Globalizing Garmin: Finding the Way and Other Pointsdownloadcentre.sdl.com/SDL_GIM_Chicago-Garmin.pdf · • Strategic emphasis on market segmentation ... Minneapolis, MN Newport,

October 2009

Globalizing Garmin: Finding the Way and Other Points

Larry W. ArnoldManager, Consumer Technical Publications

October 2009Globalizing Garmin

Safe harbor statement

This presentation includes projections and other forward-looking statements regarding Garmin Ltd. and its business. Any statements regarding our future financial position, revenues, earnings, market shares, product introductions, future demand for our products, and our plans and objectives are forward looking statements. The forward-looking events and circumstances discussed in this presentation may not occur and actual results could differ materially as a result of risk factors affecting Garmin. Information concerning these risk factors is contained in our Form 10-K filed with the Securities and Exchange Commission.


Agenda

• Who is Garmin and what is GPS?• What are the business and GILT issues?• Why SDL International?• Where are we today?• When is the right time?• How do we plan to move ahead?


Who is Garmin?


Who is Garmin?

Ruby slippers, part of the Philip Samuels Collection of St. Louis, MO, on display in the National Museum of American History, Smithsonian Institution.


Who is Garmin?

Who is Garmin?• Begun in 1989 by Gary Burrell and Dr. Min Kao• Company name: GARy and MIN = Garmin• Shipped first product in January 1991• Company went public in 2000• Products for General Aviation, surveying equipment,

even a GSM cell phone


Who is Garmin?

Global supplier of navigation, communication,and information productsA history of successful growth

• Profitable every year since inception2008 Revenue $3.5B—up 10% from 2007

• World-wide presence and distribution• Vertical integration mitigates risk• Strategic emphasis on market segmentation• Global leader in each market we serve• Worldwide employment of more than 8,500 associates


Who is Garmin?Four business segments

• Auto/Mobile – PND, OEM and wireless solutions• Aviation – Integrated Flight Decks, panel mount and portable

avionics• Outdoor/Fitness – handheld and wearable products• Marine – sonar, radar, weather, 3-D marine cartography, networking

GPS for the masses• Since 1991, 55 million GPS-enabled units shipped• 2002 shipped 1.5 million units• 2007 shipped 12.3 million units, 5.5 million 4th Qtr. • 2008 shipped right at 17 million units

36% worldwide PND market share• #1 in PND market share worldwide*

*Canalys research Q2 2009


Unit Growth

9

October 2009Globalizing GarminMarket breadth

Prod

uct d

epth

Auto / Mobile Aviation Marine Outdoor/Fitness

Who is Garmin?


Who is Garmin?Number of employees

8,9938,435

4,286

3,0342,484

2,0201,5751,3291,297

1,042908851759614446278234119458

8,9938,435

4,286

3,034

2,4842,020

1,5751,3291,2971,042908851759614446278234119458


Research & DevelopmentCalgary, AlbertaLos Angeles, CAMinneapolis, MNNewport, ORSan Francisco, CATempe, AZ

12

Olathe, KS (Headquarters)

•Primary R&D Center

•Aviation Mfg. and Certification

•Sales, Distribution, and Support for the Americas

Taiwan

Shijr, Jhongli & LinKou

Consumer Mfg.

•R&D

•Sales, Distribution, and Support for the Pacific Rim

Salem, OR

•Aviation R&D

•Aviation Mfg.

Chicago, IL Retail Store

UK Headquarters

•Sales and Support for Europe, Africa and Middle East

European DistributionBarcelona, SpainBilldal, SwedenBrussels, BelgiumCopenhagen, DenmarkGraz, AustriaLisbon, PortugalLohja, FinlandMilan, ItalyMunich, GermanyParis, France

8,500 total employees

Sydney, Australia

•Distribution

Beijing, China

•Sales & Support

Who is Garmin?

Grand Cayman (Parent Company)


Building the Garmin Brand• High exposure TV, press and

sponsorship campaigns in Europe and North America

• Garmin created dealer-blended point-of-sale and merchandising

• Market saturation in outdoor, automotive, aviation, fitness and marine

• Global on-line presence Garmin blog

• Title sponsor of Team Garmin-Slipstream at Tour de France

• Chicago storefront location

13

Who is Garmin?


Retail Showcase• Located on the “Magnificent

Mile” at the corner of Erie and Michigan Avenue in Chicago

• Three-story, 15,000 square feet showcase for products and technologies

• World’s first and only retail outlet dedicated to GPS navigation

• High-tech, high-touch consumer experience in one of the highest foot-traffic retail locations in North America

14

Who is Garmin?


Who is Garmin?

Who is Larry W. Arnold?• Manager, Consumer Technical Publications (CTP)

Began career with words as a newspaper Sports Editor

15 years later started technical communications phase

Joined Garmin 2002, 670 employees in Olathe, 1,400 worldwide

Named CTP team leader in 2003 with six; manager in 2007

Currently three departments with 21 technical communicators


What is GPS?

Garmin’s Pair of Slippers?Globalization Per Se?Garmin’s Private Satellites?

Global Positioning System• Launched by U.S. Department of Defense• Three key parts

Satellite systemControl and monitoring stations on earthGPS receivers owned by users

• No subscription fee

Waypoint is a key term for marking a location


What is GPS?


Business issues?

Garmin’s strategy• In-house design and manufacturing, distribution, marketing,

sales, customer support• Control the entire process• Create jobs• Utilize inventory as a business tool

Vertical integration • High levels of innovation, flexibility, and responsiveness• Manage risk• Reduce cost• Higher growth and stability


Business issues?

In 2002 BC? (Before Consumer Technical Publications)

• Time to market – 22 new productsiQue 3600 PDA announcedShip with EFIGS in the box

• Common message for common userNo longer a slide-rule-carrying geekWal-Mart, K-Mart, Target shoppers

• Control issues• Localization – not just in Kansas anymore!


GILT issues!


GILT issues!


Business issues?

In 2009?• Time to market – 70 to 75 new products each year• Common message for common user • Control issues • Localiz(s)ation – not just in Kansas anymore!• Global branding• GILT

Globalization, Internationalization, Localization, TranslationNo longer focused on just translation

• Global economy recovery


GILT issues!


GILT issues!


GILT issues!


GILT issues!


GILT issues!


GILT issues!


GILT issues!


GILT issues!


GILT issues!


Business issues?

Other departments• Software Engineering

Embedded software stringsMore languages than even documentation

• Web teamThousands of pagesDistributor-owned Web sites (e.g. www.garmin.de)Constant translation for supported Web sites

• Marketing/Communications Legal communicationsPress releasesPackagingBrochures/advertisements


Why SDL International?Research began for both Garmin and college

• Working on Master of Science in Administration degree• Pointing to sdl.com• Master’s project: “A Cost-Effectiveness Study of Documentation

Globalization at Garmin International.”• Multi-tasking (job and project; project got done first)


Why SDL International?

-$100,000

$0

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

2002 2003 2004 2005

Ven.1 Ven.2 Ven.3Ven.4 Ven.5 Ven.6Grand Total +1yr


Why SDL International?Created by: Larry W. Arnold

Criteria Weight Alt-1 Alt-2 Alt-3 Alt-4 Alt-5 Alt-6A. Tools 25% 1 5 3 2 4 6B. Personnel 25% 6 4 2 1 3 5C. Finances 30% 6 4 3 2 1 5D. Scalability 20% 1 5 2 3 4 6 Weighted Scores 100% 3.75 4.45 2.55 1.95 2.85 5.45

Weighted Scoring Model for Translation Alternatives

Weighted Score by Alternative

0 1 2 3 4 5 6

Alt-1

Alt-2

Alt-3

Alt-4

Alt-5

Alt-6


Why SDL International?Project conclusion:

“…most cost-effective alternative is…a combination…a contractual relationship with one or more translation companies…(and) a centralized coordinating group in Olathe…upfront costs to Garmin are minimized, and other costs remain with the vendors.”


Why SDL International?

Key comments from SDL International (2006)

• Without technology, translation costs will rise directly in line with the number of words translated

15-25 languages and 2.5M words per year by 2008 is not unrealistic

• Without technology, Garmin cannot support a consistent approach through the whole company

• Leverage linguistic and platform based technology in support of globalization

Linguistic technologies will decrease pure translation costsPlatform capabilities will maintain consistency of process


Where are we today?

Technology shiftFirst key technology step outside Garmin norm

• Just three years ago attended GIM in San Jose, CA• Translation Management System (SDL TMS) pilot project

started January 2007; went live three months later• SDL hosts TMS in the UK• Authoring tools brought challenges• Writer “tweaks” affect the TM


Where are we today?New departments at Garmin

• Language ServicesMultilingual project managersFacilitate enterprise-wide acceptanceReviewing packaging and documentationLocal administrators for TMS

• Three in Consumer Technical PublicationsTwo departments authoring in EnglishLocalization department focuses on localizationStyle Guide and Handbook moved to Wiki

• Working together Creating Glossary from various departments in GarminCreating terminology database


Where are we today?After 18 months (30 months):• Number of words processed

9,179,387 (14,882,094)• Average leverage

From TM (all languages): 38% (49%) From TM (FIGS): 50% (64%)

• Average translation cost savingsAll languages: 42% (51%)FIGS: 47% (54%)


Where are we today?Global Information ManagementThree-phase world

• Global AuthoringTools tied: using InDesign CS2, want a native XML Editor

• Global Content ManagementStorage and transferChoose tools: have the Web and TMS, want a CMS


Where are we today?

Authoring Tools

Global ContentManagement Localization Global PublishingGlobal Authoring

Repositories

HTM

L

GMS

Prin

tPD

F

TMTerminology Mgmt

Workflow

VERSIONING / REUSE

WORKFLOW

DITA

Authors Reviewers Project Managers

Localization PMs

Localization Reviewers

TranslationReviewers

GlobalPartners

Global Customers

Ren

der

ing E

ngin

e


Where are we today?Three-phase world

• Global Authoring• Global Content Management• Global Publishing Formats

Format of source files• OEMs, Distributors• Print in Taiwan, in box

PDFs• Web site(s)• Print On Demand

HTML, CHM, GML (on units)Podcasts?Twitter? (not likely)


Where are we today?Savings is in XML

• SDL’s recommendation• Master’s Project recommendation

Remember early SGML:“Sounds Good, Maybe Later”

Had a similar take on XML: “eXtra Medium Large, one size fits all”


Where are we today?Authoring Content Management Systems Rendering ToolsAuthoring Style Tools


When is the right time?It all depends…• Spent most of 2008 addressing our Request for Proposals (RFP);

management says decision to come later• Spent most of 2009 defining pilot projects, setting rules for moving

content writers to Structured Authoring/DITA

…never an easy time.• New markets• Acquisitions• Being acquired• Legal concerns


What to consider?Four areas

• ToolsAre the required tools available off-the-shelf?Follow “open system” platforms, such as XML?Translation memory databases in house or hosted?Is the use of consistent terminology improving?

• PersonnelDo you need:

Administrative assistant?QA person/project manager?Desktop publishing person?

Is the focus on the core business of authoring?Do you continue to hire the highest quality technical writers?Do you educate or train to produce globalized documentation?


What to consider?• Finances

Is the return on investment (ROI) high? What is the break-even point for the “next step up”? What are the next steps for enterprise-wide globalization?

• ScalabilityDo the tools and personnel meet both current needs and anticipated growth of the product lines?Are they flexible enough to integrate with enterprise-wide globalization?What are the synergies and return on investment (ROI) potential for enterprise-wide tools and processes?


How to move ahead?• Stay flexible• Maintain vendor relationship with SDL• Maintain ratio of writers/engineers• Continue move to structured authoring/DITA• Stay focused on deliverables• Implement best practices of world-class leaders

And, of course…


Finding the way homeRuby-red SlippersFollow the Yellow-brick Road

GPS - Garmin’s Pair of Slippers“Follow the highlighted route”


Safe harbor statement

This presentation includes projections and other forward-looking statements regarding Garmin Ltd. and its business. Any statements regarding our future financial position, revenues, earnings, market shares, product introductions, future demand for our products, and our plans and objectives are forward looking statements. The forward-looking events and circumstances discussed in this presentation may not occur and actual results could differ materially as a result of risk factors affecting Garmin. Information concerning these risk factors is contained in our Form 10-K filed with the Securities and Exchange Commission.


Contact information

Larry W. Arnold, ManagerConsumer Technical Publications

Garmin [email protected]


Contact information

Larry W. Arnold, ManagerConsumer Technical Publications

Garmin [email protected]

"The Wizard of Oz (1939 film)," Wikipedia, The Free Encyclopedia, http://en.wikipedia.org (accessed December 11, 2007).

Ruby slippers, part of the Philip Samuels Collection of St. Louis, MO, on display in the National Museum of American History, Smithsonian Institution.

Documents

Globalizing Garmin: Finding the Way and Other Pointsdownloadcentre.sdl.com/SDL_GIM_Chicago-Garmin.pdf · • Strategic emphasis on market segmentation ... Minneapolis, MN Newport,