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INNOVATION AND EMERGING 
TECHNOLOGY 
COPYRIGHT © 2014, RON DOLIN 
1 
Ron Dolin, J.D., Ph.D. 
Research Fellow 
Center on the Legal Profession 
Stanford Law School 
Law Firm Leaders Forum 
New York, Nov. 6-7, 2014
PART 1 
Substantive Hints of 
Change: 
Innovative Technology 
Popping Up 
COPYRIGHT © 2014, RON DOLIN 2
FIDELITY: ESTATE PLANNING 
PILOT 
 Go-to place for retirement planning 
 Marketplace between clients and lawyers 
 Company reputation at stake 
 How to use, pass information? 
 How to set pricing? 
 How to guarantee quality? 
COPYRIGHT © 2014, RON DOLIN 3
LEGALZOOM ENTERS SAM'S 
CLUB 
 Avoids UPL with lawyer review 
 Competing against non-consumption 
 Minimal (but existent) quality requirements 
 Moving up-market with low margin model 
 Increasing corporate work 
COPYRIGHT © 2014, RON DOLIN 4
STARTUPS AND ABS'S 
 AFA all around 
 Improved value: quality up, costs down 
 Riverview, Everlaw, Novus Law, Ravel, Modria, 
Lex Machina, etc. 
 Legal services without law firm constraints 
 Focus on client needs and design process 
COPYRIGHT © 2014, RON DOLIN 5
CORPORATE CLIENTS 
 Google wants to measure ROI on legal spend by 
measuring law firm value (e.g. quality); 500 
attorneys with 40 engineers. 
 Cisco at 80% flat fee with standard business 
metrics (performance) – not law firm metrics. 
 Fad or movement? 
(“Inc.” magazine article once said that the web was 
a fad and compared it to CB radios.) 
COPYRIGHT © 2014, RON DOLIN 6
OPTIMIZING PRODUCT 
PURCHASING* 
* innovias.com 
COPYRIGHT © 2014, RON DOLIN 7
OPTIMIZING SERVICE 
PURCHASING* 
* innovias.com 
COPYRIGHT © 2014, RON DOLIN 8
IN GENERAL (E.G. LEGAL)* 
* interactioneurope.com 
COPYRIGHT © 2014, RON DOLIN 9
Row 1 Row 2 Row 3 Row 4 
COPYRIGHT © 2014, RON DOLIN 10 
12 
10 
8 
6 
4 
2 
0 
Column 1 
Column 2 
Column 3 
0 10 20 30 40 50 60 70 80 90 100 
1 
0.9 
0.8 
0.7 
0.6 
0.5 
0.4 
0.3 
0.2 
0.1 
0 
E-discovery Quality 
(hypothetical) 
Relative Cost 
Precision * Recall
PART 2 
COPYRIGHT © 2014, RON DOLIN 11 
Legal Design: 
Structured Innovation 
Process 
Focus on Client/User 
Needs
INNOVATOR'S 
DILEMMA/SOLUTION* 
 Threats and opportunities 
 Sustaining innovation – efficiency 
 Disruptive innovation – new markets 
 Non-consumption – simple requirements 
 Unknown and unknowable markets 
* Christensen/Raynor 
COPYRIGHT © 2014, RON DOLIN 12
LAW FIRM INNOVATION 
 Compare marketing (2-3%) with innovation 
budget. 
 Measuring ROI on marketing (which focuses 
on current offerings)? 
 Propose: 1% on innovation. 
 Focus: pilots and business models, 
not large-scale software development. 
COPYRIGHT © 2014, RON DOLIN 13
TECHNOLOGY REQUIRES 
INTEGRATION 
 Seyfarth – client-focused 
engineering team 
 Fenwick – doc automation startup 
pipeline 
 New business opportunities? 
 Law firm API (micro-questions)? 
 Automated contract analysis 
(text analysis)? 
 Alternate settlement models 
(big-data)? COPYRIGHT © 2014, RON DOLIN 14
INNOVATION PROCESS 
 Independent team, dedicated 
budget 
 Discovery-based planning, not 
stage-gates 
 Identify assumptions, test early, 
repeat 
 Budget must include learning 
through trial-and-error 
COPYRIGHT © 2014, RON DOLIN 15
LEGAL DESIGN PROCESS 
 Stanford's d.school – dschool.stanford.edu 
(Margaret Hagan) 
 Structured: empathy, ideation, testing, etc. 
 Applied to the legal system generally (estate 
planning, immigration, patent system...) 
 Applicable to law firms 
COPYRIGHT © 2014, RON DOLIN 16
CONCLUSION 
 Design work is simply a structured 
approach to discovering and solving 
(client) needs 
 The design process is being applied 
across the legal system, including 
(some) law firms and their new 
competitors 
 The challenge is not how to incorporate 
technology – it's how to incentivize 
innovative behavior 
COPYRIGHT © 2014, RON DOLIN 17
COPYRIGHT © 2014, RON DOLIN 18 
Ron.A.Dolin@radicalconcepts.com 
@legalnoise 
radicalconcepts.com; legaltechdesign.com

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Innovation and Emerging Technology

  • 1. INNOVATION AND EMERGING TECHNOLOGY COPYRIGHT © 2014, RON DOLIN 1 Ron Dolin, J.D., Ph.D. Research Fellow Center on the Legal Profession Stanford Law School Law Firm Leaders Forum New York, Nov. 6-7, 2014
  • 2. PART 1 Substantive Hints of Change: Innovative Technology Popping Up COPYRIGHT © 2014, RON DOLIN 2
  • 3. FIDELITY: ESTATE PLANNING PILOT  Go-to place for retirement planning  Marketplace between clients and lawyers  Company reputation at stake  How to use, pass information?  How to set pricing?  How to guarantee quality? COPYRIGHT © 2014, RON DOLIN 3
  • 4. LEGALZOOM ENTERS SAM'S CLUB  Avoids UPL with lawyer review  Competing against non-consumption  Minimal (but existent) quality requirements  Moving up-market with low margin model  Increasing corporate work COPYRIGHT © 2014, RON DOLIN 4
  • 5. STARTUPS AND ABS'S  AFA all around  Improved value: quality up, costs down  Riverview, Everlaw, Novus Law, Ravel, Modria, Lex Machina, etc.  Legal services without law firm constraints  Focus on client needs and design process COPYRIGHT © 2014, RON DOLIN 5
  • 6. CORPORATE CLIENTS  Google wants to measure ROI on legal spend by measuring law firm value (e.g. quality); 500 attorneys with 40 engineers.  Cisco at 80% flat fee with standard business metrics (performance) – not law firm metrics.  Fad or movement? (“Inc.” magazine article once said that the web was a fad and compared it to CB radios.) COPYRIGHT © 2014, RON DOLIN 6
  • 7. OPTIMIZING PRODUCT PURCHASING* * innovias.com COPYRIGHT © 2014, RON DOLIN 7
  • 8. OPTIMIZING SERVICE PURCHASING* * innovias.com COPYRIGHT © 2014, RON DOLIN 8
  • 9. IN GENERAL (E.G. LEGAL)* * interactioneurope.com COPYRIGHT © 2014, RON DOLIN 9
  • 10. Row 1 Row 2 Row 3 Row 4 COPYRIGHT © 2014, RON DOLIN 10 12 10 8 6 4 2 0 Column 1 Column 2 Column 3 0 10 20 30 40 50 60 70 80 90 100 1 0.9 0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1 0 E-discovery Quality (hypothetical) Relative Cost Precision * Recall
  • 11. PART 2 COPYRIGHT © 2014, RON DOLIN 11 Legal Design: Structured Innovation Process Focus on Client/User Needs
  • 12. INNOVATOR'S DILEMMA/SOLUTION*  Threats and opportunities  Sustaining innovation – efficiency  Disruptive innovation – new markets  Non-consumption – simple requirements  Unknown and unknowable markets * Christensen/Raynor COPYRIGHT © 2014, RON DOLIN 12
  • 13. LAW FIRM INNOVATION  Compare marketing (2-3%) with innovation budget.  Measuring ROI on marketing (which focuses on current offerings)?  Propose: 1% on innovation.  Focus: pilots and business models, not large-scale software development. COPYRIGHT © 2014, RON DOLIN 13
  • 14. TECHNOLOGY REQUIRES INTEGRATION  Seyfarth – client-focused engineering team  Fenwick – doc automation startup pipeline  New business opportunities?  Law firm API (micro-questions)?  Automated contract analysis (text analysis)?  Alternate settlement models (big-data)? COPYRIGHT © 2014, RON DOLIN 14
  • 15. INNOVATION PROCESS  Independent team, dedicated budget  Discovery-based planning, not stage-gates  Identify assumptions, test early, repeat  Budget must include learning through trial-and-error COPYRIGHT © 2014, RON DOLIN 15
  • 16. LEGAL DESIGN PROCESS  Stanford's d.school – dschool.stanford.edu (Margaret Hagan)  Structured: empathy, ideation, testing, etc.  Applied to the legal system generally (estate planning, immigration, patent system...)  Applicable to law firms COPYRIGHT © 2014, RON DOLIN 16
  • 17. CONCLUSION  Design work is simply a structured approach to discovering and solving (client) needs  The design process is being applied across the legal system, including (some) law firms and their new competitors  The challenge is not how to incorporate technology – it's how to incentivize innovative behavior COPYRIGHT © 2014, RON DOLIN 17
  • 18. COPYRIGHT © 2014, RON DOLIN 18 Ron.A.Dolin@radicalconcepts.com @legalnoise radicalconcepts.com; legaltechdesign.com