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Three-Quarters Not Receiving Key Performance Indicator (KPI) Information
Needed to Deliver e-Government

London, 17 June 2003. As the 2005 deadline for the delivery of
e-Government approaches, independent research released today by leading
specialist managed solutions company Netstore, reveals that information
technology is not enabling the provision of all the necessary
performance information relating to key financial and non-financial
metrics in up to 75% of local authorities. [1]
Where performance information is currently delivered, it is not provided
in a format that enables Local Authorities to quickly identify processes
that could be changed to improve performance against Key Performance
Indicators (KPI's).

The survey of 50 Finance Directors at Local Authorities across the UK
suggests that more than half the respondents do not currently receive
all the financial information they require. The percentage is even
higher when it comes to the provision of non-financial information (e.g.
environment, libraries and leisure information).

Key research findings are:

· 46% of Finance Directors say that 'a lot' or 'all' of their
management decisions are influenced by KPI's

· 68% said the performance information they did receive was not
delivered in a format that enabled them to identify quickly processes
that could be changed to improve performance against these KPIs

· 82% of the respondents claim the management decisions of Local
Authority CEOs and assistant CEOs are 'quite', 'very' or 'totally'
influenced by KPIs

· 96% of respondents said the IT procurement model within Local
Authorities has changed, or is changing, from a department-by-department
approach to centralised purchasing

Centralised purchasing is key in order to consolidate management
information from different systems across local authorities that will
make access to KPI information quicker and more cost-effective. One of
the most significant findings of the research was that the Financial
Directors within local government are not getting the financial and
non-financial KPI's that they require.

The findings reveal:

· 52% of respondents said they did not receive the all the key
financial information they require - the figure rose to 74% when it came
to the provision of key non-financial information

· The main areas where access to the right information proves to
be difficult are in resource/ administration management (where 60% of
respondents said they had problems); environment (44%) and libraries
(40%). In addition, almost a quarter of respondents said they had
difficulty obtaining performance information in relation to benefits

· 88% of those not receiving the information they require blame
past under- investment in IT including a lack of training and concise
understanding of the software

· 73% plan to change or are changing the way they source, manage
and monitor performance information in the next 12 months

Where the use of IT had delivered positive benefits within local
authorities, the research indicates that these benefits extend beyond
basic processes to staff satisfaction. Two-thirds (66%) said that staff
felt they were more productive; and (60%) said staff felt they offered a
better service to citizens.

"The current delivery model for IT clearly isn't supporting Local
Authorities' aims of delivering e-government or, specifically, achieving
KPI targets," said Paul Barry-Walsh, Chairman of Netstore. "The reality
is, however, that these organisations simply don't have the funds to
implement large scale changes in their IT systems - what they need are
technology partners that can provide cost-effective, highly targeted
solutions that will help them access, manage and measure performance
information quickly and easily. They need control of and flexibility of
the IT software applications, but without the hassle and cost of running
them themselves, so that they can get easy and fast access to the
information even as they restructure and/or their needs change. This is
the model Netstore currently provides for our customers".

The research, carried out on behalf of Netstore by research company
Vanson Bourne during May 2003, comprised interviews with 50 Finance
Directors at Local Authorities across the UK.


About Netstore

Founded in 1996, Netstore is the UK's leading specialist managed
application solutions provider.

Netstore sells direct to organisations in the public and industry
sectors. Customers include Northern Rock, BT, Housing Corporation,
Companies House, Liverpool City Council; London Boroughs of Camden,
Islington and Hammersmith and Fulham; the Royal Borough of Kingston,
Scottish Equitable, Cisco Systems, and Northants Police.

Netstore enables organisations to gain control and flexibility of their
information systems through the managed delivery of business critical
applications as a service. These enterprise strength services encompass
financial solutions, e-procurement, business intelligence,
enterprise-wide messaging, wireless, storage solutions, disaster
recovery and managed security services - all underpinned by strategic

Netstore is headquartered in Bracknell, UK, with operations in London,
Gateshead and Cambridge. Netstore is one of only 67 organisations in the
UK to have achieved BS7799 certification, demonstrating compliance with
the British Standard for Information Security Management. Netstore is
quoted on the London Stock Exchange (NES).

For more information about Netstore, please visit:

For further information please contact:

Sarah Rowlands

Netstore plc

Tel: +44 (0) 1344 444 324

Fax: +44 (0) 1344 441 247

Giles Fraser or Hannah Middleton


Tel: +44 (0) 7386 6200

Fax: +44 (0) 7386 6206

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