Covid-19 Is Transforming The Legal Industry: Macro And Micro Evidence
There is widespread consensus among CEO’s that business changes underway before Covid-19 have accelerated dramatically. For example, online delivery’s volume increased by the same amount in eight weeks as it had during the previous decade. Telemedicine experienced a ten-fold growth in subscribers in just 15 days. Microsoft CEO Satya Nadella crystallized the nexus between Covid-19 and digital transformation during a recent quarterly earnings call: “We’ve seen two years’ worth of digital transformation in two months.”
Digital transformation has been a C-Suite priority for some time. The warp-speed of change unleashed by the pandemic has established digital adoption and maturation as fault lines across industries and businesses. Covid-19 is widening pre-pandemic divides between digitally advanced industries and less advanced ones. A McKinsey study found that mature sectors like semiconductors and software are far outperforming lower-maturity ones like utilities and energy. The study also found a similar pattern among businesses across the surveyed industries; digitally mature companies far outperform less mature peers.
A Deloitte study determined that higher-maturity companies are approximately three times more likely than digital laggards to report annual net revenue growth and net profit margins significantly above their industry average. The study found this pattern cuts across industries and companies.