Legal IT vendors you’re not Uber, you’re just cost cutters

If there is one company that gets thrown into conference presentations on “disruption” in law firms more than any other it’s Uber. So is Uber really disruptive or is it just innovative?

“A disruptive innovation is an innovation that creates a new market and value network and eventually disrupts an existing market and value network, displacing established market leading firms, products and alliances.”

In my city it hasn’t displaced established firms or products, I suspect in some cities it has started to put existing firms out of business. But anyway that’s not the point of the article, what I often thought when hearing these talks was what actually are the key aspects to Uber’s popularity? The things that make us use them above other taxi firms? And then how would you achieve the same in a law firm?

For me personally Uber does the following:

  1. Fixes the “the driver is just round the corner” or “the driver is 10mins away” excuses when you asked a dispatcher where the taxi was. You now know exactly where the taxi is and how long you have to wait for it to arrive.
  2. Convenience of booking. No remembering numbers or what the local taxi is. It works how we work, online. A phone is now a computer and no longer a, well a phone.
  3. Lack of taxis during busy periods. Surge pricing is a big incentive to get drivers on the roads, meaning more taxis and less waiting.
  4. Lower cost. But, and it’s a big but, I think is the least important. It’s great it’s a bit cheaper but the above three would encourage me to continue using Uber regardless of a cheaper price.

And it was that last one that got me thinking that the focus in a lot of legal conferences is all about reducing the cost. Using AI to do due diligence to reduce cost, using document automation to churn through documents faster to reduce cost, automating processes to reduce cost, use legal delivery centres to reduce cost.

What we need to do is find the equivalent of the first three, what are the niggles that clients feel everytime they use a law firm? It’s not necessarily an IT solution that a Legal IT vendor can sell. It is more likely to be a simple niggle that every client is facing when dealing with law firms.

In a competitive market keeping costs low and building your market share is important, but the disruptive firm is going to find that problem to solve that’s not about cost saving but getting rid of that annoyance that many clients are facing.

And Legal IT vendors, stop advertising your tech, however innovative it is, as something that’ll disrupt and simply point out it’ll cut costs! This isn’t a bad thing in itself.

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