POL00460584 - POL: Horizon Operations Overview.

Evidence on official site

POL00460584
POL00460584

Horizon Operations Overview

23 May 2024

POL00460584
POL00460584

What is the purpose of this pack?
This presentation provides an overview of the workstreams within the Horizon IT Operations portfolio.

We're going to cover the following:

Explain activities and Summarise achievements and Outline objectives moving
services within Horizon milestones achieved across forward as part of POL’s
IT Operations these workstreams longer term IT strategy

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POL00460584

What are we going to cover?

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POL00460584

Horizon & Fujitsu

The Horizon Agreement ensures Fujitsu support and maintain the system as per their contractual
obligations. Annual Horizon running costs are approx. £38 million with the Agreement currently
extended until March 2025 (including Data Centre & Test Infrastructure services).

From an operational perspective, the following mechanisms monitor Horizon services Fujitsu provide to POL.

Horizon IT Service Fujitsu Governance Meetings

Embedding a robust meeting framework to assess
service performance

Problem Review open problem records, newly created problem records,

Review and problems to be closed.

Defect Review Review new Horizon defects, and progress on resolving
cxisting defects.

Capacity apacity reports with Fujtsu to identify any
Review corrective actions

Service s, SLA results, change
Review management, incident management.

csl Review Fujitsu Continual Service Improvement initiatives

Horizon & Fujitsu Service Management

Weekly

Weekly

Monthly

Monthly

Monthly

Fujitsu Service Level Target Performance

Measuring real-time branch service performance —

for past 12 months:

Service Level

Central network, & sales database unavailable in more
than 10% of branches

ETU, DVLA, PAF, APOP services unavailable in more
than 10% of branches
Average time for a Basket Settlement {time in data
centre only)
Maximum time for a Basket Settlement (time in data
centre only)

Target

<= 4 core hours per
calendar year

<= 15 core hours
<=15 seconds

<= 6.5 seconds

POL Fujitsu Satisfaction Survey (monthly)

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POL00460584

Inviting POL Teams who work with Fujitsu to
provide feedback on service

AT

unennan
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POL00460584

Fujitsu Service Extension & Exit

From a commercial perspective, we need to balance challenging Fujitsu as part of standard Contract
Management assurance while working in partnership to smoothly exit services.

To support this, POL are standing up a team with Fujitsu to assess continuation of Fujitsu / Horizon service
until 2030. This will evaluate opportunities to remove or reduce Fujitsu reliance ahead of this time whilst also
maintaining the IT infrastructure landscape needed to support an effective transition of service.

Service
Reduce and remove services Fujitsu provide to POL
Roadmap
Technology

Review end of service life IT infrastructure components to support transition of service

Roadmap
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IRRELEVANT
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Retail Products & Platforms

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POL00460584

Retail Products & Platforms - Performance

Some 14 million Banking and 9 million Payment counter transactions are completed monthly across
the network — our focus is to ensure we continue providing an effective service to enable these product
journeys, supported by the right infrastructure, in a changing and competitive landscape.

We're doing this in the following ways:

Enhancing service portfolio Maintaining IT infrastructure Preparing for the future

*  Transitioned Evri & DHL PUDO carriers + Upgraded SSKs ready for circulation of + Introduced NBIT Banking Services as
successfully into IT service new King Charles bank notes part of latest release, with support from
Branch IT Service Management.

* Integrated Monzo banking services * Piloted PEDs successfully with positive
across branch network Postmaster feedback
* Implemented 2D barcode scanning for * Completed Phase 1 migration to move

home shopping returns & online postage routes from PODG to POETS

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POL00460584

Retail Products & Platforms — Priorities

As we move forward, our focus for FY 2024 / 2025 is on the following objectives:

Activity Challenges

Infrastructure

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POL00460584

DXC & IT Service Desk Peformance

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POL00460584

DXC & IT Service Desk Performance -— April 2024

DXC have outperformed all Engineering
(hardware) SLAs for last 3 months.

4,173 incidents received by IT Service Desk
in April (3,245 Branch and 675 Colleagues).

Average call wait time was 53 seconds.
Epson Printers and Pin Pads most common

reasons to log incidents with 29% and 41%
fixed respectively on first contact.
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POL00460584

Postmaster IT Working Group

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POL00460584

Postmaster IT Working Group

The Postmaster IT Working Group has enabled Postmasters to play an
active role in how POL makes changes to IT.

Over 300 Postmasters now form part of the group.

Horizon Improvements - such as Drop & Go, E-Top Up and Fast Cash - have
been successfully delivered from feedback and input of the group.

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POL00460584

What’s our approach?

Postmaster IT Postmaster User Acceptance Postmaster & Area Postmaster
Working Group NFSP Familiarisation Testing Manager Comms Support Materials
Develop solution Engage NFSP reps Enable Postmastersto Test solution with Raise Postmaster Produce FAQs &

design with team on see solution and Postmasters basedon awareness through support tools e.g.
Postmasters proposed changes share feedback real life scenarios BAU comms channels video to reinforce
awareness

Working in partnership with Postmasters
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POL00460584

Horizon Defects Management

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What improvements have been made to Defect Management?

More robust testing and governance forms a key component to how Horizon system defects are managed.

Defect Definitions Defect Tooling
Consistently identify Leverage consistent tools —
system defects by severity ServiceNow & Jira — to log,
and business impact track and test defects until
resolution

Defect Triage & Thresholds
Bi-weekly meeting with
Fujitsu to discuss system

defects by severity with set

of limits on accepted defect
volumes during testing

Defect Review Forum
Weekly session run by POL
with Suppliers and
stakeholders to monitor
defects status

Defect Criticality
Postmasters and POL
stakeholders assess any
new defect impact to build
understanding and
prioritise urgency for
resolution

Defect Comms
Postmaster facing Branch
Hub & Knowledge Article

issued within 2 day SLA

once defect raised with
status of all current defects

available on Branch Hub

These improvements give Post Office confidence that when Horizon data and system issues are identified, the
right processes and structures are in place to resolve these more quickly.

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POL00460584

Defect Management - latest status

More transparent communications ensures Postmasters are kept informed of known Defects with the status of
these published on Branch Hub.

Current Open Horizon Problems

Horizon Problem Category Open Horizon Closed Problems since logging started on
Problems as at Service Now in September 2020
01/05/2024
Potential for Financial Impact 4 35)
Poor Experience 28 195

(No potential for financial impact)

Open Horizon Problem Status (with potential to cause financial impact)

Under investigation 1

Fix understood - being developed 2

Fix developed - waiting deployment in scheduled release
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POL00460584

Horizon Remediation Programme

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POL00460584

Horizon Remediation Programme

The Programme was established in 2021 to address the outcomes of the Horizon Issues Judgement (HIJ),
helping re-build Postmaster trust and confidence in the system.

Over the past 3 years, the Programme has achieved a series of important milestones to improve Horizon,
mitigate HIJ findings and ensure the system remains sustainable whilst Post Office continues to use it.

oo R S. ts
147 = 200 Suu 64S

Horizon more

Userand Data @?™@ = Controlsimplemented Improvements intuitive to use
: A endorsed by Meigs, ;
Journeys produced in ServiceNow > when
HDRF aP  transa

Over

300 Historical defects ©
closed with improved — 4
defect management Branches live with
Postmasters in poeitinlior sense Redundant co AppDynamics
SRIARR IT working secalcon Product buttons Aieccuesrn vl
Group removed from bs a ‘lot
Horizon Counters [elle)

20%  250Q  90,000+ 8)...

F - Horizon improvements
Branches participated in Branch eed Horizon SMART ID to Drop & Go, E-Top
Hub on Horizon pilot with accounts reviewed Up & Fast Cash
solution now live across network
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POL00460584

Horizon Remediation Programme —- what’s next?

As the Programme now moves into Horizon IT BAU Operations, the following projects remain in flight.

Activity Timeline

Fast Cash Reversals

2 Enable ability to confirm method of payment so Fast Cash transactions can be reversed on June
a the counter
o£
No
=> zs
S } Recovery Script Orders
£ Further optimise Recovery Scripts so processes perform recovery in the correct sequence e.g August

Bureau Orders

Use one consistent source of
Automate Rem In of Secure

Auto Stock
Rem In

POL Secure Stock data for A 1 - Reinforce barcode scanning .
i Stock into Horizon so it is no A July (Pilot)
more accurate view of longer done manuall to sell Secure Stock in branch
products held in branch 9 y
<q Z Transition control and execution of the Audit Record Query (ARQ) process and Audit Storage March 2025
g ” Area Network (SAN) into the POL domain
<
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POL00460584

Questions?