Leveraging Technology Success from eDiscovery to Healthcare

How Lucas Mageno conquered the litigation services and technology industry and now has his sights set on healthcare

LucasMagenoSuccessAs the founder of iDiscover Global and Capitol Digital Document SolutionsLucas Mageno has had a long term and visible impact on shaping the litigation technology and services industry in the United States.  However, you may be surprised to learn that his journey to reach the top of his industry rivals that of many unsuspecting heroes from famous literature.

In the first article published on January 15, 2013, titled, “How One Man Conquered the Litigation Services and Technology Industry: Part I,” I discussed Lucas’s journey from starting a car washing business at the age of 8 in Southern California to managing a rock band called Badger to running a furniture business to finally starting his career in the litigation services and technology industry.

In the second article published on January 22, 2013, titled, “How One Man Conquered the Litigation Services and Technology Industry: Part II, I discussed Lucas’s journey during the rapid expansion of Capitol Digital Document Solutions and his emergence as an industry leader in the eDiscovery software business with iDiscover Global and Invariant.

In this third article, I will finish the story of Lucas’s journey with Invariant and iDiscover Global and discuss his latest venture into building mobile applications for the healthcare, education, government and legal markets.

As indicated in Part II of this series, Lucas was concerned that Invariant would never be able to reach its full potential without a more robust distribution model that what iDiscover Global could provide.

On June 14, 2011, Lucas signed a software purchase agreement with kCura Corporation to sell the rights to Invariant. A major component of the purchase was a consulting agreement with Robert Simpson to integrate Invariant into kCura software and provide additional software engineering and support to kCura for a period of 24 months after such integration was complete.  Another interesting twist to the terms and conditions of this agreement was kCura agreeing to allow iDiscover Global to continue development of the Invariant-based Early Case Assessment (ECA) platform Case Light.

Although the exact terms of the sale are protected under a non-disclosure agreement (NDA) between the parties, several anonymous sources with general information about the sale have confirmed that kCura paid iDiscover Global between $2 million and $3 million for the rights to Invariant.  How much of that went to Lucas and how much went to his investors and employees is also unknown.  However, if history is any indication of Lucas’ generosity, I would have to assume that everyone involved with iDiscover Global at the time of the sale were well compensated.

In retrospect, kCura’s purchase of Invariant will prove to be a brilliant move by Andrew Sieja, kCura’s CEO, as it enables Relativity to expand support much further to the left side of the eDiscovery lifecycle.  Coupled with kCura’s open architecture and application development platform, kCura is becoming a major player in the quest to provide the enterprise with support the entire eDiscovery lifecycle.

In early 2012, Lucas also sold iDiscover Global to a holding company that owns Nationwide Legal, LLC.  With over 70 employees now providing eDiscovery and litigation services under the iDiscover Global banner, Nationwide Legal is the largest and most technologically advanced legal support / attorney service provider in America.

After completing the sale of Invariant to kCura and iDiscover Global to a holding company that also owns Nationwide Legal, LLC, Lucas and long time partner Dave Wilkinson started Manke Software refocusing their considerable experience and expertise from managing big data in the $4 billion eDiscovery market to addressing the needs of the quickly evolving $40 billion healthcare market.

“Having spent the last 5 years successfully figuring out how to process data in 122 different languages and 400 different file formats as required by the global eDiscovery market, we believe that we are more than qualified to tackle the much less complex requirements of big data in the healthcare market,” stated Lucas.  “What’s exciting about this new venture is the financial fact that the healthcare market is 10 times the size of the eDiscovery market and the potential to hit another homerun is extremely high,” continued Lucas.

Joining Lucas in this new venture is Chris Lott, the technology whiz kid that developed Drawing Pad, one of the top 6 iPad apps of all time.  Chris has also written applications for PBS Kids and a Digital Bulletin Board for Whole Foods Market.  Chris has a B.S. in Computer Science with a focus on embedded systems from California State University Sacramento, an A.S. Computer Science from Sierra College, an A.S. Computer Science in Embedded Systems form Sierra College and an A.A. Liberal Arts from Sierra College.

Manke Software’s mission is actually well beyond just healthcare as they plan to develop next generation mobile applications for the legal, healthcare, education and government markets.  One of their first products is “DocTracker” an iPad based application designed to help health care professionals track unresolved issues with electronic medical records.

Kobi Sonoyama, one of Manke’s first customers, is an Administrative Resident, Accreditation Analyst and Clinical Supervisor with Mercury San Juan Medical Center in Sacramento.  Kobi’s job is to identify opportunities to streamline operations, increase productivity and reduce the overall cost of healthcare through the use of technology and best practices.  Manke built DocTracker to replace written notes and Excel spreadsheets that Kobi and other administrative personnel were using to track, identify trends and resolve issues such as doctors having trouble ordering medications.  DocTrack utilizes a simple server backend and a sophisticated iPad user interface to enable Kobi and his team to easily keep track of issues and develop corrective action all with just a few simple clicks.

Mercury San Juan Medical Center is a member of the Dignity Health Network and can increase revenues and profits if it’s individual members can to refer patients within the network. Previous systems to support this referral were cumbersome and inflexible.  Manke software designed a new mobile iPad-based application in less than 6 months called “DocReferral” that integrates data from several existing backend systems. “What I’d experienced with other vendors, larger producers of IT, was frustration. They already had a template and product, and if it didn’t work right, they wanted additional consulting fees to fix it,” stated Kobi. “With Lucas leading the discussions, Manke has developed a solution that is incredibly flexible and will be able to scale with the growth of our network without any additional consulting fees to make it work,” continued Kobi.

Over 350 Dignity Health medical personnel are currently testing Manke products in the Sacramento area with plan to roll it out across the entire Dignity Health Network later in 2013.  “I applaud the innovation of Manke’s product and welcome anything that can help us be more efficient in the work we do to take care of the community,” said Sigrid Owyang, Executive Director with Catholic Healthcare West another member of the Dignity Health network.

Manke has also developed “mForms” a very flexible application that can quickly and easily create iPad-based application from most any editor or from Adobe Acrobat PDF forms to collect and store information in a variety of backend databases.  Manke has already used mForms to create a mobile collection solution from existing PDF forms for a California government entity that monitors toxic waste.

Lucas has great plans for Manke Software and given his past success in litigation services and technology, I would bet that he is going to do it again.

Lucas Mageno has definitely been on a thrilling journey.  From humble beginnings running a simple car wash in Southern California at the age of 8 to building and selling one of the most successful litigation services companies in the industry and then building and selling a very successful eDiscovery software product, Lucas has proven time and time again that he know how to build successful businesses.  He contends that the keys “to his success” is having the right idea at the right time, finding the right people to help grow the business, paying his people for their success and knowing when to sell.  I have no doubt that all of “these keys to his success” are factors in his grand plan.  However, I think that the real key is Lucas’ sense of adventure, willingness to take an unknown path when others are not, willingness to work hard, encourage others to follow and above all his commitment to having fun on his journey.

Lucas is certainly not done and I would suspect that we will be hearing about his conquests with his latest venture before too long.

About Charles Skamser
Charles Skamser is an internationally recognized technology sales, marketing and product management leader with over 25 years of experience in Information Governance, eDiscovery, Machine Learning, Computer Assisted Analytics, Cloud Computing, Big Data Analytics, IT Automation and ITOA. Charles is the founder and Senior Analyst for eDiscovery Solutions Group, a global provider of information management consulting, market intelligence and advisory services specializing in information governance, eDiscovery, Big Data analytics and cloud computing solutions. Previously, Charles served in various executive roles with disruptive technology start ups and well known industry technology providers. Charles is a prolific author and a regular speaker on the technology that the Global 2000 require to manage the accelerating increase in Electronically Stored Information (ESI). Charles holds a BA in Political Science and Economics from Macalester College.