Last Tuesday, I attended the TechPoint Innovation Summit. In addition to meeting some great entrepreneurs and technology business people, I was fortunate enough to hear Clayton Christensen speak about his disruptive innovation economic theory. I have to admit that this was my first exposure to this particular theory, but it highly intrigued me and made me think about its applicability to the practice of law in general and to business law firms specifically.
In a nutshell, Christensen's theory describes the impact of new technologies on a given market. Essentially, in any given market, there is first a push for centralization. This centralization actually results in a higher cost to the consumer as the centralized firms compete with each other for top billing. Following that centralization, new technologies emerge that allow for businesses to do things cheaper and simpler. These new technologies lead to innovations in the market that eventually force change or failure of the centralized companies. I know that I've put together the 100,000 foot view of the theory, but you get the gist.
Applying this model to business law firms, you see the implementation of centralized firms, in the advent of the big law firm. These big firms then compete with each other and ultimately drive up the cost to the end-user. Following Christensen's theory, now is the time for disruptive innovators in the legal field. This reality is evident in the hard impact that big firm's suffered in the recent economic times.
In my humble opinion, this theory is why firms like Alerding Castor Hewitt are competing well in these markets and will not only continue to be effective, but will thrive. Through the willingness to embrace technology and focus on cost-effective, simpler representation, firms like ACH can focus on the entrepreneurs that need this representation, but aren't willing to endure the big firm costs.
Why is this important? Because as the world continues to change and technology law and innovation comes to the forefront, the innovators will be leading the pack and will want representation that understands both their needs and their spirits. While this new business reality continues to develop, those of us here at ACH will continue being disruptive innovators (which incidentally would also be a great name for a band).
In a nutshell, Christensen's theory describes the impact of new technologies on a given market. Essentially, in any given market, there is first a push for centralization. This centralization actually results in a higher cost to the consumer as the centralized firms compete with each other for top billing. Following that centralization, new technologies emerge that allow for businesses to do things cheaper and simpler. These new technologies lead to innovations in the market that eventually force change or failure of the centralized companies. I know that I've put together the 100,000 foot view of the theory, but you get the gist.
Applying this model to business law firms, you see the implementation of centralized firms, in the advent of the big law firm. These big firms then compete with each other and ultimately drive up the cost to the end-user. Following Christensen's theory, now is the time for disruptive innovators in the legal field. This reality is evident in the hard impact that big firm's suffered in the recent economic times.
In my humble opinion, this theory is why firms like Alerding Castor Hewitt are competing well in these markets and will not only continue to be effective, but will thrive. Through the willingness to embrace technology and focus on cost-effective, simpler representation, firms like ACH can focus on the entrepreneurs that need this representation, but aren't willing to endure the big firm costs.
Why is this important? Because as the world continues to change and technology law and innovation comes to the forefront, the innovators will be leading the pack and will want representation that understands both their needs and their spirits. While this new business reality continues to develop, those of us here at ACH will continue being disruptive innovators (which incidentally would also be a great name for a band).
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