Pastel celebrates 18 years of successful evolution

In an industry in which changes in technologies and markets fuel one another in an often chaotic evolution - challenging the sustainability and profitability of even the global giants - South African accounting software company, Softline Pastel, will this year celebrate 18 years of steady, purposeful growth.

Current growth is at 35% per annum, with more than 2 000 accounting and 500 payroll packages being sold every month.

Managing director Steven Cohen attributes Pastel`s success to the fact that it has always understood the small and medium enterprise (SME) space: "The psychologies and paradigms that operate in the SME sector are quite specific and we`ve never deviated from addressing them in the most appropriate way."

This focus has paid off, with nine out of 10 accountants serving the South African SME market recommending Pastel, and more than 180 000 SMEs running their businesses on the software - in 52 countries on five continents.

Cohen is proudest of the fact that the company has successfully ridden the relentless waves of change in the IT industry.

"We`ve seen the market shift radically over the years, since the introduction of the IBM personal computer made it affordable for small companies to computerise their businesses. At that time, that meant moving your accounting and bookkeeping from a manual format to a computerised one and, consequently, achieving better efficiency and accuracy.

"Sales of accounting solutions were easy and reactive. There was a lot of competition but there were also a lot of customers.

"Then, both the software and the customer began to mature at an ever-increasing speed. With their books getting done accurately and on time, customers wanted to be more proactive in the way they ran their businesses. And accounting software began to evolve to involve not just the bookkeeper and the accountant, but everyone else in the organisation.

"Customer relationship management, enterprise resource planning, serial number tracking, warehousing, business intelligence and other niche applications appeared to help the move from a purely historical, accounting-based approach to a business process methodology for running a business.

"Resellers had to learn to help their customers achieve operational as well as administrative efficiencies - or fall by the wayside.

"But at Pastel we`ve always listened to what our customers and channel partners wanted - on the principle that they`re the ones who see the gaps between what the product can do and what they need done in their businesses.

"We also created a special Accountants` Forum, because it`s the accountants who give their clients business advice on which the software must deliver.

"All of which has enabled us to stay in step with market needs through all the technology changes."

That process has included rewriting Pastel products on to the latest Microsoft standards.

"But products are only part of what makes us successful," Cohen says. "We`re also very focused on continuous training and updating of our channel partners. That`s no mean task, considering we have over 3 200 in South Africa and more than 80 internationally - so we do roadshows on an almost seamless cycle!

"Also, our training is not limited to product information. We pass on our business experience to our channel partners, which in turn enables them to help their customers run their businesses better. So we`re proactively helping to mature the business skills of SMEs.

"In fact, everything we do, including investing in the latest technology ourselves in order to service our customers in the ways they prefer, and working with provincial governments to give school leavers and university graduates Pastel qualifications, is geared to being a true partner to our customers. We take them beyond accounting."

In order to accommodate further growth without losing the efficiency of its service to customers, Pastel moved its headquarters in August to bigger premises that include 12 training rooms, an auditorium that seats 165, a convenience store and a restaurant for staff, and the latest technology platforms on which to run its comprehensive product development and online customer support initiatives.