Digital disruption is transforming companies across all sectors into digital businesses. This requires radical openness, transparency, collaboration, and informal and creative work cultures. The workplace must support these digital cultures by providing choice, flexibility, and spaces that encourage collaboration and accidental meetings. Characteristics of digital workplaces include activity-based environments, communal spaces, and opportunities to work in co-working spaces that support openness, inter-connectivity, and knowledge-sharing between companies and individuals across sectors.

1. DIGITAL
DISRUPTION
IN THE WORKPLACE
2016
DIGITAL
DISRUPTION
IN THE WORKPLACE
2016

2. INTRODUCTION
Whenyouhear“digital”mostpeople
thinkaboutGoogle,Facebookor
othertechnologycompanies,but
nowallcompaniesacrossmultiple
sectorsaretransforminginto
adigitalcompany.
2

3. Weseedigitisationasthedrivingstrategyformanyglobalbusinesses;GE’sstrategy
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.
In reality, the evolution of technology and the consumer and business related
trends is creating a world of digital disruption which has far-reaching impacts for
traditional business models for every company in every sector. Many companies
are now trying to understand how they can become digital businesses. If the
Chief Executive Officer is not personally driving the agenda, we are seeing Chief
Digital Officers being appointed at banks and financial services companies, legal
and professional services firms, life sciences and FMCG companies. They all want
to develop digital processes, cultures and workplaces. Around 50% of financial
services employees are now engaged in IT and technology related roles, and so
these companies are competing with the likes of Google and Microsoft for the top
talent as employees are switching between sectors for the best opportunities.*
Without developing digital cultures to meet the expectations and workstyles of
these key individuals, these traditional organisations risk being left behind.
* “Future Financial Workplace” Report, Cushman & Wakefield
3

4. WHAT IS
A DIGITAL BUSINESS?
“Digitalbusinessisthe
creationofnewbusiness
designsbyblurringthedigital
andphysicalworlds”
GARTNER
BUT WHAT DOES DIGITAL MEAN?
It is no longer about just technology but a whole
state of mind – more open and transparent,
more agile and dynamic, more informal and
creative and with a strong focus on community
and experience. As businesses try to burst the
corporate bubble, the workplace is a major
catalyst for such a transformation. To become
truly digital means starting from inside out
and leaving the corporate baggage behind.
This briefing note explores the characteristics
of digital businesses, the drivers for change
which are speeding the transition, and the
impacts upon the workplace of a more open,
informal and collaborative business culture.
4

5. RADICAL OPENNESS
THE FOUNDATION FOR DIGITAL
Society is now far more open than it ever was. We use Facebook,
Instagram and Twitter amongst many other social media tools to openly
share to the world our lives, our views and our experiences. We are
entertained through videos we share and we learn through collaboration
and sharing knowledge online. Society has become radically open.
4,166,667
USERS LIKE
Facebook
TwitterPOSTS
347,222
USERS SEND
TWEETS
Instagram
1,736,111
USERS LIKE
PHOTOS
Apple
51,000
USERS
DOWNLOAD
APPS
Vine
1,041,666
USERS
PLAY
VIDEOS
Tinder
590,278
USERS SWIPE
Snapchat
284,722
USERS SHARE
SNAPS
Buzzfeed
34,150
USERS
VIEW
VIDEOS
Skype
100,040
USERS MAKE
VIDEOS
Uber
694
PASSENGERS
TAKE
RIDES
Reddit
18,327
USERS
CAST
APPS
Amazon
4,310
RECEIVES
UNIQUE
VISITORS
Netflix
77,160
SUBSCRIBERS
STREAM
HOURS
OF VIDEO
Pinterest
USERS PIN
9,722
IMAGES
Youtube
USERS UPLOAD
OF NEW VIDEO
300HOURS
EVERY
MINUTE
OF THE
DAY
5

6. This trend is not only transforming the way
we think about business but also how we
organise it and develop it. Organisations need
to engage customers, partners and employees
into a productive, trust-based relationship in
which intimate business information is shared;
successes and failures, strategies and innovations.
The openness is breaking down traditional
organisational boundaries as organisations
‘crowdsource’ knowledge and funding, and
clients/consumers are directly driving innovation
or even becoming producers. Collaboration
and co-creation with clients, suppliers, partners
and academia is driving strategy in directions
that are not planned or programmed.
“It is the long history of
humankind (and animal
kind, too) those who
learned to collaborate
and improvise most
effectivelyhaveprevailed”
CHARLES DARWIN
It is this encouragement to think and act
differently which allows digital businesses to
innovate and disrupt so successfully. Some of the
biggest success stories in recent times change
the rules for competition, crowdsourcing content
so that consumers become collaborators. Airbnb
is the world’s largest accommodation provider,
yet owns no real estate. Facebook is the world’s
largest media owner, yet owns no content. Uber
is the largest taxi company yet owns no taxis.
But it is not just new market entrants who are
adopting this radically open approach. Large and
established names are transforming their business
models. Many Microsoft offices have opened up
their ground floors to the community to hang
out with them. KPMG has just acquired 40,000
sq ft of space in the West End of London just for
clients. Co-working spaces across the world are
increasingly attracting the big corporates as well
as the start-ups and medium sized enterprises.
THE PRINCIPLES OF RADICAL OPENNESS
Collaboration anytime and
across multiple channels
Transparency of
business processes
and physical space
Sharing of ideas
and of space
Interconnectivity
and ease of movement
between all roles in
the organisation
6

7. DIGITAL IS
REPOSITIONING
CORPORATE
Radical openness presents a challenge for
corporates; it turns many of the traditional
assumptions and indeed the ecosystem
of corporate business, on its head.
Historically, knowledge has always meant
power. Whoever has had the means of
developing and preserving knowledge within
the business and at a corporate level, within
the market has been rewarded with success – a
sharp contrast to the world in which knowledge
is collaboratively created and openly shared.
Within the corporation, it was the longer
serving, more experienced staff who were the
custodians of the knowledge base, whereas
in the digital world it is more often than not
the younger new talent that bring ideas and
innovation, that drives the digital strategy.
Whereas in the past, the expectations would
be for this talent to stay within the company
for many years, whilst they work their way
up the hierarchy, the new mind-set for the
millennial generation is to move not only from
one company to another, but even from one
sector or industry to another, as the disruptive
nature of digital facilitates knowledge and
people transfer. One option that is attractive
not only to the young talent, but many of the
middle managers in business, is to leave the
corporate world behind and set up or join a
new start-up disrupter business. It is not just
the entrepreneurial nature of such businesses
that are attractive, but the culture and style
of these organisations, as the traditional world
of ‘corporate’ is no longer appealing to many.
“Corporate doesn’t sell”
HR SENIOR MANAGER
AT A GLOBAL BANK
7

8. WHAT IS
THE IMPACT
ON THE
WORKPLACE?
Competition for talent, retaining key people
and organising resources in the most effective
way is recognised across sectors as a critical
success factor. Indeed human capital is the
number one strategic imperative as cited
by CEOs of the Top 500 Companies. Real
estate and the workplace has a significant
role to play. In regards to location and how to
create a workplace experience that enhances
collaboration and provides a compelling
experience to retain the best people. CRE
Executives report that this is more important
to them now than managing cost.
This focus on the workplace from a digital
business lens creates a very different
perspective than just cost. Indeed, Duncan
Painter, CEO of Top Right Groups, the
media, insight and events conglomerate,
considers real estate part of his marketing
budget, as it facilitates the collaboration
and co-creates with his customer base.
KEY CONSIDERATIONS FOR
THE WORKPLACE NOW
INCLUDE:
Demographic trends: there is no doubt that those
now entering the workforce grew up in a world
more connected than ever before and learnt in
a very different way than generations before, far
more collaboratively and openly, through blogs
and engaging with people and views far beyond
the classroom. The speed of communication
and ease of access to information they have
experienced for most of their lives is at odds
with the enclosed and individualistic nature of
a traditional corporate environment. Sharing is
second nature, and is expected in their working
lives. With the recent definition of the “Centennial”
generation, following millennials with an even greater
awareness of technology capability, the pressure
to embrace a digital culture will only increase.*
1
* “They eat vegan, ‘curate’ their online
‘aesthetic’ and can’t remember a time
before iPads: meet the Centennials”
Luckhurst, The Evening Standard, 2016
8

9. Workforce expectations: The most talented young
candidates want to work for digital companies in
the digital economy. Whether this is a new start-
up or an established business transforming itself,
the candidate’s expectations include flexibility,
formal and informal collaboration, learning,
choice, work-life balance and the opportunity to
“make their mark”. They will gravitate towards
organisations whose workspace, culture and
technology provision align to these expectations.
A survey amongst graduates that investigated
not only why they joined companies but also why
they turned down other companies discovered:
• The most important attributes of an organisation
according to graduate talent globally were:
a) Professional training and development
b) Creative and dynamic working environment
c) Leaders who support my development
• Millennials want to match their career choice
with their lives and values and so are:
a) Looking to make a difference
b) Expecting to be able to contribute their ideas
c) Want to enjoy themselves
• A significant degree of transition between
sectors; switching between technology, the big
four consultancies and investment banking.
2
Workplace perception: The traditional workplace
no longer appeals, with research in Paris amongst
business school graduates indicating that 93%
of graduates don’t want to work in such a space.
Home working or public spaces would be their
preferred working environment, again indicating a
drive towards choice and flexibility over corporate
culture. However the pull of the city centre is still
strong, with 87% wanting to work in urban cores,
as is the desire for collaboration and hunger for
quick learning from others in the organisation.
For this reason a physical workspace is still key,
but one which acts as a hub for interaction,
designed accordingly, and used in combination
with more flexible work and location options.
Within these spaces businesses should look
to provide non-traditional yet well-connected
workspace, supported with high quality and
intuitive technology, to accommodate the range
of workstyles that their future workforce aspires
to. Now we see even highly traditional occupiers
such as legal firms recognising that their inflexible
single-office models inhibit knowledge sharing,
and that more collaborative hybrid spaces would
meet the demands of their incoming hires and
their clients’ expectations of innovation.
3
Engagement and wellbeing: Mounting research
shows that providing employees with choice
over when, where and how they work is the
most important factor in driving satisfaction and
engagement of staff when it comes down to the
workplace. With recent research showing 1/3 of the
average workforce is disengaged*, the recognition
that the workplace can make a significant impact
on this is now influencing the way in which space is
viewed as a business tool. Organisations are asking
how to encourage staff back into the office to take
advantage of ad-hoc meetings and unscheduled
collaboration. Wellbeing; covering physical and
emotional fitness and work life balance should
recognise and provide spaces for all work styles
and personality types, in a balanced distribution of
facilities. This can transform the workplace culture,
improve performance, innovation and accelerate
productivity, as well as benefitting the bottom line.
4
*“Engagement and the Global Workplace” report,
Steelcase, 2016
9

10. “WE’RE NOT GOOGLE, BUT…”
THE CHARACTERISTICS OF A DIGITAL WORKPLACE
The drive towards radical openness and digital culture means that the workplace needs to address
these considerations. What was once seen as the ‘radical workspaces’ of the TMT sector are now
becoming mainstream, as corporates from all sector occupiers are using the same principles of
workplace design and management, even if tailored to their own brand and market.
This means providing a greater range of work
preferences and activities than ever before, and
focusing on collaboration and experience rather
than just efficiency. This does not mean blowing
the capital budget and increasing footprint
and opex. Indeed, digital businesses are often
very efficient as they are not burdened by the
trappings of many of the corporate world – offices
being allocated by status or even personalisation
and ownership of desks or cubicles. One of the
leadership principles of Amazon is to be frugal
– a principle applied in everything they do.
Internally, the workplace is built to support
collaboration with open, transparent and
technology-enabled spaces. Ad-hoc collisions
are highly valued, with the positioning of key
services and circulation designed to generate
maximum opportunities for accidental meetings.
Activity-based environments allow choice of
workspace based on the task in hand, blurring
the boundaries of defined departmental provision
to create an open and inter-connected space.
Learning, meeting, overhearing and collaborating
are the inevitable result of this breaking-down
of departmental silos. Zappos CEO, Tony Hsieh
believes this to be so critical that the company’s
Las Vegas headquarters is built with “collisionable
hours” in mind, and holds the ambition to
redevelop part of the city itself based on these
principles to benefit the wider community.*
1
Traditional
Workplace - Fixed,
Defined, Blocking
& Stacking, Adjacencies
* “Zappos CEO Tony Hsieh Says Having Your
Own Corner Office Is Like Living In Suburbia”
Badger, Business Insider, 2013
10

11. THE IMPORTANCE OF
CO-WORKING SPACE
The co-working revolution continues, with spaces increasingly seen as a viable option for traditional
corporates requiring flexible, appropriately-located, and “un-corporate” accommodation.
Whilst traditionally associated with start-ups and
entrepreneurs, the demographic is shifting – at
Factory Berlin for example, 85% of workers are
salaried employees rather than freelancers.
The now-typical model of co-working providers
of dedicated, communal and social spaces meet
the needs of corporates, providing secure spaces
to meet compliance and confidentiality concerns,
alongside access to the crucial, collaborative and
collision space that their top talent crave. WeWork
now estimate that 20% of their occupiers are
corporates, and with co-working and serviced
office space now equating to 9.7 million sq ft
in central London alone, these spaces seem set
to become a key part of corporates’ portfolio
planning. The facilities themselves are getting
bigger, some more than 10,000 sq m, which
highlights how this sector has come of age.
The principle of openness is also manifesting itself
through the provision of co-working space within
corporates’ own space. Inviting start-ups, clients
and likeminded individuals into formally secretive
enclosed spaces demonstrates a commitment
to collaboration and transparency at odds with
the traditional office model. RBS in Edinburgh
and BNP Paribas in Brussels, amongst others,
provide support space for start-ups and growth
businesses. NAB in Melbourne has created a
customer innovation centre, targeting the needs of
agile workers by encouraging connecting, sharing
and collaborating in an informal space. KPMG in
London has developed 40,000 sq ft of prime-
location office space as a members’ club-style
serviced space. For customers only it provides a
convenient location for them to work and meet.
2
Activity Based
Workplace - Digital, Agile,
Inter-connected,
Diverse
* “How We Work” report, Cushman & Wakefield
11

12. DIGITAL LOCATIONS
Digital clusters are now being created in many
cities. Businesses are recognising the value of
functions sitting apart from the core business,
co-located with their peers with a focus on
product or skill sets, and in environments more
suited to their working preferences.
The relationship with universities and science
to accelerate the innovation is a key factor. GE’s
strategy is to become a digital industrial company
and is relocating their headquarters to Boston,
capitalising on the proximity to high-technology
markets and knowledge at MIT and Harvard. Their
chief executive Jeffrey R. Immelt predicts that GE
will become a “top 10 software company” by 2020.
In London, Tesco Bank moved their digital office to
a former warehouse in the Clerkenwell area
providing a location and image, which far better
attracts their target talent. This formation
of clusters of knowledge combines corporates,
SMEs, education establishments and community
to capitalise on the openness and knowledge share
this can bring. Originally developing organically as
small businesses and individuals seek out new and
inexpensive space, clusters are now deliberately
planned. Here East in East London was developed
with this aim in mind – to foster creativity through
the co-location focused on the ‘Maker world’ –
designers, manufacturers, academics. The provision
of varying space types from large flexible floor
plates to co-working provision is designed to
attract and develop a community. Factory Berlin
is home to significant occupiers such as Twitter
and Soundcloud alongside SMEs, a business model
which recognises the benefit of multinationals
and start-ups working alongside each other.
“Universally, big companies
want to be around start-ups and
vice versa due to the opportunity
to learn from one another”
SIMON SCHAEFER, FOUNDER,
FACTORY BERLIN*
12
*“How we work” report,
Cushman & Wakefield
12

13. 13
ENABLING TECHNOLOGIES
1
Internal Social Media:
organisations are adopting
social applications such as
Yammer, Chatter and
still-in-testing Facebook at
Work to reduce email traffic
and connect employees
on a wider scale.*
3
WeWork App: co-working
provider WeWork has developed
a mobile application to enhance
their members’ experience by
connecting them with the wider
WeWork community. It allows them
to discuss ideas, ask for help and
advertise opportunities, as well
as practical features such
as room bookings.
5
Existing tools: Businesses are not
only using business-specific tools
to meet their needs. They are also
re-purposing existing applications for
their own needs. As a person-to-person
messaging service, Whatsapp is increasing
in popularity amongst businesses
and teams as a fast and direct way
of communication with all members,
and as a low-cost way of
communicating one-to-one
with customers.
2
Mobile Applications: organisations
are developing their own internal
applications for mobile devices, bringing
features such as company information,
chat, people finders and news together
for the benefit of both staff and
customers. They can be integrated
with desk booking systems or IP
logins to locate individuals
in agile environment.
4
Robots: personal assistants
such as Siri and Cortana are now being
introduced into the business world to help
people find corporate information and providing
interactive organisation experiences. Artificial
intelligence, robots and the Internet of Things in the
office will take this all to another level, With Deloitte
in Amsterdam already using robot security in
reception, and the University of Birmingham’s
AI-driven office manager “Betty” also being piloted,
it’s only a matter of time before more advanced
hardware appears throughout the
office to help us find spaces,
people, information or
provided services.
* “Online chatting at work gets the thumbs
up from bosses” Lawson, BBC, 2015
13

14. 14
ABOUT
This market-leading provider of digital insight services, currently
employs 350 people with an average workforce age of 26.
The organisation was originally located in a more traditional
workplace in outer London, which they felt was hindering
efforts to attract the calibre of talent they needed to develop
and grow the business. The organisation wanted to recruit
the top performing graduates from the top universities and
worked with C&W to develop a strategy to enable this.
New high specification office space was acquired in Central
London and the subsequent layout and design, was both
modern and functional to meet the needs of their employees.
The organisation also underwent a process of workplace change and
new flexible workingstyles and practices were adopted, which included
the introduction of multiple work settings and no assigned seating.
The organisation also wanted to use the
relocation as an opportunity to build
excitement, generate energy and new ideas,
as well significantly enhance collaboration
– initially internally but then with clients
through co-creation within the workplace.
The new workstyle meant that employees could hang out where
they liked in the office and with whom they liked, which was a big
change for both the organisation, its employees and of course
the clients who were being encouraged to work with them.
CASE STUDY
MARKET LEADING PROVIDER
OF DIGITAL INSIGHT SERVICES
14

15. An away day then took place with the Management team, to outline the new ways
of working and explore the implications and opportunities for both themselves
and their teams, in a safe neutral environment and before the changes took place.
Following this, workshops took place for every manager and their teams where
collectively, they explored the implications of the changes and determined as a
team, how they could and would maximise the benefits. The output of the
workshops were a charter for each team – an agreement between team members
as to how they would implement and adopt the new ways of working, to enhance
their team opportunities and results. The teams reviewed their respective charters
after six months, to adjust any activities that needed to be undertaken differently
in light of the shared experience.
A follow-up workshop was then held with the team managers, during which
success was reviewed and any further changes that were needed. The workshop
also looked at how remote teams could be managed more effectively.
A planning workshop was held with the Change Management team, which
included a number of Executive Managers.
THE OUTCOME
The change process, particularly the engagement and team charter sessions,
created a mood of excited anticipation which overtook the earlier anxiety and
teams began to step-up to the new performance expectations. The business
quickly settled into a creative and flexible output-based approach, co-creating
with clients. The impact was significant with revenue increasing 30% within 12
months, five times more than peer companies at the time. Staff turnover also
halved over the same period as staff were more satisfied with the choices
provided by the new workplace.
The building and location has played a large part in the process of changing and
transforming from the old to the new culture and image, alongside the new attitudes
adopted by the teams. The change workshops also helped teams to visualise new
performance criteria and generated a new approach to cross-functional collaboration.
OUR ROLE
The employees within the organisation were faced with a dramatic change of workingstyles from the old,
staid, more paper-based environment, to a more digitally driven environment. This required a change in
outlook to meet the stretching vision and goals of the transformed organisation.
C&W achieved this by holding a series of workshops, supporting both managers and teams, coaching them
both on how to operate differently. The following steps were taken:
* i Conference Board Annual Survey of Top 500 CEOs
ii Corenet 2014 Global Survey
iii Universum Talent Research 2015
iv Ingrid Nappi Choulet, ESSEC Business Schoo
iii Universum Talent Research 2015
iv Ingrid Nappi Choulet, ESSEC Business School 15

16. Copyright © 2016 Cushman Wakefield. All rights reserved. CUS100428 07/16
Cushman Wakefield is a leading global real estate services firm that helps clients transform the way
people work, shop, and live. The firm’s 43,000 employees in more than 60 countries provide deep local
and global insights that create significant value for occupiers and investors around the world. Cushman
Wakefield is among the largest commercial real estate services with revenues of $5 billion across core
services of agency leasing, asset services, capital markets, facilities services (branded CW Services),
global occupier services, investment management (branded DTZ Investors), tenant representation and
valuations advisory. To learn more, visit cushmanwakefield.com or follow @CushWake on Twitter
CONTACT DETAILS
Neil McLocklin
Strategic Consulting, EMEA,
Global Occupier Services
+44 (0) 203 296 3328
neil.mclocklin@cushwake.com
Susanne Lorencin
Director of Workplace Strategy, EMEA,
Global Occupier Services
+44 (0)203 296 2191
Susanne.lorencin@cushwake.com
Juliette Morgan
Partner, Global Technology Group, London
+44 (0) 203 296 3520
juilette.morgan@cushwake.com
Derrick Bock
Head of Workplace Strategy,
Cushman Wakefield Germany
+49 30 201 705 236
derrick.bock@cushwake.com