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Legal Technology Predictions for 2005: Color My World
by Dennis Kennedy
January 2005
Originally published in the January/February 2005 Issue of Law Practice.
Reprinted with permission.

The legal profession so often sees the world in black-and-white terms that “seeing shades of gray” is considered high praise for a lawyer. In 2005, however, a rainbow of technology tools will bring color into the profession. Those taking greater advantage of technology will especially appreciate the greens of better cash flow and their competitors’ envy. Those standing on the sidelines can expect to see more red ink on their balance sheets, and to sing some blues.

The prospects for legal technology have never been better than in 2005. The confluence of broadband Internet access, big-horse-power processors, cheap memory and even cheaper mass storage has quietly made many technologies that were overhyped or speculative readily available to even the most mainstream computer user.

In 2004, surveys indicated that many small firm and solo lawyers were already ahead of some of this country’s largest firms in effective technology use. In fact, some large firm clients—Cisco being one example—are beginning to shift work to small firms that take advantage of technology. In 2005, technology offers even more dramatic improvements for the solo and small firm lawyer at surprisingly small cost. To paraphrase management guru Tom Peters, the fast fish will beat the slow fish and the small fish are the fast fish.

Let’s look into the crystal ball for highlights of what might be a banner year in legal technology.

Big Picture Trends

Systems stabilize. If you upgrade a two- or three-year-old computer this year, you will find orders-of-magnitude improvement in performance. In fall 2004, bargain hunters could buy a terabyte of hard-drive storage for well under $1,000. When you run current versions of software on newer computer systems, you will be consistently surprised and pleased by what you can do and the stability you find.

IT means business. Too many lawyers buy technology they don’t understand for reasons they don’t understand. Going forward, though, the business practices found in other industries will find their way into law firms. Expect to hear terms like “alignment with business goals,” “return on investment,” “benchmarking” and even “portfolio management.” Firms of all sizes will increasingly use IT audits, IT planning and other common business practices.

It’s too much. Technology takes an increasing amount of effort and expense at many law firms. Watch for the debate about whether handling technology internally should be part of a firm’s core business. In addition, there’s too much to learn for a practicing lawyer. We’ll see a movement to third-party providers, services and consultants as a response to this state of affairs. The magical resource for lawyers will be state bar practice management advisors.

E-discovery explodes. One trend sweeping across all law firms is the growth of electronic discovery. It will no longer be deemed the sole realm of huge cases involving huge firms. Only lawyers who enjoy losing cases and facing potential malpractice claims will ignore e-discovery.

Security matters. In 2005 you have a 0.0000102 percent chance of being struck by lightning, while you have a 70 percent chance of being the victim of a computer security breach. When will you come in out of the rain? Security problems are increasingly exploited by bad actors with bad intentions.

Move over, the client wants to drive. Lawyers’ technology (and billing) practices frustrate clients. They see us as service providers who should be catering to the technologies they use and making it easy for them to work with us, not vice versa. They will be taking action in 2005.

Return to the future. Today’s computer environment brings yesterday’s not-ready-for-prime-time technologies back to life. Look for the return of the hosted software services model, which makes good sense for small firms and solos. Document assembly, voice recognition, extranets and deal rooms are much more realistic prospects today.

Return of the Internet. The Internet has rather quietly become a powerful platform for a variety of innovative services and practical applications—from making phone calls to generating information feeds to facilitating online collaboration. These services are accessible, affordable (or even free) and easy to use effectively. Plus, the legal blogging phenomenon is forever changing the way lawyers will use Web pages.

Digital magic shines. E-discovery will help lawyers see that once information is in digital formats, it can be used in a multitude of ways. Electronic evidence and pleadings prepared for electronic filing can be easily transferred into other programs. It becomes logical to manage digital materials in Summation, use the same materials to analyze, plan and prepare your case in CaseMap, display them to a judge or jury, and carry the entire case file with you on a hard drive or CD-ROM. In fact, it becomes difficult not to do these things.

Lawyers first. Technology-savvy lawyers will increasingly demand the tools they need, purchase the tools themselves, or simply leave (often because they have to purchase the tools themselves). In bigger firms, the priorities of the staffs and IT departments too often take precedence over the needs of lawyers. This results in “least common denominator” decisions that ultimately satisfy few, if any, lawyers. Those in small firms too often make decisions solely to accommodate secretaries and other staff. Lawyers now will begin to choose the best tools for their own needs.

Getting our reputations back. The legal bloggers have done a great job of changing others’ perceptions of lawyers for the better, at least on the Internet. Watch for innovation and more generation of goodwill from the world of legal bloggers.

Specific Rapid-fire Predictions

Topic #1: Security
Security concerns and the rising tide of information overload are casting a shadow on technology. Experts consider cyberterrorism a probability, not just a possibility, in 2005. Lawyers’ notorious disregard of basic security practices threatens not only law firms, but also their clients and the Internet itself.

In addition, the steady stream of e-mail and other information threatens to turn into an overwhelming torrent, with both financial and psychological implications.

Shoddy personal security practices, especially weak passwords, will result in serious losses, embarrassment and potential liability in 2005.

Topic #2: Software
Expect across-the-board upgrades and updates to existing software as a result of security risks and client complaints.

Microsoft Office 2003, especially the Small Business or Professional version, becomes the first Microsoft product lawyers admit to liking. But watch for some movement away from Microsoft products, for security and other reasons. Expect to see some backlash as many people jump into new products without fully understanding the implications.

The number of practice-specific programs surprises many lawyers. For example, CaseMap, Summation and Trial Director are just a few of the great programs that litigators now swear by. Litigation software continues to be the place to watch for developments, improvements and the most interesting products.

In addition, Adobe Acrobat Writer (now Adobe 6, with 7 on the way) becomes an essential program for every law office. Plus, antivirus, personal firewall, spyware detection, backup and other security software finally begin to penetrate the legal market in meaningful ways.

2005 Software of the Year: It’s a tie between CaseMap 5 (especially the ReportBook feature) and Microsoft OneNote, which will get a lot of deserved attention as a great tool for lawyers.

Topic #3: Third-Party Services
The application service provider (ASP) model returns in a more mature form (probably with a different name), offering good results for firms of all sizes that do their homework, have reasonable expectations, and identify the best ways to use services. “Software as services” areas to watch include online case and project management, collaboration and conferencing, e-discovery, document assembly and data backup.

In addition, law firms focusing on their core businesses begin to turn a variety of “essential” functions over to third parties, including security, network maintenance, help desk and user support, Web hosting and even e-mail. Nearly every technology decision involves a consideration of third-party service providers and some form of business analysis and justification.

Topic #4: Client-Driven Technology
Both individuals and businesses are using the Internet as a “self-serve” source of information and will choose lawyers according to the content they find on the Web. At the same time, pressures from clients will increasingly become the primary driver for technology projects in law firms.

Clients will be happy with relatively minor and easy applications, at least for now. Online conferencing, simple extranets, compatibility with their applications, simple electronic billing and RSS feeds will take you a long way. Blogs and RSS feeds will become the leading vehicles for providing clients with the information they want. But the best effort any lawyer or law firm can make is to ask clients, directly or by a survey, what technologies they use and want to use.

Topic #5: At the Lawyer’s Fingertips
Search tools for both your network and your computer’s hard drive will become a priority. Expect growing interest in search features of document management programs and desktop search engines such as Google Desktop Search, Copernic Desktop Search, X1 and Enfish. Also watch for growing exploration of “personal knowledge management” with new tools (like OneNote or blogs) and better use of existing tools (case management, document management or Microsoft Office).

For individual lawyers nothing is more important than time management. Current interest in time management tools, such as The MasterList or David Allen’s Getting Things Done, will increase. Case management software will place greater emphasis on such features. Unfortunately, however, even though realizing the value of training, most lawyers will continue to be “too busy” to avail themselves of opportunities—and they’ll be frustrated by processes that about 30 seconds of training would have remedied.

Conclusions

The one trend that will not hit lawyers in 2005 is computer modding, the practice of customizing and personalizing computers with lights, colors and thematic designs. Even I will not be so bold to suggest that we will see lawyers going that direction, although we may see a few lawyers go for a “mod,” like a laptop wrapped in gray-wool suit fabric or tasseled loafer leather.

However, from hardware to software to services, lawyers will have, and will take advantage of, affordable opportunities to put some color into their practices, bringing interest and enthusiasm to their clients and themselves. Whether legal technology in 2005 will bring your practice to a rainbow with a pot of gold will depend on your own choices. But ignoring the trends and developments this year will definitely leave you red-faced, white-knuckled and feeling blue.

Quick-Shot Hardware Forecasts

Tablet PCs become the computer of choice (although probably not reality), especially for litigators.

The PDA begins a swift decline in the legal profession.

Macintosh use by lawyers, although remaining small, will grow substantially. Want a Mac? Go ahead and buy it.

Inexpensive high-capacity hard drives make easy backup possible. (Some estimates say that 60 to 80 percent of lawyers currently do absolutely no computer backup.)

Multifunction printers, combining printing, scanning, copying, faxing and color in one unit, appear with increasing frequency. The ubiquitous and beloved HP LaserJet found in many offices makes room for the HP OfficeJet.

Cheap and powerful proves an irresistible combination. Lawyers find that their computers are fast and stable, with plenty of room to do what they wish.

2005 Hardware of the Year
Low-cost network servers from Dell, HP and others, bundled with the inexpensive Windows Small Business Server, offer a powerful “law office network in a box” for many small firms, especially start-ups.
— Dennis Kennedy

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DISCLOSURE: The author may have modest financial relationships with some of the companies mentioned in this article.


Dennis Kennedy (dmk@denniskennedy.com) is a well-known legal technology expert and computer lawyer based in St. Louis, Missouri. An award-winning author and a frequent speaker, he was named the 2001 TechnoLawyer of the Year by TechnoLawyer.com for his role in promoting the use of technology in the practice of law. His blog (http://www.denniskennedy.com/blog/) and web page, (http://www.denniskennedy.com/) are highly regarded resources on technology law and legal technology topics. Dennis is a member of the American Bar Association Law Practice Management Section's Council, ABA TECHSHOW Board, and Webzine Board.