Every now and then we see a technology that sweeps the market off its feet while rendering the previous technology almost obsolete. This kind of a technology that induces drastic change is known as disruptive technology or disruptive innovation. Xero cloud accounting bookkeeping technology is one such option before you today. Let’s demonstrate how. But first let’s discuss a bit more about disruptive technology and how it has left big names behind for ignoring certain basic facts.
Cloud as a Disruptive Technology
Now, think of your old accounting methods. Aren’t these obsolete now? If you are working with standalone software that takes care of your accounting and bookkeeping still, it is time to rethink your methods. The accounting tools available in cloud software like Xero today do much more than accounting and bookkeeping. They take a step further and act as analytical tools to keep you in sync with your market. Read on, and you will get more clarity of this idea.
Listen to Your Customers but Also Look Beyond Them
Most of the disruptive technologies have come into effect mainly because the existing giants of the industry have turned a blind eye to the obvious. While they have catered to their existing customers, they have failed to understand the aspirations of a larger market. This can be best understood by taking the case of IBM which was swept away by disruptive innovation.
IBM which was once the giant in the computer industry is just among many players today. This decline was actually lurking around the corner but IBM had just not recognized it. In its hay days, IBM was catering to its existing market of mainframe computers that consisted of government and other large organizations. While they listened to these existing customers and brought in sweeping innovations to make the mainframe computers more effective, they had completely failed to take notice of a segment of the market that demanded simpler and less expensive alternatives.
This need was eventually realized by others who started working on minicomputers. These affordable and efficient machines eventually took over the entire market compelling IBM to follow the path. But by the time IBM realized this, it was much too late.
The Lessons from IBM’s Mistakes
It is important to listen to the needs of a larger market. There is also a need to make things cheaper and handy for the general public. If IBM had a mechanism that could gauge this, it would have definitely innovated itself and been at the forefront of minicomputers. But, the company had chosen to wait until this market was profitable enough and eventually found that they were too late.
The question is, “As a business person how do I listen to my market.” The answer is simple. Introduce cloud based technology in your business. If you adopt a technology like Xero accounting and bookkeeping software, you can enable yourself to do this. The fact that Xero records everything from your proposals, sales and even customer profiles makes it an effective tool for analysis.
A few simple add-ons to Xero can get you communicating with your market through social media platforms to understand the needs of your market better. This gives you an opportunity to become the industry leader in coming up with a disruptive technology or innovation yourself. Sounds interesting; doesn’t it?
Do not make the mistake of waiting like IBM did. Get in sync with your market today with unmatched features that cloud technology offers you.