futurum research workplace and digital … · 2019-03-12 · of the mobile workforce, but rather a...

COPYRIGHT © 2019 FUTURUM RESEARCH. ALL RIGHTS RESERVED.

FUTURUM RESEARCH

WORKPLACE AND DIGITAL TRANSFORMATION 9 KEY INSIGHTS IMPACTING THE FUTURE OF WORK

Uncovering the drivers, challenges, and value of Investments in workplace transformation initiatives

Evaluating the state of nine critical issues that are defining

the present and future of workplace transformation within the global enterprise market

RESEARCH COMMISSIONED BY

Q1 2019 DANIEL NEWMAN FRED MCCLIMANS

FOUNDER & PRINCIPAL ANALYST SENIOR ANALYST

WORKPLACE TRANSFORMATION INDEX

COPYRIGHT © 2019 FUTURUM RESEARCH. ALL RIGHTS RESERVED. 2

INDEX

BACKGROUND & INTRODUCTION 3

Background 3

Demographics 4

EXECUTIVE SUMMARY 5

ISSUE ONE: Drivers of Workplace Transformation 10

ISSUE TWO: Proactive & Predictive Digital Support 15

ISSUE THREE: Mobile Device Management 17

ISSUE FOUR: Collaboration 19

ISSUE FIVE: The Gig Economy 24

ISSUE SIX: Physical and Virtual Workplace Transformation 27

ISSUE SEVEN: Robotic Process Automation 32

ISSUE EIGHT: Remote, Mobile & Flex Workers 34

ISSUE NINE: Budget and Financial Issues 39

CONCLUSIONS 41

Insights 41

Predictions 43

WORKPLACE TRANSFORMATION BACKGROUND


BACKGROUND INTRODUCTION The need for Workplace Transformation and an introduction to the research. The notion of digital transformation within the enterprise is a popular topic of conversation as of late. It promises to enable organizational agility, create customer value-add, and reduce complexity for businesses of any size. What if the same construct was applied to the workplace itself? Companies such as Google are lauded for what they do for their employees to foster collaboration and productivity within the confines of an on-premise facility, but what about telecommuters, remote workers, and the growing trend of utilizing co-working facilities such as WeWork? What about those organizations that adopt a combination of workplace models? Are they focused on making the appropriate investments and committed to assuring that all employees have the resources to excel at their jobs? Technological advances are also knocking down workplace walls both physical and virtually. Among these are significant improvements are Wi-Fi performance as well as wireless wide area networking with Gigabit LTE and the promise of 5G’s higher throughput and lower latency. These improvements in connectivity are also driving a considerable growth in the adoption of a new set of collaboration tools such as video conferencing, project management, and agile/continuous software development. Given these emerging trends, it begs the question, how should organizations approach workplace transformation? We believe it should not simply be a facilities consideration given the rise of the mobile workforce, but rather a consideration that encompasses people, processes, and technology.

There are a number of questions and eventual decisions that IT and facilities staffs consider when transforming the workplace to facilitate and inspire growth and innovation:

• How should companies prioritize investments in people, processes, and technology?

• What is overall impact of prioritizations on employee attrition, satisfaction, and corporate culture?

• Should workplace transformation projects be broad in scope or more personalized?

• Should shorter term quick-fixes serve as an interim step or should more holistic, longer-term plans be deployed for workplace transformation?

• To what extent should budget be allocated towards collaboration tools?

• How should budget allocations be split between office and remote workers?

• To what extent should organizations increase spending from present levels for workplace transformation?

To gain a better sense for the propensity of workplace transformation and to attempt to answer the aforementioned questions, we conducted an in-depth survey commissioned by DXC Technology. Our goal throughout the research process was to gather and interpret the data, letting our survey panel inform our analysis and guide us to conclusions.



DEMOGRAPHICS This survey was conducted during the first quarter of 2019, consisting of a multi-part questionnaire comprised of 21 core questions plus additional demographic and qualification questions. The survey was completed by 502 survey panelists that met the following criteria: Management Role Requirement: Our survey targeted individuals actively involved in the ongoing management of business or technology systems, having a minimum qualification of being at the Director, Manager, or Team Lead. Operational staff were disqualified during the evaluation process. 66 percent of our respondents were members of the C-suite, with 2 percent at the SVP, EVP, VP or Business Unit Lead level and 32 percent at the Director, Manager or Team Lead level, as follows:

SURVEY PANEL BY TITLE/ROLE

Decision Influence Requirement: To further qualify our survey panel, we required all participants to be actively influencing

workplace transformation decisions relating to the planning, implementation, management, or oversight of hardware and/or services related to data storage and/or data computing. Our survey panel is comprised of three distinct decision/influence categories:

• Primary Decision Makers, having a very high level of involvement in decisions, including being the primary or sole decision maker.

• Decision Influencers, having a moderate level of involvement, influencing but not making decisions.

• Dual Influencers/Decision-makers, having a high level of involvement in both influencing and making decisions but not being considered a Primary Decision Maker.

The breakdown of influence for our survey panel is as follows:

BREAKDOWN OF INFLUENCE/DECISION CATEGORIES

Size of Organization Requirement: We established a minimum organizational size (across all global locations) of 500 employees, with a further quota limitation that no more than

CEO Chief Executive

Officer

12%

CIO Chief Information

Officer

17%

CTO Chief Technology

Officer

23% CDO Chief Digital Officer

7%

CMO Chief Marketing Officer

2%

COO Chief Operations

Officer 2%

CFO Chief Financial Officer

1%

Other Executive or C-Suite Title

1%

Senior Management

(SVP, EVP, VP, BU Lead, Head of

Apps)

16%

Director, Manager,

Team Lead

20%

PRIMARY DECISION MAKERS

65%

KEY INFLUENCERS & DECISION

MAKERS

29%

6% Very high level of involvement, a primary decision maker

High level of involvement, influencing or making decisions

Moderate level of involvement, influencing but not making decisions



25 percent of our survey panel would be outside our core target of between 1,000 and 49,999 global employees.

SIZE OF GLOBAL ORGANIZATION Our survey also included questions designed to verify that the respondent’s organization was actively using data serving and computing technologies and/or services, and that the respondent had a working knowledge of the subject. In addition to the qualification requirements set forth above, we set certain quota requirements to ensure an industry and geographical balance and the validity of the survey results. Industry Breakdown: Our survey targeted 6 key industries, or sectors. Additionally, we noted non-core sectors, including Travel & Hospitality, Transportation, Media & Publishing, and the Public Sector, within the Other category. Industry definitions follow the breakdown:

INDUSTRY/SECTOR BREAKDOWN What defines an industry or sector? Our survey respondents are asked to self-identify with a set of standard definitions.

Banking & Financial Services Includes capital markets, investment banking, insurance, etc. Energy & Utilities Includes water, electric, oil, gas, renewable, & nuclear; discovery, extraction, production, distribution, consumption, & disposal, etc. Healthcare & Pharma Includes medical, medical equipment, diagnostics, professional services, R&D, etc.

50,000 or more

10%

5,000 -49,999

32%1,000 -4,999

42%

500 - 999

15%

High-tech(n161)

32% Industrials & Manufacturing (n85)

17%

Banking &

Financial (n67)

13%Energy & Utilities

(n51)

10%

Retail & Consumer

Products (n51)

10%Healthcare & Pharma (n30)

6%

Professional Services (n29)

6%

Other (n28)

6%

Banking & Financial Svcs Includes capital markets, investment banking, insurance, etc. Energy & Utilities Includes water, electric, oil, gas, renewable, & nuclear; discovery, extraction, production, distribution, consumption, & disposal, etc. Healthcare & Pharma Includes medical, medical equipment, diagnostics, professional services, R&D, etc. High-Tech Includes telecom, communications, computing, cloud, mobile, software, hardware, semiconductors, etc. Industrials & Mfg Includes capital goods, manufacturing, machinery & production equipment; chemicals, construction materials, metals & mining, & paper, etc. Retail & Consumer Prod. Includes discretionary products, automotive, household goods, apparel, hardware, retail, e-commerce, etc.



High-Tech Includes telecom, communications, computing, cloud, mobile, software, hardware, semiconductors, etc. Industrials & Manufacturing Includes capital goods, manufacturing, machinery & production equipment; chemicals, construction materials, metals & mining, & paper, etc. Professional Services Includes consulting, staffing, legal, services for hire, etc. Retail & Consumer Products Includes discretionary products, automotive, household goods, apparel, hardware, retail, e-commerce, etc.

Geographical Breakdown: Our survey was designed to be global in nature, and we sought to balance our respondents between four primary and two secondary markets as noted below. Note that prospective survey panelists were required to demonstrate they could answer the survey in English.

RESPONDENTS BY GEOGRAPHY

AsiaPAC (including Australia, India, Japan, New Zealand,

Singapore, South Korea)

27%

EMEA (Europe, Middle East, Africa)

31%

Greater China (China, Hong Kong, Macau, Taiwan)

14%

Latin America (includes Central and

South America)

8%

North America

20%

WORKPLACE TRANSFORMATION EXECUTIVE SUMMARY


EXECUTIVE SUMMARY What is the state of workplace transformation today? Fluid, but with direction and purpose.

Workplace transformation involves a balance of investing in people, process, and technology. It’s not about focusing on devices and a broad set of applications but rather being laser focused on fostering collaboration through simplification and agility. Furthermore, it should support the needs of office workers, remote employees and contractors alike. If employed effectively, workplace transformation will attract top notch talent and mitigate attrition. The results will culminate in reduced operating expense, improved productivity and greater profitability for organizations of any size. Specifically, and within this survey, we identify the following top findings: 1 ON THE TOPIC OF ORGANIZATION AND EMPLOYEE EFFICIENCY

Organizations Must Link Organizational and Employee Efficiency. Organizations have to resolve sacrificing employee productivity for the sake of reducing operating expenses. There are strategies that can be employed to meet both objectives.

2 ON THE TOPIC OF DIGITAL SUPPORT CAPABILITIES

Digital Support Capabilities Should Be Tailored to Specific Needs. One size does not fit all in the deployment of applications to assist knowledge workers in completing their job duties. Effort should be spent by management to tailor based on improved employee engagement and their specific scope of duties.

3 ON THE TOPIC OF APPLICATION MANAGEMENT

Application Management Is Key. Modernization, scalability, and remote upgradability are the new table stakes for an ever-increasing mobile workforce. New infrastructure has the potential to serve users faster and reduce IT complexity.



4 ON THE TOPIC OF COLLABORATION TOOLS

Collaboration Tools Must Be Simplified and Focused. Collaboration tools must be simple to use and relevant to a particular task. Organizations should also be mindful of the interconnectivity between necessary stakeholder groups and the tools each utilize.

5 ON THE TOPIC OF THE GIG ECONOMY

The Impact of the Gig Economy is Real. The rise of contractors in a highly fluid, talent-driven model has specific technical and organizational ramifications. As employers and employees rethink the traditional employment model, the challenges of workplace, retention, and satisfaction must still be addressed. Companies are well served to anticipate the requirements and be proactive versus reactive in the management of automation and refocusing talent.

6 ON THE TOPIC OF AUTOMATION

Automation is Within the Workplace to Stay. RPA (robotic process automation) may not be at the forefront of media hype as it once was but this technology has been quietly and efficiently working its way into technology and the IT department as business units look to automate repetitive tasks, reduce costs, increase accuracy and auditability, and refocus human talent on higher-level tasks. As RPA continues to grow smarter and become more tightly integrated it’s clear there are organizational ramifications that can be viewed as positive or negative. Companies are well served to anticipate changing process and talent requirements accordingly.

7 ON THE TOPIC OF THE PHYSICAL WORKPLACE

Physical Workplace Fads Are Just Fads. Investment in physical workplace fixtures aimed at improving efficiency or productivity have not proved to be enduring over time. Rather, a longer-term balance of in-office environmental enhancements and technology deployment will benefit the entire workforce.



8 ON THE TOPIC OF LOCAL VS REMOTE WORKERS

Balancing the Needs of Remote and Office Employees is Important Yet Overlooked. Remote and office employees should be afforded the same access to resources. Imbalances cause friction and have the propensity to diminish retention and morale.

9 ON THE TOPIC OF WORKPLACE TRANSFORMATION

Workplace Transformation Investment Considerations Should be Strategic. Organizations should view workplace transformation as a strategic way of maintaining its competitive advantage. Through incremental investment, employee satisfaction will remain high and likely incubate corporate product and services innovation.

WORKPLACE TRANSFORMATION DRIVERS & OUTCOMES


ISSUE ONE DRIVERS OF WORKPLACE TRANSFORMATION Broader scale workplace transformation concepts are favored over more personalized solutions. To better understand the drivers, or goals and outcomes, of workplace transformation, we focused on identifying both the preferred outcomes as well as the key areas of investment. PREFERRED OUTCOMES When it comes to the driving factors behind workplace transformation, improved efficiency and cost optimization, along with better employee communication and collaboration, top the list. Surprisingly, improved employee productivity was the least-cited outcome or driver.

But that doesn’t tell the whole story. When we look at the breakdown by roles, we find that executives in the C-Suite are more focused on employee personalization, while senior and middle

50%

75%

63%53% 54%

46%

0%

25%

50%

75%

Personalizationof work

for Employees

ImprovedEfficiency &

Cost Optimization

BetterEmployee

Communication& Collaboration

IncreasedEmployee

Retention &AttractingTop Talent

EnablingInnovation

ImprovedEmployee

Productivity

Perc

ent

WE ASKED WHAT OUTCOMES WERE CONSIDERED WHEN MAKING TECHNOLOGY & PROCESSINVESTMENTS TO TRANSFORM THE WORKPLACE

You might expect these to be more closely aligned, but ‘more for the same’ seems to be lagging behind ‘same for less’ in this case.

75%

Percent of respondents indicated that improved efficiency and cost optimization was an expected outcome of workplace transformation. OBSERVATION One would expect that improved efficiency and cost optimization might be more closely aligned to the desire to bolster employee productivity but the latter lags behind.



management are not necessarily aligned to this vision. If this disconnect is not resolved, employee satisfaction will diminish, and attrition could result. Popular workplace trends also need more focus with an emphasis on rapid adoption. TRANSFORMATION INVESTMENTS Understanding exactly where organizations are currently expending effort and investment dollars is key to understanding how they are prioritizing resources and can provide insight into synergy and/or gaps between their desired outcomes. We asked our panel to identify both current and future investments:

Current investment areas are focused on proactive & predictive digital support, digital transformation of workspace systems, and improving employee productivity. But looking at where

50%47%

45%

34%31%

28% 28% 28%31%

19%21% 20% 19%

0%

10%

20%

30%

40%

50%

Proactiveand PredictiveDigital Supportand/or Training

Modern Mgmtor Unified

Endpoint Mgmt

Collaborationand

Knowledge Mgmt

DigitalTransformationof Workplace

Systems

ImprovingEmployee

Productivityor

Engagement

Gig EconomyEnablement

TransformingPhysical and

VirtualWorkspaces

Task Automationvia RPA (Robotic

ProcessAutomation)

Remote or

Mobile Work

Defining Role orEmployee-specific

WorkplaceSolutions

Change Monitoringor Management(of employees)

WHERE ARE ENTERPRISES INVESTING TODAY AND WHERE ARE THEY EVALUATING OR PLANNING TO INVEST

Currently Investing Evaluating Now Investing within 3 - 6 months

OBSERVATION Proactive and predictive digital support ranked as the highest consideration for workplace transformation with RPA and the Gig Economy the weakest. We believe this will change over the coming 2 – 3 years.



enterprises are currently evaluating and/or where they will be investing within only six months paints a different picture. Modern or unified equipment management, the gig economy, and change monitoring quickly become top focal points for investment and implementation. To determine if investment areas actually tied to priorities (and to differentiate between areas of spend vs areas of priority), we asked our survey panel to select their top three investment areas today. Here we see a much clearer picture of where priorities really exist:

Interestingly, half to three-quarters of respondents are open to initial adoption and/or evaluation of all eleven workplace transformation activities, but after initial deployments, there are indications of flagging momentum that will ultimately result in workplace transformation failure. Furthermore, technology investments are consistently ranked as the top priority, but a balance between human resource and technology investment needs to be struck as an imbalance could result in poor morale

49%45%

40%

45%

41%

13%

20%

15% 16%13%

3%

0%

10%

20%

30%

40%

50%

Proactiveand PredictiveDigital Supportand/or Training

Modern Mgmtor Unified

Endpoint Mgmt

Collaborationand

Knowledge Mgmt

DigitalTransformationof Workplace

Systems

ImprovingEmployee

Productivityor

Engagement

Gig EconomyEnablement

TransformingPhysical and

VirtualWorkspaces

Task Automationvia RPA (Robotic

ProcessAutomation)

Remote or

Mobile Work

Defining Role orEmployee-specific

WorkplaceSolutions

Change Monitoringor Management(of employees)

INVESTMENT AREAS CONSIDERED "TOP THREE" TODAY



and mitigated success. Finally, certain industry verticals are consistently lagging, thus companies should exploit endemic weaknesses as low hanging fruit opportunities to gain a time-to-market competitive advantage. BOTTOM LINE Workplace transformation is all about improving efficiencies and cost optimization. Key findings indicate:

• ½ to ¾ of companies are evaluating and/or investing widely across all eleven digital enablement concepts that we offered.

• Current focus is on digital support and proactive support of digital systems. Digital Transformation and Employee engagement are also high priorities currently.

• Over the course of the next 2 years, more than 90% of our panel see themselves investing in all of these areas.

• RPA and Gig Economy are the weakest for current investment, but both show significant interest with high evaluation numbers and planned investments. However, they are afterthoughts when it comes to prioritizing resources and initiatives. We believe this will/must change over the coming 2-3 years.

• LATAM has an interesting (relative) lack of focus on collaboration with regard to transformation of workplace systems – you need collaboration to transform the processes.

• Retail & CP and High-tech leach in focus on employee productivity, engagement, and training (inline with the lifestyle aspect of the industries)

WORKPLACE TRANSFORMATION PROACTIVE & PREDICTIVE SUPPORT


ISSUE TWO PROACTIVE & PREDICTIVE DIGITAL SUPPORT For the most part, a focus on devices and broader application sets for furthering employee productivity has reached a saturation point. Rather, more transformative opportunities exist that are centered on human resources, travel, and onboarding new team members. When It comes to businesses making investments in proactive and predictive digital support, this is an area that has already taken off across the majority of industries and geographies. In fact, with 79% of companies currently offering some version of it and another 17% in the planning phase, that only leaves a small number of companies that are not adhering to this trend.

79%

17%

5%

0% 25% 50% 75%

Yes

No (but we plan to)

No (and we do not plan to)

ARE YOU OFFERING PROACTIVE AND/OR PREDICTIVE DIGITAL SUPPORT?

OBSERVATION Companies have done a good job of making early investments in proactive and predictive digital support solutions. However, they have not necessarily done a great job of helping employees understand what is available and how to benefit from those solutions.



We then looked at where the efforts for proactive and predictive digital support were being focused:

While adoption numbers remained high in all 6 categories with the lowest current rate of adoption being 61.2% for access to company information, it quickly became apparent that the early adoption of proactive and predictive digital support was around device management, starting at the desktop and moving toward the mobile device and its applications (also including training). The heavy focus on devices meant lower early adoption of support tools to access to company information and support employee engagement/productivity. We believe the later focus on this has a lot to do with IT departments leading these initiatives and aligning their strategies to the goals of their leadership. While the CEO’s are very focused on employee engagement, the immediate reports to the CEO are more tactically focused on areas like physical device management, application support and training employees to use the tools being distributed. BOTTOM LINE Predictive and Proactive Digital Support has successfully found its way into many organizations, however, at this point in the product lifecycle of mobile and desktop devices, you would expect that. The challenge we see, is some of the more human to digital gaps have been slower to fill leaving the

79%69% 65% 61%

71%65%

19%29% 32% 34%

26%33%

2% 2% 4% 5% 4% 2%0%

25%

50%

75%

100%

Desktop Management& Support

Mobile DeviceManagement & Support

Application Support Access to CompanyInformation (Resourcessuch as HR Documents,Travel Forms, Employee

Directories, etc.)

Training Employee Engagement& Productivity

WHICH OF THE FOLLOWING HAVE YOU INTRODUCED (OR PLAN TO) TO SUPPORT PROACTIVE & PREDICTIVE DIGITAL SUPPORT?

Currently In Place Plans to Introduce (12 - 24 months) No Plans

OBSERVATION Companies have done a good job of making early investments in proactive and predictive digital support solutions. However, they have not necessarily done a great job of helping employees understand what is available and how to benefit from those solutions.



CEO at odds with their immediate reports. Ultimately, digital tools should create more employee engagement and companies would be best served by investigating gamification as a means to achieve this objective. An excellent example are companies that institute health and wellness programs in an effort to reduce absenteeism due to illness. In many programs, employees can complete objectives such as weight loss or smoking cessation, track progress, and earn incentives. Key findings indicate:

• Most companies offer some level of proactive and/or predictive digital support. Of those that do not, most plan to in the near future.

• The industries that are leading in offering proactive and predictive digital support are High-Tech, Pharma and Banking/Financial while Professional Services is surprisingly lagging behind.

• When it comes to proactive and predictive digital support, Desktop Management and Support is the most popular current initiative.

• HR and Employee Engagement are set to be the next big area of focus over the next 2 years.

WORKPLACE TRANSFORMATION MOBILE DEVICE MANAGEMENT


ISSUE THREE MOBILE DEVICE MANAGEMENT Tracking, security, and data protection are the highest priorities, but companies should also be mindful of remote configuration management and updates as well as app modernization. Knowledge workers are taking advantage of wireless connectivity to free themselves from the confines of traditional office spaces. The applications that play mission critical roles in the execution of daily tasks must also follow suit. Therefore, remote upgradeability with a focus on deployment modernization are the new table stakes. Microservices-based architectures and containerization are important considerations in ITs ability to deliver agility, scale, and consistent access. It is also prudent that organizations monitor emerging technologies related to mobile device management (MDM) and identity access management (IAM). As an example, biometrics have the potential to improve cybersecurity resiliency and data protection over legacy methods of locking out mobile devices. We asked our survey panel to identify if they currently or plan to support MDM:

With 93 percent of our survey panel planning to or currently offering MDM, the key is where those investment dollars are being spent. When we look at the breakdown, there are no real laggards in

68%

26%

7%

0% 25% 50% 75%

Yes

No (but we plan to)


ARE YOU OFFERING MOBILE DEVICE MANAGEMENT SUPPORT?

93%

Percent of respondents are using or planning to use MDM. OBSERVATION CFOs are the most vocal about not supporting MDM (and we’re not sure why). Who isn’t all in on MDM? Sectors catching up: 52% Professional Svcs 50% Healthcare/Pharma But both are above average in planning to support MDM in the future.

WORKPLACE TRANSFORMATION MOBILE DEVICE MANAGEMENT


terms of deployment even though overall adoption is slightly behind that of proactive and predicted digital support. The only exception might be support for emerging technologies, such as AR/VR and biometrics, but even there, 51 percent are currently supporting with 42 percent planning to introduce support within 12 – 24 months.

BOTTOM LINE Organizations need to scale support to meet the growing demands of a mobile workforce. While current implementations are solid, the level of “plan to introduce” is a bit high given the massive adoption curve of mobile technology. Key findings indicate:

• Of the 26% that indicated no current MDM initiatives, over half indicated they have at least one option currently in place.

• We believe many organizations support these initiatives but have not driven this support as part of a concrete plan.

61%

68% 66% 68%

56% 57%

51%

33%30% 32% 30%

38% 38%42%

6%2% 2% 3%

6% 5% 7%

0%

25%

50%

75%

MobileDevice

Tracking(Geolocation)

MobileSecurity

& Policies

DataProtection& Wiping

Cybersecurity& Threat

Detection/Prevention

RemoteConfiguration

& Updates

ApplicationModernization

Program

Support forEmerging

Technologies(such as AR/VR,Biometrics, etc.)

WHICH OF THE FOLLOWING HAVE YOU INTRODUCED (OR PLAN TO) TO SUPPORT MOBILE DEVICE MANAGEMENT?

Currently In Place Plans to Introduce (12 - 24 months) No Plans

WORKPLACE TRANSFORMATION COLLABORATION & SHADOW APPS


ISSUE FOUR COLLABORATION Shadow IT has opened the door to a wide number of collaboration technologies that are being deployed within enterprises to bridge the communications gap. We asked our survey panel if they presently offer on, or plan to in the future, collaboration tools to their workforce. Surprisingly, only 73 percent currently utilize collaboration tools, with 8 percent indicating they have no plans for the future.

But the interesting data is revealed when we dig into the collaboration tools enterprises are using today or plan to within the near future. Our survey data clearly showed a preference for collaboration suites, with Microsoft, Cisco, and Google among the top five. Surprising in the mix is the presence of Facebook Workplace in the top five, and the absence of Slack in the same top tier. So where does Facebook usage peak? It’s in the media & publishing sector, a market where Facebook itself is often at the core of publishing and social engagement activities. Additionally, Facebook

73%

19%

8%

0% 25% 50% 75%

Yes

No (but we plan to)


PERCENT OF ENTERPRISES OFFERING COLLABORATION TOOLS (IN SUPPORT OF DIGITAL TRANSFORMATION)

OBSERVATION Surprisingly, the Energy & Utility Sector tops the list while Banking & Financial trails all others.



promoted an extended period of free access for Workplace, which we believe has resulted in the high placement in our survey.

All too often, though, collaboration tools appear to augment email instead of replacing it with a more dynamic, real time communication path. Case in point, we asked our survey panel to estimate the impact the introduction of collaboration tools have had on the use of email. Surprisingly, 48 percent indicated email usage had actually increased.

Collaboration tools kill email, right? Nope. In fact, we believe collaboration tools—particularly those that lack full management or open exchange with

outside app—may actually increase the use of email in a more efficient, collaboration-driven model.

60%

48%54%

67%63% 64%

36% 37% 34% 35%30%

35%

24%27% 29% 29%

33%37%

27%32%

10%16%

22%

6% 8% 7%

31%26%

38% 34%

0%

25%

50%

75%

Cisco/WebexTeams

(IncludingWebex)

Citrix(GoToMeeting)

FacebookWorkplace

Microsoft Teams(Including Skypefor Business and

Lync)

Doc-basedCollaboration

(Dropbox, Box,OneDrive, Drive

etc.)

Suite-basedCollaboration

(G-Suite, Office365, etc.)

Slack SalesforceChatter

Yammer Zoom

WHICH OF THE FOLLOWING COLLABORATION TOOLS HAVE YOU INTRODUCED (OR PLAN TO SUPPORT)

Currently In Place Plan to Introduce (12 - 24 months) No plans

OBSERVATION Of those respondents that indicated they did not currently offer collaboration tools, but planned to in the future, at least half subsequently indicated they had at least one collaboration tool currently in place. We believe many organizations are aware of “shadow” apps and tools but do not offer official support or did not roll out the app/ tool as part of a larger plan. Do you offer collaboration tools? No. What about this specifically? Oh yeah, we have that in our shop. Somebody from the team signed up for it.



So, if collaboration tools actually increased the level of email activity, that might not bode well for overall productivity, right? In what might be a case of a self-fulling prophecy, when we asked our survey panel to estimate what they expected in terms of productivity changes, only 10 percent expected productivity to drop. And for those organizations, they estimate that productivity actually did decrease, but by less than anticipated. In fact, within a few points, the expectations of productivity change, either positive or negative, was realized by the implementing organization. As we mentioned above, this may be a case of forcing reality to conform to expectations, and we certainly have seen many enterprises that mark to market for this type of (often subjective) measure.

12%

36%

27%

-19%

-7%

-20%

0%

20%

40%EMAIL USAGE AFTER COLLABORATION TOOLS INTRODUCED

Increased Significantly (> 25%) Increased Slightly (5 - 25%)

Use is about the same (+/- 5%) Decreased Slightly (down 5 - 25%)

Decreased Significantly (down > 25%)

OBSERVATION We believe that while the usage of email can increase significantly after the implementation of other types of collaboration tools, the increase may likely be a result of increased use of a more-effective tool. Collaboration tools may actually improve the value, or allow for tighter management, of email systems – particularly if they are part of a collaboration suite.



The data also suggests some clear positives in terms of expectations. 68 percent of enterprises achieve improvements in overall productivity after the introduction of collaboration tools, while only a quarter realized no perceived improvement at all. The adage of “less is more” could be applied to the explosion of collaboration tools today. Organizations that streamline and standardize on a defined collaboration set can realize improved usability and productivity while eliminating siloed activities that tend to drive IT support complexity. Companies should be mindful of “time suck” activities that deliver little to no appreciable efficiencies. Tools should also not be overly discrete—if they are, it may point to an ecosystem issue where investigation into connectors, bridging, and data portability within toolsets is important.

BOTTOM LINE The vast majority of companies >90% are investing in collaboration tools to enable their digital transformation. However, agility and simplification are key to widespread adoption of collaboration tools as the flow in moving from a chat tool to sharing a document into a team environment to later facilitate access collaboratively needs to be as simple as possible.

27%

42%

22%

-7% -3%

25%

43%

25%

-5% -2%

SignificantIncrease(> 25%)

SlightIncrease(5 - 25%)

Remain thesame (+/- 5%)

SlightDecrease

(down 5 - 25%)

SignificantDecrease

(down > 25%)Anticipated Impact (what we expected before implementation) Actual Impact (what we realized after implementation)

IMPACT OF COLLABORATION TOOLS ON PRODUCTIVITY(ANTICIPATED vs REALIZED)

OBSERVATION An increase in email may bode well for productivity. Survey respondents who saw an increase in the use of email after the implementation of collaboration tools were slightly more likely to experience greater improvements in overall productivity than those that saw email usage decline.



Key findings indicate:

• Of the 19% that indicated no current collaboration initiatives, over half indicated they have at least one option currently in place.

• We believe many organizations support these initiatives, or are at least aware of “shadow apps” in use, but have not driven this support as part of a concrete plan.

• About 48% feel they are emailing more even though collaboration tools are in place • Most people are getting the anticipated return in productivity due to the investment in

collaboration tools.

OBSERVATION We believe many organizations support collaboration tools but don’t manage to a definitive plan. Could the increase in collaboration tools be driving increased communications? And could email be the “common thread” between too many disparate systems? When implemented properly we believe so.

WORKPLACE TRANSFORMATION THE GIG ECONOMY


ISSUE FIVE THE GIG ECONOMY Companies need to think strategically about the Gig Economy and how it will impact workplace transformation. The Gig Economy is a labor market characterized by the dominance of contractors and freelancers versus permanent employees. Today, the use of temporary employees is gaining significant momentum for a number of reasons. As workers reach close to retirement age it provides a level of income flexibility as a bridge to full retirement. For those in between jobs it provides continuity of work during searches for permanent employment. For those looking to find a flexible work environment it provides a level of agency that most full-time positions cannot provide. And for organizations it allows functions to be gap filled on demand or a specific skill-set to be retained on a less costly basis than full-time employees. The opportunity here is to find simpler tools and apps that match contractors to engagement opportunities with less friction than traditional contracting efforts of the past. At a high level it is simplification. A great case in point is the disruption that ridesharing has brought to a taxi cab industry, a market traditionally fraught with inconsistent and unreliable service. Ridesharing apps have delivered a tool that leveraged the advances of 4G LTE access and GPS to lower the barrier to access and dramatically improve tracking, ease of payment, and predictability for users. This is the very notion that should be taken into account by organizations when considering the gig economy within the confines of a digital workplace transformation plan. To gain insight into the current and evolving state of the gig economy, we asked our survey panel if they currently, or plan to, leverage gig employees for project work within their organization.

80%

Percent of respondents already or anticipating participating in the Gig Economy. Companies in the healthcare, retail, and energy sectors are least likely to embrace the gig economy. Organizational size doesn’t seem to be an inhibitor of interest in the gig economy with one minor exception: 25.3% of organizations with between 500 and 999 employees say they have no plans to use gig workers in the future (compared to 15.8% of organizations with 1,000 or more employees).

46%

Percent of respondents already participating in

the Gig Economy.

34%

Percent of respondents anticipating participating

in the Gig Economy.



While the percent of enterprises currently participating in the gig economy is less than half, we believe this number is actually fairly substantial given the relatively recent emergence of the gig economy model. Such a shift from full-time, in-house employees to gig workers is not always an easy task, and lessons learned in the more traditional “contractor” model may not always apply. But the promise of the gig economy is strong and an overwhelming majority of our survey panel are confident enough in the model, and its mutual employer-worker benefits, to project the levels of anticipated workloads for the coming 24 months.

The data indicates a shift towards greater adoption of the gig model where the number of organizations utilizing gig workers for a small portion of workforce requirements (20 percent or less) declines over the coming 24 months. In tandem, we see a projected increase in the overall workload being serviced by gig workers where two-thirds of gig-powered organizations are leveraging the model to satisfy between 21 and 60 percent of overall labor requirements. This shift will require a significant transformation of both the labor pool and the technology and processes required by organizations to properly manage this model. But why the shift? There are a number of reasons why the gig economy is expanding but we also believe that embracing the gig

30%

37%

17%

10%

4% 3%

9%

37%

29%

13% 11%

1%0%

20%

40%

1 - 20% 21 - 40% 41 -60% 61 - 80% 80% + None (0%)Today 24 Month Target

HOW MUCH PROJECT/WORK IS COMPLETED BY GIG WORKERS TODAY,AND WHAT IS ESTIMATED WITHIN THE COMING 24 MONTHS?

OBSERVATION Percent of respondents already or anticipating participating in the Gig Economy. Two-thirds of companies looking to leverage the gig economy within their workforce anticipate close to two-thirds of project/work requirements will be completed by gig economy workers within the coming 24 months. Even gig-from-the-start businesses continue to face significant challenges in managing and growing their workforce and labor pool.



economy model is not without overhead and challenges and that there is likely a sweet spot for many organizations where a certain economy of scale and/or efficiency of process is achieved. BOTTOM LINE While less than half of all surveyed organizations are participating in the gig economy today, at least 80 percent of those surveyed plan to at some point, the majority of which will rely on gig workers for between 21 and 60 percent of their labor requirements. Organizations need to be ready and must start planning now in order to effectively make this operational transition. Key findings indicate:

• Over two-thirds of companies moving to the gig economy plan to have up to 60 percent of work efforts completed by gig economy workers within the coming 24 months.

• While there is definite interest in the gig economy, few companies see it as a mechanism to handle the majority of their anticipated project workload (only 14 percent anticipate using gig workers for more a majority of their workforce requirements).

• For the foreseeable future, we anticipate the primary use of gig workers as a means to augment or expand existing, core employee resources

WORKPLACE TRANSFORMATION THE PHYSICAL & VIRTUAL WORKPLACE


ISSUE SIX PHYSCIAL AND VIRTUAL WORKPLACE TRANSFORMATION A number of workplace fads have been embraced in the past, including open offices, hoteling, and sleep pods, that have not had an appreciable impact on employee productivity or satisfaction. Workplace transformation is often discussed in term of the digital aspect, a problem to be solved with technology and technology alone. But for every aspect of the digital or virtual workplace there is a physical aspect that must be considered and transformed in tandem. This includes everything from fixed office locations and common areas to individual offices workspaces. It’s no secret that employees prefer to work for companies that have modernized and invested in their workplace, and employers prefer to have employees that are comfortable and productive and enjoy being part of the team. And that means focusing on transformation initiatives that address both the physical and virtual aspects of work, and not just from the deployment of a new piece of technology or ergonomic asset. Over the years there have been numerous short-term fads or fixes to the workplace that have been initially embraced yet were ultimately met with skepticism. These spot-fixes are not transformative and often fail to originate from a holistic or ecosystem approach where the transformation of the workplace is part of an evolving strategy that considers all aspects of the future of work. For employees that work in a traditional office environment there should be a balance of environment enhancement and technology. For remote employees there must be a strong consideration of technology that ensures always on connectivity and access to corporate resources that places all employees and workers on an equal footing. Given that a workplace can often be specialized and considered an extension or part of the corporate culture, we asked our survey panel to provide insights into the one aspect that is measurable across all: the perceived need for transformation and the realistic accomplishments to date. Specifically, we asked our panel to estimate what percentage of their existing physical (e.g. fixed office locations, offices, workspaces, etc.) and virtual workspaces (e.g. collaborative facilities, shared space, smart meeting rooms, etc.) had been transformed and/or updated over the prior 2 – 3 years and what percentage did they expect to achieve over the coming 24 months. Both tracked extremely

OBSERVATION Healthcare, Retail, and High-tech industries are anticipating the most physical transformations in the workplace.



closely to each other, which we take as a positive sign that organizations are hopefully addressing the physical and virtual together.

The downward (< 41 percent) and upward (>40 percent) trends are good indicators of an acceleration. Today, only 15 percent have transformed more than 60 percent of their physical workplace, a number that should increase to 28 percent within the coming 24 months.

21%

36%

25%

12%

3% 3%

11%

30% 30%

17%11%

2%

1 - 20% 21 - 40% 41 - 60% 61 - 80% 80%+ None (0%)Prior 2 - 3 years 24 Month Target

PHYSICAL WORKPLACE TRANSFORMATIONPERCENT OF PRIOR 2 – 3 YR EFFORTS AND PERCENT OF 24 MO TARGET

24%

32%

24%

11%5% 4%

13%

27% 28%

20%

10%

2%

1 - 20% 21 - 40% 41 - 60% 61 - 80% 80%+ None (0%)Prior 2 - 3 years 24 Month Target

VIRTUAL WORKPLACE TRANSFORMATIONPERCENT OF PRIOR 2 – 3 YR EFFORTS AND PERCENT OF 24 MO TARGET



Similarly, only 16 percent have successfully transformed more than 60 percent of their virtual workspaces at present, a number projected to increase to 30 percent within the coming 24 months. When we look at the data, and compare the different size businesses, we can see gaps in both physical and vertical transformation efforts.

0%

10%

20%

30%

40%

1 - 20% 21 - 40% 41 - 60% 61 - 80% 80% + None (0%)

ALL Prior 50,000 or more 5,000 - 49,999 1,000 - 4,999 500 - 999

PHYSICAL WORKPLACE TRANSFORMATIONPERCENT OF PRIOR 2 – 3 YR EFFORTS BY EMPLOYEE SIZE (W/ ALL)

0%

10%

20%

30%

40%

1 - 20% 21 - 40% 41 - 60% 61 - 80% 80% + None (0%)

ALL 24 Mo Target 50,000 or more 5,000 - 49,999 1,000 - 4,999 500 - 999

PHYSICAL WORKPLACE TRANSFORMATIONPERCENT OF 24 MONTH TARGET BY EMPLOYEE SIZE (W/ ALL)



For example, enterprises with between 5,000 and 49,999 employees out-perform in terms of the prior physical transformation in the 51 – 80 percent completion range while enterprises 50,000+ have more aggressive targets at the high-end. Comparing the data for virtual workplace transformation reveals similar over/under-performance.

0%

10%

20%

30%

40%

1 - 20% 21 - 40% 41 - 60% 61 - 80% 80% + None (0%)

ALL Prior 50,000 or more 5,000 - 49,999 1,000 - 4,999 500 - 999

VIRTUAL WORKPLACE TRANSFORMATIONPERCENT OF PRIOR 2 – 3 YR EFFORTS BY EMPLOYEE SIZE (W/ ALL)

0%

10%

20%

30%

40%

1 - 20% 21 - 40% 41 - 60% 61 - 80% 80% + None (0%)

24 Month Target 50,000 or more 5,000 - 49,999 1,000 - 4,999 500 - 999

VIRTUAL WORKPLACE TRANSFORMATIONPERCENT OF 24 MONTH TARGET BY EMPLOYEE SIZE (W/ ALL)



Overall, the close alignment between physical and virtual workplace projections is interesting in that it is reasonable to assume that virtual workplaces, often rented or part of a services subscription, might be considered easier to update and transform. However, there may also be a counter in that virtual offices are not necessarily weighted as important as workplaces within an organization. BOTTOM LINE It’s no surprise that a blend of modernization and technology deployment can keep employee morale and productivity high. The key is to develop a strategy that aligns (and keeps on an equal basis) both physical and virtual workplace transformation initiatives as part of an over-arching workplace transformation strategy. Key findings indicate:

• Companies feel that about half of their workplaces need to be updated, however, not quite one-third of companies plan to meet that 50% target within the next two years.

• Virtual office transformation is expected to track very closely to physical office or workspace transformation.

WORKPLACE TRANSFORMATION ROBOTIC PROCESS AUTOMATION


ISSUE SEVEN ROBOTIC PROCESS AUTOMATION Robotic Process Automation (RPA) and other automation techniques will continue to be a topic of debate for the foreseeable future. Robotic Process Automation (RPA) provides the means to automate basic, repetitive tasks (i.e. Level 1) within the digital workplace, allowing employees to focus on higher-level (i.e. Level 2+) tasks that typically require a higher level of training or expertise and cannot easily be automated. Additional benefits can include improved processing time, increased reliability and accuracy, and the ability to create improved digital auditability. Automation is considered a key component of the future of work and workplace transformation. We asked our survey panel to identity the percentage of current work actives that could be automated that have already been automated with RPA, and then indicate their 24 month target.

The projected growth is similar to that of other workplace transformation initiatives, with a fairly significant increase in anticipated deployment of RPA (in the 41 – 80 percent range) expected over the coming two years.

0%

10%

20%

30%

40%

1 - 20% 21 - 40% 41 - 60% 61 - 80% 80% + None (0%)

Today 24 Month Target

RPA (ROBOTIC PROCESS AUTOMATION)PERCENT OF SUITABLE TASKS PRESENTLY AUTOMATED & 24 MONTH TARGETS

53%

Percent of respondents that anticipate having more than 40 percent of suitable workplace tasks automated using RPA within the next two years. This includes about 25 percent of companies that are targeting 60%+ of their suitable tasks to be automated over the same time period.

WORKPLACE TRANSFORMATION ROBOTIC PROCESS AUTOMATION


BOTTOM LINE As companies displace workers with RPA technology there exists a strong need for upskilling and training for new positions less impacted by automation. Consequently, it’s crucial that organizations present RPA in the right context as a method to improve the efficiency of more mundane tasks. Executive management should also identify new areas of opportunity that have the potential to deliver personal development and incremental earning potential for displaced employees. If RPA is not addressed in this manner, it could be damaging to company culture and viewed in a negative light of bolstering profitability at the expense of employees. Investment in RPA will grow over time, and companies that manage their implementation plans proactively with employees will reap the rewards. Key findings indicate:

• 25% of companies are targeting 60%+ of their activities to be automated in the next two years, which is the largest growth area while most companies are planning to keep it about the same to a slight increase.

• Deployment of RPA shows a solid growth, and thus disruption, at the high-end over the next two years.

OBSERVATION Energy, high-tech, and retail companies are expecting the most out of RPA over the coming two years. RPA will significantly affect the workplace and organizations must be prepared for it.

WORKPLACE TRANSFORMATION REMOTE, MOBILE & FLEX


ISSUE EIGHT REMOTE, MOBILE & FLEX WORKERS Remote workers are often viewed as “outperformers” of in-office counterparts, but companies aren’t necessarily treating them as such. The past two decades have seen an explosion in the mobile and remote workforce. Fueled by the availability of low-cost, ubiquitous communications services and the near-commoditization of mobile devices (both cellular and wifi), employees are demanding and achieving a higher-level of “where to work” autonomy than ever before. In turn, employers are able to minimize fixed office expenses all while leveraging software and apps to promote collaboration and the sharing of knowledge. To understand the current state of remote and mobile work, we asked our survey panel a series of questions pertaining to the availability of resources for remote employees, the level of adoption of remote/flex/mobile workers, the productivity of in-office vs remote/flex/mobile workers, and how employee satisfaction has changed in this new workplace model.

29%34%

19%

10%5%

2%

10%

28% 30%

21%

9%

2%0%

10%

20%

30%

40%

1 - 20% 21 - 40% 41 - 60% 61 - 80% 80% + None (0%)Today 24 Month Target

PERCENT OF EXISITNG WORKPLACE AND EMPLOYEE RESOURCES THAT AREEQUALLY ACCESSIBLE TO IN-OFFICE AND REMOTE/FLEX/MOBILE WORKERS

OBSERVATION Many organizations are embracing the move towards a remote workforce with both performance and job satisfaction on the rise. Over 50% of respondents anticipate the majority of employee resources to be available online within the coming two years. Note: This implies a corresponding increase in the risk of data security issues.



Key to the success of remote workers is their ability to access the necessary information they need to be productive employees on par with in-office workers. This includes not just job/task-specific information but corporate resources as well such as HR resources and collaboration/knowledge tools. It appears, based on the data, that while only 15 percent of enterprises have more than 60 percent of their corporate employee resources and tools online today, that number should double within the next two years. Still, this may be a significant challenge for many enterprises given the number of workers already operating remotely.

At present, 42 percent of enterprises have a minimum of 50 percent of their employees operating remotely at least 41 percent of the time. And it only goes up from there, as 27 percent of enterprises surveyed have more than 60 percent of eligible employees operating in a remote, flex or mobile model. When we compare the percentages of remote workers against the availability of online, corporate and job-related resources we begin to get a sense for the magnitude of the challenge facing organizations today. As more workers shift to a remote model the issue of information availability (and information security) becomes clear as does the potential lack of online resources as an inhibitor of future growth.

25%29%

25%

12%

5% 4%

20%23%

25%

16%

11%

6%

0%

10%

20%

30%

1 - 20% 21 - 40% 41 - 60% 61 - 80% 80% + None (0%)Greater than 50% of the time 100% of the time

PERCENT OF WORKERS THAT CURRENTLY OPERATE REMOTELY(50%+ and 100% OF THE TIME)

OBSERVATION 94% of companies surveyed are presently allowing some level of full-time remote workers and 96% are offering it at the very least part time. Most common for flex type (>50% remote) wore were companies having 21-40% of their workforce in such an arrangement. .



But has this gap between the growth of remote workers and the availability of online resources impacted employee efficiency and satisfaction? Perhaps but the situation is improving.

Looking back 24 months ago, 37 percent of all remote workers were considered to be under-performing in contrast to in-office workers, this while 25 percent were considered to be over-performing their in-office peers. Why the extreme perspectives? As remote work has become more commonplace, in part due to the rise of the gig economy, it has become clear that some jobs, employers and employees are better suited to this working model than others. For many workers that have never worked outside of an office, the challenges can be difficult to overcome (highlighting the need for remote employee access to work-related resources as part of an overall workplace transformation initiative). Even today, challenges such as collaboration, employee engagement and monitoring, and team-building are problematic for many. And while technology can help overcome some of these challenges, for many (particularly parts of the more experienced workforce) adapting to this model was not smooth transition.

13%

24%

35%

17%

8%3%

7%

16%

36%

30%

8%3%

7%

15%

22%

33%

21%

2%0%

10%

20%

30%

40%

UnderperformsSignificantly

(> 25%)

UnderperformsSlightly

(5 - 25%)

Similar(+/- 5%)

OverperformsSlightly

(5 - 25%)

OverperformsSignificantly

(> 25%)

NoRemoteWorkers

24 Months Ago Today 24 Months Estimate

REMOTE WORKER PRODUCTIVITY COMPARED AGAINST IN-OFFICE WORKERS(PAST VS PRESENT VS FUTURE)

OBSERVATION Over the past 2 years, companies see remote workers more positively with fewer companies see them as underperforming (8% improvement over two years ago).



But the issue of remote worker performance has improved over the past two years, with estimates of 38 percent of remote workers over-performing their in-office peers, while the percent of under-performers has dropped from 37 percent to only 23 percent. Looking ahead, the enterprises we surveyed expect the shift to be even more pronounced as employees and employers leverage new technologies and processes to improve the ability of remote workers to over-perform their in-office peers. The data suggests more than half of all remote workers are expected to over-perform while only 22 percent are expected to under-perform. We believe that part of this shift is a result of increased satisfaction on the part of remote workers – if they have the right working environment and support of their employer.

BOTTOM LINE It is critical that organizations balance the unique needs and requirements of its remote workforce and invest properly to give them the needed tools for connectivity and productivity. Failure here can result in creating isolation and dissatisfaction. Dissatisfied remote employees are consequently more likely to seek new employment opportunities that provide inclusion. Along these lines, organizations

11%

20%

37%

21%

9%

3%7%

14%

35%33%

8%3%5%

14%

24%

33%

23%

2%0%

10%

20%

30%

40%

UnderperformsSignificantly

(> 25%)

UnderperformsSlightly

(5 - 25%)

Similar(+/- 5%)

OverperformsSlightly

(5 - 25%)

OverperformsSignificantly

(> 25%)

NoRemoteWorkers

24 Months Ago Today 24 Months Estimate

REMOTE WORKER SATISFACTION COMPARED AGAINST IN-OFFICE WORKERS(PAST VS PRESENT VS FUTURE)

OBSERVATION Just two years ago over 30 percent of remote workers were considered dissatisfied, while today that number has dropped to just 21 percent and is expected to decrease to 19 percent over the coming two years. While remote worker dissatisfaction has slowly decreased the percentage of workers with higher job satisfaction is expected to increase to 56 percent.



should consider ways to offer flexibility in work assignments to keep remote workers engaged. And most importantly, afford remote workers access to the same tools and assets that office workers use. Unfortunately, organizations have been slow to make resources available for remote workers at the same level as desktop or in-office. That trend must change. Key findings indicate:

• Most companies have some degree of a remote workforce and view it positively. • Over 50% of respondents anticipate the majority of resources to be available online within

two years. • When it comes to “remote work” it appears there is a bit of “all in” strategy at work, with

more companies reporting more ”100% remote” than ”50% +” remote workers • Past remote worker underperformance is making improvement inroads today and remote

workers should excel in the future. • Remote worker job satisfaction has improved over the past 2 years and all indications are

that this should increase in the future.

WORKPLACE TRANSFORMATION BUDGET & FINANCIAL ISSUES


ISSUE NINE BUDGET AND FINANCIAL ISSUES Larger committed investment is necessary to ensure both short- and long-term success for many workplace transformation initiatives. Executing on a workplace transformation strategy is only as effective as the resources lined up behind it, and that includes budget to proper fund, maintain, and evolve over time. The data from our enterprise research is clear in expectations for increased workplace transformation initiatives. But do the budget expectations hold up? We’re not so sure in all areas. Transformation is not a one-shot effort, it is for many an ongoing evolution. There are ebbs and flows, but investments in the workforce are critical, particularly in a time when

A larger commitment is not simply relegated to technology, but it should also encompass employee training and process enhancement that mitigates bureaucracy and improves decisioning. Digital

14%

51%

24%

8%1% 2%

0%

10%

20%

30%

40%

50%

60%

IncreaseDramatically(> 25%)

IncreaseSlightly(5 - 25%)

RemainSteady(+/- 5%)

DecreaseSlightly(down 5 - 25%)

DecreaseDramatically(down > 25%)

UndecidedUnsure

BUDGET EXPECTATIONS (SPEND) OVER THE COMING 12 to 18 MONTHSFOR WORKPLACE TRANSFORMATION INIATIATIVES

OBSERVATION Most organizations anticipate a slight increase in workplace transformation budgets while only a small percentage are on track to realize significant budget increases. A little less than a quarter expect budgets to remain steady. This isn’t necessarily bad as some of these companies may have already have a significant budget and foresee that growth slowing in the near future.

WORKPLACE TRANSFORMATION BUDGET & FINANCIAL ISSUES


transformation is rapidly becoming a proxy or key performance metric for nearly all companies in all industries and the workforce is is not an area where management can afford to cut corners. Too few companies are making the proper investments in the people, tools and technologies required to transform business when outside macroeconomic pressures threaten. The corporate landscape is littered with examples such as the demise of video rental giant Blockbuster and the rise of Netflix, as well as the slow death of brick and mortar discount retailers Sears and Kmart and the growth of Amazon.com. Amazon’s “Day One” mantra and relentless, balanced investment in people, technology, and process has paved its way into new markets and subsequently created opportunities for its office worker, remote worker, and contractor stakeholders. BOTTOM LINE Most companies anticipate a slight increase in their budget for workplace transformation while a smaller percentage sees a significant investment coming their way. While we’re positive on the increases, 75 percent of all enterprises surveyed expect budgets to remain steady or a slight (5 – 25 percent) increase over the coming 12 to 18 months. Key findings indicate:

• A little less than a quarter expect to remain steady budget-wise. This isn’t necessarily bad as some of these companies may have a significant budget and foresee that to continue in the near future

• The Banking & Financial sector leads as the most aggressive growth with 24% of companies anticipating budgets to increase dramatically (>25%) over the coming 12 to 18 months.

• Who is lagging? Over 43% of Healthcare & Pharma companies anticipate budgets to remain steady, with only 7% expecting budgets to increase more than 25%.

OBSERVATION About 10 percent see a decrease, a group we suspect to be either under-performing companies that see themselves in survival mode or companies undergoing a market-positioning pivot/restart.

WORKPLACE TRANSFORMATION CONCLUSION


CONCLUSION SUMMARY INSIGHTS AND PREDICTIONS At the end of the day workplace transformation is about enabling change, the ability to adapt, and preserving and growing the workforce needed to thrive and remain competitive in a global economy that is increasingly under pressure and increasingly competitive. Most organizations are focused to some degree on workplace and digital transformation but there is ample opportunity for improvement. The process is a journey and its ultimate success is predicated on balanced investments in the areas of people, processes, and technology. Most organizations have a strategic plan in place and are aware of their stage in the technology buying cycle, but softer responses to intangibles such as employee satisfaction and engagement indicate a greater disconnect with respect to balancing investments in people alongside process and technology. Of particular challenge as the gig economy and tight labor market evolves is ensuring both remote and in-office workers have equal access to the tools, assets and resources – and each other – that are required. Ultimately a long-term investment and vision towards workplace transformation should be considered versus shorter term fads or fixes. Employing such a strategy will in the end maximize an organization’s return on its most precious resource, its workforce.

WE OFFER THE FOLLOWING KEY INSIGHTS INSIGHT ONE ON EMPLOYEE EFFICIENCY & INVESTMENTS Organizations Must Link Organizational and Employee Efficiency. Employee productivity must be tightly woven into the broader organizational goals of improving efficiency and reducing operating expenses. And the desired outcomes must be agreed upon by all. While 75 percent of our enterprise survey panel is focused on improved efficiency & cost optimization, CEO’s clearly prefer to focus on the personalization of the work experience. Establish the outcome first, with enough flexibility to adapt, then determine how resources will be invested. INSIGHT TWO ON PREDICTIVE SUPPORT Organizations need to be more confident in promoting their digital support capabilities for both proactive and predictive services. At present, 79 percent of enterprises are offering proactive & predictive digital support. And while enterprises in the high-tech, healthcare & pharma, and banking industries have done a good job in terms of early investments, all need to do a better job helping employees take advantage of these solutions.



INSIGHT THREE ON MOBILE DEVICE MANAGEMENT Tracking, security, and data protection are the highest priorities, but companies should also be mindful of remote configuration management, updates, and app modernization. Support for MDM (Mobile Device Management) is high, with 93 percent of enterprises surveyed are either using or planning to implement shortly, with a focus on cybersecurity, data protection, tracking, and more. But that 93 percent is deceiving as only around two-thirds have actually implemented to date. This touches on corporate risk and is much more than just a workforce issue. INSIGHT FOUR ON COLLABORATION Shadow IT has opened the door to a wide number of collaboration technologies that are being deployed within enterprises, but not all are sanctioned or supported. While 73 percent of enterprises officially support a range of collaboration tools, but with many enterprises having six to ten “some supported, some not” apps in use, the security risk and the risk of collaboration melt-down are both very real. And by the way – collaboration tools actually increase the use of email. INSIGHT FIVE ON THE GIG ECONOMY Companies need to think strategically about the Gig Economy and how they will control (and leverage) the impact on workplace transformation. While only 46 percent of enterprises survey presently participate in the gig economy, an additional 34 percent expect to make the move within the coming 24 months, a move we see primarily as helping to augment or expand existing talent resources but also as a way

to swap some existing employee relationships to contractor status. More than just a decision to shift workforce recruiting from a full-time to on-demand model, moving into the gig economy means realigning resources, from technology to collaboration to human resources, to meet the different demands of a new type of workforce, all while maintaining and supporting the traditional employee. INSIGHT SIX ON FADS VS TRANSFORMATION Physical and virtual workplace transformation is a substantial undertaking and should not be confused any of the workplace fads that have been embraced in the past. These fads, such as open offices, hoteling, and sleep pods, have not had an appreciable impact on employee productivity or satisfaction. Avoid them. INSIGHT SEVEN ON AUTOMATION Robotic Process Automation (RPA) and other automation techniques will continue to be a topic of debate and a source of disruption for the foreseeable future. Of the 500+ executives and business leaders we surveyed, 53 percent are well on their way to automating at least 40 percent of suitable processes through RPA within the next two years. More than just a technology that provides trust, performance, and auditability to routine tasks, RPA is assuming responsibility for lower-level tasks which allows workers to focus on higher-level issues. But while this may be a solid way to lower costs and improve performance, it also has the effect of raising the bar for entry-level or lower-level employees. The result?



Increased emphasis on smarter, more skilled, and potentially costlier talent. INSIGHT EIGHT ON REMOTE WORKERS Remote workers are often viewed as “outperformers” of in-office counterparts, but companies aren’t necessarily treating them as such with limited on-line access to in-office resources. 94 percent of the enterprises we surveyed are embracing the shift towards a more mobile workforce and allowing at least some full-time employees to work remotely. Why? Over the past two years the perception of remote worker productivity and job satisfaction has changed considerably. Two years ago, 37 percent of remote workers were considered to be underperforming. Today, 38 percent of remote workers are considered to be over-performing their in-office counterparts and job satisfaction is following the same trend. But at the same time, our research has revealed that only half of all enterprises expect to have the same in-office information and resources available for remote workers within the next two years. Organizations that don’t accelerate this time-table run the risk of lower employee satisfaction and turnover. INSIGHT NINE ON BUDGETS, SPEND & PLANNING A majority of enterprises anticipate only slightly larger budgets for workplace transformation. Only 14 percent expect significant (in excess of 25 percent) budget improvements to assist with workplace transformation. We believe larger committed investment is necessary to ensure long term success in any given workplace transformation initiative.

BASED UPON OUR RESEARCH WE OFFER THE FOLLOWING PREDICTIONS ON WORKPLACE TRANSFORMATION PREDICTION INVESTMENTS YIELD A COMPETITIVE EDGE Competitive strength comes from a variety of factors, key of which is human capital: people & talent. Long term committed investments in workplace transformation will have a positive impact on organizational success in today’s highly competitive environment. We believe the 14 percent of survey respondents that are making significant investments in workplace transformation can over-perform and capture a significant share of their addressable markets. PREDICTION APPS WILL BECOME TOMORROWS HEADACHE Oversubscription to apps for the sake of broad coverage will create bloat resulting in reduced productivity, weaker and more siloed cultures, and expose organizations to more frequent data breach and security issues. PREDICTION REMOTE, MOBILE & FLEX WORKERS DOMINATE Remote and flexible work will continue to grow at a healthy pace driven by the growing momentum behind the Gig Economy trend. Roles will also shift and change due to the anticipated widespread adoption of automation, AI and digitization that all has the promise of lowering operating expenses and improving profitability with more precise decisioning.



PREDICTION RPA QUIETLY DISRUPTS THE WORKPLACE RPA has emerged as a disruptive technology both displacing and creating new job opportunities, a pattern we expect to continue on a global basis as RPA moves up-stack and is increasingly blended with other smart technologies over the next decade. PREDICTION PHYSICAL BECOMES ILLOGICAL Physical location will no longer be a constraint for companies employing knowledge workers as we edge towards 100% of corporate and human resource capabilities being accessible on demand (as long as reliable connectivity is available). The latter is not in doubt given present and anticipated future advances in Wi-Fi and wireless wide area networking infrastructure. Within five years, the idea of an “office” job will seem illogical—and inefficient—to many.

WORKPLACE TRANSFORMATION APPENDIX


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Our success is built on the trust we earned from clients. We work shoulder-to- shoulder with our clients to solve complex challenges in ways that minimize business risk and maximize opportunity. Our world-class talent becomes part of our clients’ teams, innovating with them and putting the right technology to work for their organizations. And we invest in building collaborative client relationships that flex and grow to help meet new challenges with confidence, speed and agility.

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ABOUT FUTURUM RESEARCH, LLC Futurum is an independent research, analysis, and advisory firm, focused on digital innovation and market-disrupting technologies and trends. Every day, our analysts, researchers, and advisors help business leaders from around the world anticipate tectonic shifts in their industries and leverage disruptive innovation to either gain or maintain a competitive advantage in their markets.

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