The Global Market for eContent:

Applying the Transformational Imperative

Donald A. DePalma, Ph.D. President & Founder Common Sense Advisory, Inc.

LRC Dublin 13 November 2002

Copyright 2002 by Common Sense Advisory, Inc. All rights reserved.

Agenda
z Detail some interesting examples of eContentbased communications z Introduce the transformational imperative z Discuss how this affects communication strategies z Outline steps toward a more strategic approach to information management and distribution

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Theme of this presentation

eContent begs a bigger issue that most companies could manage much better that is, how can you establish one version of the truth?

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Hyundai says it misstated some horsepower ratings NYT, 9-11-02

z Hyundai marketing materials have overstated horsepower ratings for over a decade:
It affected a number of model lines 1.3 million vehicles Average overstatement was 4.6hp

z Hyundai said the errors occurred because it did not have a procedure to verify that preliminary horsepower matched actual horsepower. z Similar misrepresentations occurred with the U.S.market Mazda Miata and the Ford Mustang Cobra

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What happened at Hyundai (very simplified)

Engine Specs Various production events KR Owners Manual KR Shop Guides KR Diagnostics KR Marketing

Prototype on Dynamometer

T T T T

EN Owners Manual EN Shop Guides EN Diagnostics EN Marketing Consumers

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Will the wheels stay on? Forbes 7-8-02

z Malcolm Bricklin signed an agreement with Zastava Motor Works (Yugo) z Plan is to sell 60,000 ZMWs in U.S. in year one z MSRP US$5K10K, causing heady competition with Daewoo and Hyundai. z Note: Average price of a new car is $26,670; of a used car is $13,542

The ZMW S-Type?

M
Z

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What Malcolm will have to do (also simplified)

Supply chain

Marketing

Dealers

Consumers
English, Cambodian, Spanish, Vietnamese
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Demand chain

What Malcolm will have to do (also simplified)

Big issues for ZMW:

Branding Quality concerns Price point demographics Eastern Bloc reputation for service

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What Malcolm needs to do for his information systems

Concern ZMW wants various folks to know They fulfill various roles Detail
Drivetrain specifications; how to operate the moonroof; how to set radio buttons; what kind of oil to use

Dealers; buyers; auto writers; government regulators; OEM suppliers; SEMA designers

And they live and work Multinational supply chain; Serbian workers; Danube river transport workers; U.S. Port of Entry staff; U.S. in various places They interact with the info in various ways
Paper reports and pick lists; computers; phones; faxes; mail of both sorts; courier; telematics

distributors; U.S. buyers speaking multiple languages

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Or more generally
and repeat this process ad infinitum for multiple business units across multiple enterprises around the world with different consumables, participants, sources, destinations

In Malcolms head On disk In the field At corporate On paper In your head ...

Whatever form is required

Take something from here

and put it over here

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eContent flows beyond the enterprise

www.zmw-usa.com

ZMW S-Type engineering team

OEM telematics

Distributor in Mahwah, NJ

Factory in Kragujevac, SR

OnStar in Kiev, UKR

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But do companies think or manage this systematically?*

50 companies across a variety of industry sectors: z Companies spend an enormous amount of money, time, and resources creating original content z Theyre increasing the amount they spend on controlling home-language content by using structured databases, content management systems, and SGML/XML repositories z They spend a disproportionately small amount in preparing that eContent for use in different markets but nearly twothirds are spending more than they did last year z Surprisingly, theres very little integration or sharing among strategic business units, product lines, and country units * Results from 11/02 research Beggars at the Globalization Banquet
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Much information is mismanaged, thus making truth hard to establish

z Firms maintain multiple sources for the same reality:
This results information being inaccurate upon delivery, inconsistent between markets, and often out-of-date

z They seek to establish one version of truth through major investments in:
Data warehouses, business intelligence, analytics Enterprise application integration, ETL Collaboration and knowledge management Content management (broadly defined)

z Multilingual communications groups frequently fall outside the fold of mainstream efforts at information integration.

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Lavoisiers Law applied to information or a Grand Unified Theory of Content

Corollary 1: z eContent is any digitized information. z Where this information is stored should be an accident of the application rather than an inherent element of its existence. z To maximize return on eContent investment, information needs to be accessible anywhere inside the enterprise and throughout its supply and demand chains.

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Lavoisiers Law applied to information or a Grand Unified Theory of Content

Corollary 2: z The goal of communication of any kind is to transmit any kind of information from here to there while preserving its intended context and meaning. z The resultant transformations drive business, transmogrifying eContent into tangibles (e.g., revenue) or intangibles (customer loyalty). z Most transformations strand this information in silos or in applications not tied to mainstream updates.

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Step 1: What do you want to communicate?

z Marketing goal: Make people forget about the Yugo! z ZMW A high-value, reliable ride to buyers looking for a third or fourth car z ZMW An entry-level, ultra-low-cost first car to low-income ethnic buyers z ZMW A platform for full-bore slamming to tuners and SEMA aficionados z Each ZMW marketing campaign will use its own media mix to address its audience, thus requiring transformations for television, radio, newspaper, magazine, and maybe even owners manuals.
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Step 2: Where does truth reside?

z Identify content that is re-used across the company. z Find the original source for each idea. z Extract it from its hobbling application. z Allow this macro-content to span multiple business uses by transforming it.

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Corral the runaway cardinality caused by information silos and cul de sacs
z Within a single company: (C) = num(info-sources) * num(distribution-targets) * num(transforms) z Within a supply chain or trading value network: (SC) = (C1) * (C2) * (Cn)

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How should communications be Step 3: realized?

z Goal: Extend transformation to On*Star telematics:
Provide customer service access and owners manual information Troubleshooting (Quality is job 1.1 in former Soviet bloc countries)

z Add support to customer service systems:

Internationalize the underlying transaction, CMS , and CRM Translate strings, error messages, etc.

z Decide how much information will be served up to drivers:

Conduct major analysis and redesign driven by the different form factor and regulatory requirements Summarize content into a telegraphic format for smaller devices

z Translate Ukrainian into English

Test, deploy, update, maintain, and keep consistent with truth

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Simple transformations

Access Server Content Arbitrator Content Manager Device-independent, multilingual eContent

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Operational transformations
File Type
File type and storage structure changes such as rich text format to HTML; HTML to WML; WordPerfect to Word; SQL to Excel; SGML to CMS. Scheduled broadcast of data in different formats for uses such as demand chain, supply chain, online help, or intranet portal. Summarization or abbreviation of text from a fullscreen browser application to a cell phones small screen to in-car telematics. Changes in information required by different currency, payment, measures or other market-specific business issues and practices. Added features or modifications required by regulatory bodies, such as privacy statements or EU-mandated disclosures for distance selling and data usage.
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Syndication

Form Factor Locale Logistics

Regulatory

Marketing transformations
Tailored delivery of content depending on medium or if online, ranging from time- or click-actuated differences to profile-driven 1-1 personalization. Modification of content dependent on ideolect of target audience, such as the same info tailored to service manual or owners manual. Modification of content to meet expectations of different cultural enclaves, such as changes to reflect cultural or religious differences. Translation from Serbian to English, Cambodian, Spanish, and Vietnamese.

Customization Speech Register

Ethnicity

Language

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Step 4: Organize and train staff

z Define roles for workflow z Identify gaps in functional coverage z Train staff in business-focused localization z Ensure that staff and outsourcers comply with defined processes z Find visionary outsourcers to build out an architecture that wont betroth you to them:
Strategic partners Who have a seat at the table

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Step 5: Find the tools

z Decrease the individual tools managing stovepipes z Accelerate information shared across transnational companies and supply chains z Plan on the strategic triad of IP, XML, and Java:
IP-based specs such as WebDAV XML-based specs such as XLIFF, TMX Java-based service request infrastructure Emerging Web service specifications such as TWS

z Do not expect standards and tools to walk on water anytime soon

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Can various content management demi-solutions meet the challenge?

Category Database Document Web Content Multilingual Content Globalization What It Manages SQL data and highly structured XML content Productivity app files and increasingly Web content HTML, JPEG, scripts Some Offerings
IBM, Microsoft, Oracle, Sybase IBM, Documentum, FileNet Day, Empolis,Interwoven, MSFT, Tridion,Vignette Glides, SDL, Translations Global Sight, Idiom, Star, Trados
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Changes to original source content that requires translation

Criteria for evaluating G/CMS vendors for support of transformational logic

Criteria Openness Content transparency Localizability Localized tools & interfaces Linkage Importance Grade Be open to documented APIs Weak XML, XLIFF, SOAP for integration Support any content end-to-end Enable local business practices and expectations to be met Allow non-anglophone developers to develop applications Manage dependencies between macro content and derivatives Improving Improving Some Weak

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The destination: manageable interenterprise eContent

Dealer
government regulations
business rules

Marketing

database data ZMW macrocontent product info customer images information industry conventions

Supply chain partner

Consumer

t ar S n O

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Conclusions
z Companies manage much information in silos intimately tied to the software that manages it z Much of this eContent has greater unrealized value than where its currently managed or used z There are benefits both immediate and longer term in thinking about critical adaptations at the strategic level of the Transformational Imperative

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Examples of not managing eContent

z El moco lo puedes guardar en cualquier sitio z Laputa ha mejorado su seguridad y ampliado su interior... Cuerpo diseado para resistir impactos frontales. z Pajero a frequent onanist

Nissan Moco

Mitsubishi Pajero
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Thank you.
Don DePalma don@commonsenseadvisory.com

To buy the book, visit Amazon or Barnes & Noble. For information about our independent research, see www.commonsenseadvisory.com/lrc
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