Law Firms Must Focus on Digital Strategy to Address Worries over Business Model and Hyper-Competition

Topics: Big Data, Client Relations, Data Analytics, Law Firms, LawVision, Legal Innovation, Midsize Law Firms Blog Posts, Peer Monitor, Thomson Reuters

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Even as law firms enjoy their recent uptick in demand growth and the momentum that comes with it, firm leaders are still expressing frustration over what can be seen as core problems in the industry: attachment to a declining business model and fears over growing competition fueled by new technological innovation and the heavy influx of data many firms are seeing, according to a new article by Mark Medice, a principal at LawVision.

To combat this, the article suggests law firms develop and implement a digital strategy that could allow them to address some of these issues of concern and get a jumpstart on innovative initiatives around the use of data, workflow efficiency, and client relationships. “Digital strategy is the idea that our competitive environment is being transformed through the increasing use of data and digital applications,” the article states. “And that any firm must factor it into their strategic plans.”

The article, which highlights data from Thomson Reuters Peer Monitor, offers several key areas where a digital strategy could greatly benefit a law firm. For example, the concept of client relations and business development haven’t really changed in principle, but clients are now using data to evaluate the legal service offerings they are getting in terms of value, efficiency and quality.

Click on “LawVision Digital — Priorities for 2019” to read the full article.

Data, how it’s used, and how it’s collected will continue to transform the legal industry; and those law firms that want to stay ahead of this continuing wave need to formulate a digital strategy, the article states. And while the effective use of data doesn’t change strategic fundamentals, it does introduce new concepts that have to be factored in to any digital strategy, such as: i) digital elements should be a part of any future thinking about how the firm is going to meet the needs of external and internal stakeholders; and ii) as the world becomes more connected and fluid, strategies are going to become outdated more quickly, emphasizing the need to revisit, retest, and reconfigure your digital strategy more often.

Indeed, as the article points out, a digital strategy needs to touch all parts of your on-going operations and the way you think about them. “You need to have a digital strategy to at least align with your client who will expect it, new talent who will want it, and your performance models, which will require it.”