1. Language Technologies and the Third Platform for Innovation Rafael Achaerandio Research Director IDCResearch

2. Disrupting Times… #1 Clayton Christensen “Disruptive Innovation” 2

3. Agenda 3 Disrupting Times The Third Platform and LT LT – Hype or Hope? Key Actions to make LT happen Take aways

4. 4 CLOUD SOCIAL MOBILITY BIG DATA Tech Disruption

5. Social Disruption 5

6. Economic Disruption XVIIIS XXS XIXS XXI½ S XX People ProcessCustomer Capital Nation Open / Net VerticalRound HorizontalBureaucratic Innovation Product Technology MoneyRaw Materials Mercantilism Industrial Capitalism Financial Capitalism Global Capitalism Intellectual Capitalism 6

7. “Our Age of Anxiety is, in great part, the result of trying to do today’s jobs with yesterday’s tools!” Marshall McLuhan 7

8. Agenda 8 Disrupting Times The Third Platform and LT LT – Hype or Hope? Key Actions to make LT happen Take aways

9. The Third Platform for Innovation Fraud Detection Omnichannel Retail Smart Buildings mHealth Smart Cities Vertical Intelligent Solutions Connected Vehicules Smart Grid Mobile Payments 8 BUSINESS/CONSUMERS Means great changes on Breadth, Scale, Costs and Time to Market 9 TECH INDUSTRY Requires a new approach to Scale, Community and Context

10. LT on the 3 rd Platform 10 Fraud Detection Omnichannel Retail Smart Buildings mHealth Smart Cities Vertical Intelligent Solutions Connected Vehicules Smart Grid Mobile Payments 8 Language Technologies 3 rd Platform Underground

11. "The future is already here — it's just not very evenly distributed." William Ford Gibson, writer that coined the term cyberspace 11

12. Agenda 12 Disrupting Times The Third Platform and LT LT – Hype or Hope? Key Actions to make LT happen Take aways

13. There is an LT Industry © IDC Visit us at IDC.com and follow us on Twitter: @IDC 13

14. There is an LT Industry © IDC Visit us at IDC.com and follow us on Twitter: @IDC 14

15. There is a LT Market © IDC Visit us at IDC.com and follow us on Twitter: @IDC 15 Worldwide Language Technology Software & Services Market 2011 & 2015 (€B)

16. There is a LT Market © IDC Visit us at IDC.com and follow us on Twitter: @IDC 16 Worldwide Language Technology Software & Services Market 2011 & 2015 (€B) Regional Shares by Segment: 2015 19,2 €B 2011 to 28,1 €B 2015 10% CAGR LT vs 5% CAGR IT

17. LT Challenges and Opportunities © IDC Visit us at IDC.com and follow us on Twitter: @IDC 17 Impact Time frame Long-term Short-term Low High Opportunities Internationalization & Globalization Internationalization & Globalization Cloud Computing E-commerce Social Media Open Source Translation Technologies Consolidation Translation Technologies Consolidation Big Data LT Technologies convergence LT Technologies convergence Mobile Biometrics Massification Biometrics Massification Internet of Things Compliance Verticalization Dynamic Personalization Dynamic Personalization Embedding LT Smart Verticals Smart Verticals Challenges Top Opportunities Economic Situation (investment vs. innovation) Economic Situation (investment vs. innovation) Talent Scarcity Talent Scarcity Lack of Standardization & shared linguistic resources Lack of Standardization & shared linguistic resources Privacy & Security Privacy & Security Business Solutions Awareness Business Solutions Awareness Market Maturity Market Maturity Multilingual Speech Recognition costs Multilingual Speech Recognition costs Translation & Related Translation Costs Translation & Related Translation Costs Increasingly Informed customers Increasingly Informed customers Fragmentation & Lack of cooperation Fragmentation & Lack of cooperation Cost of new Market entrance Cost of new Market entrance “Europeanisation of mature SMEs “Europeanisation of mature SMEs Integrators evangelization Integrators evangelization

18. 18 How to make it happen?

19. Agenda 19 Disrupting Times The Third Platform and LT LT – Hype or Hope? Key Actions to make LT happen Take aways

20. LT Industry to jump the Barriers © IDC Visit us at IDC.com and follow us on Twitter: @IDC 20 © IDC Visit us at IDC.com and follow us on Twitter: @IDC Impact Time frame Long-term Short-term Low High Driver Inhibitor Economic Situation (investment vs. innovation) Economic Situation (investment vs. innovation) Talent Scarcity Talent Scarcity LT Technologies consolidation Internationa lization & Globalization Internationa lization & Globalization Cloud Computing E-commerce Social Media Open Source Translation Technologies Convergence Translation Technologies Convergence Lack of Standardization & shared linguistic resources Lack of Standardization & shared linguistic resources Big Data LT Technologies consolidation LT Technologies consolidation Accuracy Mobile Multilingual Speech Recognition costs Multilingual Speech Recognition costs Smart Verticals Privacy & Security Privacy & Security Business Solutions Awareness Business Solutions Awareness Biometrics Massification Biometrics Massification Open Source Internet of Things Regulators Market Maturity

21. LT to enable a Digital Value Chain © IDC Visit us at IDC.com and follow us on Twitter: @IDC 21

22. LT to have a Go-To-Market Strategy © IDC Visit us at IDC.com and follow us on Twitter: @IDC 22

23. LT European Industry competing WW © IDC Visit us at IDC.com and follow us on Twitter: @IDC 23 Single European Market (Uniform) SMEs Cluster Strategy (Europeanisation) LT Family (LT WW Brand and MKT) Enable the 3 rd Platform (Alliances) Think Big (Scale / Fund) (Solutions)

24. “Only I can change my life. No one can do it for me” Andy Warhol

25. Agenda 25 Disrupting Times The Third Platform and LT LT – Hype or Hope? Key Actions to make LT happen Take aways

26. Opened to Discussion? 26 1.There is a clear Opportunity 2.LT enabling the 3 rd platform? 3.LT and the Digital Value Chain? 4.LT Go-To-Market Strategy? 5.LT - European Industry Strategy?

27. Rafael Achaerandio Head of Research IDC Iberia Teléfono:+34917872157 Fax: +34917872165 Email:rachaerandio@idc.comrachaerandio@idc.com Twitter:@RafaAchaerandio www.idc.com/spain www.idc.com/portugal 27

28. 28 Technological Disruption © IDC Visit us at IDC.com and follow us on Twitter: @IDCSpain