benoit felten - next generation broadband enables vital business transformation

© Copyright 2007. Yankee Group Research, Inc. All rights reserved.

Benoît FeltenSenior [email protected]

Next Generation Broadband Enables Vital Business Transformation

Connected Urban Development© Copyright 2007. Yankee Group Research, Inc. All rights reserved. Sept. 24th, 2008

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Preliminary comments

• This is a vision, not the results of a study

• The figures quoted lack consistency and are presented to support a reasoning.

• Anyone willing to finance a more in-depth study to support this vision with hard facts is welcome to contact me!


Reducing light-vehicle carbon emissions

• « Transport is the second-largest source of carbon dioxide (CO2) emissions and household vehicle use alone accounts for roughly 16 percent of total U.S. emissions. These emissions have been growing roughly 1.5 percent per year. » (source: www.rff.org)

• In the European Union, light vehicle carbon emissions account for 12% of the total EU carbon emissions (source: EU)

• Three factors account for light-vehicle Carbon Emissions:• Vehicle use• Fuel economy• Carbon emissions from production and consumption

http://www.rff.org/


Analysing some of the planned or implemented measures

Bonus/Malus Ecologique

• Impact on:• vehicle use: none• fuel economy: none• Carbon emissions: very

limited

• Adverse effects:• More cars on the roads?

Stopping idle car engines

• Impact on:• vehicle use: none• fuel economy: none• Carbon emissions: none

• Adverse effects:• Angry motorists

• Micro-measures won’t cut it.

• Advances in engine technology will help with fuel economy and carbon emissions.

• Vehicle use is the highest impacting factor. Who will tackle that?


Facts about commuting (UK)

• 25 million workers out of 29 in the UK commute daily.

• 71% of workers commute by car, est. 54% of cars commute any given day.

• Average UK commuter makes 160 trips p.a. and travels 1391 miles (2240 km) in a year.

• Average time of a commuting trip (one way) by car is just under 30mn.

Source: RAC Foundation - The UK Commute: Healthy or hazardous? (2007)

http://www.racfoundation.org/files/theukcommute.pdf

18m. daily car commutes

40bn km drivenin commutes each year

4 bn hours spent commuting by car each year

5.7bn hours spent commuting altogether each year

This is only for the UK!


A necessary business transformation

• The intense commuting required of workers is a result of an industrial age conception of work organisation.

• In this conception, « work » is a place more than an activity. Therefore, workers must come to work.

• The prevalence of service jobs allows us to imagine a different conception of work organisation:

• Service jobs are more likely to be able to be performed remotely: 69% of OECD employment is in Services (Source: OECD, 2004)

• 83% broadband coverage on average in OECD countries (Source: OECD, 2005) allows for widescale remote work (in theory)

• The opportunity is there to reverse the industrial age paradigm and have work come to workers.

• This is the most actionable short to mid-term way of reducing commuting and it has wide-ranging benefits beyond that.


Key benefits to all interested parties

BUSINESSES WORKERS NATIONS• Save money on

real estate, company cars and mileage expenses

• Gain productivity and efficiency

• Gain loyalty from happier employees

• Tap into qualified workforce not available outside of home

• Can boast their green-ness

• Save time and money not having to use cars to get to work as often

• Preserve more harmonious living conditions (family life, etc.)

• Lower stress levels by working in quieter and more personal work environments

• Significantly reduce carbon emissions

• Drive business efficiency and associated macro- economic benefits

• Retain jobs that tend to be outsourced in- country through « homesourcing »


Fact or fantasy ?

• The impetus has to come from businesses themselves. If businesses are not willing to play, it won’t happen.

• The key driver for businesses is monetary. Test cases are emerging that demonstrate significant savings for organisations that have gone down that path:

• BT (own footprint) has implemented widespread flexible and remote working conditions and said it saved ~8500 EUR per employee per year.

• IBM has implemented homeworking for 30% of employees and say it generates savings of $100 million p.a.

• Other benefits (BT figures):• 80% homeworker satisfaction• Productivity improvement 20%• Absenteeism 3.1% vs. 8.5% national average

« Is this the real life, is this just fantasy? »20th Century Philosopher

Source: BT


Hurdles

• Business transformation on such scale does not occur overnight. There are important hurdles, essentially of three natures:

BusinessStructures

WorkEnvironment Technology

• Work organisation has high inertia

• Financial gains are the key driver for businesses but benefits are not well-known

• Employer to employee relationship is not as « trusting » as businesses like to say

• A boss often thinks his job is to supervise

• How do you emulate all the rest:

• social interaction, • visual contact, • anecdotal circulation of

information, • company culture,• document sharing, • water cooler

discussions, etc.

• Today’s technologies could allow to emulate some of that, but solutions need to be adopted by businesses and workers.

• IT Resources need to move to the cloud.

• The current generation of networks is a strong limitation :

• Bandwidth• Latency• Reliability and stability

Redefining the « social contract »

Driving adoption of work environment 2.0

Accelerating deployment of next generation broadband


Redefining the social contract

• The weight of the management relationship is on the shoulder of the business

• But just because an employee is not a manager does not mean he’s trustworthy…

• The main hurdle facing remote work is the absence of a relation of trust between employer and employee

• A redefinition of the work social contract is needed for that relationship to be established.

• This requires clearer objectives for employees and managers, and a shift of the manager’s role from superviser to coordinator.

• It also requires a contract whereby employees win from success and lose from failure

« manage • verb 1 be in charge of; run. 2 supervise (staff). 3 administer and regulate (resources). »


Driving adoption of work environment 2.0

• Adoption of next-gen work tools is slow and often against IT’s will.

• HD two-way video is a key enabler of more « trustworthy » commu- nication and collaboration but is

• non-existent in the home • too pricey• not interoperable enough

• A true « anywhere » work experience requires employees to access real-time collaborative software resources which implies a healthy dose of applications in the cloud.

• These are both supply and demand issues


Accelerating deployment of next generation broadband

• Only FTTH can provide the stability, QoS, bandwidth and low latency in the home required for systematic business use.

• The deployment of next generation broadband in the employment region around businesses is a crucial component of this business transformation.

• Accelerating this deployment of NGANs requires:

• A proper legislative context for deployment• A proper legislative context for local government

involvement• A proper documentation of available duct and

pole infrastructure• Raising citizen awareness• Getting players who are to benefit from

infrastructure around the table


Winners and losers

Potential winners Potential loosers

• Building companies

• Telcos

• System Integrators

• Business organisation consultancies

• Equipment vendors

• Oil companies

• Car industry

• Business real estate companies

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Thank you for your interest!

Benoît [email protected]: +3 618 243 189

benoit felten - next generation broadband enables vital business transformation

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