Workspace,reworked

WORKSPACE,
REWORKED
RIDE THE WAVE OF TECH DRIVEN
CHANGE

DATA DEFINED
WORKSPACE
The transformation of work

Introduction
Technology is advancing at a fast-
pace bringing drastic social, cultural
and organisational change. This
advance is now fundamentally
altering how and where we work.
Increasing access to and use of a
variety of networked devices,
converging with the improved
speed and reliability of Internet
connections is enabling new ways
of working and changing how we
behave at work.
As technology increasingly defines
how all businesses operate and are
structured, it is influencing how real
estate is designed and managed,
and how workers use their
workspace.
Over the following pages we
explore how this transformation is
taking shape, looking ahead to
2025 and 2030.
Data in the driving seat
The data explosion – the ability to gather it,
analyse it and store it in ever greater volumes –
will continue to impact many areas of life. The
workplace is not immune; data will drive the
management of real estate space, boosting
worker productivity and making buildings
more sustainable.
The increased knowledge about how
the workplace functions will drive how
spaces are managed and used. While smart
buildings have existed for some time, the tasks
that are managed 'smartly' are often limited to
operational tasks such as controlling
lighting and access.
The next generation of smart buildings use
Internet networks to create management
systems that are similar to a computer
operating system. Internet of Things
(IoT) sensors can be integrated, while wall-
mounted displays, and even devices could be
managed through the system.
Beyond a building's facilities, the
ubiquitous adoption of devices, such as
smartphones, will facilitate a smarter approach
to workforce management and influence
worker behaviour. Retailers are already using
sensors and devices to monitor footfall; the
same technology is now working its way into
offices.
Bank of America recently used

sociometric badges – recording personal data
during the working day – to identify why some
call centre employees were more productive.
Realising that the most productive employees
took breaks together, break times were
rescheduled, boosting productivity by 10%.
(Sociometric Solutions: Creating Better Workplaces and Organizations Through
Social Sensor Data, HBS. https://openforum.hbs.org/challenge/understand-
digitaltransformation-of-business/data/sociometric-solutions-creatingbetter-
workplaces-and-organizations-through-social-sensor-data)
Industries transformed
While data gathering and analysis will
transform workplace management, the
widespread adoption of greater
technology is transforming how organisations
are set-up and staffed, and how they use real
estate space.
It is no secret that technology is a powerful
disruptive force, creating new business models
and providing the means for start-ups
to displace incumbent businesses.
The pervasive nature of tech growth, however, is
making all businesses technology companies.
Today's cars are powered by software
containing 100 million lines of code and
controlled with sensors, processing large
volumes of data. Investment bank, Goldman
Sachs employs more people in its technology
division than any other part of the company.
Goldman Puts Its Muscle Into Tech Push, Financial Times, December 2015.
https://next.ft.com/content/f436ae7a-9d3b-11e5-8ce1-
f6219b685d74#axzz3usGNuWKe
Products and services are often far quicker to
bring to market today, while industries are
increasingly formed around 'stacks': a select
number of larger firms provide a base or
platform on which smaller businesses develop
their products or service. Sweeping cultural and
social shifts, and an appetite for flexibility, is
driving the development of these connections.
It is how Apple and Google's operating
platforms work: the base of the stack on which
multiple companies develop apps.
New workers and expectations
Advancements in the field of artificial
intelligence will increasingly automate many
tasks, creating a different approach to how
workspaces are managed and splitting process-
driven activities from more creative, design and
development roles. This will create different
types of workers and new jobs.
Carlo Ratti Associati's Office 3.0 design, Agnelli
Foundation, Turin
At the same time, the next generation of
workers will be digital dependents, those who
have grown up playing games on the family
iPad and own smartphones. Attracting talent
from this pool of workers will push workplace
user experience up the priority list for

organisations. Higher-spec core locations will
be used to attract individuals with the right
skills and expertise. Demand for software
engineers and data analysts already outstrips
supply, with innovative work locations used to
attract the right people.
The convergence of these factors will create
organisational structures made up of
autonomous workers (machines), a smaller core
workforce and contingent workers (freelance
specialists).
Next, we explore how these changes will develop
over 15 years from today.
Today
The first truly smart buildings are up and
running. Real-time sensors in staff badges track
building occupancy, mobile devices are used to
adjust lighting and temperature settings,
while workers hold a meeting in one of the
outdoor areas found on every floor. This is the
scene at the Majunga Tower in Paris where the
workspace has been reinvented, with user
experience in mind.
Majunga Tower Getty
In 2013, auditor and consultancy PwC showed
how older buildings can be transformed to be
future ready when it refurbished its
Embankment Place HQ in London to become
the most efficient and environmentally
friendly office building in the UK at the time.
PWC creates most sustainable building in the. The
Guardian.2014. world https://www.theguardian.com/sustainable-business/
sustainability-case-studies-pwc-one-embankment-place
At a smart buildings project in Vienna,
engineering and manufacturing firm Siemens
is using data to manage the energy use of a
building using electric vehicles. The building's
management system takes energy from the
cars, when needed, while ensuring they are fully
charged by the end of the working day.
Reducing energy consumption in manufacturing.
Siemans. https://www.siemens.co.uk/en/insights/energy-consumption-in-
manufacturing-with-pilkington.htm
The third wave
Web 2.0. Device sophistication and use has
rocketed over the last decade, with 50% of the
global adult population using a smartphone.
Greater connectivity, cloud computing and
device adoption have already created great
social and cultural changes, impacting business
operations and work.
Meanwhile, recent developments shed light on
how the next wave of technology will sweep

through the world of work. Augmented reality
(VR and AR) has started to be tentatively used
in the workplace. Cisco and Microsoft have
created VR and AR solutions for meetings.
Artificial intelligence – the technology that will
facilitate more autonomous workers – has
already taken steps forward in its use in the
workplace. A headline-grabbing success came
in 2016 when Google's Deepmind AlphaGo AI
technology defeated world champion Lee
Sedol at the game Go.
Share on Google+Share on FacebookShare on LinkShare on T
2025
"The combination of a
changing workforce and
greater connectivity will
enable the shift to real estate
portfolios built around core
hubs, made up of fewer
locations. "
By 2025, the third wave of technological
progress will be well under way. With billions of
devices being used, there is better connectivity
and more data is being processed than ever.
The exponential advances in computing
power are creating a digital ecosystem,
transforming products, services and business
models – and as a result how companies
operate.
By 2025, at least 80% of the world's adults will
own a smartphone; the rise in devices,
integrated in the workplace, will come with the
roll-out of 5G speed networks that could run
over Wi-Fi. Connectivity will become a key
driver of location choices for businesses.
What does it mean for real
estate?
Smart buildings will become mainstream, with
Internet of Things (IoT) sensors used to manage
productivty, user experience and sustainability.
The advancements in the application and use
of Artificial Intelligence (AI), Augmented and
Virtual Reality (AR & VR) will mean
intelligent machines are part of working life for
many people, while collaborative working will
be facilitated across locations in new ways.
The change in the workforce will be driven by
the ability to manage space more flexibly and a
shift to a model where staff headcounts start to
be reduced, with smaller core teams managed
alongside contingent and autonomous workers.
The combination of a changing workforce and
greater connectivity will enable the shift to real
estate portfolios buillt around core hubs, made

up of fewer locations. These hubs will reinforce
culture, instil brand and encourage interaction
and collaboration. Around these hubs will be
networks of flexible space for staff to work from
and to host the growing contingent workforce.
2030
"In most instances AI will be
used as a tool to supplement
human work, rather than as a
replacement for human
workers"
Harry Armstrong, Senior Researcher,
Futures Team, Nesta
Augmented reality (AR) is used to manage your
digital life when you arrive at work. Access is
controlled through sensors and you can select
your workstation via your device on the way
in. A morning meeting is conducted between a
flexible co-working space in London to a core
headquarters location in Chennai, using virtual
reality (VR) headsets. That same afternoon,
you're setting-up the office artificial intelligence
(AI) on a new set of tasks. Welcome to 2030.
New world of work
Q&A with Harry Armstrong, Senior Researcher,
Technology Futures at Nesta
Q. How quickly is artificial intelligence across
workplaces expected to develop?
There is a wide variety of ways artificial
intelligence (AI) will impact the workplace, and
it is important to realise that in most instances
it will be used as a tool to supplement human
work rather than as a replacement for human
workers. AI personal assistants, image
recognition and algorithm-based decision
making are already changing many areas from
business to government. It may take a while
before aspects of AI reach the workplace
because of current technology limitations and
issues of trust and understanding.
Q. What kind of industries are likely to be most
affected?
It is difficult to say one industry over another is
going to be more affected as the tasks AI tools
can help with, or do, are applicable to all
industries in some way. Levels of adoption are
likely to decide impact as much as what the
technology can do.
Q. How will this affect the skills needed for
human workers?
It is important to remember that the
introduction of AI, or automation more broadly,
is only one trend which will change the skills
needed in the future. In many cases it will not
be the most important and may in any case be
very difficult to tease apart from the other
changes that are happening – think macro
trends like globalisation, ageing or climate
change.
This is the reason Nesta are running the
Employment in 2030 project with Pearson, and
Michael Osborne from the Oxford Martin
School, to explore what future skills might be
needed through a more holistic approach

rather than just considering the impact of AI
and automation.
estate?
The pace of change to 2030 will mean working
life for many people looks quite different in 15
years time. Smarter buildings that are
utilising data intelligence will be designed
with modular fit-outs, meaning facilities can be
redesigned at lower expense to more zonal and
flexible spaces, based on greater understanding
of workspace use. Outsourcing to contingent
workers is at a high level in many industries,
making a core and flexible workspace strategy
central to real estate.
How many processes could
be automated in your sector?
10%
25%
40%
See results

CHANGING SPACES
More flexible real estate
in new locations

Introduction
As the march of tech advancement
revolutionises working life, the
places we work will adapt and
evolve.
Work space will become a more
liquid concept. Core locations will
be easier to adapt and sited in
strategic centres.
Flexible space, such as co-working
offices, will be used tactically as the
structure of the workforce moves to
a higher number of freelancers.
As technology drives this shift,
connectivity will become the fourth
utility – as essential to running most
workplaces as electricity and water.
The innovative office
As real estate portfolios are streamlined, core
locations (corporate HQs) will be found in more
concentrated business centres in key cities.
Some centres will become innovation districts,
combining business units with accelerator,
incubator and innovation spaces.
Accelerator and incubator spaces exist today to
enable start-ups to bring ideas to market and
facilitate the develop of new tech
solutions, products and services. Larger
businesses are already setting-up collaborative
and innovative working environments, enabling
them to tap into the potential new products
and servcies that can come out of this work.
The growth of the digital ecosystem over the
next 15 years is the main driver of this change of
approach to location. It also reflects
the restructuring of industry sectors to
form stacks with greater collaboration between
companies.
Companies have launched their own co-
working brands, such as SAP's HanaHaus* in
Palo Alto, and set-up of accelerator spaces to
work with partners. Many of these spaces
require specialist space for product
development, separate to the strategic location
where core business functions are carried out.
*see http://www.hanahaus.com/#home
The changing workforce means core locations
will be the focus of higher investment and
greater attention. High spec locations will be
used as a tool to attract the right talent, while
the ability to change the internal configuration
of a core location, or at least offer a variety of
different spaces, will be key to allow the more
intelligent management of space.

Connectivity is key
Granite and schist rock are some of the barriers
less associated with technology pioneers, but
these were the obstacles Spread Networks
overcame in 2009. That year, the company
began tunnelling through Pensylvania's
Allegheny Mountains to lay over 800 miles of
new fibre optic, high speed Internet cable,
between Chicago and New York. Demand for
the new, faster connectivity was high, driven by
Wall Street firms looking to lease bandwidth
and boost the speed of their trading desks.
While big financial firms have already spent
billions building communications paths and
computing facilities, the need across other
industries to access always-on connectivity,
with speed and resilience, is only growing.
Software, data storage and digital infrastructure
is increasingly being accessed through cloud
computing services. This makes connection
speeds ever more important and will
determine how attractive a building is to
potential tenants.
It is not only a priority for individual businesses.
Government policy often treats access to high
speed Internet as a part of the critical
infrastructure and essential for economic
growth. Cities around the world are leading the
way, with the rise of the gigabit city, offering
residents and companies access to high speed
Internet that slashes streaming and download
times.
Next, discover where we are today and the
trends that will drive real estate demand over
the next 15 years.

Today
The new approach to location is already
beginning to take shape. Co-working spaces are
growing in popularity, facilitating highly-skilled
freelancer workers and greater partnership
working between organisations.
Big firms, often industry incumbents, have
adapted in the face of disruptive technology
that threatens to snatch market share. They
have also spotted the opportunity to partner
with start-ups to drive the development of new
business models, products or services.
"Innovation is key to
competitive advantage and
companies have realised that
this can be achieved by
collaborating with people
external to their
organisation. "
Owen King, Senior Consultant at Unwork
UK bank Barclays has created Rise, co-working
and accelerator spaces in London, Manchester
and New York. Rise runs an accelerator
programme with Techstars to enable financial
technology start-ups to explore opportunities,
leveraging Barclays' network and systems.
Why Barclays’ Schools for Startups Are Different from the Rest, American
Banker, August 2015. http://www.americanbanker.com/news/bank-technology/
why-barclays-schools-for-startups-are-different-from-therest-1075854-1.html
General Electric recently opened FirstBuild on
the campus of the University of Louisville in
Kentucky. This specialist environment allows
product engineers to develop concepts and
ideas using low volume manufacturing
techniques.
Why GE has a ‘fail fast’ startup for rally fighters and pizza ovens, Wired,
December 2015. http://www.wired.co.uk/magazine/archive/2015/12/features/
gestartup-fail-fast-crowdsourcing
GE/Firstbuild

Connectivity is highly prized
When Caspi Development acquired the 161
Bowery building in New York for renovation,
they invested in linking up each floor with
fibre connections plugging into the high speed
Internet connection outside the block.
161 Bowery Getty
Tenants flocked to the building with its
WiredScore-certification, helping recoup the
firm's initial investment. WiredScore rates
buildings for their speed and reliability of
internet connection in fifty cities. As
dependency on connections to the cloud and
infrastructure to support large data transfer
grows, the importance of connectivity in
location decisions will only increase for many
businesses.
2025
As companies move to a location strategy built
out from a core, strategic location and
surrounded by tactical flexible spaces, co-
working providers will grow. The rise of lean
companies, employing few staff directly, could
also lead to an approach to real estate that only
uses co-working and serviced-type office space.
A stark example of the difference between the
business model of the 2020s compared to the
one we are used to now is the demise of Kodak
versus the rise of Instagram.
In its heyday, photography firm Kodak
employed 145,000 people; when photo app
business Instagram was acquired by Facebook
for $1bn it employed just 13 members of staff.
Facilitating flexibility
Q&A with Owen King, Senior Consultant
at Unwork
Q. How important will real estate flexibility be to
businesses?
It is becoming incredibly difficult for
organisations to forecast their real estate
requirements over the 5, 10 or 15 years of a
typical office lease. With the pace of
technological advancement, there is more
uncertainty for businesses and a need to adopt
a more agile, flexible organisational structure.
This need for flexibility very much applies to
real estate, which has traditionally been a fixed
and intractable asset. To achieve this,
companies will partner with co-working
providers so they can scale their space
commitments more dynamically.

Q. How has the use of innovation spaces, such as
incubator and accelerator units, evolved?
Companies are increasingly focusing on value
creation, as back office type functions are
outsourced or automated. Innovation is key to
competitive advantage and companies have
realised that this can be achieved by
collaborating with people external to their
organisation. These spaces bring together
bigger firms with start-ups, and isn’t a strategy
just being used by technology firms anymore.
Engineering firms and companies in the
consumer goods and finance sectors have
embraced this way of tapping into new
technologies and ideas.
Q. Are certain industries more likely than
others to be early adopters of the core and
flexible real estate model?
This approach will develop as a curve.
Technology firms, who are at the hard end of
the changes taking place, will be the early
adopters, but we will start to see this model
being adopted by other sectors as digital
disruption gathers pace. In the finance sector,
for instance, a lot of the banks are investing in
emerging technologies like block chain that
will help them reduce inputs and costs.
Consequently, they’re employing more software
engineers and technologists and are starting to
look more like their counterparts in the tech
sector in terms of real estate requirements.
A core and flex model
By 2025, flexible spaces will account for 30% of
the total real estate footprint of a large
company. This space will complement the core
locations sited in city centres and innovation
districts, allowing partnership work with
accelerator and incubator spaces. Exact
requirements will vary, but a more varied mix of
workspaces that build in greater flexibility will
be a near universal requirement for many
businesses.
This will lead to more flexible tenancy
arrangements, with space under 10,000 sq. ft
leased directly. The rise of digital platforms to
quickly secure workspace will enable this shift.
Where would be the best
centre for a core location in
your sector?
An innovation district outside of
a major city centre

An established urban centre,
such as London or New York
A fast-growing city in an
emerging market
See results
2030
By 2030, there will be a concentration of core
company locations in key centres with a high
proportion of staff and contingent workers
– operating flexibly from co-working
environments and on the move.
Advances in computing power and artificial
intelligence will transform how people
work, allowing companies to operate leaner,
more responsive business models. Remote
working will be facilitated through faster
connections via 5G networks and fibre
optic cable, along with comprehensive
network coverage and widespread adoption of
cloud technology.
estate?
Expectations about real estate will shift over
the 15 years to 2030. Talent competition and
advances in workplace data mean specification
and fit-out will need to be actively managed to
meet individual user and corporate tenant
needs.
The next generation – the digital dependents –
will expect greater personalisation and choice.
For core locations, the ability to offer far greater
customisation will be enabled by the rise of the
Internet of Things (IoT) and device adoption.
Technological and architectural infrastructure
will converge to become the framework for
designing and selecting properties. Workspaces
with high quality connectivity, designed to offer
customisation, and situated in key city centres
and innovation districts will command the
greatest interest.

FUTURE PROOF
PROPERTY
Are you ready for the workers of
tomorrow?

Action plan to
2030
Technology is transforming the way
businesses use real estate. Are you
ready to react to the changes set to
take place over the next fifteen
years?
Businesses who fail to adapt their
strategies today risk obsolescence
tomorrow.
Discover how companies can use
technology to make smarter
decisions on location selection and
workplace design, and how
investors can position their
portfolios for the accelerated
change we are seeing.
As the world of work is transformed, the real
estate landscape will shift. Those changes have
already begun, and it is conceivable that a
workplace designed on today's assumptions
could become redundant for many businesses
in little more than a decade.
As researchers at Nesta and Oxford University
have identified, just the rise of automation in
the workplace has the potential to completely
redraw the type of jobs available and skills
required over the next 15 years.
Between now and 2030, there are
steps businesses can take to future proof their
workspace design and management strategies.
Read on to see whether you're prepared for the
changes ahead.
Four things to do tomorrow
1. Put data science in the driving
seat: embed technology into
workplace strategy
2. Review locations and facilities:
focus on flexibility, connectivity &
user experience
3. Test new systems and
technology: begin to embed smart
systems into the fibre of buildings
and get to grips
with data management
4. Take health and wellbeing
seriously: tackle productivity,
sustainability, health and wellbeing
through intelligent
buildings

Now to 2025
How smart is your
workspace?
How could you use sensors and data
analytics to make the best use of real
estate?
How connected is your real estate
strategy?
Connectivity with be a key enabler of future
work, will your location strategy be framed
around connectivity?
Have you considered co-working or
incubator sites?
How would you manage more flexible
demands on working spaces?
2030
Will facilities management be
automated?
The rise of artificial intelligence will impact
how buildings are run.
What makes a good core location?
Companies will move to fewer core locations in
hubs surrounded by a network of flexible space
to accomodate changing requirements.
How can buildings be designed and
developed to meet the demands of
2030?
Changing requirements will mean greater
ability to change internal spaces easily and a
need for higher specs to attract the right
workers.
Share on GoogleShare on FacebookShare on LinkShare on T
Share on GoogleShare on FacebookShare on LinkShare on T
By 2030, 30% of corporate
real estate portfolios will
comprise flexible space.
#RIDETHEWAVE
Are you ready to ride the wave of change?
For more detailed action plans and analysis
of the drivers of technological change,
request a copy of the full report on the next
page.

Thank you for reading
WORKSPACE,
REWORKED
Navigating the changes ahead will require a deep
understanding of these trends. Request the full report for more
detailed analysis and action plans.
Visit the website https://ridethewave.jll.com
Cookies Terms Privacy P O W E R E D B Y

Workspace,reworked

Empfohlen

Empfohlen

Weitere ähnliche Inhalte

Was ist angesagt?

Was ist angesagt? (16)

Ähnlich wie Workspace,reworked

Ähnlich wie Workspace,reworked (20)

Kürzlich hochgeladen

Kürzlich hochgeladen (20)

Workspace,reworked