understanding return on investment (roi) and total cost of ... · • understanding of total cost...
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Copyright © 2014, Asia Online Pte LtdCopyright © 2014, Asia Online Pte Ltd
Dion Wiggins
Chief Executive Officer
Understanding Return On Investment (ROI)
and Total Cost of Ownership (TCO)
for Machine Translation
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There will always be someone who says that they can do it cheaper – but at what cost?
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Just Add Water Upload Data
If it was really this easy,
don’t you think custom
MT success stories would
be everywhere?
Anyone why tells you MT is easy is either trying to fool you
or is incompetent.
Time, Effort, Skill and Investment are Mandatory
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• Understanding of Total Cost of Ownership (TCO) essential
and a means for businesses to assess both direct and
indirect costs and benefits related to any purchase.
• The intention is to arrive at a final figure that will reflect
the effective cost of purchase, all things considered.
• There is no specific formula for TCO, it is unique to each
organization and requirement.
• TCO should include ALL costs over the entire lifetime of
the investment, not just the initial costs.– Initial costs, recurring costs, replacement costs, end of life costs…
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Human Resources
Technical Resources
Operational Resources
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• Computer Hardware and Programs– Network Infrastructure Costs
• Hardware and Software (switches, routers, firewall, storage)
• Bandwidth (recurring service fees, excess bandwidth fees, data transfer fees)
• Storage Costs
• Setup Costs
– Server Hardware and Software Costs • Training Servers
• Translation Servers
• Backup Servers
• File Servers
• Database Servers
• Translation Management System Servers
• Setup Costs
– Workstation Hardware and Software • Translation Management System (TMS)
• Content Management System (CMS)
• External Adaptors and Connectors
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– Installation and Integration of Hardware and Software
– Purchasing Research
– Warranties and Licenses
– Annual Software Maintenance Fees
– License Tracking (Compliance)
– Specialist External Consultants
– Risks: susceptibility to vulnerabilities, availability of upgrades, patches and
future licensing policies, etc.
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• General Operational Expenses– Infrastructure (floor space – for equipment and personnel)
– Electricity (for related equipment, cooling, backup power)
– Testing Costs
– Pilot Costs
– Migration Costs
– Downtime, outage and failure expenses
– Diminished performance (i.e. users having to wait, diminished money-
making ability)
– Security (including breaches, loss of reputation, recovery and prevention)
– Backup and Recovery Process
– Technology Training
– Audit (internal and external)
– Insurance
– Corporate Management Time
– Legal costs for contracts
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• Long Term Expenses– Replacement
– Future upgrade or scalability expenses
– Depreciation of hardware and software investments
– Decommissioning
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• Machine Translation Costs– Customizing Machine Translation
• Initial Customization Costs (setup, one time, recurring) – Service Fees
– CPU Costs
– Storage Costs
• Improvement Costs (setup, one time, recurring) – Service Fees
– CPU Costs
– Storage Costs
– Translation Costs • Costs of translation
• Per word
• CPU costs
• Recurring service fees
• Licensing costs
• Storage costs (near term and long term)
• Editing and Proofing Costs (see Human Resources Costs)
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– Data Related Costs • Data purchase and licensing costs (i.e. purchasing translation memories from
TAUS)
• Data export and conversion costs
• Data preparation costs
• Data cleaning costs
• Data alignment costs
• Data gathering costs
– Software Development Costs • Integration Costs
• Custom Workflow Development
– Project Management Costs
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• Human Resources Costs – Salaries and Benefits– Information Technology Personnel
• Programmers / Software Developers
• Network Engineers
• Natural Language Programming / Computational Linguistics personnel
• Outsourcing Costs (for all of the above)
– Translation Personnel • Translators
• Editors
• Proof Readers
• Quality Assurance
• Project Managers
• Machine Translation Engineers
– Training • Course Costs
• Certification Costs
• Training and Ramp Up Delay Costs
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– Recruitment • Recruitment Costs
• Recruitment Delay Costs
• Testing and Qualification Verification Costs
– Management Personnel
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Language Studio™ Secure CloudSoftware-as-a-Service (SaaS)
Language Studio™ On-SiteIn Your Office / Data Center
Load On Demand Dedicated Servers Secure Managed SaaS Licensed Software
• Asia Online secure data
center
• Asia Online hardware
• Managed by Asia Online
• Servers shared across
many customers
• Asia Online secure data
center
• Asia Online hardware
• Managed by Asia Online
• Servers dedicated to
you only
• Your data center
• Your hardware
• Managed remotely via
VPN by Asia Online
• Your data center
• Your hardware
• Managed by your staff
with no outside access
Language Studio™ Secure Private Cloud
• Asia Online also offers all of the above deployment models in a tailored to fit Secure
Private Cloud option.
• Asia Online systems architects will design a configuration to meet your organizations
specific security, scale and functional requirements.
• Secure Private Cloud offerings are available in a wide range of geographic locations.
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Language Studio™ Secure Cloud - Hosted SaaS Language Studio™ On-Site Licensed Software
Computer Hardware and Programs
• Workstation Hardware
• Translation Management System (client / server)
Machine Translation Costs
• Customization Costs (initial, improvement)
• Translation Costs (words, human resources)
• Data Related Costs (export, validation)
Human Resources Costs – Salaries and Benefits
• Information Technology Personnel
• Translation Personnel
• Management Personnel
• Training
• Recruitment
Computer Hardware and Programs
• Network Infrastructure Costs
• Server Hardware and Software Costs
• Workstation Hardware
• Translation Management System (client / server)
• Software Maintenance Fees
Machine Translation Costs
• Customization Costs (initial, improvement)
• Translation Costs (words, human resources)
• Data Related Costs (export, validation)
Human Resources Costs – Salaries and Benefits
• Information Technology Personnel
• Translation Personnel
• Management Personnel
• Training
• Recruitment
General Operational Expenses
• Infrastructure (floor space – for equipment and
personnel)
• Electricity (for related equipment, cooling, backup
power)
• Backup and Recovery Process
• Technology Training
• Depreciation
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Month 1 2 3 4 5 6 7 8 9 10
Total Costs for 10 Months Service: EUR 82,357
It is important to understand all the costs
associated with MT, not just the basic costs
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• A performance measure used to evaluate the efficiency of an investment or to compare the efficiency of a number of different investments.
• To calculate ROI, the benefit (return) of an investment is divided by the Cost of the Investment; the result is expressed as a percentage or a ratio.
The Return On Investment formula:
ROI = (Gain from Investment - Cost of Investment)
Cost of Investment
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Productivity Gains: The increase in productivity for all human tasks within the translation
production process and workflow.
Profit Margins: The increase in profit margin for each project and progressive
improvements in profit margin as custom machine translation engines
mature.
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There are also a number of other less obvious ROI benefits such as greater consistency in
translations which increases customer satisfaction. Other business benefits relate more to sales
and ongoing business deal flow. These include:
New Deals: • New deals that would not be possible without machine translation such
as: New deals where machine translation was a component.
• New deals that are machine translation only.
• New deals where time was a critical factor that would not have been
possible with a human only approach.
Competitive Deals: • Time, quality and price are all factors that impact the competitiveness of
a project bid: Deals where you could offer a more competitive bid that
your competitors due to the use of machine translation.
• Deals that would have been lost to a competitor without the advantages
such as speed, terminology accuracy and writing style consistency that
good machine translation offers.
• Deals where the ability to be more flexible on pricing during
negotiations due to higher profit margins help to win the project.
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Copyright © 2014, Asia Online Pte Ltd
TEP• Human translators can typically translate between 2,000-
3,000 words per day in order to deliver a first pass translation.
• A single Language Studio™ custom engine instance translates at approximately 3,000 words per minute, and can run 24 hours a day 7 days a week.
• Our fastest customer is translating 2.4 billion words per day.
• What used to be the most expensive and slowest part of translation can be the lowest cost and fastest.
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TEP• High quality MT that has been customized by experts can
deliver output that requires little of no editing.
• Generic or lower quality MT will require more editing and can sometimes be more expensive and time consuming than human only.
• Types of error for MT differ from that of human translators
• Many Language Studio™ users report output where greater than 50% of content requires not editing at all.
Common Mistake: When content needs to be retranslated, not passing it through the editing stage. Editors should be making minor corrections only, not retranslating. Costs for this should be included in ROI calculations.
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TEP• Proofing with high-quality machine translation is a very
different experience to proof reading with lower quality machine translation output.
• As terminology in a mature engine is more consistent than with human translators, there is less work to perform in order to bring the quality to a final publication level.
• While the error patterns made by machine translation are different to those made by humans, by this stage in the overall translation process, the majority of the errors should have been eliminated.
• This process should be as efficient as or even more efficient than a human only translation process.
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Language Studio™ Google Bing Systran
BLEU Case Sensitive 71.86 40.21 35.71 26.67
BLEU Case Insensitive 76.71 41.27 36.73 27.52
F-Measure Case Sensitive 86.52 69.98 68.26 60.67
F-Measure Case Insensitive 88.93 70.62 69.06 61.06
TER Case Sensitive 21.75 44.08 46.36 55.30
TER Case Insensitive 19.93 43.81 46.00 55.18
Language Studio™ Google
Perfect, Exact Match to Reference 369 8
Perfect, But Different to Reference 310 270
Perfect and Better than Reference 30 -
Minor Edits Required (1-2 Edits) 230 111
Medium Edits Required (3-4 Edits) 61 291
Bad – Needs Retranslation - 320
1,000 1,000
Automated Metrics
Human Review
61% Needed
considerable work
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Word Costs Human Language Studio™
MT + Human
MT + Human
Translation 0.1700 0.0052 0.00014
Post Editing 0.0500 0.0500 0.1300
Proof Reading 0.0300 0.0250 0.0300
Project Size (Words) 1,000,000
Total Costs
Translation 170,000 5,200 140
Post Editing 50,000 50,000 88,400
Re-Translation - 54,400
Re-Translaiton Post Editing - 16,000
Proof Reading 30,000 25,000 30,000
TOTAL COSTS 250,000 80,200 188,940
Savings Analysis
Human vs. MT Value 169,800 61,060
Language Studio™ vs. Google Value 108,740
Human vs. MT % 68% 24%
Language Studio™ vs. Google % 43%
Only content that needed
to be 100% retranslated
Words to Break Even with Language Studio™ = 191,402
Total Savings for Full Word Pack Utilization = US$ 1,103,700
Rate will vary depending on
package purchased.
Typical package between
US$ 0.005-0.0002 per word.
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• MT + Human can deliver higher quality output than human only translation processes
• Cost reductions
• Faster deliverables
• Higher customer satisfaction
• Happier post editors
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• Directly linked to time to improve quality
• Faster improvement delivers faster ROI
• Many customers
recovers costs on
their first project
• Projects progressively
become lower cost
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Common Mistake: Measure quality of initial engine and determine costs from this engine.
• Many issues in data and formatting can only be seen once an engine has been customized
• One of the most important metrics is how quickly a custom engine can improve. This differs between vendors, engines, language pair and domain.
• Many of the most significant issues can be addressed very quickly.
• Metrics should begin once and initial correction/diagnostic phase has been completed and corrective action taken.
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Language Studio™ uses the Clean Data SMT approach with expert
human guided granular sub-domains.
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• Generic MT from Google, Bing, etc. offers unknown productivity gains and sometimes productivity loss due to lack of control.
• Competitors offer < 20-40% productivity gains due to domain centric and “dirty data SMT” customization model.
• Language Studio™ :– Targets of 150-300%+ productivity gains with granular sub-domain “clean data SMT”
approach.– Provides complete control of writing style, terminology and is mapped to target audience
reducing editing effort.
Language
Pair
Top-Level
Domain
Engines/Sub-Domains
EN-ES Automotive Honda Cars
Motorbikes
Toyota Marketing
Service Reports
User Manuals
Engineering Service Manuals
User Manuals
Engineering Service Manuals
Client Product Target Audience / Purpose
Cars
50%+ 90%+ 150-300%+
Customization Level:
Typical Productivity Gain:
Google/Bing
Quality Level
Typical Competitor
Quality Level
Generic
????
Domain
< 20-40%
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Engine Learning Iteration1 2 543 6
Publication Quality Target
Post Editing Effort
Qu
ali
ty
Post Editing Effort Reduces Over Time
The post editing and cleanup effort gets easier as the
MT engine improves.
Initial efforts should focus on error analysis and
correction of a representative sample data set.
Each successive project should get easier and more
efficient.
Raw MT Quality
Job
Du
rati
on
Human Resources
Human Translation
+ Human Post Editing
MT
+ Human Post Editing
Job Duration and Human Resources
MT with the same number of physical human resources
can reduce the time required to complete the job (job
duration) vs. human only.
MT + human post editing reduces overall project
duration by multiples of human only approach.
Engine Learning Iteration1 2 543 6
6
5
4
3
2
1
Post Editing (Human Translation)
MT Post Editing
Co
st P
er
Wo
rd
Post Editing Cost
MT learns from post editing feedback and quality of
translation constantly improves.
Cost of post editing progressively reduces as MT quality
increases after each engine learning iteration.
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• Language Studio™ Linguists will listen to your issues and help to identify the cause and apply a correction on your behalf.
• Users can focus on translation and when required the identification of issues.
• Skilled Language Studio™ linguists perform the more complex tasks of resolving the issues provided by clients.
• Your account manager will assign a linguist to work with you to quickly resolve each issue.
Skilled Language Studio™ Linguists
understand the complexities of
customizing high-quality custom
machine translation engines, so that if
you don’t want to you don’t have to.
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• Language Studio™ Linguists develops a specific roadmapfor improvement for each custom engine. – This ensures the fastest
development path to quality possible. – You can start from any level of data.
• We will develop based on the following:– Your quality goals– Amount of data available in foundation engine– Amount of data that you can provide– Quality expectations are set from the outset– Asia Online performs a majority of the tasks
base on your guidance• Many are fully automated
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Copyright © 2014, Asia Online Pte LtdAsia Online Automated
Client Role
Incremental Improvement
Select Language Pair
and Top Level Domain
Create Sub-Domain
Engine Project
Upload Data
Linguist Review
Create Training /
Quality Improvement Plan
Pre-Customization
Consultation with Client
Clean Data
Data Manufacturing
Client Data Validation
Training
Evaluate Quality
Fine Tune with Rules
Release to Production
Release to
Diagnostic Review
Machine Translate /
Post Edit
Create New
Project Version
Initial Customization
More Client
Data Needed?
Acceptable
Quality?
Evaluation & Release
Yes
No
Yes No
Asia Online Specialist
Key
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• Encouraged by TAUS and other DIY MT advocates tried their own
DIY MT engine– Hired a computational linguist
– Spent 6 months trying to build a quality system
– Result:• Inconsistent and unusable results
• Google was better quality (although also unusable)
• Considerable time, effort and cost spent
• Built a Expert Customized Engine with Asia Online– Worked with Language Studio™ Linguists who created a custom engine plan to
deliver high quality output and address issues
– Result:• In a very short period had an engine that was delivering high quality output
• Some output was as good as their human translators were producing
• Cost and time was greatly reduced compared to human only or DIY approach
• German -> Slovenian
• Technical Engineering
• Project of ~1 million words
http://www.asiaonline.net/EN/Resources/CaseStudies/IOLAR1.aspx
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Language Studio Workshop & Round-Table
Bangkok
Thailand
20-22Thursday, Friday, Saturday
February 2014
TM
Language Studio™ Advanced MT Customization Workshop
Machine Translation in Business Round-Table
� Empower your organization to control quality, terminology & writing style
� Become a Certified Language Studio™ Linguist
� Learn how to fully customize a machine translation engine
� Advanced customization techniques
� Hands on training with Language Studio™ tools
� Discuss with industry peers hot topics relating to machine translation
� Best practices in post editing and customization
� Return On Investment and much more…
http://www.asiaonline.net/EN/Resources/Events
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Copyright © 2014, Asia Online Pte LtdCopyright © 2014, Asia Online Pte Ltd
Dion Wiggins
Chief Executive Officer
Understanding Return On Investment (ROI)
and Total Cost of Ownership (TCO)
for Machine Translation