BI 2015: View of the Future of Intelligence in Firms

BI 2015: View of the Future
Predictive Analytics
AQ: Maturing of Business Analytics
Rise of Risk Analysis
Big Data
One Truth: APIs, Integration and Data Norms
Cloud
Transparency
Legal Project Management & Workflow
Early Case Assessment
Disintermediation (LPO)
Global
Predicting The Future
Predictive Analytics
Backwards vs Forward Facing
Big Data analytics can yield trends that predict the future
Credit scores examine data on past payments and #/addresses to predict payment on future charges
Mining your documents might yield better insight for LPM, ECA

Benefits
Predictive coding might better normalize your data
Retrospectives and analysis can yield patterns
Issues
Data cleaning and normalization is a big, expensive job
Then: Requires work and investment to yield trends
AQ: Maturing of Business Analytics
IBM Recognizes 4 Stages of Analytic Maturity
IBM study: People who use analytics outperform their competitors by 5.5x

Business analytics user mature both in terms of sophistication and added business value. Where is your firm on the Analytic Quotient (AQ)
High AQ = Harnessing all of the available data
There is a skills shortage of valuable contributors

Novices. Have only a limited to historical view of data, often through spreadsheets. Aware that they can do better.
Experienced. Show broader collaboration across teams, typically within one department, with both a historical and current view, as well as trending over past and future time periods.
Leaders. Employ defined operational and financial metrics across more than one department. Use integrated, driver-based planning to align resources and predictive models to understand what if performance and risk scenarios.
Masters. Set top-down goals, allocating resources based on priorities and shifting dynamics. Everyone knows the objectives and how they can collaborate across the organization to achieve them.

To take action, organizations with a high AQ use an understanding of history and context from the past, guided by predictive analytics that allows them to develop insightful forecasts, optimize recommendations and judiciously automate decisions

The MIT Sloan Management Review study highlighted the benefits of applying analytics. Analytically sophisticated organizations were 2.2 times more likely to outperform industry peers than those just beginning to apply analytics.3
Analytics-driven organizations
Integrate analytics into both core strategic processes and day-to-day operations î apply analytics in many critical areas:
To attract, retain and grow the value of their customers
To plan, report and align resources
To identify, measure and manage risk
To increase operational efficiency and dexterity

for every dollar a company spends on analytics, it gets back $10.66

Rise of Risk Analysis
Currently, law firms come in after the fact. In the future
Who actively monitors your firm’ s overall risk profile? Who at your firm would know you were following in Dewey’ s steps, and be able to intervene?
New role: Law Firm GC
Audit services for clients’ risk exposure?

Gain transparency into financial and operational risks in advance
Help managers understand how these risks can impact your organization’ s future performance
Support the Governance Risk and Compliance (GRC) methodologies you already have in place
Provide an aggregated, enterprise-wide picture of all risk exposures.
Big Data
Data, Data, Everywhere
Collection of data sets so large and complex that it becomes awkward to work with -Wikipedia
ABA has ESI rules
eDiscovery example

Benefits
Lots of institutional knowledge
Issues
Requires active management
Litigation Holds
eDiscovery time & expenses

One Truth: APIs, Integration and Data Normalization
If We Only Knew What We Knew -GSK, circa 2005
Organizations of all sizes have growing electronic data stores
In separate systems. APIs and integration allow all that information to be pulled together -so we know what we know

Benefits
One Truth
Leverage existing knowledge
Issues
Ethical
Educational
Data formats aren’ t normalized -can’ t mix & match
Cloud
Cloud Computing
Use of computing resources (hardware and software) that are delivered as a service over a network -Wikipedia
Clouds can rely on Internet (public cloud) or off the grid on a firm’ s own network (private cloud)
It’ s about: Focusing on your organization’ s core competencies

Benefits
Can enable instant access, from anywhere (permissions)
Can free your firm from server & support expense overhead
Usually managed by world class IT talent
Issues
Trust
Security

Transparency
Enquiring Customers Want to Know
Culture Change: Customers expect to be told everything, to have input, to have an ongoing voice. Want more than goods & a bill
The Internet has made information more accessible
Watergate legacy: Trust, but verify

Benefits
Enables strong partnerships with clients
Risk management – we’ re on the same side
Issues
Requires tight management & oversight -intentionality
GCs have 100′ s of outside council: How many extranets?
Confidentiality

Legal Project Management (LPM) & Workflow
Hourly Billing Rewards Inefficient Work
LPM attempts to apply the predictability and rigor of project management to legal practice, by building & applying practice group-based models (phase/task) from past work
Both firms and clients want predictable scope, schedule, risk, and cost

Benefits
AFA offers help build trust, may win deals (may be hourly)
Supports good lawyering /more careful management
Retrospective cycles apply learning back to the models
Issues
Requires good data for accurate models
Requires attorneys to split time: law vs management
Requires GCs to be knowledgeable and understand value

Early Case Assessment (ECA)
How Far Should We Push This Matter?
Insurance Industry spent time and money, and shared anonymized claims data, and now know what’ s the right starting settlement for this type of accident, in this state?
Settle, defend, or prosecute?

Benefits
Information provides insight on new matter value
The next step in LPM; enabled with Big Data
Issues
Law does not have a claims & settlements db like this yet
Confidentiality
PR, Good Will, and Efficacy
Disintermediation (LPO)
Know Your Firm’ s Core Competencies -then Outsource
Breaking apart of work, to be completed by different groups
Instead of doing all the work, your firm oversees other firms
Legal Process Outsourcing: UK regulatory changes allow for disintermediation

Benefits
May allow faster, cheaper completion, and more profit
Can leverage expertise that doesn’ t exist in your firm
Issues
Ethics & ABA
Confidentiality
Monitoring work quality

Global
Even small firms are experiencing globalization
Even if you’ re not international, some of your clients likely are
Global can mean: foreign languages/characters, currencies, time zones, regulatory, ethical, legal, societal differences

Benefits
Being global lets you understand global clients better
Be prepared: If you’ re ready, you can accommodate
Potential cost savings
Issues
You have to know more
You often discover significance of gaps after engagement
Exchange rates complications

Predicting The Future ( Cool Hunting )
John Naisbitt of Megatrends and Mind Set! says the methodology to predicting the future is:

Most Things Remain Constant
The Future Is Embedded In The Present
Focus On The Score Of The Game
Don’t Get So Far Ahead Of The Parade That They Don’t Know You Are In It
Resistance To Change Falls For Benefits
Things That We Expect To Happen Always Happen More Slowly
You Don’t Get Results By Solving Problems, But By Exploiting Opportunities
Don’t Add Unless You Subtract; Consider The Ecology Of Technology

Discussion
BI 2015: View of the Future of Intelligence in Firms

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