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In the later part of January 2023, the International Monetary Fund released its report on the world economic projected growth for the year 2023. In the report, the global growth was projected to fall to a 2.9% in 2023, which was 3.4% in 2022. However, this fall would again rise in 2024 to 3.1%. The report further explained the reasons which would contribute to this inflation, including the ongoing Russia’s invasion of Ukraine, the spread of COVID-19 in many parts of the world. Even though the global inflation will be expected to fall from 8.8% in 2022 to 6.6% in 2023, this level will remain higher than the pre-covid levels. Several marketers and economic analysts have expressed their views on the upcoming recession of 2023, which is bound to reduce workforce in many sectors. However, there will be some sectors too which may take advantage from this recession.
It is important to note that whether the recession hits a particular sector or not, we cannot stop our organization’s functions, or the plans which we have for the firm’s future development. In the legal sphere too, firms need to consider their business development strategies irrespective of how the future outlook of the sector is. Through our article today, we will be reviewing a few of these business intelligence strategies which law firms should focus on abiding to keep their firms afloat even during the recession.
To start, let us just understand what business intelligence actually means. The term business intelligence refers to the procedural and technical infrastructure that collects, stores and analyses the data produced by a company’s activities. In other words, it is the process of analysing data in an organisation to make informed business decisions. A business intelligence analyst generally takes the data which a company holds and later processes or reviews it to achieve valuable insights. The insights gained are then used to inform crucial business decisions in order to shape the company’s operations and its future. BI can be used to learn about how business was performed in the past and what outcomes did it lead to, and why.
For any business intelligence strategy to work, the data generally goes through the following steps, Data collection- here, businesses need to understand where they can collect the data from, it could be visitors or customers. Here, they also need to analyse how the data can be organised for further processes.
Data storage-businesses such as those of law firms, can find relevant data in numerous amounts, that too having a large scope. This huge amount of data needs to be stored in a place where it can be kept secure from undergoing any sort of cyberattack, while also being easily accessible. Moreover, the place where the company stores its data need to be up-to-date so that a company can act on changes in data quickly.
Data analysis- this is where the core of business intelligence lies. Here the data collected undergoes a descriptive analysis.
Data reporting- while we collect all the information from the data, it cannot be considered of any use if we do not reach any proper decision or conclusion. Our business intelligence should convey data and insights in ways that people with less context can still quickly understand and use them to make decisions.
For any firm which visualises to expand, it is firstly important to know where they stand. Business intelligence allows this, by providing a unique perspective on how firms can position themselves better in the market. With usage of tools such as data mining, business analytics and competitive research, firms can learn the market niches, the ongoing hiring trends and then use them to make more informed decisions. Such information can be applied by them in their marketing strategy plans and then later get executed.
A data is a gold mine for any business intelligence analyst. But unless we have proper strategy on how we want to mould our firm, this data is just a raw material for us. Hence, harnessing the power of this data is important. A good data strategy reflects what our business wants to achieve.
Next, before laying any strategy, we need to understand what potential outcome we can expect from employing it. Focus on the law firm’s current play, are we looking to expand or decrease the firm size due to industry downturn? Or are we planning to expand in another region or nation? Business intelligence allows in gaining information about clients and key contacts at various companies. It can also help in learning about various law firms and the area they specialise in, especially segregated according to industry or geographic region.
Moving on, when we plan to expand our law firm from one market to another, it is important to perform a thorough analysis of other law firms in that particular market or region. Business intelligence can provide an in-depth analysis of the competitors, including law firm alums, attorney tenure as well as the retention rates. Data used by analysts can also be used to find information about the ongoing hiring trends in the legal market. We can use it to find the increase or decrease from associate to partners in law firms, residing in various niches or region. This data can then indicate a possible change in law firm strategy, and hence, accordingly, law firms can expand their business in these markets.
Using competitive and business intelligence, law firms can inform their strategy and stay ahead of their competition. Business development solutions can help law firms stay ahead of the curve through accurate and high-quality data. Using the right business intelligence tool can help track the industry landscape and project which practice areas and the caliber of attorneys to hire.
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