Legal technology: Opportunities, implementation, strategy

This month’s marketing Q&A with Mark Slade of Fidler & Pepper raises some pertinent issues in regard to legal technology. Smaller firms have quite different commercial imperatives, with numerous challenges leaving many fighting for survival rather than competitive advantage. The conveyancing and personal-injury cash cows of the high street solicitor have all been eroded by competition and the growth of the bulk market, and it is feared that many will disappear over the coming months and years.

Thankfully, IT is an area that can make a big difference to the success of the small firm. Larger firms may have invested huge amounts in their technology solutions, but many of these use their IT poorly, utilising only a tiny part of their software’s full capability. Even worse, many will make further investments in new systems before they’ve fully realised the benefits of the old. With the supplementary costs of implementation and training, IT can quickly become a drain on essential resources. For smaller firms, with fewer funds to upgrade existing systems, the incentives are higher to get the most out of their existing IT, so that it makes a difference to the way in which they do business.

Perhaps a good example of this is Barnetts Solicitors, a Southport firm that has just announced a further £500,000 investment in its ICT (information and communication technology). Admittedly, it can no longer be described as a small firm, with staff numbers now hitting the 200 mark. However, it has grown from only 25 employees ten years ago, and as it prepares to move into its new £3m conveyancing headquarters, provides a good example of a firm that has made the most of the competition.

In commenting on the investment, James Whelan, the firm’s director of ICT, hit the nail on the head when he said: “In today’s business environment, law firms have two options when embracing new technologies. They can either acquire the best technology to help them deliver a fast and efficient service or they can ignore the latest developments, lose business and watch other ICT-savvy firms pass them by.” The warning is clear.

The summer has also seen some developments from the vendor side of the technology market. Firms have become more sophisticated in their technology requirements and past problems of product integration have left many looking for the one-stop shop that can provide all their needs quickly and cheaply. Firms may, therefore, be interested to learn that Interwoven and iManage have agreed to merge to provide an integrated platform to manage the complete content lifecycle from content collaboration and creation, through to management, distribution, re-use, archival, and disposition. The merger, valued in a stock and cash transaction at $171m, follows a partnership and reseller agreement confirmed between the two companies in February 2003, which was followed by the shipping of an integrated product in April 2003. This precursor will allow for immediate product availability, but product enhancements will be expected to follow.

Workshare has also been making its mark with the launch of Workshare 3. Its earlier document-comparison product, Workshare DeltaView, has enjoyed a successful uptake, particularly with the larger firms in the UK and US, where operational productivity and efficiency across multiple offices has proved a key reason for investment. Rather than expanding this product into the European market, which consists of much smaller firms, Workshare has used its DeltaView technology to power the enhanced Workshare 3 product. This version aims to improve productivity and efficiency for fee earners when drafting, reviewing and collaborating on documents. There is already interest from some larger firms, including SJ Berwin and Baker & McKenzie, which have both confirmed that they will be implementing Workshare 3 across their global offices.

Finally, this month’s technology article looks at the continuing opportunities and challenges of developing an intranet. The Law Society works with a wide variety of external bodies across legal, government and professional institutions, and has a staff of 1,100 spread over six directorates in three locations. With an out-of-date and under-utilised intranet, it realised that a major project was needed to revitalise this crucial resource. The Law Society’s Fiona Parkinson, head of knowledge management, and Sarah Benfield, knowledge architect, reveal some useful tips and guidance for those working on their own intranets.