The Consolidation Trend in Legal Technology Continues'to the Benefit of Law Firms
On Wed 29 Sep 2021
We've written before about the advantages of consolidating legal technology companies and why we expect the consolidation trend to continue.The good news for our law firm clients is that tech consolidation generally benefits them as much as it does the merging companies. In addition to the advantages we've discussed before'improved and expanded services, better resource and time management, and a wider geographic service range'Litera Microsystems has noticed several other changes since our own merger last year. These have not only represented improvements for us but have also produced pass-through advantages for our clients.
More People = Enhanced Creativity and Problem-Solving
We've already found that putting our heads together collaboratively, instead of competing for market share, has allowed us to more creatively solve customer problems. This is consistent with research showing that complex problems are better solved by 'a group of people with diverse individual expertise' than by a homogeneous group.Bringing different people together'as happens when companies merge and consolidate their forces'allows all of us to benefit from an expanded array of different ideas, approaches, and life and business experiences. It also allows greater confidence in data security: the more people a company has troubleshooting and thinking about security, the more comprehensive the protections it can muster. Together, increased creativity and stronger security result in better products for our clients'programs and platforms that solve their problems more effectively, with lower risks.
More Applications = Greater Cross-Pollination
Now that we're working together, we're seeing new ways to integrate our applications and combine our diverse areas of expertise and knowledge. Every industry vertical has its own way of looking at the world, but true synergy happens when ideas from different verticals are recombined to create something new. When legal technology companies merge, each brings a specific expertise to the table.
More Locations = Global Reach in the Age of the GDPR
With the EU's General Data Protection Regulation (GDPR) businesses everywhere'including law firms'are increasingly aware of data privacy and necessary cross-border protections. Legal technology companies with a global presence are more attuned to and more prepared for these types of international issues. For us, having an office in the UK provides a tremendous insight into European data privacy concerns, to the benefit of our law firm clients everywhere.
More Data = More Information for AI to Digest
Artificial intelligence (AI) feeds on data like a blue whale feeds on krill: it's voracious, and it takes a lot to fill it up! With our increased focus on AI technologies, we've been on a quest for more and better data. Combining companies'and customer bases'has aided that quest, giving us exponentially more data to work with. Additional data makes for smarter AI, which allows us to build better, faster, more capable products for our clients. For example, we recently released our first post-merger product, Clause Companion, putting a complete library of contract clauses at our clients' fingertips within Microsoft Word. We couldn't have produced such a useful tool without bringing all of our experiences and all of our discrete data sources together.
One Plus One = More Than Two
For all these reasons and more, we expect that legal technology companies will continue to consolidate in a variety of ways, maximizing the benefits for the companies involved'and for the clients they serve.