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

Disruptable industries have…HierarchiesBureaucracyComplex worker rolesOutdated technologyFragmentationSales dominanceDistribution problems

Disruptable industries have…HierarchiesBureaucracyComplex worker rolesOutdated technologyFragmentationSales dominanceDistribution problems

Disruptable industries have…HierarchiesBureaucracyComplex worker rolesOutdated technologyFragmentationSales dominanceDistribution problems

Disruptable industries have…HierarchiesBureaucracyComplex worker rolesOutdated technologyFragmentationSales dominanceDistribution problems

Disruptable industries have…HierarchiesBureaucracyComplex worker rolesOutdated technologyFragmentationSales dominanceDistribution problems

Incumbent

Startup

TraditionalLSP?

Crowd?

Disruptable industries have…HierarchiesBureaucracyComplex worker rolesOutdated technologyFragmentationSales dominanceDistribution 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!”

Disruptable industries have…HierarchiesBureaucracyComplex worker rolesOutdated technologyFragmentationSales dominanceDistribution problems

TranslationQuoting

Biz DevSelling

Marketing Accounts

DTP

Copy

Technology

Translation

Disruptable industries have…HierarchiesBureaucracyComplex worker rolesOutdated technologyFragmentationSales dominanceDistribution problems

Disruptable industries have…HierarchiesBureaucracyComplex worker rolesOutdated technologyFragmentationSales dominanceDistribution problems

Disruptable industries have…HierarchiesBureaucracyComplex worker rolesOutdated technologyFragmentationSales dominanceDistribution problems

API

Incumbent

Startup

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

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

Next 5-10 years?