In a recent McKinsey Digital post, McKinsey found "that established companies win by addressing digital strategy’s dual imperatives: building new digital businesses while digitizing legacy operations."
To sustain growth when faced with digital disruptors it is imperative that incumbent companies overcome two challenges; innovating with new digital offerings whilst digitizing core legacy business.
It builds on a prior McKinsey digital post that compares performance of legacy businesses that do digitize against businesses that don't, or only marginally, innovate. Not surprisingly the businesses that innovate perform significantly better and enjoy double digit post.
Innovation and best delivery
Reading the post gave me a very familiar feeling; it is as if Clifford Chance is describing its innovation and best delivery strategy. There are three strands to this strategy; Best Delivery, Clifford Chance Applied Solutions, and Create.
- In Best Delivery (which the firm has operated for years), Clifford Chance aims to increase value for clients and optimize ways of working for our people to improve our competitive position. This is achieved through always trying to find the right resource for the right work which can be a highly experienced partner, the use of technology, legal project management, using low cost service centres or collaborating with other legal service providers (dare I say "digitizing legacy operations"?).
- Clifford Chance Applied Solutions' goal is to build and market a suite of technology products that solve the problems of clients. It is a very different business model from the traditional law firm model; instead of following the traditional services model of a law firm "make once and sell once", Clifford Chance Applied Solutions aims to build once and sell many times, legal services as a product.
- Create, the third strand of the Innovation and Best Delivery program, is about exploring new business models, identifying new ways of working and new technologies and about being very connected to the innovators in the legal industry.
It is great to see that Clifford Chance's strategy is very much aligned with McKinsey's thoughts.
Established companies win by addressing digital strategy’s dual imperatives