Feb 2017Darwin TalkTechnology Targets Law: Who Will Survive and How?

Jeff Modisett, CEONextlaw Global Referral Network

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Feb 2017Growth would occur mainly among mega-firms and boutique firms, leaving mid-sized firms as a dying breed.The Barbell Effect

The legal industry is undergoing significant consolidation at the top while becoming highly fragmented at the bottom.mid-sized firms= dying breed

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of the worlds lawyers are in firms with fewer than 100 lawyers96% of lawyers are in firms with 25 lawyers or less75% of all U.S. lawyers are sole practitioners50% Feb 2017

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Law firms are under pressure to develop new ways to differentiate themselves and increase share of wallet via technology and integrated services.

Feb 2017We are now seeing an acceleration in the introduction of new technologies - almost as if the industry is making up for lost ground.

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The question law firms get asked by their clients: Feb 2017How do we know were getting our moneys worth?

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The question in-house counsel gets asked by its CEO, CFO and Board: Feb 2017How do we know were getting our moneys worth?

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The legal industry in the U.S. alone represents about $437 billion in spend with two key trends:

Source: Thomson Reuters

Companies taking their services in-house, including Legal Ops

Outsourcing key services to non-law firms

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Tremendous pressure on in-house counsel not only to cut costs, but also to justify every dollar they spend.

This pressure impacts outside law firms because they need to justify their fees and the quality of their services like never before.

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The ChallengeHow to measure QUALITY in a standardized and objective way, and in an approach thats prescriptive in nature and able to guide the business?Traditionally, legal business only knows how to measure COST.

And therein lies the challenge and source of friction between in-house counsel and outside law firms.Feb 2017The Reality

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Barclays and Amazon have started to give preference to firms that can substantiate that they are innovating, including: Feb 2017Unbundling and disaggregating legal services

Matter project management

Improved technology solutions

Efficient and continuous improvement methods

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So now law like every other industry is clearly a target of disruptive technologies, even if it is one of the last holdouts.

And much of this pressure has come from in-house counsel.

Now there are hundreds of start-ups to assist both law firms and clients to be more efficient in the legal world.

What are the trends?Feb 2017

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The Darwinian theory would probably lead us to believe that only law firms that are big enough to have a large budget for tech will survive May 2016

How can a small boutique or mid-sized firm survive as legal technology spend moves into Artificial Intelligence and Cyber-security?

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Enter: The Nextlaw Global Referral NetworkFeb 2017Free, not pay-to-play

Is not limited to one law firm in any one location

Uses a new technology platform that makes it easier and faster to find the right lawyer at the right firm Promotes reciprocal repeat referrals

Provides instantaneous access to the top talent around the world

Allows you to market to your clients and assist them virtually anywhere

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Networks like Nextlaw can help with the dilemma of obtaining new technology necessary to survive the new world.14First, Networks can educate through knowledge sharing, like everything Labs invests in, the latest trends, the newest start-ups in legal tech, and all the new technology that is out there or which is coming.Second, Networks can use their power of scale and assist all interested members in getting needed technology at an affordable price. By aggregating demand, Networks should be able to exert purchasing power and lead to lower prices for their members.Third, Networks themselves can look for new technologies that can be used by members on an ad hoc basis - within the platform! No longer should small firms need to pay millions for advanced tech when they can pay on an as-needed basis for the tech that is accessible through the platform.EducateDrive Technological EvolutionPower of ScaleMonth Year123

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Thank You Feb 2017

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