CHAPTER 23: THE USD OF THINGS

The classic boundaries of enterprises are fading under the influence of technological innovations, cultural changes and globalisation. As a result, in some enterprises the support services will change substantially in the coming years, and with them the role of the USD.

After reading this chapter, the reader will better understand how new ideas will change the USD, perhaps as an ‘intelligent hub’.

23.1 A focus on personal work environment

In the previous chapters, the USD position within the enterprise’s management was established based on sound principles and the concept of building blocks. The USD was positioned as part of the service management concept of the enterprise, more or less within the classical boundaries of an enterprise. But the classical boundaries of enterprises are fading due to technological innovations, cultural changes and globalisation. Many researchers have been conscious of this trend for a long time, “The developments in the field of ICT will continue at lightning speed and ensure that we can do our work better, easier and faster. ICT will ensure that we fundamentally change basic office processes”.40

However, changes are more radical than supposed at that time, and are not limited to office environments. No one was able to foresee that the new technological possibilities would structurally change our economy and the way in which we deal with each other.

Technological changes have affected every part of life, including through the rapid rise of Internet shopping, Internet banking and insurance and the use of social media such as Facebook, Twitter and LinkedIn. Innovations have consequences for the way we deal with our work and how enterprises are organised. Hodge, Poglitsch and Ankerstjerne note that facilities management increasingly focuses on integral service provision in the work environment (Hodge, Poglitsch and Ankerstjerne).⁴¹

This corresponds with the contemporary vision of the workplace of the future, which perceives that the traditional office structure is shifting from a network of people in a central physical location, to a virtual network of people in various locations (ISS, 2013). Where physical locations are standardised, the virtual work environment is becoming more digital and personalised. This is a challenge for service and facilities management, and it may be met by developing the USD into the integral supporter in a virtual network of work environments.

23.2 The new work environment is virtual and individual

Although the ‘classic’ working environment will still continue, the new work environment is no longer limited by physical offices. Supported by new technological possibilities such as smartphones, laptops, tablets and broadband services, people can sit anywhere and work together. The Martini feeling of ‘anytime, anywhere, anyplace’ is becoming a reality today.

Driven by competition, new ways of doing business, new ways of earning money and new forms of collaboration, enterprises want to be able to respond quickly to changing environments. Helped by technology, a virtual environment is created in which new organisational forms arise. Video conferencing makes it possible to meet with people who are on the other side of the world, and collaboration can take place in digital spaces where multiple users can work simultaneously in the same document. Time differences between locations become less of an obstacle. Collaboration with other enterprises takes different forms and leads to network enterprises, where it is not always clear whether an enterprise offers a platform or offers services via the platform itself. Borders between enterprises are fading, and at the same time, startups and small companies get opportunities that they did not have before. The physical reality thus shifts to a virtual reality.

Modern employees have less trouble separating work and private life. In order to improve the balance between the two, more and more enterprises have made flexible working hours possible, and they often try to organise the workload in such a way that it no longer needs to be physically carried out in a traditional workplace.

The working environment takes shape through combinations of work at the office, rented or temporary locations (café, hotel, rental office) and at home. At the office, the workspace varies from private spaces, open office space, temporary workspaces, touchdown points or landing areas and project spaces. Use is made of various (mobile) devices. At the moment these are laptops, smartphones and tablets. There is already considerable experimentation with wearable technology and in extreme cases, technology embedded in humans. Think of devices in clothing (wearables), in watches (smartphones), in glasses (Microsoft^® HoloLens) and in virtual reality.

23.3 Technical developments

The Internet of things (IoT) is a collective name for five technological developments that make it possible to interactively connect the physical world with the digital world. The IoT comprises of:

1. Cloud technology;

2. Mobile technology;

3. Development of social media;

4. Analysis of large amounts of data (big data); and

5. Sensor technology.

In this context, ‘things’ refers to physical objects with built-in sensors that collect and send environmental and status information, receive instructions and which may act autonomously to varying degrees.

Examples:

The IoT leads to entirely new applications. Clothing producers follow the retail route of their denim jeans thanks to a tiny chip that they have hidden. Farmers use ‘smart sensors’ to monitor their harvest via the Internet. Meteorologists predict hurricanes by monitoring stations around the world. Car manufacturers work on cars that can drive independently with the aid of sensors. Advertising boards make contact with passersby and adjust their advertising immediately, and ‘smart’ pills are introduced into the body and are able to tackle specific diseases at specific locations.

When it comes to the possibilities that technology offers, creativity is the limiting factor. Significantly, we consider an object or application to be ‘smart’ in relation to the richness of the information and use of the software and sensors provided. Six types of application may be distinguished with each type performing a different function42; these applications:

1. Monitor the behaviour of people, objects or place them in a central position. This type includes inventory management, as well as insurance companies that place sensors in cars and set the level of their premiums based on drivers’ behaviour (‘presence-based advertising’);

2. Strengthen insight into environments; this includes sensors within infrastructure (roads and buildings) to measure conditions in the environment (pollution, humidity and weather);

3. Facilitate sensor-driven decision-making analysis and direct interventions in ‘real time’. This type of application includes the continuous monitoring of chronic diseases that helps doctors choose effective treatments. Chain stores also use this technology to follow the behaviour of buyers so they can improve the layout of their stores;

4. Optimise processes. This type combats the wastage from automated processes and provides more refined tuning of operations on assembly lines;

5. Optimise consumption. This type provides more detailed insight into the consumption of resources (for example, energy and electricity) so that appropriate action can be taken. Think of ‘smart’ electricity and gas meters in houses that show real time consumption and costs; and

6. Provide complex autonomous systems. This type of application may, for example, prevent collisions or coordinate the use of independent robots to clean up hazardous material.

The IoT also enables two developments that are directly related to the development and innovation of the working environment: smart buildings and smart cities. The use of sensors in buildings leads to completely new insights into improving their infrastructure and how they are used and maintained. Data on and in buildings are collected and used to gain awareness into the condition of the buildings themselves (e.g. climate, energy consumption, maintenance), and the use of the buildings (e.g. occupation, use of spaces, walking routes). The possibilities are many:

• Assess the use of rooms. For example, data relating to self-flushing toilets may permit cleaning schedules to be effectively adjusted;

• Determine whether a dispenser needs to be refilled;

• Provide technical information about the state of maintenance;

• Ensure that system faults are immediately reported, including their nature and location;

• Notify motorists which parking spaces are free (this is often done via smartphone);

• Measure whether plants have enough nutrients and moisture;

• Save energy;

• Track rent and contributions for tenant use;

• Track space usage (presence and behavioural detection may be used to explore future use);

• Keep inventories; and

• Monitor compliance. This can apply to health and safety regulations, noise levels, CO₂ levels, temperature and obstacles in evacuation routes.

Managers of smart cities are also looking for ways to further develop using the IoT.43 Research and experiments take place to promote self-sufficiency of citizens, good coordination of care provision and need (the nurturing city), improving government services, improving the quality of education, strengthening safety features, stimulating activity through regulatory pressure, and the development of future-proof industrial sites. A concrete application is already in place that connects companies in a city via a network for information exchange and cooperation, which gives a new dimension to the new way of working (Or Big Brother…).

23.4 The USD as an intelligent hub

All of these developments make it possible to think about enterprises, work and living in a completely different way. Organisational structures change and with them, the ways in which work is completed, decisions are made, processes are managed, work environments are set up and large or even global projects are organised.

What does this mean for the USD? Thanks to these developments, services can be delivered across borders, continents and countries; a larger and more diverse clientele is in range; customisation is possible and greater efficiency can be achieved. The unity of the working environment is changing from the physical workplace to an environment consisting of smart buildings and smart cities. If the working environment arises from a network of locations in buildings and cities, the service organisation’s focus is to bring three components together. Accordingly, enterprises are always looking for the most effective and efficient strategy to manage the working environment. This focus translates into solutions for the smart and practical use of available workspaces: limiting vacancies, making optimal use of rented environments, limiting travel costs and providing optimal support for knowledge workers and employees in projects.

As a result of these changes, a USD must deal with:

• New opportunities and developments;

• Working environments in smart buildings and smart cities;

• Flexible possibilities to setting up working environments (think of rented locations, including office hotels);

• Users’ physical and digital needs and desire for support from users (they must respond proactively to these);

• The smart and flexible use of existing contracts;

• The organisation of infrastructures for collaboration; and

• The consequences of managing and setting up working environments in multi-tenant and multi-client buildings.

Figure 23.1: The evolution of the USD

How this USD looks has yet to be discovered and explored. The possibilities are many, but much is still in the phase of experimentation and discovery. Some enterprises are working on the development of use-cases. Others experiment on a small scale with the use of QR codes, smartphones and sensors that can measure the conditions of the building and installations.

Developing the infrastructure to make maximum use of the possibilities takes time and money. Much is not yet fully developed, such as further refinement and improvement of software and sensor equipment. In the economic and legal field too, much remains to be determined. Consider, for example, the new license and contract conditions or consequences for the privacy of employees.

Start by building insight into the necessary technology. Experiment on a small scale and look for practical possibilities with a big impact. These are often found in reducing waste, measuring and reducing energy consumption and the maintenance of installations and buildings.

23.5 The USD as a hub or platform

What are the attributes of a USD as a platform or a hub? Exactly how this USD looks is still to be discovered and explored. The possibilities are many, and much is still in the phase of experimenting and discovering. Some enterprises are working on the development of use cases. Other experiments revolve around the use of QR codes, smartphones and sensors that can measure the conditions of the building and installations. Several providers are developing their management information systems into a platform that can be used to transform traditional services into the extended services, to be used in a hub.

Based on these initiatives, we can gain insight into the characteristics of a USD as an intelligent hub. These aspects are explained in Table 23.1.

Table 23.1: Possible Features of a USD as an Intelligent Hub

Attribute	Explanation
Information	Availability of information about the entire value chain (knowledge centre).
Technology	Availability of a platform where information is provided in real time. The platform must be able to connect users and internal and external facilitators. The platform can take different forms, on the one hand, to connect different subcontractor services and various groups of users and, on the other hand, to act as an intermediary between these parties that make transactions possible on the basis of the agreements made previously.
Service providers and value chain	Control and knowledge of all service providers, services and the value chain. The value chain can also display characteristics of dynamic contracts that differ from the traditional chains. Easily scalable.
Integration in the service organisation	Has a position in the enterprise that is independent of the other service providers. Self-organisation, exhibits characteristics of organic developments, as close as possible to the customers.
Management and employees	Management and employees have competencies that fit with high-quality service and hospitality. Employees are professionals who have to work independently. Management creates the preconditions so that professionals can perform at the optimal level. Self-management optima forma is the key to making this possible. A wide range of reports and problems will require creative solutions.
Service landscape	Flexible and individual. Users expect more customised services and more options that are continuous or easily available no matter where and how they work. Recognise and apply a service landscape philosophy.

As can be seen from these characteristics, the USD as a hub comes from existing forms of USD organisations. The introduction of new technology simultaneously with other forms of working and living has consequences for how we look at and apply service provision. New technology now has a major impact on how we can request service and get service, how we look at enterprises, hierarchy, management and what we expect from employees. Think of smartphones, tablets, IoT, big data, social media, cloud computing, business intelligence, virtual reality, NAN technology, business intelligence and robotics.44

Figure 23.2, on the basis of these characteristics, sketches a framework that gives the manager a handle to think practically about the further development of the USD to a hub.

The USD is in the middle of a web consisting of six axes. These axes show the development direction of six aspects that form part of a USD as a hub.

Figure 23.2: Framework for the USD as an intelligent hub

The two inner circles indicate the core features of the USD as they have been discussed so far. On the outer line, the contours of the USD become visible as a hub.

Developing the infrastructure to make maximum use of the possibilities costs time and money. Much remains to be developed, and not only technically such as further refinement and improvement of software and sensor equipment. In the economic and legal field too, much remains to be determined. Consider, for example, the new license and contract conditions or consequences for the privacy of employees. Start by building insight into the necessary technology and experiment on a small scale. Look for practical possibilities with a big impact and recognise opportunities and use them.

Although the consumer pioneers or futurologists like to talk about a total turn and innovation, there will be a new possibility that exists in addition to the traditional forms of organisation. Our working environment is constantly changing and because of this, our service requirements will also differ. A products and service catalogue that is made up of a static group of services is hopelessly outdated. We need flexibility and to renew the service landscape, depending on individual users, so that it is situation-specific.45 It is no difference that it will have consequences for the organisation and operation of a USD.

 

40 Veldhoen, E., Kantoren bestaan niet meer, versie 2.0, Rotterdam: Uitgeverij 010, 1998.

⁴¹ Hodge, G., Poglitsch, R. & Ankerstjerne, P., “Perspectives on the FM market development”, ISS White Paper, 2014.

⁴² Chui, M., Löffler, M. & Roberts, R., “The Internet of Things”, McKinsey Quarterly, March, 2010.

⁴³ Manen, T. van, Bloem, J. & Doorn, M. van, “SMACT and the City”, VINT onderzoeksnotitie 4, The Sogeti trend Lab VINT, 2014.

⁴⁴ ISS 2020 Vision, “Future of Service management”, Copenhagen Institute for Future Studies, Whitebook, 2018.

⁴⁵ ISS 2020 Vision, “Future of Service management”, Copenhagen Institute for Future Studies, Whitebook, 2018.