Andy Lark, cloud-accounting company Xero’s CMO, used this slide at the company’s convention in London this week to show why it’s important to adopt tech early.
— Rod Drury (@roddrury) February 15, 2015
In a blog post he explained that in the business-to-business tech market the late adopters can find themselves in a tight spot if they miss new developments.
“Having sat around harvesting revenue from their customer base the late majority one-day wake-up to face a revenue precipice. In short, the early adopters and majority reach a tipping point and start acquiring their customer base en-masse,” he said.
Xero considers itself an early adopter with its cloud-only accounting software. It claims it’s been eating away at incumbent’s market share.
“Entrepreneurs emerge from both sides presenting the late majority with an impossible force to counter – and their brand advantage and customer relationships are quickly weakened,” Lark said.
“Look at what happened to booksellers, record stores, and others. We are seeing the same in accounting where new disruptive value propositions are being built on cloud platforms like ours.
“The message is clear. Rather than wait for the late majority, fuel the high-growth early adopters and watch them grow. Who would you rather be backing – or be – the eater or the eaten.”