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

info@Calvert-Henderson.com

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

The Networked EconomyThe Networked EconomyFinding Opportunities in ChangeFinding Opportunities in Change

Michael ShearMichael ShearPOCKETS Distributed Workplace Alternative, IncPOCKETS Distributed Workplace Alternative, Inc