ankur ojha
Post on 08-Apr-2018
246 Views
Preview:
TRANSCRIPT
-
8/7/2019 ankur ojha
1/28
Presented byAnkur Oj
-
8/7/2019 ankur ojha
2/28
Introduction Trend in ICT application Effects of ICT on Office Space Allocation &
Work Practices Survey Sample & Data Collection Mailed Questionnaire Results
Logit Model and Other Statistical Tests Case studies by interview Conclusion
-
8/7/2019 ankur ojha
3/28
ICT has frequently been thought to be thedriving force behind todays economy.
It is generally felt that there is a directrelationship between investment in ICT and
productivity improvements, which include better customer service greater product variety shorter response time enhanced product quality; and better customization of products and services.
-
8/7/2019 ankur ojha
4/28
Information & CommunicationTechnology (ICT) is used to refer toinfrastructure and product developmentthat facilitate the collecting, storing andanalysis of information that may betransmitted electronically
It includes equipment like telephones,communication lines used to enhancecommunication between employers andemployees, businesses and customers,and business and business acrossphysical boundaries
-
8/7/2019 ankur ojha
5/28
Government has been actively encouraging firmsto upgrade their connectivity and productivity viaits agencies like IDA, EDB, PSB
Schemes offered include: Local Enterprise Computerisation Programme
(LECP) by IDA (assist SME to achieve highercompetitiveness through effective use of IT)
Jumpstart Programme by PSB (assisting SME to
adopt E-commerce) IDAs Information & Communication TechnologyICT usage survey 1999indicates a high ICTadoption rates among businesses in Singapore
-
8/7/2019 ankur ojha
6/28
Computer and information technologies are expected to bringabout the third wave of revolution to the production and
social interactions in the new economy How would these new ways of production and customer-
manufacturer relationships impact on the demand for officespace?
Would this IT revolution lead to a major structural change inthe office space demand?
How would the location choice, spatial configuration andfunctional connectivity of the physical office space be changedto meet the demand of the IT-driven businesses?
-
8/7/2019 ankur ojha
7/28
In Singapore, IT-ready office space commands amarket premium over obsolete and IT-unfriendlyoffice buildings
A trend of facelift to existing office buildings wheredevelopers or owners spend million of dollars toprovide broadband connection and raise floorfacility to entice tenants in IT related business
Singapore Land Tower located in the prime RafflesPlace business district is one the building that iscurrently undergoing million dollars upgrading toimprove its facility and functionality
Hot-desking, home-office and tele-working is
another emerging trend in the office market, These will significantly transform the way work is
carried out and lead to a reduction in demand forphysical office space in the long run
-
8/7/2019 ankur ojha
8/28
How would active integration of ICT into thework place help companies to reduce thephysical space requirement?
Arent the companies space decisionsdependent on the prevailing market rents?
There are no easy answers at this stage to thequestions.
However, the market driven and ICT inducedoffice space demand shifts can be conceptuallyexplained ceteris paribus using the familiardemand function as shown in Figure 1.
-
8/7/2019 ankur ojha
9/28
Quantity of space
Market
Rent
AggregateDemand
Curves
D
D
D
D
Original
Market Clearing
Condition
QQ
R
R
b
a
a = demand shift caused by rental increase
b = structural shift in demand curve brought aboutby the ICT revolution Source: Dr Sing Tien Foo
-
8/7/2019 ankur ojha
10/28
Revolutionarylevels
Evolutionary
levels
Range of potential benefits
Degre
eofbu
sines s
transforma ti
on
High
HighLow
Low
Level 5: Business scope redefinitionLevel 5: Business scope redefinition
Level 3: Business process redesignLevel 3: Business process redesign
Level 4: Business network redesignLevel 4: Business network redesign
Level 2: Internal integrationLevel 2: Internal integration
Level 1: Localized exploitationLevel 1: Localized exploitation
5 Levels of ICT-Induced Firm Operation5 Levels of ICT-Induced Firm Operation
EvolutionEvolution
Source: Venkatraman, 1991
-
8/7/2019 ankur ojha
11/28
ICT impacts on office space demand would take placein three broad areas: business function and configuration, staffing structure and location choice.
More information and transaction via the virtualspace rather than the physical space (e.g. internetbanking, electronic stock brokerage, NET transaction)
Flatter organization structure. Ratio of clerical staff to administrative and executive
staff is likely to reduce Productivity of the staff increases as a result of office
automation. Span of control of managerial staff ICT-induced decentralization of office space for
companies that operate largely over the virtual
space.
-
8/7/2019 ankur ojha
12/28
Mailed Questionnaire Survey pilot phase In 4th quarter 1999 URA statistics, 41.64% of the total of
5.88 million square meters of office space wereconcentrated in downtown core.
Sample of tenants is restricted to CBD areas 500 tenants in offices within CBD areas ar randomly
selected
Response rate was poor at 9% (46 responses)
Distribution of respondents profile (Figure 1)
-
8/7/2019 ankur ojha
13/28
28%
26%
28%
11%7%
Real Estate, Finance & Insurance
Business, Retail, Trading & Advertising
Media, telecommunication & IT
Trasport, Industrial Biz, & Legal
Others
-
8/7/2019 ankur ojha
14/28
73%
9%
7%11%
Below 50005001- 1000010001 - 15000above 15000
-
8/7/2019 ankur ojha
15/28
34.815.2
19.6
21.72.2
73.94.3
58.715.2
50
41.34.3
19.613
4.352.2
2.237
065.2
1330.4
067.4
0 20 40 60 80
1
2
3
4
5
67
8
9
10
11
12
Not Important
Very Important
Desktop
Laptop
Printer
Mobile Phone
Fax Machine
Voice Mail
Video Conferencing
Intranet/LAN
Internet/Server
Email
Electronic Data Sharing
Customized/Task Oriented
Software
-
8/7/2019 ankur ojha
16/28
32.6 32.6 34.8
54.3 32.6 13
78.3 19.6 2.2
10.9 6.5 82.6
67.4 19.6 13
71.7 19.6 8.7
65.2 26.1 8.7
67.4 13 19.6
0% 20% 40% 60% 80% 100%
1
2
3
4
5
6
7
8
No Change Reduce Increase
Quality of Space
Cost of Operation
Number of Meetings
Importance ofMeeting Place
Workers Productivity
Need to Meet-up
Employees time inOffice
Overall Space Reqd
-
8/7/2019 ankur ojha
17/28
Shorten Data processtime (82.9%)
Reduce Number ofClerical Staff (58.5%)
Reduction in storage
space for document(56.1%) Increase Span of
control of MiddleManagement (51.2%)
No
11%
Yes
89%
-
8/7/2019 ankur ojha
18/28
No
43%
Yes
57%
9
17
Does company
encourage work away?
No
Yes
-
8/7/2019 ankur ojha
19/28
0%
10%
20%
30%
40%
50%
60%
Amini
strati
ve
Marke
ting
Mana
gement
Other
s
Reasons againstworking awaypractice Lesser control (34.3%
Lack of trust (11.4%)
Nature of job site(80.0%)
Resistance fromemployees (2.8%)
Nature of
works that
will suitworking
away
practice
-
8/7/2019 ankur ojha
20/28
0% 20% 40% 60% 80%
Respondent'sOffice
Customer's office
On-site
0% 20% 40% 60% 80% 100%
Email
Telephone
By mailIn Person
Means of Establishing Contacts with Customers
Usual Meeting Place
-
8/7/2019 ankur ojha
21/28
70%39%
63%
22%
20%30%
46%
0% 20% 40% 60% 80%
Rent
Building size
Employee size
IT-readiness of building
Prestige of building
Nature of business
Location of building
-
8/7/2019 ankur ojha
22/28
Factors affecting perceived space change infuture
Variable Coefficient Standard error Wald statistics Significance level
SECTOR-.259 .265 .956 .328
OFFSIZE -1.737 1.959 .786 .375
ICT.EXP 1.478 1.159 1.625 .202
MAINTNCE 1.638 1.078 2.308 .129
WEBPAGE -1.841 1.736 1.124 .289
NO.EMPLY .910 1.301 .489 .484
C.EMPLOY -1.518 1.756 .747 .387AT.WKAWY 5.997 3.050 3.867 .049
RENT.DRP 3.843 2.449 2.462 .117
PDTY.OFF -1.532 2.094 .535 .465
Constant -2.871 4.297 .447 .504
-
8/7/2019 ankur ojha
23/28
Factors affecting actual office space changes
Variable Coefficient Standard error. Wald statistics Significance level
SECTOR .040 .131 .091 .763
OFFSIZE -.765 1.527 .251 .617
ICT.EXP -2.020 1.913 1.115 .291
MAINTNCE 1.584 1.102 2.065 .151
WEBPAGE -3.930 1.958 4.027 .045
NO.EMPLY -.495 1.093 .205 .650
C.EMPLOY 2.547 1.750 2.118 .146
AT.WKAWY 1.368 1.737 .621 .431
RENT.DRP 2.456 1.532 2.570 .109
PDTY.OFF -1.803 1.821 .981 .322
Constant -.011 3.440 .000 .997
-
8/7/2019 ankur ojha
24/28
Business type Productivity Staff Strength Location Choice
Insurance Yes Less clerical Hot-desking in future
Non-profit traininginstitution
Marginal No impact No impact
Legal service Definitely Less clerical, MoreIT staff
Near courts, near clients
Dot.com Central theme Related staff Near client, no hot-desking
Property Consultants Yes Less clerical No hot-desking, face to faceimportant
Property Consultants Definitely Less clerical, MoreIT staff
Cant hot-desk, face to faceimportant
ManagementConsultants
Definitely Less clerical, moreconsultants
Near CBD, Office hoteling
Medical Suppliers Yes Less clerical, IT
outsourced
Outside CBD, face to face
important
-
8/7/2019 ankur ojha
25/28
70 staff in Singapore office ICT increases efficiency & productivity of employee
and reduces manual and clerical-type tasks Minimizing operation cost in long-run Moved from Shaw Building to Centennial Towers space increased from 10,000 sf to 20,000 sf Reasons: expansion of business and prestige of the
Mariana Bay office location Wireless applications will have impact on work
practices, as staff are frequently not working fromtheir dests
Tele-conferencing & hot-desking is important
-
8/7/2019 ankur ojha
26/28
The firm provides consulting services relatedmainly to business management and technology
500 staff in Singapore office Located in the Gateway Building 25% increase in space over the last 3-year due to
business expansion Adoption of office space conserving concepts like
office hoteling and hot-desking 80% of staff are professional consultants, and they
are apt to office hoteling worked mostly at theclients place
ICT expenditure 3% total operating expenses ICT increases productivity & revenue It reduces clerical staff, but increases IT personnel
to maintain the system
-
8/7/2019 ankur ojha
27/28
Growing trends in ICT application in office Improved productivity via automation of selected operations
Impact of ICT on demand is not significant Small proportion of respondent experienced a reduction in
employee size with an increase ICT investment Physical meeting place and office space are still important Most respondents do not encourage employees to work
away away from office The logit models suggest that probability of office space
reduction is related to the increase adoption of new workpreactices
Availability of webpage may also be a factor affecting thedownsizing of office space
We will continue to see changes in the office space use andemerging of new office practices eg. Service office,telecenter, hot-desking etc.
-
8/7/2019 ankur ojha
28/28
The end
top related