ROI and the Value of Machine Translation

ROI and the Value of Machine Translation

Presented by Nicholas McMahon

Moderated by Paula ShannonJuly 15, 2009

Company confidential – distribution prohibited without permission

Introductions

Nicholas McMahon

VP, Global Technology Solutions, Lionbridge

[email protected]

Over 13 years experience working with some of the world’s most successful global organizations

Provided strategic and tactical global leadership as a foundational executive for two US divisions of European companies, as well as a VAR business

Paula Shannon

CSO, SVP and General Manager, Lionbridge

[email protected]

More than 23 years experience in the translation and localization industry

Responsible for sites in 26+ countries, driving new services and sustainable solutions, ensuring the continued delivery of innovation and execution excellence to a broad range of Global 1000 customers

mailto:[email protected]



About Lionbridge

Global Scale

4,600 employees 26 countries• Global network of 25,000 translators

Market Leadership

Leader in $14B services industry

• Translation and adaptation of products

and content for international markets

Global Clients

Recurring relationships with 500+

global clients• 80% of revenue comes from recurring clients

• 12 of the Fortune 20 companies are client

Hosted Technology

Web-based language technology

platform• Enhances competitive advantage

• Drives efficiency


Agenda

Business considerations and ROI Modeling

Top 3 Applications of MT

3 Basic Considerations for MT Evaluation

Enterprise Cost Considerations for MT

Live Q&A

Basic MT Introduction




Three Types Of Machine Translation

Rules Based

iTranslator

Statistical

Google

Hybrid

Systran Enterprise

Server 7




Agenda

3 Basic Considerations for MT Evaluation


MT performance in one language is NOT MT

performance in another language or even in another

language direction

Top Three Considerations for MT



MT is not an

“every language solution” for any of the MT Engines


MT at an Enterprise Level

is NOT free



Agenda



Top Three Applications of MT:Chat


MT Chat Approaches

Human to human

instant dialogue

Human to semi auto

response based on

key word findings

Top Three Applications of MT:Chat

Evolution

Early adoption – Value focus, very little distinct ‘ROI’

modeling


Top Three Applications of MT:Support Content


FAQ MT Approaches

Raw MT output for un-translated content

Tiered Quality approach

Top Three Applications of MT:Support Content

Evolution

Volume Success and reasonable adoption

“Self serve” & “New content” increases user patience


Top Three Applications of MT:User Guides


Approaches

TM, MT + Post Editing of content

Considerations

Early Adoption – strong indicators of success

Goal is to MT to be ‘invisible’ in process



Are you currently considering or using MT in any of these situations?

Considering MT for Chat

Considering MT for FAQs

Considering MT for Volume User Content

Using MT for Chat

Using MT for FAQs

Using MT for Volume User Content

POLLING QUESTION


Agenda

Enterprise Cost Considerations for MT


“Start up Costs” Costs

Data Identification/ Corpus creation $0k - $100k

Customization or training of content $5k - $250k

Licensing fees $0k - $200k

Integration fees $10k - $200k

Enterprise Cost Considerations


“Post Editing” Costs

Training of resources for post editing $5k - $10k

Post editing rates 40% – 65% of word rate approx 10 cents – 16 cents per word

Ongoing customization/ corpus management annually $5k - $200k

Enterprise Cost considerations


Agenda

Business considerations and ROI Modeling


User 1 User 2

My Second figure is an animal with a tail and four feet

My role of a young handsome beau is a boy with a tail and 4 feet

What kind of meaning and nice boy?

What do you mean? A handsome boy?

My second figures looks like an animal

My second figure is like an animal

It has four feet and a tail It has four feet and a tail

Oh, I understand and am the 8th I got it, it is my 8th figure

Source: NTT Labs and Kyoto University,

Effects of Machine Translation on Collaborative Work, Dec 06

ROI modeling for MT within Instant communication


Establishing the value of instant communications

Ability to resolve support requests

Cost per multilingual call handling

Ability to communicate better

Value of increased time to market



MT in Chat Benefits Variables

Strong defined reference sets produce better results

Strong defined language use (specific to a domain or industry)

Patience and Flexibility of user (not for complaints!)

Favors Value of ‘currency’ of content versus quality

ROI Modeling for MT within Instant Communication


Results Defined Data Sets

5 - 25% average success rate (resolution of issue)

User Satisfaction generally 30 –50%



ROI Model – Statistical MT considered best match

10 Languages, 100,000 chat support requests

Alignment of data for Corpus Creation: $30k

Product Licenses $100k

Integration of tools $20k

Human system/ process training $10k

System tweaking : $20k

Total Cost $180k



Averaged Results for Calculation

10% support cases resolved

Average cost of alternate solution: $15 (FAQ routing/ human Call)

Benefit

100,000 * 10% * $15 $150,000

Less Costs $180,000

Basic Financial ROI Year 1 -$30,000



Based on the considered MT chat model do you think the suggested ROI is:

Very Low

Low

About Right

High

Very High

POLLING QUESTION


Establishing the value of FAQs?

Ability of users to autonomously resolve support requests

Increased Customer Satisfaction

ROI modeling for MT applied to FAQs


Benefits Variables


Quality of source content construction

Expectations of user –disclaimers on quality

Favors un-translated content

Rules based or Hybrid best solutions

Provision of English source links provide additional context

Cultural expectations

Volume of source data available




20% - 35% average success rate (resolution of issue)

On average about 8% less than English

User Satisfaction generally 50 – 65%



ROI Model – Hybrid MT Engine considered

10 Languages, 100,000 FAQs docs 450 words per doc.



Integration of tools/ solution $60k

Rating, feedback reporting $20k



Total Cost $390k



Averaged Results for Calculation :

25% support cases resolved

Average cost of alternate solution: $35(Human Call Response)

Benefit

100,000* 25% * $35 = $875,000

Less Costs $390000

Basic Financial ROI Year 1 $485,000



Based on the considered MT FAQ model do you think the suggested ROI is:

Very Low

Low

About Right

High

Very High

POLLING QUESTION


Establishing the value of MT within User Documentation

Improvement in output volume

Reduction in total attracted cost of translation

Increased user content available

ROI Modeling for MT applied to User Guides


Benefits Variables


Quality of source content construction

Knowledge and skills of human resources

Systems and tools integration of MT and TM

Target Language complexity




-10% - +25% productivity improvement

Reduction in total attracted cost per word



ROI Model – Rules Based MT considered

4 Languages, 2,000,000 words total





Total Cost $50k



Averaged Results

15 % increased in productivity

Average fully loaded per word cost $0.25

(accounting for fuzzy matches)

Benefit

2,000,000 * 15%* 0.25 = $75,750

Less Costs $50,000

Basic Financial ROI Year one $25,750

(about 10% of expected costs)



Early Adoption, but MT based projects are reporting

MT solutions are dramatically improving

MT source data is growing exponentially

MT ROI Take Away


Agenda

Live Q&A


www.lionbridge.com

Knowledge Center

• Localization 2.0

• The Art and Science of Global Navigation

• The Best Global Web Sites (and Why)

View Webinars

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• Strengthening Global Brands: Key Steps for Meaningful Communications around the World

• Building a Global Web Strategy: Best Practices for Developing your International Online Brand

• Machine Translation: Saving Time, Lowering Costs, and Improving Services

Download White Papers

http://www.lionbridge.com/


Questions?

Nicholas McMahonVP, Global Technology [email protected]

Lionbridgewww.lionbridge.com

http://localization2dot0.lionbridge.com

http://blog.lionbridge.com

http://twitter.com/Lionbridge


http://www.lionbridge.com/

http://localization2dot0.lionbridge.com/

http://blog.lionbridge.com/

http://twitter.com/Lionbridge