future proofing your tech strategy and ......future proofing your tech strategy and investments...
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FUTURE PROOFING YOUR TECH STRATEGY AND INVESTMENTS – THE 6 THINGS LAW
FIRMS NEED TO GET RIGHT NOW
Derek Southall, Founder Hyperscale Group Limited
1st October 2019
www.hyperscalegroup.com
Who are Hyperscale Group?
Derek SouthallFounder
• Advisory services relating to Innovation, Digital and Technology • We work for in house legal team, law firms, accountants, strategic
consultancies, major corporates, venture capitalists and litigation funders• Led by former global law firm equity partner, head of strategic development,
compliance, technology, innovation and digital and sales/sector partner• Helped drive law firm growth from £27mil to £450mil• Ranked by FT as one of top 3 most innovative lawyers in UK based on client
feedback• Took firm to be ranked by FT as second most innovative in Europe • Legal Business Most Enterprising Law firm and Legal Technology Team of the
Year • Former client partner to multiple household name Major Corporate clients• Founder member of ww.litig.org and www.intuityalliance.com • Advisory Board member of the Institute for Global Innovation
(400 multi-disciplinary academics trying to solve the world’s biggest problems)
Our world – a 60 second summary!
THE LEGAL MARKET - STORM CLOUDS
THE BIG FOUR
ALTERNATIVE PROVIDERS
THE PUBLISHERS
LEGAL TECH
START UPS
TECHNOLOGY PROVIDERS CYBER
THREATS
EMERGING TECHNOLOGIES PEOPLE
SOME STATS…SETTING THE SCENE
▪ $850 bn Global Legal Market ▪ £33 bn UK Legal Market ▪ $10.7 bn ALSP Market ▪ $15.9 bn Legal Tech Market▪ $9.6 bn Corporate Legal Tech spend ▪ 160,000 UK lawyers▪ 1,300 UK ABS▪ 12,000 UK law firms▪ $14Bn investment in PropTech
▪ 713% inc in legal tech inv
▪ 29,900 In House Lawyers
▪ 905,753 in Big 4▪ $43.2bn
Deloitte TO▪ £6.1bn
SOME STATS…SETTING THE SCENE
▪ $850 bn Global Legal Market ▪ £33 bn UK Legal Market ▪ $10.7 bn ALSP Market ▪ $15.9 bn Legal Tech Market▪ $9.6 bn Corporate Legal Tech spend ▪ 160,000 UK lawyers▪ 1,300 UK ABS▪ 12,000 UK law firms▪ $14Bn investment in PropTech
▪ 713% inc in legal tech inv
▪ 29,900 In House Lawyers
▪ 905,753 in Big 4▪ $46.2bn
Deloitte TO▪ £6.1bn
So how are we dealing with our new
world? How is our technological
focus changing?
Document and e mail
managementCRM
Finance system and conflicts
CASE AND MATTER MANAGEMENT
Sharepoint/ dashboards
Reporting Portals
TYPICAL LAW FIRM MACRO SYSTEM STRUCTURE“L
AR
GE
” LA
W“M
ED
IUM
” L
AW
ALL
Document and e mail
managementCRM
Finance system and conflicts
CASE AND MATTER MANAGEMENT
Sharepoint/ dashboards
Reporting Portals
TYPICAL LAW FIRM MACRO SYSTEM STRUCTURE“L
AR
GE
” LA
W“M
ED
IUM
” L
AW
ALL
The background – anyone disagree?
6 Core Areas to Get Right
Operating Platform
Investment
Team
Capabilities
Product
Risk
6 Core Areas to Get Right
Operating Platform
Investment
Team
Capabilities
Product
Risk
“TROPIC”
6 Core Areas to Get Right
Operating Platform
Investment
Team
Capabilities
Product
Risk
Digital Basics
“The Digital Onion” – The Challenge for law firms?
Enabling Technology
Digital Futures
INCREASED DIFFICULTY, LOWER ROI, NEED TO PARTNER, LOW CODE PLATFORMS
“REAL LEGAL TECH”
CLIENT REQUIREMENTS
DATA TWO WAYTRANSFER
MULTIPLE PLATFORMS
Can our suppliers help? Does Legal IT Actually Exist????
Sole Market
How many markets do you need to
support?
Full Service…with powerbases…
The Multiple Challenges in Driving Change
IT Systems Operating Model - The Future Cradle to Grave Process
Fee Earning Groups
Finance System
CRM System
Document/Email Management
Firm Wide Matter/Case Management
Open CloseMatter
FinishMatter
CommenceMatter
Process, data inception, compliance and data display
Case/matter management turned on when needed Process, data inception,
data display
E work processes and matter management inception……. or ERP?
Multiple legal configurations (and KM capture/feeds)
Support Teams
Fee Earner Matter
Matter, Client and Sales Centric Views where needed (Sharepoint?)
Team Management Dashboard
Team Management Dashboard
LOW CODE: OPERATING PLATFORM, REPORTING, DASHBOARDS, WORKFLOW AND DATA IMPORT/EXPORT
Plus we need to solve other
things too which affect the operating
model
The Need for Dashboards and Immediate information
Scenario based Information
Management
PropTech
LegalTech
Construction Tech
Pensions
Tech IPTechInsurance
Tech
Contract Tech
Corporate Tech
Digital Tax
DeathTech
REMEMBER: LEGAL TECH IS NOT A “THING” BUT A COG
IN A NUMBER OF WIDER BUSINESS PROCESSES AND
PLATFORMS
6 Core Areas to Get Right
Operating Platform
Investment
Team
Capabilities
Product
Risk
IT Costs? A reality check
IT Costs – What should we be spending?
1. Conventional Metrics2. Don’t be duped and the spiral of death3. What do you want to be? (Goldman Sachs)4. Cloud – short and long term5. Microsoft6. Diminution of the tech stack/death of the point solution (“apart
from people with a real need”) 7. Completely new structure and focus for IT team8. Product – internal and externally focussed9. Cost allocation?10. International….. 11. What capabilities will you need?12. What about MarketTech and Platforms?
IT Costs – What should we be spending?
KEY TAKEAWAY - IT IS NOT JUST WHAT YOU SPEND BUT HOW YOU SPEND IT – IN PARTICULAR LOW CODE, CORPORATE
SOLUTIONS, DIMINUTION OF THE TECH STACK AND YOUR TARGET OPERATING MODEL.
6 Core Areas to Get Right
Operating Platform
Investment
Team
Capabilities
Product
Risk
IT Team of the Future?1 The problem to date….progress in the last 20 years2 Redefine purpose? – also job is “not to do things but to make the right things happen”3 Cloud/Office 365 – different skills?4 Where are you playing on the spectrum: Infrastructure to enabling tech to disruptive tech5 Product launch 6 Clients 7 MarketTech – eg Eversheds8 Consumption and commercials 9 Captive ALSPS – Greenberg, Eversheds and BCLP10 New roles- Datascience, Smart Contracts, Proptech?
6 Core Areas to Get Right
Operating Platform
Investment
Team
Capabilities
Product
Risk
The Era of Capability
KEY QUESTION: What capabilities will you need both now and in the future and what is the most efficient
way of acquiring them without increasing IT headcount tenfold?
The Era of Capability
KEY QUESTION: What capabilities will you need both now and in the future and what is the most efficient
way of acquiring them without increasing IT headcount tenfold?
BEST IN CLASS CAPABILITY?
STRONG CAPABILITY?
ALSO: CAPABILITY
CHOICES
Don’t believe me?
Document Technologies - example systems
Drafting
• Systems which automate contracts from the answers to questionnaires.
• Can also be used to decentralise contract production and can be linked to other systems such as Salesforce.
Review
•Tools which enable contractual terms of incoming contracts to be analysed and/or data points to be extracted and riders to be produced.
Signing
•Technologies allowing companies to manage the authorisation, workflow and execution of documents digitally.
Extraction & Analysis
•Tools which review, screen and extract data from large quantities of documents.
Lifecycle Mgt
• Tools to facilitate the filing and management of documents and e mails, to manage key data points and copies of contracts. There is a wide variety of scope and focus amongst these tools.
DocQMiner
$43.2 bn $34.28 bn $41.28 bn $28.96 bn
Deloitte’sLegalTechTools…
How are corporates approaching the
building of capability?
Legal Operating Model – The New TechStack?
Financial Operational Sales/CRM
--------------------------------------------------------------------------------------------------------------------------------
CAPABILITY STACK
NEW CAPABILITY REQUESTS
NO TO: - NEW SYSTEMS- POINT
SOLUTIONS- SYSTEM VERUS
REQUIREMENT REQUESTS
- NEW VENDORS
TECH ROADMAP
6 Core Areas to Get Right
Operating Platform
Investment
Team
Capabilities
Product
Risk
6 Core Areas to Get Right
Operating Platform
Investment
Team
Capabilities
Product
Risk
6 Core Areas to Get Right
Operating Platform
Investment
Team
Capability
Product
Risk
“TROPIC”
What this means for law firms?
This Photo by Unknown Author is licensed under CC BY-NC-ND
And so to Conclude? Some positives• Huge opportunities - $850bn undigitized
market• Where there is change there is opportunity • Strong margins • Growing ALSP market and partners• Long term Contracts • Products and ARR• Phenomenal tech tools available • Legal Profession are resilient • Governing law and English Legal System• Corporate Finance Opportunities• Platforms bring simplicity • THERE ARE ANSWERS TO ALL THESE ISSUES
“TROPIC”
6 Core Areas to Get Right
Operating Platform
Investment
Team
Capabilities
Product
Risk
“TROPIC”
