Wed. Apr 24th, 2024

Content Assessment: Data Type Challenges on the Rise? Issues Impacting eDiscovery Business Performance: A Spring 2023 Overview

Information - 95%
Insight - 96%
Relevance - 93%
Objectivity - 94%
Authority - 95%

95%

Excellent

A short percentage-based assessment of the qualitative benefit of the recent post highlighting issues impacting the business of eDiscovery as reported in the spring 2023 quarterly business confidence survey from ComplexDiscovery.

Editor’s Note: The recent Spring 2023 eDiscovery Business Confidence Survey provides insights into the impact of key issues on the eDiscovery industry. However, to gain a comprehensive understanding of these issues and their potential influence on the business of eDiscovery, it is essential to consider the results collectively, taking into account the findings of all surveys administered to eDiscovery professionals since the survey’s inception.

Launched in January 2016, the eDiscovery Business Confidence Survey has been conducted thirty times, amassing a total of 3,014 individual responses. The latest iteration of the survey, carried out in Spring 2023, gathered responses from 75 participants. By presenting recent results in conjunction with past survey findings, this update aims to shed light on the evolving trends and challenges within the eDiscovery industry, empowering professionals to make informed decisions and address these issues effectively.


Industry Report

Data Type Challenges on the Rise? Issues Impacting eDiscovery Business Performance: A Spring 2023 Overview

ComplexDiscovery*

The eDiscovery Business Confidence Survey is a non-scientific, quarterly survey aimed at providing insights into the business confidence levels of professionals working within the eDiscovery ecosystem. The survey is comprised of nine core multiple-choice questions centered around factors related to the creation, delivery, and consumption of eDiscovery products and services. Additionally, the survey features three optional questions focused on the business operational metrics of days sales outstanding (DSO), monthly recurring revenue (MRR), and revenue distribution across customer bases.

The most recent survey was conducted in Spring 2023 and garnered responses from 75 participants with roles spanning executive leadership (44.0%), operational management (28.0%), and tactical execution (28.0%). Industry segments represented in the survey include law firms (36.0%), software and service providers (33.3%), consultancies (10.7%), corporations (8.0%), media and research professionals (6.7%), and others (5.3%). Government entities did not participate in the survey.

In each quarterly survey, participants are asked to choose one issue from a list of six options that they believe could have the most significant impact on their eDiscovery business over the next six months. The issues presented are:

  • Budgetary Constraints
  • Data Security
  • Inadequate Technology
  • Increasing Types of Data
  • Increasing Volumes of Data
  • Lack of Personnel

Though not exhaustive, this list of issues provides a practical overview of potential areas that seem to have a direct and ongoing influence on the business of eDiscovery.

Based on the aggregate results of past surveys, the following findings and charted overviews of responses to the question of issues impacting business may be helpful in understanding the collective mindset of many industry experts regarding these issues and their impact on the business of eDiscovery.

Six Key Findings in the Spring of 2023

The Spring 2023 eDiscovery Business Confidence Survey shed light on a range of top concerns among respondents, underscoring the intricate challenges that organizations encounter in the current data-driven environment. Based on the percentage of responses, the following findings highlight the issues that may most impact the business of eDiscovery for respondents in the next six months. 

  • In the spring of 2023, 33.3% of respondents viewed increasing types of data as potentially having the greatest impact on their business in the next six months. This percentage is the highest of all concerns in the spring 2023 survey. This percentage is also the second-highest rating in the area of increasing types of data concerns since the inception of the survey in the winter of 2016. This substantial increase from 13.8% in the winter survey highlights the challenges organizations face in managing and analyzing diverse types of structured and unstructured data. (Charts 1,2, and 3)
  • Budgetary constraints continued to be a reasonably consistent concern for eDiscovery professionals, with 21.3% of spring 2023 survey respondents viewing budgetary constraint challenges as potentially having a substantial impact on business in the next six months. This was a solid decrease in this area from the 32.3% response rate in the winter 2023 survey. While the percentage of respondents concerned about budgetary constraints has decreased in the last quarter, it still remains a top concern for businesses, and organizations must allocate resources strategically to effectively tackle this ongoing issue. (Chart 4)
  • Increasing volumes of data continued to be a reasonably consistent concern for eDiscovery professionals, with 16.0% of spring 2023 survey respondents viewing data volume challenges as potentially having a substantial impact on business in the next six months. This was a measured decrease in this area from the 20.0% response rate in the winter survey. This change in concern suggests that organizations continue to struggle with managing the sheer amount of data generated, stored, and analyzed, which could strain existing infrastructure and require investments in scalable data storage and processing solutions. (Chart 5)
  • Respondent’s concern for the impact of data security on eDiscovery business performance decreased slightly (2.1%) during the last quarter and continues to be the top concern for 13.3% of those surveyed. Although the percentage has slightly decreased, data security remains a significant challenge, and organizations must continue to prioritize investments in cybersecurity measures to protect sensitive information and maintain compliance with privacy regulations. (Chart 6)
  • The percentage of respondents that viewed lack of personnel as a top business concern increased in the last quarter from 9.2% in the winter of 2023 to 13.3% in the spring of 2023. which indicates that organizations might be facing challenges in meeting their staffing needs. This increase suggests that the existing workforce within organizations is potentially taking on a greater workload due to the demand for skilled eDiscovery professionals outpacing hiring and retention. In response to this challenge, organizations should consider investing in training and retaining talent while also enhancing their hiring strategies as budgets allow. (Chart 7)
  • In the spring of 2023, the impact of inadequate technology as the top business issue decreased by 6.5% from the last quarter and is now viewed as the top concern by only 2.7% of survey respondents. Even with this rating, organizations should consistently evaluate and update their tools and infrastructure to adapt to the ever-changing data landscape and maintain efficiency and competitiveness. (Chart 8)

These top concerns highlight the multifaceted challenges faced by eDiscovery professionals and organizations. Addressing these issues demands a comprehensive approach that combines strategic resource allocation, technological investments, and a skilled workforce to effectively navigate the complex eDiscovery landscape.

Considering Thirty Quarters of Results from 2016 to 2023

From a top-issue perspective, the following potential issues and the number of quarterly times they have been considered the top concern by survey respondents are shared to create context as to the continuing concerns of eDiscovery professionals.

  • Budgetary Constraints: 15* 
  • Increasing Types of Data: 8
  • Increasing Volumes of Data: 6*
  • Lack of Personnel: 2
  • Data Security: 0
  • Inadequate Technology: 0

* Top concern tied between Budgetary Constraints and Increasing Volumes of Data in the Winter of 2017.

Survey Charts

(Charts Can Be Expanded for Detailed Viewing)


Chart 1: An Aggregate Overview of Issues Impacting eDiscovery Business Performance

Issues Impacting eDiscovery Business Performance – Aggregate – Spring 2023


Chart 2: An Overview of Issues Impacting eDiscovery Business Performance in the Spring of 2023

Issues Impacting eDiscovery Business Performance – Individual Challenges – Spring 2023


Chart 3: An Overview of the Percentage of Respondents Viewing Increasing Types of Data as the Top Issue Impacting eDiscovery Business

Impact of Increasing Types of Data on eDiscovery Business – Aggregate Spring 2023


Chart 4: An Overview of the Percentage of Respondents Viewing Budgetary Constraints as the Top Issue Impacting eDiscovery Business

Impact of Budgetary Constraints on eDiscovery Business – Aggregate Spring 2023


Chart 5: An Overview of the Percentage of Respondents Viewing Increasing Volumes of Data as the Top Issue Impacting eDiscovery Business

Impact of Increasing Volumes of Data on eDiscovery Business – Aggregate Spring 2023


Chart 6: An Overview of the Percentage of Respondents Viewing Data Security as the Top Issue Impacting eDiscovery Business

Impact of Data Security on eDiscovery Business – Aggregate Spring 2023


Chart 7: An Overview of the Percentage of Respondents Viewing Lack of Personnel as the Top Issue Impacting eDiscovery Business

Impact of Lack of Personnel on eDiscovery Business – Aggregate Spring 2023


Chart 8: An Overview of the Percentage of Respondents Viewing Inadequate Technology as the Top Issue Impacting eDiscovery Business

Impact of Inadequate Technology on eDiscovery Business – Aggregate Spring 2023


Chart 9: Survey Participant Overview

Survey Respondents (Individual and Aggregate Overview) Spring 2023

Past Survey Results

*Assisted by GAI and LLM Technologies

Additional Reading

Source: ComplexDiscovery


Complete Presentation – Market Kinetics – Spring 2023 Performance Impact (PDF) – Mouseover to Scroll

0 – Business Confidence – Performance Impact – 050223

 

 

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