Disruption of the legal industry: • Disruptive technologies are typically cheaper, simpler, smaller, lower “quality” and more convenient to access • Markets are not as stable as we assume (i.e. enormous upheaval in the United States legal industry) • The victims of disruptive innovation can be adaptive and wellmanaged businesses that only invest in sustaining technologies Ben Sewell Principal of Sewell & Kettle Lawyers Phone: 02 8251 0075 Email: bsewell@sklawyers.com.au Skype: sklawyers

1. DISRUPTION OF THE LEGAL INDUSTRY
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Ben Sewell
Principal of Sewell & Kettle Lawyers

2. DISRUPTION OF THE LEGAL INDUSTRY
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Disruption of the legal industry:
• Disruptive technologies are typically cheaper, simpler, smaller,
lower “quality” and more convenient to access
• Markets are not as stable as we assume (i.e. enormous upheaval in
the United States legal industry)
• The victims of disruptive innovation can be adaptive and well-
managed businesses that only invest in sustaining technologies

3. DISRUPTION OF THE LEGAL INDUSTRY
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Driving force 1: Pull of the market
Bespoke > Standardized > Systematized > Packaged > Commoditized

4. DISRUPTION OF THE LEGAL INDUSTRY
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Driving force 2: Exponential change in Information
Technology
• Information Technology change will be exponential and disruptive to legal
practice:
• Automated document assembly
• Relentless connectivity
• Electronic legal marketplace
• E-learning and online legal guidance
• Legal open sourcing and closed legal communities
• Workflow and project management
• Embedded legal knowledge

5. DISRUPTION OF THE LEGAL INDUSTRY
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Traditional law firm
business model

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What doesn’t exist in the legal
industry: Category killer
A business with a product or service
that has such a distinctive competitive
advantage that competing firms find it
almost impossible to compete

7. DISRUPTION OF THE LEGAL INDUSTRY
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The pressures on the small law firm
• Standardisation, systematisation and commoditisation of basic
work undermines the cottage industry approach
• New channels for purchasing services online through boutique
firms or category killers
• New competitors: Supermarket as channels for commodity
services for consumers

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National medium-sized law firms: Differentiation challenge
• “Full service” national firm lacks differentiation
• Vulnerable to lower quality competitors disrupting business
model
• Axiom Law- the “law firm on a diet” (USA)

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Disaggregation: Litigation matters
• Document review
• Legal research
• Project management
• Litigation support
• Discovery
• Strategy
• Tactics
• Negotiation
• Advocacy

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Disaggregation: Transactional matters
• Due diligence
• Legal research
• Transaction management
• Template selection
• Negotiation
• Bespoke drafting
• Document management
• Legal advice
• Risk assessment

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Disaggregation: Alternatives for clients
• In-sourcing, De-lawyering, Relocating,
Off-shoring, Outsourcing,
Subcontracting, Co-sourcing, Leasing,
Open-sourcing, Crowd-sourcing,
Computerizing and No-sourcing

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Intermediaries
• Basic: www.odesk.com.au
• Developing in Australia: www.lawpath.com.au
• Most sophisticated: www.axiomlaw.com

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Big Law
• Globalisation (i.e. multinational corporations) is stimulating mergers
• Legal complexity is here to stay
• Offering systematized and packaged services as well as bespoke
services
• Development of global elite but with flatter structures

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Consequences of disaggregation and disintermediation
• Smaller industry
• Flatter structures
• Cloud-like in reach
• Focused services
= Radiant.Law, Riverview Law, Axiom Law, Legal E Docs

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Changing legal occupations
• Expert trusted adviser for bespoke work, i.e. Senior Counsel
• Will anyone want just a “solicitor”? “Right hand side” skills will be
valued too
• How is the future law student going to get experience?

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Questions? Comments?
Ben Sewell contact details:
Phone: 02 8251 0075
Email: bsewell@sklawyers.com.au
Skype: sklawyers