Year: 2019

How Technology Helps Legal Departments in Financial Services Manage Their Unique Challenges

Legal Operations teams generally design, plan, and implement their legal team’s strategic initiatives to support the business. They must balance managing risk and regulatory changes with operational efficiencies while keeping costs in check. Access to data in a structured form allows the team to provide valuable and powerful advice, guidance, and support to their legal function. Given the unique position of an in-house legal function, they often hold a wide range of information about the business they support, which gives them an unparalleled view of their organization. While most in-house legal teams will broadly use the data for similar reasons, the rise in legal and regulatory changes impacting financial institutions has increased their demand for meaningful data. Some of the leading legal and regulatory changes include the Senior Manager and Certification Regime (SMCR), “ring-fencing,” Dodd-Frank, European Markets Infrastructure Regulation (EMIR), and General Data Protection Regulation (GDPR), to name but a few.

The introduction in 2018 of the Senior Manager and Certification Regime (SMCR) by the Financial Conduct Authority has put the additional onus on specific key individuals and material risk-takers within UK financial institutions to evidence their decisions. Maintaining structured data that can be analyzed and measured will help provide evidence for some critical decisions. These decisions might include law firm panel appointments, outsourcing / insourcing business activities, and management of legal risks.

Those Financial institutions with clear visibility of the derivatives and related instruments they have entered will have benefited in understanding any re-papering needed for “ring-fencing.” The data may also enable them to meet the new collateral obligations under EMIR. Understanding the legal spend to support these legal and regulatory changes will allow the in-house function to better prepare and budget for future changes.

Under recent Banking reforms, financial institutions must maintain “living wills” to try and ensure they fail safely. This activity requires the maintenance of critical contracts/documentation in a central location. As many of these will have passed through the legal function at some stage, a well-structured database with crucial contract details will help remove obsolete documents and add new ones.

With the increases in cyber security, the legal function will, over time, be able to identify better which external law firms have handled data for the organization and ensure robust measures to safeguard that the law firms are applying data.

The data can support trend analysis which will help the legal function understand and support significant changes in demands for products and services and any resultant risks. A substantial change in demand may be seasonal (such as the end of a tax year or when certain subsidies get paid), market or social-media-driven (such as mis-selling issues), or economic/geopolitical (such as changes in interest rates, exchange rates, commodity prices as well political uncertainty). Any of these can alter the legal risk profile of the business and change the demand for legal resources. Being aware of pressure points will help the legal function adapt.

Legal departments in financial services face unique regulatory challenges. Technology provides a central source of truth to manage these requirements. The resulting data output ensures legal operations can support the legal function quickly and accurately while predicting risk and change.

Learn more about BusyLamp from Onit, our end-to-end legal spend management solution built for European corporate legal departments. 

The Long Road to Business Process Automation and Apptitude Part III: Incubators to Software

“I couldn’t tell you in any detail how my computer works. I use it with a layer of automation.”
– Conrad Wolfram

In part II of our series on, “The Long Road to Business Process Automation and Apptitude,” we pushed the history of process automation back to the eighth century B.C. We ended our discussion by describing how Jacquard’s famous automated loom and how automation, stored programming and data entry owe a debt of gratitude to the loom’s ability to change weave patterns by changing punched cards. Pushing forward in time we find more solid evidence of real automation which laid the groundwork for modern business process automation.

Amazingly, devices for automatically controlling the temperature in egg incubators were being used throughout the 17th and 18th centuries. Other thermostatic devices followed up through the 19th century, each with varying improvements over previous devices. The whole idea of automating processes was now in full swing, to the extent that contemporary technology allowed.

The steam engine not only helped propel the assembly line, but also takes a place in automation history. But most people don’t realize that there was one special part that set later steam engines apart from earlier models; the mechanical governor. In the 18th century an ingenious mechanical governor was invented to control the speed of the engine. Perhaps the most important automatic control device of the period, the idea for the steam engine governor came from a most unlikely source. A century before, the centrifugal governor was being used in grist mills to control the gap between the upper and lower millstones. When grinding grains, it was necessary to carefully monitor the gap in order to achieve consistency in the final ground product.

Automated telephone switchboards, automatic bottle-making machines and myriad other automated applications through the computer age have demonstrated the importance of automation in our lives. We’re now in the 21st century and computers conveniently run process automation of every form imaginable. We have software at our fingertips to automate every process that organizations throw at us, and then some. Process automation is optimizing organizational operations in several key areas. Workflow and automation of processes deserve a spot at the top of the list. Automating routine tasks can give businesses that extra “edge” they need by driving efficiencies and controlling costs – a tried and true recipe for success.

Onit CEO Eric Elfman to Judge the 2019 Rice University Business Plan Competition

Onit CEO and co-founder Eric M. Elfman will serve as a judge for the 2019 Rice University Business Plan Competition. Scheduled for April 4-6, the program is known as the world’s richest and largest graduate-level business plan competition.

This will be the 18th year that Elfman has judged the competition, which is hosted by the Rice Alliance for Technology and Entrepreneurship and the Jesse H. Jones Graduate School of Business. The Rice Business Plan Competition is the world’s richest and largest graduate-level student startup competition. This is the 19th year for the competition. In that time, it has grown from nine teams competing for $10,000 in prize money in 2001, to 42 teams from around the world competing for more than $1.5 million in cash and prizes.

For the 2018 competition, roughly 400 applications were submitted. More than 180 corporate and private sponsors support the business plan competition. Angel investors, venture capitalists and other investors from around the country volunteer their time to judge the competition, with the majority of the 275+ judges coming from the investment sector. Since 2017, 205 past competitors have gone on to successfully launch their businesses and are still in business today, 28 of those have had successful exits. All RBPC past competitors have raised in excess of $1.9 billion in funding.

The competition is designed to give collegiate entrepreneurs a real-world experience to fine tune their business plans and elevator pitches to generate funding to successfully commercialize their product. Judges will evaluate the teams as real-world entrepreneurs soliciting start-up funds from early stage investors and venture capital firms. The judges are asked to rank the presentations based on which company they would most likely invest. Eighty-seven percent of judges surveyed considered investing in a team that presented at the 2018 RBPC or referred a team to a third-party investor.

About the Rice Alliance for Technology and Entrepreneurship

The Rice Alliance for Technology and Entrepreneurship (Rice Alliance) is Rice University’s nationally-recognized initiative devoted to the support of technology commercialization, entrepreneurship education, and the launch of technology companies. It was formed as a strategic alliance of three schools: the George R. Brown School of Engineering, the Wiess School of Natural Sciences and the Jesse H. Jones Graduate School of Business in collaboration with the Vice Provost and the Office of Research.

Since inception in 2000, more than 1,700 early-stage companies have benefitted by participating in the 175+ programs hosted by the Rice Alliance and have raised in excess of $3.3 billion.

Learn more about the competition.

Onit Launches Enterprise Legal Management Customer Conversion Program

Excitement is in the air as Onit preps for Legaltech New York, but we also have another great news item. We just launched a customer conversion program that allows customers to easily and predictably transfer to the Onit legal e-billing and matter management platform. Tailored towards Fortune 500 legal teams using legacy enterprise legal management products, solutions or software, the program gives customers an alternative to their existing tool that is either being sunsetted or not supported in future versions of other vendor product roadmaps. Law departments nearing the end of their enterprise legal management contracts are also eligible to participate. Conversion program deliverables include a well-defined project scope, discounted pricing, a sample project plan (complete with a timeline estimate) and fixed budgetary estimates of both implementation and license fees.

For more details about the conversion program and to start a needs assessment, email [email protected].

Read the press release.

Onit Customer Prudential Financial to Present at Legaltech New York 2019 on Process Improvement

Onit is gearing up and excited about this year’s Legaltech New York 2019 event! This year we’re especially enthusiastic since we not only have our booth and demos, but our customer Prudential Financial will be presenting an intriguing session. The session is titled, “A Process Improvement Case Study” and will be presented by Brian Burlew, VP, LCBE Ops, Digital Utility, Prudential Financial on Wednesday, January 30 from 12:00 – 1:00 p.m. EST in the Americas Hall I at the Hilton Midtown.

One of the key areas where law department operation professionals are seeking operational wins is by automating legal and business processes. Legal teams today are being asked to do more with less resources but they need tools to meet these challenges. Join Brian to learn more about Prudential Financial’s approach to process improvement. He will discuss how Prudential’s technology team is driving change with process efficiencies to manage its legal operations, and his presentation will highlight the following:

  • The rationale of their technology team’s process improvement initiatives
  • How automating workflows gives them a better view of all on-going business transactions
  • Lessons learned from the implementation process
  • Early results from gaining visibility into their legal operations

This year’s conference will be held January 28-31 in New York City and offers attendees a unique opportunity to learn about the latest legal technology trends and advancements in a peer-rich environment, while also collaborating to address shared issues and opportunities. To learn more about the conference, click here.

Doing More with Less: How Technology is Optimizing Legal Operations

Many folks in legal departments feel, and rightfully so, that the new paradigm is to do more with less money and fewer resources – otherwise known as lean legal. In the overall scheme of legal operations in achieving its objectives with “less,” technology has increasingly played a prominent role. Driving efficiencies and controlling costs in the legal department are being borne, to a significant degree, by well-chosen technology solutions, and legal operations managers who understand this and are taking action. The major school of thought currently is to run legal operations like a business – and to achieve that goal technology has been playing a key role.

Technology is optimizing legal operations in several key areas. Workflow and automation of processes deserve a spot at the top of the list. Automating routine tasks can shave hours off any busy schedule. Collaboration in 2019 via technology gives a whole new meaning to “work together,” and is forging the future of legal operations in ways we could never have imagined. Data analytics is increasingly important, as analytics can demonstrate the value of technology in the department. Looking at the CLOC Legal Operation’s 12 Core Competencies, the Mature Level is what legal departments should be striving for. Whether legal operations staff are familiar with the competencies or not, technology has been there (for those using it), quietly helping them to reach that magic level.

So if technology is so good at helping us in legal operations, what were the barriers to using it in the first place? A lean budget is often cited as one of the major reasons. Resistance to change also places on the list. But one of the other major reasons is integrating new technology with existing systems. Nowadays, resistance to change is really the only thing that should be holding up progress – the other issues of budget and integration have changed considerably in favor of organizations seeking new technology. There are technology solutions out there for practically every budget and integrations have never been easier. And for the “hard of hearing,” there is no longer a good reason not to be taking advantage of cutting-edge technology. Above all, doing more with less in the lean legal department has never been easier and affordable.

Listen to Onit’s New Podcast About K1 Investment Management’s Strategic $200 Million Investment in Onit

We’re excited to announce our latest podcast! In episode 6, Onit CEO Eric M. Elfman discusses K1 Investment Management’s strategic $200 million investment in Onit to accelerate global growth. Eric begins by explaining the reasons why the transaction is exciting for Onit, one of which is that it validates and recognizes the company for what it has accomplished in the last eight years. Another exciting part is that it provides the funding for Onit to execute to its full potential of becoming a market leader in not only enterprise legal management, but in contract management and business workflow.

Eric continues by explaining that K1 is not interested in breaking apart companies to make a profit, but rather to invest in high-growth companies like Onit by funding their continued growth. Eric emphasized that Onit’s goal remains to grow 50-100% per year over the next five years. He went on to explain that the deal will not really affect Onit’s leadership and its teams, since K1 invested in Onit for the way the organization is currently working – they don’t want to “undo” what has been working well. As far as whether Onit’s platform will change, the intent is to continue evolving its front-end and database and scalability of product has to grow. Pricing won’t increase due to the investment, but prices will continue following ordinary trends by increasing or decreasing accordingly.

Eric closes by explaining that K1 wasn’t the only investor that knocked on our door, and that Onit wasn’t actively seeking money at the time. But since he has known K1’s founding team for more than 20 years and really likes them and their investment concept, Eric decided the time was right to close a deal and selected K1 over another close competitor.

Listen to this podcast.

The Long Road to Business Process Automation and Apptitude Part II: More Early Predecessors

“Daedalus…had the power to construct statues endowed with motion and to compel gold to feel human sensations.”
– Callistratus, Descriptions, 4th century A.D.

In part one of this series we discussed some early attempts at automation, some more successful than others. Surprisingly, we can push the history of automation back even further to about 762 B.C. in ancient Greece. In Homer’s Illiad, he discusses the workshop of Hephaestus and the automatons that worked for him. These automatons were basically mechanical robots that served different purposes. For example, his tripodes khryseoi (golden tripods) were wheeled tripods that would wheel themselves in and out of the halls of the gods during the great feasts as they were needed. There were at least seven other named automatons used to carry out various tasks and missions. Although these automatons lived only in the realm of myth (as far as we know), the fact that automation was already being pondered in the 8th century BC is amazing in itself.

Pushing forward many centuries we find more solid evidence of real automation which laid the groundwork for modern business process automation and our process automation platform, Apptitude. In the 12th century AD, Ismail Al-Jazari created his famous Castle Clock. This clock was renowned in its day for its magnificence and accuracy in telling time, but its foreshadowing of automation is undeniable. Replicas of this clock can be found throughout the world today, including the United States. Through trial and error, Al-Jazari used gears, chains, wood, metal, a float chamber, flow regulator, and water to make the huge clock work. Every hour, doors would open automatically to reveal a figurine, and two gold falcon automata would drop balls into vases waiting below. Automata were a highlight of this wonder. Three times a day, five robotic, mechanical musicians would automatically perform musical pieces when activated by a water-driven camshaft. They would be activated by a system of pulleys, water trough and a water-powered “scoop” wheel. The clock also featured several displays, including the lunar and solar orbits and the zodiac. A crescent moon-shaped disc would move across the frieze indicating minutes.

Al-Jazari’s Castle Clock
Al-Jazari’s Castle Clock

In 1804 an inventor in France had developed several types of looms; including one with a treadle for power and another for weaving fishing nets. But Joseph Jacquard’s most famous invention was an automatic mechanical loom that used pasteboard cards with punched holes to control the process of weaving complex patterns. Prior to this invention, weaving intricate, figured designs was a slow and very laborious process. It required two operators: the skilled weaver and the draw boy to operate the loom. Jacquard felt there had to be a way to simplify the process for weaving complex patterns, and that a mechanism could be developed to make this happen. After much experimentation and trial and error, Jacquard succeeded in making the first programmable loom. Many hundreds or even thousands of these cards would be strung together, each card representing one row of the woven design. Jacquard’s invention was a landmark in computing history and not a fly-by-night fad by any means, since punched cards for computing were in use until the 1980s.


Jacquard’s Loom, showing coded punched cards

Onit would like to pay homage to these and all inventors whose ideas were guiding lights and blazed the path to the modern process automation. Every business process automation platform, including Apptitude, truly has a deep heritage going back many centuries.

Onit Secures $200 Million Strategic Investment from K1 Investment Management to Accelerate Global Growth

Onit is thrilled to announce that K1 Investment Management has made a $200 million strategic investment in our company. With the investment, Onit will scale operations to meet the increasing demand for innovative, market-leading process automation technology and enhance its back-end infrastructure to increase its scalable platform to meet continued growing client demand. Additionally, the investment will help fund go-to-market strategies, accelerate new product development and increase functionality of existing product offerings.

Onit’s CEO Eric M. Elfman is especially thrilled about this investment – “We are very excited to partner with K1 and their significant investment in our company further demonstrates the continued growth trajectory for Onit. We believe that we are clearly proving that our approach to streamlining business process – creating better workflows and not better databases – fundamentally sets us apart in the industry and is driving growth. We have the only end-to-end platform that solves workflow and process challenges across the enterprise. In fact, we have configured and deployed more than 200+ solutions and are instrumental in driving the transformation with some of the most innovative global companies in the world. As we scale to meet increasing demand, we are excited to also accelerate our investment in product development, resources and operations.”

Likewise, K1’s Managing Partner Neil Malik shares enthusiasm about this deal – “Onit’s platform has raised the bar on what users expect from software that extends beyond legal across the enterprise. We’ve seen the company more than triple its customer base and revenue in two years and we have tremendous confidence in the management team’s long–term vision. It’s exciting to partner with a team that pioneered the legal software space nearly 20 years ago and to now see how their innovative solutions are transforming the way Fortune 500 companies and legal departments operate.”

Onit’s client Anna-Lisa Corrales of Jaguar Land Rover North America offered her excitement on hearing the news – “We are on a legal transformation journey at Jaguar Land Rover toward greater efficiency and effectiveness, and the partnership between our law department and Onit has been instrumental in accelerating this process. We had to rethink the use of our internal and external resources and knew that we wanted to build partnerships with technology experts to help drive this revolution. We found that commitment from Onit and its management team. Rooted in an innovative system architecture that supports our needs for process automation, workflow and collaboration, Onit’s platform can enable best-in-class solutions for our growth today and in the future.”

Read the press release.