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 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 2
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. There is a skills shortage of valuable contributors 3
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 5
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. 7
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 8
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 9
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 10
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 11
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 12
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 13
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 14
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 15
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 16
Discussion What do you think? Does your firm look at change as opportunity? Or as unfortunate? What does the future look like to you? 17
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.