CUSTOMERS

MAGIC MOMENTS
Metaphorix supports international expansion

Magic Moments has recently implemented Navision Financials enterprise business solution to streamline business processes and to provide fast access to up-to-date sales information – a key factor in helping the company to manage its business more effectively and to support its international expansion plans.

Magic Moments Internet plc is AIM-listed and is one of the leading Internet solutions companies in Europe, providing hosting and e-commerce solutions to thousands of businesses.  The company’s beginnings stem from its CEO’s enthusiasm for the potential of the Internet, since he set up his first web site immediately after the birth of his first son in 1995 – his own ‘magic moment’.  Starting as a web design company, its services have expanded to include scalable web hosting services, global domain names registration (over 35,000 UK registered names), market leading e-commerce solutions and total bespoke solutions.   Its core values are superior levels of customer and technical support, reliability of service and competitive pricing.

With a current market capitalisation of £55 million, it is a fast growth company, having increased its staff from only 12 at the time of its IPO in September 1999 to 75 just 10 months later.   Based in Kilburn, North London, with a subsidiary in Nottingham, Magic Moments is expanding its operations internationally, including Europe, USA and the Asia Pacific Rim.

The Problem

Before its IPO, Magic Moments was relatively small and, except for a billing system, its accounting was mainly manual.  According to Stephen Halstead, the company’s Financial Director, the billing database system was adequate for the UK but not for overseas customers, nor was it scalable.  “There was lack of integration between the billing system and our spreadsheets, so data had to be re-keyed. When taking orders, sales people had to fill in pieces of paper so there was paperwork everywhere.  In addition, the billing system did not integrate with our Unix server that delivers our web hosting services.  We, therefore, decided we needed a totally integrated software solution for use throughout the company.”

The Solution

Magic Moments looked at a number of products, including Sage Line 100, Sun Systems and Navision Financials.   After in-depth evaluation, the company selected the Navision solution, mainly for its ease of customisation, scalability and euro support - it is BASDA/Ernst & Young EMU accredited.   “We also liked the fact that Navision offers an integrated Web Shop solution, which we will be considering in the future,” says Halstead.

Ian Cowan, Managing Director of Metaphorix, adds:  “The ISP market is a rapid growth area and is something we have a vast array of knowledge in, so this was a perfect partnership.”

The company signed the contract in December 1999 with Metaphorix, the Navision Solution Centre responsible for the sale, implementation and support of the solution. Metaphorix provide tailored Navision solutions designed to deliver business benefit, one of their specialist areas being the provision of solutions to the ISP market. The integrated applications covered General Ledger, Sales & Receivables, Purchases & Payables, Inventory and Contact Management to run on a Microsoft SQL Server 7 database.   Metaphorix also produced an integrated Billing system by highly customising Navision’s Sales Order Processing system to provide the ability to capture quotes for orders.  Additionally, the solution allows for types of information specific to the Internet industry, such as domain names of hosting packages, to be added and integrates these with other systems to automate the registration and set up of domain names and services.

Fast Access to Information

The new system went live on 1 May 2000 for 35 users at Magic Moments’ head office in Kilburn.    “One of the main benefits is on the sales side where we’ve got rid of our paper-based system and streamlined sales,” says Halstead.   “Access to information has been enhanced, of course, by having a totally integrated system.  With a central database for all the company’s information, we can now integrate this with the hosting services by registering the domain names in an automated fashion, which was previously a manual process.   We’ve also integrated Navision with our web site (magic-moments.com), which enables orders over the Internet to be imported straight into Navision.   Customers can now enter orders on the web and in the future will be able to access other customer related information through the web site.”

Having real-time information on the system is extremely useful for both accounts and sales people, speeding up the closing of month end accounts.  Halstead is also impressed with how easy it is to customise tables, forms and reports.

“On the management reporting side, although it is early days yet, being able to analyse sales by sales person, product type, region or type of customer is particularly beneficial.   Having easily accessible, up-to-date sales information is crucial in helping us to effectively manage the business and to support our expansion plans.”

The future

In the immediate future Magic Moments is looking to introduce e-mail integration and a credit card payment gateway rather than having to type information into a PDQ machine.   It also aspires to providing total order fulfilment over the web.   Halstead explains: “From a customer entering an order over the web site, we’ll process that order, take the payment, register the domain name and set up their hosting services, without any manual intervention throughout the process.   This will provide us with significant operational cost benefits and enable us to be even more competitive in the marketplace.” 

Conclusion

“We are very happy with the services of Metaphorix, whose consultants have responded quickly to our requests, produced the required customisations to meet the deadlines and provided good local support,” states Halstead.  “As we roll out our physical presence overseas, Navision and Metaphorix will enable us to control our operations from one central server at our London headquarters, with access from remote locations.  We now have a solid platform for the foreseeable future from which we can develop an international business.”

Ian Cowan closed by saying, “This is an ideal implementation for us, providing complete integration of Magic Moments’ internal systems infrastructure and developing that technology to make full utilisation of the web to give true business benefit.”