Thursday, February 19, 2009

"Disruptive innovation" and lawyers don't mix

Jackie Hutter invokes buggy whips numerous times in a post about legal billing, including in text wherein a misplaced modifier relates Jackie to buggy whip manufacturers:

Like buggy whip manufacturers, I believe that many lawyers have become so entrenched in the law firm business that they have effectively forgotten that they are first legal services providers. As people charged with ensuring the continued vitality of the business, law firm lawyers often become primarily fee generators where the fees are obtained from billing clients by the hour for legal services. Care and feeding of the law firm and its partners by ensuring constant creation of billable hours therefore often takes precedence over the legal needs of clients. Also analogous to buggy whip manufactures, IP lawyers working in law firms have the ability to change to prevent obsolescence. Indeed, these lawyers possess the requisite skills to continue practicing their craft outside of the existing paradigm of the law firm. Still further akin to buggy whip manufacturers, lawyers also have the existing relationships with customers i.e., clients, which gives them a valuable head start over newcomers who wish to enter the IP legal service arena using innovative, but unfamiliar, client service models.

Of the text --Also analogous to buggy whip manufactures, IP lawyers working in law firms have the ability to change to prevent obsolescence --, one cannot help but remember the story of RCA, who placed the newly-formed transistor group under the direction of the vacuum tube division.

Jackie mentioned "disruptive innovation"-->

Some might contend that complaints about the billable hour model have abounded for many years, but no major changes have occurred to date, thus indicating that most clients may be all bluster and no action. While it is certainly true that clients exerted no real pressure on lawyers for change in the past, circumstances are markedly different today than before. Disruptive innovation is rocketing through society, and many formerly solid business models, such as newspapers and recorded music, are now teetering on the cusp of demise as a result.

Lawyers are about the furthest people on the planet from the concept of disruptive innovation.

See also:

Giants win SuperBowl; message for patent reform?

Of the background of "disruptive innovation", Wikipedia notes:

The term disruptive technology was coined by Clayton M. Christensen and introduced in his 1995 article Disruptive Technologies: Catching the Wave[2], which he coauthored with Joseph Bower. The article is aimed at managing executives who make the funding/purchasing decisions in companies rather than the research community. He describes the term further in his 1997 book The Innovator's Dilemma[3]. In his sequel, The Innovator's Solution[4], Christensen replaced disruptive technology with the term disruptive innovation because he recognized that few technologies are intrinsically disruptive or sustaining in character. It is the strategy or business model that the technology enables that creates the disruptive impact. The concept of disruptive technology continues a long tradition of the identification of radical technical change in the study of innovation by economists, and the development of tools for its management at a firm or policy level.

As I noted in an earlier paper, Christensen doesn't ever mention patents.

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