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ICL Pathway
Bringing Monthly
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October 2001 LH
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ICL Pathway Programme Monthly Report Ref. PA/REP/O7I
Version: 3.0
Date: 08/11/2001
Document Title: ICL Pathway Monthly Report — October 2001
Associated Documents:
Reference Vers Date Title Source
(] PA/TEM/011 3.0 25/10/01 Pathway Programme —
Monthly Report Template
Approval Authorities:
Name Position Signature Date
Stephen Muchow Business Director
Page 1 of 28
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ICL Pathway Monthly Progress Report
Contents:
@ Busi irector’s S
se usiness Director’s Summary
cL Commercial & Financial Report
&P Business Development Report
AS C .
s onsultancy Services Report
GP Programme Report
[0 Development Report
2, .
a= Customer Service Report
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ae Organisation & Personnel Report
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ICL Pathway Business Director’s Summary Ref: PA/REP/O71
Veision: 3.0
Date: _ 08/11/2001
Business Director’s Summary
1 PROGRESS
1.1. BUSINESS PLAN
Financial performance last month is largely estimated due to the implementation of
Oracle Financials but this is expected to be resolved with any variations being
addressed in November’s report. October revenue appears to be better than forecast
due to Network Banking work and cash costs better as a result of lower than forecast
headcount. Borrowings are. known to be £210k lower than forecast and we have been
able to repay £8m of Asset Co. loans.
Overall, Pathway continues on track to achieving its Business Plan and if the Network
Banking proposal is successful then we have an opportunity to make significant
improvements in revenue and profits forecast this financial year.
New Business signed to date now exceeds £10m. Our major focus continues to be on
closing the Network Banking contract by end December.
1.2) PROGRAMMES
1.2.1. CORE SYSTEMS RELEASE
October's performance was marred by a number of Network incidents that had
significant service impact. Energis’ performance. has been less than satisfactory
recently and we are taking issue with them over their controls and contingency
procedures
Other than the network, service performance was good and particularly pleasing. was
performance against Data File Delivery SLAs which achieved 99.7% against Day D
requirements.
1.2.2. NETWORK BANKING
The first release of Network Banking, BI1, has completed its early testing of the
Tivoli upgrade and commences initial roll-out into the live estate in early November.
The second release, BI2, is progressing to schedule,
Following a detailed review, POL has accepted that the BI3 pian duration cannot be
reduced further. We now show the completion of Integration testing on 1} October
2002. Tescom have been employed by POL to review their testing strategy and they
have supported an 8 week End to End test cycle, post Pathway testing. This has
therefore confirmed that Live Pilot will take place in January 2003, just allowing
migration to complete by the impertant April 2003 date.
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ICL Pathway Business Director’s Summary v Ref: PA/REP/O71
ersion: 3.0
Date: 08/11/2001
Work has continued to reduce the price of the NWB Network options and POL have
been keen to pursue the cheapest option, a Hybrid mix of FRIACO permanently
connected and FRIACO dial on demand. However, Energis, and therefore Pathway,
are unwilling to agree initial SLAs and have proposed that the service must be
operational for a period of time before these can be set and agreed.
Contract Schedule workshops are continuing between POL and Pathway and it has
been agreed these will form the basis of Acceptance.
The proposal was submitted on time on 16 November.
1.2.3 YOUR GUIDE (GOVERNMENT GP)
The pilot continues to go very well. Discussions continue between Post Office Ltd.
and Government to progress national rollout. These discussions have-not been going
well and there is some loss of faith within Consignia. We have been working with the
key people to help their influencing plans. It appears that Government have been
taken by surprise at its success and the demand generated. Sponsor departments are
anxious that the pilot is allowed to continue rather than be decommissioned in March as
planned.
1.2.4 ERA
ERA is being resurrected with clear emphasis now on Mails, Stock Sales and Stock
Management. This will provide more focus on potential deliverables and benefits. We
are about to re-engage with some resource calls starting in the near future:
1.2.5 CONTRACT EXTENSION
It has been made very clear by Post Office Ltd. that Contract Extension should be on
the agenda as.soon as the. Network Banking contract is out of the way. Alan Barrie
will lead on' this for Post Office Ltd. Peter Corbett, the new Finance. Director for POL
has made.it very clear that the Horizon system costs more.than the business:can afford
and we must focus on delivering more for less as we look to the future:
1.2.6 OUTSOURCING
Following the declaration that Consignia Business Systems Group will be outsourced,
Alan Shepherd is leading a team, on behalf of Les Graney, looking at all options —
including what to do if the outsource fails. An OJEC is being prepared and could be in
the journal very soon, with an expected 15 months to any contract going live.
Consignia have declared a preference for a JV, retaining 51%, and raising capital for
re-injection into Consignia, effectively selling half of Business Systems. We expect
more guidance soon from Jim Reed IT.Procurement Diréctor.
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ICL Pathway Business Director’s Summary Ref: PA/REP/071
Version: 3.0
Date: _ 08/11/2001
The option to split Horizon back-office systems from the Consignia Business Systems
Group outsource is attractive to ICL and we are working out how to make it attractive
to POL. We have requested the involvement of ISD, as the experts in bidding for
outsourcing business, and they are allocating staff time to work with us. The initial
objective is simply to scope what would make an attractive (to both ICL and POL)
offer.
2 ISSUES
2.1 RESOURCING
POL’s demand for new work will outstrip our ability to supply. Currently we are
trying to resolve the issue of demand, availability of resources and limited software
release windows until 2003. POL have requested that we produce ERA Phase. I
SRS/SDS documents by the end the year. This is not achievable, given the notice:
period and resources available.
Our continuing inability to find staff to fill vacancies and also to replace contract staff
means that the planned de-risking of NWB development is not yet in place, and that
certain elements of the plan are still not fully resourced. RARs were submitted some
time ago. Unless new internal sources of staff are found very soon, I will seek to vary
current rules on recruitment of freelance contract staff and new employees.
2.2. ESCHER
Discussions between Pathway and Escher continue regarding the timescales and
commercial agreement for the re-architected Framework. Crucial milestones have
been declared to Escher, but these have not yet been agreed. There is still a question
regarding future capabilities of the Framework, with an expected mismatch between
POL’s expectations and reality. Escher’s response to our decision to drop the
framework at Release I in favour of a Jater intercept strategy is not encouraging. They
remain a very difficult supplier to deal with.
2.3. NETWORK BANKING PROPOSAL
The inherent risk in the work required that interfaces with POL, IBM and LINK and
POL’s role as Systems Integrator has !ed us to the conclusion that we cannot submit a
wholly compliant proposal for a Fixed Price only contract for Network Banking. POL
are not best pleased with this and clearly do not understand the basics of risk
management.
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Commercial &
Financial
Report
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ICL Pathway Commercial & Financial Report Ref: PA/REP/O7!
Version: 3.0
Date: _08/°11/2001
Commercial & Financial Report
1 MONTHLY SUMMARY
e The LPD wide Oracle Financials implementation has disrupted the financial
reporting for October and results declared represent an estimation of October’s
performance. It is expected that the results for November will be on a more solid
basis dealing with any variations on the October estimated and actual position.
e Based on estimates, October revenue is being declared slightly better than forecast
due to the strong level of invoicing on Network Banking; cash costs better than
forecast due to lower than forecast headcount.
« Borrowings (a known position) were £210K lower than forecast. We have been
able to repay £8M off the Asset Co. loans.
© POL has rejected the CCN for Day D rectification plan and we are awaiting. their
comments on the-reasons for this.
e Work continues on drafting changes to the schedules to the Codified Agreement
in respect of Network Banking.
e Further discussions have taken place with.POL primarily around answering their
questions on the Silver/Bronze Hybrid option. POL have not made their
considerations on cost-and performance characteristics known to ICLP making it
difficult to know if ‘all their issues have been addressed. However, we have
advised POL that we are unable to offer SLAs for this option until a period of live.
running has taken place.
2 . PROGRESS
e Liam Foley introduced CL-S to Peter Corbett, POL’s new Finance Director. This
was a useful meeting and with constructive views on each other’s companies
aired. A further meeting is planned for mid December.
e The initial meeting was held with the FJ Business Support team to describe
Network Banking. Separate technical and legal sessions were held. An approval
paper will be written to facilitate FJ approvals for the bid submission and a request
to extend or restate the FJ parent company guarantee.
e Considerable work has taken place to identify a risk plan for Network Banking
with much support provided from Simon Robertson, Group Risk.
e The Network Banking cost models are well underway to provide the necessary
cost analysis for setting the pricing proposal
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Version: 3.0
Date: 08/°11/2001
« A Group BAR to review the NWB opportunity is set for 7'" November.
3. RISKS
© POL’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.
* POL’s slow response is delaying the convergence on the SLA package and CCN
to Day D rectification.
4 ISSUES
¢ The original justification in the RAR to support external recruitment of a
Commercial Executive has lapsed. A revised RAR.will be raised.
5 FINANCIAL PERFORMANCE
Please see page 7.
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ICL Pathway Commercial & Financial Report Ref: PA/REP/O71
Version: 3.0
Date: _08/°11/2001
ICL Pathway
Key Numbers - October 2001
The'key numbers below are a summary of the results that have been reported to ICL. They represent an estimation of the
October performance. The cutover to an LPD-wide accounting service based onthe Pathway finance team has disrupted
the normal data’ flow and timings for the month.
Revenue has been estimated to be higher than forecast by £310k, due to strong Network Banking billable revenues. Cash
costs have been estimated to be £458k lower than forecast on the basis that headcount related costs are known to be slightly
lower than forecast, and there are no known major adverse expenditure items arising. It has therefore been assumed that
the risk allowances in the forecast have not been required,
Net borrowings (a known number) were £210k lower than forecast. A further £8 million was paid off ofthe Asset Co.
bank loans, leaving a balance of £40 million. The estimated gross working capital was £620k worse than forecast, due
mainly to the lower expenditure - and therefore creditor - levels.
Results for November should be more solidly based, and correct on a cumulative basis. Any differences between the
estimates used for October and the ‘actuals’ for the month will be reflected in the November results.
; YTD (vs
Month of October 2001 Budget)
£000s ‘Actual I Forecast Variance ‘Actual Budget] Variance
Revenue & Profit: Revenue 10,700 I 10,390 310 76,522 71,208 I 5,314
Profit Before Tax 1470 I 1,428 42 10,412 9,397 I 1,015
Costs: Cash Costs 7,650 I 8,108 458 52,119II 58,464 I 6,345
Net Interest Cost 7 179 62 1,016 1,353 337
Cash & Investment Net Borrowings 14114 I 14,324 210 14,114 26,674 I 12,560
Capital Expenditure 75 15 0 561 3,745 I 3,184
Project WIP 12,495] 13,283 788 12,495 23,721 I 11,226
Gross Working Capital 7,545 I 6,925 I (620) 7,545 4,926 I (2,619)
Month End Headcount:
Permanent 296 306 10 296 313 17
Non-Permanent 64 67 3 64 62 2)
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ICL Pathway Business Development Report Ref: PA/REP/O71
Version: 3.0
Date: 08/11/2001
Business Development
1 MONTHLY SUMMARY
New Business signed to date now exceeds £10million. The major-focus. continues to
be on closing the Network Banking contract by end December.
The two other main focus activities revolve around Contract Extension and ERA
which is being resurrected with a more defined focus.
Post Office Ltd., having come into operational effect on 1 October, is starting to find
its feet albeit with many issues of both overlap and underlap to sort out. This is being
complicated by the cost cut pressures announced on 3 Oct 2001.
ERA is being resuirected with clear emphasis now on Mails, Stock Sales and Stock
Management. This will provide more focus on potential deliverables and the benefits
arising. We are about to re-engage with some resource calls starting asap.
It has been made very clear by Post Office Ltd. that Contract Extension.should be on
the agenda as soon as the Network Banking contract is out of the way. Alan Barrie
will lead on this for Post Office Ltd. Peter Corbett, the new Finance Director for POL
has made it very clear that the Horizon system costs more than the business can afford
and we must focus ‘on‘delivering more for less as we look to the future.
Three companies, Cap Gemini, Parity & Deloittes have been invited to undertake a 5
week study at their own cost looking at're-engincering of POL products.
2 PROGRESS
2.1. Network Banking:
Continued progress on Network Banking. The proposal is due in on 16" November.
Corporate review takes place on 7th November. SRS continues to get closer to sign
off.
Discussions continue with Escher and pressure is on them to deliver the promised
information on the Web Framework.
2.2. ERA:
We are about to submit a CCN for resource to restart work on ERA. This will
take us up to end March and will be worth in the region of £500K.
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Version: 3.0
Date: 08/11/2001
2.3. YOUR GUIDE:
The pilot continues to go very well. Discussions continue between Post Office Ltd.
and Government to progress national rollout. These discussions have not been going
well‘and there is-some loss of faith within Consignia. We have been working with the
key people to help their influencing plans
2.4 OTHER:
Relationships are being built with the Strategic Alliance team and MFU client
teams within POL. The main objective being to ensure that we receive earlier
insight of opportunities and that communication is shared. To this endevour
marcom information is being produced with the planned target audiences being
both Consignia and POL, these include monthly ‘Horizon Update’, monthly ‘ICL
Update’ and case studies thatare product specific,
e Discussed several new opportunities of product re-erigineering and the use of MIS
data
e Local Collect:
Phase 2 go live scheduled for mid November.
e AP Barcode Extension:
Withdrawn by PO, Escher are confirming if it is possible to extend the token
display view. PO would ideally have liked this service available for ‘Anglian
Water’ client-being taken on in October with a longer barcode. Delivery date not
possible.
e E-Top Ups:
Initial scoping investigation in POL extended. The decision to proceed was
expected late October!
e OBCS:
OBCS entry to NI - this is:planned for $10 release with a random migration. No
change
e Asylum Seekers:
Due to government announcements regarding the use of 'smart card’ POL- scoping
has slowed. Meeting earlier Nov to discuss
e TfL:
Initial scoping within POL extended. Release date externally fixed for 01/01/03.
e Sips:
Data Capture - EPOSS - Amendments to weckiy pensions & allowances report
and Horizon Counter Printer Till Roll Office Copy.
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Version: 3.0
Date: 08/11/2001
e¢ CCNs approved by all parties, release date BI1 $11.
e Completed discussion paper on Bureau. Seems to have gone into a black
hole.
e Issued EFTPoS SRS after incorporating 200 plus comments. Received a
further 300 plus.
e Resolved issues on EFTPoS relating to MID / TID management,
reconciliation and encryption.
e Organised and chaired visit from NatWest Streamline
e Successful relationship built up between Pathway (all) and PO Mails team
wrt to Mails Label Printing (currently seen as résponsive, helpful and cost
effective). Implementation progressing well.
e Successful meeting with ParcelForce to promote Escher Mails Products,
follow up meeting planned for 7"
e Continuing involvement with new ERA.
2.5 CONSIGNIA:
e P&PS Division IS/IT Consultancy /e-infrastructure.
P & PS Security Helped Ian to pull together ideas for Microsoft Practice and
Gerald Bumett/Jim McIntosh. Security consultant still on this assignment for
Business Systems (£15k in Sept) and a new consultancy contract for
MetaDirectories has been agreed (22.man days @ £1,100 per day).
« ISD
Nothing to report other than some new bidding (se below) and outsourcing
discussions.(Neil Bagshaw). All other activities ticking over eg WDM
* MCD
Nothing to report.
e e-Innovation
ViaCode. Pilot cancelled.as Innovation Fund financing pulled
Knowledge Management Further meeting to be:held.(Nov)
KnowledgePoo! £25k revenue reported in Sept.
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Version: 3.0
Date: 08/11/2001
2.6 BIDS
OJEC Proof of Delivery/ Receipted Mail Managed Service.
The business case is still being compiled and we may not hear anything: until Dec.
BUT there is a strong assumption that it will proceed.
Business Systems outsourcing.
Pre-OJEC. Warming up ISD who have 3 £1bn outsourcing opportunities on the
go — hoping to get experienced Bid Director.
2.7 OTHER ACTIVITIES ACCOUNT TEAM
e ICL e-portal application opportunity now rests with POL as Tim Carroll has run
into GroupT&IS/Purchasing difficulties in Consignia...."should we go out to
tender?"
e Some Your Guide sales activities and, reluctantly, having to stay close to Jim
Amold's CSIP/Scorecarding activities. Also trying to clarify ICP and sub
contractor relationship issues.
e “Horizon update” send out to Tim Carroll. And, if approved, it can go on the
Strategic Supplier Database as a regular monthly feature
e Very good session with Vanessa Leeson + team (Mark Adlem IS/IT Director)
resulting in request for immediate followup from Mark.
¢ Home Shopping contact available (after Escher & Leeson meeting) and will fix up
to meet during November.
© Organised and held a successful team visit to the Innov Lab (further work should
be undertaken to move forward some of the ideas generated)
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Consultancy
Services Report
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ICL Pathway Consultancy Services Report Ref: PA/REP/O7!
Version: 3.0
Date: _ 08/11/2001
Consultancy Services Report
1 MONTHLY SUMMARY
1.1. NETWORK BANKING
Tony Hayward has published version 0.10 of the SRS expecting it to be the baseline
version, only to find 130 comments from POL in the first week ~ mostly around
pinpads. Urgent action is now required at Programme level to insist on POL agreeing
to put requirements under change control. The discussions on Acceptance seem to
have gone into a temporary hold while POL consider their reaction to our proposal.
We are working out how to accelerate the acceptance planning/negotiation activity.
2 PROGRESS
2.1. NEW DEVELOPMENTS
BII S11 release
At the last moment POL decided to go for a very much smaller change to the Cash
Account and pull in some SIPS instead. They gave us a list of 5, in order of
preference — then at the very last moment changed their choice. Good Pathway
teamwork in seeking to delight the customer.
Euro project
Two workshops held this month, the first on cash account contro! and other process
requirements for the actual conversion weekend, the second (which ICL did not
attend) on internal POCL interface issues. We continue to demonstrate that we have a
well thought out and viable Euro Strategy. The main output’of the meetings is usually
a list of POL actions, some to give us data, but most!y POL internal.
Release Planning
If there is to be a summer 2002 release independent of Network Banking then the
planning.needs to be addressed urgently; especially as we have the opportunity to lead
POL’s thinking. The Requirements team will take a brief from Development on
constraints; options etc.
2.2. NEW OPPORTUNITIES
Citizen ID
Work.done to establish who is leading 'in govt:
- Cabinet Office own the overall policy issue
- Home Office are the implementers, commencing with Entitlement Cards for
Asylum Seekers.
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‘ersion: 3.0
Date: 08/11/2001
There are three agencies who could logistically own a larger programme for citizen
entitlement cards: DVLA, Passports Agency and Office for National Statistics
(responsible for civil registrations). However there is as yet’no declared consultation
on anything beyond Asylum-Seckers and we assume the political speed is “extremely
slow” due to widespread opposition to anything resembling an ID card. More
importantly, Consignia/ POL need to raise their profile and level of interest in the
topic -- at present they are not on the govt radar.
Outsourcing (1)
Following the declaration that Consignia Business Systems Group will be outsourced
T learn that Alan Shepherd is leading the team, on behalf of Les Graney, looking at all
options — including what to do if the outsource fails. An OJEC is being prepared and
could be in the journal very soon, with an expected 15 months to any contract going
live. Consignia have declared a preference for a JV, retaining 51%, and raising capital
for re-injection into Consignia. Ie effectively selling half of Business Systems. We
expect more guidance soon from Jim Reed IT Procurement Director.
Outsourcing (2)
The option to split Horizon back-office systems from the Consignia Business Systems
Group outsource is attractive to ICL and we are working out how to make it attractive
to POL. We have requested the involvement of ISD, as the experts in bidding for
outsourcing business, and they are-allocating staff time to work with us. The initial
objective is simply to scope what would make an attractive (to both ICL. and POL)
offer.
Travel - PCLATSO
The specification supplied by POL for contactless readers for the PINpad
procurement shows that PCL are a major threat in this area. PCL even suggested
supplying a terminal which includes a PINpad and can be used for network banking as .
well! Meeting arranged with ICL Transys team to start discussion on how to get best
benefit for ICL. POL (Patrick Pallot) have made a direct approach to Transys — but
then failed to turn up at the-meeting
APS
APS enhancement — “if a design study can be completed to assess various
opportunities for enhancing the generic capability of PS (principally additional data
capture) this should allow us to offer POL the ability to enhance services such as the
DVLA V11 transaction
AP File server - The proposal document has been produced.
DVO
Discussions with PWC on how Horizon should feature in the current ICL / PWC bid
to DVO. The main synergy seems to be in the area of electronic relicensing, this
relies on National Insurance and MOT databases becoming available to act as an
authorisation
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Version: 3.0
Date: 08/11/2001
Viacode & Voice recognition.
Project cancelled by Viacode ~ attributed to cut back in innovation funding.
CURRENT SERVICES
APS
e = Talexus
We have now been.advised that POL wish to formally suspend Talexus. POL’s spend
will be approx £1M. It is expected that POL will issue a revised Schlumberger
tequirements specification in approx 4 weeks, after which we assess the impact of
restarting the programme. The challenge for us if POL do wish to restart is to
complete the development and testing during 2002 and hit the 'summer' release.
e SPM
POL will be withdrawing the SPM service. It seems that British Gas have chosen to
withdraw this facility and will start removing consumers home units from early next
year.
° HAPS
We have now received the draft Change Request advising.us of the closure of the
HAPS service.
e Client Connections
New client connections continue with DVLA, AON and EPS being introduced this
year and in early Jan. National Savings will be coming on-line in March.
ISSUES
Usual need to tie down POL’s antipathy to agreeing requirements.
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Programme
Report
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ICL Pathway Programme Report Ref: PA/REP/071
Version: 3.0
Date: 08/11/2001
Programme Report
1 MONTHLY SUMMARY
e The Your Guide Pilot has completed its second month of operational running,
with four months to go.
© Talexus phase I has been suspended whilst POL resolve outstanding issues with
Schlumberger:
e A baselined NWB Application Interface Specification with IBM has not been
achieved, however ICL Pathway are progressing based.on agreed assumptions.
e A NWB Pinpad supplier has been chosen based on_Jeast risk and work continues
to._make the price more acceptable.
e Work continues with Escher on agreeing the Framework AIS, Architecture and
Requirements. Although good progress has been made, there is concern this will
not conclude in time to include in NWB Release.
e Good progress continues on Infrastructure NWB Releases, BI1 and BI2, and these
holding the original schedule.
¢ POL have reviewed and accepted the ICLP BI3 plan which shows Integration
testing concluding October 2002 and a Live Pilot in January 2003 following an
extended POL End to End test.
¢ Network upgrade options to support.on-line authorisation have been presented to
POL, but their drive for the. lowest price does not balance with their service
availability requirement.
e Most EFTPoS issues have been resolved, but it is not known if the increase in
scope can be accommodated in POLs desired timescales.
2 PROGRESS
e AP Client NIE was migrated to Horizon during October. Client.BT has still to be
scheduled by POL, but their drive is to arrange this within the next 4 months so
that their HAPS system can be de-commissioned. Preparation for New Clients
Quantrill and DVLA has been completed on schedule and await an
implementation date..A request has been received to connect another new Client,
AON, in early 2002.
¢ ICL Pathway was informed during September that. POL has no confidence in the
design specification provided by Schlumberger and have formally invoked their
suspension option during October. The Talexus project will be:closed down by the
end of November in a clean state ready for any re-start next year.
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Version: 3.0
Date: 08/11/2001
e POL has reduced the size of the Cash Account change for 2002/2003, therefore
allowing the introduction of further change into S11, a Release in early 2002.
e Your Guide usage has slowly declined over the month, presumably due to the
novelty effect wearing off. A local advertising campaign has however reversed
this trend ‘in the final week of October. Advertising and promotion campaigns are
planned to continue during November and December.
e Your Guide availability has suffered from time to time during the month owing to
network outages and printer problems. Both these areas have been corrected and
availability is Currently running at a high level.
e The programme to upgrade all Your Guide kiosks in the. field with a higher
capacity printer hopper is under way and running to schedule. An enhancement to
the kiosk software build has been developed and is also currently being released to
the field.
e The first draft of the study to assess the overall impact of a Your Guide National
Rollout has been produced and is currently being costed and prioritised. However,
the way forward on Nationa! Rollout remains uncertain, with no business case or
customer funding currently in place.
e We have received a Statement of Requirements for the changes required to
Horizon in order to support Your Guide National Rollout. We understand that the
case for National Rollout is being vigorously pressed by the Post Office with
Government, but at this stage, there is no commitment by Government to funding.
e Wedid not achieve an agreed IBM NBE AIS ‘in October and have been working
on how to mitigate that delay. Good progress was made towards the end of the
month on the definition of transaction response and result codes and an agreed
assumption position should be achieved in November. The TIS underwent a
number of review cycles with [BM and version 0.4 is due to IBM early
November.
© The NWB baseline was confirmed to be their Statement of Requirement v1.2 and
three CRs. The SRS was updated to reflect these changes and re-issued Mid
October and comments received are now being dealt with. The plan is to baseline
this early November, but that is dependent on the POL review period.
e The SDS documents are now complete: and are available under NDA for review
by POL.
‘COMPANY IN CONFIDENCE Page 16.0f 28
FUJ00116072
FUJ00116072
ICL Pathway Programme Report Ref: PA/REP/071
Version: 3.0
Date: 08/11/2001
e ICLP has continued dialogue with Escher, working towards an agreed AIS for the
Framework, an agreed Architectural .position for the new Framework and an
agreed Requirements baseline. Discussions have been positive, but it is
questionable whether a schedule can be agreed that will ensure NWB is not
impacted. ICLP still. has a fallback, non-Framework, position that can be initiated
during November, but mid November has to be the final decision point regarding
the Frameworks inclusion for day 1 of NWB.
e The first Release of NWB, BI1, has completed early testing of the Tivoli upgrade
and commences initial upgrade into Live in early November.
e The second Release of NWB, BI2, is progressing to schedule, with the latest
WebRiposte performance drop undergoing validation.
* POL have accepted, following detailed review, that the ICLP BI3 plan duration
cannot be reduced further and shows a completion of Integration testing in
October 2002. Tescom have been employed by POL. to review their testing
strategy and they have supported an 8 week End to End test cycle, post ICLP
testing. This has therefore confirmed that the Live Pilot will be in January 2003,
just allowing migration to complete by the important Apri! 2003 date.
e Work’has continued to reduce: the price of the NWB Network options and POL
have been keen to pursue the cheapest option, a Hybrid mix of FRIACO nailed up
and FRIACO dial on demand. However, Energis, and therefore ICLP, are
unwilling to agree initial SLAs and have proposed that the service must be
operational for a period of time before these can be set and agreed. POL views this
as unacceptable and currently feel there is not a viable solution, with a viable
price, on the table.
e Discussions have continued with the two main Pin Pad candidates, Ascom and
Hypercom. Details on how these suppliers could meet the POL requirements were
issued to POL who directed that price was: of paramount importance. Based on
that direction, we have'negotiated:the least risk supplier to an acceptable price and
constructed an implementation plan around achieving a high installation level by
April 2003. Specifications have been produced for the PIN pad engineer test. The
design is being structured to also satisfy the requirements for asset management
and security.
e Contract Schedule workshops are continuing between POL and ICLP and it has
been agreed these will form.the basis of Acceptance.
COMPANY IN CONFIDENCE Page 17 of 28
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ICL Pathway Programme Report Ref: PA/REP/O7I
Version: 3.0
Date: 08/11/2001
¢ There have been a number of issues regarding EFTPoS where POL have now
directed a way forward. The next version of the SRS is in production, detailing
these changes, and work has commenced on changes to the design for the SDS.
The two main areas of discussion are regarding MID/TID management, where
ICLP has been directed to have a MID per outlet and a TID per counter, and
reconciliation. On 30th October we had our first technical meeting with NatWest
Streamline, the Merchant Acquirer. On the positive side, many of our design
assumptions have now been confirmed, on the negative side, ICLP is dependent
on POL to ensure a quick turm-around on further clarifications requested during
the meeting. It is not currently known if the increase in scope can be included in
their desired timescales.
e The first pliase of the revised ERA project has been specified, but: the Product
Initiation which was due to be delivered by the end of October has not been
produced by POL.
e ERA Phase I is currently viewed as MAILS, Stock Management.and Stock Sale.
POL is now looking to fast track the production of the SRS and SDS documents to
enable a business case to be produced by 20" December 2001, but ICLP do not
believe this is achievable.
e Work has commenced on reviewing future capabilities and a first workshop on
this topic was held in early October, with facilitation provided by an e-Innovations
consultant. A number of topics for potential follow-up were identified and the
output circulated amongst attendees and the management group. Resources are
being reviewed to agree how this can be progressed further.
3 ISSUES
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. There is still a question
regarding future capabilities of the Framework, with an expected mismatch
between POL expectations and reality.
e The Network options for NWB are either outside the business case of POL or may
not achieve their availability/response requirements.
e Now that.POL have confirmed the scope of EFTPoS, it is not known if this work
can be accommodated within the timescales of the NWB Release, their desired
schedule.
« POL have made a-request to produce ERA Phase 1 SRS/SDS documents by the
end the year. This is not achievable, given the notice period and resources
available.
¢ The requirement for a MAILS package is dependent on Escher developing their
MAILS 4 product — the roadmap for this development is unclear.
COMPANY IN CONFIDENCE Page 18 of 28
===>
———
——
WITT)
Uh
—_——
———
—_—
FUJ00116072
FUJ00116072
Development
Report
FUJ00116072
FUJ00116072
ICL Pathway Development Report Ref: PA/REP/07!
Version: 3.0
Date: 08/11/2001
Development Report
1 MONTHLY SUMMARY
1.1 Non-banking
AIL S10 work is complete.
All-work on the Laptop / PSTN solution is complete.
Development of the S11 release has started.
Talexus development is being ‘wrapped up’.
1.2 Banking
BI2 and BI2 development and testing continue.
Work continues on BI3 design, planning and estimating.
2 PROGRESS
2.1 S10Rand S11
Work on some late fixes-and changes to $10 has been completed and these are ready
to be released to Live in early November.
S11 content has been finalised, and comprises a minimal change to the Cash Account
plus five other user-requested changes. Coding and test analysis has started.
2.2 Network Banking
BI (Tivoli) testing continues and remains on target to achieve the planned November
— December implementation.
BI2 (infra-structure) main build / development work is completed, system testing is in
progress and early integration testing has started.
BJ3 (applications) — a lot of development resource effort continues in production of
the SDS’s. Early counter prototyping and design activity continues, as well as early
proving of the current application with the new Escher deliverable (Web Riposte).
Much planning and estimating has continued, and is now nearing completion. Work
has started on defining the outline requirements for the NBE test hamess. Definition
of the solution for the network is still continuing.
COMPANY IN CONFIDENCE ” Page 19 of 28
FUJ00116072
FUJ00116072
ICL Pathway Development Report y Ref: PATRER/OTI
ersion: 3.
Date: 08/11/2001
Talexus Phase 1 coding and testing continue, to achieve a managed closure as
formally requested by Post Office Ltd. This project will be ‘suspended’ as from mid
November.
EFTPoS'SDS production.continues.
Development and testing of DVLA and Quantrill AP Client Migrations completed.
YG.Patch 4 work has been completed.
3. ISSUES
3.1 Resources
Continuing inability to recruit resources (freelance replacement and additional) means
that the planned de-risking of NWB development is not in place, and that certain
elements of the NWB plan-are still not fully resourced.
RAR’s have been submitted some time ago. Relaxation of the ban on external
recruitment is being sought.
3.2. EFTPOS
There are a number of issues over the growing / changing scope of the requirements,
the capability of the proposed interface to the bank, and therefore over our ability to
deliver within the required timeframe.
Clarification of the issues is being actively pursued.
COMPANY IN CONFIDENCE Page 20 of 28
FUJ00116072
FUJ00116072
Customer
Service Report
FUJ00116072
FUJ00116072
ICL Pathway Customer Service Report Ref: PA/REP/071
Version: 3.0
Date: 08/11/2001
Customer Service Report
1 MONTHLY SUMMARY
Another steady month despite a less than sparkling performance from Energis.
1.1 VITAL STATISTICS
Live Base as at 31 October 2001: 17,561 Post Offices, 37,996 Counters
Cumulative Data is from 1*' December 1999 to 31“ October 2001 inclusive
Monthly Data is from 1* October 2001 to 31° October 2001 inclusive
OBCS
Total number of transactions'to date 864,688,520
Total number of transactions in October 58,466,294
Total value.of payments to date £68,185,650,168
Total value of payments in October £4,701,796,197.15
EPOSS
Total number of receipts to date 1,027,944,591
Total number of payments to date 178,804,983
Total number of zero value transactions to date 88,145,547
Total number of receipts in October 64,486,156
Total-number of payments in October 8,846,995
Total number of zero-value transactions in October 6,194,629
Total value of receipts to date £59,491,494,928
Total value of payments to date £17,102,592,270
Total value of receipts.in October £3,917,050,574
Total value of payments in October £875,528,482
APS
Total number of transactions to date 383,430,554
Total number of transactions in October 30,231,477
Total value of receipts to date £10,003,438,374
Total value of receipts in October £774,871,783.00
NOTES:
e EPOSS zero-value transactions include issue of books, change of address, etc.
COMPANY IN CONFIDENCE Page 21 of 28
FUJ00116072
FUJ00116072
ICL Pathway Customer Service Report Ref: yaRepont
Version: 3,
Date: 08/11/2001
2 PROGRESS
2.1. OPERATIONS & SUPPORT
Excellent month with regard to data delivery SLA’s with a day D figure of 99.7%
There have been a number of network incidents which have had significant service
impacts. These are:
a) On 28/29" September, a Pathway software fault caused the Energis network
to overload which resulted in Energis imposing call concurrency restrictions
without informing Pathway.
b) On 5" October there was:a fault on a MUX between. Kirby and Kearsley. This
affected YG and revealed a single point of failure on the YG network.
c) On the 11'" October there: was a single point of failure caused by a fault on a
Primary Rate Controller Card. This again highlighted a potential lack of
diversity within the network that affected HOT at Milton Keynes and PON at
Huthwaite. This was caused by a faulty controller card at Kearsley.
These incidents are being reviewed with Energis.
Tania Reyonlds has been seconded into the Pathway CS BC Team to specifically
work on the development of revised Disaster Recovery plan across Pathway. It is
proposed that a model, similar to that used for in the production of BRAOL CS
Disaster Recovery plans, will be adopted. Progress meeting have been arranged
within Pathway. Currently making good progress.
There was a problem in the main Horizon solution in which the figures in the adjust
stock screen for a limited number of post offices — those post offices’which had rolled
forward into a new balance period 12 months ago and attempted to do so again hit the
bug. Some 400+ post offices were at risk. The ones that already had the problem were
manually fixed by the SSC. The remainder were removed from the roll-out lists while
a fix was being produced, and did not receive $10 until later than expected.
There have been some TIP file rejections during the month. These were resolved by
Jim Anscomb / Garrett Simpson / Martin Harvey as errors in TIP reference data,
which appears to have been loaded early for Christmas — thereafter rejecting transfers
from valid CA periods. Files have been regenerated and resent.
APS Client Migrations/Connections: There are now 17 AP client interfaces of
which 5 are new connections (not ex-HAPS), and the Giro interface supports 451
Clients. The outstanding HAPS migration is BT. NIE was migrated on 17" October
and the link performs well, although the client had an issue requiring input from ICL
Pathway re their procedures for taking files off the box. Plans are well advanced for
DVLA (due 16" November) and Quantrill (due 5” November). AON and ESP are
expected to be implemented in February 2002. Signs are also good for BT (expected
to migrate just before Christmas).
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FUJ00116072
ICL Pathway Customer Service Report Ref: PA/REP/O71
Version: 3.0
Date: 08/11/2001
The new CSR+ CTO service. Development within RDT continues well. Plan is
being monitored via the APSORF. POL have been given a prototype of the capture
tool and are now providing feedback. The service is forecast to be available before the
end of January. The deadline is end Feb when the PON-SEMA HAPS contract
terminates.
The LFS service. More information was provided on their pitot plans at the October
LFSORF but the situation is still clearly fluid. POL have committed to provide
written statements summarising the pilots. The DCOH (Daily Cash on Hand) anomaly
appears to be considerably better since the introduction of S10. Weekly Stock on
Hand fix is still scheduled for S11. Re LFS SLAs, after internal discussions re
proposed changes, John Pope is now in dialogue with PON.
2.2. INFRASTRUCTURE SERVICES
A review with POL of System Service Remedies is scheduled for the first week of
next month, this should bring both parties up to date and agree Q2 2001 (June —
August) in line with the agreed process. Remedy information has been supplied to
POL up to and including week.ended 18 October. The pre-review remedy payment
for September has now been confirmed at £429.22 with October’s expected to be;
circa £3300. An initial submission.has been made to ISD to recover the extra charges
from April 2000 to February 2001 incurred as a result of remedial reviews with POL
re. previously settled system service calls. This amounts to approx. £97k. ISD are
currently examining our data and expect to have a response within the next two
weeks.
DFD SLA will surpass the rectification plan day D SLA for the.month of October.
Day J 100% could possibly be achieved for the month once we are aware of the status
of some non polled’outlets which could be removed from the SLA calculation. This
achievement has been accomplished through efficiencies within the management of
non polled outlets by both ISD and ICL Pathway.
Achievement for October 2001 is expected to reach conformance of 100% due to the
lack of financial integrity incidents raised since the release of S06 / S10. This is the
fourth consecutive month where 100% has been ‘achieved. The team is working
closely with POL Chesterfield to document and agree the incident management
process re. Network Banking reconciliation and settlement. It is expected that the
Reconciliation Report specification will be signed off by POL within the next month
and this will allow a joint exercise to be completed by both MSU and POL to track
‘pseudo’ transactions through the reconciliation process and iron out any bugs prior to
formal testing. We are still awaiting the outcome of the Case Law presentation to
POL Commercial re. disputed manual error report charges from December 1999 to
date. Hopefully, once a precedent has been set and any settlement between ICL
Pathway and POL agreed, this will assist in the review process and dvoid any
operational disagreements.
COMPANY IN CONFIDENCE Page 23 of 28
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tCL Pathway Customer Service Report v Ref. PA/REP/O7I
ersion: 3.0
Date: 08/11/2001
The non polled team within Operational Services are now using the SMDB to assist in
the investigation and reporting of non polled outlets to the Customer. This is resulting
in greater accuracy reporting the status of non polled outlets. The team are also
reviewing their input into the-end to end non polling process by working closely with
ISD to ensure the emphasis is given to those outlets where non polling has a
significant effect on both SLA conformance and transaction delivery.
There are currently:26 OBC changes flowing through OCMS. No major problems ~
with 24 of the changes from the user point of view.
The rollout tail is now down to 7 outlets for installation plus.a further 2 outlets to be
migrated.
Of these remaining outlets, Pathway have 4 scheduled with dates, the remainder
having issues to be resolved by PON or awaiting planning permission.
By the end of October a total of 541 Site visits will have been competed by the FSM
team.
SPoC 2 — It appears POL is still keen to make this happen within the next 6 months. A
CR is on its way requesting a joint study on its feasibility. Given it is feasible, POL
would like implementation in April 2002. The feasibility will be very much a
commercial decision as technically it could be done.
HSRF — We proposed, and it was accepted, that the HSRF move to a more infrequent
timetable. It was agreed with Don Grey to move the HSRF to every two months as
clearly the Horizon product and the service delivery had now matured to a ‘steady
state’. Obviously if the need arises a meeting can be called at any time.
Scorecard — This was discussed at POL’s ASF meeting. A concern was raised that
other parts of ICL were already trying to do this. CSIP was mentioned, so we
positioned Score carding in relation to this. It was agreed that the ASF would use the
scorecard as a single entity and the focus would be on those services supplied to POL
from [CL Pathway Customer Service -- which is basically everything bar development
and new business (Liam). The next action is for Liz and Paul to sit down and agree
the detail of the scorecard before the next ASF which is later this month.
2.3. SECURITY MANAGEMENT
The S10 upgrade identified a number of issues with regard to the activation and
installation of anti-virus software on the live estate. These have being corrected.
Additional work Ihas also been undertaken to rationalise the process for regular
deliveries of anti-virus updates to al! relevant platforms and revised documentation is
being produced. The recent high profile series of virus attacks has highlighted the
need to expand the scope of anti-virus delivery to accommodate a number of
additional platforms. This is being supported by the introduction of a-CP for manual
virus scanning of datacentre platforms.
‘COMPANY IN CONFIDENCE Page 24 of 28
FUJ00116072
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ICL Pathway Customer Service Report Ref: PA/REP/071
Version: 3.0
Date: 08/11/2001
Discussions continue with both Group Security and ISD to identify and consolidate a
list of Pathway dependent Domains together with their respective Owner and
Administrator’s. This will then be used to inform a new process to track and
consolidate distribution and updating of any new a/v software deliveries.
Network Banking requirements are being consolidated to include security elements
required for pin-pad initialisation and maintenance. Input was provided to security
and liability related areas of the revised Codified Agreement.
Input continues'to be provided as required to consolidate security requirements for the
YG kiosks and contents hosting service. We are:still awaiting recommendations from
the CGEY/Consignia penetration testing activities.
Substantial input has been provided to the Triage Pilot activities and CM is currently
reviewing a draft report detailing the security recommendations.
Three audit data extractions were completed in response to POL Security/Audit
requests and an urgent police enquiry. Associated witness statements were provided
where appropriate on a “without prejudice" until contractual agreement is reached.
Work on attempting to restore the broken audit trail is underway but progression is
dependent upon completion of the build and configuration of the pseudo audit server.
The Key Manager successfully processed all key requests received this month.
Automated key expiry, under KMS control, ran throughout the month without
interruption. The total number of outlets in the KMS key expiry exercise has now
reached 6000. The results continue to indicate that at least 10% of outlets will either
ignore prompts or fail to download new security data successfully. A manual Key
Refresh.process has.been agreed with POL to manage non-compliant outlets. This is a
short-term solution and an automated Tivoli process will be required to alert
SMC to outlets that are not responding to prompts.
2.4 SERVICE INTRODUCTION
EMC discs to address the ‘DVLA performance issue’ have now been received and
will now be implemented:soonest.
Final costs are now being put to bed for network banking, we are looking to ISD to
formally underwrite the quotes they have submitted.
$10-counter is going extremely well with around 40 outlets outstanding.
2.5 STAFFING
Paul Curley has now left. We wiil potentially be recruiting Francine Curry into an
expanded role which will include contract renewal.
COMPANY IN CONFIDENCE Page 25 of 28
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FUJ00116072
ICL. Pathway Customer Service Report Ref PA/REP/O71
Version: 3.0
Date: 08/11/2001
We are having difficulty finding a replacement for Kevin McKeown and must now
start looking at external recruitment and extending Kevin for a short period.
2.6 FINANCE
CS.Budget for OPEX 2001/02 is £56.3m after transfer of SMC to Development.
Business Model 050601 is £56.5m
Forecast (CSSep01) is £48.9m
The major forecast improvement from August actuals and forecast of £2.9m are;
£1m from removing.of all risk adjustments from the forecast,
£305k transfer of SMC to Development,
£295k Tivoli Refresh moved to next year,
£224k Price increase on UKSS deferred to Jan02,
£200k forecast for CPs reduced,
£195k saving in the month taken through to the full year,
£165k HSH phone call cost reduced now using Consortium,
£150k removal for Q2 and Q3:contingency from CFMO001,
£100k removal for 1° 1/3 of year contingency for SLAs,
3. ISSUES
Work is starting on mitigation actions against the network Banking risk register.
Principle cause of concem is possible impact on data centre space if we need to
upgrade current infrastructure as a result of potential undersizing. Also potential
impact of YG. We are looking at what options are open to us re expansion
We have still not received formal response from PON re Rectification Plan. We are
proceeding with kit purchase for pilot.but need to_ push PON to formally respond
COMPANY IN CONFIDENCE Page 26 of 28
thn
iit
niin
/
FUJ00116072
FUJ00116072
Organisation
& Personnel
Report
FUJ00116072
FUJ00116072
ICL Pathway Organisation & Personnel Report Ref: PA/REP/071
Version: 3.0
Date: 08/11/2001
Organisation & Personnel Report
1 MONTHLY SUMMARY
° Appointments in October:
External Recruits
Transfers In
LINKwise
Freelance
Fixed Term Contracts
Adecco Temps
TOTAL:
NOoSoCONS
° Known Joiners
External Recruits
Transfers In
LINKwise
Freelance
Fixed Term Contracts
Adecco Temps
TOTAL:
wWooodonH
° October Leavers:
Permanent Staff
Freelance
Transfers Out
Linkwise assignee
Fixed term Contracts
Adecco Temps
TOTAL:
WwSeSCoOoONnHe
° Known Leavers
Permanent Staff
Freelance
Transfers Out
Linkwise assignee
P&PS
Fixed term Contracts
Adecco Temps
TOTAL:
mocooocoH
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ICL Pathway Organisation & Personnel Report V Ref: PA/REP/O71
ersion: 3.0
Date: 08/11/2001
Resource Management
The redeployment of people under the Company’s PLUTO 2 programme continued during
October, with the, focus on EMEA resources, with two people transferring during November.
One person has transferred from P&PS in October and another is due to transfer in
December. Two of the CS freelancers have now accepted permanent roles.
Additionally more resources are expected to move into Pathway with the devolvement of
LPD HQ.
A new electronic RAR system has been introduced which has had a-few tecthing problems,
but has improved the speed of processing.
Freelancer Reduction and replacement
Update 31-Oct-01
Summary No of Heads
Freelancers in Pathway 01/10/01 59
Freelancers in Pathway 31/10/01 59
Freelancers in Pathway 01/11/01 59
Current FC of Freelancers in Pathway on 31/03/02 47
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 increase in, permanent roles due mainly to Network
Banking and the Contract Renewal-team. A case is being put forward to obtain agreement to
recruit externally.
APDU are in discussions about the feasibility of moving the Data Warehousing service to
Manchester. These discussions are*now between Pathway and EMEA directly, as the EMEA
team will be transferring-to FJ Consultancy and as:such will want to charge for the service on
a commercial] basis.
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