There are a number of theories about why this apparent contradiction exists. Perhaps the move to SaaS and subscription-based models has changed the way technology spend is categorized, shifting spend from capital expenditure to operational expenditure. Many firms have adopted large Case Management and CRM solutions and may now be looking at smaller more nuanced projects to optimise efficiency and customer service delivery rather than big budget programmes. Or as one report suggests, firms may be creating technological debt whereby under investment in technology is resulting in a lack of capability that means proportionately larger future investment will be needed**.
Whilst market trends are valuable indicators in a highly competitive arena, the crux is: What is my firm’s approach to technology adoption and is there a clear plan and rationale for this that supports our strategic goals?
The success of technology implementations within a business and the fact that it is cited as an important driver, is not due to the level of spend you apply year on year alone. It is the long term value that those implementations provide to the business that determines their success. If you have a technology roadmap that is grounded within your over-arching strategy, is fully costed and documented, communicates a powerful rationale across the business and clearly defines the direction your business is taking, then the correct level of investment will be planned and justified.
Done well, a technology roadmap provides the backbone to the business strategy, accelerating business growth and efficiency in a controlled way where return on investment is achieved as planned, fuelling subsequent projects that service long-term objectives, whilst fulfilling current needs and avoiding quick fixes. When communicated with colleagues it should provide them with confidence that their business is looking forward with purpose and making credible changes to achieve their goals.
In defining their roadmap, firms must be realistic about their current position and the direction they will take. Whilst certain technologies are popular and there may be a trend in adoption, you should be driven by your own objectives. Just because a competitor has adopted a particular solution or technology, doesn’t mean that it would offer the same benefits to your organisation. Each business has a different set of circumstances at the outset, and it is important to focus on the opportunities that will add the greatest value to your business.
Despite spend on technology reportedly reducing over the past year, our experience tells us this isn’t a reflection on the value that technology is driving within firms or the scale of change that is taking place. Increasingly, firms are looking to maximise their return on existing large scale software solutions or continuously improve efficiencies by adopting more nuanced and innovative technologies such as Robotic Process Automation and AI. From the perspective of an individual firm, there is a huge opportunity to gain competitive advantage and increase profitability through the adoption of technology and it is imperative that firms seize opportunities available to them as part of a credible, strategy-based roadmap based on value delivered to the business.
We work closely with our clients to understand their business, determine the right technology choices to capitalise on opportunities, and continually improve their processes as part of an agreed roadmap based on value.
If you are interested in learning more about how technology can support your firm and are interested in working with a partner who can develop a plan individually tailored to your business goals, current circumstances and budget, then contact our experts today. We’re happy to have an informal conversation and to answer any questions you may have.
* HSBC UK Legal Tech Analysis 2019
** PwC Law Firms’ Survey 2019
