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GM thought like this, and Toyota ate their market from the bottom up.

If the old guard aren't the ones destroying their business, then they should be petrified of anyone who gains a beachhead.



Well..product cannibalization is different than a professional moving up the value-chain.

A professional is trading hours for dollars, the only way to increase their income is to either arbitrage cheap tasks (i.e. hire low-paid professionals and bill them out at a higher rate), increase the amount of hours they bill, increase their hourly rate.

The best paid in an industry tend to have the highest hourly rate - not necessarily the most amount of hours worked.

So, it would seem to me, that all professionals should be looking to move up the value-chain.

Clerky forces lawyers to make a choice. They can either fight for the 'automatable stuff' or they can move up the value-chain.


If you're not already familiar with him, there's a great professor at Harvard Law School, Ashish Nanda, who writes about exactly that - the choices service providers have to make as to where on the value chain they sit:

http://www.law.harvard.edu/faculty/directory/index.html?id=7...

Very smart guy - I think he was top of his class at IIT.


Never heard of him, but will look him up.

Thanks for the tip!




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