Episode Transcript
[00:00:00] Creating value for customers as a specialized LSP by Domainicolom Bardini as language service providers when we say we are creating value for customers, what do we really mean? Sometimes we create ad hoc tools to manage workflows that are tailored to customer needs, but sooner or later these solutions are seen as a commodity. Although their usefulness is recognized and they make the customer sticky, they are not considered supremely valuable by customers who have by now grown accustomed to this type of solution. Similarly, while the revolution promised by large language models will have substantial impacts, there is always the risk that customers will become accustomed to these tools as well, viewing them as simply another commodity. How do we break this cycle to truly create value for customers? Lsps can verticalize and also broaden their verticalization by offering synergistic services in the same market niche, a strategy I call horizontal verticalization. This can make an LSP unique in the eyes of the customer.
[00:01:07] The challenge of differentiation when it comes to services offered, many lsps are practically identical. Some companies try to stand out through branding and communication style with minimal success. Others focus on advertising their positive work environment, but this can only be used for marketing when disseminated through the company's social media channels. From then on, aside from a good name the company could have in the sector, the initiative can no longer be used effectively to stand out to potential customers. Investing too much energy in these approaches could divert attention from strategies that could have deeper long term impacts on the company's chances of projecting a truly unique image. Nor should we invest too much energy in price competitiveness. I live in Italy, a country that has deluded itself in recent years, convinced it can compete on the international stage by keeping spending and wages low at the cost of moving away from frontier technologies. Countries that want to stay on a path of sustainable and lasting growth in the knowledge economy must remain at the technological frontier, which is only possible by investing in education and skills. This is the only strategy that will lead to economies of scale and a general increase in productivity per employee, resulting in better wages and working conditions. This is why I posit that horizontal verticalization by creating real value for customers is one of the best ways to differentiate an LSP market niches in the following sections, I present some examples of successful horizontal verticalization as food for thought for anyone in the language services industry who wonders how to differentiate their company in a competitive landscape. Technical translations most manufacturing companies, particularly companies that produce machines and production lines, such as in the automotive, pharmaceutical and packaging sectors, must translate the manuals attached to their products in order to export them to other countries. This translation is mandatory in the european single market. However, sometimes customers do not perceive or appreciate the value of translating their materials and in fact focus only on savings, usually with very limited turnaround times. Often translation is the last thing taken care of before machinery is shipped, and therefore the customer demands an almost immediate translation of adequate quality, although sometimes they don't place much emphasis on this aspect at very competitive prices. To use a euphemism, when a company is mostly sensitive to cost when assigning a job to a supplier, the cheapest service provider clearly stands out. This is precisely what I mean by commoditization of translation services. The customer does not recognize the value acquired when choosing a supplier based exclusively on price and delivery speed. In such a situation, alas, not at all uncommon in our industry. How can we combine needing to create value for the customer with trying not to compete exclusively on price? One solution is to offer technical drafting services to these customers. Technical writing is often outsourced by companies. They perceive technical drafting as a task with greater added value, and being able to offer customers both the drafting service and the downstream translation service can create economies of scale and make them truly loyal and not just sticky. Translations can also be made more cost competitive without reducing margins. For example, the translation process can be made more efficient by using controlled writing techniques that favor the leverage obtainable downstream. With computer assisted translation tools, the customer saves money but not by sacrificing quality, and will have a single subject as their touchstone. You other services that lsps can offer are creating video animations and the so called digital twin of a company's product.
[00:05:04] Patent translations translations related to intellectual property, particularly patent translations, are a critical specialization for lsps focused on this segment. The complexity and legal importance of patent documents require thorough knowledge of technical and legal language, making translation accuracy indispensable. Yet despite the high value attributed to these services, they have an increasingly marked tendency to minimize costs, pushing towards a perception of service commoditization where the differentiation between suppliers becomes more and more blurred. Machine translation, especially when trained with large patent data sets, has been shown to work well in the patent translation sector, at least in the most commonly requested languages for patent validations. This has led to a greater familiarity and acceptance of such technologies by customers who, while recognizing the importance of accurate translation, tend to favor more cost effective solutions. In this context, LSPs could go beyond mere competition based on price and quality, seeking to expand their offerings with additional services that can enrich the value perceived by customers. The IP sector is subject to frequent and sometimes disruptive regulatory changes, which have a substantial impact on the demand for translation services. Offering additional services still within the IP niche can help differentiate your offering, lend credibility and position your company as a go to resource in the eyes of the customer. An effective strategy could be integrating legal advice and support services for both domestic and international patent validation. Collaborating with a network of patent attorneys and legal specialists in various countries would allow LSPs to offer a complete package of services ranging from patent translation to their bureaucratic and legal management, adapting to the specific needs of each jurisdiction. It is important to note that while some countries require the full translation of patent documents for national validation, others may only require the translation of specific parts, such as the claims. These varying requirements underscore the importance of a tailored approach that considers the peculiarities of each legal system. The patent translation landscape has been changing with the introduction of the unitary patent in Europe, which aims to simplify the patenting process by reducing the need for multiple translations. However, this new systems implementation and adoption has not yet completely eliminated the demand for quality patent translations, leaving opportunities available for lsps that know how to offer more than just a translation, positioning themselves as strategic partners for the global management of their clients intellectual property. Another easily implementable service is that of patent drafting, in which an experienced patent attorney writes a patent in order to then file it in the country in question.
[00:08:01] Medical and life sciences translations medical and life science translations are an expanding market segment in which accuracy and reliability are indispensable given the need to comply with regulatory standards in order to market products in different countries. In this highly specialized context, simply offering translation services is not enough to stand out. This is where lsps can go beyond the traditional translation service and embrace specialized services that reflect the complex needs of the industry. One such service is medical writing, including informational material for patients and the public, such as brochures, websites and newsletters, and materials meant for healthcare professionals. Another in demand service is writing support for research and educational material, such as posters for medical conferences and scientific papers intended for publication in peer reviewed journals. Another example where lsps can offer added value is in medical interpreting, facilitating communication in contexts such as international conferences, seminars, and meetings between clinicians. Lastly, the adoption of rigorous, industry specific quality control processes such as peer reviews by medical experts and the use of specialized glossaries can further strengthen a translation company's position as a reliable and competent strategic partner in the medical and life science fields. Partnerships with communication agencies and web agencies can also allow for offering creative services such as graphic and web design, as well as the ability to create multi channel communication projects. These partnerships can enhance business opportunities and secure customer loyalty. By applying these specialization strategies and providing high added value services, companies can significantly stand out in the market, transforming from simple translation service providers to consultancy partners capable of offering complete solutions that cover the entire range of medical and scientific communication.
[00:10:02] Fashion industry translations in the fashion industry, where brand image and language play a crucial role in market positioning, LSPs can adopt innovative strategies to become true partners with their customers. One approach that can make a difference is to offer tailored localization services that do not merely translate content but adapt the message to the culture and sensitivities of the target audience. This means not only choosing the right words, but also capturing the style, tone and essence of the fashion brand so that it authentically resonates with the local audience. Integrating creative specialized copywriting services can also make an LSP more attractive to customers in the fashion industry. Multilingual search engine optimization is another service that translation companies can offer to increase fashion brands visibility in various markets. LSPs can also distinguish themselves by offering strategic content advice, helping fashion brands develop a global narrative that is not only consistent across markets, but also respectful of cultural differences. This consultative approach transforms the translation service provider into a strategic partner in the brand's global growth. To become truly unique, LSPs can specialize even further, for example, by focusing on specific niches such as sustainable luxury or fast fashion. This specialization allows for developing thorough expertise that can be particularly attractive to the brands operating in those segments. LSPs can use these strategies to build a unique offering that lets them stand out to customers in the market, parsing from simple suppliers to strategic partners for fashion brands in their global expansion effort.
[00:11:46] Integrating skills to effectively integrate the skills needed to offer specialized services in the various sectors, LSPs must adopt a multidisciplinary strategy involving qualified professionals in specific areas such as writers, editors or attorneys. Some ideas and approach us to achieve this goal are offered below.
[00:12:07] Internal training LSPs can invest in continuous staff training, offering training courses and workshops in areas such as technical drafting, IP medicine and fashion. This approach not only improves the existing teams skills, but also increases the added value the company can offer customers. Partnerships establishing partnerships with external companies and experts such as patent attorneys, medical writers and fashion professionals can expand an LSP service offering. These collaborations allow LSPs to draw on highly specialized expertise on specific projects, ensuring a high level of quality in translated or created content.
[00:12:49] Strategic hires LSPs can consider hiring full time specialists for services that require constant specialist expertise such as patent drafting or medical copywriting. This allows for in house expertise, thereby ensuring consistency and high quality in the services offered on a regular basis. Professional networking actively participating in professional conferences, seminars, and events in the areas of interest can help LSPs build a network of contacts with experts and professionals. This network can become a valuable resource for future projects, providing access to specialist expertise on demand. Multidisciplinary teams create project teams that include both translators and industry experts. For example, a team for a medical translation project might include medical translators and a medical consultant. This approach fosters a collaborative and dynamic work environment where language and technical skills complement each other, improving the quality and accuracy of the final product.
[00:13:54] This article was written by Domain Nicolon Bardini. He has a masters degree in biological sciences and leads Astu, an LSP specializing in linguistic services for the legal, IP, and life sciences sectors. Originally published in multilingual magazine, issue 230, July 2024.
