Peer to Peer Magazine

P E E R T O P E E R : I L T A ' S Q U A R T E R L Y M A G A Z I N E | S U M M E R 2 0 1 9 47 that offers innovation execution services can be a good solution. Getting started Innovation as a service often begins with developing the firm's strate. This encompasses that initial, in-depth analysis of the firm's current operations, including its digital systems and service delivery methods. Use cases are identified for opportunities where data analytics, AI, robotic process automation and other modern technologies can be employed with the firm's existing data to improve operations or generate new revenue. Creating an innovation strate and a road map to accomplish identified goals is an important starting point. It requires expertise to recognize where the best opportunities exist. While institutional knowledge within the firm is a critical part of this, external the investments necessary to execute a strate, firms become overwhelmed and the program stalls. A solution for firms in this situation is to engage resources with the expertise to not only identify opportunities for innovation but effectively implement them. This is the basis of innovation as a service. Insourcing vs. outsourcing Some prominent large firms are already creating their own innovation departments that serve to establish strategies and implement various solutions throughout the firm. There are advantages to this approach, particularly in having a dedicated team with institutional knowledge to advance the initiative. But committing to an in-house innovation focus is a complex endeavor. To start, questions arise about reporting structures and whether innovation is a function of IT or a wholly separate area with different accountability but that must collaborate with IT in addition to various practice areas. Once even basic organizational questions are answered, things can get complicated quickly. Building a qualified team must start with an in- depth gap analysis to identify the firm's needs, knowing what roles to include and being able to pay them appropriate market rates. Unfortunately, the required talent to conduct this analysis and fill these roles remains in short supply, as few individuals currently possess the expertise to effectively lead or significantly contribute to an innovation team in the legal market. For most firms – both midsize and even many larger ones that don't have the appetite or budget for an internal innovation department – there are a few ways to achieve the same goals. The key is to be practical and intentional for whatever path is chosen. Firms interested in developing an innovation program are now considering alternatives to a fully insourced model to handle both the creation of their strate and follow-through on execution. Some are choosing to outsource the initiative entirely, and others are opting for a hybrid approach. Outsourcing all or some aspects of innovation is an appealing option for many firms. Adding a permanent C-level leader can be expensive, so working with an outside expert to help identify needs and develop a strate can be a great alternative. Beyond that, there remains the challenge of finding all the talent required to fill critical roles in development and implementation of new tools and solutions, particularly individuals with legal industry experience. Partnering with a firm viewpoints can be valuable as outsiders are able to look at situations or data collections with greater objectivity and may be able to more quickly identify areas for improvement. Whether the organization opts to leverage internal or external executives to lead its innovation efforts, seeing the big picture and mapping out a plan are only the first steps. What separates successful innovation programs is the ability to execute those plans. Executing an innovation program Beyond formulating strategies and creating innovation road maps, execution of plans requires a process and framework. Success demands a structured, practical approach to achieve implementation of new solutions. Whether the organization opts to leverage internal or external executives to lead its innovation efforts, seeing the big picture and mapping out a plan are only the first steps. What separates successful innovation programs is the ability to execute those plans.

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