Markets on the move

As reported by alm, Legaltech group Litera is acquiring industry leader Kira, effective Sept. 1 of this year. The product and brand are to be continued, and at the same time Litera is aiming for market expansion. Why and to what extent can this also be significant for Europe?

Kira is a specialist in AI-based automated document analysis. Main use case is due diligences / data rooms in transactions. Accordingly, Kira's customers are mainly law firms, globally.

Litera, which has grown enormously through numerous acquisitions, describes itself as a leading provider of legal workflow and workspace software. The focus is clearly on speed and effectiveness of legal work towards client service and retention. Litera sees itself as one-stop-shop for any type of legal work. That's why Litera aims to leverage Kira's core expertise in its own software suite. 

The big difference, however, is that Litera also operates in the corporate law market, and by spinning off its own new startup Zuva, Kira is also expected to follow this path in the future.

Consultants on both sides of the Atlantic won't be too happy to hear that.

Show factor

In his column "Lost in innovation," the highly respected Markus Hartung expresses doubts about the innovative power of both law firms and their clients, the legal departments. There is no other way to explain the fact that both staff numbers and per capita turnover at law firms continue to rise, but so does the number of employees in legal departments, Hartung says. Innovation would require a permanent, joint process analysis between law firms and their clients, and there is no sign of this.

So far, so undisputed. But is this relationship really only a professional one? I claim, no. The value of consulting services (both of lawyers and of tax and business consultants) is, after all, also determined to a considerable extent on an emotional level. The particularly aggressive lawyer's letter to the opposing party, theatrical meetings, and even heavy documents - they all serve to convince clients of the extraordinary qualifications of "their" lawyer and of his overwhelming commitment to the cause.

The question remains why clients play along here. The answer is probably differentiated: some because they want to - the behavior described above gives them self-justification that they have made the right choice. And the others? - they are probably to be found in the rapidly growing group of clients willing to change, as described in the current Future Ready study by WoltersKluwer. 

Everything will stay the same until it will change.