Work practices have changed significantly in recent years – driven by, and driving – major advancements in technology and communications.
Ostensibly, the parameters of the workplace have become increasingly fluid. Indeed, whether it’s because companies seek around-the-clock employee engagement amidst heightening globalisation, or because of shifting attitudes towards work-life flexibility among employees themselves, the idea of a rigid routine now seems rather archaic.
The proliferation of smartphones and other connected devices – spearheaded by the likes of Apple (US:AAPL) – means we can liaise with each other remotely at the touch of a button, partaking in the 'internet of things'. Moreover, improved internet access and cloud computing developments mean that we can actually collaborate on files simultaneously – even from across the world. Alphabet’s (US:GOOGL) word-processing platform 'Google Docs' constitutes just one case in point.
In the physical realm, this movement towards 'anytime, anywhere' work has fuelled – and in turn, been fuelled by – the advent of shared office space. As property group Knight Frank explains: "Business success in the digital age is about creating customer-centric services and flexible solutions, not the simple provision of fixed and standard products." The "emergence of the space-as-a-service model is rapidly becoming the new reality, as best exemplified by the recent explosion in co-working spaces".
Now, freelancers, start-ups and even satellite outposts of much larger organisations can transcend the confines of the traditional office – hiring desks within a 'co-working' building. Paying only for the seats one requires, rather than huge, under-used buildings, could prove highly economical.
Of course, many of us still attend the same corporate premises week in, week out. But technology is encouraging transformation here, too – such as the integration of artificial intelligence (AI). Various jobs can now be automated, affecting levels of accuracy and endurance beyond humankind’s capabilities. This could signal some relief for the UK, with its infamous productivity crisis, and it’s not so far-fetched to envisage computers helping out as the ageing population – a more universal challenge – enters retirement.
These trends look likely to sustain as the workplace continues to evolve. And various UK-listed businesses are already benefitting from – or facilitating – this progression.
Remote meetings
According to UK communications regulator Ofcom, three-quarters of adults use a smartphone. For workers with nomadic or flexible schedules, these devices can enable messaging, call-making and online browsing. But conference calls are a different beast – offering more room for complication or the risk of appearing unprofessional. With multiple parties involved, there’s a need to 'dial in', to eliminate background noise, to avoid speaking over others and to ensure that you’re all on the same page.
Enter, LoopUp (LOOP), which provides remote meetings software. First, the call host creates a meeting on their computer or smart device. Then LoopUp calls each participant on their preferred number, keeping everyone abreast of who has joined. There are options to mute unwanted sounds, and to share one’s screen – revealing which documents are being discussed. Such a forum could support anything from a quick chat to negotiations around a complex financial transaction.
The group’s half-year numbers to June were broadly encouraging, with 39 per cent revenue growth to £12m. True, organic momentum of 22 per cent was slower than the previous three first-half periods – but this was down to LoopUp’s expansion into Australia, meaning two out of its nine new-business sales teams ('pods') were building their pipelines here.
Virtual communication
Conference and video calls are now commonplace. But advances in virtual reality (VR) and augmented reality (AR) could amount to an even more innovative approach to meetings in future.
For example, Alternative Investment Market (Aim)-traded minnow VR Education (VRE) enables simulated educational and corporate training. It’s easy to see how this type of format could, one day, be appropriated for general corporate purposes, including regular one-to-one conversations.
That said, as far as VR Education is concerned, there are perhaps more pressing matters to address. An October trading update revealed that 2018 revenues would be materially below expectations, dampened by delays in onboarding its ‘Titanic VR’ experience onto PlayStation.
Generally, as we explored in a sector focus earlier this year, VR shows signs of finally taking off among mainstream consumers – but, the content and hardware markets here have a mutualistic relationship, with each reliant on the other’s buoyancy.
Cloud computing
The cloud has become a buzzword of sorts, but, today, it's integral to the running of many organisations. Among its various applications, the cloud allows us to access data remotely, from anywhere, rather than needing to retrieve this from a specific computer. The only requirement is an internet connection – something increasingly ubiquitous.
Research house Gartner expects the market for public cloud services (those delivered by external cloud service providers) to grow 17 per cent in 2019, reaching $206bn (£159bn). Good news for the likes of Iomart (IOM), which provides private and public cloud computing services predominantly in the UK.
That said, with the rise of 'big data', the information managed by companies has grown in complexity. And as employee networks become more unwieldy, spanning offices, homes and continents, there’s mounting pressure for such data to be continuously accessible.
That's where WANdisco (WAND) steps in. A 'live data' company, its patented 'active data replication' technology, 'Fusion', continuously replicates constantly-changing data to the cloud and on-premises data centres. This is done without downtime, and it allows teams to collaborate from different locations.
Out of the office, cloud-based working can help other businesses too. For example, small-cap Zoo Digital (ZOO) uses cloud infrastructure to deliver subtitling and dubbing services for the entertainment industry, enabling voice actors and other personnel to contribute away from the studio.
Flexible offices
The cloud is one of various innovations that have enabled businesses to occupy the likes of WeWork – perhaps the best-known operator of co-working properties. The private behemoth has garnered investment from SoftBank’s 'Vision Fund', a vehicle also backed by Saudi Arabia, and was reportedly valued at $20bn (£15bn).
There’s some debate about whether this valuation is justified, but – in any case – WeWork exemplifies a broader trend towards flexible workspaces. Real-estate services firm Cushman & Wakefield found that operators of these comprised four of the top 10 biggest takers of central London space between 2012 and 2017.
Several London-listed companies also partake in this market – including tip Workspace (WORK) and IWG (IWG), whose portfolio includes Regus. British Land (BLND) also launched Storey – a flexible workspace brand – in June last year, providing offices for businesses with 20-70 employees "who have outgrown co-working space and whose needs have evolved".
Automation
Automation might conjure images of humanoid robots usurping our jobs. And in fairness, multiple roles could be displaced; the McKinsey Global Institute estimates up to 800m by 2030. But for those fearing so-called technological unemployment, these developments should pave the way for the creation of new jobs. Yes, this is likely to necessitate training and enhanced skillsets – but the likes of corporate e-learning group Learning Technologies (LTG) could hypothetically pitch in here.
Moreover, instead of Terminator-esque destructive machines, we’re seeing software robots delivered into offices via so-called ‘robotic process automation’ by Aim-listed Blue Prism (PRSM), and automation integrated into Ocado’s (OCDO), Asos’s (ASC) and Boohoo’s (BOO) customer fulfilment centres and warehouses.
