MAN27 actively seeking
redeployment, in-most cases there is a good-skills match against Pathway jobs: However, they
are not willing/able to relocate to the south to fill these roles and Pathway Managément are
currently unable to move the work to them. A few short assignments have been identified
where MAN27 resources are going to be used, and APDU are in discussions about the
feasibility.of moving the Data Warehousing service to. Manchester:
COMPANY.IN CONFIDENCE Page 27.of 27