The offices of the German-based tech company, Das, are buzzing as the organization works to release a new global HR (human resources) software program. Localization teams work hard to translate the software into English, French, and Arabic for customers with offices in multiple locations around the world.
Everything seems to be going well after the launch of the software, and the staff in the home office celebrates when the first product inquiries come in — but soon realize that simply translating the software into different languages was not enough.
Complaints arrive from customers that purchased the program. In some of their offices located in the Middle East, the software is virtually unused, as many of its entry fields will not accept text that reads from right to left. To make matters worse, the scheduling feature of the software cannot accommodate the Sunday-through-Thursday work weeks prevalent in that region of the world.
To relaunch the software successfully, Das forms special strategy teams to further accommodate a wide assortment of language requirements. In addition, the company must adopt other aspects of the software to local use as well as to country-specific hiring practices and laws.
The whole problem might have been averted if Das had thought about the software as multiple local systems rather than a single global platform.
There are many reasons why companies might want to introduce a global system, IT (information technology) change, or global platform. They may wish to standardize processes, even across national borders. They may wish to integrate technology or organizational systems across offices and countries. The organization may also want to establish norms across company culture, and a global platform or system is one way to facilitate that.
Localization refers to the process of adapting content, technology, or a product to a particular market or regional location. Differences in laws, languages, business practices and cultural values are some of the typical triggers for localization efforts.
It is important to emphasize that localization is not equivalent to language translation. While it is certainly important to ensure that a global ERP (enterprise resource planning) software implementation plan includes translation of the key text into local languages, for example, this alone is not enough to ensure implementation.
Implementing a global system or platform and localizing a product or offering mean tailoring entire packages and processes for specific markets. Thus, in addition to having translators work on user guides and other written materials, local consultants, marketing experts, engineers, legal advisors, and others should be consulted to ensure that products meet multiple needs in a given target market.
Because technology and the Internet are commonplace in modern industrial societies, it can be tempting for IT project teams to see culture as translatable. A website is a website, whether viewed by a customer sitting in front of a computer in Canada or China. However, it is important to emphasize that global experiences are still essentially local.
Even seemingly ubiquitous technologies may not be adopted seamlessly by international markets without a strong localization strategy. For example, the need to use a search engine to navigate the Internet might seem like a universal technology demand. Yet, while the world may be using the Internet, the way local audiences navigate via search engines varies. For example, in China, the top four search engines are all produced by Chinese companies, with Baidu being the most popular. Baidu feels natural to native Chinese speakers; it addresses the unique language, culture, and technology needs of that part of the world.
Why Is a Localization Strategy Necessary?
It is not enough to launch a new international release or to commit to product or service localization. Localization efforts are only successful if local partners and users adapt to the new technology or offering. While training can be beneficial, many other factors are involved in ensuring that the new offering is attractive enough to adopt at the local level, especially with other alternatives present.
A solid localization strategy can mitigate against false confidence when taking products across national boundaries. In one survey, for example, 40% of 300 executives at international organizations felt that their product or service offerings were stronger than local options when it came to addressing customer needs and the operating environment. Yet research has shown that high-performance global companies are generally not as effective as local companies at forging relationships with local partners and governments, implementing ideas and products, creating a shared mission or vision, and encouraging creativity and innovation.
The Cost of Not Addressing Cultural Localization Needs
International companies have established, often through trial-and-error, the importance of strong localization plans. Uber, for example, decided to expand into China, and the move was expected to work seamlessly. Surely the popular ride-share app would be successful in a market of busy cities and multiple transportation options.
However, Uber lost $2 billion over two years and eventually surrendered to the local competitor, Didi Chuxing. As Uber founder Travis Kalanick noted, “Each city is unique in its transportation pain points, its density, its transportation alternatives, regulation, even its transportation culture.”
In addition, China has its unique laws, tastes, and business culture. One key difference is that business is less transactional and more focused on relationships. While Kalanick visited China frequently to address this, Uber did not partner closely with an established local company when launching its services. By trying to enter the market alone, Uber was unable to overcome competition from Didi.
HR leaders of international organizations face similar challenges in China and elsewhere—especially in terms of managing software, systems, and technologies in a global context. One way to address such challenges is to develop strategies that create networks of knowledge rather than a centrally based system. Instead of a top-down model, HR can create a system of business partners with the authority to operate at the local level, distributing responsibility and function.
Company mission, vision, and even basic systems can provide common ground, while decision making at the local level allows offices to address regional needs, remaining engaged with the larger international mission and using standardized software to negotiate challenges internationally and domestically.
Companies with a local presence may see 30-40% higher returns when compared with companies working with a more centralized model.
There are many localization challenges for international organizations:
Strategies to Improve Localization Efforts
Your team can strengthen your localization strategy by:
- Improving the cultural intelligence and agility of your project team. Rather than just ensuring that your team has the language skills to excel globally, your team must also have the in-depth cultural knowledge and understanding needed to notice and address regional differences. Working with Diverse Styles, a scalable learning solution from Aperian Global®, addresses this consideration.
- Making yourself memorable for the right reasons. Consider your launch from every angle and question everything. Does your logo or company name have any potential negative connotations within a local culture? What expectations do local users have of your industry or of a specific technology?
- Working locally. Work with local experts, consultants, and partners to ensure you have the pulse of local needs and approaches.
- Learning and integrating. Take a look at your current efforts to learn from them, and examine both local and global competitors for clues about launches and offerings that have worked and those that have not. Consider, also, which features and technologies can be introduced across borders. If a competitor does not offer a specific strategy, take a look. Is the feature not included for legal or cultural reasons? If you were to offer that feature, would it be viable and would it offer an advantage in that specific market?
- Becoming a local. Stay current with events and local concerns. Develop a strong local presence. When a natural disaster or political issue impacts a region, it is affecting your local office, partners, and clients. Understanding the issues and being able to react appropriately helps you develop your brand locally and become a stronger global corporate citizen as well.
- Getting technical. Consider local technical factors. Are local users mobile, or are they using an older network that will not work with more intensive applications? What is the connectivity like? An online experience will be very different depending on whether a target audience is using Wi-Fi, 3G or 4G. Will you need to allow for multiple languages in a multilingual country, such as India? Will translations mean longer blocks of text, affecting how menus and pages load? Work out technical issues in conjunction with localization considerations.
- Focusing on the details. When launching global e-learning resources, localization can mean that you need to notice and adjust small details. Showing the wrong style of street sign on an image or mentioning the name of an area local users are not familiar with can make users feel less engaged with your offering.
What Needs to Be Localized?
Digital and IT product development mean focusing on the localization of:
- Graphics. Make sure there are no unintentional connotations in graphics for the local market. A “thumbs-up” sign, for example, can mean something positive in North America and something very offensive in other parts of the world.
- Content. Content should fit the consumption habits and tastes of the local market. For example, if a company adapts a food app for a local market, it should reflect the menus and dining preferences of the local market, including when and how meals are typically consumed.
- Local laws and regulations. Ensure any launch meets privacy, cybersecurity, opt-in, and other laws and regulations.
- Design and layout. Layout may need to take into consideration the size and amount of text as well as how local readers read. Colors can also play a factor in design. In some countries, colors have specific meaning or connotations. In China, for example, red is the color of luck while white is associated with death. In North America, neon colors may be seen as inappropriate for white-collar websites and apps.
- Local formats. Local telephone numbers, addresses, and date format should be adapted to local standards.
- Local measurements. Local units of measure and currencies make software or technology more accessible to local users.
In addition, it is vital to embed cultural values into the design and process flow. For example, when people from countries in which Confucianism has a strong influence (such as China, Korea, Vietnam, and Japan) are asked to rate products or services on a graded scale, they tend to avoid the extreme ends of the scale. When designing software or other solutions for those markets, it is important to adjust assumptions about online reviews.
Examples of Successful Localization Strategies
Abiomed is an American company involved in creating medical products designed for heart failure patients. When the company needed enterprise software, they had just acquired Impella, a German company, and the organization had plans for further expansion. This led the company to choose SAP over Oracle and other competing products. SAP was able to help Abiomed succeed internationally by offering localization features such as conversion to local currencies.
In the first decade of the 2000s, McDonald’s initiated a commitment to global e-learning localization efforts by launching a pilot training program for new and current employees. The material was developed in English and localized for various markets, with careful attention to content implications, local culture, social implications, local business values, and economic sensitivity. As a result of this localized effort, McDonald’s reduced training costs by close to 50% while improving training effectiveness.
Succeed Internationally With Aperian Global
Clearly, IT teams face challenges, but also opportunities, in localization efforts and when distributing new ideas within an organization. Whether you are implementing HR software across global offices or want to launch a new tech product around the world, localization is a big part of the process.
Aperian Global is a leader in scalable solutions for industry-leading companies seeking to succeed globally. Our offerings can assist you in gaining the cultural agility and intelligence you need to thrive globally and locally.