Big law firms and their corporate clients are engaging in a kind of data warfare, where each is analyzing massive databases of legal billing data and using them in negotiations. (ABA) Some highlights include:
Lexis Advance MedMal Navigator: This product allows you... to determine in 20 minutes - versus 20 days - if a case is worth taking on... and it gives them analysis on available expert witnesses, including insight into the kinds of cases those witnesses have participated in and the type of testimony they offered.
TyMetrix LegalView: The service aggregates the invoices of tens of billions of dollars of legal spending on an ongoing basis ... Many have used our LegalView data warehouse to compare their rates and understand the best way to position themselves with clients - low-cost provider or high-end value player.
Sky Analytics: (advises) users on whether to approve, reject or reduce increases in hourly rates requested by outside law firms. The primary variables the tool analyzes are an attorney's years of experience, his or her position in the firm, the law firm size and the cost of living where the attorney is based.
In five years, I think the entire legal services ecosystem will look different than it does today. Those law firms that can run themselves like a business will succeed and those that hold on to the billable hour will suffer.