Analysis. Insight. Action.

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BI 2015:
View of the Future of
Intelligence in Firms
Audrey Mungal
Director, Redwood Analytics Product Management
2012 Redwood Analytics® User Conference
Analysis. Insight. Action.
BI 2015: View of the Future
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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
2012 Redwood Analytics® User Conference
Analysis. Insight. Action.
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
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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
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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.
There is a skills shortage of valuable contributors
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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
2012 Redwood Analytics® User Conference
Analysis. Insight. Action.
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 — 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
Analytics:Thewideningdivide:Howcompaniesareachievingcompe
titive advantage through analytics
IBM Institute for Business Value and MIT Sloan Management
Review, 2011
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…for every dollar a company spends on analytics,
it gets back $10.66
Nucleus Research, November 2011
Better Business Outcomes, IBM 2012
2012 Redwood Analytics® User Conference
Analysis. Insight. Action.
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.
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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
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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
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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
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Benefits
• Can enable instant access, from anywhere (permissions)
• Can free your firm from server & support expense overhead
• Usually managed by world class IT talent
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Issues
• Trust
• Security
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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
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Benefits
• Enables strong partnerships with clients
• Risk management – “we’re on the same side”
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Issues
• Requires tight management & oversight – intentionality
• GCs have 100’s of outside council: How many extranets?
• Confidentiality
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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
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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
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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
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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
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Benefits
• May allow faster, cheaper completion, and more profit
• Can leverage expertise that doesn’t exist in your firm
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Issues
• Ethics & ABA
• Confidentiality
• Monitoring work quality
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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
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Benefits
• Being global lets you understand global clients better
• Be prepared: If you’re ready, you can accommodate
• Potential cost savings
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Issues
• You have to know more
• You often discover significance of gaps after engagement
• Exchange rates complications
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Predicting The Future (“Cool Hunting”)
John Naisbitt of Megatrends and Mind Set! says the methodology to predicting
the future is:
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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
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Discussion
What do you think?
Does your firm look at change as opportunity?
Or as unfortunate? What does the future look
like – to you?
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BI 2015:
View of the Future of
Intelligence in Firms
Audrey Mungal
Director, Redwood Analytics Product Management
2012 Redwood Analytics® User Conference
Analysis. Insight. Action.
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