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Continued use of email and the development of expert systems and client
extranet access is likely to lead to significant efficiencies and costs savings in the
provision of all professional services. In addition, use of these services by clients
is likely to cause higher levels of client loyalty to professional service firms,
rather than individual practitioners.
Survey Response: Duncan Giles, Blake Dawson Waldron,
IRG member, 20 July 1999
Feedback from industry sources indicates that greater use of e-commerce
will stimulate disintermediation in this sector. In fact, many changes have
already been made.
Real efficiencies in supply side value chain contractions are being seen already
with the creation of software and websites allowing, for example, cradle to grave
solutions for conveyancing transactions, including the creation and
authentication of documents, finance approvals and provision, registration of
documents and securitisation of loans. Consumer side efficiencies will also follow
with the acceptance of more sophisticated expert systems and extranet access to
real time project management, document development, billing and document
storage systems. Customised repackaging and streamlining of advice will also
become available using knowledge management and datamining techniques.
Survey Response: Duncan Giles, Blake Dawson Waldron,
IRG member, 20 July 1999
The reduced cost and the ease of undertaking some process activities
electronically by e-commerce may lead individuals and organisations to
undertake tasks themselves that were previously purchased from business
services providers. For example the ATO provides a capacity for
individuals to complete their tax returns over the Internet, which may
reduce the demand for tax accountants. However, this argument focuses
on administrative processes rather than the added value provided by
business services firms. Ultimately, business services firms are likely to
concentrate on providing core value adding activities, such as highly
skilled knowledge services, rather than associated administrative services.
5.3 New costs
There will be some additional costs for the business services sector in
order to procuring the capacity to undertake e-commerce. The cost of
hardware to process and store information, maintenance of hardware,
purchase of new or updated software applications, and applications
training are all business costs associated with e-commerce.
In particular the dynamism of e-commerce means new methods of
transferring information often require the latest hardware, as well as
requiring skilled labour and compatible communications equipment. In
legal services, court rooms increasingly need to be equipped with up to
date hardware to read electronic information:
Digitisation has caused, and will continue to cause, an enormous increase in the
amount of information generated, shared and stored by organisations and
individuals. Labour, IT and communications (primarily bandwidth) costs will
increase significantly because of this and new tools are required to manage these
information channels and stores. From a forensic point of view, analysing
digitised information is becoming a critical part of most major pieces of litigation
and is beginning to slow court proceedings where sophisticated access and
analysis tools (such as Lantern, eDiscover) are not available or used. On the
other hand, where these tools are used very significant cost savings can be
effected over traditional methods of discovery and court presentation.
Survey Response: Duncan Giles, Blake Dawson Waldron,
IRG member, 20 July 1999
The costs of developing websites and new Internet related products may
be incurred by internal departments or by engaging the new breed of
e-commerce consultants.
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