Two years ago, Port Moresby-based technology company, Kumulsoft, branched out into writing tailored software products for local companies and government departments. Now they have six major clients on the books, as well as a number of law firms. Partner Marsh Narewec explains their success to Business Advantage PNG.
Kumulsoft’s Marsh Narewec
‘Our original plan, which began in 2007, was to develop a fixed assets [computer] program—which allows companies and government departments, institutions and agencies to keep track of their fixed assets,’ says Marsh Narewec.
Narewec was a programmer with Bank South Pacific at the time. His close family friend, Paul Muingnepe, was a Fixed Assets Officer with the University of PNG. The initial plan was to exploit an unserviced niche in the market.
Monitoring assets
Muingnepe saw the need for a database system that would assist him to perform his role effectively at UPNG to prevent fraud, abuse and misuse of fixed assets that were being purchased using government funds.
He got Narewec interested and Narewec started developing the software.
They formed their own company in 2009, quit their jobs and began Kumulsoft in 2010.
‘We started by renting an office space at Five Mile in Port Moresby,’ says Narewec.
‘Then we moved to the Steamships compound in Hohola, and this is where we operate now.’
Unfortunately, the partners were not able to secure enough clients to continue the development of the fixed assets management software at the time.
‘We tried a bank for help but we were not able to convince them, so we got stuck into doing other software development projects and providing other IT services,’ says Narewec.
New direction
They began offering email and website hosting services as well as customised software and databases to their clients, which include PNG Power Limited and Guadalcanal Plains Palm Oil Ltd in Honiara.
‘We also want to produce a simple Enterprise Resource Planning (ERP) system for local SMEs that would assist them to run their business effectively and make it easy for them to fulfil their statutory obligations’
Then, in 2014, after attending an Australian Business Volunteers program, the pair realised that living project-to-project was getting them nowhere. So they revived the fixed assets management systems concept and began developing a legal practice billing system called Success.
‘Our fixed asset management system is currently being used by PNG Customs, the University of Goroka, the East New Britain Provincial Administration and Western Highlands Health Authority,’ says Narewec.
‘Our legal practice billing system is currently being used by seven law firms, including Twivey Lawyers, Bradshaw Lawyers, and Greg Manda Lawyers.’
The company has a staff of five concentrating on providing IT services. Kumulsoft outsources some of its coding project work to freelancers in PNG and overseas.
Future plans
‘I would not say that we are successful—yet—but we have managed to survive in the business against all odds, for almost six years now,’ notes Narewec.
‘One of our aims over the next three years is to sign up the provincial governments, state institutions, district development authorities, national departments and agencies to use our fixed assets management system.
Kumulsoft’s Paul Muingnepe.
‘We believe this software will help them take control of their recurrent asset expenditure and manage their physical assets in the full asset management life cycle—from acquisition, to allocation and disposal—in an effective, transparent and accountable manner.
‘We also want to produce a simple Enterprise Resource Planning (ERP) system for local SMEs that would assist them to run their business effectively and make it easy for them to fulfil their statutory obligations with the Internal Revenue Commission. This will include modules such as payroll and accounting.’
The power of data
Narewec says nearly all SMEs and government departments in PNG know that database systems can be used to effectively manage their information. It can lead to vastly improved decision-making processes.
‘Some local SMEs are not using very vital modern day internet-based business solutions like email, websites and accounting software, because of the cost of the internet.’
The biggest challenge for these SMEs and departments, he says, is to actually get to use their database systems and see results in the management of their organisations.
Here, training is important. Having local, in-country support for their system is also paramount, he says.
IT for business
Narewec praises PNG’s corporate sector and some government departments for embracing ICT effectively. He singles out the PNG Investment Promotion Authority as a good example of an organisation using IT to help businesses start up in PNG.
One drawback for local SMEs, however, is the cost of the internet, he says (PNG tops the list of Pacific countries in internet costs).
‘Some local SMEs are not using very vital modern day internet-based business solutions like email, websites and accounting software, because of the cost of the internet.’
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