Knowledge Management: Cornerstone of the Digital World

Knowledge

Management:

Cornerstone in the

Digital World

May 28, 2013

Knowledge Management: Why It Matters

Wolters Kluwer: Our Strategy and Solutions

New Technologies: Impact on Knowledge Management

Conclusion

2

Agenda:




Conclusion

3

Agenda:

Knowledge Management:

4

“Knowledge Management comprises a range of strategies and

practices used in an organization to identify, create,

represent, distribute, and enable adoption of insights and

experiences. Such insights and experiences comprise

knowledge, either embodied in individuals or embedded in

organizations as processes and practices.” Wikipedia

5

Market Trends: Undergoing Unprecedented Change

6

Market Trends: Structural Changes

Advances in

Technology

•Enabling productivity improvements

•Increased opportunities to add value through

collaboration

•Big Data applications

Commoditization

of Legal Services

•Basic services commoditized

•Law firms must prove unique value added

•Shift underway from legal services to strategic advice

New Business

Models & Greater

Transparency

• Alternative fee structures growing

•Data mining creating transparency & insights for clients

•Growth of outsourcing/offshoring

Macro Legal

Trends Implications

Pressure for

Efficiency

•Reaction to shifting business models and client demands

for greater value

Market Trends: Structural Changes

Q. Which of the following legal market trends do you think are temporary

and which will be permanent?

YES – PERMANENT TREND

More price competition

More non-hourly billing

More contract attorneys

Fewer equity partners

Smaller first-year classes

Lower PPP/Slowdown in PPP

Outsourcing legal work

2009

Response

42.4%

27.9%

28.3%

22.8%

11.4%

13.2%

11.5%

2013

Response

95.6%

79.5%

74.6%

72.1%

62.2%

55.6%

46.4%

Sources: Law Firms in Transition 2013, Altman Weil; Law

Firms in Transition 2011, Altman Weil Survey

2011

Response

89.6%

74.9%

59.6%

68.4%

39.6%

15.6%

41.1%

PPP = Profits per Partner

7

8

Role of Knowledge Management

Transforms value added insights into

products/platforms to drive

productivity and business

development

Provides tools to manage the business

of law

Pricing of services

Performance metrics

Outsourcing/Offshoring

Offers “Big Data” platform Client profitability

Matter management

Share expertise and best practices

Increased cost/value proposition for

clients

Drives productivity metrics




Conclusion

9

Legal Market is a core customer base for Wolters Kluwer

10

41%

27%

Health 21%

Financial & Compliance

Service 11%

Tax &

Accounting

27%

Legal & Regulatory

FY2012 Revenues

€1,491 million

(41%)

Wolters Kluwer FY2012 Revenues €3,603 million

11

Workflow Solutions:

Rbsource, Smartdox, Kluwer Essentials

Legal Billing/Matter Management:

Kleos

TyMetrix

Legal Spend Management and Analytics:

TyMetrix 360º

Wolters Kluwer Strategy: Product Focus

Mobile Drives decisions

and outcomes

Tailored to the

customer

Workflow Solutions

12

Content is combined with

decision-support software

Integrate multiple functions or

applications

Delivers work product

creation/filing of documents

Often linked to clients,

regulatory bodies

• Productivity

• Compliance

Legal Billing/Matter Management

13

Practice-management software tools that give lawyers access to all their

clients’ files, anywhere, at any time, creating a flexible and secure virtual

office in the cloud

Integrate trusted expert content from different legal databases in different

countries

Link corporations and law firms around matter management and billing

Kleos

14

We have the most comprehensive data on legal spending globally and

uniquely understand the wave of market efficiency engulfing the legal

services market

Corporate Legal Services Group: Legal Spend Management Harnessing the Power of Legal Big Data

$43.5 B

Legal

Invoices

$43.5B

Legal

Invoices

285K+

Lawyers &

Paralegals

120M+ Tasks

& Activities

Invoices From:

•T360Customer

•Non-Customer

425+ M Billed

Hours

238 MM

Business

Records

25 TB

Legal

Documents

55 MM

Lien

Filings

60 MM

Global

Trademarks

$43.5B+

Legal

Invoices

TyMetrix LegalVIEW

Open Database Products &

Services

“I don’t know where to begin. The data is incredible…” – Leonard (‘Lenny’) Gail, Massey & Gail

285K+ Lawyers

& Paralegals

120M+ Tasks

& Activities

425M+ Billed

Hours

T360º

Invoice Data

Through TyMetrix Legal Analytics Wolters Kluwer is

Leveraging Data to Create Value for Customers

15

TyMetrix Legal Analytics Illustrative Example

Case Summary

Case Type: Litigation Category: Product Liability Claim Type: Bodily Injury

Industry: Manufacturing Jurisdiction: Tucson, AZ Allegation: $500K damages

Litigation Severity Index 72

Low Average High

Range of Total Case Cost of Similar Cases

(125 cases)

$135K $275K $525K

Range of Settlements

(250 cases)

$125K

$250K

$450K

Range of Legal Fees

(125 cases)

$10K

$25k

$75k

Average Cost Profile

Legal Fees

% of Fees

Hours Billed

% of Hours

Partner $9K 36% 15 19%

Associate $11K 44% 28 35%

Paralegal $5K 20% 36 46%

Total $25K 79

16

Tailored Products: General Counsel Navigator

17

Knowledge Management Tools: Considerations for Selection

18

ROI

Practice Focus

Partners

Knowledge

Management

Facilitates decision-making

capabilities

Builds learning organizations by

making learning routine

Stimulates cultural change and

innovation

ROI Balance of Returns vs. Resource Commitments

19

Three key reasons why actively managing knowledge is important

Capital Allocation

Change Management

Technology

Advancements

Standardization and automation of key processes

Optimization of user experiences

Creation of a user ecosystem

Practice Focus: Managing KM Successfully

20

Execution: Leveraging Partners/Outsourcing:

21

Developments around technology and business processes accelerating

Most firms/corporations using a range of KM solutions

Partnering reduces risk of “home grown” solutions




Conclusion

22

Semantic Searching: Increase in KM Efficiency

23

Drivers:

Goes beyond the limitations of traditional keyword search technologies

Takes into account meaning and context

Flexible syntax

New level of discovery and collaboration

Implications:

Productivity improvements

Global Platforms

Open Government: Continues Expansion

24

Drivers:

Open Government driven by technology and shift in role of government

Quality improving

Implications:

Allows for greater integration between information and compliance

Analytics for better decision making

Cloud Computing & Mobility

25

Drivers:

Products assembled quickly by integrating cloud services

Creating of new business models at mobile point of use

Implications:

Engage with clients in a personalized way

Cost to serve can be significantly lower (Cloud native, zero footprint)

Social

26

Drivers:

Valuable information contained within social network conversations

Powerful brand development and marketing

Lawyers as creators and consumers of knowledge via social media

Implications:

Social media impacts knowledge management systems

Collaboration/integration of internal systems and social




Conclusion

27

Conclusion

28

1. Knowledge Management tools can help

address the structural changes to the

legal market

2. Knowledge Management execution

requires a focused approach to reduce

risks of a low ROI

3. Technology advances are rapid in the

Knowledge Management space

4. Wolters Kluwer is committed to

developing Knowledge Management tools

that drive decision making and

productivity