Big Data for Law Firms DAMIAN BLACKBURN
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1 Big Data for Law Firms DAMIAN BLACKBURN PUBLISHED BY IN IN ASSOCIATION WITH
2 Big Data for Law Firms is published by Ark Group UK/EUROPE/ASIA OFFICE Ark Group Ltd 6-14 Underwood Street London N1 7JQ United Kingdom Tel +44 (0) Fax +44 (0) NORTH AMERICA OFFICE Ark Group USA 4408 N. Rockwood Drive Suite 150 Peoria IL United States Tel Fax AUSTRALIA/NZ OFFICE Ark Group Australia Pty Ltd Main Level 83 Walker Street North Sydney NSW 2060 Australia Tel Fax Online bookshop Reports Commissioning Editor Helen Roche Reports Publisher International Fiona Tucker UK/Europe/Asia enquiries Robyn Macé US enquiries Daniel Smallwood Australia/NZ enquiries Steve Oesterreich ISBN: (hard copy) (PDF) Copyright The copyright of all material appearing within this publication is reserved by the author and Ark Conferences It may not be reproduced, duplicated or copied by any means without the prior written consent of the publisher. ARK2369
3 Big Data for Law Firms DAMIAN BLACKBURN PUBLISHED BY IN ASSOCIATION WITH
4 Contents Executive summary VII About the author XI Chapter 1: Introduction to big data 1 Factors leading to big data 2 The three V s 5 Who uses big data 6 What big data is used for 8 Chapter 2: The span of big data 13 Limitations on big data 13 Benefits of using big data 15 Law firm use of big data 17 Chapter 3: Who already uses big data 21 Which firms will be affected by big data? 21 The effects of using big data within law firms 22 How law firms can leverage the power of big data 23 Who big data affects in law firms 30 Eversheds Big View: Changing the way a law firm s clients view themselves 33 The problem 33 The solution 33 Why big data? 35 How can big data work in the legal industry? 36 III
5 Contents Chapter 4: Clients big data 39 Privacy 40 Data audit 41 Compliance 42 IP rights and data ownership 43 Big data projects 44 Data collection 45 Big data technology infringements 45 Jurisdiction 46 Educating staff 46 Big data policy 47 E-discovery and search tools 47 Big data means big business 49 By Simon Briskman, Field Fisher Waterhouse Chapter 5: The future of big data 55 Accuracy of big data 55 Law firm preparation for big data 56 Law firm staffing and big data 57 Law firms using big data directly 57 Law firms using big data indirectly 58 The future of big data and law firms 58 Dealing with negative issues 62 Big data and e-discovery 63 Conclusion 64 Bradford & Barthel, LLP Expanding into Spherical Models and spherical analytics 67 By Eric Hunter, director of knowledge, innovation & technology strategies at Bradford & Barthel, LLP and executive director of Spherical Models, LLC Alternative staffing and structural models 68 Social media and the spherical business model 69 IV
6 Big Data for Law Firms Big data predictive analytics and the spherical business model 70 Evolving business models and beyond 72 Applying big data strategies to e-discovery projects 73 By Lynn Frances, ediscovery Writer Data aggregation 73 Visualisation 74 Applications 76 V
7 Executive summary IN RECENT years, the concept of big data has evolved out of the world s insatiable appetite for information. Almost everything we do in the modern world generates data of some sort. Modern businesses have learned that there is value in this data, not just in its raw form, but in the patterns and inferences collected by varying forms of analysis. Analysing data can bring about all sorts of additional information that can be leveraged by users into patterns that tell more about what we do, why we do it, and how we do it. It gives businesses marketing material that allows very specific targeting, and allows them to deliver more useful material in a much more granular fashion. Analysts can glean more than ever before by looking at the vast swathes of data and its corresponding information, and forecasters have not only much more data to work with, but a greater ability to mine the data for useful results. This is happening partly, if not mostly, due to the explosion of available data in the world today. The amount of information that a simple transaction is able to generate is phenomenal. The growth of Web 2.0 has given every person on the planet the ability to add to the global data store, and the figures for the amount of data being generated are staggering. Considering that there are now commercial firms handling more than a billion transactions per hour, and each transaction has a vast range of data associated with it, it is easy to see where the volumes are coming from. It would be easy to dismiss these concepts as relating only to the largest transactional businesses, however, the reality is that law firms are not only going to be immersed in big data themselves if indeed they are not already but that they will also need to understand the implications of big data in order to ensure that both they, and their clients, are kept abreast of all the likely related issues and considerations that it entails. VII
8 Executive summary This report examines how law firms should be viewing the concepts of big data, and what should be considered in preparing a firm and its clients for these sweeping changes. Chapter 1 provides a useful introduction to big data and offers guidance on what big data is, how it differs from ordinary data, what caused it to evolve, as well as containing information on how the world of big data actually works. It outlines the main proponents of the big data revolution. This chapter sheds light on what organisations are using big data for, in addition to how it can assist in gaining the market advantage they are constantly striving to achieve. Chapter 2 explains the span of big data and outlines how many organisations are likely to be affected by it, or by its use. More specifically, this chapter looks at where the big data world overlaps into the legal world, the extent to which this has already occurred, and it provides insight into how it may increase in the future. Chapter 2 provides information on what big data exists in law firms currently, as well as offering insight into how that might change over time. Chapter 3 delves further into the relationship between big data and the legal world. This chapter addresses important questions such as: For what purposes might lawyers use big data repositories and tools? What could the use of big data do for law firm decision-making, and in what areas? Who within a law firm is big data likely to affect and what involvement are they likely to have? Information is also provided on who is using big data currently. Included after this chapter is an article from Eversheds LLP about Big View, the firm s reputation management tool using big data. The issue of what law firm clients will need to know when they are using big data is discussed in Chapter 4. Many firms and institutions are already harvesting information from this vast resource, and law firms need to consider what they should be doing in order to protect their clients interests and to help them steer a path through the potential legal minefield. This chapter also discusses what lawyers will need to understand in order to advise clients on related matters and it provides guidance on where law firms will need to garner their information from. An expert view from Simon Briskman, a partner at Field Fisher Waterhouse LLP, is included at the end of this chapter which highlights some of the implications in relation to privacy, data protection, and regulation. VIII
9 Big Data for Law Firms Chapter 5 focuses on the future of big data and law firms. It looks at the potential for analysing a law firm s outputs in terms of electronic billing and associated information. It also considers the potential for big data to help extrapolate and forecast legal costs, and the question of whether big data can provide even greater insights into the legal world. This chapter explores the interaction between big data and other techniques such as predictive coding, and how new techniques are likely to change the landscape for legal matters. The report concludes with two expert articles on the uses of big data in the legal industry. Eric Hunter, director of knowledge, innovation and technology strategies at Bradford & Barthel, LLP, explains how his firm has created a new consultancy and revenue base for the firm called Spherical Models which provides consulting focused on spherical business models through innovations in big data and social and collaborative cloud solutions. In the final article Lynn Frances of ediscovery Writer provides information on applying big data strategies to e-discovery projects, with insight from CDS Legal. IX
10 About the author DAMIAN BLACKBURN, formerly director of IT at a top 100 firm, is the founder and director of SLFtech, a consultancy that provides strategic technical advice, project management services, and bespoke development to law firms. He has 20 years of experience working with legal professionals, is a member of the BCS, a Prince2 practitioner, and has an MSc in Information Systems. Damian is a regular columnist for the Solicitors Journal on legal IT matters and he also blogs for the Legal Support Network. Further information on SLFtech can be found at and Damian can be contacted at damian@slftech.com. XI
Big Data for Law Firms DAMIAN BLACKBURN
Big Data for Law Firms DAMIAN BLACKBURN PUBLISHED BY IN ASSOCIATION WITH Contents Executive summary VII About the author XI Chapter 1: Introduction to big data 1 Factors leading to big data 2 The three
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