The Hidden Cost of ‘Almost Digital’: Why Partial Transformation Is Holding Firms Back

Bridging the Gap: From Legal Ambition to Operational Reality

Australia and New Zealand’s legal sectors are not short on ambition. Across firms of all sizes, there is a clear appetite for innovation - investment in cloud platforms, interest in AI, and a growing focus on improving client experience. On the surface, many firms would describe themselves as “digital”.

But beneath that surface lies a different reality.

For a significant proportion of AU/NZ firms, digital transformation is incomplete. Systems don’t quite connect. Processes still rely on manual intervention. Data is duplicated, rekeyed, and moved between platforms. The result is what we might call an “almost digital” firm. One that has adopted technology but not fully realised its value.

And that gap comes at a cost.

The Illusion of Digital Progress

It’s easy to equate technology investment with transformation. A new practice management system, a cloud migration, or a handful of automation tools can create the impression of progress.

But transformation isn’t defined by the tools a firm owns - it’s defined by how effectively those tools work together.

Across the market, many firms are operating with:

• Disconnected systems that don’t share data seamlessly
• Legacy workflows sitting alongside modern platforms
• Manual workarounds bridging gaps between tools

This creates a “digital disconnect”, where technology exists, but doesn’t fully support the way lawyers and teams actually work.

Donna Broadley, General Manager, APAC at Xperate, says:

“A lot of firms we speak to feel like they’ve already ‘done’ digital transformation. But when you look closer, what they’ve really done is digitise parts of their process - not connect them.”

The Hidden Inefficiencies in Law Firms

These gaps rarely appear as headline problems. Instead, they show up in small, everyday inefficiencies that compound over time:

• Re-keying data between systems
• Duplicated effort across teams
• Delays caused by switching between platforms
• Inconsistent data impacting reporting and decision-making

Individually, these issues may seem minor. Collectively, they erode productivity, reduce profitability, and create friction for both staff and clients.

Donna says:

“The biggest inefficiencies in law firms aren’t usually big, visible problems - they’re the small, repeated tasks that happen hundreds of times a day. That’s where time and margin quietly disappear.”

Perhaps more importantly, these inefficiencies limit a firm’s ability to scale. Growth becomes harder when processes are fragmented and reliant on manual input.

When Technology Moves On - And Firms Are Left Behind

One of the less visible challenges facing firms today is the changing nature of legal tech platforms themselves.

Vendors are evolving their products rapidly - introducing new architectures, shifting to cloud-first models, and in some cases retiring or restricting existing integrations. For firms, this can create unexpected disruption.

Processes that once worked seamlessly can suddenly break. Integrations are withdrawn. Teams are forced back into manual processes or left searching for alternative solutions.

Donna says:

“We’re seeing more firms caught out by changes they didn’t anticipate - integrations disappearing, platforms shifting direction. It’s not that vendors are doing anything wrong, but it does highlight how little control many firms actually have over their own tech stack."

This highlights a critical issue: control.

Firms that rely entirely on out-of-the-box functionality often find themselves constrained by vendor decisions. Those with more flexibility - through integrations, extensions, or bespoke development - are better positioned to adapt.

Why More Tools Isn’t the Answer

Faced with these challenges, the instinct is often to add more technology:

• Another platform
• Another tool
• Another workaround

But adding tools to an already fragmented environment rarely solves the problem. In fact, it usually makes it worse.

Donna's view is that:

“Adding more tools into a disconnected environment is like adding more lanes to a motorway that’s already blocked at the junctions - it doesn’t fix the flow”

Efficiency doesn’t come from having more systems. It comes from having connected systems.

True digital maturity is less about replacing everything and more about:

• Integrating what already exists
• Streamlining workflows across platforms
• Ensuring data flows seamlessly from one process to the next
  

The Real Opportunity

The opportunity for firms in Australia and New Zealand is significant.

The sector is already forward-thinking. There is a clear awareness of the need for innovation, and a strong interest in areas such as automation, AI, and client experience.

The next step is moving from adoption to optimisation.

That means shifting the focus from: “What technology do we need?” to “How do we make our existing technology work better together?”

Donna says:

“The firms that are getting ahead aren’t necessarily the ones investing the most - they’re the ones getting more out of what they already have, and doing so with a clear strategy.” 

Firms that take this approach can unlock:

• Greater efficiency without wholesale system replacement
• Improved client experience through smoother processes
• Better data for decision-making
• A stronger foundation for future innovation

Bridging the Gap

For many AU/NZ firms, the challenge is not a lack of ambition - it’s the gap between ambition and operational reality.

Bridging that gap requires a more pragmatic approach to transformation:

• Understanding where inefficiencies truly exist
• Prioritising integration over expansion
• Focusing on outcomes, not just functionality

Donna says:

“Technology should feel invisible when it’s working properly. If your team is constantly working around your systems, something isn’t right.”

Because the firms that succeed in the next phase of legal tech won’t be those with the most tools, they’ll be the ones that make their technology work together.