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ICL Pathway Programme Monthly Report Ref PA/REP/075
Version: 3.0
Date: _ 07/03/2002
Document Title: ICL Pathway Monthly Report - February 2002
Associated Documents:
Reference Vers Date Title Source
f PA/TEM/011 3.0 25/10/01 Pathway Programme —
Monthly Report Template
Approval Authorities:
Name Position Signature Date
Stephen Muchow
Business Director
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11
1.2
1.2.1
1.2.2
1.2.3
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Business Director’s Summary
PROGRESS AND ISSUES
BUSINESS PLAN
January revenue was £330k better than forecast at £13.8million giving a PBT of
£1.2million which is £101k better than forecast. Year to date revenue is £6.8million
above budget and PBT £0.8million better than budget.
Total Cash Costs continue to track lower and are £11.3million better than year to date
budget.
Net borrowings were marginally lower than forecast and £14.2M better than YTD
Budget. Colin Lenton-Smith has confirmed to Group Treasury that borrowing
requirements may be reduced to £40M from 31 March 2002. The prospect of breaking
into a net positive cash position by year end is now tantalisingly close, but much will
depend on POL’s attitudes towards invoice payment over the next 2 weeks; the
quarterly VAT payment of over £4.5m is also due at the end of the month.
PROGRAMMES
CORE SYSTEMS RELEASE
Service performance was very good with no major issues. HAPS, the legacy system
operated by Post Office Limited to interface to AP Clients, has now been successfully
closed down and all Client interfaces are now direct to Horizon.
Data delivery SLAs again achieved excellent performance with 99.99% for OBCS and
99.97% for TIP.
Service Visit Reply cards are being returned for circa 25% of engineering visits and
indicate that Customer Satisfaction levels of 90% are being achieved.
YOUR GUIDE (GOVERNMENT GP)
The Your Guide Pilot has now concluded. It will be withdrawn from Leicestershire
outlets during the first three weeks in March. Ironically, January and February showed
a marked increase in usage, returning to levels seen only at the start of the Pilot. We
continue to engage with POL in looking for a practical means of rolling out some Your
Guide functionality nationwide by the end of 2002. The DTI maintains that the Your
Guide Pilot evaluation will be completed in June and that a decision on National
Rollout will be reached in November 2002. It is clear that, informally, the Pilot is being
seen as a success.
CONTRACT EXTENSION / OutsourcinG
Work continues on examining POL back end systems to assess the potential for
outsourcing. The objective is to examine ways of extending the scope of the Pathway
contract to allow us to offer a better value proposition to Post Office. Alan Barrie
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ICL Pathway Business Director’s Summary Ref: PA/REP/075
Version: 3.0
Date: _ 07/03/2002
1.2.4
remains adamant that he must see a significant reduction in the cost of Horizon as the
business cannot afford current costs. He is looking to reduce overall costs by
£30million pa. We are now extending the scope of this work to embrace the
commercials and the overall architecture of Horizon.
NETWORK BANKING
Lengthy and very detailed negotiations continued throughout the month leading to a
meeting with Alan Barrie on 7 March when he informed us that, subject to contract
and certain other caveats, he had decided to award the Network Banking contract to
ICL.
This is a fantastic achievement and the result of a tremendous amount of very hard
work by the whole Pathway team. It is a great win against strong opposition from
IBM.
The conditions attached to this victory are not entirely welcome and we are working
hard to ensure that the overall contract margin position remains within our target
range.
We hope to be able to move to contract signature in early April.
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Commercial & Financial Report
1 MONTHLY SUMMARY
e The LPD wide Oracle Financials implementation is still impacting the production
of monthly financial reporting, and we are having to learn to live with what it
provides; possibly the capabilities of the system are not being fully exploited.
e February revenue is £330K above forecast at £13.8M, and PBT above forecast at
£101K. Year to date revenue is £6.8M above budget and PBT £0.8M above
budget.
e Total Cash Costs continue to track lower than budget and year to date are £11.3
better than budget.
e Net borrowings were marginally lower than forecast; £14.2M lower than YTD
Budget. We have confirmed to Group Treasury that borrowing requirements may
be reduced to £40M from 31* March.
¢ Following the rejection of CCN for Day D, meetings have been held with POL’s
operational team to iron out the objections. A revised CCN has been produced for
final discussion in April, once Network Banking contract negotiations are
completed.
e Discussions with Alan Barrie resolved most issues on the Network Banking
proposal and contract schedule meetings resumed. However, we have been advised
that POL are considering an alternative solution from IBM and slow progress in
the contract meetings would appear to reflect a holding position until POL decides
on the supplier.
e We have received notification that POL are reserving their rights to terminate the
Codified Agreement in respect of two defaults; a) regarding lost data during 1 day
in August 2000, and b) regarding failure to meet 100% LFS SLAs. We have
rigorously rejected both claims on the grounds than neither breach has a material
effect on POLs business.
e POL have taken a position rejecting our definition that a working day is 7.4 hours
for T&M invoicing which is delaying payment of invoices. The Network Banking
proposal contains an offer to resolve this issue.
2 RISKS
e¢ 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.
e Slow progress in the convergence on the SLA package and CCN to Day D
rectification.
e PO’s slow payment of invoices is worrying; NWB proposal may resolve this
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Ref: PA/REP/075
Version: 3.0
Date: _ 07/03/2002
ICL Pathway Commercial & Financial Report
© Ongoing review of NWB and overall Programme risk plans continues.
3 ISSUES
e Internal recruitment to build the Pathway finance function and the LPD shared
service finance function continues as part of the ongoing plan for shared service to
relinquish Pathway specific tasks. Recruitment is making slow but definite
progress.
4 FINANCIAL PERFORMANCE
Please see pages 6 and 7.
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ICL Pathway
Key Numbers - February 2002
Month of February 2002 YTD (vs Budget)
£0008 Actual Forecast Variance Actual Budget Variance
Revenue & Profit: Revenue 13,823 13,493 330 121,437 114,662 6,775
Profit Before Tax 1,213 1112 101 15,932 15,176 756
Costs: Cash Costs 6,090 9,228 3,138 80.093 91,431 11,338
Net Interest Cost 24 53 29 1,239 2,018 779
Cash & Investment: Net Borrowings 1,731 1,912 181 1,731 15,962 14,231
Capital Expenditure 1 123 122 622 4,674 4,052
Project WIP 10,143 13,358 3,215 10,143 29,198 19,055
Gross Working Capital 11,819 8,381 (3.438) 11,819 3,106 (8,713)
Month End Headcount:
Permanent 317 322 5 317 318 1
Non-Permanent 66 66 0 66 58 (8)
Revenue and profits were again slightly up on forecast, with high revenues from Network Banking invoicing.
Receipt of on-time payments from POL remains an issue, particularly where T&M charges are concerned. Some part-payments have been received since the end of the
month while the debate as to how many working hours there are in a day trundles on. Lower than forecast cash costs — due in part to the delay in the booking of any
LPD divisional cost allocation — helped to offset the impact of the restricted cash inflow and net borrowings at the end of the month were marginally better than forecast.
Profit recognition this month is on a conservative basis, assuming that the Network Banking arrangements are successfully concluded and that certain credits would
have to be issued, as well as the introduction of a separate and initially lower percentage profit recognition on Network Banking.
ICL Pathway
Commercial & Financial Report
Ref: PA/REP/075
Version: 3.0
Date: 07/03/2002
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ICL Pathway
Key Numbers ~ February 2002
Cash Flow and Borrowings
Adverse working capital movements were offset by lower cash cost le
is now tantalisingly close, but much will depend on POL’s attitudes towards invoice pa
Working Capital
Opening Net Borrowings
Closing Net Borrowings
Movement
Cash Costs
Net Interest Costs
Revenue Recognised
Working Capital Movement
Capital Expenditure
Movement, as above
Invoiced Debtors
Accrued Debtors
Invoicing in Advance
Trade Creditors
‘Advance Payments
Intercompany Balances
ICL B2B Accruals
Financial Accruals
Oracle Projects Accruals
VAT
Month of February 2002 YTD (vs Budget)
Actual Forecast Variance Actual Forecast Variance
5,239) (5,239) 0 846 846
(1,731) (1,912) 181 (1.731) (15,962) 14.231
3,508 3,327 181 (2,577) (16,808) 14,231
(6,090) (9,228) 3,138 (80,093) (91,431) 11,338
(24) (53) 29 (1,239) (2,018) 779
13,823 13,493 330 121,437 114,662 6,775
(4,200) (762) (3,438) (42,060) (33,347) (8,713)
@ (123) 122 (622) (4.674) 4,052
3,508 3,327 181 (2.577) (16,808) 14.231
vels to maintain a better-than-forecast
cash flow in the month.
The
prospect of breaking into a net cash position at the year end
yment over the next 2 weeks; the quarterly VAT payment of over £4.5m is also due at the end of the month,
Month of February 2002 February 2002
Actual Forecast Variance Budget Variance
19,709 12,303 (7,406) 12,908 (6,801)
9,677 13,493, 3,816 8,498 (1,179)
(84) (375) (291) 84
(3,791) (3,644) 147 (7,113) (3,324)
2,929 3,000 7 1019 (1,910)
(3,899) (4,580) (681) (1,221) 2,678
(1,803) (2,400) (595) (2,200) (395)
(4,967) (5,538) (571) (4,149) 818
(1,369) 1369 1369
(4,581) (3,878) 703 (4,634) (53)
11.819 8.381 (3.438) 3,106 (8,713)
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ICL Pathway Business Development Report Ref. PA/REP/075
Version: 3.0
Date: 07/03/2002
Business Development Report
1 MONTHLY SUMMARY
NETWORK BANKING:
© Detailed negotiations have continued throughout the month leading to a meeting
with Alan Barrie on 8" March where he informed us that he was awarding the
contract to ICL subject to contract and four other issues.
e This is fantastic news and a great win against strong late opposition from IBM.
P.O.L. do want to implement pinpads with Romec their own group company. They
also want to see EFTPOS implemented within the same timescale as Network
Banking.
CONTRACT EXTENSION:
e Work has continued on examining the POL back end systems to assess the
potential for outsourcing. In other words, we are examining ways of extending the
scope of the Pathway contract to allow us to offer a better value deal to Post
Office. Alan Barrie remains adamant that he must see a significant reduction in the
cost of Horizon as the business cannot afford their current costs. We are now
extending the scope of this work to embrace the commercials and the overall
architecture of Horizon.
2 PROGRESS
Relationships are being built with the Strategic Alliance team, MFU client teams and
Product Deployment team within Post Office Limited in a positive manner. The main
objective being to ensure that we receive earlier insight of opportunities and that
communication is shared during the scooping period.
AP FILE SERVER:
Discussions continue regarding how we can position this opportunity in relation to
Girobank clients. There are 500 clients under Girobank with 800 products underneath
them. Post Office Limited are currently under review as to whether they continue to
use Girobank for all their clients, share the clients between Girobank and Post Office
Limited or manage all clients independently. We have proposed a complete managed
service and suggested that Post Office Limited provide us with a CR for a feasibility
study.
MIS:
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ICL Pathway Business Development Report Ref. PA/REP/075
Version: 3.0
Date: 07/03/2002
This initiative within POL is now being managed by Dave Parnell and Aldyth Rowe,
who report to Alan Barrie in the Change & IS team. We are engaging ICL resource
who have undertaken similar tasks for M&S.
TRAINING SCREENS:
Initial meetings have been held with Post Office Limited National Training Team to
gain their perception of the prototype and to discuss the way forward. Possible
enhancements have been shared with in ICL Pathway and we now need to determine as
to whether we undertake this at our own risk — meeting March to discuss.
PORTAL:
Post Office Limited are keen to move this forward. Proposition produced covering
phase I and phase 2 approach.
EFTPoS:
e SRS work is now complete and Issue 1.0 is now approved.
e¢ Two CPs have been raised, one to cover chargeable work and one for non
chargeable but as yet everyone is too busy on Network Banking to impact.
« Changes to NWB DRS have caused a knock on effect with EFTPoS such that the
first release will have to be de-scoped (e.g. no DRS connection).
MAILS LABEL PRINTING:
© Mails label printing went live Feb 14" in 1000 branches (90 % positive reaction).
Some problems with printers but this is now tailing off.
e The printer manufacturer has given temporary approval for label printing (until
May 31*) but still need to test 72,000 labels (at a cost of $6000) for ongoing
approval. ICLP will pay the $6000 but Po Ltd Commercial is complaining about
the cost of shipping the labels (about $1000)!
MAILS:
e There is now a small team of Pathway and POL people working towards
introducing a comprehensive mails system by July 2003.
e The first two phases are planned in detail and are Make / Buy decision and
Business case by Mar 31“ and SRS and SDS by Mid year
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Business Development Report Ref: PA/REP/075
Version: 3.0
Date: 07/03/2002
The Make / Buy decision is between the extension of the Scales Application or
purchase of the Escher Mails Package. After producing compliance matrices and
arranging various workshops the decision has been made to use Escher Mails. The
major factor in this decision was the Escher statement that “mails was already
available, would only take 3 months to deliver and would not require a release!!!
Although this is probably not true the expectation has now been set.
Several urgent meetings now being set up to see what can be done with Mails in a
short timescale.
There are a number of urgent requirements that POL need and these are being
progressed via separate CRs for inclusion into S20 but these may fall by the
wayside if Mails can be implemented early.
BUREAU:
The On — Demand proposal is now a live project and a CR has been received.
First installations will start by September 2002.
ICL are proposing a solution that includes provision of PC’s, installation, h/w and
s/w maintenance, management of all data transfers between 1“ Rate and the Outlets
and use of ISDN channel a la YG. — Reuse of YG decommissioned equipment will
be possible.
John Burton appointed as Project manager.
Proposal for pre order include to AP has been accepted by First rate and Post
Office and a CR is expected soon.
3. OTHER
3.1. CONSIGNIA
P&PS ITC Unit:
Small work packages continue & as a result of Penetration Testing at Chesterfield
an identified weakness appeared whereby an intruder could get onto their
switchboard & allocate a free-phone number! Similar testing is now planned at Old
Street.
ISD:
Held their "Census 2000 workshop" with mixed results & Consignia are
undertaking financial analysis of data preparation/document handling real costs in
Chesterfield (a la ERA!). Concern is that their traditional speed of progress will
result in missing the window of opportunity (although why ISD didn't offer up this
suggestion last year is a mystery.) WDM issues seem to be resolved.
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Version: 3.0
Date: 07/03/2002
e e-Innovation/MCD:
No activity
KnowledgePool:
Consignia Purchasing remain vague as to possible outsource of T&DG but they
know K'Pool is interested & will contact them should things get clearer.
Your Guide:
Reasonable session with Catherine McCrohan, received "Jnterim Evaluation
Report", & linked Interforum initiative to proposition for a YG kiosk physically in
Parliament. Pushing Jim Arnold to release his audit of ICL Pathway score-carding
activities. The YG pilot first half game is over and doubt surrounds whether the
teams will meet for the second half.
3.2. OTHER ACTIVITIES ICL PATHWAY, CLIENT MANAGEMENT
TEAM
Plans are in place to meet with key MFU managers within qtr 1 of 2002. This will
potentially get us closer to their client base so that we can understand their
business drivers and strategies.
Discussions ongoing with MFUs to identify ‘quick wins’.
‘Horizon update’ and ‘ICL updates’ sent out as a regular monthly feature.
Production of ‘ICL Pathway portfolio’ discussed & planned for delivery in April.
Engagement with Post Office Limited clients to increase awareness of Horizon,
demonstrations include A&L, HBOS, HSBC, BBC, NAG.
‘New Opportunity’ qualification document produced, currently with Post Office
Limited for approval.
There is now a Pathway database (replaces the current spreadsheet) containing all
the current opportunities being reviewed by the Business Development/
Consultancy teams. The aim is to keep everyone engaged on these opportunities, in
and above the funnel, fully informed so that we can more effectively and efficiently
plan future work/ releases.
4 MARKETING COMMUNICATION
Marketing Communications is working towards the introduction of the Fujitsu
rebranding, such that it appears seamless and is rolled out to ICL Pathway within
timescales specified, and that the customer is fully aware of the change.
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ICL Pathway Business Development Report Ref: PA/REP/O75
Version: 3.0
Date: 07/03/2002
REBRANDING
This is currently my main activity. With the migration to the Fujitsu brand happening
on 2™ April time is running out. I am up straight with most activities, including:
.
ceee
ee
Supplier / Main contact letter — sent 6" March
Working with NFSP regarding article for ‘The Subpostmaster’ — due for
distribution 4" April
Working with Post Office regarding article for ‘Counter News’ — due for
distribution 28" March
Posters arrived for Marketing Suite and general use
Weekly email to ICL Pathway employees started called ‘Rebranding Update’
Stated collating business card list for approval by Management Team
Email from Stephen to ICL Pathway employees regarding how rebranding effects
ICL Pathway
Updating notice boards on regular basis
Working with individuals to help understand how the rebranding effects them —
document templates, ete.
INTERNAL COMMNICATION
Brief EnCounters — will be produced on a quarterly basis, with the first issue to be
distributed once notification received on Network Banking.
ICL Pathway Community on CafeVIK will be completely revamped and updated
due to the rebranding. This activity will be completed by 28" March, with an email
to employees advertising this, hoping that this will attract more people to use it.
Work continues with regards to case studies. The plan is to produce a 'portfolio' of
all the services that ICL Pathway / Horizon provide. The external copywriter is
currently working on the ‘Overview / Summary’ study. Once this one has been
agreed then the following topics will be approached:
APS / AP.
EPOSS
Government Information Services — including Your Guide
Mails — stamps, parcels, bar codes, etc
Management Information System
CS / Managed Service — training, helpdesks, SLA’s, non-polled,
etc
Banking — Network Banking, pin pads, smart cards
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ICL Pathway Consultancy Services Report Ref: PA/REP/O75
Version: 3.0
Date: 07/03/2002
2.1
2.2
2.3
Consultancy Services Report
MONTHLY SUMMARY
© Good progress on developing and agreeing NB SRS, Schedules and CCDs.
© No progress on Acceptance Criteria
e The Consignia Outsourcing bid Pre-Qualification Questionnaire has been submitted
by ISD.
PROGRESS
NETWORK BANKING: Major activity on agreeing Schedules and the associated
clarification and cross-checking of requirements. SRS version 1.2 issued 28/01/02, and
comments received. Mapping matrix produced and delivered to customer providing an
xref from NBR (and PPR installation related) requirement numbers to SRS and the
contract schedules. Additional spreadsheet produced detailing response for POL on
outstanding omissions between the SRS and contract schedules. Counter Dialogues
CCD issued and updated. We are now reviewing v1.1 of the NBSDS with a
Requirements perspective.
CURRENT SERVICES: various CRs received and processed relating to
enhancements to OBCS (new benefit types) and APS (New Clients and File resends).
FUTURE PROSPECTS:
AP data capture - APDU have now started the design study based on our
specification.
Transportation for London - met with Deloittes to discuss Horizon's ability to operate
this service. Concluded that without data capture and an ability to send data in ‘near
real time! Horizon cannot offer anything. Separate discussion whether SSC can
‘acquire’ the relevant data and make it available without any development effort.
The VI / DVLA initiative has now ceased with POL fully understanding our position
and it's removal from $20.
Euro - paper completed and issued to POL. Some follow up will be required.
Discussed with POL how a ‘Your Guide phase 2' solution could be provided using
existing AP functionality. POL to consider if this would be worth it.
POL indicated they 'may' be prepared to ask us to formally consider impacting the AP
File server proposal.
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2.4
2.6
Travel and Ticketing: POL seem to be keen to embark on a process of transferring
the T&T onto the Horizon platform. Their plan indicates a CR to be raised in March
for contactless capability on the counter.
POL Smartcard (Project Hood): met David Truslove: he claims he has had approval
for the business case for Project Hood. Quite what this means is not altogether clear.
David was not very forthcoming at our meeting on 28" Feb. However, he appears to
be on the move in/out of POL.
Met Card Europe who have been advising POL on Project Hood - they showed an
inclination to work with us as long as we push them forward for strategic consultancy.
CONSIGNIA: Research Liaison
Meeting with Phil Gilbert (Director Research) at Coton House to identify what
Consignia Research Group are doing / interested in and to give an overview of Fujitsu
Labs Europe (FLE). Phil agreed that an exploratory meeting was worthwhile. Dr
Tsuda (FLE) meeting set for 15" March - John Bell and Dave Hollingsworth will
attend.
ISSUES
Acceptance Criteria remain the key outstanding issue — no offers from POL on a plan
or resources to progress.
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Programme Report Ref: PA/REP/075
Version: 3.0
Date: 07/03/2002
Programme Report
1 MONTHLY SUMMARY
The Your Guide Pilot has completed, as planned, at the end of February. It will be
withdrawn from Leicestershire outlets during the first three weeks in March.
Usage by the public during January and February has shown a marked increase,
returning to the levels seen at the start of the Pilot.
We continue to engage with POL in looking for a practical means of rolling out
some Your Guide functionality nation-wide by the end of 2002, this being
politically desirable as a quick win. We have most recently offered a solution
based on existing Horizon functionality.
Government is maintaining the line that Your Guide Pilot evaluation will be
completed in June and that a decision on National Rollout will be reached in
November 2002. It is clear that the Pilot is informally being seen as a success, but
while this is a necessary pre-requisite for a positive National Rollout decision, it by
no means guarantees it
Discussions continue with POL on the contents of the S20 Release, aimed at
September/October 2002. This will of necessity be a small release, scheduled for
the autumn, tackling some of POL’s highest priority business enhancements. This
Release may include the Cash account for 2003, subject to POL defining the
requirement in time.
ICLP, POL and IBM have now agreed the revised NBE AIS and TIS
specifications, subject to three caveats being resolved and work continues in these
areas. Whilst ICLP has been able to create a revised plan that achieves the same
end date, a number of technical issues continue to emerge from the Programme as
the revised technical architecture is fully taken on board.
POL has generated a number of comments on SRS v1.2, from their review cycle,
and seeks clarification on issues related to PIN Pads and OBC processes. POL has
proposed that, subject to resolving the issues related to PIN Pads and OBC, the
SRS should be set aside and all attention should be focused on creating the
contract schedules that are derived from the SRS.
POL and ICLP appear to be close to agreeing a contract price following a number
of detailed discussions that took place during February. Significant effort is now
focused on creating the NWB contract schedules, but the commercial situation in
Energis is causing concern both within POL and ICLP.
ICLP have now been able to propose a PIN Pad roll out plan that meets POL's
expectations, but at an increased cost. The price is causing some concern within
POL and there remains some work to be done to reach agreement on the
assumptions that will govern the roll out Programme.
ICL Pathway
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Programme Report Ref: PA/REP/075
Version: 3.0
Date: 07/03/2002
The BI release of Tivoli continues to perform well in service. The BI2
Programme has now entered its final test phases but the schedule remains under
pressure due to problems encountered with Web Riposte and PIN Pad
Test Software. At this time, the BI2 end dates are still holding.
The BI3 release, re-planned to intercept the NBE changes, is continuing to
progress but late agreement on the detailed requirements in the areas of Counter
Dialogues and Reconciliation Reporting continue to put pressure on the cost and
the dates.
EFTPS has also been affected by the NBE CRs from both resource impacts and
changes into its design and this is impacting ICLP ability to achieve the POL desire
of Live by 31/3/2003.
The Post Office signed-off the EFTPoS SRS V1.0.
2 PROGRESS
The ICLP activities for the new AP client ESP were completed during February.
Following the client meeting with National Savings, POL have asked ICLP to
suspend the activities on this new client connection until National Savings have
reviewed the impact of the proposed solution.
Roll out of S11 continues, but there have been some issues with the last few that
are being investigated.
Your Guide availability has continued to run at a high level during the month and
shows high average availability over the whole Pilot duration.
Plans are in place for all the short term actions needed to end the Your Guide Pilot
cleanly and to ensure that MIS data for the final week of operation is recovered,
this being an essential feed into the Pilot Evaluation process.
The five demonstration Your Guide kiosks will continue to function until
November. Theses are based at Portcullis House, the DTi Future Focus Lab, the
Consignia Innovations Lab and at ICL and CEGY premises. Discussions are in
progress about installing a sixth kiosk in the Houses of Parliament.
The revised plan for the development of the ICLP NBS, to support the changes to
the IBM NBE, was issued to POL during February and subsequently reviewed with
POL staff. The plan, although achieving the end date required by POL, does have
increased risk associated with it, a detail that POL appear reluctant to accept.
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Programme Report Ref: PA/REP/075
Version: 3.0
Date: 07/03/2002
The NBE AIS and TIS were not agreed at the end of January as requested by
ICLP, but a position of agreement was reached with POL and IBM towards the
end of February, although there remain three areas of discussion ongoing. The late
agreement on these documents has meant that design issues are still being
encountered during the development Programme and the resolution of these may
yet impact the cost and schedule. POL accepted ICLP direction to use FTP and
FTMS, replacing Connect direct.
POL have requested further details on failover and serviced capacity and
scalability, which ICLP have suggested should form part of an end to end design
document and not part of the AIS/TIS.
The DRAFT CCNs that were prepared in January and submitted in February, to
address the Change Requests created by POL to cover the NBE changes, were
rejected by POL because the words describing Risk were considered unacceptable
to POL. At this time it is still believed that the increase in development cost will be
countered by the reduction in hardware expenditure.
The outstanding design issues, related to the revised NBE AIS and TIS, were
clarified by a statement of assumptions by ICLP during February and these
assumptions have been accepted by POL.
The changes to the reconciliation model, described in the January report, were
impacted into the DRS development schedule, as planned. However, very late
changes to the requirements for the Reconciliation Reports, which have not yet
been baselined, has meant that there remains considerable risk associated with the
delivery of the Reconciliation components of the NWB solution. The requirement
changes are still being assessed but it is believed that the scheduled end dates are
now at risk.
POL have now confirmed in writing that the NBE systems are to be placed in a
managed service environment at IBM in Warwick and Greenford. ICLP are
currently assessing the increase in cost that will be incurred in providing network
links from the Horizon environment to these two sites.
Non-financial transactions have been removed from the DRS reconciliation model,
to align with the NBE reconciliation model, and this has resulted in these
transactions being also removed from reconciliation reporting.
POL have agreed that the Horizon counter is only required to handle two lines of
free text on a receipt, rather than the twelve specified within the SRS, because the
NBE will only be generating two lines across the AIS interface. ICLP will
implement the 12 line requirement post BI3 to coincide with POL's introduction of
a mini-statement transaction.
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Programme Report Ref: PA/REP/075
Version: 3.0
Date: 07/03/2002
POL have proposed that the SRS is now shelved so that all attention can be
focused on producing the contract schedules that will govern the service
relationship. Issues relating to PIN Pads and OBC remain to be discussed and
resolved. ICLP are considering POL's proposal.
New versions of the Network Banking SDS documents covering End-to-End,
Application & Service Infrastructure enhancements have been issued for review. A
new version of the NB Message Flows & Interfaces document has also been
issued.
POL remain strong in their belief that the pricing strategy from Energis does not
stand up well to their benchmark comparison with another supplier. POL have not
revealed details of this comparison or the identity of the supplier to ICLP.
POL also remain nervous about the commercial stability of Energis as a
supplier and this situation has not been helped by the negative publicity
that Energis received late in February. In an attempt to stabilise this
situation, that affects both existing and future services, ICLP are planning
to install standby circuits provided by another network service provider.
BI2 entered the final test phases during February but Web Riposte and PIN Pad
issues have continued to impact progress. The end dates are still holding currently
but there is little leeway in the schedule to contain any further delays. The
Programme is being monitored closely by ICLP.
The BI3 plan, including the revisions to support CRs 26 and 27, has been issued to
the customer. Work has continued, during February, assessing the cost impact of
these changes, but the late agreement on the NBE AIS and TIS has meant that
movement in the technical solution continues. This situation is further complicated
by the lack of agreement between POL and ICLP with respect to the contents of
the Counter Dialogue CCD and the Reconciliation Reporting CCD. Further cost
impacts and possible date impacts are expected and POL has been informed.
ICLP have now indicated to POL that they have developed a plan that will meet
POL's requirement of installing 100% of PIN Pads by March 31* 2003.
Subsequently POL have specified further constraints on the roll out schedule and
have not yet accepted ICLP's previously stated list of assumptions. Discussions
continue to seek resolution of these differences.
A sample 200 Post Offices were visited during February to assess their ability to
have a PIN Pad installed. The view was that a revised Pay Pole could allow 90% of
outlets to be installed on the first visit.
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Version: 3.0
Date: 07/03/2002
There has been good progress in agreeing the outstanding issues related to the PIN
Pad technical specification, particularly in the area of power supply and mounting
options. Unfortunately there is a cost impact associated with some of these
decisions but it is hoped that these will be offset by a reduction in joinery costs and
electrical work required to support a successful installation.
Initial design, moulding and tooling work has been authorised by POL for the Pay
Poles.
A visit has been made to Hypercom in Sweden, during which the supplicr’s
procedures for storing and loading cryptographic keys was audited and the ICLP
test keys were generated and the loading procedure demonstrated.
The contract workshops have continued during February with progress being good
in some areas and non-existent in others, particularly with respect to discussions on
Acceptance Criteria. POL has been particularly critical at the general rate of
progress, indicating that it places the blame with ICLP.
There is a potential window when changes could be made to the Live outlet estate
in September/October 2002. POL has requested that a number of different changes
are considered and ICLP is reviewing the impact of this against current skilled
resource availability.
We received a signed copy of the EFTPoS SRS V1.0.
The EFTPoS Reconciliation design has been impacted by the two NWB CRs, both
by the direct time impact that NWB has experienced and by changing its own
design. Current planning does not deliver EFTPoS by 31/3/2003 and a review of
possible areas to de-scope is underway, although not supported by POL.
Outstanding EFTPoS issues include the Merchant Acquirer interfaces and internal
security. An AIS/TIS needs to be produced.
POL have requested ICLP review various Mails scenarios. POL has a desire for
use of Mails in 2002 and although unlikely, ICLP is investigating all possibilities.
3. ISSUES
ICLP and POL appear to be close to agreement on the price for developing the
NWB solution, but POL is still expressing concern over the network costs. It is
anticipated that the latest revisions, delivered at the end of February, may be
acceptable to POL and confirmation of this is expected in early March.
The NWB plan is under pressure due to late baselining of detailed counter details
and reconciliation reports. POL will be offered a choice of reducing the
requirement, accepting a stage delivery where some areas would be outside initial
acceptance or to delay the Programme.
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FU.
Programme Report Ref: PA/REP/075
Version: 3.0
Date: 07/03/2002
ICLP has now proposed a plan that meets POL's requirement of installing 100% of
PIN Pads by March 31* 2003, but both parties have yet to agree the assumptions
that are acceptable to underpin the project.
The Installation Strategies for PIN Pads are behind schedule as until an
implementation plan can be agreed, the approach may change. Until this is
achieved, 3" party suppliers cannot be engaged to underwrite any approach.
POL have been allowing the Programme to move forward in small steps, delaying
authorization of hardware until the last moment. It is now fast approaching the
time that the order for PIN Pads must be authorized or their delivery will be
delayed and impact the Programme.
Whilst the Post Office remains keen to implement EFTPS, there are still areas of
requirement that impact ICLP ability to achieve this and a plan that meets POLs
dates has not been produced.
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1.2
2.1
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Development Report
MONTHLY SUMMARY
NON-BANKING
EFTPOoS design work is continuing.
Investigative / analysis work to support Business Development has been undertaken.
BANKING
BI2 testing continues.
BI3 design and development work is in progress.
PROGRESS
NETWORK BANKING
BI2 (infrastructure) — testing of the release is progressing, focussing on Web Riposte
and the Data Centre migration process itself. A late (in the testing schedule) delivery of
Riposte has been needed to resolve some regression issues found in testing, and this
has introduced a late element of risk into this release. Testing of the counter upgrade
process has started, as has Riposte performance testing.
BI2 (PinPads) — the Hypercom software has now been received, so testing of the ‘key
proving utility’ with which it interfaces, has commenced, but behind schedule.
Functional testing of PinPads has just started, but is behind schedule due to non-
availability of test kit. The number of test cycles that can be completed is reduced.
BI3 (applications) — in the Applications Development Unit much effort still continues
to be spent investigating and impacting changes requested by the Post Office. These
are affecting the Data Reconciliation Service and Counter dialogues. As a result,
development work in these areas is well behind schedule and is having to be mitigated
by overlapping more of the plan activities. Development in other areas is progressing
mainly to schedule.
In the Infra-structure Development Unit work is progressing mainly to schedule, as it
is less prone to changing requirements. Work has started on development of the
security elements of the NBE simulator.
Business Integration test analysis continues to plan, still without the agreed Post Office
assistance of staff with business knowledge. Work has started on the NBE simulator.
BI3 (network)
Ad hoc design work continues in support of the NWB bid. Development has not
commenced due to lack of any contractual agreement with the Post Office.
EFTPoS SDS work still continues, although out of budget. Evaluation of the Retail
Logic (SOLVE/SE software) is ongoing, and continues to raise a number of concerns
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Date: __ 07/03/2002
over its proposed deployment. Revised development cost impacts have been prepared
but have not been submitted to the Post Office as there is no agreed implementation
plan yet due to the fluctuations in the NWB plans. No progress has been made by the
Post Office in resolving their outstanding issues.
Discussions continue on the possibility of, and potential content of, a Sept / Oct
release. Our capability to support this is being eroded even further by the additional
effort that banking and EFTPoS are consuming.
Assistance has been provided in a number of investigative studies initiated by Business
Development, namely Introduction of the EURO, Escher Mails product and a ‘Generic
AP File Server’ facility.
3. ISSUES
3.1. DEVELOPMENT
Too much change continues to be incorporated into Network Banking. This is
jeopardising our ability to meet the 11" October development completion date by
diverting resources from planned activities and introducing additional effort.
3.2. Other
The VR exercise has diverted and de-motivated resources from their work.
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Customer Service Report
MONTHLY SUMMARY
No major issues on the operational service.
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Revised Rectification Plan CCN is being submitted following a number of meetings
with POL.
HAPS has now been successfully closed down
VITAL STATISTICS
Live Base as at 28" February 2002: 17,523 Post Offices, 37,914 Counters
Cumulative Data is from 1“ December 1999 to 28" February 2002 inclusive
Monthly Data is from 1° February 2002 to 28" February 2002 inclusive
OBCS
Total number of transactions to date
Total number of transactions in February
Total value of payments to date
Total value of payments in February
1,076,853,761
51,697,826
£85,419,939,161
£3,974,797,221
EPOSS
Total number of receipts to date
Total number of payments to date
Total number of zero value transactions to date
Total number of receipts in February
Total number of payments in February
Total number of zero-value transactions in February
Total value of receipts to date
Total value of payments to date
Total value of receipts in February
Total value of payments in February
1,287,655,335
218,586,373
112,894,723
52,749,410
7,924,681
5,671,016
£ 73,644,227,072
£21,169,792,701
£ 3,036,313,231
£ 768,732,652
APS
Total number of transactions to date
Total number of transactions in February
Total value of receipts to date
Total value of receipts in February
503,260,212
28,983,571
£ 13,731,216,514
£ 978,369,414
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ICL Pathway Customer Service Report Ref: PA/REP/O75
Version: 3.0
Date: 07/03/2002
2.1
2.2
PROGRESS
OPERATIONS & SUPPORT
Data delivery SLA’s achieved with 99.99% for OBCS and 99.97% for TIP. ISDN
availability dropped slightly because of an issue on the Watford switch and numerous
calls due to bad weather.
Limited success with business continuity tests this month with failures in Girobank DR
test and postponement of HSH test due to performance issues on Man05 Powerhelp
server.
There was a further instance on 17" Feb when a null value was sent to BT. The file
was corrected and resent. A fix will be available end of the month On 21 Feb Tip
rejected all cash account records. This was e a TIP problem as their systems had
erroneously been loaded with data for the new financial year
Cash account data was delivered over the weekend 23/24 Feb
HAPS was successfully closed down on 19" Feb.
There are now 20 AP client interfaces of which 7 are new connections
INFRASTRUCTURE SERVICES
With regard to HSH telephony SLA’s there were 2 peaks of calls during 16 Feb due
to changes to AP reporting functionality as a result of the S11 release where outlets
were having difficulty in balancing. . This affected out calls engaged/abandoned greater
than 40 seconds.
System Service SLA (A priority remote) failed to achieve conformance this month due
to a number of software calls. These calls are currently being scrutinised.
Remedial payments have now been completed for last June-Sept, securing a refund to
Pathway of £10k. Recovery from ISD in respect of system service calls to Feb 2002 is
expected to be in the region of £50k.
Complaints from NBSC has risen this month to 24 principally in wring advice
category. PM’s are being asked to repay monies in suspense accounts and PM’s are
trying to blame the helpdesk advice for the shortage. On investigation none of the
claims have been justified. System issues are high this month because of the AP
reporting incidents mentioned previously
Printer complaints have increased. Because of this and some feedback from the SVR
cards we are in the process of issuing a counter news article with some ‘self-help
checks’.
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2.3
2.4
SVR response rate is in the region of 25% with the customer satisfaction level of 90%
being achieved.
All OBC changes are up to date. There were 144 changes, 21 closures in February,
107 more than allowed within contract.
The rectification plan final CCN is now being sent to PON for informal review
following a number of meetings between Pathway and PON. The pilot has now
finished and the final report is being compiled.
SECURITY MANAGEMENT
Network banking security requirements continue to be incorporated into schedules.
Most effort has been expended in respect of litigation support and DPA issues.
An internal audit of the Pinpad supplier has been carried out. This has identified a
number of issues, which need to be addressed, and which will be incorporated into the
risk register
2 audit data extractions were completed in response to POL requests.2 witness
statements were produced in support of litigation activities.
An audit of current Horizon pass issues has been undertaken prior to the introduction
of new ICL passes. An example of the new pass has been passed to POL in order to
raise awareness of the new pass amongst BSM and counter personnel
SERVICE INTRODUCTION
BI2 datacentre meetings are being held weekly and all activities are currently on
schedule with regard to release planning. The first part of the Correspondence Server
upgrade has been successfully completed. The main upgrade weekend is planned for
Easter weekend
BI3. The datacentre upgrade will take place on 4/5 Jan 03
Network Upgrade. Level 4 plan has now been tied into the Programme plan. Still
awaiting CCN approval for kit purchase
Costings have now been updated and input to the pricing and margin model.
Monthly reviews are continuing on NFR’s
SMC/MSS are causing a number of issues. Weekly reviews will continue until they
provide a better service.
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Version: 3.0
Date: 07/03/2002
2.5
2.6
STAFFING
All VR/SR matching for new roles nearing completion. Main concern is that there is no
suitable candidate for Service Introduction Manager
FINANCE
Current forecast is £45.8m against a budget of £56.3m. The 4 year forecast is £17.2m
better than budget which exceeds the £12m task
ISSUES
POL requirements for investigation support place an undue strain on existing audit
architecture
Requests for provision of witness statements and other legal support needs to be
consolidated by contractual agreement or legitimised under litigation support
arrangements for NBS
There are a number of issues from the pinpad supplier visit which must be resolved
before contract signature
There is little lime in the plan for any live fixes until BI3 or beyond. We need to look at
this further.
SMC/MSS performance and SYSMAN2 performance is not good enough and is being
reviewed.
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Organisation & Personnel Report
MONTHLY SUMMARY
PROGRESS
Appointments in February
External Recruits
Transfers In
LINKwise
Freelance
Fixed Term Contracts
Adecco Temps 0
TOTAL:
cocoons
w
Known Joiners
External Recruits
Transfers In
LINKwise
Freelance
Fixed Term Contracts
Adecco Temps
TOTAL:
moO COMN
an
February Leavers:
Permanent Staff
Freelance
Transfers Out
Linkwise assignee
Fixed term Contracts
Adecco Temps
TOTAL:
moooooH
Known Leavers
Permanent Staff
Freelance
Transfers Out
Linkwise assignee
P&PS
Fixed term Contracts
Adecco Temps
TOTAL:
meooooOoN=
S
N
Resource Management
Approval for the external recruitment activity was finally given for a number of
selected RARs, which has resulted in offers being made to 2 Oracle developers, 5
testers and a freelancer conversion. Some other roles have been filled with internal
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Date: 07/03/2002
transfers. However there has been an increase in resignations. There has been a lot of
activity with the Rationalisation Programme, and especially with the SR/VR pairing.
There is one person ‘at risk’ in Pathway and opportunities for redeployment are being
investigated, but not looking very promising.
Further planned replacement of freelancers needs to be incorporated into the
headcount forecasts for 2002/2003.
Freelancer Reduction and replacement
Update 28-Feb-02
Summary No of Heads
Freelancers in Pathway 01/2/02 56
Freelancers in Pathway 28/2/02 56
Freelancers in Pathway 01/03/02 55,
Current FC of Freelancers in Pathway on 31/03/02 37
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