Lipsy Case Study

Using IT to get the hottest looks from catwalk to store in the blink of an eye

Managing Director, Jeremy Stakol, was referred to The Internet Group following a Management Buy Out (MBO) he led in May 2006. At that time, the organisation's network infrastructure was rudimentary and needed to be re-considered. "We had a server that was four or five years old, and a network of sorts. But it was extremely slow, and limited just to our head office in central London, making communication with other parts of the company very difficult."

"Back then we didn't even have the ability to share our diaries, and we had many different systems for booking the boardroom – none of which worked." One of the first steps that The Internet Group took was to create a company-wide network using Microsoft Exchange server. "Something as simple as having synchronised diaries and contacts meant we were immediately much more productive"

That was the first step on a path that has seen Lipsy place information technology at the very heart of its enterprise. "At Lipsy, we are dedicated to ensuring the hottest looks move from catwalk to store in the blink of an eye. Put simply, we try to deliver what our customers want when they want it." To meet these demands, Lipsy has invested significantly in IT and has been supported by The Internet Group from day one.

As well as organising software purchases and licences for specialist creative staff, a security audit was high on the agenda for the business following a malicious hacking incident two years before, where without back-ups in place, the company had lost valuable data. Now, back-ups are automated every day, and the network is extensively firewall-protected.

Increased connectivity, increased productivity

As Lipsy grows, more and more time is spent by members of the team on buying and design trips, especially to the Far East. Consequently, The Internet Group advised the firm to invest in Blackberry devices and a dedicated Blackberry enterprise server, meaning staff are now able to access emails from virtually anywhere on the planet. As Stakol acknowledges: "Being able to stay in contact immeasurably improves our collaboration and decision making. Now, 24 of us have Blackberrys, which has made an enormous difference to our productivity."

Similar benefits were realised through the deployment of a VPN or Virtual Private Network. It improved communication with external accounts teams and sales people, and enabled more flexible working since users can log into the Lipsy network as if they were sitting at their desks – whether they are at home or overseas.

The evolution of the Lipsy website is a further example of how the business has grown by harnessing technology. "At the time of our MBO, the website was a shambles and ran incredibly slowly. At The Internet Group's recommendation we purchased a new server and, as traffic grew, the team helped us a find a cold fusion developer to further improve the existing site. These improvements and the increased sales and traffic they delivered in turn convinced us to develop a completely new website, which was launched in August 07. We now have a online business generating in excess of £1.5m per annum in sales and have just had 4 straight record weeks (Oct '06)."

"We think of The Internet Group as our strategic IT partner"

However, the biggest and most important IT investment Lipsy has made is the integration of its supply chain software, website, accounting and fulfillment systems. And The Internet Group has been absolutely instrumental in making this happen.

"We approached The Internet Group for help and, from day one, they have acted on our behalf to pull this project together. We needed a reliable, efficient supply chain that could deliver our designs from production through to the shop floor seamlessly. This is a complex integration, bringing our website developers, finance function, fulfilment company, suppliers and stock control into one eco-system. As well as helping identify the best solution for us, Adam [Adam Maurice, Director of The Internet Group] was the cool head in those project meetings with all the different parties, and it was The Internet Group that made sure that our network, hardware and bandwidth were appropriate for our systems requirements. The Internet Group provided sensible workable solutions when we were faced with seemingly complex system issues.

All systems, aside from supply chain software (planned for early 2008) have been successfully integrated and the complete roll-out looks like being a major success."

Lipsy has recently ordered a leased line to connect the office and warehouse. "And despite spending a significant sum with BT on the supply chain software solution, they were unable to match the price and service offered by The Internet Group to set this up."

Stakol concludes by describing his relationship with The Internet Group. "I don't just think of The Internet Group as our network provider, but as our strategic IT partner. If there's any technology issue affecting the business the first person I call is The Internet Group. After the MBO, we had computers that worked and a network, albeit a slow one. I don't mind saying that at the outset we were concerned about investing significant amounts on IT, telecoms and cabling. But having ultimately followed The Internet Group's advice, I'm satisfied that the investment has definitely been worth while. We are also making productivity gains through use of blackberries and shared calendar. The system simply works. Our network has not gone down since the day we went live. The team at The Internet Group have the right technological knowledge – but most importantly understand the commercial realities and imperatives for getting things done. "

Technical Solutions provided to Lipsy

• The Internet Group supplied a Dell PowerEdge server running Microsoft Windows Server and Exchange Server
• VPN's and Leased Lines were utilised to provide connectivity between Lipsy's different sites
• The Internet Group installed PMP (Predictive Monitoring Platform) to ensure that they were alerted to any issues which could have been detrimental to the successful running of the IT department