Challenge 2009: Aligning Global Content with Business Value Strategies, Tactics, and Roadmaps for...

Challenge 2009: Aligning Global Content with

Business Value

Strategies, Tactics, and Roadmaps for 2009

Mary LaplanteSenior Analyst, Gilbane Group

© 2008, 2009 Gilbane Group, Inc. All rights reserved.

http://gilbane.com

HP Multilingual Content Impact

Fiscal 2008 net $118.4 B

68% of revenue outside of US = $80.5 B

90% of sales based on content, not on touching product

$74.45 B

Cisco Multilingual Content Impact

Fiscal 2008 $39.5 B

47% of sales outside of US = $18.5 B

Multilingual Communications as a Business Imperative

• Market forces driving change

• Obstacles and challenges

• Emergence of the Global Content Value Chain

• State of adoption• Best (and worst)

practices• Company profiles

This Presentation

• Market Context• Factors pushing the boundaries of content

globalization

• Research Insight: Global Content Value Chains• Concepts, content, instances

• Research Application• Strategies and tactics based on industry practice

• GCVC Maturity Model• Developing the roadmap

Market Context

2009 Trends Forcing Change

Shifting world economiesContracting and expanding regions

Managing tension between innovation and fiscal responsibility

All functions, all levels

Evolving basis of competitive advantageNot just products and services but also

• Customer Experience• Brand

• Process know-how

Recession-Proof Expectations

“Consumer demand for positive customer experiences continues to rise despite a tight U.S. economy. In fact, 87% of consumers have stopped doing business with an organization after a bad customer experience, up from 80% in 2007 and 68% in 2006. The report also found that:

“58% of U.S. consumers said that in a down economy, they will always or often pay more for a better customer experience.

“When recommending a company, outstanding customer service is More important (58%) than low prices (44%) and top quality products/services (43%).”

-- Annual Customer Experience Impact Report, a Harris Interactive study sponsored by RightNow® Technologies (NASDAQ: RNOW)

http://www.rightnow.com/resource-ra-3rd-customer-experience-impact-report.php

http://www.rightnow.com/

http://gilbane.com

2009 Trends Forcing Change

Shifting world economiesContracting and expanding regions

Managing tension between innovation and fiscal responsibility

All functions, all levels

Evolving basis of competitive advantageNot just products and services but also

• Customer Experience• Brand


2008 vs 2009 Trends

2008 2009

Global Revenues and Profits Shifting Global Economies

New Content Types, Larger

Volumes

Tension Between Innovation

and Fiscal Responsibility

Evolving Basis of Competitive

Advantage

• Customer experience

• Brand



Advantage


• Brand


Megatrends Are Reshaping Content Practices

2009

Shifting Global Economies

Tension Between Innovation

and Fiscal Responsibility


Advantage


• Brand


Content agility

Content measurability

Content utility

Content consistency

Content agnosticism

Implications

• For product content• Traditional practices no longer align with new

basis for competitive advantage• Built on years of experience developing content

to compete on the basis of product

• For brand/web content• Practices are still emergent• New basis of competitive advantage is shaping

practices in their alpha and beta phases

2008/2009 Economic Impact

High impact20%

Extreme impact

13%

Moderate impact

47%

No impact20%

Gilbane Group, Multilingual Product Content:Transforming Traditional Practices Into Global Content Value Chains

Market Context

Global ContentValue Chain

ConceptContentInstances

create translate

enrich

manage publish consume

optimize

Global Content Value Chain

The Global Content Value Chain is a strategy for movingmultilingual content from creation through consumption. The strategy is supported by practices in disciplines such

as content management and translation management.The enabling infrastructure for the strategy comprises

people, process, and technology.

Why “value chain”?

“The network of manufacturers, wholesalers, distributors, and retailers, who turn raw materials into finished goods and services and deliver them to consumers. Supply chains are increasingly being seen as integrated entities, and closer relationships between the organizations throughout the chain can bring competitive advantage, reduce costs, and help to maintain a loyal customer base.”

NetworkRaw materials to finished product

IntegratedRelationships

Competitive advantageReduced costs

Customer satisfaction

Value Attributes ofMultilingual Content

Content characteristics that can be enhanced

Consistency

“Brand worthiness”

Utility

Grammatically correct

Culturally sensitive

Accurate

Reusable (and persistent)

Quality (as measured by customer satisfaction)

Value Chain for Product Content

PeopleTech writers, Engineers, SMEs, LinguistsCustomer support, Professional services

ProcessMulti-channel publishing

Granular content management

TechnologyXML Authoring/DITAMachine translationKnowledge bases

create translate

enrich


optimize

Value Chain for Brand Content

PeopleMarketing, brand, and product managersWeb content managers and developers

ProcessTemplate-driven design

Multivariant testingDigital media managementSearch engine optimization

TechnologyWeb analytics and optimization

create translate

enrich


optimize

Market Context


Applying GCVC Research

StrategiesTactics

Say their company has a globalization strategy but it is “ambiguous at best”

62%

Say that multilingual communication is a factor incorporate business initiatives

89%

Gilbane Group, Multilingual Communications as a Business Imperative

Yet . . .

38%Openly acknowledge the lack of any strategy

• 78% Costs for multilingualcommunications will increase over next 2-3 years.

• 61% Considerable or extreme risk in not improving the GCVC.

• 100% Are considering changes or enhancements to technology and/or services.

Clear Vision of Risks

Tipping Points

Regional sales effectiveness

Consumer demandCompetitive analysis

Europe: “There is no tipping point!”

Increase in regional sales

Regulatory compliance

Supply chain demand

Enterprise communications

Brand mismanagement

Recruiting processes

eCommerce

Downturn in regional sales

Market entry requirement

Customer experience/CRM

Business Drivers for Investment

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%Faster time to market

Global content consistency,quality and accuracy

Improved global and productbrand management

Regulatory requirements

Increasing revenues in specificvertical markets

Increasing revenues inestablished geographies

Increasing revenues in emerginggeographies

Simultaneous product shipments

Increasing multilingual contentvolume

Rated as "Critical" or "Very Important"


ROI Expectations

Improved customer

relationships37%

Cost savings21%

Higher profitability

3%

Other (Compliance)

3%

Increased revenue

37%


Measuring Content Value

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

Customer satisfaction withcontent

Increased and/or accurate brandrecognition

Content quality level; based oninaccuracies/errors

Level of source content reuse

Faster resolution of customerquestions or problems

Web site usage, click tracking

Increase in translation volume,little or no budget increase

Do not measure

Increased sales or leads

Level of translation memory reuse


The Evolving Service Provider

20%

63%

66%

66%

66%

83%

0% 20% 40% 60% 80% 100%

Regulatory compliance consulting

Industry-specific consulting

Culture/region-specific consulting

Change management consulting

Technology integration services

Global authoring consulting

Services Perceived as High-Value

Gilbane Group, Multilingual Product Content:Transforming Traditional Practices Into Global Content Value Chains

Market Context


Applying GCVC Research

Roadmap: GCVC Maturity Model

Why a GCVC Maturity Model?

• “. . . how to begin a rigorous, organized plan for bringing the GCVC to life within your organization, or expanding its reach if you already have a GCVC in place.”

• Proven framework derived from the Software Engineering Institute at Carnegie Mellon University (1986)

• Five levels of sequential development, defining organizational state in terms of competencies, capabilities, and best practices

Initial/Ad-hoc Defined Managed OptimizedRepeatable

Aware

Operational

Collaborative

Aligned

Accepted

Reactive headquarters and regional approach to content globalization requirements.

Repeatable content globalization processes are developed according to project and content application.

Functional content globalization processes are in place, but siloed within departments and regions with little to no collaboration.

Streamlined content globalization processes in place based on performance metrics and shared language assets between headquarters and regional levels.

Process balance achieved between central and regional operations with enterprise-wide governance, measurement, and continuous improvement based on annual corporate globalization strategies.

Labels from the Capability Maturity Model®, Software Engineering Institute at Carnegie Mellon University

GCVC Maturity Model

Aware

Operational

Collaborative

Aligned

Accepted

Defining the Stages

Capabilities

Competencies

Best Practices

Using the Maturity Model

• A mechanism for • evaluating your company’s current situation• deciding where you need to go to align with top-

line business objectives• understanding which factors are most critical to

moving to that new state• driving conversations with stakeholders

• Not just about process improvements• Top-line business benefits that the

organization is realizing as a result of managing the maturity of its GCVC

2009 Research

Multilingual Product Content:Transforming Traditional Practices Into

Global Content Value Chains

For companies that are challenged to ship products simultaneously, ensure international regulatory compliance, meet global expectations for multilingual documentation, increase global customer satisfaction, and sustain brand

management programs

Target publication June 2009

Some Key Findings

• Global customer satisfaction trumps all• Approaches to ensuring quality at the source of

content• State of integration of content and

localization/translation management

• Rise of the cross-functional champion• Service providers as strategic partners

Gilbane Group

Analyst and consulting firm focusedon content technologies and their

application to high-value business solutions

Practice Areas:Enterprise search, Collaboration, Content

Globalization, Digital publishing, Webcontent management, XML content and

technologies

http://gilbane.com

Gilbane San Francisco 20092-4 June

http://gilbane.com/

Content Globalization Practice

The intersection of content and localization/translation management

Topic Areas: technologies, services, marketdevelopments, buyer perspectives

Clients: vendors, enterprise users, investorsUser engagements: content strategies, education,

technology acquisition support

2009 Publications

Innovation3: The FICO Formula forAgile Global Expansion

Webinar: June 17

Borderless Brand Management: The Philips 2010 Vision

Multilingual Product Content: Transforming TraditionalPractices to Global Content Value Chains

Thanks

Mary LaplanteVice President, Senior Analyst

Gilbane Group, Inc.http://[email protected]

http://gilbane.com/

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