Tag Archives for " vendor elimination "

Jan 15

Introduction & Purpose (Excerpt from The Sole Provider Playbook)

By Michael Feit | Sole Provider , White Papers

Vigorous debate continues regarding the viability of a large law firm successfully operating with just Lexis or just Westlaw. However, for the first time since the early 1990’s, retaining just one of these vendors has become the norm. Today, nearly 51% of large law firms have opted to retain only one vendor.

An evaluation of the sole-provider option has become necessary for law firm administrators. Whether or not a firm chooses to go sole-provider, the evaluation in itself provides an opportunity for a firm to review, revise and refine its legal information strategy and potentially save significant money.

In a perfect world, Lexis and Westlaw would publish retail pricing, and firms could pick and choose which products they wanted based on their practice needs and budget. This ideal world does not exist today, as both vendors have discontinued standardized pay-as-you-go retail pricing. Instead all they offer is secret pricing and terms that vary greatly from firm to firm.

The idea of transitioning to sole-provider can be daunting, considering the many individuals and processes that might be impacted. There are a great number of elements to examine, from contracts to content, not to mention the strong reactions of users to fundamental system changes. Lexis and Westlaw have both successfully infiltrated law firms’ cultures and infrastructures over their many years of service.

Yet, the pay-off in taking a deep look at these factors can be exceptional. A midsize U.S. law firm with favorable pricing will spend well over half a million dollars annually to retain both vendors. There was a time not long ago when firms could pass through online legal information costs to clients, making Lexis and Westlaw essentially free. That is no longer the norm. We have entered a new paradigm.

This is what inspired us to write the Sole Provider Playbook. It is intended to empower you and your firm to break free from the vendors’ shackles. In a world where every law firm is searching for efficiencies, the Playbook presents a clear path to savings. Our team of experts has carefully examined each step of the process, and we aim to provide a range of solutions to any obstacle whenever possible. Meant to be an all-encompassing guide, Playbook will provide your firm with tools to quickly determine the viability of the sole-provider option and how to actually execute it.

Order your copy today!

Dec 05

Our Evolving Perspective on Sole-Provider

By Michael Feit | Sole Provider

Many factors have contributed to the sole-provider phenomenon.

The leading factor driving this trend is the deterioration of recovery rates, now at 38%*.  

With half of large law firms successfully retaining only one of these vendors, there is validity that the sole-provider option is viable. Firms that have eliminated a vendor are achieving tremendous new efficiencies without compromising work product.

Dec 02

Why We Changed Our Minds about the Sole-Provider Option

By Michael Feit | Sole Provider , White Papers

Our view going into the writing and development of The Sole Provider Playbook was that the outcome of the business case would vary from firm to firm.

We thought at the time that the ability to overcome hurdles would sometimes be too expensive, overwhelming, and difficult to make this option worthwhile.

We changed our minds, and we’re convinced.

After months of scrubbing the market to identify any and all possible hurdles and concerns, we are confident that the business case for a sole-provider option is clear and valid for virtually all large law firms. While hurdles and concerns are numerous, the workarounds, hassles and costs are inconsequential in comparison to the savings opportunity.

Nov 16

Commoditization of Lexis & Westlaw

By Michael Feit | Sole Provider , White Papers

A product has been commoditized when there is no unique value that distinguishes it from competitors.

More simply put, a commodity is a product that can be substituted by another. Made by different companies, commodity products are similar in quality and results and are viewed as essentially interchangeable.

Even once-innovative products and services ultimately find themselves on the path to commoditization as they mature. Fierce competition motivates products to adopt their rival’s successful features, and therefore become more similar. While there may be preference for one or another, just like that of Coke and Pepsi, unique product benefits become less obvious.

In the world of legal information, Westlaw and Lexis have been and remain the market leaders. Until recently, midsize and large law firms universally believed that Westlaw and Lexis were complementary products. Each vendor had enough demonstrable unique content to support the notion that firms should retain contracts with both, particularly firms with diverse practice groups.

Over time, more firms began eliminating either Westlaw or Lexis, and the sole-provider trend emerged. Today, the percentage of large law firms with just one of these two providers is essentially 50%. The proverbial genie is out of the bottle. The market is demonstrating with its actions that Westlaw and Lexis are rapidly becoming interchangeable. Eliminating a vendor creates a great opportunity for firms to free up a large amount of resources and to enhance their legal information infrastructure with new products.

To quantify the extent and motivation behind the sole-provider trend, Feit Consulting conducted a comprehensive analysis of the entire large law firm market. This report concludes that Westlaw and Lexis are no longer complementary products. Rather, the retention of both of these vendors is an unnecessary luxury that most firms should forego.

To learn more about about this white paper or the Market Trends Series, click here.
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