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Content Assessment: A Case for Confidence? Opening Arguments from a First Look at the Summer 2023 eDiscovery Business Confidence Survey
Information - 93%
Insight - 92%
Relevance - 94%
Objectivity - 95%
Authority - 94%
94%
Excellent
A short percentage-based assessment of the qualitative benefit of the post highlighting the business confidence of cybersecurity, information governance, and legal discovery professionals in the summer of 2023.
Editor’s Note: The eDiscovery Business Confidence Survey is a non-scientific quarterly survey that shares insight into the business confidence of individuals working in the eDiscovery ecosystem. The survey consists of nine core questions on factors related to the creation, delivery, and consumption of eDiscovery products and services purposed toward cyber, data, and legal discovery tasks. Additionally, the survey contains three optional questions focused on the business operational metrics of days sales outstanding (DSO), monthly recurring revenue (MRR), and customer revenue distribution.
Background Note: The eDiscovery Business Confidence Survey is a well-established, quarterly research initiative designed to provide insights into the state of business confidence in the eDiscovery ecosystem. Since its inception, the survey has been administered 31 times, drawing an average of 100 respondents per survey and totaling 3,085 responses in aggregate. This consistent pulse check has played a pivotal role in understanding industry sentiment, capturing trends in revenue and profit, and identifying the key challenges faced by eDiscovery professionals.
The Summer 2023 edition of this quarterly survey was administered between June 22, 2023, and July 15, 2023. The promotion of the survey was primarily handled through direct emails* from ComplexDiscovery, with the support of survey advocates like the EDRM, eDiscovery Today, the Master’s Conference, the Legal Tech Talent Network, and other leading eDiscovery organizations. This inclusive promotion approach ensured a broad and diverse range of respondents, making the findings representative and insightful. The Summer 2023 survey saw participation from 71 industry professionals.
Industry Survey
The Summer 2023 Survey: A First Look
ComplexDiscovery Staff
The Summer 2023 survey encapsulated a diverse range of organizational segments. The majority of the respondents were from Software and/or Services Providers (35.21%) and Law Firms (29.58%). Consultancies (15.49%) and Corporations (9.86%) followed, with Media/Research Organizations, Governmental Entities, and Others also being represented.
In terms of the level of support, the survey represents a balanced cross-section of the industry. Executive Leadership made up the largest group at 38.03%, closely followed by Tactical Execution and Operational Management, each representing 30.99% of respondents.
Key Insights from the Summer 2023 Survey
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Business Conditions: Half of the respondents rated the current business conditions as Good, with 46.48% viewing them as Normal and a small minority of 2.82% rating them as Bad. Looking ahead, the majority (54.93%) believe that business conditions will be better six months from now.
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Revenue and Profits: Respondents were slightly more optimistic about their segment’s revenue, with 43.66% expecting it to be higher in six months. However, the majority (56.34%) believe that profits will remain the same between now and the end of the year.
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Key Challenges: The respondents identified ‘Increasing Types of Data’ (36.62%) and ‘Budgetary Constraints’ (19.72%) as the key challenges that will most impact the business of eDiscovery over the next six months.
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DSO, MRR, and Customer Base Distribution: Respondents characterized the trajectory of their organization’s Days Sales Outstanding (DSO) and Monthly Recurring Revenue (MRR) during the last quarter as primarily increasing or unfluctuating, with a significant number reporting that they do not know. Regarding the distribution of their organization’s revenue across their customer base during the last quarter, responses were almost equally distributed among those seeing it unfluctuating, those seeing it increasing, and those who do not know.
Implications for Industry Professionals
These results provide valuable insights that can guide decision-making for cybersecurity, information governance, and legal discovery professionals operating in the eDiscovery ecosystem:
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Addressing Key Challenges: The survey identified ‘Increasing Types of Data’ and ‘Budgetary Constraints’ as the key challenges that are expected to impact the business of eDiscovery over the next six months. Professionals should prioritize strategies and solutions to address these challenges, such as investing in advanced data management and analytics tools, and finding ways to optimize budget allocation.
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Optimizing for Business Conditions: With half of the respondents rating current business conditions as Good and a majority expecting conditions to be better in six months, professionals should consider this as a positive signal to invest in growth opportunities. This might include expanding services, investing in new technologies, or scaling up teams.
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Revenue and Profit Expectations: With a significant number of respondents expecting their segment’s revenue to be higher in six months, but the majority expecting profits to remain the same, professionals should focus on strategies that boost profitability. This might involve improving operational efficiencies, exploring new revenue streams, or managing costs more effectively.
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Monitoring Financial Indicators: The survey results on Days Sales Outstanding (DSO), Monthly Recurring Revenue (MRR), and Customer Base Distribution provide valuable insights into financial operations. Professionals should benchmark these metrics against their own organization’s performance and make financial decisions accordingly.
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Strategic Planning: The aggregated insights from the survey can help professionals to validate their strategic planning, resource allocation, and decision-making processes. By aligning strategies with industry trends and challenges, professionals can enhance their organization’s resilience and competitiveness.
This first look at the Summer 2023 eDiscovery Business Confidence Survey provides a comprehensive snapshot of the current state and future expectations within the eDiscovery industry. As the industry continues to evolve, these insights will continue to be invaluable for professionals navigating this dynamic landscape. Future analyses will delve deeper into these trends, offering a more detailed understanding of the business of eDiscovery.
Summer Survey Questions (Required)
n = 71 RespondentsPart of the eDiscovery ecosystem where your organization resides
- Software and/or Services Provider: 35.21%
- Law Firm: 29.58%
- Consultancy: 15.49%
- Corporation: 9.86%
- Media/Research Organization: 4.23%
- Other: 4.23%
- Governmental Entity: 1.41%
- Good: 50.70%
- Normal: 46.48%
- Bad: 2.82%
- Better: 54.93%
- Same: 45.07%
- Worse – 0.0%
- Higher: 43.66%
- Same: 50.70%
- Lower: 5.63%
- Higher: 35.21%
- Same: 56.34%
- Lower: 8.45%
- Increasing Types of Data: 36.62%
- Budgetary Constraints: 19.72%
- Increasing Volumes of Data: 18.31%
- Lack of Personnel: 11.27%
- Data Security: 9.86%
- Inadequate Technology: 4.23%
- North America – United States: 92.96%
- North America – Canada: 4.23%
- Asia/Asia Pacific: 1.41%
- Europe – United Kingdom: 1.41%
- Europe (Non-UK) – 0.0%
- Middle East/Africa – 0.0%
- Central/South America – 0.0%
- Legal/Litigation Support: 71.83%
- Business/Business Support (All Other Business Functions): 23.94%
- IT/Product Development: 4.23%
- Executive Leadership: 38.03%
- Operational Management: 30.99%
- Tactical Execution: 30.99%
Business Metric Trajectory Questions (Optional)
10. How would you characterize the trajectory of your organization’s Days Sales Outstanding (DSO) during the last quarter?- Increasing: 29.23%
- Unfluctuating: 29.23%
- Decreasing: 13.85%
- Do Not Know: 27.69%
- Increasing: 33.85%
- Unfluctuating: 23.08%
- Decreasing: 9.23%
- Do Not Know: 33.85%
- Increasing: 29.23%
- Unfluctuating: 29.23%
- Decreasing: 12.31%
- Do Not Know: 29.23%