actionable intelligence: finding insights & opportunities

Actionable Intelligence: Finding Insights and OpportunitiesPatrick Fuller, Managing Account DirectorCharlie Vanek, Sr. Director, Product Marketing

2

Intelligence, Intuition and Information

You Are Here

Source: Opte.org

3

The Information Universe Is Exploding

30,000 PC memory (Kb) – 1990sK

10,000,000,000 Daily financial market price movementsB

100,000,000,000,000,000,000 Google's cluster of addressable storageE

400,000,000 Total number of Facebook usersM

15,000,000,000,000,000 New data bytes created every dayP

20,000,000M

Skype users online at peak times

The digital universe is ~ 800 Exabytes and growing at over 60% CAGR

Source: EMC, IDC, Gartner

The Information Universe Is Exploding

Exabyte: 2 x 1018

20062010

0%

20%

40%

60%

Professionals Students

Respondents Who Receive > 50 E-mails per Day

100%120%

5

More People Sending Us Information

According to Contact Networks, the average

number of e-mail contacts more than

doubled from 2007 to 2009

Source: Thomson Reuters Professional Information Survey 2010

6

More Information from More Sources

0%

25%

50%

75%

100%

0%

25%

50%

75%

100%Communication Media Employed by Professionals

The number of “mainstream”

communication media employed by professionals

increased from 4 to 7 in just five years

Source: Thomson Reuters Professional Information Survey 2010

0%

25%

50%

Professionals MBA Students

60%

100%

Respondents Who Spent / Spend > 3 Hours per Day Reading Newspapers / Journals / Publications

0%

40%

80%

Professionals MBA Students

85%

125%

Respondents Who Read > 3 Publications per Day

7

More Time Consuming Information

2006

2010

Source: Thomson Reuters Professional Information Survey 2010

Professionals Are Overwhelmed

8

Intuition vs. Analytical Reasoning

9

Intuition-based decision making

Analytical reasoning decision making

• Fast - quick, snap shot judgments

• Fragile - subject to psychological biases

• Subconscious, not auditable, hard to justify, inconsistent

• Allows for accurate judgments backed up by data

• Time consuming, expensive

• Risk of not “seeing the forest for the trees”

IntuitionInformation

Intuition vs. Analytical Reasoning

10

Intuition-based decision making

Analytical reasoning decision making

• Fast - quick, snap shot judgments

• Fragile - subject to psychological biases

• Subconscious, not auditable, hard to justify, inconsistent

• Allows for accurate judgments backed up by data

• Time consuming, expensive

• Risk of not “seeing the forest for the trees”

IntuitionInformation

Intelligent Information decision making

Knowledge to Act

Trusted

Connected

Contextualized

Channeled

Knowledge

to Act

Knowledge to Act

Channeled

Contextualized

Connected

Trusted

What We Need Is Better, Not More Information

11

Knowledge to Act

Trusted

Connected

Contextualized

Channeled

Knowledge

to Act

Knowledge to Act

Channeled

Contextualized

Connected

Trusted

THE TRADING EXPERIMENT

• Individuals were presented with information and had to decide whether to buy or short a stock

• Group 1 received unintelligent information – less trustworthy, unconnected, non-contextual information which was not channeled for human consumption

• Group 2 received intelligent information which abides by the Hierarchy of Information Needs – trustworthy, connected, contextualized, and channeled to the task at hand

• 10% more people in Group 2 made the correct decision

• On average, Group 2 achieved 40% higher net economic return

• Subjects in Group 1 were twice as variable (less consistent) in their decision making

12

Intelligence, Intuition and Information

IntuitionInformation

13

Intelligence, Intuition and Information

What We Need Is Better, Not More Information

Insight• Definition of INSIGHT Merriam Webster First known use – 13th Century

– the power or act of seeing into a situation

– the act or result of apprehending the inner nature of things or of seeing intuitively

• INSIGHT can also refer to other matters in psychology. Problem Solving behavior requiring insight is the subject of Insight Phenomenology.

• An insight is derived from a rule which links cause with effect. The mind is a model of the universe built up from insights, and thoughts from the mind fall into two categories:

– Analysis of past experience with the purpose of gaining insight for use within this model at a later date;

– Simulations of future scenarios using existing insights in the mind model in order to predict outcomes.

MARKET GROWTH

“With my mind on my money, and my money on my mind”

Revenue Growth: AmLaw 200

2010• $81,895,500,000

Growth

•64%

2003• $49,981,000,000

2003 - 2010 Growth: AmLaw 200

22% Total Lawyers

10% Equity Partners

33%

RPL

51%

PPEP

550% $1B+ Firms

AmLaw Top 50: Percentage of Total AmLaw 200 Market

52%

48%

2003 AmLaw 200 Market

AmLaw 1 - 50 AmLaw 51-200

56%44%

2010 AmLaw 200 Market

AmLaw 1-50 AmLaw 51-500

SURVEY RESULTS

“Efficiency is doing things right; Effectiveness is doing the right things.”Peter Drucker

RFP Increase: Past 18 Months

Decreased Unchanged Increased 10%

Increased 25%

Increased 50%

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

14.3%

21.4%

28.6%

25.0%

10.7%

RFP Increase

RFP: Complexity & Time To Complete

Complexity Time0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

70.40% 77.80%

7.40% 3.70%

More Less

Marketing & Business Development Departments

Size Demand0%

10%

20%

30%

40%

50%

60%

70%

25.0%

67.9%

28.6%3.6%

42.9%

0.0%

Increased Decreased Unchanged

Access To Financial Software

MARKET INSIGHT

"Genius is seeing what everyone else sees and thinking what no-one else has thought.“Albert Szent-Gyorgyi (1893 – 1986) Hungarian Chemist, discovered the Citric Acid Cycle and Vitamin C

Insight: Representation Patterns

Insight: Scenario Planning – Mergers (SWA – AT)

Insight: Scenario Planning (TBA In– SWA ATH)Passenger Air CarriersSouthwest / AirTran

Insight: Threat Assessment

Insight: Threat Assessment – Work By Office

Insight: Is The Client Buying on Price?

INSIGHT: COMPETITIVE & FINANCIAL INTELLIGENCE

“Success has a way of seducing smart people into thinking they cannot lose.”Bill Gates

A Few Examples of CI / FI Uses

• Cross Selling– Which clients typically hire firms for multiple areas of

representation?

– What types of work? Growth trend? Our Experience?

– Which markets? Competitive Landscape? Profitable?

• Client Visits– Market Share & other firms retained for similar work?

– Potential for cross selling?

– Hiring new counsel / replacing existing counsel in any areas? Sending out new RFP’s?

– What are the rates and demand by timekeeper in other markets, by practice area – both existing representation & potential growth areas

• Opportunity Assessment / Prioritization

INSIGHT: PRIORITIZATION

“Informed decision-making comes from a long tradition of guessing and then blaming others for inadequate results.”Scott Adams

Scenario: Opportunity Prioritization

SCENARIO: The firm is evaluating a few potential opportunities, which may be the best opportunity?

• Our firm has 450 Attorneys, offices in Chi, SF, LA, Dallas, DC, NYC

• Which opportunities present the best opportunity for profitability?

• Some steps used in the analysis:– Who do we know?

– What’s our experience?

– How profitable might it be?

– What is the landscape of the market demand, rates, realization?

– Who is our competition, both real and perceived?

Candidate 1: BP

Candidate 2: UAR / CO

Candidate 3: Medtronic

• Received RFP for IP Litigation

• New GC, Cameron Findlay, hired in 2009

• Findlay was GC at Aon Corporation in Chicago (2003 - 2009)

• Former Partner at Sidley (1993 – 2001)

• Potential to follow a similar path as former Sara Lee GC Rick Palmore?

Medtronic: Who Do We Know?

Medtronic: Quick Litigation Glance

Aon: Quick Litigation Glance

Medtronic: IP Litigation

Medtronic: IP Lit Representation (SF, Dallas)

Aon: Representation in SF, Dallas State, Fed Courts

Aon: Leading Litigation Representation

Aon: Representation by Firm Size

Medtronic: IP Litigation By Size

90% of Medtronic’s IP Lit is handled by firms of 40 or more; 65% by 100 or more.

Overall, 86% of all litigation is handled by firms of 40 or more, and 40% is handled by firms of 500 or more attorneys.

Additional Considerations

• One of Medtronic’s greatest needs is IP Lit, something Aon didn’t have

• Has retained a Dallas-based litigation boutique for IP Litigation in Texas, and retained an AmLaw 50 firm based in Dallas for IP Transactions.

• Is there a pattern of Aon retaining certain firms in specific markets? Medtronic?

• Which firms did Aon historically retain in certain jurisdictions, and for what practice areas?

• How often did Aon change outside counsel? Is there a pattern? How often does Medtronic appear to change outside counsel?

Medtronic / Aon: Additional Insight

• Medtronic’s primary outside counsel had intermittent patterns of picking up work in additional areas of representation.

• As for Aon, there is a history of firms handling more than one area of work.

• With Mr. Findlay now at Medtronic, is possible that Medtronic will now begin retaining firms for more than one primary area of representation?

• If so, it will dramatically increase the competitive landscape for the IP Litigation, but also offers additional opportunities for client development.

Patent Lit: Collected Rates & Demand

Medtronic: Final Thoughts

How should we construct our team and pitch based in part on what we’ve been able to determine?

Intuition vs. Analytical Reasoning

51

Intuition-based decision making

Analytical reasoning decision making

• Fast - quick, snap shot judgments

• Fragile - subject to psychological biases

• Subconscious, not auditable, hard to justify, inconsistent

• Allows for accurate judgments backed up by data

• Time consuming, expensive

• Risk of not “seeing the forest for the trees”

IntuitionInformation

Intelligent Information decision making

Knowledge to Act

Trusted

Connected

Contextualized

Channeled

Knowledge

to Act

Knowledge to Act

Channeled

Contextualized

Connected

Trusted