Two thirds of business leaders believe that their companies must become more digitised in order to stay competitive. Yet, according to Gartner, 81% of Legal Departments in 2018 ‘are unprepared for digitalization’, jeopardising in the process their ability to manage risks and slowing internal processes. So, how can your Legal Department make the leap today? The answer? Business Intelligence.
What is BI?
Gartner defines Business Intelligence or BI as an “umbrella term that includes the applications, infrastructure and tools, and best practices that enable access to and analysis of information to improve and optimize decisions and performance”. Essentially BI can lend companies, especially Legal Departments, a sophisticated analysis of key information relating to legal activities, employee performance and clear analytical data reporting.
BI is a dynamic and fast evolving market as demand from organisations to better grapple with and leverage critical and everyday data becomes more imperative. The value of BI is in its agility and intuitive capabilities to break down data to generate and analyse it quicker than more traditional methods currently in place in Legal Departments.
McKinsey & Company in a recent study which looked at digital reinvention found that ‘the digital winners’ consistently and ‘closely tie their digital and corporate strategies’ together. While Legal Departments are more reticent in adopting technology, they must in 2019 knuckle down and see technology as a key tool to increased growth. 100% of the top ten Legal Firms surveyed by the PWC Annual Law Firms’ Survey 2018 responded that technology is a key challenge to growth in the next 2 years. For those who are slow to do so, figures point to a very downward spiral. According to data from Forrester notes that 25% of companies in 2019 will decelerate their digital efforts completely and lose market share.
So How Can BI Inform Data Driven Decisions?
Here are three key ways Legal Departments can get on board with BI:
1: Key Indicators
DiliTrust Governance is a collaborative legal platform that has been designed to meet the requirements of the corporate legal professionals, particularly in terms of operational efficiency, productivity, security and functional business coverage.
The tool has inbuilt BI functionalities so that users can access monitoring indicators in real time. It also offers standard and customizable dashboards, adaptable to the specific needs and features your department requires.
Examples of indicators that can be monitored via the tool include:
- Number of contracts/disputes per status
- Average time for resolving a dispute
- Success rate of claimant disputes
The performance indicators (KPIs) monitored in the solution help you deliver simple, accurate messages, trigger actions to optimize your performance, and enable you to compare the efficiency of your actions over time.
2: Information Governance
Research indicates that “only 37% of legal and compliance leaders have a formal information governance structure” in place.
In order to better secure their data, Legal Departments need to strategically organise and coherently manage it, Why? Legal firms are faced with sifting through masses of crucial data daily. For scale, the world produces 2.5 quintillion bytes of data a day, while 90% of data in the world today was created in the last two years. According to the Harvard Business Review, ‘less than 1% of unstructured data is analysed or used at all’.
What is more, is that 70% of employees have access to data they should not have. It is imperative that Legal Departments use Business Intelligence in order to manage data but also to improve efficiency, manage risks and meet regulatory compliance requirements.
3: One Step Ahead: Horizon Expertise
According to the Harvard Business Review, ‘digital reinvention only works if companies master the right digital technology architecture. PWC in their 2018 law firms survey recommend that Legal Departments must remain aware of “all available emerging technologies” and select ones which are the “best fit” for the organisation in order to remain competitive and ahead of the curve. Within the PWC report, more than 50% of the Top 100 UK firms had commenced or were in the planning stages of ‘projects relating to Risk & Compliance or Data Analytics’.
Business Intelligence enables law firms to have complete confidence in analysis in areas of exposure and risk, among others. Access to the data afforded by Business Intelligence such as prediction of legal costs assists departments in operational strategy and working more adroitly in terms of compliance needs. International law firm Seyfarth Shaw in conversation with McKinsey & Company about their legal digital transformation noted that clients are now seeking “horizon expertise” from their legal team to anticipate “what is coming, instead of paying us to solve the current problem”. Business Intelligence affords law firms to identify client needs better and to make more informed decisions on their behalf, so that legal professionals remain one step ahead in a rapidly disrupting industry.