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Digital Disruption in the Workplace

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When you hear “digital” most people start to think about Google, Facebook or other technology companies. But now transforming into a digital company is the strategic objective for many companies across multiple sectors. We see digitisation as the driving strategy for many global business; GE’s strategy is to become the first digital industrial company and is moving its headquarters to Boston to be closer to MIT (Massachusetts Institute of Technology). Deutsche Bank wants to transform into a digital bank, and Sephora is digitising the world of beauty. The transformation is not just how these companies manage clients and deliver services through the web and smart phone apps, but back office processes, enhancing organisational agility, speeding up supply chains and recreating whole service offerings to make life easier or better for clients.

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Digital Disruption in the Workplace

  1. 1. Digital Disruption in the Workplace 26 July 2016
  2. 2. Cushman & Wakefield | Digital Disruption Digital Disruption and the Workplace
  3. 3. Cushman & Wakefield | Digital Disruption Live broadcast Follow @CushWake to see a broadcast of today’s event. Live from 8.30am, available to watch for 24 hours from 10am today. Use #digitalworkplace to join in the conversation on Twitter. We will email you an event summary portal which will include all the content from today.
  4. 4. Cushman & Wakefield | Digital Disruption 05 Q&A 04 eBay and Paypal Case Study Derrick Bock 03 Digital Workplace Saptarshi Routh 02 Characteristics of Digital Business in London Juliette Morgan and Rory Young 01 Drivers for Digital Disruption and the impact of the Digital Workplace Neil McLocklin Digital Disruption & The Workplace
  5. 5. Cushman & Wakefield | Digital Disruption Digital Disruption Is changing the rules for competition Which sector is forecast to be MOST IMPACTED by Digital transformation? BANKING TECH LIFE SCIENCE MANUFACTURING
  6. 6. Neil McLocklin Strategic Consulting, EMEA, Global Occupier Service, Cushman & Wakefield Drivers for Digital Disruption and the impact of the Digital Workplace
  7. 7. Cushman & Wakefield | Digital Disruption Let’s start at the beginning Survival of the fittest – driven corporate culture
  8. 8. Cushman & Wakefield | Digital Disruption Not the strongest – but most adaptable to change “It is not the strongest of species that survives, not the most intelligent that survives. It is the one that is most adaptable to change.” Charles Darwin
  9. 9. Cushman & Wakefield | Digital Disruption “It is the long history of humankind (and animal kind, too) those who learned to collaborate and improvise most effectively have prevailed.”
  10. 10. Cushman & Wakefield | Digital Disruption A key foundation to Digital is ‘openness’ and sharing
  11. 11. Cushman & Wakefield | Digital Disruption Radical openness The four core principles of radically open organisations These principles have the potential to transform the way work is performed within the organisation and the design and use of the workplace. THEY ARE THE FOUNDATION OF A DIGITAL BUSINESS TRANSPARENCY COLLABORATION INTER- CONNECTED SHARING
  12. 12. Cushman & Wakefield | Digital Disruption Client co-creation and collaboration Providing co-working spaces KPMG 20 Grosvenor Street, 40,000 sq ft RBS Edinburgh, for growth businesses SAP Palo Alto, HanaHaus BNP Paribas Brussels, supporting startupsNAB Melbourne, Customer Innovation Centre
  13. 13. Cushman & Wakefield | Digital Disruption Blurring the boundaries inside the workplace & beyond Radically open and collaborative Traditional Workplace Digital Workplace Global Home Co-working Office
  14. 14. Cushman & Wakefield | Digital Disruption Your workplace experience
  15. 15. Cushman & Wakefield | Digital Disruption Experience drives everything EXPERIENCE PRODUCTIVITY EFFICIENCY Proactive/Predictive AnalysisHeat Map GranularityLive floorplate status
  16. 16. Cushman & Wakefield | Digital Disruption …a just in time data driven efficient service …delivers the brand promise at every touch point …changes with the seasons and the business rhythm …provides seamless security but opens up opportunity …and talks back to connect you ‘…and did you know William is in today?’ …you can talk to – ‘which desk is quiet and cool today?’ Workplace that needs to respond A WORKPLACE THAT ... …curates such a great experience you want to invest in the commute
  17. 17. Cushman & Wakefield | Digital Disruption Closed Open Structured Dynamic Formal Informal Inflexible Flexible Hierarchical Inter-connected Self-centred Wider social goals Changing nature of work Traditional to the new NEW TRADITIONAL MORE NATURAL and MORE HUMAN – DARWIN WOULD HAVE LOVED IT
  18. 18. JULIETTE MORGAN Partner, Global Tech Group, London, Cushman & Wakefield RORY YOUNG London Occupier Representation, Global Tech Group, Cushman & Wakefield Characteristics of Digital Business in London
  19. 19. Cushman & Wakefield | Digital Disruption Tech City London
  20. 20. Cushman & Wakefield | Digital Disruption Digital Disruption
  21. 21. Cushman & Wakefield | Digital Disruption Disruption: What is all this noise about? DISRUPTION in when a SMALLER company with FEWER RESOURCES enters the market place and is able to successfully CHALLENGE an established incumbent business. DISRUPTIVE INNOVATION has the ability to make seemingly INVINCIBLE companies fail. By definition, there are two points of entry in the market for a technology to be truly defined as disruptive: 01 02 Low-end footholds where incumbents only concentrate on their most profitable and demanding customers New-market footholds where disrupters create a brand new market and value proposition
  22. 22. Cushman & Wakefield | Digital Disruption DISRUPTION occurs when companies fail to cater to their entire customer base and instead focus on the most profitable and demanding customers. Companies will continue to better their products to appeal to their most demanding customers through a series of SUSTAINING INNOVATIONS. This occurs simply because it is COUNTER INTUITIVE for a business to invest in a product which is simpler than their current value proposition and delivers lower margins. Disruption: How does it happen? It is common in these scenarios that companies eventually OVER ENGINEER their products which in turn leads to TECHNOLOGY OVERSHOOTING. It is at this point that the DISRUPTIVE INNOVATION which initially underperformed the competing product begins to DEFUSE into the market and gain market share. More often than not, by the time the businesses at the top end of the market can make a BUSINESS CASE to invest in the disruptive technology, it is already too LATE.
  23. 23. Cushman & Wakefield | Digital Disruption DATA IS THE NEW OIL It’s only useful once it has been refined
  24. 24. Cushman & Wakefield | Digital Disruption Businesses now use digital technology to INFORM all DECISIONS The biggest isn’t necessarily the best anymore – It is all about who is the most INFORMED Technology has significantly LOWERED BARRIERS to ENTRY in every market, thereby paving the way for DIGITAL DISRUPTION As a result traditional value chains have been permanently altered and the lines with which a ‘traditional’ company should sit within have been BLURRED BEYOND RECOGNITION A digital world We now live in a world where every company is in its own right a technology company Uber Facebook Alibaba Airbnb The world’s largest taxi company, owns no vehicles The most valuable retailer, has no inventory. The world’s largest accommodation provider, owns no real estate The world’s most popular media owner, creates no content SOMETHING INTERESTING IS HAPPENING
  25. 25. Cushman & Wakefield | Digital Disruption KPMG’s Tech trends buzz score Trends and their scores CLOUD COMPUTING 15% INTERNET OF THINGS 13% DIGITAL PAYMENTS 12% BIG DATA & ANALYTIC 9% ROBOTICS 7% AUTONOMOUS VEHICLES 6% VIRTUAL REALITY 5% CYBER SECURITY 5% WEARABLES 4% AUGUMENTED REALITY 3% 3D PRINTING 3% MOBILE PAYMENTS 2% HOME HEALTH MONITORING 2% SPEECH ANALYTICS 1% LOCATION BASED 1%
  26. 26. Cushman & Wakefield | Digital Disruption Augmented reality and virtual reality VIRTUAL REALITY Immerses the user in manufactured surroundings AUGMENTED REALITY Overlaying contextual data over the physical environment around you Disruptive potential to recast long-standing business processes and tasks: Now is the time of the telecommuting workforce. It is estimated that up to 30% of works will telecommute in developed countries by 2019…slowly but surely scraping away the demand for conventional offices.
  27. 27. Cushman & Wakefield | Digital Disruption Blockchain A distributed ledger that provides a way for information to be recorded and shared by a community. The information of choice for the majority of the Blockchain community takes the form of the digital currency Bitcoin.
  28. 28. Cushman & Wakefield | Digital Disruption Trends Member lounges Open plan Co-working Surprise me-pop up retail Coffee culture Focus on design Independent retail Serious informality Focus on community Stimulus vs. Quiet space
  29. 29. Cushman & Wakefield | Digital Disruption Trends Infantilisation of space Copycat architecture Property with venture capital investment Lease tension & investment returns Speculation
  30. 30. Cushman & Wakefield | Digital Disruption Trends: future Wellness Digital interface/app Networking Pre-fibred buildings Social curation – ecosystem in a box
  31. 31. Cushman & Wakefield | Digital Disruption Does your company see new technology start-ups as…? • Disruptors in your market place • Enablers to your own transformation • Both of the above • Neither / do not know
  32. 32. SAPTARSHI ROUTH Senior Director & Digital Business Practice Leader for Manufacturing & Retail EMEA Digital Workplace: Gartner View
  33. 33. This presentation, including any supporting materials, is owned by Gartner, Inc. and/or its affiliates and is for the sole use of the intended Gartner audience or other intended recipients. This presentation may contain information that is confidential, proprietary or otherwise legally protected, and it may not be further copied, distributed or publicly displayed without the express written permission of Gartner, Inc. or its affiliates. © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Building a Digital Workplace Strategy Saptarshi Routh, Sr. Director – Digital Business Practice Leader
  34. 34. 33 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. “We cannot solve our problems with the same thinking we used when we created them"
  35. 35. 34 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. The Journey Onward — to Digital Business Traditional Business Goes Online EDI BI Portals E-business CRM Web Web Static Web Presence Pre Web Traditional Business ERP CRM Analog Focus Entities Technologies People People Business People Business Mobile Big data Social D-marketing Going to the Customers People Business Post Nexus Blurring Physical & Digital Sensors 3D printing Smart Machines D-business
  36. 36. 35 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved.
  37. 37. 36 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved.
  38. 38. 37 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Digital Business is changing “business” , and how business is conducted Digital Business changes how an organization integrates with suppliers, customers, partners, and the public. Building upon the business moment, the organization will become bi-modal in the relationships and technology. Digital Business is changing the very nature of work, forcing new engagement models for employees, and reimagining the workplace.
  39. 39. 38 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Major workplace changes are happening, driving the pivot to a digital workplace From 2002 to 2015, the importance of team-oriented output grew from 20% to 50% 60% of jobs are nonroutine, up from 40% in 1975 Millennials are 75% of workforce in 2025 Telecommuting has risen 79% between 2005 and 2014 Structured processes are no longer the primary way work is organised Younger workers are mobile, visual and social Employee value shifts from individuals to teams Work teams are increasingly virtualised and span organisations
  40. 40. 39 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Introducing Carlos, One of Our Digital Workplace Personas Works at: MissionX Corp. Job: Partner Relationship Manager Age: 29 Family: Two Kids at Home Education: B.A., Political Science
  41. 41. 40 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Carlos Is Digitally Literate … Embraces device diversity Hungers for new apps Excels at information discovery Self-support is the norm Naturally social online Technology evangelist
  42. 42. 41 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Carlos Brings His Own Apps to Work … Book flight Book lodging Create, share itinerary Navigate traffic Flight alerts Speak the language Share the experience Communicate with family
  43. 43. 42 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. What Does the Business Want From Carlos? Productive collaboration across far-flung groups Focus on innovation Data-driven decisions Transparency in work processes Customer centricity Digital dexterity
  44. 44. 43 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. What Does Carlos Want From the Business? Easy access to relevant content and data Tablets, Macs and smartphones Apps, not applications Rich suite of collaboration tools Engaged IT support Digitally literate leadership
  45. 45. 44 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. What Traditional IT (Thinks It) Knows About Carlos  Standard build. 20% mobile use, email only. 20% content creation. 50% of time spent in CRM/PRM applications. Photo on File
  46. 46. 45 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Digital Workplace Transforms the IT Charter Innovative role for IT organization Innovative role for IT organization Work StylesDigital Dexterity High-Impact Performance Business Outcomes Secure and Stable Business Systems Digital Workplace Program Employee Focus Enterprise Focus Expands
  47. 47. 46 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Nearly 3 out of 4 organizations are either creating or have already implemented a digital workplace program Gartner findings from Digital Workplace Adoption Survey shows 72% of organizations are in progress of adopting a Digital Workplace program Manufacturing 19% Services 15% Government 8% Banking 11% Insurance 7% Healthcare 6% Utilities 5% Sample composition 45% 27%26% 1% 0% 10% 20% 30% 40% 50% We have a program in place We are currently creating a program No program in place, but interest is growing No program in place and no interest in creating one Digital Workplace Adoption N= 490 Does your organization have a digital workplace program, planned or underway, designed to increase collaboration and knowledge sharing among employees?
  48. 48. 47 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. How Are Organizations Responding to the Need for Digital Workplace Initiatives? Reactive Exploratory Emerging Integrative Optimizing Doing Nothing Doing Something Unknowingly Specific DW Projects, but Disconnected DW Run as a Portfolio of Services Enterprisewide Strategy Treated as Pervasive
  49. 49. 48 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Project Approach , Reactive Exploratory Emerging Integrative Optimizing Doing Nothing Doing Something Unknowingly Specific DW Projects, but Disconnected DW Run as a Portfolio of Services Enterprisewide Strategy Treated as Pervasive The project approach targets technology initiatives that create employee agility through a more consumerized approach.
  50. 50. 49 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Project Approach Project-Based Approach Redesigning the corporate intranet Migrating to a cloud office platform such as Office 365 or Google Apps for Work Deploying mobile enterprise file synchronization and sharing Facilitation of video-based information delivery and creation Using all the tricks from the best consumer-facing websites Access to many new innovative workgroup tools, often originally found on the consumer side Meets growing preference for consumer video — first preference Meeting demand for easy sharing and mobile access
  51. 51. 50 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Portfolio Approach Reactive Exploratory Emerging Integrative Optimizing Doing Nothing Doing Something Unknowingly Specific DW Projects, but Disconnected DW Run as a Portfolio of Services Enterprisewide Strategy Treated as Pervasive The portfolio approach creates a persistent and reusable suite of digital workplace skills, tools and services that can be applied to many different business situations.
  52. 52. 51 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Portfolio Approach Portfolio-Based Approach Developing a rich capability in mobile app development and delivery Exploiting user experience design, personas and journey maps for application development Encouraging and facilitating citizen development and citizen integration A more employee-friendly IT service operation, offering community support and genius bars Meets consumer preference for mobile first Borrowing consumer-facing application development tricks Support the way employees want it, not how the IT group wants it Tapping into growing employee technology competencies
  53. 53. 52 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Pervasive Approach Reactive Exploratory Emerging Integrative Optimizing Doing Nothing Doing Something Unknowingly Specific DW Projects, but Disconnected DW Run as a Portfolio of Services Enterprisewide Strategy Treated as Pervasive The pervasive approach represents a wholesale commitment to the digital workplace. It focuses on alignment with HR and on culture change.
  54. 54. 53 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Pervasive Approach Pervasive-Based Approach A productive approach to exploiting shadow IT activities Greater use of embedded IT personnel A close IT/HR partnership to focus on engagement programs, changing demographics, skills, globalization and organizational structure Work with facilities/space management on physical office space Embracing, rather than fighting, a growing trend Promoting greater alignment of business and technology The physical workplace advances many digital workplace goals The common goal is boosting workforce agility to drive growth
  55. 55. 54 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. The Three Stages and Three Execution Methods of a Digital Workplace The pervasive approach represents a wholesale commitment to the digital workplace. It focuses on alignment with HR and on culture change. The project approach targets technology initiatives that create employee agility through a more consumerized approach. Pervasive Project The portfolio approach creates a persistent and reusable suite of digital workplace skills, tools and services applied to many different business situations. Portfolio Bottom-Up Top-Down By Multidisciplinary Team By IT Role By IT Project
  56. 56. 55 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Vision & Goals to Requirements to Roadmap & Plans Initial project tasks identify the necessary functions and requirements of the new workplace and the way people work. The way people work is segregated into personas to plan and select the types of End User Platforms (and policies) best suited for the user and enterprise. End User Platform choices are categorized and offered to users based upon their Personas Other “enabling technologies” are architected to ensure a seamless environment allowing the end user to work (officially) “anywhere, anytime, and with any (approved) device.” Roadmaps and Implementation plans to close gaps in capabilities needed in the transformation to a Digital Workplace
  57. 57. 56 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved.  Begin with YOUR company's end in mind.  Find and embrace a major compelling event as a catalyst for your digital workplace.  Document and validate stakeholder expectations for strategy and roadmaps: – Warning: If only IT is building the roadmap, you've only just begun.  Challenge yourself. A great roadmap is: – Visionary. – Actionable. – Defines evaluation points and measurements. – Gives direction, but leaves room for changes. Recommendations
  58. 58. 57 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Research Industry’s largest database 113,760 documents across 1,253 technology and business topics Advisory Services Unique client perspective 1,000 analysts conduct 215,000 one-to-one client interactions annually Consulting Results on initiatives 3,200 custom engagements a year fueled by 5,000 benchmarks Events Networking with peers 50,000 professionals a year attend 60+ worldwide events Gartner brings unique scale and global IT perspective to your business problems Clients in 10,000 distinct enterprises across 90 countries
  59. 59. eBay and Paypal Case Study DERRICK BOCK Head of Workplace Strategy, Germany, Cushman & Wakefield
  60. 60. Cushman & Wakefield | Digital Disruption Connected commerce CONNECTED COMMERCE Creating more opportunity together eBay Inc. is a global commerce platform and payments leader PayPal offers flexible and innovative payment solutions for consumers and merchants of all sizes eBay delivers one of the world's largest online marketplaces to customers via any connected device, connecting people with the things they need and love eBay Enterprise helps companies of all sizes drive commerce growth – delivering exceptional, engaging shopping experiences online and offline
  61. 61. Cushman & Wakefield | Digital Disruption EBAY HELPS YOU EASILY DISCOVER, CONNECT WITH, and ENJOY THE THINGS THAT MATTER TO YOU
  62. 62. Cushman & Wakefield | Digital Disruption Our brand positioning and pillars BRAND POSITIONING eBay helps you discover, connect with, and enjoy the things that matter to you eBay creates tailored shopping experiences designed for your needs, with relevant and curated selection that feels personalized. eBay gives you amazing tools that help you find the things that fit your life, and the expertise to get the most out of what you own and sell. Personalisation eBay knows you eBay seamlessly connects you to a world of great finds, great deals and a growing number of great brands from around the corner and around the world… …and to information and inspiration from the sellers, users, and friends who share your passions and beliefs. Connection eBay makes meaningful connections Because eBay is with you where ever you go we make your moments of inspiration instantly shop-able. eBay helps you explore and discover new things every day. The things you find and share on eBay help you express your unique style and identity. Engagement eBay fuels your interests POWER PILLARS
  63. 63. Cushman & Wakefield | Digital Disruption Brand personalities CONNECTED TO EACH OTHER HUMAN TRUSTED INNOVATE SMART DRIVEN APPROACHABLE INSPIRING IMAGINATIVE SMART DYNAMIC
  64. 64. Cushman & Wakefield | Digital Disruption Connecting ETHOS Why? • Shared purpose: Why we are here! • Commitments: Compete, Execute, Innovate, Enable, Create • Behaviours: Simplify, Debate Decide + Deliver, Empathy, Honesty, Do the right thing, Sharing, Trust CUSTOMER Who? • Knowledge workers • Technologists • Customer support agents • Flexible Workforce: 2Connect ZONES What? Base, Creativity, Recovery, Focus, Social Networking, Formal Presentation, Wellbeing SOCIAL SCALE Where? • The Grid: The module • Working Networks: myHome, myNeighborhood, myCommunity, myWorld
  65. 65. Cushman & Wakefield | Digital Disruption eBay KNOWS YOU Why do we come to the office, what do we do and need when we are there? Activity based working FOCUS [Ranging from small booths where people can absorb themselves in focused work, to a stimulating space where they can research and learn.] BASE [A place to call home, not necessarily a desk but could be as simple as a locker.] SOCIAL NETWORKING [Where people can gather to hold informal meetings and exchange ideas in a relaxed state. ] FORMAL PRESENTATION [The familiar space for hosting formally chaired meetings.] CREATIVITY [Where people can contextualize problems and expand their thinking.] WELL BEING [We have an energy curve that runs throughout the day – different spaces encourage us to maximize our natural energy cycle.] RECOVERY: BUILDING THE WAVE [ A quiet, low-light area where people can close their eyes in comfort for 5-15 minutes without anxiety.]
  66. 66. Cushman & Wakefield | Digital Disruption DEFINING THE NETWORKS WPe has established that eBay’s working society can be defined by four working networks open to all employees. These networks have different proportions or scales. Social scale/where? myCOMMUNITY [The shared resources in a building which all departments use. This working network is on a company scale.] myHOME [A personal space, a desk, a seat, ... Any place for a person to work anywhere in their department. This working network is on a team scale.] myNEIGHBOURHOOD [A shared space between adjoining departments where resources are pooled. This working network is on an inter- departmental scale.] myWORLD [The shared resources throughout Europe and the world. This working network is on an inter-company scale.]
  67. 67. Cushman & Wakefield | Digital Disruption Design thinking process EVOLUTION: The process of change, over time, by natural selection. UNDERSTAND OBSERVE POINT OF VIEW IDEATE PROTOTYPE TEST
  68. 68. Cushman & Wakefield | Digital Disruption Workplace evolution
  69. 69. WORKSPACE AS A REFLECTION OF THE BRAND
  70. 70. Cushman & Wakefield | Digital Disruption Unique vision Surprise and delight Imagining new possibilities IMAGINATIVEhaving or showing creativity or inventiveness Brand personalities
  71. 71. Cushman & Wakefield | Digital Disruption Making your life better Promoting self-expression Sparking discovery INSPIRINGcreate (a feeling, especially a positive one) in a person:
  72. 72. Cushman & Wakefield | Digital Disruption APPROACHABLEable to be reached from a particular direction or by a particular means: Empathetic and helpful Friendly tailored service Embracing diversity
  73. 73. Cushman & Wakefield | Digital Disruption Perceptive and thoughtful Intuitive experiences Elegant solutions SMARTattractively neat and stylish, bright and fresh in appearance, fashionable and upmarket:
  74. 74. Cushman & Wakefield | Digital Disruption Refreshing ourselves every minute Staying current A vibrant and growing community DYNAMICcharacterized by constant change, activity, or progress, positive in attitude and full of energy and new ideas:
  75. 75. Cushman & Wakefield | Digital Disruption
  76. 76. ? Q&A
  77. 77. Cushman & Wakefield | Digital Disruption Thanks for coming!

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