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The Digital Transformation of a Business Model: The Impact of AI Technologies on a Translation Firm (A-D)
Case 9 40 2024 002A-D
Case published in the International Journal of Case Studies in Management, Vol. 22, No. 1
Languages : 
  • English
Keywords: 
  • Business model innovation,
  • AI,
  • LLM,
  • Digital transformation,
  • Organizational change,
  • Professional services
Year of production : 
2024
Registration date : 
2024-02-16
Teaching notes included : 
Yes
Case document count : 
4
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.

Primary domain : 
Management  - Strategy
Secondary domain : 
Information technology
Sectors : 
  • Professional, scientific and technical services
Source : 
HEC Montréal
Type : 
Traditional case (Descriptive or analytical case)
Type of data used in the production of the case : 
Factual data that is not public wherein the identity of the company/person is disclosed
Event location : 
Canada and world
Year of start of the event : 
2016
Year the event ended : 
2023
Business size : 
Small- and medium-sized
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.