The past few years have been exceptionally tough in economic terms, and in the optical industry, as in all others, there have been some companies that have fallen by the wayside. So it is heartening to visit practice management software supplier See 20/20, which underwent a difficult period at the end of 2009, to see how a change of ownership has provided security for its staff, clients and services.
'In February 2010, my business partners and I acquired the interests of See 20/20 and now 100 per cent own everything to do with the system,' explains managing director Ian Houghton. 'The reason for the problems under the previous ownership, as far as I am aware, is that there were disagreements among investors regarding the future direction of the company leading to a pinch point in operating capital around the Christmas period in 2009.'
This ultimately led to the company going into administration for four days before Houghton and his partners purchased it through the administrators.
'We thought that See 20/20 was a fantastic product with fantastic customers,' explains Houghton. 'The staff who hadn't been paid for two months had all kept working so we knew what a great asset they were to the business. At no point did the system go down, at no point was anyone's data at risk - there was no interruption to the service whatsoever.'
Houghton stresses the firm financial position that See 20/20 now enjoys under the new ownership.
'We've been operating in the IT sector for over 20 years and we don't have any bank borrowings of any description. We've got cash balances of the order of several million pounds and we have assets on our balance sheets in excess of many tens of millions of pounds.'
As a result of that, he described See 20/20 as being on a financially robust footing.
This security has been used as a platform for improvement and change over the past year. Significant resources have been invested in support, marketing and development over the past year.
'Almost everything else at See 20/20 has changed since the new owners came in the only thing that hasn't is the name,' comments Paul Houston, sales and marketing director of See 20/20. 'From the top down the system has had a major overhaul, every aspect has been improved and streamlined.'
Key improvements include a restructuring of the database, which allows a much improved accessibility speed, and a re-launch of the dispensing (frames and contact lenses) side of the system, which has been developed in conjunction with suppliers including Essilor and Rodenstock. The system is still web-based, meaning it is accessed from anywhere through a web browser, and modular in structure, so practices can add in different elements as they require.
The vast majority of See 20/20 clients are independent opticians and Houghton says the updated system is designed to champion them.
'We've also improved the recall facility, with great results for our users,' says Houghton. 'We've added functionality that allows practices to outsource recall through us. With economies of scale we've been able to go to third parties and now can take care of the whole process for less money per letter than the cost of a first-class stamp. These are the sorts of business benefits that we are building in across the system. You've got to give independent practices something really tangible that improves their revenue coming in and their bottom line going out.'
Houghton continues: 'Everything we have done to the system since taking over as been to give independent opticians real tools to drive their business forward. The way we see it is that a PMS system should be making money for a practice rather than costing it.'
Future technology
In addition to the management and sales team, See 20/20 employs nine programmers, six dedicated support staff, three administrative personnel. The company is operating on a five-year development plan that will see it continue to change and grow as the industry changes.
'Over the next five years, optical practices - whether they want to or not - will increasingly have to come to terms with the technology age,' says Houghton. 'The companies practices need to deal with for business will increasingly demand this. For example, how long will big lens companies continue accepting orders by fax? They are going to be demanding orders be sent electronically to a specified template. That's a natural progression and this is the type of thing that our system allows practices to do easily and quickly.
'Our long-term fortunes are linked to those of independent opticians so we will continue, to work as hard as we can to support them,' he says. ?