How Data Will Enable the Shift Towards the Productisation of Legal Services

Abstract

AbstractSimon Drane writes that the next decade will see a shift within legal service provision, where it will transition from a model which is predominantly geared around internal work processes to one that is geared around customer outcomes. Law firms will complete their evolution from a bill by the hour service-based model to something closer to a product subscription model. This shift will deliver growth, sustainable recurring revenues at high margins and new higher value service opportunities. At the core of this shift is the changing nature of consumption driven by consumer technology and the inexorable drive for base level information to become free. Law firms are sitting on vast quantities of data, and yet very few are currently harnessing this effectively in their offerings. The effective use of data combined with technology will allow innovative organisations to provide a new form of productised offering which will not only drive new recurring revenues but will allow them to offer higher value business advisory services. Whereas effective use of data within the organisation will lead to better evolutionary efficiency, quality and risk management, the use of data externally for clients will lead to more revolutionary changes. It will also blur the lines further between traditional law firms and LegalTech product businesses, in the way alternative legal service providers (ALSPs) and the Big Four are already exploring.