86% of law firms claim they will replace and invest in new business applications in the coming 24 months.
This is a significant finding, well above industry average, but reflects the change in the UK legal market today. The market dynamics brought about by the Legal Services Act and the Jackson reforms are driving firms to adopt technology to compete and survive.
Legal firms increasingly need to become more client focused, improve automation and open up new channels to market, all of which drive a compelling need for new software. Until recently the UK legal market has been dominated by old software created decades ago to service back office staff. With new arrivals entering the market, such as Peppermint Technology, legal firms can now access modern technology based on a client centric experience. This opens the door for legal firms to transform every process, person and task in the firm to be part of a client centric operation. Anyone who has read, or followed, Professor Richard Susskind’s comments in recent years will see this is long overdue but the research indicates firms are starting to take action.
Law Firms Recognise That Technology is Key to Competitive Advantage
The finding is further supported by the importance law firms are now placing on technology. 56% of firms cited that technology was ‘extremely important and critical’ to competitive advantage. This demonstrates firms recognise the importance of technology in the business. This supports the activity we are seeing amidst legal firms in the market, particular the drive towards implementing technology that directly impacts the client experience. Whilst traditionally firms have invested mainly in case and practice management systems, and this is still important, the emphasis is shifting to the need for client-centric technology. As the battleground of legal opens up to new entrants, legal firms are striving to adopt software that can interrogate client needs and offer personalised services. The remaining 44% of respondents confirmed that technology was ‘important and had a key role to play in the firm’s success’ therefore it seems law firms are not disillusioned about the importance of technology.
Not only is technology proving to be more important but increasingly partners are getting involved in an area that was traditionally left to operational and IT staff. Only 4% of legal firms had no partner involvement in technology strategy and decisions. A further 37% of firms said the involvement of partners in technology had increased in the last 2 years, thus again showing the growing importance legal firms are placing on technology.
ABOUT THE AUTHOR
Arlene Adams is the Founder & Executive Director of Peppermint Technology. Arlene is known for providing insight and vision, particularly in markets undergoing radical change. Drawing on her vast and varied experience, Arlene brings a fresh, enthusiastic and sometimes controversial approach to helping law firms succeed and grow in the volatile legal services market.