Bringing the EDRM model to life

1. Discovery
Prepared by Rule Financial
Information Management
Q1 2009
© Rule Financial Ltd 2009. All rights reserved. Commercial in confidence Slide 1

2. Contents
How can we help?
 The challenge of discovery
 Market activity
 A model for electronic discovery
 Discovery best practice
 Software vendor & consultancy landscape
 What do we find? How have we
responded?
 Key questions for Corporates
 Our service offerings
 Proposition: Stakeholder workshop
 About Us
 Contacts
© Rule Financial Ltd 2009. All rights reserved. Commercial in confidence Slide 2

3. The Challenge of Discovery
The Problem
 The volume of litigation is rising
• Impending wave of litigation emerging from the
global turmoil in financial markets.
 Corporates face ever-increasing demands when Sources Fulbright and Jaworski
responding to each matter
• New regulations result in burdensome discovery Against this background, corporates need to:
processes, with heavy penalties for non-
compliance.  Ensure that they are able to meet all
regulatory and legal requirements (in
 Corporates are exposed to diverse international potentially multiple jurisdictions)
regulations.
• The global market for litigation allows claimants to  Develop, deploy and enforce a defensible,
bring matters in the jurisdiction which most favours
repeatable process for discovery
them (most frequently the US)
 Increase efficiency and manage the
potentially escalating cost of discovery
© Rule Financial Ltd 2009. All rights reserved. Commercial in confidence Slide 3

4. Market Activity
Organisations : Exploring ways to tackle discovery obligations in-house.
 Corporates have traditionally turned to one of a small number of outsourced
discovery consultancy providers to meet their discovery requirements at high cost
 Corporates want to invest in technology to reduce their dependence on outsourced
discovery consultants. “More and more enterprises are
 Significant cost savings are to be made
 An immature software vendor market, large license fees and lack of a defined
process are barriers to be overcome. looking to in source at least part of
Software vendors: Market remains fragmented the e-discovery function, Clients
 Niche technology businesses are investing heavily in new segments to offer an
enterprise solution. report that the payback period for
 Innovative companies are exploring alternative ways of selling their software to
clients, including pay-per-use software. an e-discovery investment is 3-6
 Expertise is required to distinguish the credible from the aspirational solution.
months”
Legal firms: Seeking ways to encourage claimants to pursue litigation - Gartner: ‘MarketScope for e-discovery software
product vendors 2008’
 Schemes such as third party funding and insurance schemes are being launched to
give individuals and companies the confidence and ability to take matters to court.
 On the other side of actions, legal firms, who traditionally have relationships with
forensic service providers, are investigating in partnerships with software vendors
to offer their clients lower discovery costs through the implementation of ‘straight
through processes’.
© Rule Financial Ltd 2009. All rights reserved. Commercial in confidence Slide 4

5. Electronic Discovery Reference Model
 We follow the EDRM model (below) which represents the recommended process organisations
should follow in response to legal / regulatory action being brought against them.
 Upon notice of litigation or investigation, the organisation must identify all relevant custodians &
information.
 The custodians and their information should be placed under ‘Legal Hold’, wherein the information is
preserved before being collected to a central repository.
 All collected information is then analysed & processed using forensic technology so that only
relevant information is kept.
 The resulting relevant information is then used for case preparation.
New Matter
Processing
Preservation
Records
Identification Review Production Presentation
Management
Collection
Analysis
Volume Ref: EDRM Project Relevance
© Rule Financial Ltd 2009. All rights reserved. Commercial in confidence Slide 5

6. Discovery Best Practice
Compliance High Return on Investment
 To meet timescale targets
 To meet timescale targets   Bringing expensiverepeatable in-house
Defined, transparent and processes
 Defined, transparent and repeatable  Auditable
 Improved control of legal costs
 Auditable  Reduced settlement costs
 Effective logging of
 Company file plan
matters  Collected information
 Effective records  Legal review tools:
 Quick identification of categorised
management policy  Information stored in
relevant custodians &  Data culled by multiple
 Active policy central repository
information search criteria
management  Classification / tagging
 Automation of  Data de-duplicated
• Email archiving of information
custodian notifications  Reports on analysis
• Automated  Files exported to
 Provision of process MI activities
destructions matter management
 Auditable process  Review of content
• Rights management systems
 Automatic escalation / processed
reminders
New Matter
Processing
Preservation
Records
Identification Review Production Presentation
Management
Collection
Analysis
Volume Ref: EDRM Project Relevance
© Rule Financial Ltd 2009. All rights reserved. Commercial in confidence Slide 6

7. Vendor & Consultancy Landscape
 The market is immature, over-hyped, overcrowded and uncertain. Rapid functional consolidation is expected.
 Functionality is confused and overlapping.
 Few software vendors offer credibly complete solutions for eDiscovery, and those with aspirations are extremely costly
 The use of technology is not an excuse for ignoring inadequate business processes
Discovery vendors & consultancies
PSS Atlas
Guidance
Orchestria Concordance (Lexis Nexis)
Zylab Summation
Autonomy, Oracle Stellent
Kroll, KPMG, E & Y, etc...
New Matter
Processing
Preservation
Records
Identification Review Production Presentation
Management
Collection
Analysis
Volume Ref: EDRM Project Relevance
© Rule Financial Ltd 2009. All rights reserved. Commercial in confidence Slide 7

8. What Do We Find?
What do we find? Rule View
 Most organisations have little idea of what content they  We see technology as only part of the discovery process:
have, where it resides and who owns it operational excellence is central to ensuring your
 The processes for coping with litigation are often organisation is well placed to efficiently tackle its discovery
undocumented and inconsistent. obligations.
 Globalisation of trade results in cases being brought in the • Corporations need to focus on their operating models within their
jurisdiction most favourable to the litigant. This is legal departments
frequently the US, which has the most demanding • Effort spent in integrating process with outside counsel will pay big
discovery requirements dividends
 Global privacy laws create an additional complexity in • Local solutions need to consider international requirements
identification & collection
 The discovery landscape is broad and littered with multiple  An effective strategy for discovery must be based on a clear
vendors offering either generic solutions or localised understanding of an organisation’s pain points and
functionality requirements. This must be inclusive of people, process and
 The technology solutions market is immature technology
 Large, upfront costs for software licenses can be a barrier  We believe our clients should also consider working with
for organisations wishing to tackle discovery in-house. discovery vendors on a pay-per-use basis, enabling them to
 This leads to organisations outsourcing their discovery benefit from market leading technology while not incurring
problems to costly forensic consultancies on a case-by-case the high costs incurred by outsourced forensic
basis. consultancies.
© Rule Financial Ltd 2009. All rights reserved. Commercial in confidence Slide 8

9. Key Questions for Corporates
How do you calculate
How do you decide how
whether it is worth
best to invest in records
bringing your discovery
management to enable
problem in-house, giving
efficient compliant
due consideration to both How do you develop and
discovery?
How do you develop and risk and cost? implement a repeatable,
enforce record retention defensible process for
policies to meet discovery managing your
requirements? employees and their data
in response to litigation?
How do you develop a business
case to prioritise investment in
discovery?
How do you decide
How do you estimate
whether to trust your
discovery costs up-front
employees to comply
in order to decide how to
with discovery policies or
defend, or whether to
How do you design and to invest in “active policy
settle a matter?
implement a straight management”?
How do you decide the
through process for best way to pay for
discovery which links-in discovery technology?
seamlessly with third Pay-per-use or licenses?
parties?
Rule Financial helps its clients to answer these questions
© Rule Financial Ltd 2009. All rights reserved. Commercial in confidence Slide 9

10. Our Service Offerings
Rule Financial Service Offerings
Content file plan
Strategy & business case
Requirements
Operational model design
Component selection & integration
Records Management
Pay-per-use software - hold, collect and aggregate Matter management systems
systems
New Matter
Processing
Preservation
Records
Identification Review Production Presentation
Management
Collection
Analysis
Volume Ref: EDRM Project Relevance
© Rule Financial Ltd 2009. All rights reserved. Commercial in confidence Slide 10

11. Proposition: Stakeholder Workshop
We can help you to... What’s next?
 Recognise and adopt best practice Our consultants can meet with key
stakeholders from your organisation in
 Create an operating model that an initial discovery requirements
spans the corporation and key workshop to:
partners (most notably legal counsel)  Review your litigation / discovery
processes
 Ensure that your process is  Establish an agreed discovery
compliant, efficient and scalable in landscape
size and scope to cover the full range  Match your current people,
of actions, from small local to large processes and technology against
global the discovery landscape
 Identify next steps: both short term
fixes and strategic initiatives
© Rule Financial Ltd 2009. All rights reserved. Commercial in confidence Slide 11

12. About Us
Rule Financial Rule - IMC
For over 11 years Rule Financial’s specialists have Our Information Management Consultancy (IMC) has a
been working alongside their counterparts at the wealth of experience from maximising physical storage
world’s top financial institutions, helping to lower needs through to information worker solutions
delivered by our in-house Microsoft SharePoint team.
costs, improve productivity and deliver
innovative solutions.
We are particularly keen to align business analysis and
strategic visioning to actual solution delivery and
measurable success.
Our diverse portfolio of clients includes;
• Investment Banks
• Hedge Funds
• Professional Services
• Legal Practitioners
• Media
• Engineering
Rule Financial is a Microsoft Certified Partner and a member of
• Government & Public Sector
the ‘Sunday Times Tech Track 100’ fastest growing technology
companies for 2008 in the UK
© Rule Financial Ltd 2009. All rights reserved. Commercial in confidence Slide 12

13. Contacts
Address
Rule Financial
IMC
101 Moorgate
London EC2M 6SL
 Mike Lines Tel: +44 (0)20 7826 4444
Partner: Information Management
mike.lines@rulefinancial.com
Tel: +44 (0)7826946177
 Find us online at:
http://www.rulefinancial.com
Source: Google Maps
© Rule Financial Ltd 2009. All rights reserved. Commercial in confidence Slide 13