decentralization of knowledge work

Words of IT Wisdom From Silicon Valley to Governments

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[I]t’s no longer practical to have a centralized IT operation, where city governments design and build large-scale computer programs that can take years to implement, are rarely delivered on time and are often over budget. Instead, Keene wants cities to break up big technology projects into more manageable pieces that can be built more quickly, an idea called “agile development” that is already a growing trend in public sector IT. Keene also wants cities to rely less on expensive hardware and take advantage of cloud computing. “We’re moving everything we can into the cloud,” he says. “It’s absurd to keep maintaining all those server farms.”

Source: Words of IT Wisdom From Silicon Valley to Governments

Nightmare Building

That same decentralization principle also applies to the knowledge workplace. It no longer makes sense to have knowledge workers assemble daily in a centralized, commute-in office. Just as information and communications technology has outmoded the proprietary, on premise server, it has also obsoleted the office building as knowledge work becomes an activity that can be performed anywhere with a decent Internet connection to the server cloud.

German push for universal Internet service recognizes decentralization of economy

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Germany will make an additional 1.3 billion ($1.45 billion) euros in funding available to expand broadband internet access to poorly-connected regions, the Transport and Digital Infrastructure Ministry said on Friday.

The government announced plans last October to spend 2.7 billion euros as part of a push to give all households in Germany access to internet speeds of at least 50 megabytes per second by 2018.

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Better access is viewed as a crucial part of Germany’s so-called Digital Agenda, which aims among other goals to promote the digitization of industry by connecting factory floors to the internet.

Many of Germany’s small-and-medium-sized companies – known as the Mittelstand and which form the backbone of the economy – are located in rural areas.

Source: Germany boosts funds for faster internet to 4 billion euros

The last paragraph points up the profound power of advanced telecommunications to transition the economy away from the Industrial Age model where economic activity is centralized in large enterprises located in major metro areas. Apparently that’s not the case in Germany — and is likely be increasingly so in other advanced nations in the age of the Internet.

This is the first national policy that implicitly recognizes that smaller businesses located outside of central metro regions will play a key role in the evolving economy and thus require advanced telecommunications infrastructure. This also reframes what is generally referred to as “rural broadband” into larger national economic issue.

If Work Is Digital, Why Do We Still Go to the Office?

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The transformation of our work environments is only just beginning, but it could have a major impact on architects, developers, corporations, and society at large in the years to come. Far from making offices obsolete, as the digital pioneers of the 1990s confidently predicted, technology will transform and revitalize workspaces. We could soon work in a more sociable and productive way, and not from the top of a mountain. The ominous “death of distance” may be reversed with the “birth of a new proximity.”

Source: If Work Is Digital, Why Do We Still Go to the Office?

This analysis ignores what I would term the “tyranny of distance” that comes into play with daily commute trips to centralized office buildings. And that tyranny extracts an enormous and now unnecessary cost from knowledge workers in lost personal time, stress and daily travel expense.

The 1990s visionaries (and for that matter, those that preceded them in the 1960s (Arthur C. Clarke: “Men will no longer commute, they will communicate”) and the 1970s (Alvin Toffler and the “electronic cottage”) were right: information and communications technology disintermediates distance. It has now matured to the point that the daily commute is obsolete and collaboration can be done virtually with the occasional in-person meeting to reinforce social ties.

High urban rents and falling rural land prices drive flight of startups to countryside – Workplace Insight

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We’ve reported before on the flight of tech firms and other startups from the UK’s cities to the countryside. Now it appears that 2016 will see an acceleration in the exodus, as a consequence of the perfect storm of expensive rents in the cities, falling rural land prices and a growing number of people using technology and improving digital infrastructure to live somewhere they feel they have a more balanced life. That is the striking conclusion of a new survey from the Royal Institution of Chartered Surveyors (RICS) and Royal Agricultural University (RAU) indicates. Over the second half of 2015, non-farmers, such as those starting-up cottage industries, accounted for around 25 per cent of rural land sales. This figure was up from just 18 per cent in the first half of 2015, according to the RICS/RAU Rural Land Market Survey H2 2015 and the trend was strongest in South East England where non-farmers accounted for 32 per cent of all sales.

Source: High urban rents and falling rural land prices drive flight of startups to countryside – Workplace Insight

In my eBook Last Rush Hour: The Decentralization of Knowledge Work in the Twenty First Century, I discuss this migration trend first predicted by Jack Lessinger in his 1991 book Penturbia: Where Real Estate Will Boom After the Crash of Suburbia.

Lessinger’s book identified real estate microeconomics as the key driver: lower and more affordable housing costs in smaller locales where housing prices declined during the post World War II suburban boom. Less than a decade after Penturbia was published, the Internet came into widespread use, enabling the decentralization of knowledge work out of large metro areas to less populous ones, adding a powerful accelerant to the shift.