1. Department of Posts Presentation to Unions Dak Bhavan 23 rd November 2010

2. Increase Market Share and Revenues Deliver Improved and Consistent Customer Service Offer New Products and Services Drive High Employee Satisfaction Radically Aid Rural Empowerment and Social Development To Be A Technology Enabled, Self Reliant Market Leader  Development of last mile infrastructure  Radical increase in access to financial protection in rural areas (e.g., RPLI, Small savings) IT Modernization Project- Phase-2 helps  Multitude of new products improved/ launched (e.g., eGovernment, Rural ICT, RPLI)  Rural customer experience re-engineered (more secure and less anxious)  Service Delivery Levels increased substantially  Enhances revenues significantly from the current state  Provides new products and services to better meet their changing needs IT Modernization Project- Phase-2 aligns with and delivers to Vision of Department of Posts  Enhanced revenues and market share through new products 2

3. IT Modernization Project- Phase-2: automation and improvement 3 The programme looks at the automation and improvement of postal and Government services through the re-engineering and build of operations and systems.

4. India Post 2012 Programme is structured into 2 tracks Track 1: Blueprint Track 2: Implementation Design  Understand current status (process, people, technology)  Conduct Field Studies  Carry out Benchmarking studies  Business Process Re-engineering  Develop To-Be processes  Develop IT Blueprint and Implementation roadmap  Prepare Detailed Project Report  Assist in preparing RFPs and Vendor Selection Programme monitoring  Monitor the programme plan, issue and risk logs and contingency plan  Assist in managing the vendors Implementation  System design  System development and implementation  Process redefinition  Change management 4 Month 1 to Month 12 Month 9 to Month 45 IT Consultant role The IT Consultant will not respond to RFPs (to ensure no conflict of interest) under this IT Project

5. Field Study Site Visits Secondary Research - Private Secondary Research - Posts India Post 2012 deliverables in Track 1 and where we are today Inception Report CCEA’s Approval obtained To-Be Processes and Technology Design Detailed Project Report Gather Facts* Detailed Future Solution Design Current State Assessment Report Conceptualisation Report Benchmarking Report Feasibility Reports – Banking, ERP & AFS Assess Current State Approval and RFPs Technology, Change Management & Implementation Plans 5 * Fact-finding was conducted with support from the Circles Request for Proposals In progress

6. 6 Post Offices to be computerised: Post Office Total Number* Offices Computerised* Offices not yet Computerised* Double Handed POsLeft over from EFC-I2,223 # Single handed Pos11,49755410,943 Extra Departmental Post Offices 1,29,497--1,29,497 The IT project would also account for the computerisation and networking of Mail offices, RMS sorting offices, Postal Stores Depots, Circle Stamps Depots and other Administrative, Operative & Accounts Offices *As on 01.04.2010 # Activity under progress

7. IT Modernization Project- Phase-2 7 Project Approval Steering Committee  Implementation of the project for computerization of Post offices, Mail offices, administrative and other offices, establishment of required IT Infrastructure, development of required software applications with an outlay of Rs.1877.2 Crore as recommended by the EFC;  Authorizing flexibility to the Steering Committee to adjust the number of offices, locations and the number and specifications of hardware and devices within the overall outlay of Rs.1877.2 Crore. Approval of CCEA obtained on:

8. 8 Overview of the Solution *Information & Communication Technology Customer Interaction Channels Setting up IT Infrastructure – Data Centre / Connectivity Mail & Retail Operations Postal Banking Postal Life Insurance HRMS & Payroll Finance & Accounts MIS Reporting / Business Intelligence / IT Security India Post Data Warehouse

9. Rural ICT Solution 9 Devices Net Book Handheld Computers Thermal Printer Biometric Scanner 2D Imager Smartcard / Mag Stripe Reader and Writer Rural ICT Solution Overview Mobile Phone

10. Banking services for the “unbanked” and improved banking services Availability of multiple channels for ease of transaction Expedited distribution of insurance policies to the customers, especially rural customers Personalised smart cards for policy holders to enable paperless transactions Electronic and secure mode of money transfer into rural India SMS confirmation of successful transfers Focal point of delivery of social security schemes of the State Reduction in fraud and errors through biometric authentication Bridging gap between urban and rural India Utility bill payments (water, electricity,) Phone top ups, rail ticket bookings Tracking of accountable articles Streamline mail process by scanning bar codes Mail Operations Postal Banking Retail Applications Money Order Transfer Rural Life Insurance Paying Social Security Schemes Technology Enabled India Post The project allows India Post to achieve the outcome of extended and efficient services to the citizens

11.  Primary Data Centre housing all transactions and data and Disaster Recovery Centre  Redundant connectivity from multiple network providers ensuring connectivity to all the offices  Fully managed, secure and centrally governed IT infrastructure 11 Infrastructure India Post 2012 solution improves India Post services by leveraging on a robust IT infrastructure  Improved mail services enhancing visibility of articles, improved scheduling, warehouse management, etc  Improved postal banking and postal life insurance services to the customers  Web enabled services, accessible through the India Post portal  Accrual based accounting and centralised payroll processing  Better decision making through robust MIS reports Applications  Rural handheld devices providing all services at the rural doorstep  Application support for MGREGS and eMO application and all the other postal, financial services on the rural device Rural ICT  Training, re-skilling, and enabling change and stakeholder engagement  Capacity building to facilitate new processes and process changes  Development of a change network to monitor and implement change management Change Management

12. DoP 2012 Estimated Costs FY10-FY12 (Sept) Rs Cr Recommended by EFC Applications 1,877.2 Rural ICT PM &CM Infrastructure 12 Integrated Modular Software Applications: Mail Operations Postal Banking Postal Insurance ERP solution for HR and Accounts MIS and Data Warehouse Customer Interaction Management (CIM), e- Commerce, Web portal Rural ICT: Devices (Handheld / Mobile devices for rural BOs) Connectivity ( Broadband, Wireless,) for both online / offline transactions Rural ICT Applications Infrastructure: Hardware ( Balance Departmental POs, Mail offices & other offices) Data Centre and Disaster Recovery Centre Networking (WAN, Wireless etc.) IT Security Program Management Change Management ( including Training for all the applications at all POs for all the Employees) Project Management & tools- PMUs in Department, Circle, Region and Division levels for implementation of the Projects The Programme is estimated to cost Rs 1,877.2 Cr and to be rolled out in the financial years 2010-11, 2011-12, 2012-13 Outsourcing for Rural ICT devices, Data centre facilities & Networking

13. India Post 2012 tentative timelines Sept 10 Oct 10 Nov 10 Dec 10 Jan 11 Feb 11 Mar 11 Apr 11 May 11 Jun 11 July 11 Aug 11 Sept 11 Oct 11 Nov 11 Dec 11 Jan 12 Feb 12 Mar 12 Apr 12 May 12 June 12 July 12 Aug 12 Postal Solution Finance Solution Rural ICT Solution Infrastructure Enablers Change Management Data Centre Rural Apps Postal, Enterprise Enablers Postal Life Insurance Advanced Mail & tracking capabilities Banking Change Management Training Rural ICT Hardware (Final Roll Out) Disaster Recovery Rural Connectivity Network Connectivity Hardware supply to Post Offices PilotRoll Out Phase-IFinal Roll Out PilotRoll Out Final PilotRoll Out Phase-IRoll Out Final PilotRoll Out Phase -I PilotRoll Out Phase-I Roll Out Final 13 Select Vendor

14. 14 Physical Enablements to be achieved: Project Timeline*Physical Enablements End of Year 2010- 2011 (March 2011) 1.All RFPs floated and vendor contracting completed 2.Data Centre and Disaster Recovery implementation commenced 3.Postal Banking solution in advance stage of implementation 4.Rural ICT Application ready for deployment 5.Rural ICT Hardware pilot rollout commenced 6.Mail, ERP, Postal Life Insurance solutions implementation commenced Mid of Year 2011-2012 (September 2011) 1.Data Centre rollout complete, disaster recovery ready for rollout 2.Network Connectivity rollout commenced, in line with application rollout 3.Postal Banking and Postal Life Insurance solutions pilots in progress 4.ERP (HR and Accounts), and Mail solutions commencing pilot phase 5.Advance mail capabilities in advance stage of implementation 6.Rural ICT devices in advance stage of phase 1 rollout (5 Circles) End of Year 2011- 2012 (March 2012) 1.Network connectivity in advance stage of rollout 2.ERP and off-the-shelf mail solutions completing phase 1 rollout (5 Circles) 3.Postal banking solution and Postal Life Insurance in advance stages of rollout (22 Circles) 4.Rural ICT devices in final rollout End of project (Year 2012-2013) (September 2012) 1.Network connectivity deployed to all required locations 2.All solutions deployed nationwide 3.Rural ICT devices deployed to 1,29,497 BOs * Subject to vendor selection, award dates and ability to meet the timelines

15. RFPs in Progress: 15 #RFP Description Issuance Type RFP# 1Rural ICT – SIRFP RFP# 2Rural ICT – HardwareEOI+RFP RFP# 3Main SI (except CBS/PLI)EOI+RFP RFP# 4CBS/PLI SIRFP RFP# 5Data CentreRFP RFP# 6Network IntegratorRFP RFP# 7HardwareRFP RFP# 8Change ManagementRFP

16. 16 Project Management- Challenges… Scope Management : 1, 55,000 POs, 22 Circles, Multiple Functional Silos, Fragmented RFPs, Integration Time Management: Project to be completed in 2years, RFPs 3 months, Implementation in phases Cost Management :Cost has to be managed within budget, Avoid cost escalation due to delay, Quality Management: Documentation : All the processes are to be fully documented Knowledge Management: To be learnt, assimilated, shared, improved upon Resource Management : Scarce, Time sensitive, optimal use Communication Management : Effective, timely, proactive Risk Management : adaptation, avoidance, mitigation

17. A holistic change management approach will be used to communicate, educate and manage the change 17

18. 18 Implementation issues Poor availability of power in many areas including rural areas o The Departmental POs are being provided with DG sets and UPS for power back up; o Rural ICT devices with low power requirements & high battery life; Connectivity in rural areas o Rural ICT devices will use the available broadband / wireless/ GPRS connectivity options (DoT projection of covering 2,42,069 VPs under Bharat Nirman PhII) o Where there is no connectivity, the proposed solution looks at off line processing; Large scale of transformation & change management, given 1,55,000 POs o Provisions have been made for capacity building, change management and training of more than 5.5 lakhs employees of the Department for the IT project. o Change management, Training and capacity building will be made through professional vendors for which RFPs are in state of readiness; Timely project Implementation o Project Management Units established in Department and Circle levels will be extended to Regions and Divisions o Professional manpower from NISG proposed for project management o The IT consultant has the responsibility for assisting in Project Monitoring

19. Role of Field Officers for the Project: (A) Setting up of the Circle/Region/Divisional PMUs Manpower planning for the PMUs Identify resources for the Project :-  The Circle PMUs  Regional PMUs  Divisional PMUs (B) Deployment of manpower in the critical POs/Mail Offices/Divisions Fresh recruited 15000 PAs to be deployed after training to these Offices Appropriate posting of System Managers in Project Offices/HPOs/Mail Offices (C) Collection/Validation of data & finalization of Divisional/Regional/Circle IT Plans Based on the implementation schedule for the project Circle/Region/Division should complete the collection/validation of data called for by PMU Division Further data on all rural BOs and delivery staff of departmental POs Finalization of Divisional/Regional/Circle IT Plan (D) Procurement of furniture/hardware/software etc for Circle/Region/Division (funds will be provided by PMU Division) 19

20. 20 Thank You Confidential to DoP. For Internal Discussion Only.