From Cobblers to Conductors Paula Shannon CSO, SVP, General Manager Lionbridge

The Cobbler‘s Song I sit and cobble at slippers and shoon From the rise of sun to the set of moon Cobble and cobble, as best I may Cobble all night and cobble all day And I sing as I cobble this doleful lay…

The Cobbler‘s Song The stouter I cobble, the less I earn For the soles ne’er crack, nor the uppers turn The better my work, the less my pay But work can only be done one way

…and Conductors

The Mozart Effect The issue service industries face is The Mozart Effect, as described by William Baumol, an economist at New York University* As noted essayist and author, James Surowiecki puts it, “When Mozart composed his String Quintet in G Minor (K. 516) in 1787, you needed five people to perform it—two violinists, two violists and a cellist. Today, you still need five people, and, unless they play really fast, they take about as long to perform it as musicians did two centuries ago. So much for progress.” *Performing Arts: the Economic Dilemma (1966), Baumol and Bowen

Baumol’s “Cost Disease” In a range of businesses, such as the car manufacturing sector and the retail sector, workers are continually getting more productive due to technological innovations to their tools and equipment. In contrast, in some labor-intensive sectors that rely heavily on human interaction or activities, such as nursing, education, or the performing arts there is little or no growth in productivity over time. As with the Mozart string quartet example, it takes nurses the same amount of time to change a bandage, or college professors the same amount of time to mark an essay, in 2006 as it did in 1966.

Are We Cobblers or Conductors? labor-intensive sectors that rely heavily on human interaction or activities, such as education, or the performing arts where there is little or no growth in productivity over time. Industry Group B workers are continually getting more productive due to technological innovations to their tools and equipment. Industry Group A The Translation Industry Exhibits Elements of BOTH!

Airlines, Car Wash, even Lawn Care: Differentiated Services and Pricing Models

What About Pricing Models? We talk about different types of content, but the price is remains, on average, .22 USD cents per word?* Cheeseburger Cheeseburger, Cheeseburger. No Coke, Pepsi *Common Sense Advisory

Customer Expectations? QUALITY MEANS Industry Standards? Customer Expectations? “My requirements have been met” “Staying on message and on brand” “Avoiding adverse outcomes” “That LSPs use the resources I dictate” “Minimizing headaches on our end” “Consistency I can trust”

Most Meaningful KPIs and SLAs are Specific to the Client and Content

Let’s Get a Few Definitions Straight

Shift Happens - Growth is Migrating to Developing Nations Reaching 1 Billion Users requires +/- 127 languages Connecting 5 Billion Users will necessitate more than 1,000 languages Internet Top Ten Languages English Chinese Spanish Japanese German French Portugese Korean Italian Arabic Rest of World Languages 329 159 89 1,400,000,000 86 1,200,000,000 59 1,000,000,000 800,000,000 56 600,000,000 40 400,000,000 200,000,000 34 31 Chinese Russian Arabic Hindi English Spanish Bengali Portuguese Japanese German French Korean Javanese Telugu Marathi Vietnamese Tamil Italian Turkish Urdu Punjabi Ukrainian Gujarati Thai Polish Malayalam Oriya Burmese Azerbaijani Farsi Sunda Pashto Romanian Bhojpuri Hausa Maithili Malay Serbo-Croatian Awadhi Uzbek Yoruba Dutch Sindh Igbo Amharic Oromo Indonesian Tagalog Nepali Assamese Saraiki Cebuano Hungarian Chittagonian Zhuang Shona Madura Sinhala Marwari Magahi Haryanyi Greek Czech Chhattisgarhi Fulfulde Deccan Malagasy Belarusan Kannada 28 203 50 100 150 200 250 300 350 Millions of Users © Lionbridge 2008

Plotting Quality and Value of Content Advertising & Collateral Publication Quality Customer Education & Service Product Information Enpocket Mobile Ads Community Generated Content eCommerce FAQ’s User Interface Informational Customer Care After Sales Support Higher Value Lower Value

Varied Content Mandates Differentiated Approaches Transaction Cost Marketing Content Streaming Web Content High Product Updates and Training Materials Product, Technical Doc and online Help Solution Efficiency Demands I18N Initial Product Localization Low Translation Cost 1/year Marketable Shelf Life of Content 1/hour

“…But Work Can Only Be Done One Way” Or Can It?

Varied Service Levels – An Example Type A: Basic The following rates are all-inclusive. Rates include all file preparation, translation & editing, recording & project management – Audio is VOIP and does not include dialog director or post production engineering and QA Type B: Advanced The following rates are all-inclusive. Rates include all file preparation, engineering, desktop publishing, quality assurance and project management. Audio performed by talent in a studio and includes post-production engineer. Type C: Professional The following rates are all-inclusive. Rates include all file preparation, engineering, desktop publishing, testing of compiled application, quality assurance & LQI checks, DTP Print proofs, professional voice talent and project management.

Hybrid Model – UI, MT & Community

More Content = More Options Microsoft’s View from 2010 On Premium-level quality for targeted product audience Lower-cost alternative for expanded marketplace Broad reach to penetrate new markets effectively Community outreach at lowest cost for widest expansion

Clear Standards and Definitions Deliverables Quality

Cobblers and Conductors

A Symphony of Service Models Service Oriented Architecture & Components for Enhanced Connectivity A Symphony of Service Models Language Quality Mgt. Global Branding Computer Assisted TM Community Models Crowdsourcing Global Search Relevancy Asset & Terminology Mgt. MT Human Translation Authoring