June 4, 2017

Collaborative business model

Lund Translation Team

Collaboration as a business model

Traditionally, the translation industry has two business models: the direct model and the intermediary model.

Under the direct model, the client and translator are in direct contact. Under the intermediary model, an intermediary, usually a translation agency, is involved. Both business models have their advantages.

                                                                                                            The direct model
Direct model
enables the translator to communicate directly with the client and user of the translation without having to first go through an intermediary. This makes it easier to ask questions, leave comments and resolve complex issues. The translator performs each step of the translation process in close collaboration with the client, from the initial assessment of requirements, needs and conditions through the writing process including terminological and stylistic clarifications to post-delivery follow up. The model thus creates a better business relationship with a long-term and loyal perspective, which promotes profitability and quality. The transaction costs are also relatively low.

The intermediary model’s
Third-party model
major advantage is the capacity a larger organization can provide. This may involve technical resources, high volumes in short time and synergies via combined project management for multiple languages. The greatest disadvantage is that it prevents direct contact between the translator and user. The model also has to account for the high transaction costs of the intermediary.

                                                                                                     The collaborative model
Collaborative model
is the business model employed by Lund Translation Team. Collaboration as a business model combines the advantages of the two conventional models while discarding their disadvantages. We combine the capacity of a large organization with the advantages of direct contact. The collaborative business model also has several other advantages, such as the lowest transaction costs on the market via the lean translation method.