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Smart Work (telework)
                 TITRE DE LA PRESENTATION
                in rural areas

                                           Alise Vitola
Hamburg, 2012                 Riga Technical University
                                                 Latvia
Smart Work -
working independently of time and place with
the help of ICT


              TITRE DE LA PRESENTATION
Why Smart Work?
Personal reasons:
• Time economy
• Flexible work arrangements
• Work/life balance
• Residing outside cities   Economic reasons:
                          • Increase in productivity
                          • Reduction of costs (transport,
                 TITRE   DE LA PRESENTATION
                            real estate etc.)
                          • Recruitment and retention of
                            staff
                          • The image / reputation
An example
                                         Microsoft
                                       Netherlands
• New building in 2008
• No assigned desks - work anywhere in the building
• Layout of the building - to maximize communication
  and collaboration
                  TITRE DE LA PRESENTATION
• Encouraged to work more from home & allowed to
  work anytime
• A weekly 1:1 with their manager - a physical or virtual
  meeting
Measurable improvements
• Increased productivity by 25%
• Won “Great Place to Work” award in 2009, 2010 and
  2011
• Employee satisfaction rose from 5/10 in 2008, to 8/10
  in 2011
• Sick leave days are down to 1,5% from 2,5%
• Increased market reputation PRESENTATION
                   TITRE DE LA
• Increased Employees’ mobility
• Reduced real estate costs by 30%
An example
• Flexible staffing firm in US – 100% virtual work force
• Established in 2005 by Allison O’Kelly, Harward Business
  School graduate and a mother of 3 sons
• Grown to 17 franchises

• > 50 000 candidates
• Industries: accounting, legal, marketing, HR, finance,
   management etc. TITRE DE LA PRESENTATION

• Several awards since 2006: Moving into the Future Award
  (2007), Entrepreneurial Success story in Atlanta (2009) etc.
Smart work &
                                             regional
                                        development
• Notable share of global GDP consists of immaterial (digital)
  content

                   TITRE DE LA PRESENTATION
• ICT allow to work anytime and anywhere

• The “geographic paradox” - investments in digital economy
  tend to be located in large urban centres
Main challenges
•   Tacit knowledge & face-to-face communication

•   Infrastructure, skills and knowledge

•   The rigidness of labor market in
      rural areas
                   TITRE DE LA PRESENTATION
•   The adaptation of behaviour
Smart Work Centre -
special premises for smart workers considerably
near the person’s living place




              TITRE DE LA PRESENTATION
An example
Berwick Workspace,
UK
•   Rural area with ~12 000 inhabitants

•   Developed by the local municipality, opened in 2010
•   31 work places available, ~100 users, >80% occupancy
                      TITRE DE LA PRESENTATION

• High speed internet (co-financed by the local municipality)
• Business incubation services
An example
Portes du Morvan,
France
•   Town with ~1300 inhabitants

•   Opened in 2008 following a request from a potential smart
    worker
•                    TITRE DE LA PRESENTATION
    Organised around a public ICT hub managed by an NGO

•   8 individual offices, 100% occupancy
•   6 new offices planned in 2013
An example
    Kõnnu SWC, Estonia
•    Village (70 inhabitants) 40 km from the
     capital city Tallinn

•    Established by 5 local women, now 12
     women working
•    Women share their knowledge, jobs and
     childcare duties
•    A unit in the labourTITRE DE LA PRESENTATION
                         market

•    Communication and social life – events,
     projects, courses for children etc.
To conclude
•   A wider use of smart work might increase an in-
    migration of high-skilled professionals to rural areas

•   Smart work centres may act as facilitators of
    socioeconomic activity, especialy when providing
    training and business incubation services
                    TITRE DE LA PRESENTATION
•   A need for explanatory and encouraging measures
    (subsidies, coordination of job opportunities etc.)
Awareness campaign Get Online Week in Estonia




                    TITRE DE LA PRESENTATION

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Smart Work in Rural Areas (Hamburg, 2012)

  • 1. Smart Work (telework) TITRE DE LA PRESENTATION in rural areas Alise Vitola Hamburg, 2012 Riga Technical University Latvia
  • 2. Smart Work - working independently of time and place with the help of ICT TITRE DE LA PRESENTATION
  • 3. Why Smart Work? Personal reasons: • Time economy • Flexible work arrangements • Work/life balance • Residing outside cities Economic reasons: • Increase in productivity • Reduction of costs (transport, TITRE DE LA PRESENTATION real estate etc.) • Recruitment and retention of staff • The image / reputation
  • 4. An example Microsoft Netherlands • New building in 2008 • No assigned desks - work anywhere in the building • Layout of the building - to maximize communication and collaboration TITRE DE LA PRESENTATION • Encouraged to work more from home & allowed to work anytime • A weekly 1:1 with their manager - a physical or virtual meeting
  • 5. Measurable improvements • Increased productivity by 25% • Won “Great Place to Work” award in 2009, 2010 and 2011 • Employee satisfaction rose from 5/10 in 2008, to 8/10 in 2011 • Sick leave days are down to 1,5% from 2,5% • Increased market reputation PRESENTATION TITRE DE LA • Increased Employees’ mobility • Reduced real estate costs by 30%
  • 6. An example • Flexible staffing firm in US – 100% virtual work force • Established in 2005 by Allison O’Kelly, Harward Business School graduate and a mother of 3 sons • Grown to 17 franchises • > 50 000 candidates • Industries: accounting, legal, marketing, HR, finance, management etc. TITRE DE LA PRESENTATION • Several awards since 2006: Moving into the Future Award (2007), Entrepreneurial Success story in Atlanta (2009) etc.
  • 7. Smart work & regional development • Notable share of global GDP consists of immaterial (digital) content TITRE DE LA PRESENTATION • ICT allow to work anytime and anywhere • The “geographic paradox” - investments in digital economy tend to be located in large urban centres
  • 8. Main challenges • Tacit knowledge & face-to-face communication • Infrastructure, skills and knowledge • The rigidness of labor market in rural areas TITRE DE LA PRESENTATION • The adaptation of behaviour
  • 9. Smart Work Centre - special premises for smart workers considerably near the person’s living place TITRE DE LA PRESENTATION
  • 10. An example Berwick Workspace, UK • Rural area with ~12 000 inhabitants • Developed by the local municipality, opened in 2010 • 31 work places available, ~100 users, >80% occupancy TITRE DE LA PRESENTATION • High speed internet (co-financed by the local municipality) • Business incubation services
  • 11. An example Portes du Morvan, France • Town with ~1300 inhabitants • Opened in 2008 following a request from a potential smart worker • TITRE DE LA PRESENTATION Organised around a public ICT hub managed by an NGO • 8 individual offices, 100% occupancy • 6 new offices planned in 2013
  • 12. An example Kõnnu SWC, Estonia • Village (70 inhabitants) 40 km from the capital city Tallinn • Established by 5 local women, now 12 women working • Women share their knowledge, jobs and childcare duties • A unit in the labourTITRE DE LA PRESENTATION market • Communication and social life – events, projects, courses for children etc.
  • 13. To conclude • A wider use of smart work might increase an in- migration of high-skilled professionals to rural areas • Smart work centres may act as facilitators of socioeconomic activity, especialy when providing training and business incubation services TITRE DE LA PRESENTATION • A need for explanatory and encouraging measures (subsidies, coordination of job opportunities etc.)
  • 14. Awareness campaign Get Online Week in Estonia TITRE DE LA PRESENTATION