In 2001, Steve Jobs introduced the world to the iPod from a small stage in Cupertino, California. Six short years later, he unveiled the first iPhone. As consumers, we often look at tech innovations and gadgets with rose-tinted glasses, jumping at the chance to use the next shiny new toy or app.
For businesses though, especially law firms, all of this endless innovation can be terrifying. But it doesn’t have to be. Here's how technology is benefiting the legal industry.
What is disruptive innovation?
The phrase "disruptive innovation" is a popular buzzword in modern market literature. Generally, it begins when a small company deploys novel technology that challenges (or, in some cases, replaces) the products or services offered by established companies within a given industry. Industry disruption happens when the status quo adapts to the new competition and deploys similar technology en masse.
The rise of Uber is a notable example of disruptive innovation within the transportation industry.
When Uber NYC launched in May 2011, it immediately exposed massive problems within the city’s taxi medallion program. Not only did the rise of Uber reveal that the taxi program artificially suppressed demand and was priced unfairly, but it also capitalized on these problems by offering consumers a brand-new, affordable, and readily available transportation option that exploded in popularity across the city and subsequently, around the globe. Many players in the transportation industry adapted to Uber’s innovation and the disruption is evident in today’s market.
Disruption leads to industry convergence
Ten years ago, the idea of receiving healthcare services at a local Walmart seemed foreign. Today, Walmart blurs the line between the retail and healthcare industries by offering health insurance plans, in-store immunizations, and health screenings to its customers. Similarly, online pharmaceutical companies, like PillPack, are shaking up the way people shop for medicine and transforming the way industry giants like CVS serve their customers.
As new players innovate, established companies are forced to adapt to the disruption, and industries often converge as a result.
Law firms are not immune from disruption
LegalZoom.com launched in 2001, ushering in a new wave of industry competition and forever changing the way consumers value legal services. Platforms like LegalZoom, Rocket Lawyer, and UpCounsel are often easier to use, cheaper, and more efficient than engaging with traditional law firms. While online legal platforms have limitations, their existence has required brick-and-mortar law firms to embrace 21st-century solutions for case management, marketing, communications, and client relations. In fact, according to Google, online searches for these digital-first legal services have increased by 67% over the last five years. If traditional law firms are to remain relevant, they must leverage technology to offer the same efficient and transparent service that companies like LegalZoom offer.
Technological innovation will continue in the legal industry. As the industry changes, do you want your firm to lead the change, or risk being left behind?
Future-proof your firm’s legacy
There are only two options for responding to disruption. Law firms can clutch their pearls, cling to the old way of doing business and find themselves in a similar position that New York City's taxis found themselves in, with no viable response to Uber. Or, they can embrace innovation by deploying technology designed to automate daily tasks, efficiently market legal services, and simplify client engagement.
Think about your firm’s legacy and what you’ve built. Is it future-proof? Do you have the tools you need to remain competitive in 2019 and beyond?
If you’re ready to explore how to take your law firm to the next level by capitalizing on industry convergence, it’s time to check out Litify. Litify provides law firms with the foundation and resources for providing a superior level of customer experience that clients now expect.
Consumers are already turning from traditional law firms towards online providers. It’s time to bring them back and secure your firm’s legacy. Let’s talk about how our solutions can give your firm the tools it needs to become a high-performing business now and for years to come.