Presentation is loading. Please wait.

Presentation is loading. Please wait.

In Search of New Business Models o Why Are These Models Emerging? o What Is Different? o Do They Have Something in Common? o Does Size Really Matter? (And.

Similar presentations


Presentation on theme: "In Search of New Business Models o Why Are These Models Emerging? o What Is Different? o Do They Have Something in Common? o Does Size Really Matter? (And."— Presentation transcript:

1 In Search of New Business Models o Why Are These Models Emerging? o What Is Different? o Do They Have Something in Common? o Does Size Really Matter? (And is there the right size that fits all?) o Does Pricing Pressure Create a Quality Abyss? o And much more… Localization World, 31 May - 2 June, 2005, Bonn, Germany© Logrus International Corp., 2005

2 Pressure as Stimulus to Progress Localization World, 31 May - 2 June, 2005, Bonn, Germany© Logrus International Corp., 2005 Post-2000 World: Tighter Budgets vs. Growing Localization Volumes Customers “Streamlining” Vendor Base Offshoring Spiraling and… You Either Invent or Go Down the … Food Chain

3 What Educated Customers Expect 1.Multiple (all) languages AND a complete set of hi-tech services offered as a package (one-stop shopping) 2.Competitive pricing (closer to SLV-level) 3.Consistently high quality of deliveries across all languages 4.Single point of contact 5.Centralized responsibility for multilingual localization projects 6.Organizational transparency and clear, well-defined structure 7.Experience and proven track of record for most languages 8.Flexibility and scalability 9.Reputable and recognizable name or names behind each proposal Localization World, 31 May - 2 June, 2005, Bonn, Germany© Logrus International Corp., 2005 The whole nine yards…

4 What Creative Vendors Thought Traditional Approach (Choose any 2 criteria out of 3: Good Quality, Low Rates, On Schedule) is obsolete… Presumably you might choose any 3 Size limitations are no longer so strict Nature has already staged a “Size Matters” experiment… Internet and Workflow Automation just drop the curtain Offshoring should become an integral part of it Occam’s Axe: Wipe out redundant communication, managerial & pricing layers, etc. Localization World, 31 May - 2 June, 2005, Bonn, Germany© Logrus International Corp., 2005

5 Brotherhoods of the Language Ring Allied groups of independent companies located in various countries: Unified storefront Special agreements Acting as a single entity Roles based on both native languages and/or special skills or location; Non-competing Most include one or more companies located in offshore areas Most offer complete solutions and a full set of services Localization World, 31 May - 2 June, 2005, Bonn, Germany© Logrus International Corp., 2005

6 Why Now? Seriously improved communications & workflow automation Tighter, leaner, better-defined organization Active use of offshoring Customers needed an alternative Customers have become comfortable with the concept Localization World, 31 May - 2 June, 2005, Bonn, Germany© Logrus International Corp., 2005

7 B6: Localization World, 31 May - 2 June, 2005, Bonn, Germany Localization World, 31 May - 2 June, 2005, Bonn, Germany© Logrus International Corp., 2005

8 Does Size Matter? B6 - Localization World Bonn 2005 Matthias Caesar Locatech GmbH – LCJ EEIG

9 Does size matter?

10 The answer is Yes!

11 The answer is No!

12 Size = Position

13 Reasons Defines our positioning => Market –Global offering –Integration –Deployment of Technology Sets our offering –Where? –What? –How?

14 Solution I Small SLV / MLV –Global Presence –Integration –Service Offering –Technology –Flexibility –Cost Fit - ( ) CHALLENGE: Shrinking market!

15 Solution II large Global Player –Global Presence –Integration –Service Offering –Technology –Flexibility –Cost Fit ( ) - ( ) CHALLENGE: Flexible Cost Structure!

16 Solution III Medium-size Alliance –Global Presence –Integration –Service Offering –Technology –Flexibility –Cost Fit ( ) CHALLENGE: Integration!

17 The answer is Yes!

18 The answer is No!

19 B6: Localization World, 31 May - 2 June, 2005, Bonn, Germany Localization World, 31 May - 2 June, 2005, Bonn, Germany© Logrus International Corp., 2005

20 B6: In search of new business models milengo Adam Blau

21 Creating Production Efficiencies Subcontracting models are removed –Greater resource management and transparency. –Alliance offices communicate directly with client’s worldwide offices or validating team. Scale, centralize and organize internal resources –Member’s specialized skills are optimized to best meet the client’s relationship requirements. –Centralization of non-linguistic services at low-cost offices. –All work performed in the same company, coordinated by the alliance global project manager.

22 Formation of “complex” relationships Alliances can adapt and respond to client’s multifaceted communication, linguistic and technological requirements and wishes. Unified production workflow. Unified technology platforms. In-country teams collaboratively working together. Creating Production Efficiencies

23 Alliance members are not rotated or easily replaced. As a result: Localization workflow protocol designed and improved with each further project. Project manager and alliance members develop in-depth insight into the client’s processes. Potential improvements are discussed internally as how best to leverage alliance strengths in order to benefit the client relationship. Creating Learning Efficiencies

24 Non-competitive collaboration –Draw on a wealth of knowledge, skills and experience to raise the overall performance level. Where one member excels in engineering, the other compliments in DTP insights. Best-step practices and new ideas are shared between alliance members to benefit its clients. Training and assistance is shared between members of the alliance Creating Learning Efficiencies

25 B6: Localization World, 31 May - 2 June, 2005, Bonn, Germany Localization World, 31 May - 2 June, 2005, Bonn, Germany© Logrus International Corp., 2005

26 Pricing: Alliances vs. MLVs Common: Rates for Various Languages are NOT Uniform (vs. weighted SLV levels) –“Home” vs. Outsourced Different: Models –Alliance, Translation:SLV Base + PM –Alliance, Technical: Offshore Base [+ PM ] –MLV, Translation:Base + PM ± Special Δ –MLV, Technical:Base (May be Offshore) + PM Localization World, 31 May - 2 June, 2005, Bonn, Germany© Logrus International Corp., 2005

27 Pricing: Pressed Against the Wall MLVs: –Negotiate within pre-defined ranges –Reduce rates on SOME languages artificially –Find cheaper vendors or freelancers –Quit Alliances: –Negotiate within the range agreed internally –Re-negotiate with particular members –Reduce PM Fee to the limit (Neither cheap workarounds, nor freelancers are typically used) –Quit Localization World, 31 May - 2 June, 2005, Bonn, Germany© Logrus International Corp., 2005

28 How Much LOC for Your BUCK? MLVs: PM + Overhead >= 30% Alliances: PM ~10% Localization Work (MLV) Localization Work (Alliance) Localization Work Management & Overhead Localization World, 31 May - 2 June, 2005, Bonn, Germany© Logrus International Corp., 2005

29 Alliances and Economy Airlines (1) Tight competition and worsening market conditions -> Economy Airlines Concessions: Localization World, 31 May - 2 June, 2005, Bonn, Germany© Logrus International Corp., 2005 Longer transfers, remote airports Offshore locations, remote time zones Fewer guarantees (late arrivals, connecting flights, limited financial liability, …) Fewer guarantees (late deliveries, limited financial liability,...) DOESN’T mean lower quality services! More legs to the destinationNot all people speaking good English Minimized flight services (fewer flight attendants, no free lunch) Less extensive customer services (fewer account managers, etc.)

30 Alliances and Economy Airlines (2) Good Things: –You typically pay less! –Tighter, streamlined organization –High motivation Alliances are just taking off! Localization World, 31 May - 2 June, 2005, Bonn, Germany© Logrus International Corp., 2005

31 Thank You Very Much! B6: Localization World, 31 May - 2 June, 2005, Bonn, Germany Localization World, 31 May - 2 June, 2005, Bonn, Germany© Logrus International Corp., 2005


Download ppt "In Search of New Business Models o Why Are These Models Emerging? o What Is Different? o Do They Have Something in Common? o Does Size Really Matter? (And."

Similar presentations


Ads by Google