How to calculate the ROI of a Translation Management System

如何计算翻译管理系统的投资回报率(ROI)

2020-05-19 15:50 Wordbee Translator

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When we talk about return on investment (ROI) in translation, it is worth remembering that this concept involves all the resources used for a specific project or activity, including human resources. A key technological resource is the translation management system (TMS). Unlike the ROI of localization or terminology (which are processes and, as such, intangible), the ROI of a TMS (being a technology and, therefore, somehow tangible) is comparatively easier to compute. The hardest part consists in identifying every component and the relative (human) resources. In this article, we want to try and list the essential components to calculate the ROI of a TMS and to help you decide which technological step(s) to take. So, get pen and paper and let’s get started. #1 Total cost of ownership The most important element is the TCO, which stands for total cost of ownership. This is a method developed by Gartner and used to compute a financial estimate in order to help buyers and owners determine the direct and indirect costs of a system. For the TCO it is necessary to calculate all lifecycle costs of IT equipment, from purchase to installation, from training to management, from maintenance to disposal. When there is no purchase price but a periodic fee or subscription, the cost in question will be absorbed into the TCO for the expected duration of lease. #2 Operating expenses The same consideration as above must be taken into account for OpEx, i.e. operating expenses, the cost necessary to manage a product, a business or a system, otherwise called O&M (Operation and Maintenance) costs. If the TMS is purchased and installed on the company’s server(s), the client will bear the associated operating expenses. Many companies, though, choose a TMS functioning in SaaS mode. The platform is then available in the cloud: in this case, the operating expenses will be marginal for the client while the technology supplier will take care of development, implementation, deployment, upgrade and maintenance. In some cases, the vendor will also provide a Service Level Agreement (SLA) to sign. In addition to cost-effectiveness, other clear advantages of a SaaS solution are flexibility and scalability. #3 Human resources Last but not least, the human component, i.e. the staff needed to operate the TMS: IT personnel, localization engineers and project managers. If the TMS is stored on the company’s server(s), specialized IT personnel will be responsible for the platform’s management and maintenance. When a cloud based TMS is used in SaaS mode, on the other hand, most of the management activities can be simply carried out by most staff, maybe with advanced IT skills. The maintenance, upgrade and security will be the responsibility of the vendor. The cost relative to the localization staff should be considered as setup/configuration costs, i.e. costs for all functional activities. Calculating the ROI of a TMS To calculate the return of investment of a translation management system, let’s consider the ROI formula: ROI = (Operating Result/Capital Invested) x 100 The sum of all the above-mentioned costs represent the denominator (capital invested), because they represent the total invested capital. But what amounts do we put on the numerator (operating result), you might ask? The expected operating results. The expected operating results are the benefits offered by a TMS, i.e. efficiency savings. Think, for example, of the reduced number of hours necessary to localization staff to manage a project, and, in general, all the workflow management, control and monitoring activities. Think of the savings (in some cases up to 60%) in terms of reusing and repurposing previous translations with the help of translation memories. Also, think of the consistent quality you can achieve for your localization project by regularly managing and updating your terminology databases. The higher the automation, the greater the savings. For a clear overview, you have, of course, to hold a firm grasp of your company and its running costs. Here are some of the activities that can be automated: Automated workflows (including word counting, quote generation, project creation, job assignment to one translator or to a team of translators, and more) Maintenance and leverage of translation memories Optimized QA checks Reports and KPI tracking Invoicing (automatically create, send and track all invoices) By freeing up time, localization project managers can focus on new projects while the management can predict an increase in revenue. Of course, “prediction” is key here, because all the figures in the calculation of the ROI are, after all, predictions. In the end, the ROI of a TMS will have to be compared with the actual operational results. The higher the operating result, the higher will be the ROI, as well as the lower the capital invested, the higher the ROI. The secret to maximizing the ROI of a TMS resides, therefore, in the ability to strike the right balance between the activities where a company can maximize automation (and, consequently, the savings that can be achieved) and the costs of purchasing and operating the system. Let’s take Wordbee, for example: Wordbee is a cloud-based SaaS platform whose TCO is lower than an in-house platform, and therefore reducing the capital invested. What’s more, Wordbee offers a wide range of automation features that increase efficiency, free up time of your team and hence lead to an overall higher operating result.
当我们谈到翻译中的投资回报率(ROI)时,值得记住的是,这个概念涉及到用于某个特定项目或活动的所有资源,包括人力资源。 一个关键的技术资源是翻译管理系统(TMS)。 与本地化或术语(它们是过程,因此是无形的)的ROI不同,TMS(一种技术,因此是有形的)的ROI相对更容易计算。 最难的部分在于确定每一个组成部分和相关的(人力)资源。 在本文中,我们试图列出计算TMS的ROI的基本组件,并帮助您决定采取哪一个技术步骤。 所以,拿起纸笔,让我们开始吧。 #1总体拥有成本 最重要的元素是TCO,它代表总体拥有成本。 这是高德纳公司开发的一种方法,用于计算财务估算,以帮助购买者和拥有者确定系统的直接和间接成本。 对于TCO,有必要计算信息通讯设备的所有生命周期成本,从购买到安装,从培训到管理以及从维护到处置。 如果没有收购价格,而是定期收取费用或认购,则在预期租期内,相关成本将被纳入总体拥有成本。 #2运营支出 对于OpEx必须考虑与上述相同的因素,即运营支出,也就是管理一种产品,一项业务或一个系统所必需的成本,又称O&M(运营和维护)成本。 如果TMS被购买并安装在公司的服务器上,客户将承担相关的运营支出。 然而,许多公司选择在SaaS模式下运行TMS。 然后平台在云中可用:在这种情况下,对于客户端来说,运营支出将是微不足道的,而技术供应商将负责开发,实施,部署,升级和维护。 在某些情况下,供应商还会提供服务水平协议(SLA)以供签署。 除了成本效益,SaaS解决方案的其他明显优势是灵活性和可伸缩性。 #3人力资源 最后但同样重要的是人力部分,即操作TMS所需的工作人员:IT人员,本地化工程师和项目经理。 如果TMS存储在公司的服务器上,将由专门的IT人员负责平台的管理和维护。 另一方面,当基于云的TMS在SaaS模式下使用时,大多数管理活动可以简单地由大多数员工完成,也许他们拥有高级IT技能。 维护,升级和安全则将由供应商负责。 与本地化人员相关的成本应视为设置/配置成本,即所有职能活动的成本。 TMS的投资回报率计算 要计算一个翻译管理系统的投资回报率,我们来想想其公式: ROI=(经营收入/投入资本)×100 上述所有成本的总和代表分母(投入的资本),因为它们是所投入的资本总额。 但你可能会问,我们在分子(经营收入)上加多少? 预期的经营业绩。 预期的经营结果是TMS提供的好处,即效率节省。 例如,想一想本地化工作人员管理一个项目所需的小时数的减少,以及所有工作流程管理,控制和监视活动的减少。 想想在翻译记忆的帮助下重用和重新设计以前的翻译的节省(在某些情况下高达60%)。 另外,请考虑通过定期管理和更新术语数据库,您可以为本地化项目实现一致的质量。 自动化程度越高,节省的费用越多。 当然,要想有一个清晰的概览,你必须牢牢掌握你的公司及其运营成本。 下面是一些可以自动化的活动: 自动化工作流(包括单词计数,报价生成,项目创建,将工作分配给一名翻译或一组翻译,等等) 维护和利用翻译记忆 优化的问答检查 报表和业绩跟踪 开票(自动创建,发送和跟踪所有发票) 通过腾出时间,本地化项目经理可以专注于新项目,而管理层则可以预测收入的增长。 当然,“预测”在这里是关键,因为ROI计算中的所有数字毕竟都是预测。 最后,TMS的ROI将必须与实际运行结果进行比较。 经营收入越高,ROI就越高,投入的资本越低,ROI就越高。 因此,最大限度地提高TMS的ROI的秘诀在于能够在公司最大限度地提高自动化(以及因此能够实现的节约)的活动与购买和操作系统的成本之间取得适当的平衡。 以Wordbee为例:Wordbee是一个基于云的SaaS平台,其TCO低于内部平台,因此减少了投入的资金。 更重要的是,Wordbee提供了广泛的自动化功能,可以提高效率,释放团队的时间,从而带来更高的整体运营结果。

以上中文文本为机器翻译,存在不同程度偏差和错误,请理解并参考英文原文阅读。

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