THE FUTURE OF THE TMT

54 Pages·2015·4.25 MB·English

THE FUTURE
OF THE TMT
WORKPLACE
How to Future Proof Your Workplace and Real
Estate Strategy for the Age of Digital Disruption
The Future of the TMT Workplace
Contents
04 Foreword 12
05 Introduction
06 Executive Summary TMT –
Totally
12 TMT – Totally Meaningless
Meaningless Term?
Term?
Consolidation, regulation
and disruptive technologies
are reshaping the
TMT sector.
Five Forces
20 Five Forces
Driving Change
Driving Change
20
The five forces shaping
the TMT workplace of
the future.
2 Contents
The Future of the TMT Workplace
33 Consequences:
How TMT Players are
Responding
33 Consequences:
How TMT Players are
Responding
What TMT players can
do to future-proof their
workplaces and businesses.
48 Futures:
What TMT Players Need
to do Next
Developing workplace and
real estate strategies for the
age of digital disruption.
52 Thanks and
Acknowledgements
50 References
48
51 About Cushman
& Wakefield
Futures:
What TMT 52 About Unwork
Players Need
to do Next 53 Contact
3 Contents
Foreword
This report is the second in a series of reports co-produced by Cushman &
Wakefield and Unwork on the future of work, workplace and real estate
strategies in different sectors. Our first report – The Future of the Financial
Workplace – highlighted how a fragile global economy, changing
regulations and the rise of new technologies were transforming the
workstyles of banks and other financial institutions.
In preparing for our next report, we wanted to focus on a sector
at the apex of even greater change. The Technology, Media and
Telecoms (TMT) sector was the obvious choice. When the Federal
Reserve last raised interest rates in June 2006, Twitter users were
sending out the platform’s first Tweets. Just nine years later,
half a billion Tweets are posted on the microblogging platform
every single day.
What does this incredible pace of change mean for
workplace and real estate? In this report we identify how
workplace strategies are adjusting to the ever increasing
threat of digital disruption; how leading players
have structured their operations across different
geographies; and how workplaces in the sector are
adapting to accommodate greater convergence and
overlap between technology, media and telecoms.
JAMES MADDOCK
TMT companies led the way in creating some
Head of Global
of the most innovative and creative workplaces
Occupier Services, EMEA
in the world today. As the parameters of
[email protected]
the sector and nature of work that TMT
companies undertake changes, they
continue to be at the forefront of
workplace innovation.
PHILIP ROSS
It is our hope that this report – and CEO, Unwork
subsequent reports in this series – [email protected]
give heads of corporate real estate
a marker to navigate a fast moving
and challenging world. OWEN KING
Workplace Consultant,
We hope you enjoy the Future Unwork
of the TMT Workplace report. [email protected]
4
The Future of the TMT Workplace
Introduction
‘If you don’t For players in the is shortening adoption Fortune 500 companies,
technology, media and curves – while Facebook workplace leads, world-
like change,’
telecoms (TMT) sector, took 42 months to reach renowned designers and
former US these words couldn’t be 50 million registered architects, and founders of
army chief any more appropriate. users, just a few years startups and high-growth
later mobile game businesses, identifying
of staff Eric
Traditional ways of Angry Birds achieved how leading companies
Shinseki working are being 50 million downloads in have structured their
once disrupted at an 35 days. Falling costs of workplaces and real
unprecedented speed technology are leading to estate to ensure that
quipped, by the accelerating the commoditisation of their businesses grow
‘you’re pace of technological existing products faster in the future.
change. New competitors than ever before. The
going to like
from unfamiliar parts source of competitive This isn’t just a report
irrelevance of the world are rapidly advantage for a TMT firm for directors of property,
even less.’ scaling and competing is no longer derived from however. It’s also a report
globally. Entire industries the size of its revenues for c-level executives
are being transformed or the number of people who want to know how
by new applications it employs, but from its they can make their
and business models, ability to unlock new firms more disruptive
devastating companies sources of growth by and innovative. Key to
not agile enough to rapidly developing new creating a workplace
respond to a shifting products and services. for the future is aligning
competitive landscape. workplace strategy to
If you’re the director of business strategy. Through
For companies in the property at a TMT firm, highlighting challenges,
TMT sector – who are how can you align your case studies and best
at the hard end of workplaces and real practises, this report
much of the disruption estate to support this new sets out how successful
taking place – change is source of competitive workplace and real
the only constant. The advantage? This report estate strategies create
break-neck pace that will show you how. We’ve successful businesses.
technology is advancing been around the globe
at is making it harder talking to people involved This report is the second
for companies in the in the provision of work in a series, commissioned
sector to forecast growth environments from across by Cushman & Wakefield
and develop strategies the TMT sector. We’ve in 2015 and researched
for the long term. The conducted numerous and written by UnWork.
surge in the number interviews with directors com in collaboration with
of connected devices of property at global Cushman & Wakefield.
5
The Future of the TMT Workplace
Executive
Summary
Not since the The Internet of Things devices connected to the
(IoT), smart cities, cloud Internet and falling costs
onset of the
computing, additive of computational power
industrial manufacturing and are accelerating adoption
artificial intelligence – to curves and shortening
revolution
name only a few examples product lifecycles.
has technology – will fundamentally Smartphones may be the
change the way people fastest adopted technology
been poised
live and work. At the in history, but the makers
to play such a
vanguard of this change of these devices are seeing
transformational is the technology, media their revenues eroded by
and telecoms (TMT) sector, plucky upstart brands who
role in the lives
creating new products and are rapidly commoditising
of consumers services that are disrupting value chains. Emerging
old business models and market firms are scaling at
and operations
transforming industries an unprecedented speed
of businesses. beyond their own. and established players
are finding it harder to
Companies in the
source the technical
TMT sector, however,
talent vital to the future
must walk a tightrope.
of their companies.
While technological
advances present a raft The successful TMT firms of
of opportunities for TMT the future will be those that
players to grow into, can identify new sources
they’re also making the of growth and rapidly
competitive landscape develop products and
more perilous and volatile. services to serve emerging
The surge in the number of or previously unmet needs.
6 Executive Summary
While technological advances present opportunities
for TMT players to grow into, they’re making the
competitive landscape more perilous and volatile.
TMT players also need to from the strategic level No executive at a TMT
find novel applications for of business. This is a company should think that
their existing technologies mistake. No business the environments in which
and expertise, leveraging executive at a hardware work gets done are not of
these to give them an company would say that vital strategic importance.
edge in growth areas like the management of their As this report highlights,
connected homes and big supply chains was of the companies that are
data. They need to be able secondary importance to leading the TMT sector are
to quickly augment their the company’s operations. those creating new types
organisational capabilities of workplaces to expedite
and adopt agile, product development;
No executive at
disruptive behaviours. basing their operations
a TMT company in the right locations to
Here, workplace and real should think that ensure a healthy supply
estate strategies will play of talent and access to
the environments
a critical role. Workplaces growing markets; and
are the operational in which work building the flexibility into
level in which strategy gets done are not their portfolios that will
succeeds or fails. Too enable them to scale their
of vital strategic
often, workplaces and real estate commitments
real estate are separate importance. as required.
7 Executive Summary
The Future of the TMT Workplace

5forces
driving
change
This report sets out how TMT players can
use their workplaces to future-proof their
businesses. It identifies five forces that are
driving TMT players to fundamentally rethink
their workplace and real estate strategies:
1. Transformation
Accelerated adoption curves and shortening product
lifecycles means that competitive advantage in the TMT
sector is increasingly derived from an organisation’s ability
to develop new products and services to unlock new
sources of growth. Workplaces, location strategies and the
composition of workforces at TMT players are all changing
to accommodate the new products and services that
companies in the sector are developing.
8 Executive Summary
5. Talent
There’s a war going on for top technical talent. Demand for developers, data
analysts and engineers already outstrips supply, and as technology is high up on
the agenda of businesses beyond the TMT sector, the competition for talent is
growing more intense. Furthermore, the generational divide between younger
coders, who tend to be proficient in different programming languages, is leading to
an impending skills gap for many companies. Attracting the right talent is driving
decisions about location and workplace.
4. Emerging Markets
The shift in economic dynamism from the developed economies of the West to
the emerging economies of the developing world is leading TMT companies to
think more seriously about their emerging market strategies. These countries not
only offer huge opportunities for growth, but also deep pools of talent. While this
makes them attractive locations for TMT firms, they’re also home to ferocious local
competition that developed market firms will have to tackle head on.
3. Cities
Concentrations of customers and talent in cities are drawing TMT players to base
their operations inside urban locations, rather than in out of town ones. Cities can act
as testbeds for new technologies for TMT companies, but heads of real estate need
to be able to identify which cities have the deepest talent pools, best universities,
most vibrant startup ecosystems and established networks of peer companies.
2. Disruption
New applications of technology, the falling costs of computational power and
the availability of platforms to easily build, distribute and market new products is
empowering the rise of disruptive new entrants to the sector. Young companies
and new business units can scale rapidly, making it harder to develop strategies
for the long term. In this context, forecasting workplace and real estate
requirements is a significant challenge – as one corporate real estate professional
for a large technology company told us, ‘technology moves quickly; property
doesn’t.’ Increasing the flexibility of their portfolios is a key priority for the
companies we spoke to.
9 Executive Summary
The Future of the TMT Workplace
How TMT Players TMT hubs emerges in
developing markets like
China, India and sub-
are Responding
Saharan Africa, new
locations for functions
like research and product
The way that TMT players respond to the development are arising
five forces will determine their ability in unfamiliar places. TMT
firms require detailed
to create leading workplaces, maintain
city-by-city metrics
competitive advantage and be successful on growth projections,
in the future. There are four areas in demographics, talent
pools, local universities,
which leading TMT players are using their
infrastructure and
workplace and real estate strategies to competitors to make
future-proof their businesses. location decisions. They
also need to think about
how they can partner
with universities and
1. The Changing Role to accurately forecast
city governments, and
of Workplaces workplace and real estate
distribute work across
Recognising that requirements, heads
the operations of their
developing new products of real estate need to
various locations.
and services requires a understand how they
departure from ‘business can increase the agility 4. Workplaces and Talent
as usual’, many TMT and flexibility of their
Winning the war for
players are creating portfolios. Moving from
talent is driving decisions
specialist workplaces allocations of space
about where TMT players
where ideas can be that rely on ‘one person,
locate, what kinds of
developed faster. one desk’ can unlock
work environments they
Accelerator and incubator significant space savings
create and the range of
spaces are becoming a key by freeing up under-
amenities and services
component of real estate occupied space and allow
strategies as companies growing businesses to they build into their
attempt to work more scale without expanding workplaces. In the near
As a wave closely with startups and their footprints. Flexible future, however, demand
high-growth companies offices are also becoming for talent will require
of new TMT to fast-track product a core part of property companies in the sector
hubs emerge development. Leading strategies in the sector as to think about how they
players are also designing companies look to limit can tap talent from more
in developing workplaces which long-term lease liabilities diverse backgrounds
markets, encourage interactions and quickly ramp up their and make the leadership
between different operations in new markets. of their organisations
newlocations
employees in the hope more representative of
for functions that new ideas will emerge 3. Location Strategies for the generations they
from ‘bump’ moments the Future employ. With the supply
like research
between specialists from With cities becoming of younger workers
and product different business units. the engine of growth for dwindling in most
TMT companies, leading developed economies,
development
2. Agile Workplaces and firms are increasing programmes to attract
are arising Flexible Real Estate their footprints in urban and retrain older workers
With the break-neck locations in both the and increase levels of
in unfamiliar
pace of technological developed and emerging female participation are
places. change making it harder world. As a wave of new key to success.
10 Executive Summary