The Innovator's Dilemma of the Translation Industry

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The translation industry is undergoing disruption in a textbook manner described by Clayton Christensen in his book "The Innovator's Dilemma". Companies like Gengo are disrupting traditional players with new production methods, while the industry watches on.

Technology

The Innovator’s Dilemma
of the Translation Industry
Robert Laing, Gengo

Incumbents are locked into
perfecting high-quality,
highly-profitable models

Startups begin with low-quality,
low-profit models

But rapidly increase quality,
capacity and profitability

Disruptable industries have…
Hierarchies
Bureaucracy
Complex worker roles
Outdated technology
Fragmentation
Sales dominance
Distribution problems

AM
VM
CSD
PjM
PjM
E
MLV$0.30
SLV
$0.10
T
$0.03
“At first this hotel looked OK,
then I realized there were
BED BUGS everywhere!”

TranslationQuoting
Biz DevSelling
Marketing Accounts
DTP
Copy
Technology

Incumbent
Startup
Incumbents are locked into
perfecting high-quality,
highly-profitable models

"We overestimate the change that will
occur in the next two years and
underestimate the change that will
occur in the next ten."

Next 5-10 years?
Displacement of “Mom & Pop” agencies
Restructuring of mega-agencies
Consumerization of advanced MT
APIs over standards
Pure online & mobile

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