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Charles Christian's LEGAL TECHNOLOGY iNSIDER independent news & comment on legal technology
CONTENTS - Issue 123 - Wednesday 19 September 2001
ATTACK ON AMERICA - THE AFTERMATH
Thacher Proffitt, which saw its head office destroyed when the towers collapsed, says it has lost some data but is confident the practice will be rebuilt "from the ground up". Sidley Austin, which has its head office in Chicago, has leased an additional four floors in its midtown office in Third Avenue and reopened for business on Monday.
Sidley Austin's main IT problem was the loss of its global email system however within hours it had implemented a back-up voice mail service and now has resumed full IT operations. Sidley Austin's difficulties were exacerbated by the fact the attack also destroyed or damaged many of the telecommunications facilities located in the downtown Manhattan area, knocking out phone, data and cellular communications links.
Looking at the broader picture, because so much of the area surrounding the WTC is closed to all but emergency services, the Office of Court Administration estimates that over 14,000 lawyers - about 20 percent of all lawyers in New York city - are currently unable to use their offices.
One of many organisations trying to ease this problem is the West publishing group, which has set up a crisis response team offering a variety of facilities, including access to research materials and special discounts for firms having to rebuild their law libraries. The company has even offered "to share our computers and office space with as many legal professionals as we can accommodate" when its Westlaw centre on Fifth Avenue reopens.
ARE YOU READY FOR THE UNTHINKABLE ?
SIGNS OF RECOVERY IN UK LEGAL IT SECTOR
In terms of financial results, Solicitec has just recorded a record year with turnover up 15 percent to £6 million. Over the past year the company's case management software has been implemented in over 50 new law firm sites, with the majority opting for the SolCase Online web enabled version of the system. Chairman Neil Ewin is optimistic that the company's new VisualFiles product, which is now running on SQL Server, will open up new markets for Solicitec.
Good news too at Valid Information Systems which announced a 76 percent increase in turnover to £2.8 million for the year ended 30th April and a five-fold increase in post tax profits to £690k. Valid also wrote off £580k on R&D during this period.
And it is a similar positive story from MSS where managing director Simon Meehan reports that while sales are now almost back to the levels during the pre-Y2K boom, profitability has substantially improved as the company focuses more on software and services. Meehan anticipates a further boost when Version 1.7 of the company's flagship PMS product Vantage is released next month. Enhancements include a new criminal attendance notes system for CDS work and a CRM/marketing module.
FALCON IN AT LINKLATERS
HOPING FOR BETTER LUCK WITH PILGRIM
The latest deals bring to 11 the number of new orders Pilgrim has won this year. By coincidence, both firms have in the past suffered the misfortune of seeing their incumbent software supplier go out of business.
Stronachs had been one of the largest users of Signet accounts software from CB Business Systems Legal, until the company went into voluntary liquidation earlier this year. CB's assets were subsequently acquired by TFB.
Antony Hodari was last in the legal technology news way back in 1996. This was when the firm set up its own software business - Ultima Computing - to support users of the ICAS case management system. At that time ICAS was in use in seven firms, including Antony Hodari, when its original supplier F&F Systems (formed by Brian Pittaway, previously a developer at Law Data) collapsed with cash flow problems and reported debts of £100,000.
THE LEGAL TECHNOLOGY JOBS BOARD
Current vacancies include: a sales consultant with legal supplier SOS - the package includes a BMW; a systems administrator with JST Mackintosh in Liverpool; three legal systems account managers for TFB operating out of Fareham; a systems administrator/accountant in the finance department at Lovells, experience of the Elite PMS is desirable; three sales account managers at CMS Open, including one Paris-based post.
US CONSULTANTS SAY FIRMS WASTE MONEY
Just over 70 of the largest law firms in the United States responded to Hildebrandt's 2001 IT/business process improvement survey. The good news is the survey found that IT now accounts, on average, for about 6.66 percent of a law firm's gross revenues - an increase on last year's average of 5.95 percent. (Of these budgets, about 35 percent goes on staff, nearly 40 percent on operating expenses and just under a quarter on depreciation.)
The bad news is the survey found that this increased IT expenditure "does not seem to have had a significant impact on the reporting firms' organisational structures or staffing ratios" with few firms hitting Hildebrandt's recommended benchmark ratio of two lawyers for every secretary or one lawyer to every administrative staff member (including secretaries and other non-fee earners).
The Hildebrandt study concludes with a warning from consultants Curt Canfield and Sally Gonzalez that: "Our survey results seem to support our sense that increasing IT expenses has not dramatically changed the way law offices work.
"We feel that profitability and productivity at many firms are not as high as they could be. It appears that IT is being deployed on a tactical level without strategic commitment to positively affect either the revenue or expense side of the ledger. Spending 5-6 percent of your gross revenue without some noticeable - and positive - effect often compounds economic, operational and cultural problems within the firm."
Hildebrandt suggest firms "take a fraction of this spending and devote it to strategic planning that will make the kind of difference that firms want and need".
WHAT DO WE WANT - WE WANT XP BUT NOT KMS
The most frequently mentioned items on this year's IT shopping lists were upgrades to Windows 2000 or XP and Microsoft Office XP. The least popular items were knowledge management systems, ASP (application service provider) solutions and speech recognition, which elicited precisely zero interest among survey participants.
FORMER AVENUE FLAGSHIP SITE FALLS TO SOS
Napthens joins a list of sites SOS has taken from other suppliers over the past few months. Other wins include: Awdry Bailey & Douglas in Wiltshire and Wace Morgan in Shrewsbury from TFB, Landes & Co in Kent from Axxia, and Vanderpumps in north London from AIM.
EPOCH SURVIVES NEAR DEATH EXPERIENCE
Ten days later, after a marathon 27 hour negotiating session, the liquidators agreed to sell the business to its original management team, including co-founders Richard and Grahame Cohen, for an undisclosed sum. So what went wrong and what implications does this have for the future of online legal services in the UK?
In an exclusive interview, Richard Cohen told the Insider that while the immediate cause of the collapse was the inability to secure additional funding - Epoch's board spent the past five months talking to nearly every venture capital group in the UK but was unable to find anyone prepared to invest in a dotcom business - the failure also raised serious doubts about the current demand for online legal services as an alternative to conventional bricks and mortar legal services.
Although the new business will continue to run the old Desktop Lawyer (MyLawyer.com in the US) consumer oriented online services, it would do so primarily as a shop window to promote the company's technology capabilities, including its RapiDocs document assembly system.
For the future however, the main focus of the business will shift to the supply of bundled online legal service packages to third parties, such as banks and insurance companies, who will then include them as part of larger products that they sell directly to their own customers and policyholders. The Epoch's US arm (All American Law Inc) is already selling its services as part of a legal expenses insurance package offered by Royal & SunAlliance.
Cohen said Epoch would still be interested in talking to smaller law firms wanting to offer ecommerce services to their clients, via Epoch's DirectLAW system, but would no longer be actively promoting this side of the business. "Because there is no money in it. You can advertise your online legal services until the cows come home but there are not the volumes of consumers and SMEs out there to buy these services.
"The only organisations that are going to make this work are either the very large law firms or organisations like insurance companies who already have a captive audience for their services. I really do believe the internet is the way legal services will be delivered in the future but we thought the market would move a lot quicker than it has done. With hindsight, I can see we were ahead of the times and that we are looking at maybe another five years before the demand for online legal services in the High Street firms/consumer market really takes off."
US CRISIS HITS EURO LEGAL IT SHOW
Visitor numbers were low. From the stack of unclaimed name badges at the registration desk it looked as if less than half the 550 delegates expected actually turned up. It was always likely that some of the people who registered for the free exhibition never intended to visit however there were also a considerable number of no-shows among paying delegates who had booked for conference sessions, suggesting they had either abandoned their travel plans in the wake of the terrorist attacks or else were unable to attend because of the subsequent flight cancellations.
On a more positive note, all the exhibitors the Insider spoke with were full of praise for the quality of delegates who did attend - it was apparent that many firms had sent high level decision makers huge distances with the sole purpose of meeting up with specific suppliers.
For example CMS had appointments booked several weeks in advance by firms from Poland and Lithuania. The winner of the WordWave/Smith Bernal prize draw was a Bulgarian lawyer. The Insider met with delegates from Spain, Norway, Russia, Denmark and the UK. There were also a brace of Polish judges, plenty of delegates in evidence from the Netherlands - not surprisingly - and even one delegate from New Zealand. In fact the French were the only obvious absentees although that probably says more about French lawyers than the event.
The event also revealed that English is the language of modern legal practice management with most delegates seemingly unconcerned that much of the software they were looking at was only available in English.
The layout of the venue left something to be desired, for example the conference sessions were far too remote from the main exhibition area. And a number of people said they would have liked to have seen a Dutch-style 'coffee' shop - an improper suggestion the organisers, the Ark Group, quite rightly pretended not to understand.
Despite all the unfortunate circumstances this year, most of the exhibitors we spoke with were willing to give the event another chance - Ark have already earmarked October 9 & 10 as the dates for Legal Solutions Europe 2002. The location will be Jersey in the Channel Islands.
BEING PROFESSIONAL WITH XML
Now, KnowHow Systems (01483 757457) has released details on the role XML and its KcentriX content management system played in the development of the BeProfessional.com service. This is a joint venture by Berwin Leighton Paisner and Deloitte & Touche to deliver a range of professional, advisory services on legal, tax and accounting issues to small businesses over the internet.
According to KnowHow managing director Tony Foy, one of the big problems was the internet 'language conversion barrier' which makes it difficult to control the look and integrity of documents created and stored in multiple formats, including Word/RTF, HTML and PDF.
BeProfessional.com needed a common format and saw XML as the way ahead, as it allows the presentation requirements for documents to be separated from the content, which can be stored and finally transformed into differing formats as required.
For security and integrity purposes, BeProfessional.com also wanted to be able to present some documents in a non-revisable PDF format. To tackle this aspect of the project, KnowHow teamed up with CDC Solutions which has a Java based publishing system, called Xtensia, that can deliver content from XML directly into PDF.
By adding the different elements together, KnowHow's system guides users through a document assembly process by asking simple questions on standard HTML pages at the browser. KcentriX assembles the document and populates the necessary fields based on user input and the rules within the system, storing the user inputs and generated documents in XML for re-use. Then, CDC's Xtensia takes the content, fusing together the XML boilerplates and style sheets, and dynamically publishes it to a PDF file format which is then archived and available for future search or re-use.
Foy admits that it all sounds complex but says the beauty of this approach is BeProfessional.com users encounter none of the underlying technology. Instead, they simply access and complete tax forms or legal documents online and then print them out.
www.knowhowsystems.com
VIDEO CONFERENCING - STILL NOT LISTENING
The event was hosted by videoconference technology developer PictureTel and it was quite clear from the demonstrations of the company's new iPower range that the latest generation of videocon systems not only offer far better data integration for working with PC applications but have also largely overcome the 'audio fatigue' (the delay in the transmission of sound) problems that made earlier units so awkward to work with.
Instead, it was the unanimous verdict of all the lawyers present at the event that the biggest inhibitor to the take up of videoconferencing by the legal community were not technology factors or even concerns about the effectiveness of video testimony but price.
All made the same point, if videoconference systems suppliers followed the example of the mobile phone industry, where hardware prices are subsidised, it would encourage more people to use it and so develop the critical mass videoconferencing needs if it is ever to move on from being a nice-to-have novelty and become an essential, must-have communications medium.
Ironically, while audio fatigue may have been banished from the actual hardware, it still remains prevalent among the suppliers of videoconferencing systems, who steadfastly rejected all criticism of their pricing strategies.
DEDICATED SEARCH TOOL FOR LAWYERS
Called the infolaw finder, it provides access to a catalogue of over 36,000 legal documents, including primary and secondary law sources, plus thousands of other key legal resources and relevant organisations - all browsable and searchable from a single access point. In addition, a 'References to this' feature also enables users to locate all web references to each of the resources listed with a single extra browser click.
Commenting on the need for the new service Information for Lawyers' managing director (and co-author of Butterworths Researching the Legal Web) Nick Holmes said: "Lawyers are currently frustrated by the inadequacies of search tools for the purposes of legal research and the considerable time and effort required to achieve meaningful results. Traditional global search engines are extremely good at what they do, but looking for material within a specific vertical domain you get a lot of haystack with the needles. By contrast, infolaw looks for needles in the needle box."
The service is initially being offered free of charge for an introductory period. Thereafter it will be available on an annual subscription - rates have yet to be announced. To access infolaw visit www.infolaw.co.uk
PEOPLE AND PLACES
ResSoft marketing manager Shirley Haw has left the company to go back to university to study for a Masters degree in IT. Kate Mann (020 7421 7162) takes over as the new marketing manager, with Andrea Furnell as her assistant.
Ben Hutchins has been promoted to the new position of Director of IT and Support at Liverpool law firm J S T Mackintosh. The firm's managing partner Keith Teare said the move was: "In recognition of his invaluable role within the practice and to underline the firm's commitment to IT to meet the challenges of the present and future."
Systems developer Alternative Team Ltd will shortly celebrate its 10th year in the legal IT business. The company has also appointed David Rich, previously a personal injury lawyer with Russell Jones & Walker, as a new director. Rich will oversee product development.
Finally, an attack of gremlins in the last issued resulted in the new head of IT at Norton Rose being incorrectly named. It should have read Jeff Roberts.
NEW PENTIUM AND XP - TRY A CUP OF COFFEE INSTEAD
Why? Because according to researchers at Hofstra University in New York, a single cup of coffee can apparently increase typing speeds by five words a minute and even improve spelling accuracy, thus yielding a far better return on investment (or ROI) than technology.
Tel: 01379 687518 - Fax: 01379 687704
Publisher & Editor: Charles Christian
Copyright © 2001 Legal Technology Insider. ISSN 1361-1240. All rights reserved. Legal Technology Insider is published by Legal News Media. No part of this publication may be reproduced without consent. Disclaimer: While every effort is made to ensure the accuracy of all published information, the Publisher cannot guarantee accuracy and does not accept liability for any loss or damage that may arise from any errors or omissions. Please note that web site addresses can change. All trademarks and brand names are acknowledged. Privacy policy: We do not sell or disclose the names, phone numbers, email addresses or any other contact details of our subscribers to anyone. We are registered under the Data Protection Act 1998. |