Department of Posts

Presentation to Unions

Dak Bhavan23rd November 2010

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

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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.

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

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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

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 Approvalobtained

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

Feasibility Reports – Banking, ERP & AFS

AssessCurrent State

Approval and RFPs

Technology, Change Management &

Implementation Plans

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* Fact-finding was conducted with support from the Circles

Request for Proposals

In progress

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Post Offices to be computerised:

Post OfficeTotal

Number*Offices

Computerised*Offices not yet Computerised*

Double Handed POs Left over from EFC-I 2,223#

Single handed Pos 11,497 554 10,943

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

IT Modernization Project- Phase-2

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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:

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Overview of the Solution

*Information & Communication Technology

Customer Interaction Channels

Setting up IT Infrastructure – Data Centre / Connectivity

MIS Reporting / Business Intelligence / IT Security

India Post D

ata W

arehouse

Rural ICT Solution

9

De

vice

s

Net Book Handheld Computers Thermal PrinterBiometricScanner2D Imager

Smartcard / Mag StripeReader and Writer

Ru

ral I

CT

So

lutio

n O

verv

iew

Mobile Phone

• 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

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

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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

DoP 2012 Estimated Costs FY10-FY12 (Sept)Rs Cr

Recommended by EFC

Applications

1,877.2

Rural ICT

PM &CM

Infrastructure

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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

India Post 2012 tentative timelines

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

Pilot Roll Out Phase-I Final Roll Out

Pilot Roll Out Final

Pilot Roll Out Phase-I Roll Out Final

Pilot Roll Out Phase -I

Pilot Roll Out Phase-I

Roll Out Final

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Select Vendor

Select Vendor

Select Vendor

Select Vendor

Select Vendor

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Physical Enablements to be achieved:

Project Timeline* Physical Enablements

End of Year 2010-2011(March 2011)

1. All RFPs floated and vendor contracting completed2. Data Centre and Disaster Recovery implementation commenced3. Postal Banking solution in advance stage of implementation4. Rural ICT Application ready for deployment5. Rural ICT Hardware pilot rollout commenced6. Mail, ERP, Postal Life Insurance solutions implementation commenced

Mid of Year 2011-2012(September 2011)

1. Data Centre rollout complete, disaster recovery ready for rollout2. Network Connectivity rollout commenced, in line with application rollout3. Postal Banking and Postal Life Insurance solutions pilots in progress4. ERP (HR and Accounts), and Mail solutions commencing pilot phase5. Advance mail capabilities in advance stage of implementation6. 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 rollout2. 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 locations2. All solutions deployed nationwide3. Rural ICT devices deployed to 1,29,497 BOs

* Subject to vendor selection, award dates and ability to meet the timelines

RFPs in Progress:

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# RFP DescriptionIssuance

Type

RFP# 1 Rural ICT – SI RFP

RFP# 2 Rural ICT – Hardware EOI+RFP

RFP# 3 Main SI (except CBS/PLI) EOI+RFP

RFP# 4 CBS/PLI SI RFP

RFP# 5 Data Centre RFP

RFP# 6 Network Integrator RFP

RFP# 7 Hardware RFP

RFP# 8 Change Management RFP

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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

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

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Mth 1 to 12 Mth 9 - 45

Awareness & Communication

Plan

Plan Change

Enable and Transform the Organization

Build Commitment to Change

Manage Change

Capacity Building

Training Needs Framework and

Analysis

Communication and Awareness

Standard Operating Procedures

Track I

Change Management Plan

Track 2

Capacity Building Plan

Develop/Support Circle Change Management Ef fort

Role Assessment

Training

Go Live

Workshops/Seminars

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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 managemento The IT consultant has the responsibility for assisting in Project Monitoring

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)

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Thank You

Confidential to DoP. For Internal Discussion Only.