Showing posts with label Law future. Show all posts
Showing posts with label Law future. Show all posts

Wednesday, March 4, 2015

Book Review of Eric Hunter's "The Sherlock Syndrome: Strategic Success through Big Data and the Darwinian Disruption"

bookEric Hunter is a legal knowledge management colleague and recipient of ILTA’s 2010 Knowledge Management Champion Distinguished Peer and Innovative Member awards. He is Director of Knowledge, Innovation and Technology Strategies at Bradford & Barthel, LLP (a California law firm focused on worker’s compensation) and also Executive Director of the Spherical Models consultancy.

His wide-ranging report puts business analytics and the insights it offers at the core of wide-ranging potential changes in legal and other industries. Though future-oriented, it spends most of its time on developments whose beginnings are firmly entrenched, such as video search, wearable tech, big data, and data visualization.

Through my own work I have come to believe that legal organizations – and perhaps organizations in general – can obtain significant competitive advantage by leveraging analytics and technologies and taking better advantage of our increasing connectivity and ability to share inside and outside the organization. Hunter’s report provides more substantiation for those beliefs, and also projects ahead to suggest how to prepare for the increasingly rapid changes that are coming. I appreciate that Hunter is “walking the walk,” talking about increased sharing while doing so himself through this book and his many presentations at Ark and ILTA conferences (referenced throughout the report).

Sherlock Syndrome

The title’s “Sherlock Syndrome” concerns our increasing ability to observe, sense, cross-reference, and analyze information and trends much more comprehensively than before through data analytics and Big Data. The trend is one of massive increases in the ability to recall, analyze, and leverage information. Hunter posits that, at least with respect to personal preferences and search patterns, “everything is becoming predictable (and therefore marketable) through analytics.” Particularly striking to me is the thought that not only are the abundance of data and power of our computers increasing rapidly, but also the sophistication and availability of easy to use analytics tools are making this information actionable in ways that were never before possible.

I have seen this myself in my firm’s exploration of the Tableau data visualization tool. Business use-cases for Sherlockian advanced perceptions include forensic (criminal) investigations, insurance claim investigations, and, of course, targeted consumer advertising.

Darwinian Disruption

Hunter also believes that “Darwinian data disruption” is affecting the entire business world. It is not simply data—though the scope of data is increasing dramatically every year—but also computational and analytical capacity that is growing so dramatically. Hunter’s disruption is Darwinian because leveraging these changes provides a clear competitive advantage and those organizations and business leaders able to adapt to the new environment will survive. Businesses that cannot adapt to and take advantage of these technologies and changes may not survive. It may have been said many times before, but it is true: as Hunter observes with many examples, we are seeing accelerating levels of market disruptions as companies learn to innovate faster.

The (Edward) Snowden Effect

Hunter spends a good deal of time digging into the “Snowden” effect (not David Snowden the KM guru, but Edward Snowden, the former NSA contractor). In Hunter’s view, Snowden’s revelations of widespread government capture of vast amounts of personal information in pursuit of national security encapsulate the inevitable tension among privacy, the right to share, and the (security and other) benefits of access to others’ information. Snowden demonstrated that cross-border information sharing is happening and will happen more and more. The NSA, US government agencies, and other governments that capture and share personal information are in his view just taking to an extreme and for different ends what corporations like Facebook and Google already do to target advertising to consumers.

The Predictive Orchestra

A skilled jazz and classical bass player, Hunter hits my sweet spot with an extended metaphor of a “predictive organization” as symphony orchestra, all playing from the same music and not simply following a leader, but also anticipating the melodies and entrances of other sections. (I would promote leaderless orchestras like New York’s Orpheus chamber ensemble http://www.orpheusnyc.com/ as a better fit for his progressive view than the hidebound, intensely hierarchical traditional symphony orchestra. For instance, in a traditional orchestra, the musicians within a section are positioned on the stage by rank according to purported ability!)

Legal Industry Impacts

Hunter does not neglect the implications of these much broader developments for the legal industry. Within law firms, Sherlockian advanced perceptions aid pricing, methods for doing legal work, internal communications, and understanding and addressing client needs. The new technology, analytics, and cross-border flow of information have the potential to greatly enhance law firms’ understanding of their clients and clients’ understanding of legal issues. The technologies increase the capacity for clients and firms to build “targeted relationships” and provide a continually expanding set of opportunities. And, the same data collection and predictive analytics that Facebook and Bing use to identify our consumer interests also identify our business needs. Analytics technologies can be applied directly to some types of legal issues, such as the likely extent of exposure from a given worker’s compensation claim.

Another example is law firms’ new ability to bring transparency to matter work, including data analytics around pricing and profitability, staffing models, and project models. Hunter spells out how the concept of “velocity billing” combines client-specific account managers, predictive analytics driving client- and firm-appropriate fee arrangements, and social collaboration around matter and client work has affected his firm. In combination, these processes and technologies lead to very efficient and client-targeted legal work.

Another instance of these technologies manifesting in law firms is his own firm’s adoption of Google Plus (“G+”). While much-maligned as the place where only Google employees “hang out,” Hunter sees G+ as a great example of a system that is both inward- and outward-facing and combines search with a designed social platform. Creating a G+ circle is the kind of fluid, effective, searcheable content and process management Hunter sees in the future of legal work. For Hunter’s firm, G+ is both an internal- and partially external-facing social network and platform. He notes that social network implementation and internal change management, like the pricing and client management projects he has had so much success with, involve different change management dynamics needing different approaches.

For law firms and the general corporate world, the technologies, techniques, analyses, and insights gained and shared so rapidly can be applied to not just readily quantifiable attributes of work such as hours, effort, and outcomes, but also leadership and change management at the levels of self, team, and organization as a whole. Hunter’s exhortations on leadership are very similar to what you might hear from many an Eastern-philosophy or martial arts- influenced business leadership book; what differs is the tie-in to his Sherlock/Darwin analysis.

Hunter suggests that people, teams, and organizations should be reinventing themselves through these enhanced perceptions and abilities every 18 months.

Complaints, Conclusions, and Inspirations

One concept that could have been more clearly elucidated is Hunter’s “spherical analysis/spherical modeling.” Google search suggests that these terms are not widely used in the business intelligence or data analytics communities—references to spherical analysis or models typically relate to variogram models that address how distance effects correlation between variables or a method of modeling magnetic forces (see the spherical models Wikipedia article.)

Much of the report is fairly abstract; I would not go to this book for an introduction to business analytics or Big Data. Nor was it entirely easy to read, with a fair amount of repetition and some extraneous quotes from Ghandi, Leonardo Da Vinci, and Hunter’s martial arts instructor. Finally, the size of the book’s print is too small (at no more than 10-point font) and somewhat faint. Perhaps the book is easier to read on-line (admittedly an appropriate production strategy given the book’s topic).

Overall, I found Hunter’s report an intriguing and inspiring application of broad industry, technology, analytics, and behavior trends to the ground level of the key interactions between law firms, legal work, and clients. His predictions about predictive analytics and more are in some cases not predictions at all; he shows how these can play out and have an impact on a legal practice area. They should not be ignored. I would not be at all surprised if many of his other predictions are soon borne out more broadly in our industry.

Tuesday, August 20, 2013

Law2020: Emerging Legal and Business Opportunities

These are my notes on the second keynote session at the ILTA conference. I found it to be an intriguing presentation, interesting in the projects of long-term impacts of some current technology trends, a bit flaky on a few of the projections, but also effectively coming back to some approaches to effectively talk to law leaders about the future.

Formal Description: The next ten years could see a dramatic rewriting of the law firm playbook as innovators and entrepreneurs break from the pack to change the rules of the game. What's driving these changes and how can law firms respond?

...Global futurist Rohit Talwar will deliver a keynote presentation and then be interviewed by Monica Bay, editor-in-chief of Law Technology News. In his presentation, Rohit will draw on ILTA's latest 'Future Horizons' research to highlight how law firms can leverage emerging technologies coupled to new paradigm thinking to transform everything from firm strategies and business models through to the way tomorrow's lawyer is recruited, developed and rewarded. Rohit will illustrate his talk with the latest findings, technology opportunities and case examples emerging from ILTA's Legal Technology Future Horizons research Project. The study is designed to examine how emerging technologies could impact the design and delivery of legal services over the next 10-15 years. The research is also exploring the resulting implications for how law firms need to evolve the management of the IT function to address an ever-quickening pace of technological change.

Speakers: Rohit Talwar, Monica Bay

See twitter conversation at #key2.

He's the CEO of Fast Future in London. He's the project director of ILTA's Law 2020. His legal sector clients include LinkLaters and Norton Rose.

How do we use insights on emerging technology to drive better decisions today?

Where could technology impact legal organizations?

The study involved interviews with vendors, peers, and legal technology thought leaders.

His cross-industry research concludes that organizations that innovate and adjust to technology change think in three time horizons. Over 12 months they look for operational excellence. Over 1-3 years they try to innovate, grow, and be efficient. Over 4-10 years they create the future. Corporations need to allocate people to these different areas and allocate time at management meetings for future-oriented discussions.

The next decade will be quite turbulent. The global economy is $65-70 trillion, there are still around $700 trillion in derivative contracts. There is no historical model from which we can learn because of the internet and rapid changes in technology.

The growth of the middle class will occur in Brazil, China and India.

Business cycles are faster. There are talent shortages, disruptive technologies, and rapid spread of science and technology advances.

For instance, if autonomous cars can't have accidents, why would consumers buy insurance? How would we work out who is responsible in accidents between manual and autonomous cars?

The landscape by 2025 will be quite different. The population is aging and life extension technology is evolving. We're looking at extending life by 4 to 10 times. How do you motivate a 190 year old network manager? Looking after the elderly will be a phenomenal growth sector for the economy and the legal industry.

Every business is having to think about the potential impact of rising energy costs.

The "23 and me" website will provide a personal genetic profile for $99-299. We'll be starting to use the information in contracting or purchasing.

New materials might lead to novel energy sources or indestructible materials.

The internet will be more immersive, conveying touch, taste and smell.

Could we knock out genes for rage, obesity, and stress? Human enhancement is a real present development.

Every industry will have to go through 2-3 iterations. Vertical farms may transform the food industry. All the industry changes will lead to opportunities for legal work. Let's make our partners and associates have the same awareness of the future of the industries as the industry participants.

Clients will press to innovate around making information more available and online. Traditional services will be provided at a commoditized price.

Don't panic, ask how you want to engage and stay informed.

There are five strategic challenges for the legal industry.

How do you leverage transparency, and artificial intelligence?

What are the new working practices and models for delivery of legal services?

Is there an over capacity of talent at all levels?

New technologies and investors are driving new players into the marketplace with a different perspective ("legal is about big data and process improvement")

New types of companies have different expectations for their law firms.

He's set out recommendations for the legal industry in a series of ideas organized around words beginning with "M."

Markets

Technology gives us the ability to create new services. 60% of the world is in Asia. With the new technologies come opportunities to focus on growth industries, like 3-D printing, energy, robotics, and biomimicry.

Mastery

You can't wait for others to do things, you need to have foresight. What are the big trends in a sector that have been announced? Lawyers and accountants create maps, for instance, about the future of travel and tourism. Taking an insight map to a client shows that you're thinking about their business.

Process excellence is another aspect of mastery. In the Narayana hospital in India they can do heart surgery at 4% of the cost with a higher success rate. They do a lot of the same kind of surgeries and work out the complete process with all of the possible variations.

How do we create more insight from the data? One insurance defense firm looked at the characteristics of success & failure at trial and created a platform for analyzing & predicting when to go to trial. They are then selling that platform to insurance companies.

How will we gear up technology solutions for the future platforms?

Instantaneous translation will change business.

Artificial intelligence-IBM's Watson is being used to diagnose cancer, and it does better than human doctors at that and at recommending post-diagnosis care.

Muscle

The anatomy of faster decisions is part of muscle. Coke looked at a UK firm that put out smaller tasty drinks at great speed. How to execute faster is also muscle. A company in China can build an energy-efficient office building in six days (after the foundation is laid).

Internal social media might be more effective than traditional knowledge management systems at providing good answers. For instance, someone looking for help with an oil contract in Uzbekistan might post about that need, and receive not only sample contracts but a message to call a particular subject matter expert.

Magic

How do we give our clients access to the scarce knowledge of our partners?

Latham has a series of apps called “The Book of Jargon,” on various corporate, capital markets, and investment topics.

Mofo has a court analyzer / dashboard that shows the key information about complex financial litigation.

Baker Donelson is providing client access to workflow, so the client can see what is happening on their matters.

Mindset

Build in the three-time-period orientation. Be tolerant of uncertainty, encourage people to try things.

Management

Make time and space for change.

Conclusions

Turn risks into opportunities. We can choose how to address the future.

Survey

Monica Bay then interviewed Mr. Talwar. The Law2020 survey will close in January. Take it at http://s.zoomerang.com/s/futurehorizons and http://s.zoomerang.com/s/ILTAEmergingTech .

30% of respondents see the role of CIO shifting to embrace innovation. You also have to reengineer to deliver to mobile.

Key Takeaways

It's very hard to maintain a strategic conversation if the DMS isn't working. CIOs need to talk to firm leaders about using technology to create new business opportunities and delivery models, how to create value and open up innovation.

Motivate lawyers to change by framing the problem as the risk of losing something.

Some of the most disruptive technologies are artificial intelligence, the next generation of collaboration tools (spanning law firms and law departments), and human enhancements.