1. The Networked Economy Finding Opportunities in Change Michael Shear POCKETS Distributed Workplace Alternative, Inc

2. Changing perception is sometimes a matter of The Forgotten Half of Change Luc De Brabandere - 2005

3. Changing the way we look at things Changing perception is sometimes a matter of

4. There is no such thing as a hole in your side of the boat

5. 2 Aspects of Today’s Economy Energy Information & Knowledge

6. Our Changing Economy 1) The world economy is based increasingly on information. 2) The cost of computing and telecommunications is in free fall. Wide swaths of economic activity can be performed almost anywhere, at least in theory. 3) Low-cost countries are turning out large numbers of well-educated young people fully qualified to work in an information-based economy Fortune – July 2005

7. Many Americans who thought outsourcing only threatened factory workers and call- center operators are about to learn otherwise. That is a giant development, because information-based services are the heart of the U.S. economy. Fortune – July 2005

8. So in a world economy that threatens to pull down American wages, the key to fighting back is maintaining technological superiority—continually creating high- value new jobs that workers in the rest of the world can’t do yet. Fortune – July 2005

9. America’s infotech infrastructure is no longer world-class. We rank only 12th globally in broadband connections per inhabitants. Fortune – July 2005

10. Access Drives Economic Growth Accessibility is a key ingredient of well-being and prosperity in contemporary societies. The adverse effects of transportation have a greater impact on the natural and human environment than two other important mechanisms for providing access: proximity and telecommunications. AIR POLLUTION FROM GROUND TRANSPORTATION -United Nations - 2002

11. Access Methods TransportationTelecommunicationsProximity/Land Use “Accessibility is a key ingredient of well-being and prosperity in contemporary societies.” AIR POLLUTION FROM GROUND TRANSPORTATION - 2002 UN and World Bank 3 Methods of Access

12. Calvert-Henderson Quality of Life Indicators Copyright © 2003 by Calvert Group, Ltd. and Hazel Henderson info@Calvert-Henderson.com info@Calvert-Henderson.com Primary Emphasis is on Transportation Little Emphasis on Telecommunications

13. Shifting Paradigms  Industrial Worker  Deliverables are physical goods  Components of production need to be gathered at a physical location  Depletion of time and gasoline  Knowledge Worker  Deliverables are information based  Components of production are assembled in cyberspace  Uses time to ‘create’ information value and reduces use of gasoline

14. Major Challenges Pressure for Change  Growing congestion, pollution and sprawl  Increasing cost & time of transportation  Pressure on standard of living  Greater emphasis on security and business continuity  Globalization and shifting labor markets

15. Globalization and Services Economy What Cities Need To Offer to Compete – What Cities Need To Offer to Compete –  Quality of life  Competitive environment (Access to jobs and skilled workers)  Working smarter by leveraging infrastructure  Attract and retain high tech workers  Establish a knowledge worker labor pool

16. Quality Of Life and Congestion  Economic Consequences  Standard of Living  Knowledge workers have choices where to live

17. Responses  Transportation Based  Single Occupied Vehicle  Carpooling, vanpooling  Public transportation  Flextime  Walk, cycle  Technology Based  Telephone, fax  Voicemail, email, internet  Teleconferencing  Telework, instant messaging  Telework centers  Video conferencing  Wireless mobility  Unified Messaging  Collaborative Tools  ‘Virtual Presence’

18. Current Direction Networked Economy Increasing congestion Reduced congestion (predictable patterns) Growing reliance on gas Less gas dependent Diminishing personal time Greater personal time Greater cost impact on lower wage earners More equitable access for lower wage earners Allocated Resources - $ Incremental, progressive (slow) improvement Leapfrog improvement

19. U.S. INNOVATION:NICHOLAS DONOFRIO Executive Vice President, Innovation and Technology IBM Corporation Congressional Testimony Committee on House Science 07-21-2005 We must recognize innovation as a national priority. For the United States to thrive in the hyper- competitive world economy we must, with urgency, mobilize business, government, educators and researchers to adopt innovation as a core strategy to build the foundation for a 21 st Century knowledge- based economy.

20. We live in tumultuous times, yet Americans know instinctively that our way forward is not to retreat or to re-trench. The way forward is to become more open, more experimental and to embrace the unknown. We cannot turn inward, nor can we allow our institutions to become overly centralized, calcified and risk averse. Council on Competitiveness National Innovation Initiative November 2004

21. Connectivity Cable Wireless Wire Line FTTH Satellite Cellular BPL e-Government e-Commerce Distance Learning Telemedicine Emergency Services Remote Work Consumer Services Radio

22. and Content Cable Wireless Wire Line FTTH Satellite Cellular BPL Radio e-Government e-Commerce Distance Learning Telemedicine Emergency Services Remote Work Consumer Services

23. Communications Reform Legislative Activity  House Energy and Commerce Committee  “Discussion Draft”  Broadband Investment & Consumer Choice Act of 2005  S.1504 Effort to replace the Telecommunications Act of 1996 and update the original Communications Act of 1934

24. Distributed Workplace A stepping stone in the ‘network economy’ Building a Stronger America with Innovation and Technology

25. POCKETS Distributed Workplace Distributed workplace is the combined use of a broad range of information technologies and strategic use of real estate for sustainable and secure economic and social advantage.

26. Evolution of IT Solutions for Remote Workers  Telework (Home Based) – Early 1970’s  Telework Centers (Modest Real Estate) – Early 1990’s  Distributed Workplace (Strategic use of Real Estate)

27. 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 Workplace Federal Government Federal Government Enterprise Tenant Enterprise Tenant Web Enabled Call Center State & Local Government Pilot Parameters Tech Center & Education Tech Center & Education

28. Work Location/Method Benefit Comparison Factors Single Location Telework Distributed Workplace Productivity011 Attraction & Retention 011 Lower absenteeism 011 Reduced stress 011 Employee satisfaction 0½1 Environmental impact 0½1 Security-people, systems, data 101 Time & money savings to employee 0½1 Business continuity 0½1 Management Oversight 1½1 Family emergencies, inclement weather, work-life balance 0½1

29. Converting Gasoline Dollars into Local Economy Dollars

30. Where is the ICT? SustainabilityGrowth Balanced use of Resources ExpertiseAssessment

31. The Networked Economy Finding Opportunities in Change Michael Shear POCKETS Distributed Workplace Alternative, Inc