The Innovator's Dilemma of the Translation Industry

The Innovator’s Dilemmaof the Translation IndustryRobert Laing, Gengo

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

Incumbent

Startups begin with low-quality,

low-profit models

Incumbent

Startup

Incumbent

Startup

But rapidly increase quality, capacity and profitability

Incumbent

Startup

Disruptable industries have…HierarchiesBureaucracyComplex worker rolesOutdated technologyFragmentationSales dominanceDistribution problems






Incumbent

Startup

TraditionalLSP?

Crowd?


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

Translation




API

Incumbent

Startup



"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” agenciesRestructuring of mega-agenciesConsumerization of advanced MTAPIs over standardsPure online & mobile

Next 5-10 years?