POL00028013 - Post Office Teach-In Briefing Pack presentation for Post Office Horizon IT Inquiry, by Simon Oldnall, June 2021, with notes section

Evidence on official site

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Post Office IT Inquiry
‘Teach-In Briefing Pack

Idnall, Jun

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Agenda — I 2° May 2021

1. Product Management & Usabi

+ Product management processes

+ Requirements management (Functional and Non
functional)

+ Usability - User involvement
+ User groups, UAT ete.
+ Current backlog and prioritisation

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Agenda — 25' May 2021

2. Supplier relationships

Tower model.

Fujitsu relationship.
Assurance

Roles and responsibilities

Strategy for future development?

3. Future plans (not covered due to time)

Outline of current plans for new ‘Cloud based’ solution
Vhat is planned for later this year?

hnical approach? (Off the shelf
Configuration vs customisation et

figration/business change strat

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Agenda — 9° June 2021

3. Future plans

Outline of current plans for new ‘Cloud based’ solution.

+ What is planned for later this year?
+ Technical approach? (Off the shelf?)
+ Configuration vs customisation etc.

+ Migration/business change strategy

Additional Topics to potentially cover include:
Horizon Improvement Programme
Management of bugs, errors and defects
Testing
Architecture

‘APADC scripting

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Agenda — Future Meetings

4. POL IT Team overview

+ Outline of team numbers/organisation
+ In-house/outsourced etc

5. Governance Processes

+ Development operations and release processes

+ Data

6. Architecture overview

+ Outline of the current technical landscape.

. hardware in brane

provides what?)

DR

+ Resilience a

+ Data transfer and network resili

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I. Product Management & Usability

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To address governance findings
‘outlined in the interim report a new
governance structure has been
developed for Horizon processes

The governance framework for Horizon
processes is based on 3 ‘pillars’ used
by other organisations utilising
product/service management approach
‘and has been tailored to POL context
‘and Horizon challenges

- Strategy/Demand

Architecture

- Service Delivery

Each pillar requires a governance
forum chaired by the head of each area

Product Management Processes

Horizon Governance — 3 Pillars of Product/Service Management

Horizon Service
Delivery

Change

Service Delivery

Horizon Product
Strategy

Postmaster

Demand

Horizon Risk,
Security &

Architecture

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Quick Fix Reference Data Change Process

Design Build

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RAQ process

Information
Services Data
Request

Infration Secs Data Governance Forum
“Optional and tenorry}

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Product

Management

Single Product Ownership & Accountability

All capabilities required to develop, maintain or service Horizon are grouped in one team focused on delivering
‘outcomes and value for the Postmaster. A Product Manager is the technical point of contact for the Postmasters
and the Post Office Business and is accountable for the success of Horizon over its entire life-cycle.

Clearer accountability for Horizon su

Customer-contric thinking and stronger Postmaster voice in IT and th
understanding of Postmasters needs and more action in the interest:

Improved response to Postmaster demand, change and fix v
Postmasters and the Post Office business

Single accountability for better prioritisation betw

:t roadmap for stronger alignment of product with Postmaster future needs

Improved innovation over the whole lifespan of the product,

Improved user journey and Postmaster experience

Prior to Horizon Product Management

Lack of end-to-end ownership and accountability meant:

Product decisions being made without sufficient guidance and oversight
Postmaster Horizon requests passed from team to team resulting in longer issue resolution times or unresolved issues
Increased internal interactions and effort needed to address Horizon support, changes and fixes
Limited product improvement planning or innovation due to a lack of end-to-end ownership of all of the components that make

up Horizon
With Horizon Product Management
Clearer accountability for Horizon success

Customer-centric thinking and stronger Postmaster voice in IT and the business leading to better understanding of

Postmasters needs and more action in the interests of Postmasters
Improved response to Postmaster demand, change and fix via a single point of contact for Postmasters and the Post Office

business

Single accountability for better prioritisation between issues, changes and fixes
Product roadmap for stronger alignment of product with Postmaster future needs
Improved innovation over the whole lifespan of the product
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Five ambitions underpin our vision

‘OUR AMBITIONS

(OUR COMMITMENTS

‘WE WILL ADDRESS POSTMASTER PAIN
POINTS AND OFFER AN IMPROVED USER
EXPERIENCE,

\WE WILL IMPLEMENT THE CHANGES
REQUIRED TO ADDRESS HU CONFORMANCE
[AND ASSURE POSTMASTERS THAT THE
FUNDAMENTALS ARE FIXED.

WE WILL PROVIDE POSTMASTERS WITH
ACTIONABLE INFORMATION TO SUPPORT
‘SELF-DIAGNOSIS OF DISCREPENCIES AND
‘SECURE THE PLATFORM FROM ERRORS.

‘WE WILL IMPROVE OUR OWN PROCESSES
‘AND WAYS OF WORKING TO ENSURE
POSTMASTERS RECEIVE THE BEST POSSIBLE
SERVICE.

‘WE WILL STAND UP AN EFFECTIVE RISK AND
‘CONTROLS CAPABILITY DESIGNED TO
PROACTIVELY PROTECT THE HORIZON
PLATFORM,

WHAT DOES THIS MEAN?

Address 400+ Postmaster pain points In order of priority
Proactively engage and involve Postmaster in any Horizon
change, communicating openly and honesty with Postmastrs

+ Implement changes required to address Hl conformance and
domonctrate to Postmaster that we nave xed the

foundations

Meseurabieimaravementin the identficaton and resolution

of ncidents and probiems

Greate: transparency of data and MIto Postmastersto allow
for sef-diagnos's of transactions atthe counter

Improved investigations arocess that provides Postmastere
with real-time updates onthe status oftheir case

1 Reduce fnancil discrepancies to an acceptable standard

Improveddesign, bul testing and deploymentof changes
made to Hor207

‘uly resoureed Horizon / GLO I function, working to a
leading aractee op model, processes and tole

Implement robust controls that provide confidence that
Horizons secure and data integrity maintained,
Standup an internal audit and risk management eapebily.

MEASUREMENTS

-d control
e and

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Horizon Improvement Methodology — Process & Collaboration

ch, Define

@ Empathise +

fe Ideate Q Recommend

tid Validate

Implement

ee
tas ia 23

fi

eon eo “2 8 2 @

"a>
PostMasers votttares I sueptes I aes Sapte
stateheliors @ satahldors =
aida

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User involvement to shape our plans

How we get together

+ Meeting our postmasters regularly 1
{almost every two weeks)

iT

NFSP regular catch ups

Postmaster regional event - Q/A

with around 50 postmasters 2
+ Area Manager regional events ~

Simon or(and) Sree as guests to

update postmasters
* Postmaster Co Creation 4

Workshops

‘One on One chats — Based on AAA
feedbacks and other escalations

Creating 2 pool of Postmasters for 2.

What we talk about

Open discussion on top 10 key
themes

To share views on Post Office
plans to Improve the Horizon
and also to move away from

Horizon

Feedback on the user
acceptance process for
implementing changes (Lottery,
Paystation, Settle Centraly,
Dispute Mechanism etc)

Help Post Office prioritise what
we fix

What we want from our PM’s

a

Open discussion on top 10 key
themes

To share views on Post Office
plans to improve the Horizon
2nd also to move awey from
Horizon

Feedback on the user
acceptance process for
implementing changes (Lottery,
Paystation, Settle Centrally,
Dispute Mechanism etc)

Helo Post Office prioritise what
we fix

Post Marcers

ian

Teams

e

Besinese
stakeholders

Suppins

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Horizon Pain Points / Improvements

We have gathered a list of circa 450 pain points of the Horizon system and processes taken when using the
system. The list has been gathered from the following sources:

ia

Teams

Help

Lottery

5 a4 < SARK

Adopt and Area
Training Feedback ce) ;
User Forum. ae + NFSP Meetings
stuwues Problem Management
KEUs + GLO teams e.g. Stamps team
Multiple retailer feedback “a * Product teams e.g. Lottery

¥ Paystation — card payments

Dispute mechanism
Paystation — costings only
Moneygram cancellations

Bureau refund to card
Screen Tidy Up

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Horizon Pain Points — Current Work

Lottery in general — Initial Postmaster and
multiple partner sessions have occurred

No card payment facility causes workarounds in branch

Next day accounting at month end causes accounting sues and

Prizes cause TC's
Scratchcard accounting is difficult to get right
Removal of Tupperware tin

HLDin progress
Horizon Issue Judgement issue
Pencilled in for 70.20

Review of Horizon Screens underway
Redundant buttons on screens cause confusion
Confusion use of buttons
Inconsistent terminology on screens

ia Paystation — analysis of the pain points around
=e Paystation has commenced

No card payment facility causes workarounds in branch,
Refund/reversal issues

Product value limit causes problems

Removal of Tupperware tin

[E] Moneygram - cancellations

Cancelations and refunds require call to the helpdesk
Causes accounting issues at the branch
PClissues

Bureau — refund to card
Refund to card not provided at the counter
Only allowed to refund to cash
‘Causes accounting issues at the counter
PCI issues

? Help—freezing

Investigation on-going

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Our approach to Testing

The Testing Policy aligns closely with the proposed POL Change Governance Framework and Project

Governance Model, therefore testing Quality Gates align to proposed project Stage Gates, Third Parties
Development and Testing Activities

This illustration captures what the POL Test Policy is doing to ensure
a product is de-risked before is released into production

c=
8

Having a Test
Policy it will
ensure to
POL

Product

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POL and Third Parties Testing Delivery Model

Change Management*

(@ Functionality changes
Contractual Changes @ —
e@ Product Changes sosiireees

Branch Admin Changes

Horizon Accounting Changes

Branch technology Changes
Infrastructure Changes

Impact
Jassessments

¥ Technical

O9eacood

“info provided by Post Ofice

this is jst for reference and not fom

a deep analysis

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Our current focus.....

HU — How quickly can we address the
issues?

Postmaster feedback (Various Sources)
Settle Centrally improvement

Dispute process introduction

Lottery (Automated Solutions)
Paystation — Options

Screen tidy-up

Various other initiatives

Improvements
underway........

Discrepancy Dispute Options
Horizon Help

Drop and Go

MoneyGram Cancellations
Bureau Refund to Card

Screen Tidy Up

Declare Stock Removal (TBC)
Part Payments

Post Code Checker

Paystation transactions (On Horizon — Is it possible?)

Post Office

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2. Supplier Relationships

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CONTRACT

fe)
FUJITSU
©
Computacenter
verizon’
IAGEMico Peysaton

ingenico reo

@ncr

HORIZON ELEMENTS

Service Management Service,
Security Management Serve,
(08¢ service (In. POO),
Reference Data Vanagement,
Test Rgs ete

Computacenter provides the Point of Sale
‘Terminal which the Horizon Software
operateson.

Verizon provide the Network over which
Horizon transactions are sent to both
Fujitsu 8 POL clients.

Ingenico provide the Paystation Service -
these transactions are recorded and settled
in Horizon,

Ingenico provide PED's (Pin Entry Devices)
used for customer card payment
transactions which are recorded & settled
in Horizon,

NCR provide Se-Serve Kiosks for
customers to process a discrete number of
Horizon Services.

Post Office Contracts linked to Horizon

CONTRACT TERM

Byears

4 years with an optional 142

‘8 year initial term with an option to extend
by212 months

‘5 years initial term then 12 mth rolling

3 years

{3 years initial term) + optional 142,

END DATE

31.March 2024

29,April2021 +9 months TAP *

20 May 2023 **

12 December 2023,

11 August 2022

31 March 2023

* TAP = Termination Assistance Period
** POL will shortly be exercising the 2x12 months option, taking the end date to 20 May 2025
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IT Contract Management Framework

+ This diagram sets out a small part of our
contract management framework,

+ How do we manage contract effectively

+ RACImodel ~ clearroles and
responsibilities across CM/VM and
Procurement

+ Governance meetings ~ ensuring
‘compliance and Governance across the
key ITcontracts

+ Obligations tracking - ensuring
responsibilities on POL and Supplier are
met and tracked

+ Supplier Portfolio ~ gives a clear view of
‘our key IT suppliers, management, and
links to actions for any actions needed
for contract end dates

+ Quarterly Review of Risks ~ensuring 2
link with Head of IT Risk Management
(on Contract end dates and remediating
actions

+ ITLB~monthly Dashboard highlighting
activities from the CVM Teamto the
Board

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IT Supplier Contractual Obligations Management

SIMPLE COMPLEX LEGAL ‘CONTRACT CONTRACT
‘CONTRACTUAL I } CONTRACTUAL OBLIGATIONS EXTENSIONS CHANGES
OBLIGATIONS OBLIGATIONS I I MAPPED IN WEB3 (cMn’s/ccn’s)
TRACKED IN TRACKED VIA A
WeB3 SPREADSHEET *
T T [CONFORMED INTO THE CONTRACT ANNUALLY I

REVIEWED AS PER IT SUPPLIER
GOVERNANCE

FAILURES TO MEET CONTRACTUAL
OBLIGATIONS ARE:
41. RAISED ON THE IT RISK REGISTER &
2. REPORTED ON THE IT CONTRACTUAL
BREACHES REPORT

IT CONTROLS: MNSP — C1.2 & MNSP 3.1.
* Due to limitations in Web3

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The Tower Model: IT Supplier Procurement
The programme intended to undertake five procurements; however, the Data Centre Tower was not
delivered. NB: An SISD (Atos) was however put in place — this contract ended on 31st March 2021.

‘A Data Centre (DC) A End User Computing (EUC) & Back Office (BO) & Networks (NW) & Front Office (FO)

=

Py

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3. Future Plans

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Summary

@ Tepabilities

© Platform
Direction
Strategy

@ Live

Programmes.

Classic “Tower” Outsourced Model: Fujitsu, Accenture, Verizon, Computacenter,
Microsoft, AWS, IngenicoMoridline, muttiple others

Internal IT functions: Progressive build-out of existing internal core capabilites ~
‘across GLO/Horizon, Technical Architecture, Enterprise IT Platform support,
Cybersecurity, Branch & Digital Engineering, Cloud Centre of Excellence and Data
Management

‘Clear focus on focusing on “highest differential capabilties” that make the greatest
Potential contribution to Postmaster satisfaction, sustainability and cost to serve.
Strengthening capabilties across governance, controls, agile programme delivery

‘Sustain and enhance Horizon to maximise Postmaster satisfaction by addressing
pain-points and other improvements

Replacement of Horizon with a smooth transition to our new Strategie Platform
(SPM) which will take several years to execute across 11,500 branches
‘Complementary updates/replacements to other enterprise systems (data/MI stage,
master data management, Digital, ete) over the next 3 years.

Refreshes to networking infrastructure (Verizon), compute platforms in
branches/ottices (Computacenter), internal enterprise digitisation

Payments & Banking Services: Implementation of counter P2PE, evolution of PCI-DSS
processing from core Horizon to IngenicoWorldline

Belfast Pivot to Cloud: Stand up of AWS compute stage for Horizon, migration of
branches and datacentre services from physical data-centres using cloud native
technoiogies

New Data Platform: AWS Lake Formation Ml and DA platform
‘Network 2.0: Evolution from Star - Hub & Spoke to AWS cloud based architecture
UDO: Additional carries rail in network - Amazon live across 200 branches

Summary

© >ve att our activty around

Postmaster centrielty. Co-creation

@ _ Bui out our cxtca internal iT
abilties

@ Pilot our new strategie platorm for

ste

© support Postmaster business grow

through intiatv
PuDo

ike mult

9 Postmaster Trust

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Future Plans

G The Horizon system has grown over 25 years and encompasses a broad swathe of processes from
customer sales journeys in: counter banking, mails, travel, bill payment, identity services, etc to
branch processes such as: training, knowledge, stock management, cash management, and
branch accounting.

Ohi Our research indicates that there is no one system that we can buy that will do it all without
©) significant customisation,

af, ur approach for delivery of the new platform i to begin with a simple use-case, Royal Mall pick
]) upandrop off, and expand products and processes over time. We expect to evaluate and
procure several components of the new platform as we continue to more complex use cases.

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We will replace Horizon by 2025 with a new, modern IT system

We will start replacing
Horizon in 2023 with a
modern system, which we
will design and build with
Postmasters, for
Postmasters

»

The new system is starting to be designed now. It will take time to make
sure it is a solution that will serve Postmaster needs for years to come

We already know that it will be...

It will be fast and intuitive to use, with fewer, clearer
steps to complete transactions and faster, more
accessible training than the current system

It will support simpler, more streamlined in-branch
processes, with better safeguards, checks and easier
error-correction

It will be more flexible for Postmasters to use and for
the Post Office to make updates without disruption to
Postmasters and their staff

@.

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The ‘design and build’ phase for the new system is starting now,

followed by pilots and branch migration planned for 2023-25

The new system will be our core IT Our plan for rolling out the new system
in branch for a number of years.
We want to ensure we take time to
design and build the new system,
ensuring it is well-tested with
Postmasters and matching
Postmaster needs

2023 to 2025
The new system will
start to become
available to branches,
ultimately replacing the
current system in its

2022 and 2023,
We will run pilots in branches

Of course, this means we will have
to test the new system with

Horizon for a few more years

Late 2021 different product groups and ETE
As we transition to the new system, Apilot and very small understand how it works for y
we will invest in training and support version of the new system You, ensuring we design and

every step of the way to ensure that willbe tested on atabletike ule wih Postmasters, for
‘ostmasters
you and your staff feel confident using

the new system before it goes live

device in select new stores

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SPMP will deliver the first new technology for use in new format branches in 2021, and
will migrate all users to the new platform by March 2024, allowing Horizon to be retired
Key network milestones enabled by SPMP but out of SPMP scope SPMP milestones
May 2021 an 2022 Jan 2023 Jan 2024
rs @ vevovent e@
Branch and ‘sep 21 Jan 22 Mar 22 Jul 2022 Jan 2023 ar 2024
Pe First Express! First Basics’ 400 Express Slim counter Deployment of ull Deployment
branch Go Live branch Go Live branches Live deployment begins counter across complete;
(TBC) network begins Horizon ready
I tobe retred
pec a sep 24 Dee 2021 san 2022 Jun 2022 Dec 2022
Chee Tech nastucure Tech ifastucure Protolype counter Sim counter Fullcounter
= forExpress format for Basic format available as proot available avaiable
avaliable avaliable of concept
\
ry o ry > @ avins, yvercare and enhanced support
enablementand RESIS] Jan 22 Jun 22 Sep 22 Dec 2022 A select subset of key
programme Preliminary POL High level deployment Subset slim raining POLIT op model) Fulltraining __miiestones and
millestones Topmodel _ strategy defined ‘materials ready supportdefined materials ready activities are shown
defined High level training here; tis plan i far
strategy defined trom exhaustive
‘the Express forma offers PayZone retailers the opportunity to accept pre-paid Mals (eters and parcels using new software on their PayZone device 2 Basic branches will be
able to process the majority of mals products using @ Payzone device and will be able to accept payment for Mal products
Ea

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Mapping Propositions, to use cases, to device types Ae
Hea Essential a
Essent prods
nS ¥ Government & dent
= 3X4 Basics winapi fats
Express aad vig
PayZone al es pods aad
~ Payzone products Mails products
Bi Payment Parcel pick-up & drop-off
Yas os “ote rots epee ett ete
“ \utomation
YGit cards " ccorllbiment 4 Roaming Device
ial upliftec Open — rolls
wyzone si Counter 4) ry a hy Fotisss
SelfServe gem
or F
/_—
Drop & Go + G =
Spare Capacity z=
a .
4 @.

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We have prioritised the most critical issues as part of our ‘Fast Fix’
Fast Fix activities have been driven by the need to address HlJ findings, many of which have direct implications for Postmasters.
WHAT WEHAVE DONE... WHAT IS THE IMPACT FOR POSTMASTERS.

oxtail bal tori» dpe drat mth orion eri (new macarons “Review OR Dt
‘The end-to-end process followinga standad with measurable SLAs
Invesigadon reports b oferedto Posmae'son completo of the ies,

Postmastershave access to sufiient information and guidance so that they can solf-dlagnose a discrepancy before needing to raise a dispute,

Greater visibility of branch data
stmasters and improved
dlispute mechanism

Extabizhed a feedback loop with Postmaster: to identty and address user experience imoroverent.
Redesigned the help function such that Postmastrs can access help through the screen in use (withouthaving to ext transaction to download
ence improvement the hel fe)

‘Made rapld fixes to address Postmaster pain points

suring the hep Fle no longer “eashes" Heron when downioadng)

Greater involvement ofthe Postmaster to discuss the Impact of the KEL
445 of 62 KELs have been analyzed and resolve.
Improved process and dedieated owner, wt a suppor team, to take contro of the KELs and de them to conclusion

More const ] + More considered and coordinated apo-oscn to the way changes are raised, managed and released tothe Hor'zon te-mina.
coordinated approach t + Postmaster wl see fewer defects and rework given changes are move considered and suitable impact / tk areesements undertaken,
and release management + More accoustaity withthe business change requestor to Kdentlfy impacts to Postmasters and trereoy what communications are required

+ Improved contol over access management giving Postmaster: better assurance oftheir data

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Plan on a page across all workstreams

2 maton cnngea cone

2 rat cpecng nt

2 ens mam arvana

II ratte

7 sey
a fes
ote
sacrament a

‘Audit Response ond Fast Fix

We are committed to
building the future —

for Postmasters and
with Postmasters

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We can't do this without you — you are the most trusted point of contact for
Postmasters, and their preferred way to interact with POL is through you.
So we are asking you to:

+ Get involved in the design: if you can spare an hour or two every
couple of months, we’d love to hear your thoughts:
+ We will use the Branch User Forum and regional forums to ask
questions, define priorities and test prototype solutions
+ We don't want to overwhelm these sessions with one topic, so as
‘we ramp up we will also seek further input in specific working
groups

+ Keep collecting feedback on Horizon, this is shaping the solution
design.

+ Encourage your Postmasters to join in — especially anyone who is
nervous or worried about the new system, if you can. If people want to
be involved beyond the discussions (e.g., in pilots), give them our email

+ Ask questions, make suggestions, call thinas.qut..and_hold.ys to
account. Get in touch any time on Futurel§ _ GRO

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As Is I IT Org Chart - Top Line Structure
11 November 2020

CONFIDENTIAL - NOT FOR WIDER RESHARE

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GLO Horizon Leadership Team

CONFIDENTIAL - NOT FOR WIDER RESHARE

1

Remediation &
Change Lead

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POL IT Team — Proposed Structure Overview

To deliver processes in scope of Horizon & GLO IT and deliver recommendations identified in the interim report, following
organisational structure is required:

GLO/Horizon TT Director

508 GLO prec,

PCI Botan et Testing
‘saless ge

TT)
ont

ure tom
ae

oles defined asa resutof
eM interim report

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5. Governance Processes

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Mandated Horizon IT Governance Principles

Bring together governance requirements and input from Fujitsu, Post Office and previous governance reviews

Support the stand up of critical Horizon IT governance forums aligned to emerging IT Operating Model thinking

Clearly articulate the mandatory IT governance, seeking to consolidate existing governance where possivle

Structure forums to cleariy lead up to overarching governing bodies

Ensure fewer decisions need to be made at the top, by making them lower down

Ensure solution options, instead of problems, come to the senior forums

“We're here, in person, for the people who rely on us”

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DRAFT FOR DISCUSSION PURPOSES ONLY

Horizon Governance - Forums

‘The exhibit below outlines Horizon specific forums as well as forums that will govern Horizon at levels above. The subsequent slides outline terms of
‘reference for Horizon governance forums

Strategic

Steering

Operational

Reporing & Escalation

‘Audit, Risk and Compliance Committee
Group Executive
TT Steorco

Tawide governance forums

Account Governance @D Horizon Stereo

HZ Design Authority HZ Live Service Review

suo}sn90 9 UORDIG

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DRAFT FOR DISCUSSION PURPOSES ONLY

Horizon Governance — Sub-forums

‘Additionally members of Horizon & GLO IT teams will attend existing sub-forums outlined atthe bottom of the slide

Strategic ‘Audit, Risk and Compliance Committee
Group Executive
TT steerco

wre kd eS

F-wide governance forums

‘Account Governance @D Horizon steerco

rowsignautorty © Hz Lve sevice Review

Reporing & Escalation

Operational

Commercial Review pple Fisk Review siness Impact Forum
canara Rader Programme /Release Board Problem Review
omnns lit Release Authorisation Board SI

POL Technical CAB

Eosussnusrtchs apacty Management Review

suqs990 9 UOIDIIG,

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6.Architectural Overview

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Architecture overview:

POL IT System Context and Key Data Flows

The Figure to the left shows
the system context of the
POLIT landscape showing
the key systems and key data
flows, grouped, and coloured
by function. It is not an
exhaustive view of the POLIT
but it provides a context by
which the detail of the
subsequent system
overviews and maps can be
understood.

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