Modernizing the eDiscovery Process to Reduce Risk and Enable Defensible Disposal

1. Modernizing the eDiscovery Process to Reduce Risk and Enable Defensible Disposal FOR INTERNAL USE ONLY

2. Agenda • Information Growth and The Challenges to Legal • Modernizing the eDiscovery Process with IBM’s Solution to Reduce Risk and Cost • Only IBM Has the Technology, Strategy and Expertise to Create Systematic Linkages between Legal, RIM, the Business and IT • Instrumentation and Modernization of the eDiscovery process connects Legal to RIM, the Business and IT to Enable Defensible Disposal

3. The Growth of Information is Overwhelming IT’s Abilityto Dispose of Information Consistently and Defensibly Storage: Direct Procurement Costs in Millions Governance processes have not matured to reflect volume, specifically how to: • Define and execute legal holds and data collection (A-F) • Apply retention schedules to all information (G,H) • Align storage and manage information based on specific legal obligations and business value [I] • Provision, decommission and dispose of data [L,M,N] • This leads to excess data and cost as well as operational challenges that in turn contribute to risk: • Difficulty disposing of unnecessary data • Complexity in applying legal holds • Inefficiencies in data management and governance High Risks & Mitigation Burden 16 governance processes impacted by high data volume such as managing a global taxonomy, creating departmental inventories, applying holds to systems, etc.

4. At 35% Growth, Storage Cost Trend % of IT Budget 22% 19% 16% 14% 10% PBs Legal Costs Rise with Information Volume Growth The Amount of Discoverable Evidence Increases as Data Volume Rises, Driving Up Litigation Costs and Risks Rising Volume and Cost At Odds with CIO Goal to Reduce Costs While Increasing Value to Enterprise Data Collection Trend GBs “Discovery phase can represent over 50 percent of the total litigation costs, with e-discovery consuming more than half of that budget” -- Protiviti Inc. "Data storage is the single fastest-growing component of a technology organization's spend, because of the insatiable appetite our customers have for data and information" – John Fiore, CIO Bank of New York Mellon Bank Systems & Technology, Oct 2011 Accumulative – compounding quantity and costs. Summit 2012 4

5. Both Legal and IT Benefit from Less Data – Two Choke Points to Lower Volume and Cost Pain Point Flow of Data 100% of data Excess Data is Source of IT Cost Retain, Archive, Dispose in Course of Business Retain, Archive and Dispose of Information Based on Business and Regulatory Requirements Primary Choke Point 100% of cases eDiscovery Process Management Apply and Manage Legal Holds on Potentially Relevant Information Excess Data is Source of Legal Risk 35% of cases Evidence Management Collect and Analyze Information That May Be Evidence Excess Data is Source of Technical Complexity 50% of collected documents Legal Review Review and Produce Evidence to Adversaries Secondary Choke Point Excess Data is Source of Legal Cost

6. The Form of The Current Legal Hold Process is Organized Around Custodians and Not Information Tracking laws on a spreadsheet DUTY VALUE DUTY Schedules documented by record class Legal holds defined by employees involved Covers regulated information and may not encompass business value – only 20% of all information Web site for employees and IT, reliance on employees to manage records No linkage to the system with the actual information Insufficient or un-auditable location for electronic records Department Laws & Regs Matter Thousands of legal matters a year Thousands employees subject to hold, but relying on IT to preserve data Notices sent to employees directly; records and IT not informed High legal (review) cost a function of total information volume ASSET Retention Schedule Hold Systems Information IT has most of the data organized by asset code -- but no visibility to legal duties or business value 800% or more data growth in 5 years – but budget needs to come down Unaware that legal risks and responsibilities have been shifted to it No physical link between legal obligations (holds), regulatory requirements (records, privacy), business value and servers or information 6

7. Legal Processes Under Pressure And The Risks Exposed

8. Agenda • Information Growth and The Challenges to Legal • Modernizing the eDiscovery process to reduce risk and cost • Only IBM Has the Technology, Strategy and Expertise to Create Systematic Linkages between Legal, RIM, the Business and IT • Instrumentation and Modernization of the eDiscovery process connects the silos between Legal, RIM, the Business and IT to Enable Defensible Disposal

9. Rigorous, Efficient eDiscovery • Issue and automate legal holds with precision across data sources • Collect, cull and assess evidence and control costs • Manage custodians, collections and data source obligations in concert with IT

10. Capabilities for Legal to Define Holds by People, Records, and Data Involved to Hold, Collect & Produce More Effectively & Efficiently • IT • Optimize Information Volume • Dispose and retire unnecessary data • Optimize storage • Lower total information cost

11. Overview of the eDiscovery Solution and Process Managing Legal Holds Evidence Collection Evidence Culling and Export • Identify people (current and past), and systems with potentially relevant information • Notify, Track, and Apply Hold • Notify custodians about the hold – automatically track responses, issue reminders and escalate • Apply holds by automatically passing instructions to systems and IT • Track process from custodians, systems, and IT • Interview custodians to learn relevant facts, new custodians or sources of data • Coordinate collection through • Custodians directly for responsive information • IT through specific instructions (people and locations) • Systems directly bypassing IT through a direct hold-in-place to data source • Analyze and remove irrelevant data by • Analytical tools with aggregate views and analysis • Detecting unusual patterns • Flagging and tagging data Assess Case Facts and Costs • View matters facts through the process • Make cost-aware legal decisions Report and Audit Process • Defend decisions made and all interactions with custodians, stewards, and record coordinators • Produce an audit trail for process

12. Quickly & Reliably Identify Both People & Data in Hold Scope, Efficiently Manage Over Course of Matter Identify people and systems with potentially relevant information: Browse the organization tree, select one or more departments and automatically get a list of employees, data sources, information and records to scope obligations more reliably and specifically. Select and deselect to refine the scope. Add or remove both custodians and data sources over time. Look at the organization and employee roles for a period in the past to get the most accurate list of custodians. The legal “data map”. Outcome: Holds parameters reflect both the people [A] and the information [B] subject to the hold to improve reliability, execution, and prevent spoliation [M, N, D].

13. Single-Click Hold Notice Creation, Nuanced Escalations Reduce Effort & Increase Control Notify employees about the obligation: Create notices from templates; simply add matter-specific elements. Route to attorneys for review. Use confirmations with automated response tracking to reduce risk and effort. Automate tracking, reminders and escalations: Set escalation policies for 1st, 2nd and subsequent non-responses. Automatically apply different subject and body text for escalations to managers. Outcome: Easily inform, remind and confirm duties with employees, managers and IT to prevent spoliation [A, B, C] and automatically capture a record of diligent, affirmative action [D].

14. Use and Automate Precise Hold Instructions to Enable IT Response, Reduce Enterprise Impact Automatically place holds on information: Structured hold plans make it easy for IT to execute precise holds on disparate data sources, or for systems to apply holds automatically on email, files, records and structured data. Track exceptions to simplify follow-up: Audit trails are automatically generated and captured to document that holds were executed. Outcome: Holds are systematically placed on data as soon as legal determines the obligation [A, B, C]. IT can more efficiently manage data not on hold [M, N] to eliminate excess data and risk.

15. Interview Custodians Online About Data Habits & Employee Involvement to Lower Risk, Outside Counsel Fees Gather facts from custodians to adjust scope and learn data storage habits: Set up standard questions or easily create matter-specific questions, including mandatory and conditional elements. Responses can trigger action items automatically to ensure follow through but minimize burden. Track responses and share with IT for a closed-loop process. Responses are collated automatically. Sort by custodian, action pending, or question and specific answers to save time and reduce risk of oversight. Add comments as needed. Outcome: Custodians and data sources are identified and legal can more easily identify and execute required follow through. [A, B, D, E, G]

16. Automatically Capture the Custodian Response Record, Record Verbal Confirmations for Completeness Automatically track responses: Set default reminder intervals for notices, use a single global reminder to custodians across matters or define reminders for a specific matter. The response record is automatically captured for each. Manage exceptions: Manage non-responders through email and dashboard alerts and automated escalations. Capture and record verbal confirmations on behalf of executives to complete the custodian hold record. Outcome: Legal can more easily manage the compliance record, which is robust and ready [G]. Custodians are well informed of their obligations.[C]

17. Quickly Understand Timeline & Essence of Custodian & Business Information Analyze preserved content to inform case strategy The visual and interactive timeline helps activity quickly to better understand issues. Simplify assessment through automatically produced phrases and relationships: Find relevant activity quickly to better understand issues – without waiting to or spending on collecting, processing and reviewing the data. Automatically extracted phrases in the content show the essence of the information. Outcome: Custodians are not overlooked in the hold scope [A] and data is not under or over preserved [B, M, N].

18. Understand the People & Companies Potentially Involved Very Early to Improve Strategy View internal and external conversation to assess culpability: Quickly get a view of the people, sender and recipient domains, and companies involved. Combine filters to quickly include and eliminate custodians and data – such as people from certain locations or other combination. Select, view, and page through the information in the time or context slice. Outcome: Risk of oversight is minimized [A,B], facts are understood earlier in the dispute [F]. Legal can define scope with greater precision and enable the enterprise to manage data not on hold more efficiently [M, N].

19. Costs Are Automatically & ContinuallyForecasted as Scope and Facts Change to Avoid Surprises, Improve Negotiating Power Assess current costs: Make better decisions with insight on both culpability and cost with automatic, continuous forecasts. Analyze real-time requests and affects to costs: Run scenarios with outside counsel to control the scope of collection and production and substantiate burden claims. Identify where costs will affect the budget to avoid surprises: Forecast when costs will be incurred and do better financial planning with internal clients. Outcome: Solution times and values are optimized and always in balance with the cost of the dispute [F].

20. Initiate, Automate and More Easily Coordinate Collections from Disparate Data Sources Configure templates to coordinate request and fulfillment between Legal and IT: Pre-define criteria with IT across sources so legal simply “fills in the blanks” for IT or automated data collection. Collect directly from systems Send instructions to repositories, and/or pass preservation instructions to third party eDiscovery tools. Outcome: Higher reliability and control, less effort for legal, collectors, and IT [E, F].

21. Initiate, Automate and More Easily Coordinate Collections from Disparate Data Sources and Custodians Define precise collection instructions by person and system: Define and communicate collection instructions. Collection activities are automatically tracked, logged, and transparent for attorneys, collectors and appropriate IT staff. Simplify logging and record keeping: Legal staff and collectors share a workbook with instructions, custodians, and status. Eliminate redundant data keeping Gather information from multiple sources: Gather relevant information directly from custodians where appropriate. Outcome: Higher reliability and control, less effort for legal, collectors, and IT [E, F].

22. Hone In On Issues and Remove Irrelevant Information. Limit the Data Sent To Outside Counsel. Cull evidence through technology assisted review: Easily find and look at the information– for example: …a spike in “confidential information” exchanged among custodians. … number of, and frequency of conversations between specific custodians. …words and phrases in specific conversations and frequency by custodian. Outcome: Legal can quickly get to relevant facts through multiple analytical views. Oversight is reduced F].

23. Send Less Data to Outside Counsel – Eliminate Irrelevant Material, Flag Response Items Flag information to highlight relevant data: Page through the actual items quickly. Flag content as relevant, privileged, confidential, irrelevant, etc. and add internal comments. Outcome: Processing, hosting and review fees are lower because unnecessary information is eliminated [G,F].

24. Export Refined Data Set to Counsel for Review After In-House First Pass & Analysis to Lower Cost, Improve Decision Making Export content in standard formats to ease review with vendors and outside counsel: Files are exported in Native, EDRM XML, HTML, PDF format with full message/attachment integrity, precise queries used, and complete chain of custody record. Eliminate unnecessary costs and review by pre-culling non-responsive information. Outcome: Legal can define scope with greater precision and enable the enterprise to manage data not on hold more efficiently [A, B, E, F].

25. Easily Monitor All Discovery Across Many Matters to Reduce Errors, Oversight that Drive Risk, Cost Report on matter statistics: Attorneys can easily track hold, interview and collection status through on-line dashboards Manage by exception: Zoom in on the exceptions that need attention. Define thresholds for exceptions to manage to policy automatically and mitigate risk. Outcome: Risk is monitored, managed and mitigated with greater precision and less effort [A, B, D].

26. Agenda • Information Growth and The Challenges to Legal • Modernizing the eDiscovery process to reduce risk and cost • Only IBM Has the Technology, Strategy and Expertise to Create Systematic Linkages between Legal, RIM, the Business and IT • Instrumentation and Modernization of the eDiscovery process connects Legal to RIM, the Business and IT to Enable Defensible Disposal

27. Only IBMEnable IT to See Obligations by System and Across the Portfolio Enable IT to Manage Data Sources by Obligation Enable RIM and the Business to know the duties for information Data-source specific hold and collection procedures are automatically created for IT, tying obligations and value to assets. Outcome: IT can manage information aware of obligations and value M, N].

28. Only IBMEnable Records And the Business to know the hold obligations affecting information they manage Enable IT to Manage Data Sources by Obligation Enable RIM and the Business to know the duties for information Data-source specific hold and collection procedures are automatically created for IT, tying obligations and value to assets. Outcome: Legal can extend holds to information [B], Records, the Business and IT with precise instructions about what needs to be kept.

29. Only IBM Provides Rigorous Compliance, Value-Based Archiving & Defensible Disposal Strategy, Software & Services

30. Agenda • Information Growth and The Challenges to Legal • Modernizing the eDiscovery process to reduce risk and cost • Only IBM Has the Technology, Strategy and Expertise to Create Systematic Linkages between Legal, RIM, the Business and IT • Instrumentation and Modernization of the eDiscovery process connects Legal to RIM, the Business and IT to Enable Defensible Disposal

31. Instrumentation and Modernization of the eDiscovery Process Connects Legal to RIM, the Business and IT to Enable Defensible Disposal Information Lifecycle Governance Systematically Links Stakeholders, Processes 31

32. Next Steps: We Can Help You Validate The Potential Savings and How to Achieve Them

33. Learn More & Join the ConversationCompliance, Governance and Oversight Council Join the CGOC! • Forum of over 1600 corporate legal, IT, records and information management professionals. CGOC conducts primary research, has dedicated working groups on challenging topics, and hosts meetings throughout the U.S. and Europe where practice leaders convene to discuss discovery, retention, privacy and governance. • Mission: To provide executives the opportunity to benchmark and exchange case studies; its practice groups focus on discreet areas in preservation, retention, and information governance to deliver work products that help our members best approach the challenges in maintaining best-in-class programs. Online and in person events Regional and International summits Published materials

34. Additional Sessions • Improving Information Economics with Information Lifecycle Governance • Information Governance Programs - launching a high-impact defensible disposal program in your enterprise • Modernizing eDiscovery and Hold Process - Reduce risks, increase transparency • Modernizing Retention Program - Express Information Value • Value-Based Archiving and Defensible Disposal - Dispose rather than store unnecessary data