The document discusses knowledge management in the digital world. It begins by outlining key trends in the legal market like commoditization of services and new business models that are creating pressure for greater efficiency. It then discusses Wolters Kluwer's strategy of using knowledge management tools to transform insights into products and platforms that drive productivity and business development. Finally, it explores how new technologies like semantic searching, open government, cloud computing and mobility, and social media are impacting knowledge management.

1. Knowledge
Management:
Cornerstone in the
Digital World
May 28, 2013

2. Knowledge Management: Why It Matters
Wolters Kluwer: Our Strategy and Solutions
New Technologies: Impact on Knowledge Management
Conclusion
2
Agenda:

3. Knowledge Management: Why It Matters
Wolters Kluwer: Our Strategy and Solutions
New Technologies: Impact on Knowledge Management
Conclusion
3
Agenda:

4. 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. 5
Market Trends: Undergoing Unprecedented Change

6. 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

7. 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. 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

9. Knowledge Management: Why It Matters
Wolters Kluwer: Our Strategy and Solutions
New Technologies: Impact on Knowledge Management
Conclusion
9

10. 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. 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

12. 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

13. 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. 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

15. $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

16. 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

17. Tailored Products: General Counsel Navigator
17

18. Knowledge Management Tools: Considerations for Selection
18
ROI
Practice
Focus
Partners
Knowledge
Management

19.  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

20.  Standardization and automation of key processes
 Optimization of user experiences
 Creation of a user ecosystem
Practice Focus: Managing KM Successfully
20

21. 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

22. Knowledge Management: Why It Matters
Wolters Kluwer: Our Strategy and Solutions
New Technologies: Impact on Knowledge Management
Conclusion
22

23. 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

24. 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

25. 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)

26. 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

27. Knowledge Management: Why It Matters
Wolters Kluwer: Our Strategy and Solutions
New Technologies: Impact on Knowledge Management
Conclusion
27

28. 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