The Digital Transformation of a Business Model: The Impact of AI Technologies on a Translation Firm

Description

The Digital Transformation of a Business Model: The Impact of AI Technologies on a Translation Firm: Abstract

This four-part case outlines the transformation of Alexa Translations triggered by its acquisition of an AI firm. The preface sets the stage, providing information about founder Gary Kalaci’s vision and motivation. It also explains Alexa Translations’ business model prior to the acquisition of Yappn Inc. Chapter 1 begins with Kalaci’s 2016 decision to acquire Yappn Inc. and ends in 2018, when the deal was finalized. Chapter 2 covers 2019 to 2022, a period when Alexa Translations experienced significant growth following the launch of Alexa.ai; it ends with the prospect of a new vision. The third and final chapter provides an update on Alexa Translations as of October 2023. Just one year earlier, the translation industry had braced for yet another significant disruption: the launch of ChatGPT. However, that new technology had benefitted Alexa Translations, positioning it for further growth. Second, in keeping with the strategic role of Alexa.ai, the company would be restructuring its AI side to create a product team consisting of the organization’s top talent, who would be tasked with ensuring that the platform remained competitive. Although this news appeared to have been welcomed by most employees, a new junior translator had his doubts.

Teaching objectives

• Map evolving interdependencies in a business model while identifying elements that represent continuity.
• Analyze how evolving interdependencies are associated with organizational change and growth and whether that constitutes digital transformation.
• Understand how digitizing and/or digital transformation impacts a firm’s value proposition.
• Use a common analysis tool (business model canvas) to facilitate the comparative analysis and justify a strategic decision.

Multi-part case

• Part A
• Part B (included when buying a teacher license only)
• Part C (included when buying a teacher license only)
• Part D (included when buying a teacher license only)

Additional information

Teachers’ notes are available for university teachers only. Please contact the HEC Montréal Case Centre.