state bar 2012a

Technology at for the Barv1.4

Presentation toState Bar of California, Real Estate Section

May 5, 2012

Marc Danziger, Charmed Particles, Inc.

What are we trying to accomplish?• Quick talk about tech (& social media) in 2012• Impact on legal practice– Bizdev, biz strategy– Risks– Some futures

• Impact on real estate industry– RE values– Practitioners– Some futures

Tech in 2012(in all of 5 slides)

• Lots of small devices (smartphones, tablets, laptops) that are always connected.

• Apps and software that leverage connections between people (Facebook, LinkedIn, Yelp, etc.).

• Data that is created by mapping those connections and actions is hugely valuable.

#1 (with a bullet) - Connecting matters

• Storage & computing power > cloud.

• Content > shared (often user made).

• Everything > wherever.

• People > directly connected to others.

• Data created by all this activity > $$

• Organizations < much less important.• Connecting matters

We live in a world of networked information, where we produce as much information as we consume.

We call that ‘Social Media’

What’s social media, anyway?Traditional media:– You pay, I talk, you listen

Interactive media:– You pay, I talk, and you and I talk about what I just

talked aboutSocial media:– Everyone start talking to each other while I get a

cup of tea, and then I’ll come back and join the conversation (question: what do I get paid for?)

Where do I find it?

www.wordpress.com, www.facebook.com, plus.google.com, www.youtube.com, www.pintrest.com, www.flickr.com, www.linkedin.com, www.yelp.com, www.socialmention.com, www.tumblr.com, www.basecamphq.com, www.twitter.com, maps.google.com and www.bing.com/maps/ …

…and many more places. (but these are a good start!)

Immediate implications

• Network effects

• Flattened organizations

• Hyper-empowered individuals

• Reputation =! job title

Professional Implications

Is Law Alone?Other struggling industries:• Publishing• Media (film, television, music)• Consulting• RE Brokerage

What do they all have in common?All information-based businesses.

How are [large] firms coping?

- Citi/ThompsonReuters 2012 report

…Responding to client demands for greater efficiency and cost effectiveness in the delivery of legal services … firms have launched efforts to actually redesign work processes by reexamining the mix of professionals — both lawyer and non-lawyer, in-house and outsourced — needed for certain kinds of work and the technology and knowledge tools required to support them. We believe that these kinds of efforts are likely to expand in the future.

Connected-er.

EnterpriseLegal

point 0• Collaboration• Knowledge Management• Project and Engagement

Management• Sharing employee-generated

knowledge

Law, Meet Enterprise 2.0

Based on:• Collaboration• Knowledge Management• Project and Engagement Management• Sharing employee-generated knowledge

Look familiar? It’s Social Business.

Does Size Matter?

Big Firms / Small Firms…different priorities• Big Firms – costs, costs, costs, smaller pasture,

talent retention, becoming Legal Enterprise 2.0.

• Small Firms – marketing, marketing , marketing, collaboration, bottom rung getting lower (Legal Process Outsourcing, anyone?), the rise of the informed customer.

Bizdev: Reputation = $

Today, restaurants:

HBS paper (released 9/16/11) by Michael Luca shows a 5 – 9% increase in revenue for Seattle restaurants who gained one star in Yelp ratings.

(Source: HBS paper at http://prtcl.es/Gzzmpf )

Tomorrow, lawyers … and shopping malls?

Tomorrow, Today, Lawyers

What should practitioners do?

Risks“Privacy is dead. (Get over it)”– Bill Joy, ex-CEO Sun Computers

Lawyers have a fiduciary responsibility to protect client information. Your world is based on confidentiality.

Um…

Some Futures• Big & small firms competing (except for the very

top of the food chain);• Bottom of the fee ladder very low (outsourcing

& solo practitioners, LegalZoom etc.);• Efficiency / cost paramount management issues;• Technology & tools making Law 2.0 a reality;• Collision between professional standards and

technical practices.

Some ImplicationsTech & Real Estate Markets

Location, location, location? Maybe not.

• Location matters A LOT less when I’ve got Yelp and Google Maps.

• Location matters A LOT less when I have my meetings on Skype and G+ hangouts.

Data matters – everywhere.

• Certain asset classes suffer.– Internet shopping (malls),–Workforce virtualization (mid-tier office)– Efficiencies driven by collaborative

technologies (mid-tier office, warehouse)

• Certain asset classes gain.– B- & C office & retail (tenants market

online)– Popup-friendly managers– A+ properties (institutional comfort)

My tech-driven RE investment strategy• Don’t pay for non A+ locations.• Get good at popups.• Learn to mine data.– Customer data in malls– Tenant data in office

• Communicate with your community – tenants, lenders, investors, vendors.

• Build and guard your reputation.

Download this presentation