the networked economy finding opportunities in change michael shear pockets distributed workplace...
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The Networked EconomyThe Networked EconomyFinding Opportunities in ChangeFinding Opportunities in Change
Michael ShearMichael ShearPOCKETS Distributed Workplace Alternative, IncPOCKETS Distributed Workplace Alternative, Inc
Changing perception is Changing perception is sometimes a matter ofsometimes a matter of
The Forgotten Half of ChangeLuc De Brabandere - 2005
Changing the way we look at thingsChanging the way we look at things
Changing perception is Changing perception is sometimes a matter ofsometimes a matter of
There is no such thing as a hole in There is no such thing as a hole in youryour side of the boat side of the boat
2 Aspects of Today’s Economy2 Aspects of Today’s Economy
EnergyEnergy Information Information &&
KnowledgeKnowledge
Our Changing EconomyOur Changing Economy
1) The world economy is based increasingly on 1) The world economy is based increasingly on information. information.
2) The cost of computing and telecommunications is in 2) The cost of computing and telecommunications is in free fall. Wide swaths of economic activity can be free fall. Wide swaths of economic activity can be performed almost anywhere, at least in theory. performed almost anywhere, at least in theory.
3) Low-cost countries are turning out large numbers of 3) Low-cost countries are turning out large numbers of well-educated young people fully qualified to work in well-educated young people fully qualified to work in an information-based economy an information-based economy
Fortune – July 2005
Many Americans who thought outsourcing Many Americans who thought outsourcing only threatened factory workers and call-only threatened factory workers and call-center operators are about to learn center operators are about to learn otherwise. That is a giant development, otherwise. That is a giant development, because information-based services are because information-based services are the heart of the U.S. economythe heart of the U.S. economy. .
Fortune – July 2005
So in a world economy that threatens to So in a world economy that threatens to pull down American wages, the key to pull down American wages, the key to fighting back is maintaining technological fighting back is maintaining technological superiority—continually creating high-superiority—continually creating high-value new jobs that workers in the rest of value new jobs that workers in the rest of the world can’t do yet. the world can’t do yet.
Fortune – July 2005
America’s infotech infrastructure is no longer America’s infotech infrastructure is no longer world-class. We rank only 12th globally in world-class. We rank only 12th globally in broadband connections per inhabitants. broadband connections per inhabitants.
Fortune – July 2005
Access Drives Economic GrowthAccess Drives Economic Growth
Accessibility is a key ingredient of well-being Accessibility is a key ingredient of well-being and prosperity in contemporary societies.and prosperity in contemporary societies.
The adverse effects of transportation have a The adverse effects of transportation have a greater impact on the natural and human greater impact on the natural and human environment than two other important environment than two other important mechanisms for providing access: proximity mechanisms for providing access: proximity and telecommunications. and telecommunications.
AIR POLLUTION FROM GROUND TRANSPORTATION -United Nations - 2002
Proximity/Land Use Telecommunications
Transportation
Access Methods
“Accessibility is a key ingredient of well-being and prosperity in contemporary societies.”
AIR POLLUTION FROM GROUND TRANSPORTATION - 2002UN and World Bank
3 Methods of Access
Calvert-Henderson Quality of Life IndicatorsCopyright © 2003 by Calvert Group, Ltd. and Hazel Henderson
Primary Emphasis is on Transportation
Little Emphasis on Telecommunications
Shifting ParadigmsShifting Paradigms
Industrial WorkerIndustrial Worker
Deliverables are Deliverables are physical goodsphysical goods
Components of Components of production need to production need to be gathered at a be gathered at a physical locationphysical location
Depletion of time and Depletion of time and gasolinegasoline
Knowledge WorkerKnowledge Worker
Deliverables are Deliverables are information basedinformation based
Components of Components of production are assembled production are assembled in cyberspacein cyberspace
Uses time to ‘create’ Uses time to ‘create’ information value and information value and reduces use of gasolinereduces use of gasoline
Major ChallengesMajor ChallengesPressure for ChangePressure for Change
Growing congestion, pollution and sprawlGrowing congestion, pollution and sprawl Increasing cost & time of transportationIncreasing cost & time of transportation Pressure on standard of livingPressure on standard of living Greater emphasis on security and Greater emphasis on security and
business continuitybusiness continuity Globalization and shifting labor marketsGlobalization and shifting labor markets
Globalization and Services EconomyGlobalization and Services Economy
What Cities Need To Offer to Compete –What Cities Need To Offer to Compete –
Quality of lifeQuality of life
Competitive environment (Access to jobs and Competitive environment (Access to jobs and skilled workers)skilled workers)
Working smarter by leveraging infrastructureWorking smarter by leveraging infrastructure
Attract and retain high tech workersAttract and retain high tech workers
Establish a knowledge worker labor poolEstablish a knowledge worker labor pool
Quality Of Life and CongestionQuality Of Life and Congestion
Economic ConsequencesEconomic Consequences
Standard of LivingStandard of Living
Knowledge workers have choices where Knowledge workers have choices where to to livelive
ResponsesResponses Transportation Transportation
BasedBased
Single Occupied Single Occupied Vehicle Vehicle
Carpooling, vanpoolingCarpooling, vanpooling Public transportationPublic transportation FlextimeFlextime Walk, cycleWalk, cycle
Technology BasedTechnology Based
Telephone, faxTelephone, fax Voicemail, email, internetVoicemail, email, internet TeleconferencingTeleconferencing Telework, instant messagingTelework, instant messaging Telework centersTelework centers Video conferencingVideo conferencing Wireless mobilityWireless mobility Unified MessagingUnified Messaging Collaborative ToolsCollaborative Tools ‘‘Virtual Presence’Virtual Presence’
Current DirectionCurrent Direction Networked EconomyNetworked Economy
Increasing congestionIncreasing congestion Reduced congestion Reduced congestion (predictable patterns)(predictable patterns)
Growing reliance on gasGrowing reliance on gas Less gas dependentLess gas dependent
Diminishing personal timeDiminishing personal time Greater personal timeGreater personal time
Greater cost impact on Greater cost impact on lower wage earnerslower wage earners
More equitable access for More equitable access for lower wage earnerslower wage earners
Allocated Resources - Allocated Resources - $$ Allocated Resources - Allocated Resources - $$
Incremental, progressive Incremental, progressive (slow) improvement(slow) improvement
Leapfrog improvementLeapfrog improvement
U.S. INNOVATION:NICHOLAS DONOFRIOU.S. INNOVATION:NICHOLAS DONOFRIOExecutive Vice President, Innovation andExecutive Vice President, Innovation and
Technology IBM Corporation Technology IBM Corporation Congressional TestimonyCongressional Testimony
Committee on House ScienceCommittee on House Science
07-21-200507-21-2005
We must recognize innovation as a We must recognize innovation as a national priority. For the United States to national priority. For the United States to thrive in the thrive in the hyper- competitivehyper- competitive world world economy we must, with urgency, mobilize economy we must, with urgency, mobilize business, government, educators and business, government, educators and researchers to adopt innovation as a core researchers to adopt innovation as a core strategy to build the foundation for a 21strategy to build the foundation for a 21stst Century knowledge- based economy.Century knowledge- based economy.
We live in tumultuous times, yet We live in tumultuous times, yet Americans know instinctively that our way Americans know instinctively that our way forward is not to retreat or to re-trench. forward is not to retreat or to re-trench. The way forward is to become more open, The way forward is to become more open, more experimental and to embrace the more experimental and to embrace the unknown. We cannot turn inward, nor can unknown. We cannot turn inward, nor can we allow our institutions to become overly we allow our institutions to become overly centralized, calcified and risk averse.centralized, calcified and risk averse.
Council on CompetitivenessNational Innovation InitiativeNovember 2004
ConnectivityConnectivity
Cable Wireless
Wire Line
FTTH
Satellite
CellularBPL
e-Governmente-Commerce
Distance Learning Telemedicine
Emergency ServicesRemote Work
Consumer ServicesRadio
andand Content Content
Cable Wireless
Wire Line
FTTH
Satellite
CellularBPL
Radio
e-Governmente-Commerce
Distance Learning Telemedicine
Emergency ServicesRemote Work
Consumer Services
Communications ReformCommunications ReformLegislative ActivityLegislative Activity
House Energy and Commerce CommitteeHouse Energy and Commerce Committee ““Discussion Draft”Discussion Draft”
Broadband Investment & Consumer Choice Act Broadband Investment & Consumer Choice Act of 2005of 2005 S.1504S.1504
Effort to replace the Telecommunications Act of 1996and update the original Communications Act of 1934
Distributed WorkplaceDistributed Workplace
A stepping stone in the A stepping stone in the
‘‘network economy’network economy’
Building a Stronger America with Building a Stronger America with Innovation and TechnologyInnovation and Technology
POCKETS Distributed WorkplacePOCKETS Distributed Workplace
Distributed workplace is the Distributed workplace is the combined use of a broad range combined use of a broad range of information technologies of information technologies and strategic use of real estate and strategic use of real estate for sustainable and secure for sustainable and secure economic and social advantage.economic and social advantage.
Evolution of IT SolutionsEvolution of IT Solutionsfor Remote Workersfor Remote Workers
Telework (Home Based) – Early 1970’sTelework (Home Based) – Early 1970’s
Telework Centers (Modest Real Estate) – Telework Centers (Modest Real Estate) – Early 1990’s Early 1990’s
Distributed Workplace (Strategic use of Distributed Workplace (Strategic use of Real Estate)Real Estate)
4-5 Locations
5-8 TeleSuites/ Location
20-40 People /TeleSuite
25-30 Seat Distributed Call Center/location
Broadband LAN/WAN Voice/Data/Video Connectivity
End User Systems & Software Support
$6,500 – $7,500 Investment/person
4-5 Locations
5-8 TeleSuites/ Location
20-40 People /TeleSuite
25-30 Seat Distributed Call Center/location
Broadband LAN/WAN Voice/Data/Video Connectivity
End User Systems & Software Support
$6,500 – $7,500 Investment/person
Distributed WorkplaceDistributed Workplace
FederalGovernment
FederalGovernment
Enterprise Tenant
Enterprise Tenant
Web Enabled Call Center
Web Enabled Call Center
State & LocalGovernment
Pilot ParametersPilot Parameters
Tech Center&
Education
Tech Center&
Education
Work Location/Method Benefit ComparisonWork Location/Method Benefit ComparisonFactorsFactors Single Single
LocationLocationTeleworkTelework Distributed Distributed
WorkplaceWorkplace
ProductivityProductivity 00 11 11
Attraction & RetentionAttraction & Retention 00 11 11
Lower absenteeismLower absenteeism 00 11 11
Reduced stressReduced stress 00 11 11
Employee satisfactionEmployee satisfaction 00 ½½ 11
Environmental impactEnvironmental impact 00 ½½ 11
Security-people, systems, dataSecurity-people, systems, data 11 00 11
Time & money savings to employeeTime & money savings to employee 00 ½½ 11
Business continuityBusiness continuity 00 ½½ 11
Management OversightManagement Oversight 11 ½½ 11
Family emergencies, inclement Family emergencies, inclement weather, work-life balanceweather, work-life balance
00 ½½ 11
Converting Gasoline Dollars into Local Converting Gasoline Dollars into Local Economy DollarsEconomy Dollars
AssumptionsTotal # of miles (to and from work) each day 56 miles/day 10 miles/day 46 miles/dayNumber of days/week you drive to work 5 days/week 5 days/week 5 days/week
280 miles/week 50 miles/week 230 miles/week13,496 miles/year 2,410 miles/year 11,086 miles/year
18.5 miles per gallon 729.51 gallons/year 130.27 gallons/year 599.24 gallons/year$2.89 / Gallon $2,172.29 /year $376.48 /year $1,795.81 /year
2 weeks vacation3 personal days6 holidays
241 workdays/year45 average # minutes each way 90 minutes/day 30 minutes/day 60 minutes/day
$64 Congestion excess fuel cost/yr 361.50 hours/year 120.50 hours/year 241.00 hours/year
5 locations300 people per location
1500 distributed knowledge workers16,629,000 Vehicle Miles Reduced/year
898,865 gallons/year$2,693,719 Gasoline Savings to Employees/year
Summmary Calculations
Pilot Program Individual Savings Calculator
Distributed Workplace Direct Savings/PersonCentralized location
Where is the ICT?Where is the ICT?
SustainabilitySustainability
GrowthGrowth
Balanced use of ResourcesBalanced use of Resources
ExpertiseExpertise
AssessmentAssessment