 |
| Paid Research - Membership Required |
| Beggars at the Globalization Banquet |
| |
| Keywords |
| localization, translation, globalization, return on investment, best practices, technology, business process outsourcing, language service supplier, market entry, procurement, auctions |
Abstract |
The cost of localization is very small compared to the big international revenue it generates. But our research found that most firms shortchange their localization budgets. This report analyzes the ability of localization projects – that is, the translation and adaptation of products, services, supporting materials, and infrastructure for other markets – to create demonstrable shareholder value. We found that:
- Only a quarter of our respondents formally measure ROI on their localization projects. Just a few respondents ever cycle back to re-evaluate their localization decisions.
- Our interviews put to rest the long simmering debate about the involvement of “C-level executives” (that is, CEO, CIO, CFO, and so on) in localization. Just one interviewee bore the title of vice president or higher.
- Because our interviewees find themselves pushed to localize more material for each dollar, we expected that productivity-enhancing tools would be a top priority. They’re not.
What does this mean for companies localizing products, documentation, or websites? The report provides a framework for dealing with localization ROI to the same degree as it is managed elsewhere in corporations. It provides practitioners with clear, actionable recommendations on setting metrics, measuring, and improving ROI. It also provides detailed advice on how to work with translation and technology suppliers. Finally, it provides guidance to language service providers and technology suppliers on how to deal with the changing ROI dynamics of the global corporation. This report effort was led by Don DePalma, whose 1997 report "Web Best Practices" set the agenda for formal corporate use of the internet. His 1998 "Strategies for Global Sites" was the first analyst's report that took the "worldwide" part of the web at its word. That report continues to be the most frequently cited source on globalization, noting as it did that "visitors linger twice as long as they do at English-only URLs; business users are three times more likely to buy when addressed in their language; and customer service costs drop when instructions are displayed in the user's native language." |
Benefits |
In General: This report provides the first in-depth survey, discussion, and analysis of the value of translation and localization in an enterprise.
|
For Buyers: Because this report supplies discusses user experiences and makes specific recommendations on how to improve the return on localization investment, it should prove useful to anyone responsible for setting or advising corporate globalization strategies.
|
| For Suppliers: Any company that provides software solutions or services to help companies localize their products, websites, or documents will find value in this report, both in terms of assessing the opportunity and understanding the buying motivators of their prospects. |
Physical Details |
Authors: Donald A. DePalma and Renato Beninatto
|
| Date: 01 November 2002 |
| ISBN: 0-9765169-1-8 |
| Pages: 47 |
Companies |
| Cognos, Day, Documentum, EDS, Global Sight, IBM, Interowen, NetGenesis, Pivotal, SAS, Siebel, Trados, WebTrends |
Table of Contents |
- Topic
- Getting to the Bottom of Localization – What Is the Payback?
- Who Should Read This Report?
- Interviewees Seek to Raise Visibility in Corporate Food Chain
- Localization Spending Holds Its Own in a Tough Market
- But Few Companies Measure the Bottom Line for Localization
- All Said and Done, Localization Stacks Up as a Great Bargain
- Who’s in Charge? C-Level Executives Are Nowhere to Be Found
- Three Obstacles Cloud the ROI Picture
- Interviewees Have Mixed Emotions about Localization Suppliers
- Low Automation Quotients Characterize Most Respondents’ Efforts
- Conclusions from Our Interviews
- Analysis
- It’s Time for Localization to Come Out of the Cold
- Step 1: Champion the Metrics Used by the Rest of the Business
- Step 2: Crunch the Numbers Scientifically and Comprehensively
- The Bottom Line: How Much Return Should There Be on Localization?
- Economic Models Justifying Localization Will Become Richer
- Step 3: Estimate the Price Tag of Not Localizing
- Unlocalized Products Levy a Usage Tax on International Customers
- Reality Check: Never Say “Always”
- Caution: ROI Measurement Never Ends
- Implications
- Localization Game Plan
- 90-Day Plan: Rethink Localization in a Business Context
- Long-Term Plan: Transform Localization into a Cost-Effective Enabler
- Quality Needs Guidance and Formal Measurement
- Companies Could Achieve Productivity through Technology, but…
- For Suppliers, It’s Time to Step Up to the Business Challenge
- Immediate Makeover: Internalize Client Motivations
- Long-Term Metamorphosis: Sell Value, Not Words
- Localization Leaders Must Pull into the Fast Lane
|
| Paid Research - Membership Required |
| Beggars at the Globalization Banquet |
| |
| Keywords |
| localization, translation, globalization, return on investment, best practices, technology, business process outsourcing, language service supplier, market entry, procurement, auctions |
Abstract |
The cost of localization is very small compared to the big international revenue it generates. But our research found that most firms shortchange their localization budgets. This report analyzes the ability of localization projects – that is, the translation and adaptation of products, services, supporting materials, and infrastructure for other markets – to create demonstrable shareholder value. We found that:
- Only a quarter of our respondents formally measure ROI on their localization projects. Just a few respondents ever cycle back to re-evaluate their localization decisions.
- Our interviews put to rest the long simmering debate about the involvement of “C-level executives” (that is, CEO, CIO, CFO, and so on) in localization. Just one interviewee bore the title of vice president or higher.
- Because our interviewees find themselves pushed to localize more material for each dollar, we expected that productivity-enhancing tools would be a top priority. They’re not.
What does this mean for companies localizing products, documentation, or websites? The report provides a framework for dealing with localization ROI to the same degree as it is managed elsewhere in corporations. It provides practitioners with clear, actionable recommendations on setting metrics, measuring, and improving ROI. It also provides detailed advice on how to work with translation and technology suppliers. Finally, it provides guidance to language service providers and technology suppliers on how to deal with the changing ROI dynamics of the global corporation. This report effort was led by Don DePalma, whose 1997 report "Web Best Practices" set the agenda for formal corporate use of the internet. His 1998 "Strategies for Global Sites" was the first analyst's report that took the "worldwide" part of the web at its word. That report continues to be the most frequently cited source on globalization, noting as it did that "visitors linger twice as long as they do at English-only URLs; business users are three times more likely to buy when addressed in their language; and customer service costs drop when instructions are displayed in the user's native language." |
Benefits |
In General: This report provides the first in-depth survey, discussion, and analysis of the value of translation and localization in an enterprise.
|
For Buyers: Because this report supplies discusses user experiences and makes specific recommendations on how to improve the return on localization investment, it should prove useful to anyone responsible for setting or advising corporate globalization strategies.
|
| For Suppliers: Any company that provides software solutions or services to help companies localize their products, websites, or documents will find value in this report, both in terms of assessing the opportunity and understanding the buying motivators of their prospects. |
Physical Details |
Authors: Donald A. DePalma and Renato Beninatto
|
| Date: 01 November 2002 |
| ISBN: 0-9765169-1-8 |
| Pages: 47 |
Companies |
| Cognos, Day, Documentum, EDS, Global Sight, IBM, Interowen, NetGenesis, Pivotal, SAS, Siebel, Trados, WebTrends |
Table of Contents |
- Topic
- Getting to the Bottom of Localization – What Is the Payback?
- Who Should Read This Report?
- Interviewees Seek to Raise Visibility in Corporate Food Chain
- Localization Spending Holds Its Own in a Tough Market
- But Few Companies Measure the Bottom Line for Localization
- All Said and Done, Localization Stacks Up as a Great Bargain
- Who’s in Charge? C-Level Executives Are Nowhere to Be Found
- Three Obstacles Cloud the ROI Picture
- Interviewees Have Mixed Emotions about Localization Suppliers
- Low Automation Quotients Characterize Most Respondents’ Efforts
- Conclusions from Our Interviews
- Analysis
- It’s Time for Localization to Come Out of the Cold
- Step 1: Champion the Metrics Used by the Rest of the Business
- Step 2: Crunch the Numbers Scientifically and Comprehensively
- The Bottom Line: How Much Return Should There Be on Localization?
- Economic Models Justifying Localization Will Become Richer
- Step 3: Estimate the Price Tag of Not Localizing
- Unlocalized Products Levy a Usage Tax on International Customers
- Reality Check: Never Say “Always”
- Caution: ROI Measurement Never Ends
- Implications
- Localization Game Plan
- 90-Day Plan: Rethink Localization in a Business Context
- Long-Term Plan: Transform Localization into a Cost-Effective Enabler
- Quality Needs Guidance and Formal Measurement
- Companies Could Achieve Productivity through Technology, but…
- For Suppliers, It’s Time to Step Up to the Business Challenge
- Immediate Makeover: Internalize Client Motivations
- Long-Term Metamorphosis: Sell Value, Not Words
- Localization Leaders Must Pull into the Fast Lane
|
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