What is digital transformation?
In a nutshell it’s the process of implementing digital technologies to create, modify, and optimise business processes, culture, and customer experiences. It is a fundamental shift in how businesses operate, providing innovative ways to improve performance and create value. By using this approach law firms take full advantage of legal technology to streamline operations, automate processes, and provide a better customer experience.
Why is digital transformation relevant for Small-sized law firms?
Small-sized law firms may have concerns about the implementation of a more digital approach to their legal work. However, the reality is that it’s becoming a necessity for the survival of small businesses. Small-sized law firms must adapt to changing technologies, and customer demands or risk being left behind in the digital race. Digital transformation can provide small-sized law firms the tools to operate more efficiently, reduce costs, and create a better customer experience. Another blog covers this in more detail: Why digital transformation is essential for law firms of all sizes.
According to reports, 61% of UK legal professionals believe that the legal sector needs to make the most of digital transformation. On the flip side, 67% of UK legal firms say that they already have a strategy in place or plan to implement one in the next 12 months.
The potential benefits of digital transformation are attractive to UK law firms, but there are obstacles to overcome in the short term. For instance, 73% of UK law firms believe that skills gaps are holding back progress with this approach. Therefore, investing in the right skills and talent is essential to successful transformation.
The pandemic has also accelerated the pace of adoption in the UK legal sector. According to recent surveys, 66% of UK law firms have invested more in technology since the pandemic started, and 68% have developed or are developing a remote working policy.
Implementing the Legal Services Act 2007 has enabled new, lower-cost law firms to enter the market, putting pressure on established firms to increase their efficiency and reduce costs. In response, many law firms have embarked on this digital journey to remain competitive and stay ahead of the game.
In reality this is a firm-wide project that will involve everyone and provide the firm a solid foundation upon which to base future success. In a recent webinar, we discussed Digital Transformation and Your people. But the question, for now, is how will it benefit your firm.
Benefits of digital transformation for small-sized law firms
1. Improved Efficiency and Reduced Costs
Digital transformation can streamline operations and automate processes resulting in improved efficiency and reduced costs. Digitalisation can provide a centralised database for case studies, precedents, and legal opinions. It can also provide a more accurate and efficient billing process for clients.
2. Better Customer Experience
Small-sized law firms an enhanced customer experience by facilitating rapid communication with clients, customer relationship management (CRM), and more responsive service delivery. Digital tools such as online portals, chatbots, and mobile applications can give clients better control over their legal cases and provide real-time updates.
3. Improved Business Intelligence and Data Analytics
By implementing this new approach, it can provide legal firms with valuable business intelligence and data analytics. Digital tools can provide small-sized UK law firms with real-time insights and data into their operations, financial performance, and customer satisfaction. Law firms can make data-driven decisions that improve performance and customer experience by analysing these insights.
4. Access to New Revenue Streams
Digital transformation can provide small-sized law firms with access to new revenue streams. By leveraging technology, law firms can provide value-added services such as cybersecurity consulting, contract management, and regulatory compliance services. These services can generate additional revenue streams for small firms and provide a competitive edge.
Conclusion
In the digital age, digital transformation is necessary for small law firms. As technology implementation becomes mainstream, the legal industry is already undergoing a digital revolution. Small-sized law firms can benefit greatly from this approach as it can streamline processes, reduce costs, improve business insights, provide a better customer experience, and offer new revenue streams. By embracing this new approach small-sized law firms can remain relevant and competitive in an ever-changing legal landscape.
References:
https://www.legalfutures.co.uk/latest-news/covid-accelerates-law-firms-digitisation