Proceedings of 8th European Assembly on telework (Telework2001)

4PREFACENew ways <strong>of</strong> organising work in the knowledge-based and sustainable economy was the coresubject <strong>of</strong> the e-work 2001 conference that was held on 12-14 September, 2001, in Helsinki. Theconference was the annual main event covering <strong>European</strong> telework and new ways to work, and itwas attended by 450 participants from 30 countries.During the past decade, the concept <strong>of</strong> telework has undergone a major change. Instead <strong>of</strong> workingin one place away from the <strong>of</strong>fice, we now focus on distributed and mobile work at variouslocations during flexible working hours. Nowadays, the activities are mediated by increasinglysophisticated communications technologies. E-work is becoming increasingly common as aresult <strong>of</strong> general economic, technological and organisational progress. It is based on expandinginformation networks, through which one’s own working community is today integrated withthose <strong>of</strong> clients and reference groups. For a large number <strong>of</strong> employees and entrepreneurs, theinformation network already is a very natural working environment. The slogan <strong>of</strong> the conference,“ Connected presence – Working together on the net,” referred specifically to working within suchinformation networks.The premise <strong>of</strong> the conference was that e –work needs to be discussed in the broader context<strong>of</strong> social and economic change in Europe. The programme <strong>of</strong> the conference was seeking foran answer to the question <strong>of</strong> how information and communications technologies could enablerealising economically, socially and regionally sustainable solutions in the organisation <strong>of</strong> workand business activities. As a fresh viewpoint, the programmatic development <strong>of</strong> working life wasadded to the traditional programme <strong>of</strong> the Telework conferences. The conference programme alsohad an academic section, which looked into the trust and the social and intellectual capital as a basefor successful implementation <strong>of</strong> e –workHalf the presentations during the conference were given by speakers <strong>of</strong> organisations in the privatesector and half by those in the public sector. The conference proved highly successful in its attemptto have the representatives <strong>of</strong> the public, private and academic sectors come together. It was aforum that brought together the lines <strong>of</strong> thought on the <strong>European</strong> knowledge society, employmentand regional policy, the experiences <strong>of</strong> those involved in concrete developmental work and businessactivities, and good practices, as well as the results <strong>of</strong> both theoretical and empirical studies. Theevent contributed to the <strong>European</strong> knowledge society policy, the application <strong>of</strong> new ways <strong>of</strong> workand the organisational development in Europe, as well as the understanding <strong>of</strong> the current state<strong>of</strong> the subject matter among the different parties involved. There was also a general review <strong>of</strong> thesituation regarding e-work in Central and Eastern Europe.E-work 2001 was a cooperative effort <strong>of</strong> the Finnish Ministry <strong>of</strong> Labour and the University<strong>of</strong> Tampere, and part <strong>of</strong> the organising was carried out as e-work. The event was realised incooperation with the <strong>European</strong> Commission DG Information Society and many other partners, mostnotable <strong>of</strong> which were Elisa Communications Oy, Workplace Development Programme Finlandand the National Telework Theme Group. We would like to extend our gratitude to Pr<strong>of</strong>essorReima Suomi <strong>of</strong> Turku School <strong>of</strong> Economics and Business Administration, who organised theacademic stream <strong>of</strong> the conference. We would also like to thank the conference speakers andsession chairs for their important contributions, and all organisations that committed time andfinances to facilitating the conference.

7TABLE OF CONTENTSPrefacePLENARY SESSION PRESENTATIONSI Strategic perspectives.................................................................................................................. 9From telework to e-work – humane organization <strong>of</strong> work,Minister <strong>of</strong> Labour, Tarja Filatov, Finland.......................................................................... 12The New Policy Agenda for eWork in Europe, Peter Johnston,Head <strong>of</strong> Unit, <strong>European</strong> Commission – DG Information Society ..................................... 15Telework and local entrepreneurship: new forms <strong>of</strong> work enabled by moderntechnology, Sinikka Mönkäre, Minister <strong>of</strong> Trade and Industry, Finland ........................... 20Promoting an <strong>European</strong> framework for corporate social responsibility, Dominique Be,Deputy Head <strong>of</strong> Unit <strong>European</strong> Commission – DG Employment and Social Affairs ....... 23Information society, Globalisation and Sustainable Development: Impacts on theEnvironment, Dr. Franz Josef Radermacher, Pr<strong>of</strong>essor, FAW, Germany............................ 27Summary from EPRI meeting, Jouni Backman, Member <strong>of</strong> Parliament, Finland ............. 33<strong>European</strong> perspectives on the knowledge society, Session summaryEero Polus, Labour Market Counsellor, Ministry <strong>of</strong> Labour, Finland................................ 36Conclusions, Matti Salmenperä, Director, Ministry <strong>of</strong> Labour, Finland ............................ 41II Empirical evidence................................................................................................................... 45e-Work in Europe, Indicators for Measuring Adaptability <strong>of</strong> Work Arrangements,Werner B. Korte, Empirica, Germany ................................................................................ 46Virtual work in a real world, Ursula Huws, Analytica, UK .............................................. 66Information Security in E-work, Arto Karila, Karila A & E Ltd. Finland ......................... 78Accommodating the new economy: The SANE space environment model,Andrew Harrison, DEGW, UK .......................................................................................... 82User experience with communication technology, Turkka Keinonen,Univeristy <strong>of</strong> Art and Design Helsinki UIAH, Finland ..................................................... 89

8PARALLEL SESSION PRESENTATIONSI Global dimensions <strong>of</strong> the knowledge economy ...................................................................... 95Ethics in Business – VIP Project ,VIP- Voluntary Industrial Code <strong>of</strong> Practicefor IST –enabled Cross-border Work Arrangements, Walter Paavonen,Paavonen Consulting Ltd, Sweden ..................................................................................... 96Short summaries <strong>of</strong> the other presentations in the session, Josef Hochgerner,Centre for Social Innovation, Austria ............................................................................... 102II Technologies for work and business .................................................................................... 105Siemens case: Knowledge sharing by videonegotiation,Pasi Rajander, Siemens Companies ................................................................................. 106Are you ready for tomorrow? Teleware`s solution for successful training,Päivi Piironen, Mobile Technologies, Teleware................................................................ 108III e-work in Central and Eastern Europe ............................................................................. 113Telework - an opportunity for regional development,Edvins Karnitis, Ministry <strong>of</strong> Economy, Latvia ................................................................. 114The Models <strong>of</strong> Implementation Telework Process in the Polish Conditions,Klaudia Smolag, Technical University <strong>of</strong> Czêstochowa, Poland ..................................... 119Telework in Hungary – an Overview, Andrea Wesselenyi,Freelance journalist, Hungary........................................................................................... 130Telework in Estonia: preconditions and use, Taavi Valdlo,Estonian Informatics Centre, Estonia ............................................................................... 136IV Work and business on the net ............................................................................................. 143About extended enterprises, value chains networks and new requirements for e –work,Leopold Reif, H<strong>of</strong>fmann+Reif Consultancy, Germany .................................................... 145NetOrganisation, Stefano Lotti, BrainWorkers Ltd., Italy................................................ 147V New structure – better work? .............................................................................................. 157eLancing – The Future <strong>of</strong> Work?, Karsten Gareis, Empirica mbH, Germany ................. 158Home Telework as a Key Action to Increase Work Satisfaction amongCall Centre Operators, Patrizio Di Nicola, dinicola.it research, Italy .............................. 169

9Short summaries <strong>of</strong> the other presentations in the session,Harri Melin, University <strong>of</strong> Tampere, Finland ................................................................... 180VI Development <strong>of</strong> working life................................................................................................ 183New forms <strong>of</strong> work and the legitimacy to organise, Björn Gustavsen,Work Research Institute, Oslo/National Institute for Working Life, Stockholm.............. 185Innovative Workplace Development and the Future <strong>of</strong> Work- a new R & D-Framework Programme by the German Federal Government,Ursula Zahn-Elliott, Federal Ministry <strong>of</strong> Education and Research, Germany.................. 192Challenges for Programmatic Workplace Development in theKnowledge-Based Economy, Tuomo Alasoini, Ministry <strong>of</strong> Labour, Finland................... 200VII Local dimensions <strong>of</strong> the knowledge economy .................................................................. 207Telework used as a method for moving work tasks to district areas in Norway,Eystein Fossum, Semco AS, Norway .............................................................................. 208Eco-Managed eWork as a New Urban and Regional Strategy, Sirkka Heinonen,VTT Building and Transport, Finland .............................................................................. 213The Western Isles, Scotland: ICT and Job Creation, Norman L MacDonald,Comchairle nan Eilean Siar Council Offices, Scotland .................................................... 218Short summaries <strong>of</strong> the other presentations in the session,Jeremy Millard, Danish Technological Institute, Denmark .............................................. 223VIII Work and sustainability .................................................................................................... 227The Knowledge Economy and Sustainability, Lennart Forsebäck,Försebäck IT & Euro Intelligence AB, Sweden ............................................................... 228IX Academic session................................................................................................................... 231The academic workshop “T -world 2001”, Workshop summaryReima Suomi, Turku School <strong>of</strong> Economics and Business Administration, Finland ........ 233Appendix A: Conference programme .......................................................................................... 237Appendix B: Conference Organisers .......................................................................................... 242Appendix C: List <strong>of</strong> participants ................................................................................................. 243

11PLENARY SESSION PRESENTATIONSI Strategic perspectives

12From telework to e-work – humane organization <strong>of</strong> workMinister <strong>of</strong> Labour Tarja Filatov, FinlandLadies and gentlemen, I wish you welcome to the conference on Telework 2001 where we willdiscuss the essence <strong>of</strong> work and business. One should stress that our interest focuses on work thatcan be considered as being <strong>of</strong> a high level in respect <strong>of</strong> its quality as well as its productivity. Theseprerequisites also secure a high level <strong>of</strong> employment and the willingness and capability <strong>of</strong> peopleto continue working to retirement age.The so-called knowledge society <strong>of</strong>fers an increasing number <strong>of</strong> technical and social systems bywhich we can support the speedy creation <strong>of</strong> knowledge for the special need <strong>of</strong> the client.One may ask whether the human and technical resources are in good use. Does technology supportproduction, does it promote contacts within one’s own organization and with clients? Are theinternal and mutual relations between the workers and the management organized so as to furtherthe creation and dissemination <strong>of</strong> knowledge?Employment and new forms <strong>of</strong> workKnowledge-dominated work is a general trend, the observance <strong>of</strong> which is, as such, a preconditionfor healthy development. One should make a more accurate assessment as to what special factorsemployment depends on. By means <strong>of</strong> innovative forms <strong>of</strong> work one can attain special advantagesrelated to employment and productivity.According to the empirical study made by Pekka Ylöstalo, which focused on Finnish enterprises,workplaces where work made continuous learning possible had an average personnel increase <strong>of</strong> 15persons, whereas the personnel <strong>of</strong> workplaces without opportunities for learning and developmentdecreased. Unfortunately only 1 / 4 <strong>of</strong> all workplaces belonged to these positive cases.The studies also show that the employment effects are the bigger, the more teams, cells, workrotation and quality circles have been introduced.If the workplace achieves process innovations, the increase in employment is threefold in relationto others, and as to product innovations, the difference in the employment effect is 12-fold.

13Learning and organizational developmentA working life based on knowledge and competence needs basic and vocational training. Trainingalso becomes a personal objective. Research studies show that training is a good employmentand productivity investment, if training is acquired for a special need or if work organizationis developed at the same time and the former and new skills are really taken into use in theorganization.Correspondingly, the technological advantages can be realized only when developing the mode<strong>of</strong> operation <strong>of</strong> the workplace. If the workplace does not know how to utilize skills or developedtechnology or if the aim <strong>of</strong> the workplace is to take advantage <strong>of</strong> public means and jobseekerswithout aiming at real responsibility and efficiency, the fault is not to be found in training alone.Ladies and Gentlemen, in order to utilize training and technological investments we needreorganization <strong>of</strong> work. Utilizing training and intellectual capital means a need to shift the focus<strong>of</strong> labour policy to measures for developing working life. Workplaces have to be supported in theimprovement <strong>of</strong> their functions. This work is not simple. Yet, we have acquired informational andorganizational prerequisites for it as well as an appropriate amount <strong>of</strong> practical experience. Thepolicy <strong>of</strong> developing working life is particularly fruitful business and industrial policy, since itutilizes mainly existing human and technical capitals. In the manner <strong>of</strong> the term “Research andDevelopment” (R&D), one should speak <strong>of</strong> “Learning and Organizational Development” (L &OD).From telework to e-workThe traditional definition <strong>of</strong> telework has included working in some other place than the traditionalworking premises <strong>of</strong> the employer, the use <strong>of</strong> information technology and/or telecommunicationstechnology and possibly flexible working times.When studying these qualifiers, we can see that the use <strong>of</strong> information and telecommunicationstechnology is nowadays the prerequisite for almost every kind <strong>of</strong> work. Personal work performancesare based on user interfaces and data networks.The internal and external connections <strong>of</strong> the workplace as well as the transfer <strong>of</strong> informationand data are the elements <strong>of</strong> normal work. According to local and personal agreement, workingtimes are becoming diversified. Mobile technology – like mobiles – makes contacts from andwork performance in any place possible in practice. Thus, technical and institutional changes haveexpanded the general work description in the direction <strong>of</strong> telework.In addition to the above, it has been realized that the meeting <strong>of</strong> the client’s needs requires mutualcooperation at a more pr<strong>of</strong>ound level. This is manifested as a functioning in a value added chain orin value added network. The workers <strong>of</strong>ten work in groups formed by people employed by differentorganizations. Even the interface <strong>of</strong> an organization may be flexible. An efficient organization hasextensive cooperation, is distributing, but also gets added value in many connections.

14For this reason, work has usually been transformed in a direction that telework referred toyesterday. Instead <strong>of</strong> telework, the term e-work is being introduced. Of course, this does not meanthat working life is all at once becoming fully flexible with regard to working time or technology,or that this would even be desirable. Anyway, development is taking a course where teleworklikeworking, i.e. working via data networks, which is technically supported and located in manyplaces, is evenly increasing.Traditionally telework has been connected with the avoidance <strong>of</strong> unnecessary physical motion,saving <strong>of</strong> the environment and division <strong>of</strong> work in a way that is expedient with regard to regionalpolicy. These themes are still topical, and on its part discussion on telework has led to practicalapplications in these areas.E-work and the quality <strong>of</strong> working lifeThe increasing and continuously active connections with many quarters increase both the number<strong>of</strong> work processes and accelerate their cycle. We have to know the advantages and disadvantages<strong>of</strong> the new forms <strong>of</strong> work. It is possible for efficacy and working life quality to be increasedsimultaneously. Thus, we can avoid the wearing out <strong>of</strong> the labour, illness and early retirement. Onno account is a situation allowed where technical and organizational changes in working life wouldlead to increasing burn out.Economic objectivesDuring a 200-year-long period <strong>of</strong> enlightenment, reason and utility we have developed anunparalleled technical and organizational capacity. As a matter <strong>of</strong> fact, the systems we have createdare, as such, the biggest threats if they exceed the limits <strong>of</strong> biology and ecology or the humanrange.Another critical question relates to the management <strong>of</strong> economic and technical systems. We musteveryday wake up to ask whether we are for them or whether they are for us. We are not labour,but people. The results <strong>of</strong> work should be used to build a valuable human life being careful not toexceed environmental load capacity. These expanded human and ecological needs constitute thecentral substance <strong>of</strong> the economic future and the basis for life control.I wish the esteemed participants, the speakers representing the top expertise and the chairmen <strong>of</strong>the conference on Telework 2001 heartily welcome to Helsinki. This event based on networks,cooperation and learning does not merely discuss new forms <strong>of</strong> work, but it also manifests them.

15The New Policy Agenda for eWork in EuropePeter Johnston, Head <strong>of</strong> Unit, <strong>European</strong> Commission– DG Information SocietyThe <strong>European</strong> Council in Lisbon in March 2000 set a new strategic goal for the Union for the nextdecade : to become the most competitive and dynamic knowledge-based economy capable <strong>of</strong>sustained economic growth with more and better jobs and greater social cohesion.The overall aim is to raise the employment rate to near 70 % and to increase the proportion <strong>of</strong>working-age women in employment to more that 60 % in 2010.In March 2001, <strong>European</strong> Heads <strong>of</strong> State reviewed progress at the <strong>European</strong> Council in Stockholm.Europe enjoyed 3.5% growth in 2000, and unemployment fell to its lowest level since 1991. In2001, despite the economic slowdown, Europe still has the best prospects for sustained economicgrowth for over 25 years. The Commission’s recent report shows that employment expanded by1.8% in 2000 to 63.3% <strong>of</strong> the workforce – 3 million more people in jobs than in 1999, and 10million more than 5 years ago.Particular efforts are still needed to attract women to the knowledge economy and IT pr<strong>of</strong>essionswhere they are still underrepresented. Progress has been made : in 2000, 60% <strong>of</strong> new jobs weretaken up by women, with a million more women joining the labour force, and their employmentrate reached 54%.It is now clear that innovation and technology change are driving job creation. Investments in ICThave contributed over 0.5% per year to growth since 1995, and job creation has been particularlystrong in the ICT and related business services with over 3.5 million new jobs. The scope forfurther innovation and gains in productivity is also enormous: liberation <strong>of</strong> nearly 50% <strong>of</strong> Europe’sworkforce from the constraints <strong>of</strong> the keyboard and CRT display (in the proper use <strong>of</strong> which lessthan 20% have been properly trained) can improve work satisfaction and efficiency for a widespectrum <strong>of</strong> people, and allow companies to rethink work organisation within the <strong>of</strong>fice as well asoutside.Use <strong>of</strong> Information and communication technologies is also still growing. 45% <strong>of</strong> all workers usea computer – 74% <strong>of</strong> all “white collar” workers. As many as 20% <strong>of</strong> workers also use a computerat home for work purposes: although only 1 in 10 are yet connected to their employer’s Intranet.Over 120 million (35%) <strong>European</strong>s use the Internet from home via a PC and telephone connection(30% <strong>of</strong> the world total), and this is likely to rise to over 200 million by 2003; over 65% use digitalmobile phones, and these will become a second, and probably preferred, method <strong>of</strong> accessingInternet services when 3G capabilities become widely available in 2003.The views expressed in this article are those <strong>of</strong> the authors and do not necessarily refl ect the <strong>of</strong>fi cial <strong>European</strong>Commission’s view on the subject.

16In the last 5 years, high-skill non-manual “eWork” has accounted for over 60% <strong>of</strong> the new jobs: 1.5million in the high-tech sector itself, and over 5 million with higher education qualifications.In 2002, we will realise the full benefits <strong>of</strong> the single currency and <strong>of</strong> Europe leadership in crucialareas <strong>of</strong> technology development. Yet substantial structural change is now widely accepted as vital.Structural change means change in the way governments and business operate and in the way wework.These changes are most urgently needed to boost productivity, increase non-inflationary growth,and further increase employment rates. They are also necessary if we are to successfully managethe transition to a stable but older population, and to achieve greater environmental and socialsustainability in a global Information Society.In Stockholm, Heads <strong>of</strong> State nevertheless strengthened their commitment to increasing participationin employment, with intermediate targets <strong>of</strong> 67% for the whole working-age population, and <strong>of</strong>57% for women by 2005. They also set an EU target <strong>of</strong> 50% employment participation for oldermen and women (55-64) by 2010.The employment prospects <strong>of</strong> groups with low employment rates, especially women and olderworkers can only be improved if work is made more attractive and is accessible in localcommunities through flexible work arrangements such as telework.Accurate and consistent information about the current extent <strong>of</strong> change is an essential foundationagainst which further progress can be monitored. We have therefore again published this year a“Status Report” on telework and e-Work development in Europe. In 2001, it includes the results<strong>of</strong> the Eurobarometer” survey 1 <strong>of</strong> new working practices in all Member States. This has confirmedthat the overall level <strong>of</strong> “<strong>of</strong>ficially recognised” telework, within negotiated framework agreements,is still too low – only about 4% <strong>of</strong> the EU workforce as a whole. The further expansion <strong>of</strong> teleworkFramework Agreements is therefore still a priority. Progress in this is summarised in Annex I.The conclusions <strong>of</strong> the Stockholm Summit, enables and requires us all to move on to a new phase<strong>of</strong> collaboration across Europe, with wider policy objectives.This new phase has the broader scope <strong>of</strong> ”ework” development for a substantial proportion <strong>of</strong>the <strong>European</strong> workforce. This includes continued development <strong>of</strong> telework, with its now provenbenefits <strong>of</strong> flexibility in time and place. However, it now also anticipates the revolution in workfor most people as new wireless and display technologies change <strong>of</strong>fice equipment and design, andas the nature <strong>of</strong> work itself changes in a knowledge economy where the creativity and innovationbecame more important than simple productivity in routine tasks.Greater participation in work requires that work is not only more accessible, but that it is moreattractive: Not just “more jobs”, but also “better jobs”. At Stockholm, this was recognised by Heads<strong>of</strong> State: A good working environment; a better reconciliation <strong>of</strong> work and personal life; healthand safety at work; employee involvement, and diversity in working life. To this end, the MemberStates will define common approaches to improving the quality <strong>of</strong> work, with a view to definingindicators <strong>of</strong> “quality <strong>of</strong> work” at the Council in Laeken in December 2001, and to adopting ageneral objective in the 2002 employment guidelines.1 Benchmarking report on “Strategies for Jobs in the Information Society”: January 2001

17eWork has also emerged as a key focus in how society is organised, and resources are used.Telework is not just about greater efficiency and productivity – it is increasingly the most effectiveway to stimulate new creativity and more efficient use <strong>of</strong> resources; notably <strong>of</strong>fice space, theenergy resources associated with it, and transport infrastructures.A shift <strong>of</strong> focus towards sustainable development is increasingly important as some <strong>of</strong> the mostdifficult challenges <strong>of</strong> high unemployment appear now to be behind us. Sustainable developmentwill not be easily achieved, even in a knowledge economy dominated by trade in immaterialservices:• Social and economic sustainability will require greater efforts to engage everyonein creative activities; in strong communities that preserve the cultural diversity <strong>of</strong> Europe.• Environmental sustainability will require much greater collective efforts, by both the businesscommunity and governments to improve the efficiency <strong>of</strong> all resource use through betterorganisation <strong>of</strong> work and business.In building on the successes <strong>of</strong> the strategy adopted in Lisbon, The <strong>European</strong> Council in Göteborghas adopted a <strong>European</strong> Strategy for sustainable development and has agreed to integrate it withthe strategy for a knowledge economy. eWork therefore features specifically in the new measuresproposed by the Commission to reverse unsustainable trends in congestion and land-use, as well asin green-house gas emissions.The business community has also taken new initiatives to develop and widen the frameworks forCorporate Social responsibility to flexibility and quality <strong>of</strong> work as well as for environmentalimpact.Work is central to our lives: It is not surprising that its transformation is now central to economic,social and environmental policies. The Summit meetings in Stockholm and in Göteborg havebroadened the Lisbon strategy to encompass the “quality <strong>of</strong> work” and environmental challenges tosustainable development within the transition to a knowledge economy, in a win-win combinationwith higher growth and increased business efficiency.There is a continued need for a wide debate:These assemblies were created in 1994 as an opportunity to bring together business leaders, tradeunions, technology developers, the research community and telework pioneers, with Europe’spolitical leaders – to seek together the best way to realise Europe’s ambitions.This <strong>Assembly</strong> is therefore again about sharing information and building bridges:• bridges between technology development and the life/work balance: addressing particularlythe needs <strong>of</strong> those who currently find it difficult to participate fully in working life –women; older people, those in remote, disadvantaged and rural communities, and the disabled;

19Annex I: Progress in Establishing Framework Agreements for TeleworkHeads <strong>of</strong> State are committed in the eEurope Action Plan to support telework through agreementsby Social Partners. In December 2000 the <strong>European</strong> Social partners (UNICE, ETUC, UEAPMEand the CEEP) agreed in principle to discuss an agreement. In March 2001, the Commissionformally requested them to establish general framework provisions at Community level 2 ; andHeads <strong>of</strong> State in Stockholm looked forward to a positive outcome <strong>of</strong> these discussions 3 .The Commission has proposed a wide definition <strong>of</strong> telework as “a method <strong>of</strong> organising and/orperforming work in which a considerable proportion <strong>of</strong> an employee’s working time is : away fromthe firm’s premises or where the output is delivered; and when work is done using informationtechnology and technology for data transmission, in particular the Internet”. This covers teleworkat home; alternation between work in the firm’s <strong>of</strong>fice and at home; mobile telework, and work inlocal telework centres.The Commission has proposed the following general principles: Voluntary participation and theright <strong>of</strong> return to “normal working”; maintenance <strong>of</strong> employee status; equality <strong>of</strong> treatment;adequate information on assignments and working conditions; coverage <strong>of</strong> costs by the employer;a guarantee <strong>of</strong> specific training; health and safety provisions; respect for working time; protection<strong>of</strong> privacy and personal data; contact with colleagues; collective rights, and equal opportunities.Trade unions, employers and small business associations have been active at the national andsectorial levels in developing agreements on flexible working to the benefit <strong>of</strong> both employers andemployees. The first such agreement covers most <strong>of</strong> the Danish workforce and has contributed tomaking Denmark the telework leader in Europe. The Irish Code <strong>of</strong> Practice for e-Work is also amajor reference and encouragement. It well deserved the <strong>European</strong> e-Work Award for excellencein November 2000.2COM (2001) 7243www.europa.eu.int/council/<strong>of</strong>f/conclu

20Telework and local entrepreneurship:new forms <strong>of</strong> work enabled by modern technologySinikka Mönkäre, Minister <strong>of</strong> Trade and Industry, FinlandLadies and Gentlemen, E-work is a very pervasive topic presenting us a number <strong>of</strong> challenges andopportunities. As the Minister responsible for enterprise policy, let me <strong>of</strong>fer some perspectives thatwe consider most important in this field. Enterprise policy is very horizontal in nature, touchingupon a number <strong>of</strong> ministries and all enterprises. Indeed, in a modern network economy policy,design and delivery are to be equally networked between the different ministries and agencies.Firstly, I would like to point out that economic development in Finland has relied very much onlarge processing industry companies. For a long time, production and export consisted mainly <strong>of</strong>pulp and paper, metallurgy and chemical industry products. This also implied that the productionstructures were very concentrated. In a number <strong>of</strong> industrial locations, there were typically onlyone large manufacturer and very little entrepreneurial activity. Marketing or customer know-howwas not then the strong points <strong>of</strong> Finnish companies.The emergence <strong>of</strong> the information age and the knowledge-based economy have changed manyaspects <strong>of</strong> this. Finland has succeeded rather well during this transition period, notably thanksto the technology policy that was the prime focus <strong>of</strong> enterprise policy during the past decade.The diffusion <strong>of</strong> Information and Communication Technology has been very rapid. The share<strong>of</strong> high-tech exports has grown substantially. However, this development faces many challenges.The concept <strong>of</strong> digital divide is relevant for Finland as well. We have a strong concentration <strong>of</strong>economic activity in some growth areas <strong>of</strong> the country, to the disadvantage <strong>of</strong> rural and remoteareas.The use <strong>of</strong> the new technology in the whole society is no doubt one <strong>of</strong> the main enterprise policychallenges. Enterprises throughout the country, <strong>of</strong> all sizes and in all sectors, should have theopportunity to use the most efficient tools to conduct their business.This brings me to the second point I want to stress. It is crucial that enterprises can find thenecessary competence for their operations in all parts <strong>of</strong> the country. E-work is an importantinstrument in this, as it should optimise the regional challenge by enabling people to participateactively in working life throughout the country.Thus modern technology challenges the promotion <strong>of</strong> regional entrepreneurship in redrawing themarkets. When operating over the net, the demand does not need to be regional and the possibilitieslook different.

21An important part <strong>of</strong> the necessary know-how for the modern network economy is built by theeducational system. We have reached quite a satisfactory level <strong>of</strong> ICT education in schools, withconstantly arising new challenges, <strong>of</strong> course. But the adult population can, and should, adopt theircompetencies mostly at their place <strong>of</strong> work. Every politician should stand for the opportunityfor all citizens to access the networks through supported services <strong>of</strong>fered by, for example, publiclibraries.It is very important that all enterprises can evaluate the potential <strong>of</strong> ICT and the electronicsbusiness in their different functions. It is equally important that the business environment providesthe incentives for investing in both technology and the necessary “organisationware”. Enterprisesshould be able to become aware <strong>of</strong> the improved productivity ensuing from the use <strong>of</strong> ICT.The conventional linear model <strong>of</strong> business processes is challenged by an interactive process. Thusanyone participating in this interactive process is fully integrated and shares all information. Thecontent <strong>of</strong> e-work will be both rich and demanding. The role <strong>of</strong> the geographically most remoteparticipant in the network will be equally central as those <strong>of</strong> the others. With the gap between thetangible and intangible economies narrowing, this will be increasingly important for all e-work.In a sparsely populated country like Finland with major regional problems we need to take fulladvantage <strong>of</strong> this trend.I think we are not sufficiently familiar with these mechanisms in Europe. We policymakers thinkthat we know what is good for enterprises. But we cannot give convincing pro<strong>of</strong> <strong>of</strong> that in terms <strong>of</strong>any deep analysis <strong>of</strong> the knowledge economy and the intangible determinants <strong>of</strong> success.Another complication is that human capital should be considered from many different angles.Education in public policy and human resource management in company practice are among them.Accounting, taxation, financing and investor relationships should also be considered. Ultimately,industrial and entrepreneurial policy and business strategy are further standpoints. I should say thatthis multitude <strong>of</strong> actors is also reflected in the work <strong>of</strong> the <strong>European</strong> institutions. We need a moreconcentrated and multi-disciplinary effort to find the proper policy responses. I am sure that thisConference paves the way towards that. We, the ministers in the Industry Council, should look atthese issues more thoroughly.It seems that the markets do not <strong>of</strong>fer specialist services to support companies, in particular theSMEs, in restructuring their organisations and business processes. In Finland, the MTI is launchinga specialist support service through 15 regional Employment and Economic Development Centresto <strong>of</strong>fer enterprises some remedy for these problems. Private sector consultants trained for it willassess how the enterprises could best make use <strong>of</strong> the network economy.Mr. Chairman, as we can see here again, the central theme <strong>of</strong> the new knowledge organisation, thetheme <strong>of</strong> this Conference, is essential for the enterprise policy as well.My third point concerns the role <strong>of</strong> entrepreneurial activity. In principle, the step betweenindependent e-work and enterprise is a short one. In practice, it is difficult to envisage that therecould be a major surge for entrepreneurial activity without some tradition <strong>of</strong> working life in theimmediate background <strong>of</strong> the entrepreneur. Technical networking skills are one important aspect <strong>of</strong>this. Experience <strong>of</strong> producing and delivering inputs in a larger system is another. The third aspect

22involves interaction and planning. Fully developed e-work will build on all these competencies.And as you remember, the traditional industrial structure in Finland barely gave opportunities forthis. The network economy <strong>of</strong>fers great potential in this respect.The government has a particular project dealing with entrepreneurship. All ministries areparticipating in it in a horizontal fashion. We have given strong emphasis on entrepreneurialinitiatives at the regional level. The ICT has met with a lot <strong>of</strong> interest at regional meetings. I thinkit is fair to say that the network model is seen as an important one with regard to bringing thedisadvantaged regions closer to the more advantaged ones.ICT has been much criticised for not meeting the expectations with regard to regional development.In Finland we have seen some examples <strong>of</strong> traditional telework models. There is room for morenew operation models <strong>of</strong> this kind, which technology renders possible every day.The government has not been advocating any particular business model or engaged itself inmarketing services <strong>of</strong> this kind. In the future the main emphasis will also have to be on the level<strong>of</strong> regional administration or entrepreneurs themselves. The government feels that it should nottry and replace the real business mission holders. Similarly, the government has switched the focusonto the development <strong>of</strong> the general business environment instead <strong>of</strong> directed subsidies.One <strong>of</strong> the problems with technology policy is undoubtedly that it tends to be supply-oriented.High-tech solution development is supported, casting the main challenge <strong>of</strong> technology diffusionor use to a lesser role. New measures are planned to improve the present situation. Still, I believethat enterprise policy is functioning at its best when it <strong>of</strong>fers a platform for deepening knowledgeand for co-ordination <strong>of</strong> different measures. Local adoption <strong>of</strong> this knowledge is most important.We will need to somehow deliver the best practice and leading edge solutions to the local level.Mr. Chairman, In this respect this Conference on e-work is an important and valuable exercise.We all recognise that the new work organisation is a very complex and challenging phenomenon.Yet, it is at the core <strong>of</strong> economic development. I am sure that your work here will bring a majorcontribution to our understanding <strong>of</strong> it. I also hope that we will be able to find common <strong>European</strong>policy models and turn e-work into a success in terms <strong>of</strong> regional employment, entrepreneurship,innovation and success. The policy models should interact with the new organisation modelsand underline that the most productive innovations are social. E-work is indeed at the core <strong>of</strong>productivity and welfare development.

23Promoting an <strong>European</strong> framework forCorporate Social ResponsibilityDominique Be, Deputy Head <strong>of</strong> Unit, <strong>European</strong> Commission– DG Employment and Social AffairsOn 1<strong>8th</strong> July 2001 the <strong>European</strong> Commission presented a Green Paper on promoting a <strong>European</strong>framework for Corporate Social Responsibility. This paper is intended to launch a wide debate onall aspects <strong>of</strong> CSR.Not long ago the dominant economic thinking was that the prime and only responsibility <strong>of</strong> acompany, in particular <strong>of</strong> a multinational enterprise, was to generate pr<strong>of</strong>its.Over the last decade however many factors have driven a move towards CSR, in particular:• new concerns and expectations in the context <strong>of</strong> globalisation and large scale industrial change,• transparency <strong>of</strong> business activities brought about by the media and modern information andcommunication technologies.As a response to these pressures, companies are increasingly recognising their CSR and promotingCSR strategies. As part <strong>of</strong> their CSR strategies, companies are adopting codes <strong>of</strong> conduct, issuingsocial responsibility reports, etc.Ethical consumption is also growing fast as consumers do not only want good and safe products,but they also want to know if they are produced in a socially responsible manner. A growingnumber <strong>of</strong> social labels are appearing on the market. Socially responsible investing (SRI) is alsoexperiencing a surge in popularity among mainstream investors. So why is is the <strong>European</strong> Unionconcerned with promoting CSR?The EU is concerned with CSR because there is much more in it than what is visible and itspotential is far from being fully exploited, in particular because:• it is more than an insurance against bad reputation: it is an investment towards better economicperformance;• whilst companies increasingly recognise their social responsibility, many <strong>of</strong> them have yet toadopt management practices that reflect it;• whilst so far CSR is mainly promoted by a number <strong>of</strong> large or multinational companies, it isrelevant in all types <strong>of</strong> companies and sectors, including SMEs.It is important to understand the full meaning <strong>of</strong> CSR to exploit its full potential for companiesand society.The Green Paper approaches the concept <strong>of</strong> CSR in 3 steps:• how to define CSR;• how companies and stakeholders implement and promote CSR;• how the EU can contribute to add value to existing practices.

25The Green Paper is also addressing the responsibilities <strong>of</strong> companies as well as those <strong>of</strong>stakeholders in promoting CSR. While CSR can only be taken on by the companies themselves,stakeholders, particularly employees, consumers and investors, can play a decisive role - intheir own interest or on behalf <strong>of</strong> other stakeholders in areas such as working conditions, theenvironment or human rights - in prompting companies to adopt socially responsible practices.A growing number <strong>of</strong> companies are adopting codes <strong>of</strong> conducts and publishing social reports.There is a need for greater consensus on social accounting, reporting and auditing practicesin the area <strong>of</strong> social reports while the effectiveness <strong>of</strong> codes <strong>of</strong> conduct would be improvedby proper implementation and verification. Furthermore many companies have yet to adoptmanagement practices that reflect their commitment to CSR. Where they have to integrate theirsocial responsibility in their day-to-day management, companies’ employees and managers needtraining and retraining in order to acquire the necessary skills and competence. Furthermoreas implementing CSR requires involvement <strong>of</strong> the employees and their representatives, socialdialogue plays a crucial part in the wider adoption <strong>of</strong> socially responsible practices.Socially responsible investing (SRI) is growing quickly with more and more SRI funds andindexes. Their quality and objectivity should be ensured through proper audit and quality assuranceprocedures. For SRI to grow further however, financial markets need to improve their awareness<strong>of</strong> its potential returns. There is also a need for further standardisation, harmonisation andtransparency in the screening tools and metrics used by screening agencies. With the development<strong>of</strong> pension funds shareholder activism is expected to increase as a means to induce companymanagement to adopt socially responsible practices.The so-called ethical consumption is growing quickly as consumers say they do not only want goodand safe products, but they also want to know if they are produced in a socially responsible manner.Its market share however remains relatively low, indicating a need to raise awareness. There is alsoa growing number <strong>of</strong> social labels. For ethical consumption to grow further there is however a needfor further standardisation, transparency and monitoring <strong>of</strong> these social labels.Employees are major stakeholders <strong>of</strong> companies. Instruments such as lists <strong>of</strong> best employers canhelp improve information and transparency about best practice in the area <strong>of</strong> human resourcesmanagement. Furthermore, workers’ representatives need to be consulted extensively on CSRpolicies, plans and measures.The <strong>European</strong> approach to CSR is in line with the basic message <strong>of</strong> the Sustainable DevelopmentStrategy for Europe agreed at the Göteborg <strong>European</strong> Council <strong>of</strong> June 2001, that in the long-term,economic growth, social cohesion and environmental protection go hand in hand. It is also linkedwith the reflection <strong>of</strong> the Commission on the White Paper on governance in the <strong>European</strong> Union.As several Member States have recognised the importance <strong>of</strong> CSR and have taken active steps topromote it, a <strong>European</strong> approach to CSR must build upon these initiatives. The <strong>European</strong> approachmust also reflect and be integrated in the broader context <strong>of</strong> various international initiatives, such asthe UN Global Compact, the ILO’s Tripartite Declaration <strong>of</strong> Principles concerning MultinationalEnterprises and Social Policy and the OECD Guidelines for Multinational Enterprises.

26The main contribution <strong>of</strong> a <strong>European</strong> approach will be to provide an overall <strong>European</strong> frameworkpromoting:• the business case for CSR and its value-added;• transparency, coherence and best practice in CSR practices• a structured dialogue between companies and their various stakeholders on CSR.This Green Paper suggests an approach based on the deepening <strong>of</strong> partnerships in which all actorshave an active role to play: companies, social partners, public authorities and NGOs.The consultation on the Green Paper is open until the end <strong>of</strong> 2001. A series <strong>of</strong> events andconferences will take place during this consultation period.CSR is one <strong>of</strong> the priorities <strong>of</strong> the Belgian Presidency which is organising a major Conferenceon CSR in Brussels on 27-28 November 2001. Furthermore the topic <strong>of</strong> CSR will be discussed atthe meeting <strong>of</strong> the Social Affairs Council on 3/12/01 and is also expected to be addressed in theconclusions <strong>of</strong> the Laeken Summit on 14/12/01.In 2002, taking into account the results <strong>of</strong> the consultation, in particular the outcome <strong>of</strong> the SocialAffairs Council and the Laeken Summit, the Commission is expected to issue a communication todefine its strategy to promote CSR.

27Information society, Globalisation and SustainableDevelopment: Impacts on the Environment 1Franz Josef Radermacher 2 , Pr<strong>of</strong>essor, Forschungsinstitut füranwendungsorientierte Wissensverarbeitung (FAW), GermanyBackgroundThe following document reflects a background in civil society and consulting with governmentsand industry. In particular, it reflects the state <strong>of</strong> debate in the Information Society Forum <strong>of</strong>the <strong>European</strong> Union and its Global Society Dialogue on the issue <strong>of</strong> sustainability and globalgovernance.What is sustainability?Concerning sustainability, the following position is taken. Sustainability would reflect the state <strong>of</strong>human affairs on the globe, in which value creation is done only by using as input the “interest” <strong>of</strong>nature and social systems, but never the “capital” itself. The idea is to preserve or increase capitaland not to use it and only to do value creation under this constraint <strong>of</strong> keeping capital intact withsustainability, that is not to have any growth that essentially consists in burning capital for shorttermcash.Are we sustainable?The answer, is no, we are not sustainable. This world is not on a sustainable track. Europe isalso not on a sustainable track. We do not have today a reasonable framework and correspondingeconomic incentives that would direct our activities into a sustainable direction. Within theglobalisation process, we witness in fact the inverse process. It is no longer possible to buildor keep intact frameworks <strong>of</strong> that nature on a country level or even a continent level. Thereforethe global frameworks are becoming the really important issue for sustainability. The globalframework today has a major anchor the WTO system. However, the WTO system is essentiallya free-trade order regime, it does not reflect social, cultural and ecological aspects at all. For thatreason, as long as we want to stay competitive in Europe, there is no chance for sustainability,neither for us nor the world, because the global economic systems honours a non-sustainablemade <strong>of</strong> operation, not a sustainable one. Whatever we tell in politics the truth is: we are not on asustainable track.1Club <strong>of</strong> Rome/EU Hearing “Towards an EU strategy for sustainable development”, Brussels, 2 May 20012Forschunginstitut für anwendungorientierte Wissensverarbeitung (FAW), Helmholtzstr. 16, D-89081 Ulm, Tel. (+49)0731-501-100,Telefax (+49)0731-501-111, email:radermacher@faw.uniulm.de

28The need for a double strategyGiven the economic pressures <strong>of</strong> competition on a world-market scale and knowing that we arenot sustainable, we need an adequate strategy for Europe. What does not work, is to adopt toglobal pressures, then call this „intelligent modernisation“ and not tell the public that this is notsustainable at all. A better route, which we propose for <strong>European</strong> politics, means to learn fromNATO´s double strategy 20 years ago with the SS20-missiles programme <strong>of</strong> the Soviet Union. Thepoint would be to tell the public that we do wrong, but also explain why, that this failure has todo with global pressures and particular decisions made by the United States. Take for instancethe greencard as an example. We could have a debate about global order systems that wouldchange the picture for the greencard, while we implement a greencard ourselves. The idea wouldbe, that many countries pay investments into education by countries such as India, if they takeeducated people from those countries. We could declare our willingness for global contracts <strong>of</strong> thatnature under the condition that the US also joins, because otherwise we would get problems withcompetition.Do we have a common understanding on this globeon the challenges lying ahead <strong>of</strong> us?Unfortunately, not. Though there might be an agreement that we overstress nature already today.Also, we all know, that it is the richest fifth <strong>of</strong> humankind that creates four fifths <strong>of</strong> all the problemsand pollutions, and that we do that with the cleanest technology available. Still, we do not havea common understanding <strong>of</strong> where the problems are. In particular, the US, as well as technologydrivenpeople all around the globe hope, that with new technologies, with a factor-10 increase inresource productivity, eventually all the problems on the globe might be solved. However, it is aninsightful <strong>European</strong> position that this point <strong>of</strong> view is not correct. The problem here is the so-called”rebound effect“.Historically, we have always seen that good technical solutions for solving a problem usually dothis by creating an even bigger new problem. On the globe today, the main problem is that we arenot sufficiently socially balanced. Europe has been and still is an example <strong>of</strong> what a reasonablesocial system could be. But, on the global level, we have a much higher degree <strong>of</strong> asymmetry thenin Europe. This is true for the US or even more for the globe in total. What we really need are betterframeworks for the world economy. I mean, not only frameworks <strong>of</strong> the economy that deal withantitrust questions and questions <strong>of</strong> ownership rights, but we also need frameworks that deal withsocial, cultural and ecological aspects. Essentially it is those frameworks by which social, culturaland ecological sustainability will be established or not. Frameworks include rules, incentivesand, in particular, co-financing. Certainly the essential issue for sustainability is co-financing,particularly in the social field. This means taxes, money redistribution and so on. One has to takethe money where it comes in fountains and put it where there is only very little to get a sociallybalanced situation. In such a socially balanced situation there is a reasonable chance that worldpopulation pressures may finally be dissolved, and there is also a reasonable chance that we can docontracts for the protection <strong>of</strong> the environment. This is not possible under democratic rule, as longas people are dying in the streets. Because under democratic rule, caring for those people, whichdoes not happen, is even more necessary than protecting animals and trees.

29The <strong>European</strong> Union as an exampleIf we ask which kind <strong>of</strong> solutions are needed on this globe, the <strong>European</strong> Union and its enlargementprocesses are an enlightening example. It is really instructive to contrast this with the situation inNAFTA. In NAFTA, we have a free market but no social dimension via co-financing. In a sense,there is no bridging <strong>of</strong> the gap, therefore there will always remain a border - in social terms.In a deeper sense it means that people in general will not gain. It is a process <strong>of</strong> underminingsocial structures in the US and <strong>of</strong> exploitation and divides in Mexico. Completely different is the<strong>European</strong> picture. Whenever we enlarge in Europe, we understand that the issue is to motivate thenewcoming countries to higher standards. That is an advantage for the old <strong>European</strong> nations in thesense that there is less pressure from what they used to call social dumping. However, seen from thepoint <strong>of</strong> view <strong>of</strong> the newcomers, this kind <strong>of</strong> social dumping is no dumping, it is their opportunityto have a relative advantage in competition in a situation where they have enough disadvantagesanyhow. Therefore, insisting on higher standards is usually a way <strong>of</strong> disowning the weaker partner,except if this is done within a framework <strong>of</strong> co-financing. The <strong>European</strong> enlargement process is acontract between equal partners about the speed <strong>of</strong> convergence <strong>of</strong> standards relative to the degree<strong>of</strong> co-financing. The more co-financing, the higher speed <strong>of</strong> convergence. The less co-financing,the longer the transition periods. In any case, it is this dimension <strong>of</strong> co-financing <strong>of</strong> developmentand the money flow from the richer parts to the not so rich parts that makes Europe a real union andgives this process the quality <strong>of</strong> approaching a <strong>European</strong> citizenship. Certainly, under globalisationconditions that is what is needed in an extended form all around the globe, eventually leading to aworld citizenship with fair rights and duties.Co-fi nancing on a global levelGiven what was said, the critical question for sustainability is the global order system. This isbroadly known to the interested public since the failure <strong>of</strong> the opening <strong>of</strong> the Millennium Round<strong>of</strong> the WTO in Seattle last year. The crucial issue today is how to develop the WTO further. In asense, the WTO is today our best approximation to something like a world economic system. It isthe most important global order we have at present and a major instrument <strong>of</strong> global governance,though not tuned completely right. With its own jurisdiction and financial sanctions, it is also a kind<strong>of</strong> substitute for a global government. The issue now is to make this WTO regime compatible withother regimes that we, in an isolated fashion, have created globally, in particular ILO, UNESCOand the GEA (global environmental agreements) for aspects <strong>of</strong> social fairness, labour rights, childprotection issues and the global environment. In all those cases, today a real compatibility does notexist. Given the WTO power in case <strong>of</strong> conflict, the economic system and that is the free-orderlogic <strong>of</strong> the WTO, usually wins against any social, cultural or ecological concern. We have to makeall these dimensions consistent within one system <strong>of</strong> global governance. We have to do this in aglobal contract. Here, the door opener for consensus, in particular consensus for the convergence<strong>of</strong> standards on a high level, can only be the co-financing scheme. Maybe we need somethinglike 3 percent <strong>of</strong> global gross national product to be redistributed worldwide for a achievingsustainability. Opportunities here would be a Tobin-type tax on global financial transactions ortaxing kerosine <strong>of</strong> plane mobility and channelling this money into global development. Of course,money flow has always to be correlated to the implementation <strong>of</strong> standards.

30Working on three pillarsThe programme described is tough, but it is in the best interest <strong>of</strong> all players involved. Insightfulselfishness if not global ethos should be the driving force. To get there, we need a dense interaction<strong>of</strong> co-regulation between the three major agencies today working in the field <strong>of</strong> global governance.This is, <strong>of</strong> course, the governments with their international agreements, the industry, with itscodes <strong>of</strong> conducts, its accounting and reporting systems etc. and, finally, the world civil society,in particular the non-governmental organisations. These three groups are heavily supported byscience, the legal systems and the juridical systems. Of course, there is a very delicate relationshipalso with consumers, consumers´ behaviour and consumers´ protection. Certainly, all that wassaid has to be seen in a framework <strong>of</strong> subsidiarity, that means issues have to be addressed at therespective stakeholder levels, be they global, continental, national, regional or local.Connection with the Kyoto contractCertainly, the Kyoto contract gives us a case study about the topics at hand. This contract isso important because here we talk about global resources (e.g. the right to create greenhousegases) that are extremely heavily used and exploited by the richest countries <strong>of</strong> the world. Thisexploitation is part <strong>of</strong> our wealth creation processes. We use those resources to such an extentthat we are eating up today future chances <strong>of</strong> progress <strong>of</strong> the poorer countries in development. Weurgently need steps to a solution by which the global increase in greenhouse gases is stopped or atleast regulated. We know that any perspective for reasonable measures is for 2012 the earliest. Atthe moment, we are doing some preparatory steps between the most developed countries.One essential question here is, where we do invest the financial resources we are willing toimplement for solving this problem? There is a tough debate on whether at least 50 percentshould be domestic implementation or not. The US, who is most reluctant in all those issues,insists on global implementation and from an economic point <strong>of</strong> view, they are absolutely right.The <strong>European</strong>s, who are much more prone to the issue, argue differently. They follow a misledethical argument, by which they have to do their homework domestically. For a number <strong>of</strong>reasons that does not make sense. The solution must be a global implementation and any suchglobal implementation has domestic consequences, <strong>of</strong> course. For instance, any global trading <strong>of</strong>permission rights makes it necessary to generate domestically the money for those rights. Thegeneration <strong>of</strong> such a money flow could and should be done via national eco taxes. That gives thepressure on the own society to adapt. And whether then things are done globally or nationallywill be decided by the economic system and questions <strong>of</strong> efficiency, not by politics. Certainly, anysuch eco tax scheme would reasonably be done in a way that forces innovation into a directionby which we get rid <strong>of</strong> the present high level <strong>of</strong> pollution relative to our industrial production(dematerialisation, eco–efficiency increase).

31The Commission paperThe Commission paper on sustainability addresses important issues. However, there is onefundamental problem with the whole paper, and that is the mere <strong>European</strong> approach. There is oneimage that is wrong but that dominates the whole paper: it is the idea that we have to start to bringour own home into order. Unfortunately, in global issues such as sustainability this is <strong>of</strong>ten not avalid strategy. The best example is the problem <strong>of</strong> greenhouse gases. If we bring our things a littlebit in order at home and spend all the money we have available for this purpose so ineffectively, wedo not have the financial instruments anymore available needed for a global solution. It is then ourdomestic solution that prevents the global solution. That is the problem that dominates this wholeCommission paper, and because <strong>of</strong> that it makes no sense to do any minor addition to that paper.This paper has to be rewritten, principally in its basic logic, or at least, it needs a kind <strong>of</strong> preamble,to put things right.In the following I give some ideas on how such a preamble for the EU position on sustainabilitymight look like:I.We, the <strong>European</strong>s, want sustainability, but we confess we are on the wrong track.II.Equity from our point <strong>of</strong> view is essential for reaching sustainability. We urgently need moreequity on the globe to be sustainable. This means the need for co-financing on the globe – thisis not easy.III.Knowing what is needed, we are willing to discuss global co-financing, even thoughco-financing is already difficult within the EU. The EU is willing to go into necessary globalcontracts with all countries, in particular countries such as India, China, Russia, and do thenecessary developments <strong>of</strong> WTO and other regimes into a reasonable order for globalgovernance. This includes debates with other governments, industry and world civil society tothe right kind <strong>of</strong> global contract needed.IV.Concerning the global contract needed, we are willing to support a fair design. We are willingto do this even if it means for some time that we will not have much growth in livingstandard any more at home because new money from growth processes will have to bechannelled essentially into global development. A contract, as we foresee it, has to do withconstraints in global resource use and has to do with global co-financing needs, even if ithurts.V.The <strong>European</strong>s see Europe and in particular the way Europe does its enlargement processesas a model for how global contracts could be designed. Again, a contract-based fairco-financing is the key. The topic <strong>of</strong> the contract development is convergence <strong>of</strong> standardsin relation to co-financing. Certainly, the convergence speed will depend on the level <strong>of</strong>co-financing.

32VI.The EU would not be surprised that in following this model, the greatest conflict could be withthe US. The US is the tip <strong>of</strong> the iceberg. For many reasons, it is the US that pr<strong>of</strong>its most fromthe world economic design we have today, but Europe is also pr<strong>of</strong>iting a lot. Globalco-financing would put the heaviest burden on the US, but <strong>of</strong> course also much on the<strong>European</strong>s. A solution can only be realised in global consensus. In particular, we need the USin such a consensus, so we foreseen a debate among friends about needs for the future.VII.Europe chooses an intelligent double strategy. As long as we have no global governancecontract implemented, we in Europe are willing for the future to follow an intelligent doublestrategy with the following elements: We will always put our position frankly, not usediplomatic language. For instance we will say, that we are not sustainable, that co-financingis needed, and that we are willing to do so as soon as the US and others do it, too. As long aswe do not have the right global frame, we do everything needed to survive economically , evenif it is the wrong thing. But if we have to do the wrong thing, we do it as intelligently aspossible and are willing to engage in reasonable contracts, wherever possible.VIII.The present EU document has to be seen in the context <strong>of</strong> a double strategy. On a preamblelevel we make clear where we really want to go. Within this frame, we look for economicsurvival. For this we choose strategies as they are described in the document.IX.However, the CO 2 topic and other global resources have to be treated differently from thevery beginning. We should, wherever possible, try to choose solutions that include elements <strong>of</strong>global trading. This is one <strong>of</strong> the most important resources possible to reach agreementsbetween North and South, rich and poor, old and young, ill and healthy around the globe. Anintelligent global system design for the essential global resources is the absolute key to anysolution for sustainability.

33Summary from EPRI meeting 1Jouni Backman, Member <strong>of</strong> Parliament, FinlandUp to now the development <strong>of</strong> the information society has been based too much on technology. Ihave called this development processor-led, referring to the development <strong>of</strong> information technology.It is necessary to change our way <strong>of</strong> thinking to make it process-led. Old operating models fromindustrial society must be revised to respond to new needs and challenges and also opportunities.New information technology provides opportunities, but hopefully not just as a tool for oldoperating models.The shift to the information society has already altered many structures. The hierarchic andbureaucratic approach which mainly works only one way, from the top down, is giving way to anetworking model based on interaction. In many fields, especially in the business world, structuresand operating models have already changed decisively. The political decision-making system andpublic administration still operate on the basis <strong>of</strong> the industrial society’s needs and operatingmodels, however.A society based on information and expertise should also be a genuine civil society. Citizens’ roleshould be expanded in many ways. The precondition is the reform <strong>of</strong> the way in which the politicalsystems operates.New technology provides great opportunities to increase the quality and accountability <strong>of</strong> politicsas well as freedom <strong>of</strong> speech and participation. National parliaments play a key role in this work.Parliaments’ role is dual in nature. Through legislation and the use <strong>of</strong> budget funds they shouldcreate the preconditions for the equal development <strong>of</strong> the information society. At the same timethey should develop their own activities in a more open and modern direction.At the Telework Conference in 1998 in Lisbon a group <strong>of</strong> parlamentarians indicated interest inan exchange <strong>of</strong> experiences <strong>of</strong> national parliaments on the ICT in parliamentary work. It was abroader interest: political and social aspects <strong>of</strong> <strong>European</strong> Information Society developments. Afterthis three Conferences have taken place:• The First Conference in the Assemblée Nationale in Paris in March 1999• The Second Conference in the Greek Parliament in Athens in spring 2000• The Third Conference in the House <strong>of</strong> Commons in London in September 2000.1<strong>European</strong> Parliaments Research Initiative on ICT

34On this week delegations <strong>of</strong> 24 <strong>European</strong> parliamentary assemblies from the <strong>European</strong> Unionand the Newly Accessing Countries met in Helsinki and Tallinn. During two days, they discussedthe opportunities and challenges <strong>of</strong> Information Society developments for politics and society,and exchanged experience about the use <strong>of</strong> information and communication technologies inparliamentary workflows.Earlier Conferences were dedicated to issues such as the use <strong>of</strong> ICT to better legislate or bettercommunicate with the citizens, training and education for an Information Society open for all,skills requirements and new employment opportunities in the new economy, or regulatory aspects<strong>of</strong> eCommerce.During the debates the delegates welcomed the many initiatives to take forward the InformationSociety such as the eEurope and eEurope+ Action Plans. The delegates were impressed bythe progress made in accelerating the development <strong>of</strong> the Information Society since 1999 andappreciated the efforts made by the EU and its member states. The potential <strong>of</strong> the new informationand communication technologies is, however, far from being fully explored in the politicalarena. A more effective use <strong>of</strong> the potential is to a considerable degree depending on a quickerdevelopment towards universal access to these technologies. Democratic and educational aspectsare getting more and more important.The concerns <strong>of</strong> the parliamentarians are:• To further strengthen parliamentary democracy• To make greater use <strong>of</strong> electronic networks in <strong>European</strong> Governance and• To fully integrate democratic considerations into the eGovernment debateRepresenting their citizens and controlling the government are the most important tasks forparliamentarians in democracy. Information Society tools open up opportunities to improve theachievement <strong>of</strong> these tasks. Parliamentarians have to take an active and leading role in thetransition to the Information Society and the new information and communication tools shouldbe used to increase the understanding, interest and involvement in parliamentarian activities.A new communication culture between citizens and their representatives is urgently requested.Parliamentarians have to better understand the structural changes the Information Society willbring about, but also need the resources and support <strong>of</strong> Governments to improve the efficiency andtransparency <strong>of</strong> their work.The delegates expressed concern about the low levels <strong>of</strong> participation in all kind <strong>of</strong> political debate,decision-making and elections. It was agreed that information and communication technologies<strong>of</strong>fer useful tools to involve citizens better into political decision-making, to increase interest inpolitics and strengthen representative democracy. A better and more democratic access to internetis crucial. The assembly pointed out that balanced investigations and efforts have to be made withregard to technical, legal, educational and social aspects in order to make secure online votingavailable.A White Paper on <strong>European</strong> Governance has been published recently by the <strong>European</strong> Commission.It proposes improvements to the framework <strong>of</strong> institutions and for their interactions in an interestingway. However, the delegates were very disappointed about the little attention given to networkopportunities.

35It was agreed that online access to the <strong>European</strong> legislative and decision-making processes anddocuments can reduce the information gap, and enable a better involvement <strong>of</strong> the <strong>European</strong>citizens. The <strong>European</strong> Institutions could also demonstrate best practice for other legislatinginstitutions.However, the Commission’s Governance proposals do not take sufficiently into account thenumerous opportunities <strong>of</strong>fered by information technology for co-ordination and co-operationmechanisms among different levels <strong>of</strong> government in Europe and with other organisations.Information Society tools can change the quality <strong>of</strong> political decision-making and communicationand thus revolutionise the public perception <strong>of</strong> governance in the Europe <strong>of</strong> the future. Theparliamentarians participating in the Conference strongly recommended that greater attention isgiven to these opportunities.The delegates suggested that the <strong>European</strong> Commission invites Parliaments throughout Europe tocontribute to a database <strong>of</strong> ICT facilities provided to Parliamentarians and the public. This shouldinclude hardware, s<strong>of</strong>tware and -where appropriate- strategies for maintaining and upgrading thesefacilities.Parliaments should be the forerunners in taking ICT in effective use to support decision-makingprocesses and general use <strong>of</strong> information resources in society. Openness, transparency, userfriendliness,interoperability as well as interactive methods and tools are the guiding principlesin this development. Web-based information delivery systems and web-based interactive workingmethods <strong>of</strong> parliaments, national governments and local authorities play a crucial role in increasingdemocracy.The delegates appreciated the efforts made in the framework <strong>of</strong> eEurope regarding eGovernmentin order to accelerate the deployment <strong>of</strong> efficient online services for the <strong>European</strong> citizensand businesses. However, eGovernment must embrace more than the re-organisation <strong>of</strong> publicadministrations and public service delivery. Government, and therefore also eGovernment, goes farbeyond the delivery <strong>of</strong> public services. Political leaders should therefore see to it that Democracyis not left outside the political and public debate about eGovernment.Parliaments are the very core <strong>of</strong> democratic institutions. That’s why it is very important to havepossibilities to discuss about political and social aspects in Information Society or eSociety. Weneed to find the <strong>European</strong> model for that.Many parliaments are conducting discussions on the opportunities and threats presented by newtechnology. In my opinion it is more important to focus on the opportunities and threats facing ourdemocratic system. The threats have already come true to some extent, weakening the functioning<strong>of</strong> democracy. The opportunities are still waiting to be utilized.

36<strong>European</strong> perspectives on the knowledge society,Session summarySession rapporteur Eero Polus,Labour Market Counsellor, Ministry <strong>of</strong> LabourPr<strong>of</strong>essor Franz Josef Radermacher addressed the issue <strong>of</strong> equity and sustainability from theglobal perspective. Many <strong>of</strong> the visions on global equity and sustainability have hitherto beendiscouraging (e.g. the scenario <strong>of</strong> the Club <strong>of</strong> Rome), but according to Radermacher there is hopethat ICT will give a new impetus to the emerging global social-ecological market economy withdue institutional design. However, the positive developments cannot be taken for granted, because,in an unfavourable case, ICT could deepen the digital division between countries and populationgroups. The social-ecological market economy will provide a framework for the balanced evolution<strong>of</strong> equity and sustainability.Radermacher noted that in the US debate, equity is generally perceived as an absolute concept. Inthe US, equity is paralleled to the ability to fulfil one’s basic needs. In Europe, equity is mostlyseen in relative terms: for example, the poorest should have at least half <strong>of</strong> the average income.The Lorenz Curve and the Gini Coefficient are traditional tools for measuring inequality. On thebasis <strong>of</strong> these tools, Radermacher has developed an approximate social equity measure for eachcountry by using the probability approach. The lower the value <strong>of</strong> the indicator is, the betterthe equity is. Radermacher estimated that the equity value <strong>of</strong> the entire globe is roughly 3.5-4. The corresponding figure for Brazil is 3.60, for the USA 2.14, for Finland 1.63 and Sweden1.50. Radermacher regarded social equity as a source for economic growth. He assessed thatthe equity value band 1.5- 2.3 is most propitious for growth. Highly inequitable societies arenot inherently stimulating growth, because the rich minority cannot create enough employmentthrough its spending to raise the standard <strong>of</strong> living <strong>of</strong> the poor majority.How can the poorer countries catch up? According to Radermacher, strong and sustainableeconomic growth that takes into account global environmental constraints is the prime mover inthe process. For catching up, a close to 10% steady annual growth is needed. Quadrupling earningswithin 20 years and distributing them in a more equitable way is another necessary condition.A sufficient global co-financing is the third important element in the process. Maybe even up to3% <strong>of</strong> the global GDP needs to be redistributed on a worldwide basis. One possible instrumentfor that purpose could be a Tobin-type tax on short-term international capital movements. Globalco-financing will not succeed without consensus and it will set the heaviest burden on the USA.ICT and knowledge-based production are important elements in the catch-up process, becausethey provide effective tools for giving momentum to economic growth without endangeringenvironmental sustainability.

37Pr<strong>of</strong>essor Turkka Keinonen treated in his lecture the user experience with communicationtechnology. The development <strong>of</strong> e-work promises several benefits, but the success dependsessentially on the human-centred development <strong>of</strong> communication solutions. Quite <strong>of</strong>ten thecomplexity <strong>of</strong> procedures cannot be avoided due to technological reasons. Several new wirelesstechnologies and standards (GPRS, WAP, Wireless Village, SynchML etc.) aim at improving theflexible use <strong>of</strong> electronic services. The trend is away from desktop computing towards a noveldimension <strong>of</strong> mobility in working enabled by wireless connections and network services.New technologies <strong>of</strong>fer solutions to many problems regarding the transfer <strong>of</strong> information, butthe major challenge for the design <strong>of</strong> user interfaces seems to be the lowering <strong>of</strong> the threshold<strong>of</strong> wireless complexity. Usability tests have shown that new technologies are mainly difficultto use and they <strong>of</strong>fer an option only to very advanced users. The time required for technologymanagement makes productive work processes inefficient. There are at least two reasons for thethreshold <strong>of</strong> usability: 1) density <strong>of</strong> user interface and 2) <strong>of</strong>f-line configuring.The user interfaces <strong>of</strong> GSM terminals have been designed according to the requirements <strong>of</strong> thelatter half <strong>of</strong> the 1990’s. They are now being packed with new features adding further layers tothe existing ones. Consequently, the user interfaces grow too dense and the overall complexityincreases. Moreover, there also is the level <strong>of</strong> configuring the services for which the manufacturersmay find it difficult to define appropriate system behaviour. A priori <strong>of</strong>f-line settings are typicallymore difficult for the user to manage than real-time control. Services may also be optimised forfacilities or technologies different from the ones the users have. This creates the need to reconfigurethe devices for the connection only to remove the new configuration afterwards to return to normaluse.Various interfaces have different bandwidths <strong>of</strong> communication. The same services need to beaccessible through different interfaces to ensure perfect compatibility and value-adding mobility.Adaptation <strong>of</strong> low user interface bandwidth is one <strong>of</strong> the most crucial challenges that influencethe user acceptance <strong>of</strong> mobile services. The users need efficiency, versatile input facilities, largescreens, fast connections and easy access to services. Adaptation <strong>of</strong> low user interface bandwidthis facilitated by sequential presentation, prioritising the features and structuring the services.Technological development enables flexible ways to distribute work irrespective <strong>of</strong> the location <strong>of</strong>the team members or the nature <strong>of</strong> their tasks. The mobility <strong>of</strong> information, services and devicesis challenging the old task-centred paradigm <strong>of</strong> usability. Holistic user comprehension is a usefulapproach when designing technological solutions for mobile wireless systems. According to theholistic understanding, a teleworker is seen in many roles: 1) an information processing unitaccomplishing tasks, 2) an actor in varying physical and social contexts, 3) a consumer witha lifestyle, 4) an interpreter <strong>of</strong> socially constructed meanings and 5) an object and initiator <strong>of</strong>continuous change.Dr. Timo Kauppinen presented preliminary snapshots <strong>of</strong> the <strong>European</strong> Knowledge SocietyForesight project. The project has three aspects: 1) living conditions, 2) working conditions and 3)industrial relations. The motto <strong>of</strong> the presentation was: We cannot plan the future, but we can planfor the future.

38According to Kauppinen, the industrialised society has three great workers: 1) Henry Noll, hero<strong>of</strong> capitalism, 2) Alexei Stakhanov, hero <strong>of</strong> socialism and 3) Rosabeth Moss Kanter, hero <strong>of</strong> theknowledge society. As the knowledge society is gathering momentum, the image <strong>of</strong> the typicalworker will also undergo changes. The industrial worker will transform first to a transaction citizenand finally to a knowledge citizen.The driving forces for the transition from industrial society towards knowledge society and theimpacts <strong>of</strong> change on the citizens come through living conditions, working conditions and industrialrelations. Knowledge society is not yet a clearly defined concept and Kauppinen put forward threehypotheses featuring it: 1) A knowledge company knows how to do. 2) The knowledge societyknows how to do. 3) The knowledge society works with knowledge by using data and informationas raw material for producing new knowledge in order to know how to do. Kauppinen also listedsome characteristics <strong>of</strong> the knowledge society: 1) The knowledge society is sustained throughnetworks, not single organisations. 2) It supports distributed rather than centralised intelligence. 3)It requires multiple skills and continuous learning. 4) It emphasises sustainability, not subsidization.5) It emphasises the value <strong>of</strong> every human mind. 6) It is enabled by interactive ICTs while it issimultaneously driving the development <strong>of</strong> new ICTs.Kauppinen defined foresight as a family <strong>of</strong> processes intended to capture the dynamics <strong>of</strong>transformation by placing today’s reality within the context <strong>of</strong> tomorrow’s possibilities. It isinherently proactive, reflecting the belief that the future is influenced by today’s decisions andactions. It emphasises the human abilities <strong>of</strong> forethought, creativity and system thinking aboveand beyond the usual analysis and judgement. The major foresight methodologies are: 1) bottomup/ social dialogue/group work, 2) survey technique/Delphi, 3) scenario technique with multiplemethods, 4) concept analysis and 5) top-down/state-driven/commission-driven approaches.The objective <strong>of</strong> the <strong>European</strong> Knowledge Society Foresight project (EKSF) is to produceforesights on the driving forces and impacts <strong>of</strong> the knowledge society in order to identifyand support paths to positive transformation while avoiding paths leading to unsatisfactorydevelopment.The topic <strong>of</strong> Jouni Backman, Member <strong>of</strong> the Finnish Parliament, was the summary <strong>of</strong> the meeting<strong>of</strong> <strong>European</strong> parliamentarians (EPRI), which was held in Helsinki and Tallinn just before theTelework conference. Backman pointed out that up to now, the development <strong>of</strong> the informationsociety has been based too much on technology, and he called it processor-led. According toBackman, it is necessary to change our ways <strong>of</strong> thinking to make it process-led. The old operatingmodels <strong>of</strong> the industrial society must be revised to respond to the new needs and opportunities.The change is already under way, primarily in the private sector. The hierarchic and bureaucraticapproach, which mainly works from the top down, is giving way to a networking model basedon interaction. The political decision-making and public administration still mainly operate on thebasis <strong>of</strong> the old models.Backman stressed that the information society should also be a genuine civil society. Newtechnology provides great opportunities to increase the quality and accountability <strong>of</strong> policies, aswell as freedom <strong>of</strong> speech and participation. National parliaments play a key role in this work.Through legislation and the use <strong>of</strong> budget funds, they should create the preconditions for the equaldevelopment <strong>of</strong> the information society. At the same time, they should develop their own activitiesto a more open and modern direction.

39Delegations from 24 <strong>European</strong> parliamentary assemblies <strong>of</strong> the EU and accessing countriesparticipated in the EPRI meeting. They welcomed the many initiatives in the advancement<strong>of</strong> the information society such as eEurope and eEurope+ Action Plans. The concerns <strong>of</strong> theparliamentarians are: 1) to further strengthen parliamentary democracy, 2) to make greater use <strong>of</strong>electronic networks in <strong>European</strong> Governance and 3) to fully integrate democratic considerationsinto the eGovernment debate.The <strong>European</strong> Commission has recently published the White Paper on <strong>European</strong> Governance.It proposes improvements to the framework <strong>of</strong> institutions and for their interactions. The EPRIdelegateswere disappointed about how little attention was given to network opportunities.The EPRI meeting agreed that online access to the <strong>European</strong> legislative and decision-makingprocesses and documents can reduce the information gap and enable better involvement <strong>of</strong> the<strong>European</strong> citizens. The <strong>European</strong> institutions could also demonstrate best practices for otherlegislative institutions. The delegates suggested that the <strong>European</strong> Commission invite parliamentsthroughout Europe to contribute to a database <strong>of</strong> ICT facilities provided to parliamentarians andthe public.According to Backman, parliaments should be the forerunners in taking ICT into effective use tosupport decision-making processes and general use <strong>of</strong> information resources in the society. Webbasedinformation delivery systems and web-based interactive working methods <strong>of</strong> the parliaments,national governments and local authorities play a crucial role in increasing democracy. Parliamentsare the very core <strong>of</strong> democratic institutions. That is why it is very important to have possibilitiesto discuss political and social aspects in the information society, and a <strong>European</strong> model must befound for this.In his video presentation, Commissioner Erkki Liikanen highlighted the <strong>European</strong> vision on theinformation society. In Lisbon, the <strong>European</strong> Council has set a challenging strategic goal for theEU to become the most competitive and dynamic knowledge–based economy in the world. Thevision is that the goal will be achieved by the next decade. For achieving the goal, a determinedpolicy, structural changes, skilled workforce and economic dynamism are needed.The information society has the potential to bring about significant improvements in the quality <strong>of</strong>life <strong>of</strong> its citizens. They will have flexible access to information and services, because easy-to-usecommunication means will be widely available. The ICT development affects the time andplace <strong>of</strong> work <strong>of</strong>fering new options for working practices. Work and communications can becarried out from anywhere at any time. However, under these circumstances, it is important tomaintain a proper balance between work, family and social responsibilities. The adoption <strong>of</strong> theICT-based innovations increases flexibility and dynamism in the economy giving a strong impetusto economic growth, which in turn will contribute to the creation <strong>of</strong> new job opportunities anda better social cohesion. This is the core pursuit <strong>of</strong> the Lisbon strategy. The network is the newparadigm <strong>of</strong> the information society. The more connections there are in the network, the moreinformation will be available.

40Europe is now a leading actor in many applications <strong>of</strong> mobile communication systems. Thisleading position has been obtained through substantial investments in infrastructure, education,research and development activities. Also liberalisation <strong>of</strong> the telecommunication market hasplayed an important role in this development. The position as the leading actor can be preservedthrough the purposeful pursuit towards a sustainable knowledge-based society, eEurope. In support<strong>of</strong> this pursuit, the <strong>European</strong> Council recently adopted the new <strong>European</strong> strategy for sustainabledevelopment, and the EU’s latest framework programme for research and technology focuses onthemes <strong>of</strong> knowledge-based economy and sustainable development.The emergence <strong>of</strong> the information society also has local and regional aspects. Utilisation <strong>of</strong> the ICTand e-work practices can <strong>of</strong>fer new visions for the alleviation <strong>of</strong> the local and regional disparitiesin the economic development. Ignoring distances and borders, the ICT provides new opportunitiesfor locating production and work in areas where it has not been pr<strong>of</strong>itable before. E-work andteleworking are the mainstream <strong>of</strong> this new type in creating local and regional employment. TheICT will help to relocate knowledge work closer to the available resources and alleviate thepotential skill shortages. Investments in infrastructure, the provision <strong>of</strong> electronic services andthe acquisition <strong>of</strong> education and skills to keep up with the requirements <strong>of</strong> the knowledge-basedeconomy are the basic building blocks <strong>of</strong> this process. Private enterprises are in a key position inthe relocation <strong>of</strong> knowledge work.Gradual progress towards a sustainable knowledge economy is an established feature <strong>of</strong> the EU’spolicy. The new multiyear programme for eEurope has been launched, and in the coming years theEU will also contribute substantially to starting and financing research projects in this field. Theaim <strong>of</strong> the policy is the inclusive and sustainable knowledge-based society. E-work is in the heart<strong>of</strong> <strong>European</strong> thinking.

41ConclusionsMatti Salmenperä, Director, Ministry <strong>of</strong> Labour, FinlandLadies and gentlemen, for three days we have discussed the new ways <strong>of</strong> work and the challengesand opportunities that IT-technologies involved in this process pose to the development <strong>of</strong> workinglife. In this context we have also looked into the issues <strong>of</strong> the local, regional and sustainabledevelopment potential, which through these new ways <strong>of</strong> work only expects to be realised. Becausethe conference has been arranged in Finland, it is therefore quite natural that the perspective hastended to be a <strong>European</strong> one, and has been linked up with the enlargement process <strong>of</strong> the <strong>European</strong>Union, too. Our findings are, however, mostly global in their nature. At the core <strong>of</strong> our discussionor at cross roads <strong>of</strong> the issues addressed is nothing less than the nature <strong>of</strong> work.During the conference it has been pointed out several times that the physical elements <strong>of</strong> work arelosing ground while the knowledge based components are gaining it. At the same time those parts<strong>of</strong> work that in their nature are routine can increasingly be transferred to machines. The picturethat unfolds with these developments tells us that the important elements <strong>of</strong> future work are in thedirection <strong>of</strong> advanced knowledge, qualified technical skills and interactive social capabilities. Thisnaturally means that work will become intellectually more challenging, more unpredictable anddifficult to control. The amount <strong>of</strong> information at hand grows steadily but also in an unorganisedmanner leading to a peculiar phenomenon: information entropy. As information is by definition theresource that keeps entropy from growing we have a contradictory, even chaotic situation at hand.That might explain why some have even resorted to chaos theories to explain what is happeningto work. According to these courageous explanations, unorganised flood <strong>of</strong> information cyclicallyculminates in innovations which - while creating new order - also renew the processes <strong>of</strong> work. Thedevelopment is by no means holistic: Individuals and organisations may drift on to very differentavenues <strong>of</strong> development. This can easily be explained by the massive differences in regional andcompetitive factors.Admittedly, the evolution <strong>of</strong> work, as I have just described, can be an overestimation in parts<strong>of</strong> world and in many jobs. While the pressures <strong>of</strong> globalisation and competition are hard, amultitude <strong>of</strong> buffers also brakes down the development. One major buffer is the persistent universalpoverty and unemployment that efficiently limits the necessary education. The digital divide is afact that will not go away without targeted and effective international and national policies andtheir implementation.

42But even so, on average the developments mean that individuals by and large will have moreindependence and responsibilities at work. The control based on organisation, hierarchies andregulations is being gradually substituted by personal commitment and target orientation. Whilebetter personal command <strong>of</strong> one´s work in many ways is exactly what is expected <strong>of</strong> good work,the coin has another side. As outside control decreases and work becomes free <strong>of</strong> limitations <strong>of</strong>time and place, the possibilities <strong>of</strong> overload will dramatically increase. Surprisingly, working timeslengthen when this freedom extends and the control <strong>of</strong> an employer loses its significance.I have already touched upon the issue <strong>of</strong> polarisation as a dimension <strong>of</strong> individual and regionaldifferences. The research findings seem to indicate that organisations can just as easily drift onto adeprivation path. In fact, only a significant minority <strong>of</strong> enterprises have managed to find workingmethods that keep them qualitatively flexible and markedly innovative. The majority <strong>of</strong> workplaces still stick to traditions and methods that seem to enable only comparatively slow advance.This latter orientation is <strong>of</strong>ten regarded safer for the enterprise and for the employees. At the age<strong>of</strong> information economy, or more rightly innovation economy, one may question this traditionalapproach. Would it not be more likely that the methods <strong>of</strong> proactive enterprise are also likely topromote individual and continuos learning, which in turn is considered to be the best safeguard <strong>of</strong>employees from unemployment. One could also ask, whether in these circumstances there are anyother real possibilities to arrange life long learning but to resort to working life itself. As it is, thispotential is used only in a very limited degree, to say the least.As the responsibilities and empowerment <strong>of</strong> workers necessarily increase in this environment <strong>of</strong>information and innovation economy, one might expect a sad future for managers. Are they neededin the long run? Not really in the most conventional meaning <strong>of</strong> management. It is obvious that thecoaching approach <strong>of</strong> management will be emphasised even further. Less and less directions canbe given to players as how to skate or handle the hockey stick. The managers will more and morebe faced with the need to combine the mystic dimensions <strong>of</strong> leadership to coaching behaviour. Thiswill no doubt mean that managers will need to resort to such new wonders as personal balancesheets and intellectual capital. Such a capital has necessarily human nature which makes it evenmore evasive and difficult to handle than old time hardware and currencies. It is a challengingjob to foster environment where explicit and tacit knowledge steadily promote innovation. This ishardly possible without research and research based development work at work place level.I have stressed innovation as a target <strong>of</strong> knowledge based work. Without steady innovation flowthere is little hope <strong>of</strong> such a competitive edge that will keep customers happy. For a long time it hasbeen evident that the prerequisite <strong>of</strong> innovation in the grand and minute scale is well functioninginteraction and co-operation between the concerned individuals and organisations. That is evenmore emphasised as the knowledge content <strong>of</strong> work As it is we have already become dependenton the net. Manuel Castells talks about being connected. This connection is needed for thetransfer <strong>of</strong> data or information and it is <strong>of</strong> cause kin to much more impressive neurone networkin human brain. In a modest way the technical and social net resembles the miracle <strong>of</strong> the myriad<strong>of</strong> connections in the brain <strong>of</strong> each individual. The e-work, which we have discussed in ourconference, reflects the same model, only in a much more simple and schematic manner. In wellfunctioninge-work the technical net and the social net are firmly linked to each other. This idea <strong>of</strong>being connected is present already in telework, a feature that is demonstrated even more obviouslyby e-work.

43The role <strong>of</strong> technology in this network is to support human thinking activities. It is obvious that wehave more adjusted to the technology rather than the technology to us. Surprisingly little attentionhas been paid to the knowledge that we have <strong>of</strong> human cognitive functions and their weaknessesor strengths. It is rather surprising that we are still faced with s<strong>of</strong>tware that forces us to learn andremember exotic gimmicks instead <strong>of</strong> a more customer friendly arrangement that would reallypromote learning and help us, for instance, see the analogies or controversies in the knowledgebase we are working with at any given time. The connection and communication facilities areclearly the key <strong>of</strong> successful operations. These needs are hardly detectable in ever larger, exoticprogrammes, which mainly eat up the capacity <strong>of</strong> machines and thus make it necessary to renewthem for reasons that have little to do with networking or knowledge work. This is wasteful use <strong>of</strong>resources and overlooks the potential that transparent communications for easy networking modelswould suggest. It is evident, for instance, that for human beings the social contact is an importantpart <strong>of</strong> communication. The technology that would appreciate these needs even in a virtual manneris still in its cradle.During the three days you have hopefully experienced the fruits <strong>of</strong> social contacts within thediscussions we have had. I believe that old contacts have been renewed and new ones established.I am convinced that the participants <strong>of</strong> the Telework 2001 Conference will form a criticalmass, a network <strong>of</strong> people and organizations that are engaged in new ways <strong>of</strong> working.The interest you have shown in the change <strong>of</strong> working life and its development toward abetter quality and productivity is therefore especially encouraging. I am sure that with thispowerhouse we can move forward to working life that will be sustainable as well as a generator <strong>of</strong>good quality jobs.On my own behalf and on behalf <strong>of</strong> the Ministry <strong>of</strong> Labour, I wish to express my thanks tothe University <strong>of</strong> Tampere, The <strong>European</strong> Commission and all the other organisations that havecontributed to the success <strong>of</strong> this conference. A special expression <strong>of</strong> gratitude goes to all thosewho have participated in our common effort with personal presence and good will. I wish you asafe journey home and a nice stay in Finland for those who have chosen that option.

45PLENARY SESSION PRESENTATIONSII Empirical evidence

46e-Work in Europe - Indicators forMeasuring Adaptability <strong>of</strong> Work ArrangementsWerner B. Korte and Karsten Gareis Empirica, Germany1. IntroductionJust over one year ago at Lisbon, the <strong>European</strong> Council set a new strategic goal for the Union:“to become the most competitive and dynamic knowledge-based economy in the world capable <strong>of</strong>sustainable economic growth and more and better jobs and greater social cohesion”. Thereforea decision was taken to “raise the employment rate (in Europe) to 67% for January 2005 and to70% by 2010 [and to] increase the number <strong>of</strong> women in employment to 57% for January 2005 andto more than 60% by 2010”. Moreover, it was decided to “increase the average EU employmentrate among older women and men (55-64) to 50% by 2010”. It is believed that ICT-related newways <strong>of</strong> working (e-Work) and changes in the organisation <strong>of</strong> work can positively contribute to theachievement <strong>of</strong> these objectives. They bear the potential to provide work and job opportunities tothe above target groups by easing a better balancing <strong>of</strong> work and family demands and privatelife in general. It is necessary to develop and more widely deploy such new forms <strong>of</strong> workingto make work attractive and available for women and elderly workers, but also for the existingworkforce in general. It is recognised that in the long term different forms <strong>of</strong> work and employmentcan only be sustainable if they have the potential to support economic growth, social cohesionand environmentally sound development. This belief is behind the concept <strong>of</strong> labour marketadaptability that is central to the <strong>European</strong> Employment Strategy [4]. The diffusion <strong>of</strong> e-Work isbound to play a key role in improving the adaptability <strong>of</strong> EU labour markets.This paper describes the current situation, development and trends <strong>of</strong> teleworking as a precursorto e-Work (used synonymously to ‘new ways <strong>of</strong> working’ or ‘flexible work’) in Europe usingexisting empirical data from different sources. We then elaborate on the different dimensions <strong>of</strong>change in the organisation <strong>of</strong> work, resulting in an e-Work framework that can act as the conceptualfoundation for statistical measurement and benchmarking. This is followed by an attempt toquantify these dimensions <strong>of</strong> change via statistical indicators, using existing data sources, with theaim <strong>of</strong> providing an overview <strong>of</strong> where the EU Member States stand on their way to deployingmore flexible and socially acceptable forms <strong>of</strong> working. An attempt is made to use this data toconstruct a (necessarily preliminary) Adaptability <strong>of</strong> Work Arrangements Index (AWAI) whichmay be seen as a compound e-Work indicator at a higher aggregate level along which to benchmarkdifferent countries.

47The AWAI Index is distinguished from existing labour market flexibility indices (such as theOECD’s Labour Market Flexibility Index) by the inclusion <strong>of</strong> indicators that measure workercentredflexibility (e.g. teleworking, discretion over working times and weekly working hours,company-provided training). This approach ensures that AWAI Index results are capable <strong>of</strong>presenting a picture <strong>of</strong> the EU labour market situation that is in line with the <strong>European</strong> EmploymentPolicy’s emphasis on socially sustainable new ways <strong>of</strong> working in the Information Society.The paper ends with some conclusions and the specification <strong>of</strong> further research requirements.2. Telework as the Precursor <strong>of</strong> e-Work: the Current Situation in EuropeThe history <strong>of</strong> telework dates back to the early 1970s when Jack Schiff in 1972 in the ‘WashingtonPost’ coined this term. It was Jack Nilles, described as the ‘father <strong>of</strong> telecommuting’, whostarted intensive research on this subject in his ‘Telecommunications – Transportation Trade-<strong>of</strong>f’publication in 1976 [17]. In the early 1980s telework started to become a research topic in Europewith the work <strong>of</strong> Huws [13] and empirica [14]. In those days it was true that is was as hard t<strong>of</strong>ind teleworkers as it is to ‘find a pin in a haystack’ and that there were probably more researchersdealing with the subject than actual teleworkers [5]. Even in 1994 only between 0.4% <strong>of</strong> theemployees in Germany and 1.7% in the UK worked as teleworkers from home [15]. Today thishas changed significantly with already 6% <strong>of</strong> the <strong>European</strong> labour force practising some kind <strong>of</strong>telework in 1999 [2]. This sums up to 9 million; we estimate that by now (2001) the figure is up to12 million <strong>European</strong> teleworkers. Most <strong>of</strong> these teleworkers are regular teleworkers as opposed tosupplementary teleworkers (see Figure 1).Figure 1:Regular and supplementary teleworkers as % <strong>of</strong> labour forceSource: empirica ECaTT 1999

48The results from the ECaTT project do not only provide data for home-based teleworking butalso for mobile (tele)working and work performed in Small Office Home Offices (SOHOs).According to these data, almost 3 million home-based teleworkers could be found in the <strong>European</strong>Union in 1999. The vast majority <strong>of</strong> these practice alternating telework, i.e. divide their workingtime between time spent at a workplace in the home and time spent in the central <strong>of</strong>fice. 1.25million employees can be classified as self-employed teleworkers in SOHOs, which constitutes asignificant percentage <strong>of</strong> teleworkers already, and 2.3 million are mobile teleworkers, a form <strong>of</strong>work organisation which is very widespread especially in the Netherlands.Figure 2:Types <strong>of</strong> regular telework as % <strong>of</strong> total labour forceSource: empirica ECaTT 1999As Table 1 shows only a small percentage <strong>of</strong> all teleworkers are working at home permanently.Most spend the larger share <strong>of</strong> their working time at a central <strong>of</strong>fice.

49Table 1Intensity <strong>of</strong> telework in the EU 1Share <strong>of</strong> working time spentteleworking at homein % <strong>of</strong> all homebasedteleworkersabout 1 day 51.3about 2 days 30.3about 3-4 days 4.6Almost 5 days or permanent 6.3n.a. 7.5Source: empirica ECaTT 1999All types <strong>of</strong> telework have in recent years expanded in EU Member States and will continue to doso in the coming years. Different reasons have been responsible for the speed <strong>of</strong> the diffusion, mostimportantly the discovery <strong>of</strong> telework as a cost-cutting measure, the need for increasing employeeproductivity in times <strong>of</strong> scarcity <strong>of</strong> qualified workers, the growing awareness <strong>of</strong> the economiccosts <strong>of</strong> commuting, increasing numbers <strong>of</strong> companies with work-life balance policies, and theavailability <strong>of</strong> remote access and other ICT solutions for cost-effective working at a distance.Table 2:The spread <strong>of</strong> telework in Europe 1999 - 2005 2Home-based teleworkers(in % <strong>of</strong> labour force)1999 (ECaTT)2005(estimate)All teleworkers(in % <strong>of</strong> labour force)1999 (ECaTT)2005(estimate)Denmark 4.5 10.2 10.5 19.4Finland 6.7 16.7 16.8 29.4France 1.2 2.4 2.9 4.8Germany 1.5 4.0 6.0 12.6Ireland 1.0 2.1 4.4 7.7Italy 1.6 4.2 3.6 7.1Netherlands 4.0 9.7 14.5 25.2Spain 1.3 2.7 2.8 5.4Sweden 5.3 11.2 15.2 24.3United Kingdom 2.4 4.3 7.6 11.7EU10 2.0 4.2 6.1 10.8Data source: TELDET 1994; ECaTT 1999 Source: [9]1Figures are weighted averages for the EU102For information on the methodology used for estimating 2005 fi gures, see (9)

50According to our forecasts using demand and supply-side data, we come to the conclusion that inthe year 2005 10.8% <strong>of</strong> <strong>European</strong> employees will practice one form <strong>of</strong> telework or another (seeTable 2). In countries like Finland, the Netherlands and Sweden, between one fourth and one third<strong>of</strong> the labour force will be teleworkers.3. The Dimensions <strong>of</strong> Change <strong>of</strong> Work and New Ways <strong>of</strong> WorkingThe concept <strong>of</strong> work according to the understanding <strong>of</strong> social scientists as well as the generalpublic has changed. This change has occurred along the following dimensions [3]:• Working time: This includes the variables• average working time per day, month, year, etc.;• working time distribution across daytime, week, months, etc.;• working time variability (which might be attuned to the demands <strong>of</strong> business, e.g. shiftwork, or to the preferences <strong>of</strong> workers, e.g. flexitime).• Working place: All types <strong>of</strong> telework are examples for changes that concern the spatial/locational organisation <strong>of</strong> work. Tele-cooperation, where the location <strong>of</strong> work stays more or lessthe same but the spatial organisation <strong>of</strong> teamwork and collaboration is geographically extendedover IT networks, is another example.• Type <strong>of</strong> contract: This refers to the contract that underlays the relationship between worker andthe organisation that utilises the work products, e.g. a contract <strong>of</strong> employment or a contractor/client-relationship that is based on self-employment. Differences in the duration <strong>of</strong> employmentcontracts affect average job tenure. Moreover, the contract defines the extent to whichcompensation is based on the input (working time) or the output (work products) <strong>of</strong> work.• Applied skills (work content): The skills workers apply in the production process define thecontent <strong>of</strong> their work (and vice versa). Work content has been hugely affected by the increasing‘informatisation’ <strong>of</strong> work and changes to the variability <strong>of</strong> work tasks and access to work-relateddecision making. The latter is <strong>of</strong>ten discussed under the headings job enrichment, jobenlargement and worker empowerment. Continuous training, to make workers capable <strong>of</strong> takingover more responsibility, is a key element in this respect.These dimensions are not be understood as being mutually exclusive, as multiple relationshipsexist between them. Due to the complexity <strong>of</strong> flexibility developments on hand, it is also notappropriate to try to draw a clear line between ‘traditional’ and ‘new ways <strong>of</strong> working’. Rather, amore useful approach is to think <strong>of</strong> jobs as being classified along a number <strong>of</strong> spectra/dimensions.There is a widespread consensus among researchers that, although change tends to be gradual bynature, two distinct periods can be differentiated with regard to dominating social concepts <strong>of</strong> workin recent times. The first is the post-WWII period <strong>of</strong> relative stability, the second is the period <strong>of</strong>economic restructuring that began in the first half <strong>of</strong> the 1970s, with an additional push in intensityin the 1980s and 1990s enabled by ICTs. Both periods where accompanied by what we want to calla work paradigm, i.e. a consensus about how work had to be ‘properly’ organised and supported bythe socio-political framework. We call these the ‘post WWII work paradigm’ and the ‘21st century

51work paradigm’. At the core <strong>of</strong> the ‘post WWII work paradigm’ is what is called the ‘regularemployment relationship’, typical elements <strong>of</strong> which are full-time, permanent jobs with a contract<strong>of</strong> employment, even and stable distribution <strong>of</strong> working hours over a fixed number <strong>of</strong> days perweek, and long job tenures.It is important to note that we talk about paradigms here, i.e. models with a strong normativecomponent which do not necessarily reflect reality in an adequate way. ‘Regular employmentrelationships’ have never been as widespread in the decades after WWII as the term implies.Nevertheless, these paradigms are <strong>of</strong> exceptional importance because labour law and the regulation<strong>of</strong> social security standards tend to be based on them.Figure 3:Dimensions along which work is changingSource: [8]

52In general, the transition from the previous to the recent paradigm is characterised by developmentstoward greater flexibility <strong>of</strong> labour deployment. A changing economic environment together withshifts in social attitudes and the widespread application <strong>of</strong> ICTs are believed to have resultedin greater spatial, contractual and temporal flexibility, shifts towards more self-provided socialsecurity provision, the need for multi-tasking and significantly more dynamic (social) skilldevelopments. ICTs are enablers <strong>of</strong> change but they do not predetermine outcomes. They donot e.g. push labour markets towards specific configurations, but open up new possibilities fororganising work. The way ICTs are applied to change the organisation <strong>of</strong> work is to a great extentdependent on the bargaining power <strong>of</strong> employers vis-à-vis workers, and on regulation by the state.New ways <strong>of</strong> working in the information society are for this research defined asthose work forms which divert from the post-WWII work paradigm and/but which are madeeconomically as well as socially feasible by the use <strong>of</strong> ICTs.The latter part <strong>of</strong> the definition acts as the major way to differentiate new ways <strong>of</strong> working againsttraditional atypical work forms such as shift-work and piece-work in manufacturing and selfemploymentin retail, small trade and the primary sector. We believe that all major parameters <strong>of</strong>the change in the organisation <strong>of</strong> work can be captured using this framework.4. Indicators for Measuring AdaptabilityTo measure the dimensions <strong>of</strong> change in work arrangements across countries, it is necessary toidentify suitable indicators and ensure availability <strong>of</strong> data from <strong>of</strong>ficial statistical sources or otherrepresentative surveys. For a first attempt at a Adaptability <strong>of</strong> Work Arrangements Index (AWAI)which is based on the dimensions <strong>of</strong> change <strong>of</strong> work described in the previous section, we havechosen the indicators mentioned in Table 3.

53Table 3:Indicators for measuring adaptability <strong>of</strong> work arrangementsDimension Indicator Definition Year SourceTimeTimeVoluntary parttimeworkingTemporalautonomy in jobVoluntary part-time workers in %<strong>of</strong> total labour force% <strong>of</strong> total labour force withdiscretion over start/fi nish <strong>of</strong>working timePlace Teleworking All teleworkers in % <strong>of</strong> labourforcePlace Tele-cooperation Workers who tele-cooperate as% <strong>of</strong> all workersContractContractAppliedskillsAppliedskillsIncrease in selfemploymentEmploymentprotectionlegislationManagerialresponsibilityLifelong learning<strong>of</strong> employeesIncrease in the share <strong>of</strong>self-employed in % <strong>of</strong> totalemployment 1989-1999Employment ProtectionLegislation Indicator by OECDWorkers with managerialresponsibility in work in % <strong>of</strong>total labour forcePercentage <strong>of</strong> employees, aged30-39, who have participated intraining over the 4 weeks prior tothe survey.1999 Eurostat (LFS)1999 Empirica ECaTT1999 Empirica ECaTT1999 Empirica ECaTT1988/19981998 OECDEurostat (LFS); IAB1999 Empirica ECaTT1999 Eurostat (LFS)We are aware <strong>of</strong> the limitations <strong>of</strong> some <strong>of</strong> these indicators for our purpose (to be discussed inthe following); nonetheless, we have undertaken this effort to demonstrate an approach which mayconstitute a starting point when trying to use as many easily available data from <strong>of</strong>ficial statisticalsources for this purpose. Research projects for developing more appropriate indicators andmethodologies for gathering the associated data are needed. The SIBIS project (IST-2000-26276SIBIS Statistical Indicators Benchmarking the Information Society: www.sibis-eu.org), in whichthe authors are involved, is an attempt by the <strong>European</strong> Commission to cover deficits in this areaand will deliver results in 2002.Part-time working describes the fact that workers can choose between either one or a limitednumber <strong>of</strong> part-time working models (e.g. 19 hours per week). In certain cases employers <strong>of</strong>fergreater flexibility to chose any model preferred as long as business requirements are met. The hoursworked may originate in preferences <strong>of</strong> the worker, the company, or both depending on the overalllabour market situation (e.g. unemployment rates) and business imperatives. The rise in part-timework in many countries appears to be the outcome <strong>of</strong> increases in labour market participation andgrowing lifestyle options, and sometimes a lack <strong>of</strong> full-time employment [8]. Government suchas in the Netherlands have developed a strategy <strong>of</strong> promoting part-time working with the attemptto reduce unemployment rates and <strong>of</strong>fer work opportunities to those not able to work full-time(especially women). High levels <strong>of</strong> part-time work, however, are not necessarily a sign <strong>of</strong> labour

54market adaptablity (in the EC understanding <strong>of</strong> the term) as it can be a sign for the incapability <strong>of</strong>an economy to provide enough full-time jobs. In fact, the majority <strong>of</strong> EU workers consider the level<strong>of</strong> job security to be lower in part-time in comparison to full-time arrangements [10].For this reason, a more accurate indicator <strong>of</strong> working time adaptability is the rate <strong>of</strong> voluntarypart-time work (see Table 4). The <strong>European</strong> Labour Force Survey questionnaire includes questionson the reason for part-time work, which can be used to calculate the share <strong>of</strong> voluntary part-timeworkers in EU countries [6]. The Netherlands are far ahead with 38% <strong>of</strong> the labour being voluntarypart-time workers, followed by the UK, Denmark, Sweden and Germany. On the other extreme wefind countries like Italy and Spain with less than 10% part-time workers, showing that there is aclear north-south divide in this respect in the EU. The self-employment rate has increased in almostall Member States <strong>of</strong> the EU over the last decade.Table 4:Part-time work in Europe 1990 – 1999Part-time workers as% <strong>of</strong> total labour forceShare <strong>of</strong> involuntaryas % <strong>of</strong> all part-timeworkersVoluntary part-timeworkers as % <strong>of</strong>total labour force1990 1999 1999 1999Denmark 23.3 20.7 15.3 17.5Finland 9.5 12.2 37.9 7.6France 11.9 17.2 27.5 12.5Germany 3 15.2 19.0 13.0 16.5Ireland 8.1 16.7 12.7 14.6Italy 4.9 7.9 36.4 5.0Netherlands 31.7 39.4 4.3 37.7Spain 4.9 8.3 25.1 6.2Sweden 23.6 23.8 29.6 16.8United Kingdom 21.7 24.8 10.3 22.2Data: Eurostat Labour Force StatisticsSource: [5],[6]; own calculationsAnother ‘time’ indicator used to describe different levels <strong>of</strong> temporal autonomy in jobs is thepercentage <strong>of</strong> the labour force with discretion over the start/finish <strong>of</strong> their working time. Flexitimemodels, like part-time working, are supported by ICTs through improvements in management andmonitoring technology, and more powerful asynchronous communication media such as e-mailand voice mail. When asking the question as part <strong>of</strong> the representative ECaTT survey, 63% <strong>of</strong> theGerman workers responded positively. Only in Finland with 77% and in Denmark with 64% ahigher percentage was found, while France (49%) and Spain (54%) rank lowest.3 1990 excluding New Länder, 1999 including New Länder

55Table 5:Temporal autonomy in job in Europe 1999Workers with discretion over changes in start/finish <strong>of</strong>their working times, as % <strong>of</strong> labour forceDenmark 63.7Finland 77.2France 48.7Germany 63.1Ireland 57.9Italy 62.8Netherlands 59.9Spain 54.4Sweden 58.0United Kingdom 57.0Data: ECaTT (Base: persons in paid work) Source: empirica ECaTT 1999These distance-bridging properties <strong>of</strong> ICTs increase the ‘spatial flexibility’ <strong>of</strong> companies as well asworkers: Technically it becomes possible to choose locations for work processes more freely. Thelocation <strong>of</strong> work becomes variable in the short term, whereas it was practically fixed in the shortand middle term before. This makes them more adaptable to changes in their environment. Onepractical outcome <strong>of</strong> increased locational flexibility at the micro level is telework which is regardedas a typical example <strong>of</strong> e-Work and one <strong>of</strong> its main precursors. In comparison to other types <strong>of</strong>spatial flexibility, telework is today implemented mostly in a worker-centred way, in particularwith the aim to improve the compatibility <strong>of</strong> work and family life and to keep highly productiveknowledge workers happy.Telework has taken a rapid development in Europe over the past decade. Still, the 1999 figure <strong>of</strong> 9million teleworkers (including supplementary teleworkers) equates to just 6% <strong>of</strong> the labour forcein Europe. The range <strong>of</strong> telework penetration across <strong>European</strong> countries is enormous with Spainfinding itself at the tail end with 2.8% <strong>of</strong> the employees working as teleworkers, and Finland at thetop end with almost 17% teleworkers (see Table 2 on page 2).Tele-cooperation, i.e. ICT-enabled collaboration between workers who are located at differentworking sites, has become the common working mode for an increasing share <strong>of</strong> workers. Telecooperationis sometimes also called ‘in situ telework’, because, although workers appear tobe co-located in central <strong>of</strong>fice buildings, in fact they are <strong>of</strong>ten working closely together withproject partners at far away locations, while work-related interaction with next-door colleagues iscomparatively low. Evidence suggests that tele-cooperation has boosted worker productivity andinnovative performance throughout the EU economy by allowing flexible configurations <strong>of</strong> humancapital without actually moving people from one place to the other [18].

56Tele-cooperation is already widely spread in Europe (see Table 6) with an average <strong>of</strong> almost 30%<strong>of</strong> EU workers practising it. In Finland around 50% and in the Netherlands and the UK and morethan 40% <strong>of</strong> workers tele-cooperate at least occasionally 4 . Again we can observe a north-southdivide in Europe with Spain (24%), France (27%) and Italy (27%) at the tail end. The data derivesfrom the General Population Survey (GPS) carried out as part <strong>of</strong> the ECaTT project in 1999 in 10EU countries.Table 6:Tele-cooperation in Europe 1999Workers who tele-cooperate as % <strong>of</strong> all workersregularly (in %) occasionally (in %) never (in %)Denmark 26.0 5.9 68.1Finland 43.4 6.9 49.7France 21.7 4.8 73.5Germany 26.8 5.3 67.9Ireland 32.1 5.4 62.5Italy 17.6 9.8 72.6Netherlands 29.9 15.5 54.6Spain 19.7 4.2 76.1Sweden 29.9 7.9 62.2United Kingdom 37.5 5.2 57.3Data: ECaTT 1999 (Base: persons in paid work ) Source: empirica ECaTT 1999Decreases in transaction costs such as those caused by ICTs are expected to result in theincreasing importance <strong>of</strong> self-employment vis-à-vis dependent employment. Outsourcing <strong>of</strong>activities formerly done by own staff to independent contractors and freelancers is one <strong>of</strong> themechanisms through which this change process may be enacted. Many believe that growingnumbers <strong>of</strong> self-employed workers indicate a more flexible labour force as self-employed workersare faster in adapting to changes in the demand on the labour market in comparison to employeesin permanent work contracts. The self-employment rate alone, however, is not a suitable variableto measure the flexibility <strong>of</strong> a labour force because in country comparisons the self-employmentrate tends to correlate positively, in particular, with the share <strong>of</strong> the workforce in the primary sector.For this reason, countries <strong>of</strong> the developing world show much higher rates <strong>of</strong> self-employment thanadvanced capitalist countries, and today’s EU Member States experienced falling numbers <strong>of</strong> theself-employed for the greater part <strong>of</strong> 20th century.In recent years, however, there has been a reversal <strong>of</strong> the overall trend <strong>of</strong> falling self-employmentrates in most EU countries (if the primary sector is excluded 5 ). This development is attributed toa number <strong>of</strong> new possibilities for self-employed businesses which have opened up throughout theeconomy, many <strong>of</strong> which are related to the use <strong>of</strong> ICTs:4 The defi nitions used are as follows: Occasional tele-cooperation: Workers who collaborate with others not located on thesame site (either externals or same-company workers located in other establishments) at all, using email, video-conferencing,the transfer <strong>of</strong> computer fi les or share joint databases (e.g. Intranet); Regular tele-cooperation: Workers who use e-mail forcollaboration with others not located on the same site daily, or use video-conferencing or fi le sharing at least once a week.5 Agriculture has a large infl uence on national self-employment rates because it contains a high share <strong>of</strong> all self-employed in everycountry, and is shrinking fast.

57• the increase in corporate outsourcing, i.e. the transfer <strong>of</strong> activities formerly kept in-house to thefree market;• a surge in innovative business models for small companies, based on ICTs (just as the Internet)and• falling barriers <strong>of</strong> entry in sectors that have traditionally been protected by requirements formajor capital investments and by heavy regulation by the state, again attributed in part to theapplication <strong>of</strong> ICTs.Flexible working is, in particular, associated with own-account self-employment, i.e. self-employedworkers who have no employees. This group is roughly identical with the group <strong>of</strong> workers knownas freelancers. The share <strong>of</strong> own-account self-employed among all self-employed has been risingsteadily in the last decades.Table 7:Self-employment in Europe 1988 – 1998self-employed as % <strong>of</strong>total labour forcefreelancers (self-employed withoutemployees, excluding farming) as % <strong>of</strong>total labour force1988 1998 1988 1998 Delta 1988/98Denmark 11.0 9.7 2.5 3.1 +0.6Finland 14.1* 14.0 4.8** 5.6 +0.8France 16.2 12.5 4.6 4.2 -0.4Germany (West) 11.5 11.5 3.1 4.5 +1.4Ireland 25.3 20.2 6.7 6.9 +0.2Italy 29.5 28.7 8.9** 10.2 +1.3Netherlands 12.1 11.6 4.9 5.5 +0.6Spain 29.1 23.0 12.6 11.3 -1.3Sweden 9.3* 10.9 3.9** 5.4 +1.5United Kingdom 12.7 12.5 7.8 8.4 +0.6Data: Eurostat Labour Force Statistics; IABSource: [11]; own calculations*) 1990 data **) estimates for 1990 (see Footnote 6)With some degree <strong>of</strong> simplification we can, therefore, assume that the increase in self-employedfreelancers (outside farming) is a suitable indicator for our purpose, as many <strong>of</strong> the new selfemploymentcan be attributed to the knowledge economy with a much larger exposure to new ICTbasedworking methods.

58As Table 7 shows, overall self-employment rates are rather high in countries such as Italy, Spainand Ireland and low for instance in Denmark, Sweden and Germany. This also applies for theshare <strong>of</strong> freelancers (self-employed without employees; excluding farming). The development inthe last decade shows great variation, with Sweden (+1.5%), Germany (+1.4%), Finland (+0.8%),Denmark and the UK (both +0.6%) leading the field. Spain (-1.3%) and France (-0.4%), on theother hand, have decreasing shares <strong>of</strong> freelancers 6 .As an indicator for the stringency <strong>of</strong> labour markets with regard to the ‘contract’ dimension <strong>of</strong>work arrangements, we used the Employment Protection Legislation Indicator developed by theOECD [16]. This indicator was developed to be able to compare the effect <strong>of</strong> regulatory labourmarket regimes between countries. Main ingredients are subindicators measuring [15: 41]• procedural requirements (refers to the process that has to be followed from the decision to lay<strong>of</strong>f a worker to the actual termination <strong>of</strong> the contract)• notice and severance pay (refers to three tenure periods beyond any trial period, dismissed ongrounds <strong>of</strong> poor performance or individual dismissal, without fault. The tenure periods are: ninemonths; four years; and 20 years)• prevailing standards <strong>of</strong> and penalties for ‘unfair’ dismissals (includes the conditions that identifyan unfair dismissal)• ‘objective’ reasons under which a fixed-term contract could be <strong>of</strong>fered;• the maximum number <strong>of</strong> successive renewals <strong>of</strong> fixed-term contracts;• the maximum cumulated duration <strong>of</strong> a fixed-term contract.Table 8:Employment protection legislation: OECD Indicator for 19981998 7Denmark 1.5Finland 2.1France 3.1Germany 2.8Ireland 1.0Italy 3.3Netherlands 2.4Spain 3.2Sweden 2.4United Kingdom 0.5Data: OECD Source: [16]6 1990 fi gures for freelancers in Finland, Italy and Sweden are not available from this source. For this reason,estimates were used. For this we assumed that the development in time <strong>of</strong> the ratio <strong>of</strong> freelancers to overallself-employed in these countries was the same as in the average <strong>of</strong> the 11 EU countries for witch data isavailable. Testing this assumption for the countries for witch 1988 data is available showed a very high degree<strong>of</strong> congormity.7 The index value can be between 0 and 6.

CIGARETTE SMOKING AND CARDIOVASCULAR DISEASESAmerican Heart Association Scientific Positionhttp://www.americanheart.org/presenter.jhtml?identifier=4545Cigarette smoking is the most important preventable cause <strong>of</strong> premature death in the United States. It accountsfor more than 440,000 <strong>of</strong> the more than 2.4 million annual deaths. Cigarette smokers have a higher risk <strong>of</strong>developing several chronic disorders. These include fatty buildups in arteries, several types <strong>of</strong> cancer andchronic obstructive pulmonary disease (lung problems). Atherosclerosis (buildup <strong>of</strong> fatty substances in thearteries) is a chief contributor to the high number <strong>of</strong> deaths from smoking. Many studies detail the evidencethat cigarette smoking is a major cause <strong>of</strong> coronary heart disease, which leads to heart attack.How does smoking affect coronary heart disease risk?Cigarette and tobacco smoke, high blood cholesterol, high blood pressure, physical inactivity, obesity anddiabetes are the six major independent risk factors for coronary heart disease that you can modify orcontrol. Cigarette smoking is so widespread and significant as a risk factor that the Surgeon General hascalled it "the leading preventable cause <strong>of</strong> disease and deaths in the United States."Cigarette smoking increases the risk <strong>of</strong> coronary heart disease by itself. When it acts with other factors, itgreatly increases risk. Smoking increases blood pressure, decreases exercise tolerance and increases thetendency for blood to clot. Smoking also increases the risk <strong>of</strong> recurrent coronary heart disease after bypasssurgery.Cigarette smoking is the most important risk factor for young men and women. It produces a greater relativerisk in persons under age 50 than in those over 50.Women who smoke and use oral contraceptives greatly increase their risk <strong>of</strong> coronary heart disease andstroke compared with nonsmoking women who use oral contraceptives.Smoking decreases HDL (good) cholesterol. Cigarette smoking combined with a family history <strong>of</strong> heartdisease also seems to greatly increase the risk.What about cigarette smoking and stroke and peripheral arterial disease?Studies show that cigarette smoking is an important risk factor for stroke. Inhaling cigarette smoke producesseveral effects that damage the cerebrovascular system. Women who take oral contraceptives and smokeincrease their risk <strong>of</strong> stroke many times. Smoking also creates a higher risk for peripheral arterial disease andaortic aneurysm.What about cigar and pipe smoking?People who smoke cigars or pipes seem to have a higher risk <strong>of</strong> death from coronary heart disease (andpossibly stroke), but their risk isn't as great as that <strong>of</strong> cigarette smokers. This is probably because they're lesslikely to inhale the smoke. Currently there's very little scientific information on cigar and pipe smoking andcardiovascular disease, especially among young men, who represent the vast majority <strong>of</strong> cigar users.What about passive or secondhand smoke?The link between secondhand smoke (also called environmental tobacco smoke) and disease is well known,and the connection to cardiovascular-related disability and death is also clear. About 22,700 to69,600 premature deaths from heart and blood vessel disease are caused by other people's smoke eachyear.Worksite Wellness Program Page 58October 2011

60the traditional view <strong>of</strong> a succession <strong>of</strong> periods devoted to training (in the early stages <strong>of</strong> life) andgainful work (after a certain level <strong>of</strong> know-how acquired in the training period has been verified).Today, many employers feel the need to provide continuous training to their staff to ensure that thesupply <strong>of</strong> skills stays in line with the requirements <strong>of</strong> the production process. Company-providedtraining, therefore, underlays the flexibility strategies <strong>of</strong>, in particular, companies in the knowledgeeconomy. From the viewpoint <strong>of</strong> workers, lifelong learning boosts employability and thereforeprovides flexibility <strong>of</strong> choice on the labour market.Available data on lifelong learning measures is scarce. For our purpose, the most adequate indicatoris the share <strong>of</strong> employees <strong>of</strong> a certain age group who have taken part in job-related (mostlycompany-provided) training recently, for which data is provided by the <strong>European</strong> Labour ForceSurvey. Unemployed individuals taking part in state-provided training schemes are not included inthis data. Table 10 shows that differences between EU countries are striking: Whereas in the Nordiccountries, roughly one in four employees aged 30 to 39 participates in job-related training in everygiven month, in France only one in 20 workers benefits from such activities.Table 10:‘Lifelong learning <strong>of</strong> employees’ in Europe 1999Percentage <strong>of</strong> employees who participated intraining in the last 4 weeks (in %)age-group 30-39 age-group 50-59Denmark 22 16Finland 23 19France 2 1Germany 6 2Ireland 9 4Italy 6 4Netherlands 18 6Spain 5 1Sweden 26 21United Kingdom 24 17Data: Eurostat Labour Force Statistics Source: [6]5. Adaptability <strong>of</strong> Work Arrangements Index (AWAI)Based on results from the ECaTT project on ‘temporal autonomy in job’, ‘teleworking’, ‘telecooperation’and ‘managerial responsibility’, enhanced by data from <strong>of</strong>ficial statistics on voluntarypart-time working, increase in freelancing and the Employment Protection Legislation Indicatordeveloped by the OECD, we have developed a first approach towards the development <strong>of</strong> aAdaptability <strong>of</strong> Work Arrangements Index to be used to measure ‘flexibility in work’, i.e. thepreparedness <strong>of</strong> the different EU Member States for the future developments towards new ways <strong>of</strong>work organisation. The AWAI Index spans the dimensions described in chapter 2.

615.1 MethodologyThe statistical data mentioned in the previous section were used in such a way that we calculateda ranking <strong>of</strong> countries along each indicator. For the benefit <strong>of</strong> comparability we have convertedoriginal indicator values into standardised values with the country showing the highest value beingassigned the benchmark value <strong>of</strong> 100 (see Table 4). Each country was ranked according to itspeformance in each indicator. These ranks were added up and divided by the number <strong>of</strong> indicators,resulting in the AWAI Index values. In this first approach, single indicators were not weighted.The country coverage was restricted to the 10 EC Member States for which data along all indicatorscould be made available (Denmark, Finland, France, Germany, Ireland, Italy, Netherlands, Spain,Sweden, United Kingdom). For one indicator we had to use estimates to compensate for missingdata in three countries (see footnote 9).This approach, while being very tentative, has the advantage <strong>of</strong> being based on rather easilyavailable data. Results can necessarily only be preliminary, but the AWAI Index seems to be thebest available compound measure on the development <strong>of</strong> new ways <strong>of</strong> working yet.5.2 ResultsThe results <strong>of</strong> the above exercise are summarised in the following overview (see Figure 4 and Table4). The higher the AWAI value, the higher the adaptability <strong>of</strong> work arrangements in the respectivenational labour markets.The group <strong>of</strong> countries with the highest index values, i.e. the highest levels <strong>of</strong> adaptability (theUnited Kingdom, Sweden and Finland) is made up <strong>of</strong> the ‘fast movers’, countries with highlyflexible and dynamic labour markets and labour forces. The second group (Denmark and theNetherlands, and also Germany and Ireland) can be described as ‘circumspect followers’, a middlegroup <strong>of</strong> countries which attempt at combining (positive) aspects from the past with adaptation tothe future, while the third group (Italy, France and Spain) may be called the ‘sedentaries’, i.e. theslow movers which are running the danger to miss the connection to developments in the rest <strong>of</strong> theEU Member States and to be overtaken by other countries, e.g. from Asia, which are developingvery rapidly.

62Figure 4:Adaptability <strong>of</strong> Work Arrangements Index (AWAI)Table 11:AWAI calculation resultsDimension * TIME PLACE CONTRACTAPPLIEDSKILLSIndicatorVoluntary parttimeworkingTemporalautonomy in jobTeleworkingTele-CooperationEmploymentProtection inLegislationSelf-employedManagerialResponsibilityLifelong learning<strong>of</strong> employeesAWAI Index 8Overall rankSweden 44 75 90 75 65 100 79 100 6.63 1United Kingdom 59 74 45 85 100 69 100 92 6.63 1Finland 20 100 100 100 71 76 70 88 6.25 3Denmark 46 82 63 63 82 69 77 85 5.75 4Netherlands 100 77 86 90 65 69 76 69 5.75 4Germany 44 82 36 64 58 97 86 23 5.13 6Ireland 39 75 26 75 91 55 93 35 4.63 7Italy 13 81 21 54 49 93 63 23 2.63 8France 33 63 17 53 53 35 76 8 1.38 9Spain 16 70 17 48 51 3 60 19 0.50 108 inverse average rank <strong>of</strong> 8 benchmarked variables

63Table 12: AWAI: analysis resultsIn the following table the key results from the analysis are summarised. For each country adistinction is made between those dimensions and indicators with high ratings (those where highlevels <strong>of</strong> adaptability can be observed) and those with low ratings (areas with low adaptability).SwedenUnited KingdomFinlandDenmarkNetherlandsGermanyIrelandItalyhigh low Comments‘Contract’ and‘applied skills’indicators‘Place’, ‘appliedskills’ indicators,temporalautonomy‘Contract’ and‘skills’ indicators‘Time’ and‘place’ indicatorsTelecooperationSelfemployment,temporalautonomy,managerialresponsibilityTemporalautonomy, telecooperation,EPL, managerialresponsibilityTemporalautonomy, selfemploymentEPLHighest AWAI ranking with more stringentemployment protection legislation than the UKand the other Nordic countries. Benchmark inincrease in share <strong>of</strong> freelancers 9 and job-relatedlife-long learning.-- Highest AWAI ranking in Europe at the expense<strong>of</strong> social security protection and work contractstability. Benchmark in share <strong>of</strong> workforce withmanagerial responsibility.Highly adaptable labour market.Part-time work‘Place’ and‘applied skills’indicators, selfemployment‘Contract’indicators‘Place’indicators,EPLTelework,lifelonglearning‘Place’ and‘applied skills’indicators,part-timeworking, EPLFrance -- ‘Place’,‘contract’ and‘applied skills’indicatorsMedium level <strong>of</strong> employment protectionlegislation. Benchmark in temporal autonomy injob, teleworking and tele-cooperation.Good combination <strong>of</strong> ‘old’ values and ‘new’flexibility, but very low ranking on voluntarypart-time working (despite above EU averagefemale employment rate) and below-averagemanagerial responsibility in work. This mayindicate untapped resources for even higherAWAI value.Medium to low level <strong>of</strong> employment protectionlegislation. Good combination <strong>of</strong> ‘old’ values and‘new’ fl exibility.<strong>European</strong> champion in part-time working. Highon teleworking and tele-cooperation. Onlymidfield on applied skills.Good combination <strong>of</strong> ‘old’ values and ‘new’flexibility.Rather stringent employment protectionlegislation. Some catching up on teleworkingand lifelong learning needed. High growth ratesin freelancing.Promising combination <strong>of</strong> ‘old’ values and ‘new’flexibility.Non-stringent employment protection legislation(EPL); catching up on teleworking and lifelonglearning necessary.Medium adaptability <strong>of</strong> work arrangements.Very bad performance in voluntary parttimework. Little overall adaptability <strong>of</strong> workarrangements.Very bad performance in lifelong learning andteleworking. Little overall adaptability <strong>of</strong> workarrangements.Spain -- all Very bad performance in freelancing growth.Very little overall adaptability <strong>of</strong> workarrangements.9 But note footnote 6.

646. Summary and ConclusionsThe present paper has described dimensions along which work is changing and has presented a firstapproach for defining indicators for different dimensions <strong>of</strong> and an overall index on adaptability<strong>of</strong> work arrangements called AWAI. We outlined a simple methodology for measuring these on thebasis <strong>of</strong> available statistical data from <strong>of</strong>ficial statistical sources and representative surveys. Theaim was to make use <strong>of</strong> rather easily available existing data for constructing the index.The analysis <strong>of</strong> the results show that the <strong>European</strong> countries can be divided into three distinctgroups with respect to Adaptability <strong>of</strong> Work Arrangements:Fast Movers Highly adaptable, dynamic labour markets S, UK, FINCircumspectFollowersSedentariesSolid middle group which attempt to combine(positive) aspects from the past and futureSlow movers, running the danger to loose contact todevelopments in the rest <strong>of</strong> the <strong>European</strong> UnionDK, NLD, IRLI, F, ECare should be taken before interpreting in a way that those countries in the ‘fast movers’ groupare performing ‘better’ than the other EU Member States. Although boasting a very dynamicand highly flexible labour market, these countries need to watch out to prevent high levels <strong>of</strong>adaptability in work arrangements being achieved at the expense <strong>of</strong> social sustainability. There isa danger that an increase in flexibility on the labour market will result in greater inequality andsocial disparities between different segments <strong>of</strong> the population which may cause high follow-upcosts. There are first signs already for such developments in the UK which shows the weakest level<strong>of</strong> employment protection legislation. Such undesirable situations become less visible at times <strong>of</strong>high economic growth where almost everybody benefits (e.g. in present-day Ireland). In times <strong>of</strong>stagnation (which are bound to return sooner or later), however, the social costs are bound to befelt by large parts <strong>of</strong> the population. The AWAI Index does not yet allow statements about thesustainability <strong>of</strong> flexibility in work arrangements.Those countries in the middle group can be characterised as those trying to achieve a societalconsensus on the issues at stake, combining positive aspects concerning labour (market) stabilityand flexibility from the past and the future, a development which takes time but hopefully ends inhighly sustainable (new) work models and relationships. Denmark and the Netherlands are moreadvanced in this respect because they have been successful in their attempts at reaching a socialconsensus about how to overhaul the traditional regulatory regime. Germany and Ireland, on theother hand, still have to come to terms with the question <strong>of</strong> how to bring in line the need for socialsustainability with labour market modernisation.The so called ‘sedentaries’ run the danger <strong>of</strong> missing the connection to developments taking placein the rest <strong>of</strong> Europe. Should the trends continue as today, in particular with regard to thesecountries’ inability to achieve necessary levels <strong>of</strong> labour market adaptability, they will experiencea situation where flexibility will be imposed on them from outside by means <strong>of</strong> global competition,resulting in negative consequences for their economies and labour markets.These results are preliminary. The analysis is hampered by problems <strong>of</strong> availability <strong>of</strong> data forindicators that adequately measure the dimensions <strong>of</strong> labour market adaptability as outlined in the<strong>European</strong> Commission’s Employment Strategy [4]. There is a need for more expressive indicators,

65for instance, on the ‘contract’ dimension. To take one example, ‘increase in own-account selfemployment’is a problematic indicator since it can be a result <strong>of</strong> different developments andmotivations in different countries. In economically and structurally depressed countries it may bethe result <strong>of</strong> an attempt <strong>of</strong> unemployed to get back into work while in countries with high economicgrowth self-employment occurs out <strong>of</strong> a motivation <strong>of</strong> highly skilled employees to start their ownbusiness. There is also a need for an indicator that describes the current demand for specific skillsin the labour market and whether and to what extend these are supplied by the labour force, i.e. anindicator measuring the match <strong>of</strong> demand and supply <strong>of</strong> skills.These are just examples <strong>of</strong> the shortcomings resulting from data inavailability which need tobe overcome. The <strong>European</strong> Commission has started projects like SIBIS – Statistical IndicatorsBenchmarking the Information Society” - (IST-2000-26276) (www.sibis-eu.org) which has takenup the challenge <strong>of</strong> contributing to the effort by developing and testing an appropriate set <strong>of</strong> newstatistical indicators. The SIBIS ‘eEurope Indicators’ are to take account <strong>of</strong> the rapidly changingnature <strong>of</strong> modern societies and to enable the benchmarking <strong>of</strong> progress both in individual <strong>European</strong>Member States as well as <strong>of</strong> Europe as a whole. It is hoped that the results <strong>of</strong> such projects willenable us to further improve the approach and methodology presented in the present paper and givea more appropriate and differentiated view on the current situation and development <strong>of</strong> e-Work in<strong>European</strong> countries and a solid basis for an assessment <strong>of</strong> these to better inform policy decisionmakers.Notes[1] empirica (2000) ‘Telework Data Report (Population Survey) – Ten Countries in Comparison’,Project Report, URL: http://www.ecatt.com/ecatt/[2] empirica (2000) Benchmarking Telework and E-Commerce in Europe - ECaTT Final Report, Bruxelles.[3] empirica (2001) ‘Definition <strong>of</strong> Approach to Topic Research: Work, Employment and Skills’, SIBIS projectdocument, unpublished.[4] <strong>European</strong> Commission (1999) ‘The <strong>European</strong> Employment Strategy: Investing in People’, Luxembourg.[5] <strong>European</strong> Commission (2001) Employment in Europe 2000, Luxembourg.[6] Eurostat (2000) <strong>European</strong> Social Statistics – Labour Force Survey Results 1999. Luxembourg.[7] Eurostat and <strong>European</strong> Commission (2000) Living Conditions in Europe – Statistical Pocketbook.Luxembourg.[8] Gareis, K. (2001) ‘The Electronic Freelancing Economy: Myth or Reality? An Overview <strong>of</strong>Evidence’, STAR Issue Report No. 9, www.databank.it/star.[9] Gareis, K. and Kordey, N. (2000) ‘The Spread <strong>of</strong> Telework in 2005’, in Stanford-Smith, B.and Kidd, P.T. (eds.) E-business – Key Issues, Applications, Technologies, 83-90, Amsterdam et al.[10] Gasparini, G. et al. (2000) ‘Full-time or Part-time Work: Realities and Options’, <strong>European</strong>Foundation for the Improvement <strong>of</strong> Living and Working Conditions, Luxembourg.[11] H<strong>of</strong>fmann, E. and Walwei, U. (2000a) ‘Strukturwandel der Erwerbsarbeit – Was ist eigentlich‘normal’?’ IAB Kurzbericht, No.14, Nürnberg.[12] Huber, J. (1987) Telearbeit. Ein Zukunftsbild als Politikum, Opladen.[13] Huws, U. (1984) The New Homeworkers. New Technology and the Changing Location <strong>of</strong> White-collarWork, London.[14] Huws, U., Korte, W.B. and Robinson, S. (1990) Telework – Towards then Elusive Offi ce, Chichester.[15] Korte, W.B. and Wynne, R. (1996) Telework – Penetration, Potential and Practice in Europe,Amsterdam et al.[16] Nicoletti, G., Scarpetta, S. and Boylaud, O. (2000) ‘Summary Indicators <strong>of</strong> Product Market Regulation withan Extension to Employment Protection Legislation’, Contribution to Workshop on ‘Concepts andMeasurement <strong>of</strong> Labour Markets Flexibility/Adaptability Indicators’, Brussels, 26-27 October 2000.[17] Nilles, J. et al. (1976) The Telecommunications-transportation Trade<strong>of</strong>f. Options for Tomorrow, New York.[18] Reichwald, R., Möslein, K., Sachenbacher, H., Englberger, H. and Oldenburg, S. (1998) Telekooperation.Verteilte Arbeits- und Organisationsformen, Berlin et al.: Springer.

66Virtual work in a real worldUrsula Huws, Director, Analytica, UKIntroduction: some myths about The Future <strong>of</strong> WorkBefore making any general predictions about the future <strong>of</strong> work it is necessary to examine criticallysome <strong>of</strong> the mythology which has grown up around the subject.’a virtual world’ and a ’weightless economy’Much current discourse about the ’information society’, ’knowledge-based economy’ or ’weightlesseconomy’ seem to assume that, as inter-linked computers enter more and more areas <strong>of</strong> ourlives, all activities will become delocalised, all products will become knowledge-intensive andweightless, and all relationships telemediated or ’virtual’. This view is put forward inter alia byDanny Quah 1 , who argues that we are entering an era in which increasing proportions <strong>of</strong> addedvalue are created by inputs <strong>of</strong> ’knowledge’ which, because it is inappropriable, does not obeythe same economic laws as consumable items, such as raw materials. Quah’s argument that thenew economy is ’weightless’ has been taken up and popularised by authors like Diana Coyle 2and Charles Leadbetter 3 and others 4 . As I have written elsewhere 5 , this discourse, whilst clearlyserving an important ideological function, does not correspond very closely with the picturerevealed by empirical analysis. In fact, the evidence points overwhelmingly to a global trendwhich consists predominantly not <strong>of</strong> dematerialisation (or ’immaterialisation’) but materialisation(or ’rematerialisation’); more precisely an acceleration <strong>of</strong> commodification. During the periodwhich has supposedly seen the rise <strong>of</strong> a ‘new digital economy’, the world has never seen so muchconsumption <strong>of</strong> raw materials, so much material production <strong>of</strong> physical goods and services, somuch energy spent in transporting them from one spot to another on the earth’s surface, and sucha vast production <strong>of</strong> - all-too-material - waste.’the death <strong>of</strong> distance’ or ’end <strong>of</strong> geography’Closely related to the myth <strong>of</strong> the ’weightless economy’ is that <strong>of</strong> the ’the end <strong>of</strong> geography’ 6 or the’death <strong>of</strong> distance’ 7 to use the titles <strong>of</strong> publications by Richard O’Brien and Frances Cairncross. Ifall economic activity is ’weightless’ then it follows that it can be carried out anywhere. Howeverthe evidence that dematerialisation is outweighed by materialisation also contradicts the notion that1 Quah, D.T., ’Increasingly Weightless Economies’ in Bank <strong>of</strong> England Quarterly Bulletin, February, 1997, p 49 and ’Policies forthe Weightless Economy’, Lecture to the Social Market Foundation, London, April 21, 19982 Coyle, D., Weightless World: Strategies for Managing the Digital Economy, Capstone Publishing, Oxford, 19973 Leadbeater, C. Living on Thin Air, Penguin, Harmondsworth, 20004 see for instance, Don Tapscott (ed) Blueprint to the Digital Economy: Wealth Creation in the Era <strong>of</strong> E-business’, 1998 - and DonTapscott, The Digital Economy: Promise and Peril in the Age <strong>of</strong> Networked Intelligence’, McGraw Hill, 1995 and Dale Neef (ed)The Economic Impact <strong>of</strong> Knowledge (Resources for the Knowledge-based Economy), Butterworth-Heinemann, 19985Ursula Huws, ’Material World: the Myth <strong>of</strong> the Weightless Economy’ in Panitch and Leys (eds), Socialist Register, 1999.6 O´Brien, R. Global Financial Integration: The End <strong>of</strong> Geography (Chatham House Papers)7 Cairncross, F., The Death <strong>of</strong> Distance: How the Communications Revolution will Change our Lives, Harvard Business SchoolPress, Boston, 1997

67in the future the majority <strong>of</strong> jobs will consist <strong>of</strong> delocalisable ‘knowledge work’ but on the contraryimplies that a high proportion <strong>of</strong> jobs will remain firmly rooted geographically to a given spot (beit a hospital, a school, a factory or a supermarket) whilst other jobs, albeit mobile, will requirephysical co-presence at predetermined places (whether this involves laying cables or laying tables,delivering goods or delivering babies, maintaining garden plants or maintaining power plants).It also seems likely that, despite the homogenising effect <strong>of</strong> global cultures dominated bytransnational corporations, the distinguishing features <strong>of</strong> individual places may well becomemore rather than less important as localities are pushed into competition with each other forniche positions in the new global markets. The decision, for instance, whether to arrange one’shoneymoon in the Seychelles, Bali or Barbados, to get one’s s<strong>of</strong>tware developed in India, Russiaor Brazil, or to buy one’s c<strong>of</strong>fee from Nicaragua, Kenya or Colombia may well hinge on quite smalldifferences. The cumulative effect <strong>of</strong> such decisions, however, may have a dramatic impact on thelivelihoods <strong>of</strong> local inhabitants.Regions which lack the infrastructure or the skills base to enable their citizens to enter theinformation economy at all seem likely to be multiply disadvantaged. One could argue, therefore,that far from being dead, geography is assuming greater and greater importance in shapingindividual life-chances.the ’electronic cottage’Another related myth, first promulgated in the 1970s, by Alvin T<strong>of</strong>fler 8 , is that <strong>of</strong> the ’electroniccottage’ which presumes a universal trend towards home-based teleworking which, in someaccounts, is expected eventually to include almost the entire population. Whilst it is quite possiblethat there will be a continuing move <strong>of</strong> activities involving the digital processing <strong>of</strong> informationinto the home, it is necessary to remember that such activities are likely to remain a small minority<strong>of</strong> all human economic activity.The proportion <strong>of</strong> the working population whose jobs allow them to work in this way for part <strong>of</strong>the working week seems likely to reach a ceiling <strong>of</strong> an absolute maximum <strong>of</strong> 30% <strong>of</strong> the workingpopulation in the most advanced economies; however the proportion actually wanting to do so maybe smaller than this. Current statistics suggest that, even using the broadest definitions, teleworkersworking at or from their homes constitute less than 15% <strong>of</strong> the workforce even in the countrieswhere this practice is most highly developed 9 .Even if a substantial proportion choose to work in this way, the notion that their homes cansomehow become isolated self-contained rural units linked to the rest <strong>of</strong> the world entirelybe electronic means remains implausible, because people, even teleworkers, cannot live byinformation alone. They will still need to buy, or have delivered to them, food and other goods;they may well have partners, parents or children who need to travel to work or school, they willneed to visit (or be visited by) doctors, dentists, hairdressers, plumbers, repair technicians and otherspecialists; they will probably want to see their friends.8 T<strong>of</strong>fl er, A. The Third Wave, Pan, London, 19819 Huws, U. and Jagger, N., Teleworking and Globalisation, Institute for Employment Studies, 1999

68Still more misleading is the assumption that teleworking from a remote rural location will saveenergy. If these teleworkers live in remote rural communities, all this non work related activity willinvolve more travel, not less. It will also be much more likely to take the form <strong>of</strong> energy-guzzlingindividual trips in a private car, as opposed to the less wasteful mass transit systems <strong>of</strong> most cities.‘there will be mass unemployment’ or ‘robots don’t buy cars’Another common argument, used, amongst others, by William Greider 10 : is that as production isautomated, the number <strong>of</strong> production workers will shrink, thus leaving a smaller population withsufficient income to buy the products <strong>of</strong> the newly automated factories, thus leading to a crisis<strong>of</strong> overproduction which will result in mass unemployment both in developed and developingcountries. This view has been echoed in a number <strong>of</strong> other US studies with titles like ’When WorkDisappears’ 11 , ’the Jobless Future’ 12 and ’the End <strong>of</strong> Work 13 , which, as their titles suggest, contendthat the cumulative impact <strong>of</strong> technological change is not so much to relocate employment as todestroy it.Such views are however related in an extremely static notion (which historical empirical evidencehas consistently failed to substantiate) <strong>of</strong> how economic development takes place. The process <strong>of</strong>automating any function generates a need for the development <strong>of</strong> new products and services whichin turn create the bases for new forms <strong>of</strong> employment and - in the longer term - new sites for furtherautomation in a self-feeding cycle <strong>of</strong> commodification which I have described in greater detailelsewhere 14 . Whilst it may well be the case that the new jobs created may be located somewheredifferent from the old ones which are disappearing, the inexorable process <strong>of</strong> drawing more andmore human activities into the money economy means that at a global level the quantity (thoughnot necessarily the quality) <strong>of</strong> ’jobs’ seems likely to continue to expand.‘<strong>European</strong> jobs will disappear to the Third Word’ or ‘it’s a zero sum game’The ’robots don’t buy cars’ myth is sometimes found in conjunction with another notion whichis that there is somehow a finite stock <strong>of</strong> employment in the world, so that a job ’lost’ in oneplace means a job ’gained’ in another or vice versa. For the same reason, this too seems to be amisconception. Whilst it may be true, for instance, that if a French company decides to employa s<strong>of</strong>tware engineer in India this may mean one less s<strong>of</strong>tware engineering job in that particularcompany in France, the rapid expansion <strong>of</strong> a pr<strong>of</strong>essional and technical middle class in India (<strong>of</strong>which the Indian s<strong>of</strong>tware engineer forms a part) is linked to an explosion in demand for newgoods and services, much <strong>of</strong> which may be met from Europe, thus contributing to employmentgrowth elsewhere in the French economy. This may not, <strong>of</strong> course, solve the problems <strong>of</strong> anindividual French computer science graduate who cannot find work, but it should not be interpretedas presaging an inexorable overall rise in unemployment in France.the end <strong>of</strong> manual labourA growth in non-manual information-processing or knowledge work does not, <strong>of</strong> course, mean thedeath <strong>of</strong> manual work, despite the decline in the EU <strong>of</strong> certain kinds <strong>of</strong> skilled and semi-skilledmanual work in the extractive and manufacturing industries. On the contrary, the evidence is that10 Grieder, W., One World, Ready or Not: The Manic Logic <strong>of</strong> Global Capitalism11Williams, W.J., When Work Disappears, Random House, New York and Toronto, 199612 Aronowitz, S. and DiFazio, W., The Jobless Future, University <strong>of</strong> Minnesota Press, Minneapolis and London, 199413 Rifkin, J. The End <strong>of</strong> Work, Putnam Books, New York, 199514see, for instance, Huws, U., ’The Making <strong>of</strong> a Cypertariat’ in Panitch, L. and Leys, C., (Eds) Working Classes: Global Realities,Socialist Register 2001

69the fastest-growing occupations in the developed world in numerical terms (though not necessarilyin percentage terms) are in manual occupations in service industries, such as fast-food preparationand serving and cleaning. Large numbers <strong>of</strong> new jobs are also being created in manufacturing newproducts, ranging from cell-phones to clothing, although not necessarily in the EU. In general, itseems reasonable to assume that the growth <strong>of</strong> an affluent middle class is matched by the growth ina lower-skilled workforce which arises to service their material needs and create the new productswhich they can now afford to buy.a single universal model <strong>of</strong> workIt is <strong>of</strong>ten claimed that the development <strong>of</strong> an information society is leading to a new model <strong>of</strong>work. Counterposed to the ’old’ rigid model <strong>of</strong> rule-bound permanent employment, we are told,is a new, post-modern form in which everyone is a flexible worker, self-directed and autonomous,making new choices about where, when and how to work. Whilst it is undoubtedly true that therehas been growth in a number <strong>of</strong> different forms <strong>of</strong> non-traditional employment patterns, includingtemporary working, on-call working, new forms <strong>of</strong> part-time working and distance working, and<strong>of</strong> working practices such as management by results, these cannot be said to constitute a universalnew model.On the contrary, if any new trend can be discerned it is for a greater differentiation <strong>of</strong> workingpatterns. Whilst work has become more precarious for some groups on the labour market,unprecedented new opportunities have been opened up for others; whilst some forms <strong>of</strong> work havebecome more skilled, others have been deskilled; whilst some have become more autonomous,others have become increasingly Taylorised. The very fast growth (in percentage terms) in ’neweconomy’ occupations such as web-site design or systems engineering have been outweighed innumerical terms by the growth in low-skilled manual occupations such as cleaning and fast-foodservice work.endless leisure for allAlthough the new technologies have undoubtedly resulted in a ‘saving’ <strong>of</strong> labour across a range <strong>of</strong>human activities, both paid and unpaid, there is no evidence that this leads to an increase in leisure.On the contrary, the evidence is that in most developed countries the amount <strong>of</strong> time people spendin paid work is increasing, much <strong>of</strong> it involved in processing information, and <strong>of</strong>ten with a resultantincrease in stress. As the structure <strong>of</strong> the global economy becomes ever more intricate and thedesign, manufacture, distribution and marketing <strong>of</strong> products ever more complex it is likely thatthere will continue to be an exponential increase in the amount <strong>of</strong> information each individual hasto process and hence in the total net human workload.no more traffi c jamsWe have already noted that working from home cannot become a universal form <strong>of</strong> work. Evenif it did, teleworkers would not cease to travel, nor would their suppliers and customers. There isoverwhelming evidence that, throughout the world, traffic volumes continue to grow despite (orperhaps because <strong>of</strong>) the development <strong>of</strong> an information society. It is one <strong>of</strong> the paradoxes <strong>of</strong> the‘death <strong>of</strong> distance’ that the more people become accustomed to communicating with, and workingwith ever-more distant partners, they need, at least occasionally, to meet with them personally. Thedevelopment <strong>of</strong> e-commerce also means that goods are increasingly being ordered – and delivered– over large distances. Unless special measures are taken to discourage this, there is thereforelikely to be a continuing increase in traffic in the foresseable future.

70what, then, has changed?Any analysis must be rooted in an understanding that we still inhabit a material world in whichconsumption <strong>of</strong> raw materials is still growing, manufacturing is still increasing at global level,economic development in the developing world produces new jobs in the EU, regional economicdifferences persist, the workforce remains differentiated with many low-skilled jobs producingand delivering ‘real’ goods and services and a substantial proportion - usually a majority - <strong>of</strong> thepopulation in any given place will be economically dependent on activities which do not involveonly the processing <strong>of</strong> information but the processing or delivery <strong>of</strong> physical goods or services inreal time and real space. consumption <strong>of</strong> raw materials still growing – an so are the traffic jams!The majority <strong>of</strong> the workforce will be anchored to particular, unduplicable physical locations.It is, however, one <strong>of</strong> the great ironies <strong>of</strong> our time that they will not necessarily be doing so inthe places from which they originate. The globalisation processes which have produced the newinternational division <strong>of</strong> information processing work have also coincided with major migrations <strong>of</strong>people around the world. Increasingly we find that the jobs with the most intensive requirement forphysical co-presence are also those most likely to be carried out by migrants. Examples <strong>of</strong> theseinclude domestic or industrial cleaners, child-care workers, low-skilled assembly workers, janitorsand security guards, labourers on construction sites, sex workers and service workers in hotels andfast-food chains.I have emphasised the persistence <strong>of</strong> this ‘rooted’ employment because it is so <strong>of</strong>ten renderedinvisible in discussions about the information society. However it must not be assumed that allwork will take this form. A substantial proportion <strong>of</strong> employment, perhaps as much as 30% in themost developed economies, already or potentially involves the processing <strong>of</strong> digitised informationand is therefore capable <strong>of</strong> being relocated to any spot where the right infrastructure is to be foundin combination with a workforce with the requisite skills and abilities.We are therefore confronted with an entirely new situation: the combination <strong>of</strong> telecommunicationsand computing (telematics) is bringing about real changes in who does what work, where, whenand how and that there are new choices open to both employers and workers in the organisation<strong>of</strong> work in time and space.the EMERGENCE Projectthe project’s aimsThe EMERGENCE Project was set up, with funding from the <strong>European</strong> Commission’s InformationSociety Technologies (IST) Programme to:• Measure the extent <strong>of</strong> eWork• Identify the forms and characteristics <strong>of</strong> eWork• Identify favoured locations for each eActivity• Find reasons for the choice <strong>of</strong> location or supplier• Explore the dynamics <strong>of</strong> relocation• Investigate the employment implications• Identify the constraints and facilitators• Identify indicators for future modelling and tracking• Inform regional development strategies

71Conceptual frameworkThe EMERGENCE project takes as its starting point the basic geographical unit <strong>of</strong> the’establishment’ (ie a single, fixed address at which people are employed). It then explores theextent to which work which is delivered to that establishment (and which in the past one wouldhave expected to be carried out at that establishment) is carried out at a geographical distance(’remote work’) using an electronic link (’telemediated’ work).Remote telemediated work is analysed using two broad variables, which are presenteddiagrammatically in Figure 1. One <strong>of</strong> these relates to the contractual relationship between theemployer and the workers: are they direct employees (or ’internal’ to the organisation) or arethey outsourced (ie either self-employed or employed by another company or agency)? Thesecond variable relates to where they work: are they working in isolation away from a traditionalworkplace (eg in their homes or on the move), or are they working in a shared workplace in a spacedesigned for employment?Figure 1:typology <strong>of</strong> telemediated remote workType <strong>of</strong>workplaceIndividualised(away from ‘<strong>of</strong>fi ce’premises)On shared ‘<strong>of</strong>fi ce’premisescontractualInternal/employeesEmployed telehomeworkersMobile employeesRemote back <strong>of</strong>fi ces/callcentresEmployees working intelecottages or other thirdparty premisesoutsourcedFreelance teleworkers ormobile workersSpecialist businessservice supplycompaniesOutsourced call centresWhilst this framework provides a useful basis for categorisation - which is, <strong>of</strong> course, a preconditionfor quantification - it is important to remain aware that the various forms <strong>of</strong> work detailed in thesefour cells represent choices for employers or workers, not absolute and unchanging categories.There may therefore be frequent moves between these categories, and employers may use workersfrom more than one category to carry out the same function.One example <strong>of</strong> this might be the use <strong>of</strong> homeworkers as an overflow workforce for call centresduring periods <strong>of</strong> high demand (sometimes known as ’virtual call centres’), already practised by4% <strong>of</strong> call centres in one international study 15 .Another example is the use <strong>of</strong> <strong>of</strong>fice-based workers in Bangalore, India to carry out medicaltranscription for US doctors, an activity which is carried out in the United States by home-basedteleworkers 16 .Despite this proviso, this approach does make it possible to begin the process <strong>of</strong> estimating theextent and characteristics <strong>of</strong> remote telemediated work, or ’eWork’.15 Denbigh, A. and Huws, U., Virtually There: the Evolution <strong>of</strong> Call Centres, Mitel, Swindon, 199916 Siclair Jones, J., ”First you see it, Now you don´t: Home based telework in the global context” Working Paper presented to theAustralian Sociology Association Conference, Monash University, Melbourne, December 5-7 1999.

72Preliminary results <strong>of</strong> the EMERGENCE surveyIn 2000, the EMERGENCE project carried out a survey, <strong>of</strong> over seven thousand establishments inall EU countries plus Hungary, Poland and the Czech Republic. Once the results had been weightedto make them representative <strong>of</strong> all <strong>European</strong> establishments, 49% were found to be practisingeWork. Figure 2 shows the breakdown by type <strong>of</strong> eWork.This shows that the stereotypical employee teleworker based solely at home is in fact one <strong>of</strong> theleast popular forms <strong>of</strong> eWork. Only one and a half per cent <strong>of</strong> establishments in Europe employpeople to work exclusively from home in this way, although the proportion rises to over 2% in theEU (15). It is much more common to use the new technologies to support multi-locational workingby employees, already practised by one <strong>European</strong> employer in ten, a form <strong>of</strong> working much lesslikely to be associated with social isolation. As many again are using non-employees for this work.Nearly one employer in six (17.3%) uses freelances to deliver some form <strong>of</strong> information service.Using a tighter definition <strong>of</strong> freelance eWork, to include only work which is delivered by means <strong>of</strong>telecommunications, we still find 11.4% <strong>of</strong> <strong>European</strong> employers are using ’e-lancers’.Turning to eWork carried out on <strong>of</strong>fice premises, we find that employers are already makingsignificant use <strong>of</strong> IST technologies to carry work out remotely. One <strong>European</strong> employer in fourteen(6.8%) has a back <strong>of</strong>fice in another region. Bearing in mind that the ’regions’ we are talking abouthere are large - NUTS1 level - regions, which, in the case <strong>of</strong> smaller countries like Ireland, Portugalor Luxembourg, constitute the whole country, this represents a significant displacement <strong>of</strong> work.To these can be added a further 1% <strong>of</strong> employers who make use <strong>of</strong> telecottages or telecentres asremote bases for their employees.These forms <strong>of</strong> internal teleworking are heavily outweighed, however, by the use <strong>of</strong> e-outsourcingas a mechanism for carrying work out remotely. Over half <strong>of</strong> all establishments (56%) outsourceat least one business service involving information processing. Restricting our definition only tothose which use electronic means <strong>of</strong> delivery (’e-outsourcers’) we find 43% <strong>of</strong> employers makinguse <strong>of</strong> this practice. Much <strong>of</strong> this outsourcing is carried out within the region where the employer isbased (34.5%) but substantial numbers <strong>of</strong> establishments (18.3%) are outsourcing to other regionswithin the same country, whilst 5.3% are outsourcing outside their national borders, as can be seenfrom Figure 2.

73Figure 1:eWork in Europe (demand side) by type <strong>of</strong> eWorkWeighted figures; % <strong>of</strong> establishments with >50 employees in EU (15) plus Hungary, Poland andCzech Republic; Source: EMERGENCE <strong>European</strong> Survey, 2000 (IES/NOP)Figure 2:Use <strong>of</strong> outsourced business servicesWeighted figures; % <strong>of</strong> establishments with >50 employees in EU (15) plus Hungary, Poland andCzech Republic; Source: EMERGENCE <strong>European</strong> Survey, 2000 (IES/NOP)

74Figure 3:eWork demand in Europe, by business functionWeighted figures; % <strong>of</strong> establishments with >50 employees in EU (15) plus Hungary, Poland andCzech Republic;Source: EMERGENCE <strong>European</strong> Survey, 2000 (IES/NOP)Figure 4:eWork supply in Europe, by business functionWeighted figures; % <strong>of</strong> establishments with >50 employees in EU (15) plus Hungary, Poland andCzech Republic; Source: EMERGENCE <strong>European</strong> Survey, 2000 (IES/NOP)Functions involved in eWorkAs can be seen from Figure 3, nearly six out <strong>of</strong> ten <strong>of</strong> the establishments using eWork use it fors<strong>of</strong>tware development and support, which is the function most likely to be carried out remotelyusing a telecommunications link. The second most common telemediated function, at 38%, iscreative work, a category which includes design, editorial work, multimedia content generation andother creative activities. This is followed by management, training and HR functions, at 20% andcustomer services at 19%. Since sales activities have traditionally been carried out in a dispersedway, we did not wish to run the risk <strong>of</strong> categorising all travelling sales personnel as eWorkers,so the sales function was defined rather narrowly in the survey to include only sales activities

75carried out using a telecommunications link. Such telesales activities were reported by onlysix per cent <strong>of</strong> all eWork employers. However this apparently low level is partly accounted forby the increasing pattern <strong>of</strong> integrating sales and customer service functions - many telesalesactivities have been subsumed into customer services departments. At nine and eight per centrespectively, data processing activities and finance and accounting services also play a significantrole in eWork.The supply sideAn e-outsourcing relationship, <strong>of</strong> course involves two parties. Our survey looked not only at thedemand for outsourced telemediated work but also the supply side, at least ins<strong>of</strong>ar as this involvesfirms with more than fifty employees. As Figure 4. shows, more than one in five - 21% - <strong>of</strong> alllarger establishments in Europe is engaged in supplying telemediated services. This suggests thatsuch activities already play a significant role in the <strong>European</strong> economy. The function most likelyto be involved - at 11% - is customer services, perhaps a reflection <strong>of</strong> the rapid recent growth <strong>of</strong>outsourced call centres. This is followed by design, editorial and creative functions, at 7% ands<strong>of</strong>tware development and support at 6%. Given the very high level <strong>of</strong> demand for IT services, therelatively low prevalence is a little surprising. Two factors may contribute to this: the strength <strong>of</strong>countries outside Europe in this sector; and the existence in the IT sector <strong>of</strong> a number <strong>of</strong> microbusinesses,either single freelancers or companies with fewer than 50 employees.Reasons for choice <strong>of</strong> remote supplierFinally, we look at the reasons for the choice <strong>of</strong> remote supplier, which provides valuable clues tothe competitive advantages <strong>of</strong> regions.Figure 5:Reasons for the choice <strong>of</strong> remote e-outsourcerWeighted figures; % <strong>of</strong> establishments with >50 employees in EU (15) plus Hungary, Poland andCzech Republic; Source: EMERGENCE <strong>European</strong> Survey, 2000 (IES/NOP)

76As can be seen, by far the most common driver is the search for technical expertise, followed byqualitative factors, such as reliability and good reputation. Only when these have been satisfieddoes low cost become a consideration. Perhaps even more interesting than these stated reasons aresome <strong>of</strong> the reasons which were not stated, although they figure large in many policies designed toattract employers to remote regions. These include Government grants, tax breaks, and deregulatedlabour markets.What are the implications for the future <strong>of</strong> work?It must be emphasised that these are interim results from a survey which will be extended toadditional countries and the results <strong>of</strong> which will be subjected to more detailed analysis, andilluminated qualitatively by the findings from linked case studies.Nevertheless, they indicate a significant level <strong>of</strong> cross-regional and cross-border working, much <strong>of</strong>it involving outsourcing.Such developments raise a number <strong>of</strong> important questions for policy-makers. I conclude byoutlining some <strong>of</strong> these.Regional specialisation based on ‘like attracting like’In principle the new information society technologies open up the possibility for any region in theglobe to become more economically diverse, with a range <strong>of</strong> employment opportunities from themost skilled and creative kinds <strong>of</strong> knowledge work to the most routine manual work. In practice,however, it seems likely that increasing choice in the selection <strong>of</strong> a location for any given taskproduces a paradoxical effect whereby regions become more specialised, due to the phenomenonwhereby ‘like attracts like’. If a region has established itself as a centre <strong>of</strong> excellence in innovativewebsite design, for instance, then it is likely that organisations seeking such skills will gravitatetowards it. This might deprive companies in other regions <strong>of</strong> the chance to market their talents inthis area.This development therefore creates both opportunities and threats. On the one hand there is thechance for a region to become a global centre <strong>of</strong> excellence in a given field. However there isalso the risk <strong>of</strong> becoming excluded altogether from the new information economy or <strong>of</strong> beingstereotyped as a low-skill, low-cost region.In order to avoid this risk, to factors seem to be <strong>of</strong> crucial importance: the availability <strong>of</strong> low-costreliable infrastructure, and a highly skilled workforce.The development <strong>of</strong> a ‘cybertariat’These developments are bringing about an unprecedented convergence in working conditionsacross the globe. Indeed it could be said that a new global class <strong>of</strong> information workers is emerging,tied together by a common labour process (courtesy <strong>of</strong> Micros<strong>of</strong>t), a common language (courtesy<strong>of</strong> past patterns <strong>of</strong> Anglo-Saxon imperialism) and increasingly similar organisation cultures (as aresult <strong>of</strong> the spread <strong>of</strong> global corporations, strategic alliances and outsourcing relationships).This raises the question <strong>of</strong> how common standards <strong>of</strong> social protection can be ensured and a globalrace to the bottom avoided. As employment relationships spread across national borders, it seemslikely that supra-national agreements may be needed. This gives added weight for the argumentfor a <strong>European</strong>-level social dialogue on eWork.

77New stresses in both work and ‘leisure’An increasingly telemediated 24-hour information society brings new challenges for people bothin their capacities as workers and as consumers.There is a need to delineate new boundaries in time and space and to develop the skills to managethese boundaries. Time can no longer be divided simply into ‘work time’ and ‘leisure time’or ‘family time’. There is a need to further differentiate non-working time into ‘consumptiontime’, ‘reproductive time’ and genuine ‘pleasure time’. Increasingly ‘consumption time’ involvesbeing on the receiving end <strong>of</strong> the labour externalisation strategies <strong>of</strong> service providers. There isa danger that the Taylorisation <strong>of</strong> service delivery (e.g. in call centres) will lead to a concomitantTaylorisation <strong>of</strong> the consumption experience, with service workers and consumers pitted againsteach other in a struggle over the control <strong>of</strong> time. In order to avoid stress for either party, there istherefore a common interest in humanising the conditions <strong>of</strong> service deliveryThere is also a need for techno-literacy for the entire population in order that IST-based servicescan be accessed according to need and the generation <strong>of</strong> a digital divide is to be voided.New environmental challengesPerhaps the greatest challenge <strong>of</strong> all posed by these developments is to the future <strong>of</strong> our planet – toenvironmental sustainability. Here the key questions are:• How do we substitute the movement <strong>of</strong> information for the movement <strong>of</strong> goods and people?• How do we minimise the consumption <strong>of</strong> natural resources in the production <strong>of</strong> the increasingnumbers <strong>of</strong> commodities? And,• How can we reduce energy consumption in a 24-hour electronic society?Huge new opportunitiesIn discussing some <strong>of</strong> the implications <strong>of</strong> the global development <strong>of</strong> eWork for the future <strong>of</strong> workthere is a risk <strong>of</strong> dwelling on the negative. It is important to end this presentation by reiteratingthe – perhaps obvious – point that these developments open up many exciting new opportunities,<strong>of</strong> which we can now only glimpse a few. These include the opportunities:• To develop new e-services (e.g. e-services for e-inclusion) which can contribute towards thedevelopment <strong>of</strong> a more inclusive society• To develop new IST-related products which can improve the quality <strong>of</strong> life• To develop new and harmonious forms <strong>of</strong> work/life balance• To make work more autonomous and interesting• To reduce global inequalities, and• To develop sustainable solutions to the pressing environmental challenges we currently face.For more informationFurther information about the EMERGENCE project can be found on www.emergence.nu

78Information Security in E-workArto Karila, Dr. Karila A & E Ltd.1. Threats and requirements for the security <strong>of</strong> E-workThreats against the security <strong>of</strong> information systems can be divided into three main categories:disclosure <strong>of</strong> confidential information (the disclosure threat), loss <strong>of</strong> integrity <strong>of</strong> information (themodification threat), and unavailability <strong>of</strong> information (the denial <strong>of</strong> service threat). Traditionally,information security has been primarily associated with the disclosure threat. In today’s world,our dependence on information systems is such, that unauthorized modification or extendedunavailability <strong>of</strong> information can have disastrous consequences. In E-work, all kinds <strong>of</strong> informationneed to be accessible through the network. Therefore, information security is a mandatoryrequirement for E-work.When working in an open network, information flowing through the network is susceptibleto unauthorized disclosure and modification. Strong encryption is necessary to protect theconfidentiality and integrity <strong>of</strong> such information. Indirectly, encryption also helps ensure theavailability <strong>of</strong> information networks. When disclosure and modification threats are effectivelyprotected against, it is possible to implement availability by building sufficient redundancy intoinformation networks. Building this kind <strong>of</strong> redundancy is something which the Internet technologywas originally designed and still is well suited for.2. Development <strong>of</strong> network infrastructureInternet architecture is the dominating network architecture <strong>of</strong> the early 2000’s. Internet is based onthe Internet Protocol (IP), which can be run on all kinds <strong>of</strong> physical networks and under all kinds <strong>of</strong>applications. Its independence <strong>of</strong> both physical networks and applications is the main strength <strong>of</strong>IP. IP can easily be implemented even on totally new network technologies, such as Wireless LAN(WLAN) or the General Packet Radio Service (GPRS) <strong>of</strong> the GSM (General System for Mobilecommunications) network. New applications, such as the World Wide Web (WWW), Voice overIP (VoIP), and many others to come, can easily be implemented on top <strong>of</strong> the standard IP service.The Internet architecture has remained essentially unchanged since 1974 and continues to prove itsstrength. Hence, the old slogan ”IP over everything, everything over IP” is more true today thanever before.The main shortcomings <strong>of</strong> IP are its inadequate address space, lack <strong>of</strong> mobility support, lack <strong>of</strong>differentiated quality <strong>of</strong> service, and lack <strong>of</strong> security. Each <strong>of</strong> these issues has been addressed bythe Internet Engineering Task Force (IETF) and standard track solutions have been developed foreach <strong>of</strong> them. The new version 6 <strong>of</strong> IP (IPv6) <strong>of</strong>fers a virtually unlimited number <strong>of</strong> addresses

79as well as better extensibility than the current version 4. Mobile IP (MIP) is defined for both <strong>of</strong>the IP versions. MIP makes it possible for a mobile host to move from one network to anotherwhile retaining its permanent IP address, which is used in all communications with this host. This<strong>of</strong>fers true mobility, not just within one network technology (like GSM) but also between differenttypes <strong>of</strong> networks, for example WLAN, GPRS, and wire-line networks. Quality <strong>of</strong> service canbe implemented in the Internet by means <strong>of</strong> Differentiated Internet Services (DiffServ), whichis a simple stateless prioritization scheme that scales well to global networks. Generic IP-levelsecurity is provided by the Internet security protocol IPSEC, which is based on cryptography, andits associated key management protocol Internet Key Exchange (IKE).Even though not all functionality can be implemented at the IP layer, everything possible shouldbe implemented there, a nice feature <strong>of</strong> the Internet architecture being, that all functionality <strong>of</strong> theIP layer is independent <strong>of</strong> both physical networks and applications. For example, IPSEC worksover (and across) all networks and under all aplications. The Internet can take full advantage <strong>of</strong>Moore’s law, which, in its basic form, states that the performance <strong>of</strong> microprocessors doubles every18 months while their price remains the same. This law has held surprisingly well for more thana quarter <strong>of</strong> a century. Roughly the same behavior can be observed in many other areas, includingrandom access memory (RAM), hard disks, local area networks (LAN), wireless LANs (WLAN),LAN switches, and IP routers. However, even in the relatively rapidly developing area <strong>of</strong> mobiletelecommunications, a product generation is rather ten than two years. The Automobile RadioPhone (ARP) came to public use in 1971, the Nordic Mobile Telephone (NMT) in 1981, GSM in1991, and UMTS will perhaps be deployed in 2002.This means that the cost-efficiency <strong>of</strong> the packet-based Internet technology is constantly improvingmuch faster than that <strong>of</strong> traditional time division multiplexing (TDM) based telecom technology.Therefore, it is a matter <strong>of</strong> a rather short time before all applications will be moved over IP. Intraditional telephony, VoIP already is clearly more cost-efficient than traditional telecom in bothwide and local area. With the advances in wireless communications and IP, it is only a matter <strong>of</strong>a couple <strong>of</strong> years before the same will happen in mobile communications. If UMTS is to haveany ecological locker at all, it will be as one physical network, alongside with WLAN, GPRS, andothers, under IP. We can, therefore, reasonably assume, that E-work will be based on the Internetarchitecture and the network aspects <strong>of</strong> its security will be the same as Internet security.Ubiquitous computing (ubicomp, ”computing everywhere”) means the use information technology,in some form, in all areas <strong>of</strong> life and all imaginable devices. Common household appliances alreadycontain microprocessors executing s<strong>of</strong>tware that implements large parts <strong>of</strong> their functionality. Inthe near future, most <strong>of</strong> these devices will be networked, <strong>of</strong>ten with wireless access. Also, forreasons <strong>of</strong> security, they will need to contain public key cryptosystems and secret encryption keysto enable their safe configuration and management. This means that we will have small networkedcomputers with in-built cryptography everywhere. They will be so commonplace that we will notthink <strong>of</strong> them as computers or IT, as little as we today think about electricity that we already areusing everywhere.There will soon be a great demand for small inexpensive devices implementing IP, IPSEC, anda WLAN interface on a single silicon chip. The rest <strong>of</strong> the chip’s surface can be allocated fora general-purpose microcontroller, memory and input/output ports to control various devices.Such chips can already be produced and before long they will make up the majority <strong>of</strong> all hostsconnected to the Internet.

803. The impact <strong>of</strong> increasing mobilityMobility in the broader sense <strong>of</strong> the word means the ability <strong>of</strong> the user to access informationindependently <strong>of</strong> his or her location. In practice, this usually requires some kind <strong>of</strong> mobilitysupport from the terminal device and the underlying network. Mobility doesn’t really bring withit entirely new security threats. However, it makes the already existing threats worse. Becauseinformation can be accessed independently <strong>of</strong> location, also the security <strong>of</strong> the system can beattacked from anywhere and by virtually anybody.It should be noticed, that mobility and wirelessness are two different things, even though they <strong>of</strong>tenappear together. Mobility means the ability <strong>of</strong> the user or terminal to move from one network (orpoint <strong>of</strong> attachment) to another. Wirelessness simply means replacing the cable <strong>of</strong> the last link<strong>of</strong> a network with a wireless communications link (e.g. radio or infra red). Wirelessness alonedoesn’t provide much mobility. For example, in a GSM network, most <strong>of</strong> the complexity <strong>of</strong> thenetwork and terminal s<strong>of</strong>tware has to do with handling hand-overs, that is, the moving <strong>of</strong> themobile terminal from one base station to another. While wirelessness and mobility can be usefulseparately, they are both at their best when combined. That is, wireless access to mobile networkswill continue to grow in importance.4. Possible solutionsInformation security is a multi-faceted issue involving a number <strong>of</strong> non-technical aspects.Administrative, personnel and physical measures are always needed to implement security,technical measures alone are useless. However, when working in an untrusted network, securitycannot be achieved without the use <strong>of</strong> cryptography. A part <strong>of</strong> the solution, therefore, is IPSECwhich can be used as a standard mechanism for protecting against eavesdropping and modification<strong>of</strong> messages in the network.Public key cryptography is necessary e.g. for authentication and key management. In addition,a public key infrastructure (PKI) is needed to reliably tie public keys to their owners. PKI isan example <strong>of</strong> trusted-third-party (TTP) services, which are always based on trust. The physicalrealization <strong>of</strong> a PKI is in the form <strong>of</strong> certificates. Trust cannot be dictated but rather earned. Variousparties should be able to determine whom they trust, in what issues, and how much.We also need a trusted computing base (TCB) within any system. The TCB should be minimizedand based on open designs. We should be able to audit it in order to gain confidence in it.Compromising the security <strong>of</strong> parts <strong>of</strong> the system outside the TCB should not jeopardize thesecurity <strong>of</strong> the entire system.Traditionally, access control and authorization have been based on authenticating the identity (thatis, some kind <strong>of</strong> a name) <strong>of</strong> the user. In large systems this is impractical because it is impossible todeduce the access rights <strong>of</strong> just anybody on the basis <strong>of</strong> his or her name. In general, we are moreinterested in making sure that the user is authorized to do what he or she is doing than in knowingwho the user is. So, we should be able to authenticate the rights <strong>of</strong> a user rather than his or heridentity. Authorization certificates are a good generic tool that can be used for such purposes andscales up to global systems.

81Security and usability tend to be contradictory requirements. When making systems more secure,we are normally also making them less usable. E-work is something that should work on the terms<strong>of</strong> the ordinary user, that is, be usable to everybody. Combining security and usability is a majorchallenge <strong>of</strong> our times.5. Secure E-work – a visionInternetworking will continue to develop and spread to new areas <strong>of</strong> application. Economies <strong>of</strong>scale will drive virtually all applications to use the main-stream IP technology. With mobility,quality <strong>of</strong> service, and security as basic service <strong>of</strong> the next generation Internet, we will have aglobal generic platform to base E-work on.IPSEC and public key infrastructure will effectively protect against unauthorized disclosure andmodification <strong>of</strong> network traffic. Sufficient redundancy in the network will protect agains denial <strong>of</strong>service. All this can be achieved with inexpensive standard solutions that will continue to comedown in price.So, the technological platform for secure E-work is forming and the networking aspects <strong>of</strong> securitycan be solved. However, when we are dealing with people and complex information flows, there isno simple standard solution to the security <strong>of</strong> the entire system. A lot <strong>of</strong> work is required to definethe core business processes with their associated information flows and security requirements.Security needs to be designed into these processes. Standard security mechanisms need to beapplied to make sure that the information systems used do not compromise the security <strong>of</strong>information flows.There are no known methods for proving the security <strong>of</strong> entire processes. We need to buildcontinuous monitoring and feed-back into our processes. Also, auditing by an outside party (notresponsible for implementing or running the systems) is necessary.We have, hopefully, reached a stage, where the ever increasing processing power and othertechnological achievements will be made serve people. Usability <strong>of</strong> any information systemsalready is a major challenge. Combining security with usability is even more difficult. The maingoal <strong>of</strong> systems design should not be to optimize the use <strong>of</strong> ever cheaper computing resourcesbut to make the work <strong>of</strong> people increasingly efficient and pleasant. This is an interesting interdisciplinaryreasearch area that can only be expected to grow in importance.The weakest link <strong>of</strong> security will continue to be people and their attitudes. Time after time, themain cause for major security breaches turns out to be the unauthorized behavior <strong>of</strong> authorizedpeople in their daily tasks. While technical measures and secure scalable technical platforms arenecessary for the success <strong>of</strong> E-work, they cannot compensate for shortcomings in the non-technicalaspects <strong>of</strong> security. Security needs to be defined, designed, and built into work processes. Peopleneed to be well instructed, trained an motivated. There also needs to be monitoring and feed-backas well as independent auditing. This requires commitment <strong>of</strong> entire organizations starting fromtheir top management. The possibilities <strong>of</strong>fered by E-work are such, that the time and effort should,on the leng term, prove to be well spent.

82Accommodating the new economy:The SANE space environment modelAndrew Harrison, Director Research and Methods, DEGW, UKAbstractSustainable Accommodation for the New Economy (SANE) is a two year EC-funded researchprogramme considering the combined impact <strong>of</strong> the new economy on people, process, placeand technology to identify new ways <strong>of</strong> accommodating work. Its focus is on the creation <strong>of</strong>sustainable, collaborative workplaces for knowledge workers across Europe, encompassing bothvirtual and physical spaces.The key operational goal <strong>of</strong> the project is to develop a unified framework for the design <strong>of</strong>sustainable work places in Europe. This multi-disciplinary framework will generate designsthat will allow distributed organisations to take full advantage <strong>of</strong> coming advances in locationindependent computing and ubiquitous networking. SANE will broaden the range <strong>of</strong> workplacedesign parameters to include consideration <strong>of</strong> degrees <strong>of</strong> privacy and relations between physicaland virtual spaces. By embracing considerations <strong>of</strong> public and private space the workspaceenvironment model developed will locate the <strong>of</strong>fice environment in the wider context <strong>of</strong> thesustainable urban development and the regeneration <strong>of</strong> <strong>European</strong> cities.This paper describes the work currently being undertaken by the SANE project’s SpaceEnvironment Modelling work package which is led by DEGW. This work package focuses on thearchitectural aspects <strong>of</strong> the human environment in organisational settings. Other key theoreticalpackages are Human Environment Modelling which examines communications and interactionin physical and virtual environments and Processes and Tools which will examine current andlikely future technology tools and processes to support the distributed workplace.1. IntroductionThe 1990s has seen a revolution in the way that space and time are used in leading organisations.New Ways <strong>of</strong> working have allowed many organisations to integrate the physical work environmentinto the business process, to increase density <strong>of</strong> occupation within <strong>of</strong>fice buildings while at thesame time creating effective work environments that encourage interaction and communications.The next decade will see even greater challenges: both at the level <strong>of</strong> the individual trying to usethe scarce resource <strong>of</strong> time more effectively and at the level <strong>of</strong> the organisation trying to manage adispersed workforce while creating the spirit and teamwork necessary for organisations to continueto generate new ideas and thrive. Increasingly organisations will move outside <strong>of</strong> the physicalcontainer <strong>of</strong> their own buildings into larger organisational networks across cities, countries, theregion or the world.

83Once again information technology has played an essential role in the transformation, allowingforward thinking organisations to integrate a wider range <strong>of</strong> urban work settings into theircorporate workspace. The need for building or space ownership becomes less significant as space ispurchased on demand, on an hourly, daily, or monthly basis or as non owned spaces such as hotels,airport lounges and clubs become a standard part <strong>of</strong> the working week. The city is the <strong>of</strong>fice.1.1 Sustainable Accommodation for the New Economy SANEThe implication <strong>of</strong> the distributed workplace will be explored in detail during the next eighteenmonths in the SANE project. SANE is a two year EC- funded research programme considering thecombined impact <strong>of</strong> these changing factors on people, process, place and technology to identifynew ways <strong>of</strong> accommodating work. Its focus is on the creation <strong>of</strong> sustainable, collaborativeworkplaces for knowledge workers across Europe, encompassing both virtual and physical spaces.Its findings will be relevant to a wider global audience and will impact the built environment at allscales - from home, to <strong>of</strong>fice, to city. SANE will accelerate the transition from a location centricto a location independent approach to work. It will harness the potential to free workers from thetraditional spatial, temporal and organisational constraints that can impede creativity, productivity,agility, learning and co- operation.The overall goal <strong>of</strong> SANE is to contribute to sustainable <strong>European</strong> economic development, whileat the same time increasing productivity in the workplace and improving the quality <strong>of</strong> life for<strong>European</strong> citizens. Work in the new economy involves more challenges and possibilities thanever before: new technologies enable greater mobility; divisions between work and home life areshifting; business is undergoing fundamental change in delivery and production methods. Togetherthese factors are creating new possibilities for the way we work and fresh opportunities for thosecreating working environments.DEGW is the co-ordinator for SANE, in collaboration with Europe’s leading research institutes inworkplace technologies, major telecommunications partners and human communications experts,including: Institut CERDA, FAW, IAT, Ove Arup & Partners, Royal Holloway College and TelenorAS.2. SANE Space Environment Model: a new distributed workplace modelThe distributed workplace model developed by DEGW assumes radical changes in both the supplyand demand sides <strong>of</strong> the building procurement model.In the supply side <strong>of</strong> the equation developers will increasingly realise that increased pr<strong>of</strong>its willresult from thinking <strong>of</strong> buildings more in terms <strong>of</strong> the opportunity to deliver high value addedservices on a global basis to a customer base rather than as a simple passive investment vehicle.From the users’ perspective there is increasing interest in the provision <strong>of</strong> global solutions thatprovide flexibility and break down the old barriers between real estate provisions, buildingoperation and the provision <strong>of</strong> business services. For global organisations it is also becoming moreimportant to reduce the number <strong>of</strong> providers <strong>of</strong> work environments to maximise the economies <strong>of</strong>scale they can achieve.The role that buildings are playing in many organisations is also changing. Historically buildingshave <strong>of</strong>ten provided a way <strong>of</strong> demonstrating organisational wealth, power and stability. The solid19th century bank and insurance headquarters buildings in the UK and the 20th century drive fortaller and taller <strong>of</strong>fice buildings, <strong>of</strong>ten in the absence <strong>of</strong> a sound financial or real estate case forthem, are both demonstrations <strong>of</strong> this.

84With distributed workforces only accessing buildings periodically the role <strong>of</strong> buildings is shiftingdramatically. Work can take place anywhere so why should some-one come to the <strong>of</strong>fice? The<strong>of</strong>fice is seen as an opportunity to express the culture and reinforce the values and beliefs <strong>of</strong> anorganisation. The physical work environment and the opportunities it provides for interaction andcollaboration aids knowledge transfer and communication and will form the infrastructure forlearning organisations.The distributed workplace model developed by DEGW also tries to incorporate the increasingcongruence between physical and virtual work environments, acknowledging the impact thatinformation and communications technologies have had on the work process <strong>of</strong> most individualsand organisations.The model also examines the continuum between public and private space and produce novelsolutions to their integration into work places. The workplace is divided into three conceptualcategories according to the degree <strong>of</strong> privacy and accessibility they <strong>of</strong>fer. The three categories <strong>of</strong>place used in the model are “public”, “privileged” and “private”.Each <strong>of</strong> these ‘places’ is composed <strong>of</strong> a number <strong>of</strong> different types <strong>of</strong> work settings, the relativeproportion <strong>of</strong> each forming the character <strong>of</strong> the space. Public space is predominately suited forinformal interaction and touchdown working for relatively short periods <strong>of</strong> time. Privileged spacesupports collaborative project team and meeting spaces as well as providing space for concentratedindividual work. Private space also contains both individual and collaborative work settingsbut with a greater emphasis on privacy and confidentiality, with defined space boundaries andsecurity.Figure 1:SANE Space Environment Model

85Each <strong>of</strong> the physical work environments has a parallel virtual environment that shares some <strong>of</strong> thesame characteristics. The virtual equivalent <strong>of</strong> the public workplace is the internet where access isopen to all and behaviour is relatively ‘unmanaged’. The equivalents <strong>of</strong> the privileged workplaceare extranets where communities <strong>of</strong> interest use the internet to communicate and as an informationresource membership.There are restrictions to entry into a knowledge community (such as registration or membership byinvitation only) and membership has obligations and responsibilities attached, perhaps in terms <strong>of</strong>contributing material or communicating with other members. The virtual equivalents <strong>of</strong> the privateworkplace are intranets, the private knowledge systems belonging to an individual organisationthat contain the organisation’s intellectual property. Access to the Intranet is restricted to members<strong>of</strong> the organisation and the value <strong>of</strong> the organisation is related to the contents <strong>of</strong> this virtual space– the customer databases, the descriptions <strong>of</strong> processes and project histories.When designing accommodation strategies organisations will increasingly need to consider howthe virtual work environments will be able to support distributed physical environments and howthe virtual environments can contribute to the development <strong>of</strong> organisational culture and a sense <strong>of</strong>community when the staff spend little or no time in ‘owned’ facilities.An organisation could choose to locate the Public, Privileged and Private workplaces within asingle building and location. In many ways the rich mix <strong>of</strong> work settings provided in New Ways<strong>of</strong> Working implementations could be said to already do this. In the diagram below this type <strong>of</strong>combined work environment is referred to as ‘‘Office is the City’. All workspace is owned by theorganisation and is occupied solely by then. Zoning within the building is <strong>of</strong>ten used to reinforceculture and community and urban metaphors such as ‘neighbourhood’, ‘village’ and ‘street’ maybe used to describe these zones.Figure 2:Property strategies for dispersed organisations

86As the level <strong>of</strong> remote working increases in an organisation it may not be desirable to houseall types <strong>of</strong> workplace in the same location. Distributing workplaces around the city may allowstaff to reduce the amount <strong>of</strong> commuting they need to do and allow the organisation to startusing the attributes <strong>of</strong> the city to reinforce organisational culture and community. For example anorganisation that wants to be thought <strong>of</strong> as innovative and trendy could choose to locate drop-inwork centres in downtown retail/ leisure area such as Soho in London or Chelsea in New Yorkwhile the bulk <strong>of</strong> their workplace could be in more traditional business locations. In the diagramabove this property strategy is described as ‘dispersed.’As discussed previously organisations are increasingly incorporating semi-public spaces suchas hotels, serviced <strong>of</strong>fice centres, airport lounges and cafes into their work environments. It ispossible that this trend will continue to the point where the only spaces actually owned by theorganisation are the Private Workplaces including such things as Headquarters Buildings, Trainingand IT Centres. All other space could be provided by outside organisations on a flexible, ‘as used’basis as well as many <strong>of</strong> the business support services. This type <strong>of</strong> real-estate strategy is describedas ‘figurehead’ in the property strategy diagram above.If this move away from owned organisational space is taken to its extreme it is possible toenvisage a completely virtual organisation where virtual work environments are used to house theorganisation’s knowledge and information resources and all physical work takes place in eitherindividually owned space (for example, staff working at home) or in shared work environmentsbooked on an ‘as-needed’ basis. In the diagram above this is described as ‘City is the Office.’If this strategy is adopted by an organisation issues relatively to training and knowledge transfer,use <strong>of</strong> ICT to support the work process, management <strong>of</strong> distributed work teams and informalinteraction and team building will need to be carefully thought through.3. Implications <strong>of</strong> the distributed workplace modelThe introduction <strong>of</strong> a distributed workplace model potentially has both efficiency and effectivenessbenefits that can work at the level <strong>of</strong> the individual, the organisation and the City. The distributedworkplace model suggests that workspace in the future will be broken down into smaller unitsdistributed across the city, including both suburban (close to home) and urban (close to clients)space.Smaller units <strong>of</strong> space can more easily be incorporated into the existing city fabric and, whencombined with new methods <strong>of</strong> delivering both voice and data communications, these smallerunits may be accommodated within old or previously obsolete buildings in downtown areas.Opportunities are therefore provided for regenerating existing city districts to provide homes forNew Economy companies. An example <strong>of</strong> this is the re-use <strong>of</strong> obsolete <strong>of</strong>fice buildings in WallStreet, New York (Silicon Alley) that have been wired up for high bandwidth communications andnow act as incubator space for dot com companies who occupy the space on a ‘space for equity’basis.The re-use <strong>of</strong> buildings contributes to sustainability in terms <strong>of</strong> avoiding the construction <strong>of</strong> newbuildings (materials and energy) and in the maintenance and support <strong>of</strong> existing communities.Remote working, whether at home or at neighbourhood work centres (café/ club type space) aidssustainability by improving the quality <strong>of</strong> life for individuals (reduced commuting time) and by thereduction <strong>of</strong> energy consumption.

87The increased use <strong>of</strong> shared space has economic implications for the organisations concerned.Buying space on an ‘as needed’ basis rather than by committing to long term leases allowsorganisations to move from a fixed cost structure to a more variable, freeing up capital to beinvested in developing the business rather than just housing the existing business.As well as providing re-use and regeneration opportunities across the whole city a distributed workstrategy also <strong>of</strong>fers opportunities to specific cultural and historic facilities and areas that can attractorganisations who want to use these cultural facilities to reinforce their organisational culture inthe absence <strong>of</strong> their own buildings. Museums, historic castles, art galleries, universities and evenDepartment Stores could all earn extra revenue from providing café or club type services <strong>of</strong>ficecentres.At the level <strong>of</strong> the individual, distributed working allows more control over the use <strong>of</strong> time, withreduced commuting and an ability to match the work environment to the tasks required: to usevisits to the <strong>of</strong>fice to meet with colleagues and work with project teams and use a range <strong>of</strong> otherlocations for concentrated individual work, away from interruptions and distractions.Sharing workspace with other organisations also provides opportunities for interaction with peoplefrom other pr<strong>of</strong>essions which may lead to the development <strong>of</strong> new business ideas or projects aswell as opportunities for career development and networking.4. ConclusionsThe implementation <strong>of</strong> a distributed working strategy will require careful planning involving allareas <strong>of</strong> the business. Critical issues to be considered include:• Costs and benefits• Risks to business delivery• HR policies on remote working• Provision <strong>of</strong> training• Corporate branding• Maintenance <strong>of</strong> community and culture• Knowledge management• Management <strong>of</strong> teams and individuals• Confidentiality• Client perceptions• Provision <strong>of</strong> business servicesThe widespread adoption <strong>of</strong> distributed working strategies is likely to result in a fundamentalshake-up <strong>of</strong> the property procurement chain and major new players are likely to emerge whoare able to merge expertise in workplace design, hotel management and service provision and ITdelivery.

885. SANE future research tasksThe SANE space environment model workspace model will provide the input for the study <strong>of</strong>interaction in physical space and an integrative method will be developed using the ‘CommonGround Approach’ for analysing interactions in the three categories <strong>of</strong> space specified in themodel. Mediated communication in technology-enabled spaces will also be investigated and forthis purpose this approach will be extended by developing methods suitable for investigations <strong>of</strong>interactions in virtual and physical spaces. Combining the workspace model with the ‘CommonGround Approach’ will make it possible to develop experimental methods for evaluating thecongruence <strong>of</strong> the physical and virtual spaces in their role <strong>of</strong> supporting interactions. Theseactivities will result in the development <strong>of</strong> a unified workplace model for the design <strong>of</strong> sustainableworkplaces in a synthesis <strong>of</strong> physical and virtual spaces with the workplace technologies.The project will specify and design a limited number <strong>of</strong> ICT applications, services andinfrastructures for distributed mobile work. In addition the project will specify communicationinterface requirements for the unified framework for workplace design. The unified framework forthe design <strong>of</strong> sustainable workplaces will be then be evaluated through validation exercises in fivespecific user contexts within the consortium membership.Participation in the SANE project is welcomed. Further information can be found at the projectwebsite: www.saneproject.com.References[1] F. Cairncross, The death <strong>of</strong> distance, Orion, Publishing, UK,1997[2] F. Duffy, The New Office. Conran Octopus, London 1997[3] <strong>European</strong> Commission, A <strong>European</strong> Way for the Information Society,Luxembourg;Information Society, 2000[4] <strong>European</strong> Commission, Information Society Technologies: Case Studies <strong>of</strong> the Information Societyand Sustainable Development, IST, May 2000[5] K. Kelly, New rules for the New Economy: 10 Ways the Network Economy is changing Everything,Fourth Estate, UK. 1998[6] L. Kreitzman, The 24 Hour Society, Pr<strong>of</strong>ile Books, London, 1999[7] W.J. Mitchell, E-topia: “urban life, Jim – but not as we know it”. MIT Press, Cambridge, Massachusetts,1999[8] F. Radermacher, Building the Information Society: Labor Pressures, Globalization, and Political Goals <strong>of</strong>Sustainability as Challenges to the Regions in Europe. Paper submitted to the conference: Regions in Touchwith Tomorrow; Tübingen, 20.02.1997[9] J. Rosenoer, et al The Clickable Corporation, Free Press, USA, 1999[10] J, Van Meel Workplace Design: Global or Tribal?, address given to Workplace Forum Conference,19-21 June 1996, London[11] Williams, K. et al Achieving Sustainable Urban Form, E & FN Spon, London & New York, 2000

89User experience with communication technologyTurkka Keinonen, DA,University <strong>of</strong> Art and Design Helsinki UIAH, FinlandIntroductionThere are several new technologies recently introduced or under development that promise a lotfor the future <strong>of</strong> telework. They aim at creating a flexible access to information and servicesindependent <strong>of</strong> their location or nature. However, the user interface design <strong>of</strong> those will face thesome major challenges. These include the creation <strong>of</strong> a contextual and holistic approach to users’needs, content adaptation for mobile terminals and lowering the emerging wireless complexitythreshold.Wireless complexity thresholdCommunication technology manufacturers are introducing a range <strong>of</strong> new wireless features andstandards to enable flexible distributed mobile working – and leisure communication. They improveinformation transfer capabilities <strong>of</strong> mobile devices; enhance the connectivity, synchronization andawareness between terminals - and the users; and create access to versatile services.Information transfer. Wireless information transfer is becoming faster. GSM made voicecommunication wireless. GPRS and 3G technologies will increase the mobile bandwidth in a waythat much <strong>of</strong> the data will be transferred over the air as well.Synchronization: Much <strong>of</strong> the personal and business information will be saved in network servers.This will be necessary for information sharing, security and for storage capacity requirements.However, locally stored data will also be necessary or preferable in some situations, e.g. for fasteraccess or when there is no network connection available. Consequently, the different data storesneed to be synchronized every now and then. SynchML is an industry standard defining a commonprotocol for synchronizing information between different devices. (www.synchml.org)Connectivity. Computers and communication terminals have to be able to connect to each otherand with different peripherals: printers, projectors, car accessories, wearable accessories, etc. Some<strong>of</strong> the connections may be permanent; some created on add hoc bases. Bluetooth technologyallows the wireless local connectivity <strong>of</strong> devices based on low power radio frequency transmission.(www.bluetooth.com)Access: Mobile business and entertainment services can be accessed through normal www orthrough channels that are specifically tailored for mobile access such Wireless Application Protocol(WAP). (www.wapforum.org)

90Awareness: For fluent distributed work it is important to know about others: are the colleaguesaccessible right now and if not when, which kind <strong>of</strong> communication mode the customers prefer,etc. Wireless Village is an industry consortium developing an industry standard for compatibleinstant messaging and presence services between wired and wireless terminals. (www.wirelessvillage.org)GPRS, 3G, SynchML, Bluetooth, WAP, and Wireless Village - it really seems that the progressin communication technology is tackling the challenge <strong>of</strong> distributed mobile work. The promises<strong>of</strong> telework can eventually come true: ecological advantages by reduced commuting, humanadvantages by allowing more liberties to match work with personal life, regional advantages bykeeping more peripheral areas populated.Is there still a problem? There is. From user interface design angle the novel promises seemto turn into a ‘wireless usability threshold’. People who have been completely capable <strong>of</strong>managing even complicated terminal based applications seem to fail with the complexity caused bywireless connectivity and service based solutions. Or when they succeed, the ratio <strong>of</strong> technologymanagement vs. productive work may turn out to be too inefficient. The following kind <strong>of</strong>comments can be read from the usability test report summaries. X in the sentences can be replacedby any <strong>of</strong> the techniques listed above.“ X adds a layer <strong>of</strong> hassle and complexity which made many respondents prefer to go back to using…[present solution] rather than X… Managing multiple X … should be <strong>of</strong>fered as an option onlyto very advanced users.”Why are these new technologies so difficult to use? Why are we facing the complexity thresholdright now? At least a couple <strong>of</strong> reasons can be recognized:User interface density. The user interfaces for the second generation <strong>of</strong> communication products,i.e. GSM terminals, have been designed based on a set <strong>of</strong> functions that were considered enoughand were mature for implementation for a couple <strong>of</strong> years ago in mid 90’s. Now the same userinterfaces are being packed with new and new features. If the user interface solutions are flexibleenough, the novelties can be realized in a manner that is reasonably usable, if we look at thenovelties in isolation. However, simply the amount <strong>of</strong> new features adds additional layers to theuser interface. There will be new menus, new settings, etc. The right ones will be increasinglydifficult to find. The overall complexity increases, the old user interfaces grow too dense.Off-line configuring. Many <strong>of</strong> the new systems aim at automated services and seamless userexperience. In basic use, when everything is set as it needs to be, there should be no problems.But, there is the level <strong>of</strong> configuring the services. The services - and their usage scenarios -are unknown to the manufacturers and they find it difficult to define the appropriate systembehavior. Thus, they <strong>of</strong>ten prefer to leave the decision to the end-user. A priori <strong>of</strong>f-line settings aretypically more difficult for the user to manage than real-time control, where the response from thesystem is immediate perceivable. A classical example <strong>of</strong> the difficulty with the <strong>of</strong>f-line use is theprogramming <strong>of</strong> a VCR. The feedback the system gives (if there is any) is artificial. It is far moredifficult to interpret than interpreting the sound when the cassette really starts to wind.

91Usability compatibility. Terminals, applications, services, and sometimes even service contentscome from different origins. They may be technically compatible, but technical compatibility isdifferent from ‘usability compatibility’. The service may be optimized to a completely differentterminal – or technology – that you have. You need to reconfigure the device for the connection,and perhaps remove the configuration when back in normal use. The features that are coded into thememory <strong>of</strong> a product can be presented in a clear manner in the user interface. The user only needsto browse through the menus and check what there is to choose from. In situations then a serviceis dependent on the cooperation <strong>of</strong> several devices and different communication technologies theoptions cannot be presented to the user. Often the user needs to know in advance what to look for– and where to look it.Adaptation for low UI bandwidthFlexibility is one <strong>of</strong> the most important requirements in developing telecommunication solutionsto support distributed work. There are tasks that one can pack into a briefcase, go wherever oneprefers, complete the tasks and come back. However, in practice everything that will be neededduring a task completion is seldom known in the beginning. New information will be requiredduring the work flow and even the nature <strong>of</strong> that material can be specified only as the need emerges.The results are neither delivered as a single unquestionable package, but different versions needto be sent for reviews, or the actual output is a combination <strong>of</strong> several individual contributions.Further on, even efficient information transfer is not enough to meet the flexibility needs <strong>of</strong> manybusiness tasks. Instead <strong>of</strong> sending and commenting produced documents, the work needs to bedone in closer cooperation. A team <strong>of</strong> experts may be working on the same object each one beingaware <strong>of</strong> what the others are doing. Everybody needs to know about the others for fluent coupling.Another angle to the flexibility <strong>of</strong> working is the location <strong>of</strong> performing the tasks. The traditionalmodel is that people came where the work is. Wired telecommunication allows people to takethe work where they are. They can work where they prefer, as long as they prefer to work in thesame location all the time. The ultimate step along this dimension is that working is essentiallylocation independent. People would be able to work wherever they want – or need - and changetheir preferences.Aiming at the flexibility calls for tools that enable information and context sharing and mobility.With these kinds <strong>of</strong> tools flexibility can be realized on two levels: on one hand they allow individualdifferences between users and pr<strong>of</strong>essions, and on the other hand they let the individuals to choosethe most appropriate and preferable ways <strong>of</strong> work in all situations.What does this kind <strong>of</strong> flexibility mean from the user interface design angle? On one hand theuser needs efficiency: versatile input facilities, large screens and fast connections for usabilityand comfort. On the other hand the user needs to have an access to the same – or compatible –services and data when utilizing the freedom to move. Apparently the physical terminals when onthe move are different from the ones that are optimized for stationary efficiency, and the differentinterfaces have different communication bandwidths. Adapting for low user interface bandwidthis one <strong>of</strong> the most crucial challenges influencing the users’ experiences and their acceptance <strong>of</strong>mobile services.

92On a 17” screen the user is able to see dozens <strong>of</strong> interactive items. There is a lot <strong>of</strong> stuff on thescreen, but the items that a user needs most <strong>of</strong>ten, she is able to pick up among the rest easy enough.The s<strong>of</strong>tware manufacturer or service provider needs to provide a set <strong>of</strong> features, show them all andlet the big screen and the user herself select.With a compact portable user interface one can present only few items at a time. The users do nothave the liberty to hit the option they want straight away, but they need to browse the options in theorder they have been presented. So, the designers need to know, in addition to what kind <strong>of</strong> featuresto provide, the most likely and most preferred next few functions in all the main usage situations.It is possible to provide sufficiently easy access to a couple <strong>of</strong> options, but if the user is repeatedlyforced to browse to a function that designers expect is the 17th most likely selection, the user willbe frustrated. In a desktop interface with 40 icons on the sight the user wouldn’t even notice themanufacturer’s mistake.Holistic user comprehensionThe designers in the field <strong>of</strong> information technology are, after 20 years <strong>of</strong> experience with desktopcomputing, capable <strong>of</strong> making isolated systems and tasks relatively usable. There is the tradition<strong>of</strong> usability with its standards (ISO 9241-11) and a set <strong>of</strong> established methods.However, the mobility and domestification <strong>of</strong> information and communication technologies arechallenging the old task centered usability paradigm. Instead <strong>of</strong> being only something that weuse for task completion, communication technologies have become something that we live with.Telework, when becoming increasingly common, continues the trend <strong>of</strong> taking technologies out <strong>of</strong>the <strong>of</strong>fice to where people live, to their everyday life. The user has stepped out from a lonely controlroom or an air-conditioned <strong>of</strong>fice to the open space where she wanders around facing the physicalworld and people living in it.The usage <strong>of</strong> the technology cannot be separated from the rest <strong>of</strong> peoples’ lives and put under amicroscope as an isolated object. The work is part <strong>of</strong> live and the tools are a part <strong>of</strong> environments<strong>of</strong> their owners. Task centrality, so well articulated and mastered by usability research, stops beingthe only relevant approach to human centered design <strong>of</strong> information technologies. Living withcommunication technology, instead <strong>of</strong> just using, introduces a diversity <strong>of</strong> subjective, emotional,pleasure and identity based criteria. The user with her lifestyles and preferences needs to be inharmony with the products she has around. There is a tradition <strong>of</strong> computing associated withdevotion, skills, pr<strong>of</strong>essionalism and the other tradition <strong>of</strong> plug-and-play idiot-pro<strong>of</strong> consumerdurables. New telework solutions need to be linked to the traditions that match with the values <strong>of</strong>the users.The designers <strong>of</strong> new technologies have never seen the world to which they are designing for. Theexistence <strong>of</strong> novel technologies changes the situation where they are used compared to the onebefore, and the use changes the products. So, understanding users means understanding how theychange as the society around them changes in general, and in specific how they change throughinteraction with the products that are introduced.

93A teleworker is an information-processing unit accomplishing tasks; an actor in varying physicaland social contexts; a consumer with a lifestyle; an interpreter <strong>of</strong> socially constructed meanings; anobject and an initiator <strong>of</strong> continuous change. When taking the work home, or to a mobile context,the scope <strong>of</strong> issues influencing the acceptance <strong>of</strong> the technologies gets wider. There is a need fornew a new kind <strong>of</strong> holistic user centered approach; there is a need for contextual understanding;there is a major methodological challenge.ConclusionsTechnological development enables flexible ways <strong>of</strong> distributed working independent <strong>of</strong> thelocation <strong>of</strong> the team members and the nature <strong>of</strong> the work. However, the user interface <strong>of</strong> thesetechnologies is still to be defined. Contextual and holistic approach to users, content adaptation fordifferent terminals and lowering the complexity threshold <strong>of</strong> wireless services and connectivity areamong the most crucial issues in developing acceptable communication tools for telework – andteleleisure.

95PARALLEL SESSION PRESENTATIONSI Global dimensions <strong>of</strong> the knowledge economy

96Ethics in Business – VIP ProjectVIP- Voluntary Industrial Code <strong>of</strong> Practice for IST–enabled Cross-border Work ArrangementsWalter Paavonen, Director, Paavonen Consulting Ltd, Sweden1. Developing a code to facilitate the improvement <strong>of</strong> business ethicsInformation Society Technologies (IST) change very rapidly the map <strong>of</strong> business activities andwork. Enterprises and work can be organised in new ways. Company entities and workplaces canbe located independently <strong>of</strong> time zones and distances - implying access to new markets and a newplatform for economic growth, but also work across national borders and confrontation betweendifferent value systems and conflicting interestsInformation technology can be used for unfair exploitation <strong>of</strong> global resources, but it facilitates alsothe shaping <strong>of</strong> the ‘new world’ towards more sustainable solutions, to combat unfair competitionand to distribute the potential benefits <strong>of</strong> the Information Society to many recipients. The challengefor the Information Society is to take advantage <strong>of</strong> the potentials, but avoid threatening risks.In principle, there are three main methods to build a common platform for the development <strong>of</strong>Global Trade and Global work division towards a fair and balanced Global Information Society:• Multilateral legislation• Multilateral agreements• Voluntary industrial commitments - a code <strong>of</strong> practice based on ethical considerationsMultilateral legislation and agreements are complicated and take normally very long time toestablish, if at all possible. In contrast to legislation and formal agreements, voluntary agreementshave several major advantages; they are speedier, more flexible and allow the trial <strong>of</strong> a widervariety <strong>of</strong> options. Voluntary codes <strong>of</strong> practice, which are articulated and approved by the industrialactors themselves, could therefore be efficient alternatives and complements to existing agreementsand multilateral regulations.According to recent research, new information technology, especially the Internet, will narrowthe gap between highly-industrialized countries and developing countries. The technology enablesfaster flows <strong>of</strong> information and wider exchange <strong>of</strong> knowledge than ever before. It tempts tointroduce transparency to business and work life conditions, implying increased awareness <strong>of</strong>differences and increasing demand on equalization.

972. The set <strong>of</strong> VIP objectives are:• To clarify the essence <strong>of</strong> business ethics and conduct a dialogue on corporate responsibilitiesamong VIP partners and VIP industrial participants.• To provide a comprehensive overview and a systematic review <strong>of</strong> the relevance and impact <strong>of</strong>existing conventions (legislation, agreements, declarations ) and codes <strong>of</strong> conduct applicable forinternational business and work across national borders.• To develop a database and assessment tool – accessible via Internet - based on survey data andfuzzy logic methodology that facilitates stimulation, control and analysis <strong>of</strong> consensus buildingprocesses• To suggest an ethical code for work performed across national borders. This is made in dialoguewith large international companies• To obtain endorsement <strong>of</strong> the VIP-Code by 100 international companies which also declarethemselves willing to adopt the code for their international operations, publicly demonstratedby prototyping application <strong>of</strong> the VIP Self-Assessment Tool (VIP-SAT).3. Technical approachThe overall VIP methodology is a combination <strong>of</strong> classic scientific methods and approaches -involving descriptive, analytic, explanatory and normative elements - and development work,which is carried out in co-operation with industrial partners and participants.The research activities consist <strong>of</strong> two parts. The first is to describe the nature <strong>of</strong> ethics in general,to identify value systems and clarify linkages to business ethics and strategies. To promote theseaims the methodology is in the first place literary surveys, but also dialogues with VIP industrialparticipants. The work will result in a comprehensive discussion <strong>of</strong> the topic and provide aknowledge base, which will facilitate the VIP Code formulation process.The second part <strong>of</strong> the research work includes systematic scanning <strong>of</strong> existing codes <strong>of</strong> conduct,ethical codes and multilateral agreements on human rights, work conditions, environmentprotection, international business relations and information technology use and transfer. In addition,this section includes development <strong>of</strong> a tool for analysis and consensus building - based on casestudies, sociological research and fuzzy logic-methodology.Parallel to the research activities, development work is carried out on VIP code formulation,expansion <strong>of</strong> the industrial participants group and on concertation and dissemination <strong>of</strong> VIPprocesses and outcomes.The Voluntary Industrial Code <strong>of</strong> Practice – a quality label for IST-enabled cross-border workarrangements – is aimed at:• securing a fair division <strong>of</strong> Information Society economic benefits between relocating/establishingorganisation and host country/region• improving working conditions and quality <strong>of</strong> life in host countries/regions• stimulating the development <strong>of</strong> global trade <strong>of</strong> services and contributing to fair global competition• improving competitiveness <strong>of</strong> <strong>European</strong> enterprises through ethical considerations whenapproaching the global marketplace

984. Achivements so far:• Report: “Theoretical essence <strong>of</strong> business ethics – Classification <strong>of</strong> approaches, cultural andbusiness environmental impacts on ethics.” Authors: Juhani Pekkola and Kimmo Pekkola,UNEXT• Report: “Ethics, Business Ethics and the Role <strong>of</strong> Codes <strong>of</strong> Conduct for IST-enabled CrossborderWork Arrangements” .Authors: Fritz Betz, Christa Maad and Maria Schwartz-Wölzl• About 240 company codes are collected and registered in the VIP database. The databasebecame externally available in December via the UnoMondo web-site.• A Draft VIP Code <strong>of</strong> Practice has been formulated :5. The Code <strong>of</strong> Practice for Global e-Work(Work Version 2)Information and communication technologies have brought people in dispersed organisation muchcloser to each other. This ‘virtual proximity’ <strong>of</strong>fers new opportunities for collaboration betweenknowledge workers, but it also challenges traditional organisational thinking, management stylesand manners <strong>of</strong> collaboration. To achieve full advantage <strong>of</strong> the technologies in work and business,there is a need to rethink a range <strong>of</strong> non-technical aspects - ethical as well as functional.The VIP project is initiated by <strong>European</strong> multinationals and supported by the <strong>European</strong>Commission. The rationale behind the initiative is that a voluntary code <strong>of</strong> practice – based onethical considerations – can help multinational enterprises and their networks <strong>of</strong> entities to improvetheir international operations. At the same time, a code <strong>of</strong> practice can foster responsible andforesighted conduct towards e-working employees and the societies in which they operate.The Code <strong>of</strong> Practice for global e-Work is uniqueThe Code is unique as it addresses aspects specific to e-work across national borders. Formulatedby multinational enterprises acting on the global markets, the Code focuses on aspects relatedto e-work conditions, data protection and security, work technologies and tools, contribution toprogress in the countries <strong>of</strong> operation, and environmental considerations.Value added to enterprises:Complementary to legislation and general corporate policies, the code proposed by this initiativeprovides to the enterprise a management tool which contributes to:• Improved business performance• Improved attractiveness to recruit the most qualified people• Improved exchange <strong>of</strong> global knowledge and smoother cooperation between dispersed entities• Reduced risk for conflicts with stakeholders.• Enhanced public relations and company reputation• Support to internal initiatives addressing international operations and technology use.

99What is global e-Work?E-work is work, which is carried out remotely from another location, country or continent. Distancebridging facilitators for e-work are a variety <strong>of</strong> information and communication technologies,such as data transmission facilities, e-mail, video/audio conferencing, Internet/Intranet/Extranetetc. Work involving two or several countries is here called global e-work. E-work can be doneby individuals, cooperating company units, work groups or geographically dispersed work teams(virtual teams).Who does the Code concern?Users and endorsers <strong>of</strong> the Code are multinational companies and the addressees are policy anddecision makers at corporate level and at entities/work sites abroad. The values expressed in thiscode <strong>of</strong> conduct are also applicable to suppliers, subcontractors and other local partners.Ethical and value platform <strong>of</strong> the Code:Corporate Social Responsibility (CSR) is considered as general framework <strong>of</strong> the developmentand implementation <strong>of</strong> the Code <strong>of</strong> Practice for Global e-work. Guiding principles <strong>of</strong> the Codeare equal opportunities for e-workers, understanding for technical opportunities and limitations,respect for cultural diversities, environmental care and good corporate citizenship towards thesocieties in which the company operate. National and international regulations have been regardedas a mandatory minimum for all modes <strong>of</strong> work – including global e-work. Such internationalframeworks are:• United Nations Declaration <strong>of</strong> Human Rights,• ILO conventions,• ILO Tripartie Declaration <strong>of</strong> Principles concerning Multinational Enterprises and SocialPolicy,• OECD Guidelines for Multinational Enterprises,• Kyoto Protocol on climate change,• EU directivesThe statements <strong>of</strong> these guidelines are not repeated in the Code, which rather focus on extension,adjustment and application <strong>of</strong> these general statements to global e-work. Also other legalframeworks, guidelines, principles, codes and reporting standards have been reviewed and takeninto account when drafting the Code proposed by the VIP initiative.e-Work Conditions (Employment standards and Work and wellbeing)Equal opportunities and equal treatment <strong>of</strong> all employees are essential for knowledge basede-work between dispersed entities. Therefore, enterprises should pay particular attention to thecircumstances typical for work across distances, different time zones, working life cultures andlanguage areas. In order to achieve fair standards regarding quality <strong>of</strong> work life and work conditionsacross the company, enterprises should accept the necessity to go beyond legal requirements.Enterprises should:• Make clear the legal status <strong>of</strong> the e-workers and communicate to all relevant parties about thelegal and regulatory frameworks in force.• Harmonize work conditions between co-operating entities and strive for fairness and transparencyregarding employment contracts.

100• Combat any form <strong>of</strong> discrimination against e-workers regarding management methods , accessto information and integrity and foster the inclusion <strong>of</strong> remote employees into the corporatecommunity.• In addition to traditional occupational health measures, pay special attention to risks related to‘cross-border stress’ and provide to the e-workers opportunities to participate and influencetheir work.• Respect cultural diversity among e-workers and allow employees to influence aspects vital tothe individual’s work/life balance and quality <strong>of</strong> life.Data protection, security and integrityThe risks for unauthorized data access, and threats concerning the integrity <strong>of</strong> the individual,increase in businesses and work environments, where an essential part <strong>of</strong> the information flowis transmitted by electronic media. Application <strong>of</strong> <strong>European</strong> Union data protection directivecompany-wide can be a preventing measure to start from.Enterprises should:• Prevent fraud/crime and threats by providing clear directions on information handling andinformation dissemination.• Ensure that the communication facilities and information systems used by individuals andentities are technically and organisationally secured in order to protect commercial, intellectualand innovation assets.• Establish rules <strong>of</strong> conduct for the use <strong>of</strong> technology such as telephony, data transmissionfacilities, e-mail, video/audio conferencing, Internet/Intranet/Extranet etc in order to safeguardintegrity and obtain best possible working climate.• Protect the integrity <strong>of</strong> the employees by introducing strict company-wide rules for internalprocessing and external dissemination <strong>of</strong> personal data.• Specify clear standards and obtain fair solutions regarding employees’ Intellectual PropertyRights on outcomes <strong>of</strong> their work.Work technologies and toolsEqual opportunities and compatible working environments and tools across the organisation arekey elements for efficient cooperation between dispersed entities. Other crucial requirements aretechnical reliability, employee involvement, information access and training opportunities.Enterprises should:• Adopt user-friendly, compatible and reliable technologies, and ensure that all work sites matchcorporate technology standards.• Invest in interactive global working environments and tools in order to enrich cooperation.• Provide staff training in order to maintain technical skills for efficient co-operation amonggeographically dispersed workers.• Introduce technical support facilities that can secure local efficiency and safe global cooperationacross borders.• Adopt corporate policies that facilitate information access and encourage broad scale globalinformation exchange and information sharing.

101Contribution to progress in the countries <strong>of</strong> operationGood corporate citizenship implies responsible corporate conduct and partnership with thecommunities. E-working entities abroad can contribute to knowledge dissemination and technologytransfer and to economic, societal and social development.Enterprises should:• Contribute - when ever possible and needed - to the technological development and knowledgebuilding in the countries <strong>of</strong> operation.• Uphold good and responsible business practices and encourage business partners such assuppliers and contractors to do the same.• Support local business development and contribute to economic and societal processes in thecountries <strong>of</strong> operation.• In case <strong>of</strong> discontinuing activities take measures to minimize negative effects to the localcommunity.• Provide open and transparent information to employees and all other relevant stakeholders onthe enterprise’s performance.Environmental controlThe environment protection potentials <strong>of</strong>fered by information and communication technologies arenot fully exploited.Enterprises and their entities abroad should strive to improve their environmental performance inthis respect and combat related rebound effects by adopting appropriate management methods.Enterprises should:• Take actions to minimise environmental impacts associated with e-work such as energy-use,disposal <strong>of</strong> electronic equipment and paper use and arrange the work site in a way that providesa good example on well thought-out environmental control.• Minimise commuting and business trips between entities by exploring the potentials <strong>of</strong>information and communication technologies.• Ensure that the same environmental standards are applied across all locations/entities.• Introduce environmental indicators and measuring methods for efficient local environmentalperformance.• Provide open and transparent information to local authorities, to employees and to the generalpublic on the entity’s environmental policies and performance.6. Partner organisations:• Ericsson Radio Systems AB, Sweden (Coordinator)• AstraZeneca AB, Sweden.• Sonera OY, Finland• Centrum for Social Innovation, Austria• Paavonen Consulting AB, Sweden• UNEXT OY, Finland

102Short summaries <strong>of</strong> the other presentations in the sessionGlobal Dimensions <strong>of</strong> the knowledge economyJosef Hochgerner, Centre for Social Innovation, AustriaPresentators and discussants were asked to focus on knowledge that could support “transfer <strong>of</strong>action“ rather than a mere transfer <strong>of</strong> information. Ultimately the aim was to look at the globaldimensions <strong>of</strong> the knowledge economy in order to provide conclusions that may facilitate theobjectives <strong>of</strong> the Lisbon Summit (i.e. most competitive economy, more and better jobs, sustainabledevelopment).Analysis and debate also should take into account some issues which play a major role incontemporary thinking on telework, eWork and the development <strong>of</strong> the knowledge economy:• The pledge for effective partnerships among stakeholders• The opportunity <strong>of</strong> bringing together the dynamics <strong>of</strong> technology, sustainable development andnew business strategies towards corporate social responsibility• The discussions and negotiations going on concerning agreements between the Social Partners• The strategic conclusion in the Commissioner’s Anna Diamantopoulou Keynote Address:“Good practices must become normal practices“Against this background the four presentations are being summarised as follows here very briefly,each under the pragmatic headers <strong>of</strong> two questions:(1) What is new when we think <strong>of</strong>“global dimensions <strong>of</strong> the knowledge economy“?(2) What can be done in support <strong>of</strong> the Lisbon process?Jonathan Cave, RAND Europe, Netherlands“Old Bits in New Bytes: Implications <strong>of</strong> the “New“ Economy <strong>of</strong> Innovation, Knowledge andBelief for Working Life“This contribution, based on research and results drawn from the IST-project “TERRA2000“, dealtin a very broad sense with implications <strong>of</strong> the “new“ economy on standards and requirements <strong>of</strong>modern days‘ working life.What is new?Emerging patterns <strong>of</strong> threats and opportunities regarding the social fabric, the economy as such,and the environment.

103Most relevant: The unprecedented “world value“ <strong>of</strong> skills, that should be studied more closelybecause <strong>of</strong> its far reaching impact on migration, brain drain and some contradictory societalrepercussions.What can be done?EU enlargement policies could make use <strong>of</strong> the window <strong>of</strong> opportunity that is available ifappropriate strategic decisions were taken in respect to existing skills potentials in accessioncountries.Jari Närhi, Solution Product Manager IBSG Cisco Systems, Finland“e-Working – A Challenge to an Organisation’s Readiness“In his presentation Mr. Närhi focused on eLearning as a very important part <strong>of</strong> eWork and identifiededucation and the internet as the most effective “equalisers“ in life.What is new?Critical changes are going on concerning the internal organisation and the formation <strong>of</strong> networksamong corporations. These pose new requirements to leadership as executives are confrontedwith challenges <strong>of</strong> new technologies, extended competencies (<strong>of</strong> eWorkers), and new principles <strong>of</strong>governance (how to run the company).What can be done?Corporate organisations need „cultural management“ and know-how about how people behave inthe information society. As indispensable means all channels <strong>of</strong> communication (email, voicemail,internet etc,) should be used carefully.Miguel Reynolds Brandão, Teleman, Portugal“ADPT’s Contribution to the development <strong>of</strong> the Knowledge Economy“The global dimension <strong>of</strong> this presentation was very obvious in a geographical and culturalperspective: Mr. Reynolds informed the audience about measures and developments concerningeWork dissemination in the world‘s community <strong>of</strong> 200 Mio. people speaking Portuguese.What is new?Again this contribution pointed to the fact that the notion <strong>of</strong> culture is becoming more important.All regions and their populations increasingly are living in one world (“unomondo“). However,despite networks and growing together there are threats <strong>of</strong> different speed concerning technologyusage and fragmented inclusion in the global knowledge economy.What can be done?Building one world can be achieved only if new Corporate Social Responsibility and StakeholderInvolvement leads to extended “ownership“ <strong>of</strong> economic processes: This is not about the classicalnotion <strong>of</strong> ownership <strong>of</strong> means <strong>of</strong> production; as a matter <strong>of</strong> fact, eWorkers may become “owners“<strong>of</strong> the results <strong>of</strong> their work and acquire a new form <strong>of</strong> attachment to the impacts (societally,economically and environmentally) <strong>of</strong> their work.

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105PARALLEL SESSION PRESENTATIONSII Technologies for work and business

106Siemens case: Knowledge sharing by videonegotiationPasi Rajander, Siemens Companies, FinlandPrefaceThe objective <strong>of</strong> the PC-Video project carried out by Siemens Osakeyhtiö in Finland was toconduct a feasibility study <strong>of</strong> how video negotiation and pc-video negotiation equipment could beused in the realization <strong>of</strong> telework and e-learning. In the following, I shall cover the findings <strong>of</strong> thisproject.Over 50% <strong>of</strong> the personnel <strong>of</strong> Siemens Osakeyhtiö have a telework contract <strong>of</strong> employment in force.Corporate business is divided into different business units and it is carried out in different places <strong>of</strong>business and subsidiaries in Finland and in the Baltic countries. The multinational organisationalstructure presents a challenge for the flow <strong>of</strong> information both within the organisation itself and inrelation to its customers.Despite the technical background, the focus is on assessing work structures and the cooperation <strong>of</strong>people, as well as surveying future possibilities.From Telework to e-WorkIn this context, telework is understood in its broadest sense. Consequently, a more appropriate termfor what by tradition has been called telework would be e-work. The changes that have taken placeregarding work and work structures have affected companies and their employees both in terms <strong>of</strong>the global market and globalisation and mobility on a personal level, which has allowed work tobecome less tied to a specific time and place.When we talk about e-work, we talk about how to utilize new technology. However, it is only oneaspect. Changing technology also changes the operational work, as well as the processes and themodes <strong>of</strong> action. When we think about e-work, words like networking, knowledge management,knowledge sharing, flexibility and mobility are the key words. One <strong>of</strong> the most important issues ishow to gain access to information regardless <strong>of</strong> time and place.

107The Siemens CaseSiemens Finland started telework in 1994 as part <strong>of</strong> the “Telework for Change” project. At thetime, we wanted to survey the concrete objectives focusing on questions such as how to improvecustomer service and customer satisfaction.However, our definition <strong>of</strong> telework has changed during the last few years. At first, it meantworking at home. Now it refers to the type <strong>of</strong> work that is done partially or completely somewhereelse than in an <strong>of</strong>fice building. Thus, the central question is how to communicate with the existing,documented information and one’s co-workers. For this purpose, video negotiation and pc-videonegotiation <strong>of</strong>fer one possibility to develop e-work.What we concentrated on in our pc-video project was studying combining real time video, audioand data with information sharing and e-work.During our project, we found the key question to be how to motivate and integrate people.Regardless <strong>of</strong> technical development and the numerous possibilities it has made available, thePC-Video project underlined some indisputable benefits <strong>of</strong> e-work, the most obvious <strong>of</strong> whichare:• Reduced travel costs.• E-learning; reduced training costs and the possibility to focus on studying new skills andacquiring knowledge when it is best for you.• Time saving.• Flexibility; working anywhere, anytime. There are also certain benefits in connecting work andfamily time.• More efficient connections with our customers.• Real-time information sharing, virtual teams, and better mobility.The PC-Video project also pointed out some specific challenges we face:• Fast technical development and the need for up-to-date technical skills. In-service training isrequired for any change to be efficient.• Unsteadiness <strong>of</strong> the lines or equipment used. Fast technical development also brings about acertain amount <strong>of</strong> uncertainty when using latest technology.• Cultural challenges that can be divided into:- Cultural differences, language, how we act, react, and so on. It is even more crucial to be aware<strong>of</strong> them when talking about virtual connections between people from different cultures.- Changes in organizational culture, which represents yet another challenge. When we talk aboute-work, we are not talking about people only; it concerns the whole organization, its processes,and its way <strong>of</strong> managing its personnel. We noticed that even though there has been clearevidence <strong>of</strong> the benefits <strong>of</strong> using these systems, cultural changes within the organisation havebeen rather slow, or at least slower than we presumed.ConclusionUsing new technical systems and taking part in the e-work development in the private sector is notonly a benefit but also a necessity. Information management is today’s way <strong>of</strong> doing business ande-work is one very concrete element <strong>of</strong> it.

108Are you ready for tomorrow?Teleware`s solution for successful trainingPäivi Piironen, Director, Mobile Technologies, TelewareInternationalisation, deregulation, consolidation, and convergence have been the driving forces forchange in the industrial environment and they have boosted up the rapid technology development.The rapid development in technology over the last few years has enabled a new way <strong>of</strong> runningorganizations and to do business. Today we are living and operating in a new business environmentand we are adapting new ways <strong>of</strong> working and even new ways <strong>of</strong> living. Mobility providesmore freedom <strong>of</strong> choice for both work and leisure. Mobility as one <strong>of</strong> the major trends willaffect the ways <strong>of</strong> working by providing a freedom <strong>of</strong> choice to work where needed/wanted andwhen needed/wanted. The work can be performed by using the proper network and terminal.Digitalisation, IP, next generation mobile networks, and network convergence are going to help usin the transition to more virtual organizations.The latest technology developments have enabled many new business possibilities but it hasalso created quite many challenges. Technology is getting more complicated, the number <strong>of</strong>different technological choices is increasing, and at the same time there is a huge amount availableinformation. We are living with a challenge <strong>of</strong> keeping up with the knowledge and skills. We havea constant need for skills development and learning has become a lifelong process. For today’sworker it’s a must to keep developing his or her skills. The earlier benefit has become a key forsurvival. At the same time it’s critical from the business point <strong>of</strong> view to be able to find the rightinformation, find it at right time, and understand it. Most <strong>of</strong> all we must be able to sort the mostrelevant information out from the less important one and know how to utilize this information. Thefact is that information is getting old with increasing speed and today’s working environment hasto be able to manage with keeping up with this speed.What does it takes to succeed in tomorrow’s business environment?In the tightening competition the worse thing that one can do is do nothing. The winners <strong>of</strong> thefuture will know their customers and they will also know how to take care <strong>of</strong> them. The winningcompanies are getting into this point by constant development and learning. They will also have theright skills to listen and observe the customers, competitors and environment around them. Thesecompanies have the capability to use this information – not just collect it. An other advantage <strong>of</strong> thesuccessful companies is that they have the capability to succeed in change processes. It’s importantto be a dynamic adaptor in the fast changing business environment. These companies also manageeffective communication both to their customers and employees. The success also requires the rightpartners to do the business with.

109Challenges <strong>of</strong> virtual organizationsIt is challenging to move closer to virtual e-working organizations and towards more mobile way<strong>of</strong> working. These challenges are very much similar in the nature with the challenges in moretraditional organizations. These challenges are, for example: managing virtual workers, givingthem the right job descriptions, finding the right ways <strong>of</strong> measuring the job performance, trainingand competence development. In the new way <strong>of</strong> working the questions related to presence <strong>of</strong>employees get somewhat more complicated. The challenge with presence <strong>of</strong> employees is to findout the ways <strong>of</strong> getting the employees to feel that they are present even though they are notco-located. The success in an e-working organization requires the right technology and availability<strong>of</strong> this technology. Knowledge management and security issues are also important. Most <strong>of</strong> all thesuccess requires right people with right skills.Needs to renew training methodologySince the new technology is complex and develops rapidly, and as the use <strong>of</strong> new technologyspreads day by day, experts in the front line are being required at an ever-increasing pace and thedemand for training is consequently subject to continuous growth. Despite <strong>of</strong> the slow down onthe market, the businesses are still looking for skilled labour. The situation has levelled down insome parts <strong>of</strong> the worlds but according to the recent study by IDC, there will be 31 % shortage forskilled labour on the field <strong>of</strong> IT and telecom by year 2004. This is due to aging <strong>of</strong> the populationand fewer new workforce entrants. The survival in the tomorrow’s environment requires lifelonglearning. Resent and coming developments in technology are enabling the tools for in e-workingenvironment.One <strong>of</strong> the challenges <strong>of</strong> tomorrow’s organization is to continuously develop the skills andcompetence <strong>of</strong> its employers and customers. Information is getting old with increasing speed andthis forces us to learn faster and more. In dynamically changing organisations the tasks and jobrequirements change rapidly and in order to succeed in keeping up with these changes in theworking environment, a broad knowledge and fast adaptation <strong>of</strong> processes is essential. Leaning fastand leaning the right things is important. Survival requires constant learning.On <strong>of</strong> the major issues in tomorrow’s organisation is cost efficiency. This is also valid with trainingand learning. It’s important to have right training, take the right course, and have the training atright time and place. It’s also very important to ensure that training happens at right level and withright depth. Learning cannot be taken anymore as a reward from a good work, it’s more matter <strong>of</strong>survival.

110Teleware solution to successful trainingBased on a long and careful studying, development, and trial phase Teleware has developedsolutions to meet up the training needs <strong>of</strong> tomorrows e-working business society. We <strong>of</strong>fer trainingon latest IT-technologies. Today’s business strength might not be enough for tomorrow. Successrequires quick reactions and success in changes needs commitment from the upper management.E-Learning is known for being a good solution for horizontal knowledge distribution and it hasbeen typically used for training experts. In today’s organization there are people with manydifferent job functions and many <strong>of</strong> them need technical training, but at different technical level.Teleware’s training solution works for different target groups ranging from upper management tocustomers, because it’s capable <strong>of</strong> pinpointing the training need <strong>of</strong> each <strong>of</strong> the target groups.The Teleware training solution is based on active learning and we rely on learning in cycles.The learning is tied with constant measuring and monitoring <strong>of</strong> the learning success. In trainingwe use different alternatives: e-Learning, combined e-Learning and classroom training, and pureclassroom training. For virtual and mobile working environments the combination training hasproven to be successful. The benefit for the employer is that he does not lose the employee tocourses for weeks and at same time the employee does not have to worry about the possibleincrease in workload. The employee has the opportunity to schedule the studying based on hisor her job situation. Both parties benefit from the Teleware’s training solution, which also savesmoney and increases the knowledge and skills level at the same time.In our combination training we combine the benefits <strong>of</strong> e-Learning with the advantages <strong>of</strong>classroom training. There are different checkpoints during the course to ensure the leaning process.The group <strong>of</strong> people attending to a certain course will form a community and have its electricalchatting sessions and mentored sessions to improve and motivate the learning process.The base <strong>of</strong> our training is measuring not only the learning event itself but also the other factorsaffecting organization itself. Teleware’s training solutions is based on measuring the factorslike customers, markets, competitors, and staff competence. These values together with clientcompany’s vision and strategy are then used for designing the training. This provides accuratetraining for right people and with right technical depth. During the training process the progressand effectiveness <strong>of</strong> the learning process is measured constantly. We make it by having reviewpoints and questions at the end <strong>of</strong> each study section. In addition <strong>of</strong> measuring the success <strong>of</strong> alearning event with final test, the effects <strong>of</strong> the training to the actual work are measured against thepreviously mentioned factors. With our customers we have proven that we can achieve good andfast learning result.

111Teleware’s combination training proceeds in major 7 steps:• Pre-test: During this phase the competence level is measured (e-Learning environment). In somecases a large-scale competence mapping is performed.• Pre-study: Students will go through the pre-study material for the course (e-Learning).• Pre-made questions for a classroom-training day: students will prepare questions and/or doadvance homework for the classroom day.• Intensive classroom training day• Advanced studies (e-Learning)• Review and taking the knowledge to usage• Final test: With final test the knowledge level and improvements in the knowledge level duringthe training period are measured.A real life course can be combined from a set <strong>of</strong> these steps and some <strong>of</strong> the steps can be repeatedin cycles. Our results show that with right combination <strong>of</strong> studying and reviewing we end upinto right combination <strong>of</strong> learning events and this ensures a successful training event. With thepre-study process we ensure a certain basic knowledge level for each student and also drive andmotivate him or her into the subject. With the Teleware way <strong>of</strong> training we guarantee that thelearning process is fast and effective. By having a right course with right content and depth weensure that learning is cost efficient and rightly timed with the need <strong>of</strong> your organization.The world is evolving at an exciting speed. Teleware is ready for tomorrows training needs andhas proven results for successful training. Our knowledge and technology is here to help youto adjust to the increasing need for keeping your employers and customers updated with thelatest technological information. Together we can make the tomorrows challenges to turn for yourbenefit.

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113PARALLEL SESSION PRESENTATIONSIII e-work in Central and Eastern Europe

114Telework - an opportunity for regional developmentEdvins Karnitis, Pr<strong>of</strong>essor, Assistant to the Minister <strong>of</strong> Economy, LatviaAn integrated economic, political and social strategy 1 for sustainable development <strong>of</strong> Latviaduring next 20-30 years has been elaborated in order to achieve the living standards <strong>of</strong> highlydeveloped countries. Co-ordinated activities are envisaged for unified development trends fornational economy 2 , governance, education and other sectors that are significant for the State andsocial security, that make use <strong>of</strong> Latvia’s competitive advantages.Development <strong>of</strong> all regions as a multifunctional, diverse, balanced and sustained process, includingthe employment diversification adhering to the traditions and mentality is considered a principalcomponent <strong>of</strong> the process.The regional development in strategic documents is defined as a process <strong>of</strong> positive economic,social, environmental, cultural changes in the respective territory in order to promote the growth<strong>of</strong> general welfare level, security and living quality for the society. In Latvia there are noterritories without opportunities for development, but the regional development is not balancedand significant socio-economic differences between regions exist – environmental and culturalnuances, differences in traditions, economic activities, employment, income level 3 .Number <strong>of</strong> territories has been defined as extra supported areas according to specific criteria.Several rural territories have been the long-time lagging regions, the support policy shall be givenover to the respective region assistance. Functioning and development <strong>of</strong> the borderland is morecomplicated – special security status, outskirts effect and in the same time improved opportunitiesfor cross border cooperation. Economic development <strong>of</strong> protected areas should be coordinated withsystematical maintenance <strong>of</strong> the protected biotypes and territories.Hence territorial aspect and regional sectoral structural policy become an important component <strong>of</strong>the integrated state development strategy in order to establish advantageous and equal living andemployment conditions in all Latvian regions and to reduce undesirable regional differences.Baselines <strong>of</strong> the regional strategy include diversification <strong>of</strong> economy in the countryside, citieswill become crystallization centres for development <strong>of</strong> the new economy in the province. Formation<strong>of</strong> the knowledge hubs (university/college, technological/business/industrial centre, informationcentre/library) will be stimulated in cities as one <strong>of</strong> essential factors for development. But alsobusiness activities in the traditional branches (agriculture, as well as food, wood and light industry),that are modernized on advanced technological base, should be supported in all towns. At the sametime various forms <strong>of</strong> telework will become ordinary in the rural territories.1 http://www2.acadlib.lv/grey/valstsparvalde.htm2 Strategy for Long-term Economic Development (in Latvian). http://www.lem.gov.lv3 Macroeconomic Potrait <strong>of</strong> Latvia´s Regions. Central Statistical Bureau <strong>of</strong> Latvia. Riga, 2000.

115Towns should regain their another natural function – to be also the surrounding rural territorydevelopment centres providing mutual complement, diversified production, availability <strong>of</strong> services.Towns will play an important role in the establishment <strong>of</strong> rural infrastructure, support <strong>of</strong> business.They will also become rural intellectual centres providing all surrounding population the properopportunities to education, knowledge development, information services. Regional towns willimprove significantly their possibilities to provide the basic social services – health and socialassurance, cultural and recreational events.Telework as a tool for regional development includes many varieties in the context <strong>of</strong> definedstrategy: remote individual and group workplaces, satellite centres and bureaus far away from themain <strong>of</strong>fice, mobile work, public terminals and telecentres providing facilities for businesses andindividuals 4 . It means also a new style <strong>of</strong> work organisation that is based on telecooperation -virtual enterprises, dispersed teamwork, outsourcing services.Really teleworking principles are applicable to various activities that are based on processingand transmission <strong>of</strong> information, it means that we are speaking on typical knowledge workers.Sometimes part <strong>of</strong> these activities is performed in motion – basic indication <strong>of</strong> mobile workers. Inaddition the employee can act as a teleworker all working hours or part <strong>of</strong> time, e.g., several daysa week.Widespread telework will stimulate regional development and benefit society, it will result asopportunities for every individual and business:• creation <strong>of</strong> new and well paid jobs, work opportunities for unemployed or underemployedpeople; development <strong>of</strong> the advanced sector <strong>of</strong> the economy will be supported in province;• population growth in the rural territories by young high educated people; reduction <strong>of</strong> migration(brain drain) to Riga and other cities as well as abroad notwithstanding the increasing mobility<strong>of</strong> population;• diversification <strong>of</strong> economy, ability to combine traditional countryside businesses andopportunities <strong>of</strong> the new economy that will be especially important in the initial period;• increase <strong>of</strong> welfare’s level <strong>of</strong> everybody and thus encouragement <strong>of</strong> sustainable development,the economic and social cohesion <strong>of</strong> society.Hence major task <strong>of</strong> the state is to create necessary preconditions for teleworking, favourableenvironment, motivation for everybody to use opportunities if the individual will choose them.Regions that will provide better environment will enjoy significant advantages. Incentive factorscould be divided in two groups.Factors that are indispensable precondition for telework:• advanced infrastructure, access to telecommunications and data transmission networks as wellas availability <strong>of</strong> Internet services in the whole territory, reliable energy supply, quality <strong>of</strong>energy; for these purposes digitalisation <strong>of</strong> telecommunications network should be finished in2002 5 , national regulatory authority has been established, implementation <strong>of</strong> the universalservice is envisaged in telecommunications and energetics;4 See: A concept for development <strong>of</strong> E-business (in Latvian). http://www.lem.gov.lv5 Socio-economic programme eLatvia. http://www.lem.gov.lv

116• availability <strong>of</strong> all types <strong>of</strong> information (scientific/technical, financial/business, educational/reference etc.) for remote users; there is planned development <strong>of</strong> the library informationnetwork till 2004, libraries will become the major suppliers <strong>of</strong> information in the country, inevery settlement 6 ; the development <strong>of</strong> the electronic and virtual library will ensure fullopportunities to search and to receive local and global information in every library;• high general education and information literacy level, lifelong education, development <strong>of</strong>provincial learning industry; everyone should be able to use information in his/her work and tocreate new knowledge; there are taking place development <strong>of</strong> regional high schools and branches<strong>of</strong> central universities, increasing number <strong>of</strong> enrolled tertiary level students 7 , evaluation <strong>of</strong> thedistance learning, especially for post diploma and further education, for intensive courses andretraining; a number <strong>of</strong> teleeducation programmes in various fields are in operation (e.g., in RigaTechnical University 8 , Vidzeme University College 9 , School <strong>of</strong> Business Administration Turiba 10Riga Study Centre <strong>of</strong> Hagen Distance Education University 11 );• technological/business centres and public terminals – to provide local <strong>of</strong>fice infrastructure,skills development, high performance ICT for businesses and individuals, for people who wishto avoid the cost, time and inconvenience <strong>of</strong> commuting including socialisation aspects <strong>of</strong> workthat may be missed by a fully home based worker; Riga, Olaine, Saldus technological centres 12are in operation, Valmiera Cybercity project 13 is an excellent example <strong>of</strong> complex knowledge hubdevelopment; public terminals program has been started, it envisages connection <strong>of</strong> all libraries,schools, municipalities to Internet and installation <strong>of</strong> public terminals till 2004, a strong attentionwill be paid to the remote and specially supported regions.Additional factors that support telework in relative fields, various on-line services are necessaryfor highly educated knowledge worker, they motivate him for telework and telecooperation, whileliving in rural territories. They enable to reach distant services without physical presence, withoutthem telework is not a reality in practice:• remote financial services, telebanking, Internet/mobile bank for everyday convenient managingfinances, making payments etc. Hansabank 14 and Unibank 15 <strong>of</strong>fers wide range <strong>of</strong> services, creditcards are widely usable, 5400 POSs and 650 ATM’s had been installed in Latvia in the end2000;• public sector services, both for individual and business on federal and municipal levels, e.g.,enrolment in educational institution, participation in democratic governance processes,registration <strong>of</strong> new company, tax and customs declarations, public procurement, etc.; detailednational strategy <strong>of</strong> development <strong>of</strong> public services is drafted 16 ;• teletrade (both B2B and especially B2C) for goods and services, that can be downloadeddirectly on-line as well as delivered by post (1000 post <strong>of</strong>fices in the country as well expressdelivery services are available) or cargo service; in addition to international vendors a lot <strong>of</strong>local companies 17 <strong>of</strong>fer wholesale and retail services;• health related services, consulting for local primary level health care, social securitycontributions, sick list and child allowances; a lot <strong>of</strong> work should be done in these fields.6 http://www2.acadlib.lv/grey/informatikauntelekomunikacijas.htm7 http://www.izm.lv8 http://www2.internet-uni.lv9 http://www.va.lv19 http://www.turiba.lv/dator_talma.htm11 http://www.fernuni-hagen.de12 http://www.innovation.lv13 http://www2.acadlib.lv/grey/informatikauntelekomunikascijas.htm14 http://www.hansabanka.lv15 http://www.unibanka.lv16 Consept for e-governance in Latvia (in Latvian). http://www.jm.gov.lv/ekoncepcija.pdf17 See, e.g., http://www.delfi .lv/directory

117In order to be successful, development strategy must be understandable and acceptable for allsociety, awareness must be created that this strategy benefits everybody, that an opportunity toparticipate in the process is provided to everyone, to each enterprise in every region. Exactly this isthe essence <strong>of</strong> the Socio-economic Programme eLatvia approved by the government.A number <strong>of</strong> risk factors should be taken in account in order to minimize their impact ondissemination <strong>of</strong> the telework:• traditions always are strong, it concerns style <strong>of</strong> work too; Latvians also are quite conservativepeople;• digital divide; people that are not educated, that are not familiar with advanced technologies andprocesses will have very limited participation chances;• self-discipline, high level <strong>of</strong> self-organisation is necessary for teleworker;• due individual work style much more substantial become subjective capability to make decisionswhen traditional communication ties (family, friends, colleagues etc.) have been lost; from otherhand it does not mean full independence in decision making;• philosophy <strong>of</strong> management, relationships between managers – employees, direct managementtraditions should be changed, trust (access and use <strong>of</strong> company and own resources, compensationfor job, monitoring etc.) become an important category;• ethic categories -- privacy (semi privacy?), property, accuracy; life and work in cyberspace isvery near and similar to small village – people do know all about other villagers;• social security for teleworkers (especially on international scale) is an unsolved subject inlegislation;• technological environment as any complicated system can be easy injured -- viruses, hackers,problems in energy supply.Regional initiative is an important aspect for success. Today a number <strong>of</strong> various regional projectsare developed, this is confirmation <strong>of</strong> increasing awareness on municipal level too.It is envisaged that telework will help to reach balanced regional development, to compensatesocio-economic disproportions, to provide all population with equal opportunities to job andeducation, as well as equal social and cultural opportunities, to raise welfare level <strong>of</strong> the society inall regions <strong>of</strong> the country.There is another regional aspect, it is different scale, but the essence is quite similar. Residents<strong>of</strong> Latvia account for only 0.04% <strong>of</strong> humanity and Latvia’s GDP is 0.1% <strong>of</strong> that <strong>of</strong> EU, hence allcountry is a small region in a scale <strong>of</strong> the <strong>European</strong> Union. One <strong>of</strong> the basic principles <strong>of</strong> EU -- freemovement <strong>of</strong> workforce – directly relates to telework.Number <strong>of</strong> specialists, that are trained by many developed countries, is too small for their furtherswift growth. These countries could be characterized by ageing society that is not enough dynamicfor development <strong>of</strong> the information society, stagnant educational system, hypertrophied socialprograms, therefore they need young, high skilled employees who will work and pay taxes.Immigration policy, that has been very strong during many years, is revised both in USA and EUconcerning enlistment <strong>of</strong> skilled specialists.In addition the policy is even double-faced. US are condemned for leading away skilledworkforce from EU countries. In the same time many EU countries (Germany, France, Austria,the Netherlands, Norway etc.) are issuing green cards for specialists from Central and Eastern<strong>European</strong> Countries. Much more, these countries ask for transit period to implement in full freemovement <strong>of</strong> workforce after enlargement <strong>of</strong> EU.

118Latvia cannot and will not support brain drain from our country. Therefore we enjoy Denmark’sapproach – to establish remote branches in CEEC, to practise telework. And I would like to appealrepresentatives <strong>of</strong> all EU countries for wide implementation <strong>of</strong> telework on transeuropean leveltoo.

119The Models <strong>of</strong> Implementation Telework Processin the Polish ConditionsLeszek Kietyka, Technical University <strong>of</strong> Czêstochowa, PolandKlaudia Smolag, Technical University <strong>of</strong> Czêstochowa, PolandAbstractThe paper presents more important issues connected with telework. General assumptions <strong>of</strong> thestrategy <strong>of</strong> telework implementation in an organisation have been discussed. Telework, as a newform <strong>of</strong> work organisation has been presented in the context <strong>of</strong> formation <strong>of</strong> the information societyin Poland. The paper contains also the results <strong>of</strong> a survey, conducted among Polish companies andstate-owned enterprises.1. IntroductionThe idea <strong>of</strong> telework was coined in 1970’s by the American scientist, Jack Nilles. In his opinionin future people would not have to commute to work, but work would “come” to them. JackNilles called such form <strong>of</strong> distance work “telework”. In the literature <strong>of</strong> the subject such form <strong>of</strong>work is known as “remote work”, “distance work”, “teleworking”, telecommuting”, “Telearbeit”,“telepraca” and “telework”. In the Polish literature dealing with the subject <strong>of</strong> distance work withthe use <strong>of</strong> computer and communication technology the term “telepraca” and “telework” has beenadopted.The development <strong>of</strong> telework in Poland is closely connected with the development <strong>of</strong> computerand communication technology. The fact <strong>of</strong> efficient organisation <strong>of</strong> distance work has alsoconsiderable significance. When considering the issue <strong>of</strong> implementation <strong>of</strong> such work organisation,the organisational, technical, legal and educational factors have to be taken into account. All thesefactors should not be considered separately, but jointly as a result <strong>of</strong> the appropriate strategy<strong>of</strong> telework implementation. The type <strong>of</strong> an organisation is also an important issue i.e. differentelements will be taken into account in case <strong>of</strong> a non-pr<strong>of</strong>it organisation and different ones incase <strong>of</strong> production or service organisations. Such approach results from specific features <strong>of</strong> aparticular organisation. Moreover, it has to be noted that not all tasks can be performed outsidethe company’s premises. An employee who could perform telework should give his/ her consent.2. Chances and barriers for telework development in PolandTelework generates greater and greater interest in Poland, which is primarily due to better andbetter development <strong>of</strong> information technology. Information Technology (IT) comprises all themeans and methods <strong>of</strong> information processing. In order to formulate the complete definition <strong>of</strong>information technology one should also mention, besides the means and methods <strong>of</strong> informationprocessing, the ways <strong>of</strong> creating integrated circuits, computer production, connection <strong>of</strong> theapplications <strong>of</strong> computer science with communication techniques, theories <strong>of</strong> program languages,

120theories <strong>of</strong> operating systems, fundamentals <strong>of</strong> organisation <strong>of</strong> data banks, consider the theory<strong>of</strong> telecommunications networks and remember about the basic concepts and methods related t<strong>of</strong>ormal logic, algebra, theory <strong>of</strong> random processes, mathematical linguistics, mathematical statisticsetc. [2]The chances <strong>of</strong> telework development arise from the numerous advantages which can be gainedfrom distance work and which can be divided into the advantages for an employee, employer,environment and labour market. There are many advantages which promote the development <strong>of</strong>telework, among which there are:• use <strong>of</strong> electronic communication, which changes the ways people contact each other in manyfields, including the field <strong>of</strong> work;• use <strong>of</strong> information technology, which can improve work efficiency,• establishment <strong>of</strong> first virtual firms,• use <strong>of</strong> new information techniques, which change the way <strong>of</strong> work organisation,• emphasis on economic business management with telework solutions enabling managers to seeksavings also in the area <strong>of</strong> proper work organisation,• possibility <strong>of</strong> performing many tasks outside the firm’s premises,• adequate development <strong>of</strong> computer and communication infrastructure,• telework as advantageous form <strong>of</strong> work organisation in the economic, ethical and ecologicalrespect [3].Unfortunately, the theoretical assumptions connected with telework development differ fromreality. The main factors, impeding telework development in Poland and elsewhere are as follows:• lack <strong>of</strong> experience <strong>of</strong> optimal use <strong>of</strong> IT,• no social awareness and knowledge <strong>of</strong> distance work,• lack <strong>of</strong> appropriate legal regulations,• problem <strong>of</strong> protection <strong>of</strong> the organisations’ information resources,• difficulties connected with the change <strong>of</strong> management styles,• social isolation.Creation <strong>of</strong> adequate economic, legal, educational and political environment, promoting teleworkdevelopment is a prerequisite for arousing general interest in this form <strong>of</strong> work. Telework is anew form <strong>of</strong> work organisation, inseparably connected with the development <strong>of</strong> the informationsociety.3. Telework implementation strategyThe process <strong>of</strong> management <strong>of</strong> telework implementation in a firm should be carried out inseveral stages, should be variable and be subject to permanent evolution and improvement. Thisprocess cannot be confined only to the stage <strong>of</strong> working out an appropriate strategy. An importantfactor is the procedure <strong>of</strong> designing the strategy and the stage <strong>of</strong> its realisation, comprising theimplementation <strong>of</strong> the selected strategy and its monitoring. In case <strong>of</strong> telework the first stageshould be connected with the analysis <strong>of</strong> the organisational context. the second stage shouldcomprise the analysis <strong>of</strong> telework itself. The third stage is the realisation <strong>of</strong> the strategy <strong>of</strong> teleworkimplementation. The table below presents the general outline <strong>of</strong> the telework implementationstrategy. [4,5]

121Table 1.Telework implementation strategy[Source: Strategic Information System. R. Borowiecki, M. Romanowska (ed.). DIFIN, Warszawa, 2001; Daniels K., Lamond D.,Standen P.: Managing Telework. Business Press Thomson Learning 2000].TELEWORK IMPLEMENTATION STRATEGYStage I Analysis <strong>of</strong> organisationalcontext- organisation environment,- organisation culture,- organisation structure,- SWOT analysis.Stage II Telework - analysis connected with IT application, task division,location, communication and co-operation,- strategy selection.Stage III Realisation - strategy implementation,- monitoring,- modifi cations,- evaluation.The analysis <strong>of</strong> the organisational context is a very important element in the planning <strong>of</strong> theappropriate strategy <strong>of</strong> telework implementation. The IT introduction in the organisation requiresmany organisational changes. First <strong>of</strong> all, it is associated with the liquidation <strong>of</strong> some workplacesthrough: automation <strong>of</strong> some operations, reduction <strong>of</strong> management levels, change <strong>of</strong> forms andmethods <strong>of</strong> collaboration with higher and lower units and with environment [6]. The IT application,however, results also in the creation <strong>of</strong> new organisational units and new workplaces. In manycases the organisation culture is the chief barrier to telework implementation, therefore managershave to consider telework in the wide context <strong>of</strong> the organisation culture. The primary taskis to break down the barriers <strong>of</strong> people’s mentality and match properly the telework type tothe particular organisation. The adequate policy, the possibility <strong>of</strong> the employees’ vocationaldevelopment and propagating the benefits <strong>of</strong> telework allow its effective implementation in theorganisation.Furthermore, it seems advisable to conduct the SWOT analysis, which will enable the managementto specify strengths and weaknesses <strong>of</strong> the particular organisation with a view to teleworkimplementation. The conducted SWOT analysis will help the managers to find out where and whattypes <strong>of</strong> work can be done in form <strong>of</strong> telework. Moreover, by electronic means <strong>of</strong> communication,the analysis will help to determine effectively the technical preparation <strong>of</strong> the organisation for theco-operation and communication with the employees.The second stage, defined here as telework, should start with the synthesis <strong>of</strong> data from theconducted SWOT analysis. On this basis appropriate strategic variants should be formulated andthe suitable strategy should be selected.The final stage <strong>of</strong> realisation <strong>of</strong> the implementation strategy is the most important element <strong>of</strong>the entire process. In case <strong>of</strong> telework many businesses decide to introduce the so-called pilotprojects, which are monitored and modified at this stage. First <strong>of</strong> all, both the management systemand individual teleworker management should be evaluated on the ongoing basis. The individual

122teleworker management comprises communication and co-operation, the teleworker’s personality,characteristics <strong>of</strong> the tasks carried out, the social and psychological context. The managementsystem includes the adequate teleworker selection, training and evaluation [5].4. Panorama <strong>of</strong> telework applicationsThe dynamic IT development creates new work conditions, in which many people permanently usecomputers, telephones, telefax machines. It applies chiefly to all works connected with informationgathering, storing, analysing, processing and transmitting. Telework cannot be implemented inevery type <strong>of</strong> work. The use <strong>of</strong> this form <strong>of</strong> work is suitable in the first place for the followingfields:• sector <strong>of</strong> information and communication technology,• banking,• accountancy,• textual and graphic data processing,• programming,• designing,• information services e.g. tourist information,• scientific works [7].In telework instead <strong>of</strong> the evaluation based on the employee’s presence in his/her workplace, he /she is evaluated on the basis <strong>of</strong> work performance [6]. The teleworker declares his/ her availabilityand readiness to perform the orders <strong>of</strong> his/ her superior.5. The Information Society in PolandCurrently information is becoming the essential strategic resource <strong>of</strong> an organisation (besidesraw materials, capital, labour), with the available information technologies being the tools <strong>of</strong>this strategy. The basis <strong>of</strong> the development <strong>of</strong> the information society is the economy basedon knowledge and this body <strong>of</strong> knowledge i.e. information and methods <strong>of</strong> its application arebecoming the principal economic asset, cumulated both in data bases and in the social intellectualpotential.The transformation <strong>of</strong> the industrial society <strong>of</strong> the 20th century into the information society <strong>of</strong>the 21st century involves a number <strong>of</strong> processes <strong>of</strong> the economic, social, cultural, political,legal, technical and ecological nature [8]. The use <strong>of</strong> IT may contribute to the improvement <strong>of</strong>the quality <strong>of</strong> life in the society and the effectively support the economy. The threats posedby the use <strong>of</strong> IT cannot, however, be overlooked. First <strong>of</strong> all, the access to information mayendanger the citizens’ privacy and cause the appearance <strong>of</strong> the new type <strong>of</strong> <strong>of</strong>fences and crimes,e.g. unauthorised processing <strong>of</strong> personal data, used later for marketing purposes. The use <strong>of</strong> ITenables the communication and collaboration between the staff members, customers, supplierswhen the direct contact is impossible. Such situations occur when the distance, health, type <strong>of</strong>work or family circumstances do not allow direct contacts. Unfortunately, the reduction <strong>of</strong> directcontacts may contribute to the development <strong>of</strong> social isolation. At this stage the role <strong>of</strong> the state isvery significant. It consists mainly in obtaining as many benefits as possible with the elimination

123<strong>of</strong> threats in order to ensure the permanent and balanced social and economic development. Thisobjective can be achieved by the adoption <strong>of</strong> the appropriate strategy, setting forth the aims anddirections <strong>of</strong> the information society development. The implementation <strong>of</strong> such strategy shouldfavourably affect the social, political and economic situation <strong>of</strong> the country [8].Telework surveyIn November 2000 the Centre for Women’s Promotion Fund conducted a survey devoted to“Telework Prospects in Poland”. The survey was carried out in 217 enterprises, employing from50 to 500 people. The results <strong>of</strong> the survey showed that telework generated a great interest incities with over 500 thousand inhabitants and most people carrying out their tasks entrusted by theemployer outside the company premises are to be found in Warsaw and capitals <strong>of</strong> the provinces(voivodships). Great interest in the introduction <strong>of</strong> telework is connected with the benefits for theemployer and primarily with the possibility <strong>of</strong> reduction <strong>of</strong> the labour costs. The results <strong>of</strong> thesurvey were presented at the seminar on telework. The seminar entitled: “Telework – Possibilities<strong>of</strong> Its Implementation in Polish Firms” was held in the Ministry <strong>of</strong> Work and Social Policy inWarsaw on March 6th, 2001 [9].The results <strong>of</strong> the conducted survey, showing the interest in telework implementation have beenpresented in Fig.1.Fig.1Interest in telework implementationSource: Kucharski D.: Telework Prospects in Poland. Centre for Women´s Promotion Fund

124In May this year a survey on trends in telework development in Poland was conducted by thestaff <strong>of</strong> the Department <strong>of</strong> Management Information Systems, Faculty <strong>of</strong> Management, TechnicalUniversity <strong>of</strong> Czêstochowa. The survey was carried out in manufacturing, service and commercialfirms. The survey covered firms in the whole territory <strong>of</strong> Poland, representing various industriessuch as: tobacco, telecommunications, education, construction, computer systems, medical – bothstate-owned and private. Fig.2 shows the percentages <strong>of</strong> particular industries in the survey.Fig.2.Industries included in the survey.[Source: the authors’ own research]The conducted overall analysis shows that telework is mainly understood as the form <strong>of</strong> workoutside the firm’s premises with the use <strong>of</strong> available computer and communication technology.The chart on next page presents the hardware being in possession <strong>of</strong> the surveyed firms.

125Fig.3.Level <strong>of</strong> hardware provision in the surveyed Polish firms.[Source: the authors’ own research]Fig.4.Use <strong>of</strong> the Internet in the organisation <strong>of</strong> the surveyed Polish firms[Source: the authors’ own research]

126Fig.5.Percentage application <strong>of</strong> computer and communication technologyin <strong>European</strong> countries[Source: Conditions for the Development <strong>of</strong> New Ways <strong>of</strong> Working and Electronic Commerce in Spain. Empirica. Madrid andBonn, March 2000]Proper technical preparation is indispensable in the aspect <strong>of</strong> telework implementation . Withoutproperly prepared computer and communications infrastructure distance work, understood astelework cannot be organised. When comparing the above charts it can be noted that Poland doesnot differ considerably from the <strong>European</strong> Union countries with respect to the use <strong>of</strong> the Internetand hardware provision.

127Telework is applied in Poland in various areas <strong>of</strong> operation <strong>of</strong> a particular organisation. The chartsbelow show where this form <strong>of</strong> work organisation is used and where it could still be introduced.Fig. 6.Areas <strong>of</strong> business operations in which work is done entirely outside the firm’s premises.[Source: the authors’ own research]Fig. 7.Areas <strong>of</strong> business operations in which work is partly done outside the firm’s premises.[Source: the authors’ own research]

128The people surveyed were asked about the benefits for the Company which could decide abouttelework implementation. Chart 8 presents the analysis <strong>of</strong> the benefits, significant from themanager’s point <strong>of</strong> view for a company implementing telework.Fig. 8.Benefits for the organisation from telework implementationWhat benefits from work done outside the company premises are important for the company?[Source: the authors’ own research]The following conclusions can be drawn from the conducted survey:• telework is most frequently understood as the form <strong>of</strong> work outside the form’s premises with theuse <strong>of</strong> available computer and communication technology – 57%;• telework is first <strong>of</strong> all the chance to reduce the organisation’s operational costs – 72,5%(economic dimension <strong>of</strong> telework) and the possibility <strong>of</strong> employing disabled people – 39%(ethical dimension <strong>of</strong> telework);• telework brings about the reduction <strong>of</strong> traffic – 54% and environment pollution – 39%(ecological dimension <strong>of</strong> telework);• teleworker should be assessed for the performance <strong>of</strong> a particular task – 95%.The conducted survey enabled the determination <strong>of</strong> general trends <strong>of</strong> the development <strong>of</strong> thenew form <strong>of</strong> work organisation, using the available computer and communication technology i.e.telework. It is difficult to estimate how many teleworkers there are currently in Poland. There aremore and more organisations interested in telework implementation. Unfortunately, the lack <strong>of</strong>appropriate legal regulations is the primary obstacle to its development.ConclusionsThis paper is a collection <strong>of</strong> fundamental researches conducted on the basis <strong>of</strong> surveys connectedwith the use <strong>of</strong> telework in Poland. Telework is generally considered in two essential areas:• organisational: division <strong>of</strong> tasks into those which can be performed in form <strong>of</strong> telework and thedetermination <strong>of</strong> those tasks which require the employee’s presence in the <strong>of</strong>fice;• technical: the scope <strong>of</strong> information technology application.

129The first area is strictly connected with the management <strong>of</strong> employees doing telework and isrelated mainly to the development <strong>of</strong> effective co-operation and communication. Moreover, theemployment issues require a prompt solution , because currently many people doing teleworkin Poland are employed on th basis <strong>of</strong> a commission contract and not in full-time permanentemployment.The second area is related first <strong>of</strong> all to the consideration <strong>of</strong> the question <strong>of</strong> effective and safeapplication <strong>of</strong> information technology. The issue <strong>of</strong> data safety is closely connected with this area.Activities aimed at the realisation <strong>of</strong> the idea <strong>of</strong> information society in Poland and widespreadintroduction <strong>of</strong> telework should consist in the provision <strong>of</strong> access to necessary information for allcitizens. This information includes: regulations, procedures, government actions and undertakings<strong>of</strong> private companies, possibilities <strong>of</strong> investment and development, financial mechanisms, availabletechniques, technologies and products, possible applications <strong>of</strong> teleinformatics at work andat home, statistical economic and demographic information, concerning living conditions,environment condition and protection etc. Mechanisms <strong>of</strong> telework implementation should beaimed at the increase <strong>of</strong> competitiveness <strong>of</strong> the Polish economy on the <strong>European</strong> and world market.Finally the importance <strong>of</strong> proper education has to be pointed out, with the application <strong>of</strong> developedcomputer and communications infrastructure already on the level <strong>of</strong> the primary school [8].References[1] Kietyka L., Pokropiñska A.: Telework Characterisation. VII Scientific and Technical Conference “Productionand Management in Metallurgical Industry”, Ustro 1999.[2] Kietyka L.: Information Technology. Scientific Publication No. 2 in the series: Computer Science inManagement, Cz stochowa 2001.[3] URL: www.fob.org.pl[4] Strategic Information System. R. Borowiecki and M. Romanowska (ed.) DIFIN, Warszawa, 2001.[5] Daniels K., Lamond D., Standen P.: Managing Telework. Business Press Thomson Learning 2000.[6] Pakowska M.: Telework Notion and Characterisation. Work Humanisation, No. 1/99.[7] Smolg K.: Management Structure <strong>of</strong> Telework Implementation Process. Scientific Conference on:“Information Technology”, Mi dzybrodzie —ywieckie 2000.[8] URL: www.eris.kbn.gov.pl[9] Kucharski D.: Telework Prospects in Poland. Centre for Women’s Promotion Fund. Scientific Seminar,Warszawa 2001.

130Telework in Hungary – an OverviewAndrea Wesselenyi, Freelance journalist, HungarySummaryOver the past few years, telework has become <strong>of</strong> interest to Hungary’s government leaders,business decision makers, employee’s and entrepreneurs. Relatively extensive media coverage,and slowly growing practice have helped the better understanding <strong>of</strong> telework in Hungary and theword “tavmunka”, which is the accurate translation <strong>of</strong> the term telework, is now widely known inHungary. However, despite this coverage, for many people its uses and benefits are still not fullyunderstood.Thanks to recent research, there is now information available about the extent, trends, good andbad practices and driving and hindering factors <strong>of</strong> telework take-up in Hungary.Researchers have found that there are only a few companies who employ teleworkers, and amongthem the relative numbers <strong>of</strong> these workers are low. The share <strong>of</strong> corporate teleworkers doesnot yet reach 1% <strong>of</strong> the workforce. Also, according to a recent survey among mid and largesize organizations slightly more than one third <strong>of</strong> companies based in Hungary reject the idea <strong>of</strong>telework. A bit more than one third <strong>of</strong> the companies would gladly employ teleworkers, and canimagine realizing this in a five years’ time.When looking at the fields <strong>of</strong> work, Hungarian corporations have determined four areas that couldcreate opportunities to employ teleworkers. These work areas are accounting, market research,translating and data recording.In 2001 two big corporations, Matáv and MOL, respectively the country’s biggest local telecomcompany and largest oil company have launched corporate telework projects among theiremployees.SMEs, according to recently prepared case studies, show and increasing interest towards mobileand flexible working methods. So does the freelance world, where one can see a growing number<strong>of</strong> individuals and small companies incorporating ework into their daily working procedures.In looking to the future <strong>of</strong> teleworking in Hungary, several factors will influence the rate <strong>of</strong>growth including telecom liberalization, the growth in the number <strong>of</strong> home PCs connected to theInternet, the decreasing cost <strong>of</strong> Internet connection, the growth <strong>of</strong> bandwidth, the need to increaseproductivity and cost-effectiveness, as well as the need for a more balanced lifestyle amongstemployees.

131Awareness <strong>of</strong> Telework in HungaryAccording to a survey among mid and large size companies telework has been found unanimouslyadvantageous by most company managers. The macro-economic advantages <strong>of</strong> telework are mostlymanifested in decreasing the crowdedness <strong>of</strong> public roads due to drop <strong>of</strong> the number <strong>of</strong> travelingemployees, and through that improving the state <strong>of</strong> the environment. The managers questionedin general can also see more advantages from the employees’ point <strong>of</strong> view, true enough that notto that great extent. On micro-level, i.e. the level <strong>of</strong> the business <strong>of</strong> the companies, the utmostadvantage <strong>of</strong> telework is identified in savings achievable in cost management: through decreasing<strong>of</strong>fice, rental and various other costs.When given more specific questions whether the particular firms are planning to employ teleworkersin the near future, less advantageous data was collected. The companies contacted can be dividedinto three main categories in view <strong>of</strong> their attitude to telework, and when they can imagineemploying teleworkers. Slightly more than one third (37%) <strong>of</strong> the firms have appeared to bedefinitely against the idea: they can foresee no teleworkers employed or only in the distant future.Contrary to them, also a bit more than one third <strong>of</strong> the companies (39%) have been absolutely open:they would gladly employ teleworkers, and can imagine realizing that in a five years’ term. Theremaining one fourth <strong>of</strong> the companies (24%), have taken an intermediate position: they are neitherthat much open, nor that much against it; they can conceive that they employ teleworkers in 5-10years.In view <strong>of</strong> the fact that employing telework raises plenty <strong>of</strong> various technical, financial, legal andother issues, a significant number <strong>of</strong> companies have no intention to employ teleworkers at all.Above all, the main factor influencing companies against telework is data protection difficultiesrelated to the employment <strong>of</strong> telework.Also holding companies back is that managers are not entirely certain that telework is moreeffective or that it generates a higher level <strong>of</strong> performance than traditional in-house forms <strong>of</strong>work.The number <strong>of</strong> teleworkers in HungaryDue to the low uptake <strong>of</strong> telework in Hungary precise figures to the number <strong>of</strong> teleworkers are notavailable. However, even without precise data it can be stated that the employment <strong>of</strong> telework canbe observed solely within a fairly limited range in Hungary.According to ECOSTAT Research about 25,000 people in Hungary do some work on a homecomputer. This is out <strong>of</strong> a total labor force <strong>of</strong> 3,5 million. Most <strong>of</strong> this work is done in occupationssuch as accounting, translation, typing/editing, research, planning and design. Many <strong>of</strong> thesepeople would be classed as “voluntary “ teleworkers, but they have probably accepted this form <strong>of</strong>work because they prefer an alternative to rigid forms <strong>of</strong> work.The number <strong>of</strong> corporate (employed) teleworkers in Hungary does not reach 1% <strong>of</strong> all employees.There are only a few companies who employ teleworkers and among them the relative numbers aresmall. When comparing reality to plans, a much higher number <strong>of</strong> teleworkers can be identified.Those questioned in a survey by Psyma Hungary were asked to estimate the percentage <strong>of</strong> jobs they

132could imagine in the form <strong>of</strong> telework. The data collected revealed that (in theory) one out <strong>of</strong> tenemployees could perform his/her work as a teleworker in the future.Fields <strong>of</strong> teleworkingWhen looking at in what specific fields telework itself can be employed, Hungarian mid a largecompany managers have defined four fields <strong>of</strong> work which could create an opportunity for arelatively high number teleworkers. They are as follows:• accounting• market research• translations• data recordingThose questioned by the survey <strong>of</strong> Psyma could imagine even 50-60 % work in these fields thatcould be performed - also at their firm - in the form <strong>of</strong> telework.Conditions <strong>of</strong> teleworking in HungaryAccording to the data given by the National Statistical Office (KSH) one third <strong>of</strong> Hungarianemployees works on a computer. Given the fact that a computerized workstation is a basic condition<strong>of</strong> establishing telework relations, there is a large target group for teleworking in Hungary.However, there are still a number <strong>of</strong> factors that prevent the rapid growth <strong>of</strong> teleworking. One <strong>of</strong>them is that many people in Hungary tend to live in flats which are too small to accommodatetelework. Few people have a separate room or space to designate as a work area. The number<strong>of</strong> home PCs and the relatively high costs <strong>of</strong> telecommunications are another barrier. Surfing theinternet during working hours from home is unfortunately still considered luxury in Hungary. Thesituation is expected to change with Matáv’s monopoly to be over in 2002.Management AttitudesOne <strong>of</strong> the main barriers to the take-up <strong>of</strong> telework is conservative management attitudes. Managersfear that they would not be able to control and motivate teleworkers from a distance. Lack <strong>of</strong>information and <strong>of</strong> practice on managing from a distance are both preventing managers andHR pr<strong>of</strong>essionals from experimenting with telework practices. The executives <strong>of</strong> medium sizecompanies are especially skeptical.Those questioned believe that one <strong>of</strong> the important factors in preventing the spread <strong>of</strong> teleworkis the lack <strong>of</strong> jobs that can be allocated to it. Another thing that holds companies back is thatthey are not certain whether telework is more effective in generating higher levels <strong>of</strong> performancethan the traditional, in-house forms <strong>of</strong> work. In spite <strong>of</strong> the fact that various estimates have beenpublished in the international literature with regard to the point to what extent telework createfavorable conditions for more effective performance <strong>of</strong> work, relatively few managers think thatthe employment <strong>of</strong> telework would to a great extent contribute to making the performance <strong>of</strong>

133work more effective, producing higher outputs. It seems that in order to dissolve such fears theinterrelation between telework and effective work performance should be demonstrated moreconvincingly.Corporate Case StudiesMatávThe leading Hungarian telecom company MATÁV launched a corporate telework project in thebeginning <strong>of</strong> 2001. According to the decision <strong>of</strong> the management board a total <strong>of</strong> 250 employeeswill be allowed to perform part <strong>of</strong> their work from home. So far 80 employees out <strong>of</strong> 14,380 havesigned the telework agreement and were equipped with a home <strong>of</strong>fice. According to this agreementall teleworkers remain the employees <strong>of</strong> Matáv with equal conditions. The only difference is thespecification <strong>of</strong> work place and working hours. Teleworkers are allowed to work at home 2 daysa week and 3 days in the company’s <strong>of</strong>fice. All costs to create home <strong>of</strong>fices (PC or laptop, <strong>of</strong>ficefurniture, ISDN2 connection) are covered by the company.Participation in the telework project so far is only available by Budapest residents. Areas <strong>of</strong> workwhere the option <strong>of</strong> telework is provided include IT, product management, sales, customer support,project management, training and technical support. To inform future teleworkers about the issues<strong>of</strong> telework Matáv organized a training for those interested, prepared a printed information bookletcalled „Telework Guide” and provides additional information via the company’s intranet network.First teleworkers reported that the productivity <strong>of</strong> the work performed at home is better than in the<strong>of</strong>fice.MOLAt MOL - the biggest Hungarian oil company - 73 employees telework today out <strong>of</strong> 18 016employees. The manager <strong>of</strong> MOL expressed in an interview that based on positive experiencegained from the project the number <strong>of</strong> employees allowed to work from a distance will definitelygrow.Forms <strong>of</strong> Telework/TelecommutingMost companies in Hungary tend not to accept the idea that corporate teleworkers are to workpermanently, each day <strong>of</strong> the week, at home. The relative majority would prefer the solution thatteleworkers work 3-4 days at home and go to their place <strong>of</strong> work for the rest <strong>of</strong> the week.Most companies however, prefer staff to be self-employed because it reduces labor costs. Thepopularity <strong>of</strong> the entrepreneurship form is certainly not independent <strong>of</strong> the fact that the currentpractice in Hungary prefers entering entrepreneurial agreements in order to diminish wage costs.Most companies in the event they would employ telework, would establish a relation with theteleworker as an independent entrepreneur. Thus there is a sharp difference in accepting a workrelationship with an entrepreneur versus an employee. Only a few companies would put teleworkerson the payroll, the majority <strong>of</strong> them would prefer to work with teleworkers as independententrepreneurs.

134FreelancingFreelancing in traditional creative pr<strong>of</strong>essions such as translators, journalists, artists, researchers,s<strong>of</strong>tware developers and graphic designers have been in practice for many years. With the spread <strong>of</strong>the Internet the idea <strong>of</strong> freelancing became more popular. The number <strong>of</strong> self-employed teleworkersin internet-related jobs (web design, web programming, content development, online research, etc.)is growing along with the demand for such services. Hundreds <strong>of</strong> Hungarian individuals and smallcompanies have entered international marketplaces such as Elance, SmarterWork, Guru.com, etc.to experiment transborder teleworking and to find new clients from all over the world.The first Hungarian freelance marketplace was launched in July 2001 at interwork.hu. This wasfollowed by a vertical marketplace specialized in translations projects, called the Wired OnlineTranslator. Both services have been developed in Hungary and are aimed at helping to match smalland mid-sized outsourced projects with service providers within the country online.Government ActionsMany business entities expect that the state and the government will play a role in the promotion <strong>of</strong>telework in Hungary, for example, through public tenders, tax allowances, etc. which would makeemployers interested in employing more teleworkers.In 1998 a budget <strong>of</strong> 400 million Forints ($1.5m) was targeted at two groups, the disabled andmothers <strong>of</strong> young children based at home. As a result <strong>of</strong> this project only a few new jobs werecreated and most <strong>of</strong> them were not sustainable after the grants were over. The relatively smalluptake can be explained by conditions specified in the project as well as by the fact that generallyentrepreneurs are not seeking to employ people from either target group. In fact, the Governmentoverestimated the role <strong>of</strong> teleworking in job creation.Lessons from the failed project have been learnt and new initiatives are elaborated with a newapproach. It is now clear that telework cannot be an effective weapon in combating unemployment.It is thought however that it can play a role in rearranging regionally unbalanced economicdevelopment, for example in helping in the development <strong>of</strong> the east <strong>of</strong> Hungary. In Hungary, wherethe territorial mobility <strong>of</strong> people is <strong>of</strong> a very low intensity; it is thought that telework may help tochannel labor into the performance <strong>of</strong> work that they would be unable to reach in the traditionalway because <strong>of</strong> the distances. In order to reach such goals, the Government subsidizes the spread<strong>of</strong> telecottages. Over 200 telecottages are operating in Hungarian villages and new ones are to opensoon.The Commissioners’s Office for ICT in Hungary that has recently been founded with the aim <strong>of</strong>accelerating the process to develop the information and communication technologies in Hungaryprepared the “National Strategy for the Information Society” in 2001. As part <strong>of</strong> this projectHungarian businesses were invited to tender on projects related to the development <strong>of</strong> informationsociety. There was a huge response to the invitation to tender. Selection <strong>of</strong> the winners is nowin process, and the implementation <strong>of</strong> winning projects including many related to e-work ande-learning will start in September this year.

135Conferences on Telework in BudapestIn November 2000 Budapest was the home <strong>of</strong> the Conference <strong>of</strong> the EMERGENCE project. InMarch 2001 an international conference titled “Telework 2001 in Europe” was organized by aHungarian civil organization to promote the idea <strong>of</strong> e-work and showcase good e-work practicesamong corporate and government decision makers.On the 11-12th <strong>of</strong> October 2001 a conference titled “e-Hungary” will take place in Budapest. Thefour main section <strong>of</strong> the conference will be• e-business• e-capital• e-learning / e-working• e-securityTeleworking / eworking in Hungary has become a widely discussed and promoted concept at thehighest levels <strong>of</strong> administration and the idea is welcome by a relatively large share <strong>of</strong> employersand the workforce too. The take-up <strong>of</strong> telework practice is expected to grow over the comingyears.Sources <strong>of</strong> information:Telework Trends and Practices in HungaryResearch report by the Information Society and Trend Research Institute (ITTK)Budapest, 2001The Chances for Telework in HungaryResearch report by Psyma Hungary and the Foundation for the Women in Hungary (MONA), 2000Telework – the New Forms <strong>of</strong> Employment in the Innovative SocietyResearch report by ECOSTAT, Budapest, 1999Telecottages and Telework in HungaryBook published by the Hungarian Telecottages Association in 1999The Hungarian Telework Portal (URL: www.tavmunkainfo.hu)Other: telework related articles published in the printed and the electronic media

136Telework in Estonia: preconditions and useTaavi Valdlo, Estonian Informatics CentreSummaryTeleworking is gaining more popularity in Estonia. Preconditions for fruitful telework in Estoniaare characterised from legal, technological and psychological aspects. Some data describingdevelopment <strong>of</strong> telecommunication services are given and number <strong>of</strong> innovative programs initiatedby Estonian government are described. Wide penetration <strong>of</strong> Internet banking and mobile phonesseems to play helpful role implementing new ways to work in society. Examples from e-work,e-learning and e-services are provided. Both private and public sector initiatives are encouraging.Despite <strong>of</strong> success a lot <strong>of</strong> work should be done in implementing new technologies.IntroductionTelecommunications is one <strong>of</strong> the fastest growing markets in Estonia. The telecommunications andpostal services sector is virtually open. With its policies and innovative initiatives the EstonianGovernment is helping companies make the information technology sector one <strong>of</strong> the leading in thecountry. To foster growth, the Estonian government has initiated a number <strong>of</strong> innovative programs.Projects in telework and their increasing proportion in the total number <strong>of</strong> projects is a clear sign<strong>of</strong> the rapid development <strong>of</strong> this field in Estonia. Highly developed electronic banking services, thecontinuing competition <strong>of</strong> Estonian telecommunication companies, the state’s activities throughlegislation and its enforcement encourage this development.As regards the future <strong>of</strong> the Estonian (information) society, we should emphasize the fact thatEstonia has been quick to catch up with the advanced countries in terms <strong>of</strong> ICT infrastructureand ICT exploitation. The young generation that values education and is the potential carrier<strong>of</strong> intellectual capital will hopefully play an important role in this development. Due to the“compactness” <strong>of</strong> Estonia in terms <strong>of</strong> its population and organizational infrastructure, it might beeasier to direct this development here than in larger countries – here lies the potential strategicadvantage <strong>of</strong> Estonia in the development <strong>of</strong> the key fields <strong>of</strong> the information society.

137Telecommunication services penetration data1998 1999 2000Basic telephone lines 499000 515000 522000Private telephone lines 393000 411000 413000Mobile telephone subscribers 249000 388000 557000Cable-TV subscribers 99000 126000 151000ISDN lines 22478 30762 41008Source: Statistical Offi ce <strong>of</strong> EstoniaUsers <strong>of</strong> computers and Internet among inhabitants between 15 and 74 years <strong>of</strong> ageNo <strong>of</strong> people having usedcomputer in last six monthsNo <strong>of</strong> people having usedInternet in last 6 monthsOwners (users) <strong>of</strong> homecomputers1998 1999 2000 2001348000(31%)114000(10%)130000(12%)369000(34%)173000(16%)150000(14%)415000(38%)309000(28%)201000(18%)444000(40%)356000(32%)272000(24%)Sources: BMF Gallup Media, EmorInfrastructure development is crucial success factor for wider spreading <strong>of</strong> telework and othernew ways to work using modern telecommunication facilities. It is important to create fruitfulpreconditions. Let us characterize some legal, technological and psychological aspects <strong>of</strong> what isdone in Estonia.Key legislative measuresDigital Signatures Act Passed 8 March 2000, entered into force 15 December 2000,This Act provides the necessary conditions for using digital signatures and the procedure forexercising supervision over the provision <strong>of</strong> certification services and time-stamping services. Adigital signature has the same legal consequences as a hand-written signature.Effective signing and identification possibilities are crucial for wider spread <strong>of</strong> telework incorporate level, dealing with sensitive data and personal responsibilities.Estonian EID-program http://www.id.ee/The purpose <strong>of</strong> Estonian EID-program is to make use nation-wide electronic identity anddevelop a new personal identification card that would be a generally acceptable identificationdocument and contain both visually and electronically accessible information. The card should bemultifunctional national passport from beginning <strong>of</strong> 2002 – besides being a nationally acceptedpersonal identification token, it would also serve other purposes, both in the public (social security,health insurance etc) and private sectors (banks, service companies etc). Estonian ID-card willbased on smartcard technology with crypto-processor, it will carry both electronic identificationand digital signing possibilities.

138Certification Centre Ltd. established by EMT, Hansabank, Union Bank and Estonian TelephoneCompany on February 2001 is now ready to provide public key infrastructure-based certificationconnectedservices. Statutory core businesses will be certification and timestamp related services.Joint certification centre enables to optimize investments in base infrastructure <strong>of</strong> electronicoperations in accordance with the Digital Signature Act.Liberalization <strong>of</strong> Estonian telecommunication market according to the Telecommunication Lawbecome operative under the circumstances <strong>of</strong> free competition since January 1, 2001. The aim <strong>of</strong>the law is to create favourable conditions for the development <strong>of</strong> telecommunications, to promotefree competition in providing telecommunication services, and to regulate telecommunicationmarket in the conditions <strong>of</strong> the free competition.Technological preconditionsEEBone is backbone <strong>of</strong> Estonian governmental institutions. http://www.aso.ee/eebone/Connecting all 15 Estonian county capitals, connection to other Estonian networks and to Internet.Main idea - to force difference IS projects via helping to resolve data connection problems andsupporting <strong>of</strong> regional development. Based on TCP/IP protocol.Estonian Educational and Research Network (EENet) http://www.eenet.ee/EENet/ is a governmentalnon-pr<strong>of</strong>it organization with the task <strong>of</strong> managing, coordinating and developing the comput ernetwork <strong>of</strong> science, education and culture. EENet’s main task is to <strong>of</strong>fer Internet connect ion as wellas all additional services (ftp, news, DNS etc). There are also several areas <strong>of</strong> growing importancee.g. security problems and networking policy. EENet manages Estonian top level domain (.ee).The county data communication target program Village Road (in Estonian: Külatee) http://www.kylatee.ee/ is an information technology program initiated in cooperation <strong>of</strong> countygovernments, the Department <strong>of</strong> State Information Systems and the Estonian Informatics Centre.KülaTee is one <strong>of</strong> Estonian Information Policy framework programs and has been included by theGovernment <strong>of</strong> the Republic among the programs preferably developed during 2000-2002. In 2000the Ministry <strong>of</strong> Culture joined the program and ordered the establishment <strong>of</strong> Internet connection inpublic libraries and the opening <strong>of</strong> Public Internet Access Points (PIAPs) in all Estonian libraries.By the end <strong>of</strong> 2000 over 239 self-governments (96 %) got Internet connection.Thank the national Tiger Leap Program for computerisation <strong>of</strong> Estonian schools, http://www.tiigrihype.ee/eng/ launched in 1996 by President Lennart Meri, Estonian schools havetwenty-five pupils per computer on the average, there are no upper secondary schools nor basicschools without computers and Internet connections. This is a national information society projectthat ensures that every Estonian school is wired to the Internet. Also Public Internet AccessPoints have been created throughout the country in order to make the Internet available to everyEstonian.Tiger Leap Plus Programme have been approved by the session <strong>of</strong> the Estonian Government on23.01.2001. The Tiger Leap Plus development plan focuses on support for ICT development inEstonian general education and teacher training.

139Look at World (in Estonian: Vaata Maailma http://www.vaatamaailma.ee/) is project initiated by 10leading private IT companies with cooperation with state institutions, aim is significantly increasenumber <strong>of</strong> Internet users while raising life standard <strong>of</strong> citizens <strong>of</strong> Estonia and state competitiveadvantages in Europe.Psychological aspectsEstonians are eager to try new technologies and make experiments. Wide penetration <strong>of</strong> Internetbanking and mobile phones are clear evidences <strong>of</strong> that. Number <strong>of</strong> users <strong>of</strong> online banking systemsis at the moment 350000, 90% transactions are made electronically, 25% <strong>of</strong> the population usingInternet banking. Due to the close proximity <strong>of</strong> the Nordic countries - the world leaders in many<strong>of</strong> the new wireless telecommunication technologies - Estonia has become a country where mobilephones are not only manufactured but are also very widely used. Today about 40 percent <strong>of</strong> thepopulation uses GSM services. Estonian mobile operators are among the first in the world tointroduce WAP services to their customers. Nearly the entire country has mobile phone coverage,with three operators providing GSM services.So people have experienced and do not afraid use modern Internet technologies and communicationmeans, there is sufficient critical mass <strong>of</strong> users for successful development new ways <strong>of</strong> work.Main examples and case studiese-LearningCentre <strong>of</strong> Strategic Competence (CSC) http://sylvia.ce.ut.ee/evaluation/ was established at theUniversity <strong>of</strong> Tartu in 1997. The task <strong>of</strong> CSC is to concentrate research and development activitiesand resources in key technological areas, including telework.CSC test implementations <strong>of</strong> Computer Supported Collaborative work and Computer SupportedCollaborative Learning environments such as Basic Support <strong>of</strong> Cooperative Work (BSCW) inlast years based in huge work <strong>of</strong> enthusiasts. It seems, that users enthusiasm is calming down.Objective difficulties are: not sufficient computer skills, habit to use different communicationchannels etc. Telework seems to be suitable for motivated academic dispersed groups, also forproject work. BSCW user interface is available also in Estonian language.Integrated Learning Environment Miksike http://www.miksike.com/ works for regular schoolsand homeschoolers. Miksike gives away more than 20 000 worksheets in HTML and <strong>of</strong>fers a set<strong>of</strong> collaborative learning services.e-WorkEstonian Government Cabinet <strong>of</strong> Ministers Sessions Infosystem www.gov.ee, since august 2000• Allows to prepare and carry out sessions electronically• Makes sessions’ data electronically available to all parts involved

140• Ministers can view and prepare agenda-points, materials in advance and make quick search inmaterials, they are able to get a good overview <strong>of</strong> agenda and materials during the session• Ministers can e-participate in the sessions without being physically presentVirtual Private Networking implementations essentially means ”public lines, private data”.Public communication lines and channels, such as the Internet, are used for communication. Thisgreatly reduces communication costs, as compared to using separate physical communicationchannels. The confidentiality, authenticity and integrity <strong>of</strong> exchanged private data is ensured usingsecure cryptography algorithms. Privador Ltd. http://www.privador.com/ is leading company inVirtual Private Networking market in Estonia.Some examples:• Ministry <strong>of</strong> Foreign Affairs <strong>of</strong> the Republic <strong>of</strong> Estonia: reaching from Tallinn to Tokyo to NewYork and growing to cover all the embassies and foreign missions <strong>of</strong> the Republic <strong>of</strong> Estonia• Estonian Ministry <strong>of</strong> Justice: consisting <strong>of</strong> over 50 law enforcement agencies, including courtsand prisons• Estonian Tax Board: nation-wide system with 15 CryptoWalls in Tax Board headquarters andregional <strong>of</strong>ficesVPN solutions are used also in Estonian Police, Border Guard, Customs, Citizenship and MigrationBoard.Home and mobile <strong>of</strong>fi cesLot <strong>of</strong> home and mobile <strong>of</strong>fices are introduced by several private companies. Äripäev-Datel home<strong>of</strong>fice experiment is more interesting. Äripäev is Estonia’s largest business newspaper and Datelone <strong>of</strong> largest IT companies. Helmes LTd. mobile <strong>of</strong>fice, BCS, KPNQwest, Abobase, Privador areexamples among others, several architect bureaus have announced telework.Estonian Telephone Company with cooperation Privador Ltd. is currently <strong>of</strong>fering secureteleworking solutions and environments for companies, enabling new possibilities for establishinghome and mobile <strong>of</strong>fices.e-ServicesX-Road is the modernization program <strong>of</strong> national databases with the aim to change nationaldatabases into a common public, service-rendering resource.• The citizen can get information from national databases, a common data storage, within his orher limits <strong>of</strong> authority 7 days a week and 24 hours a day• The civil servant can use all national databases in the decision-making process within his or herlimits <strong>of</strong> authority• The entrepreneur can use information included in national databases for carrying out business• The state has become more transparent, integral and intelligible for the citizens.E-Tax Board – Income Tax Statements can be filled out via Internet.

141Aim <strong>of</strong> project Today Decide I http://tom.riik.ee/ is to rise level involvement ordinary people instate decision-making processes. It is possible to make legal acts proposals and other ideas. Openforum enables comment materials and government proposals in draft version.Mobile Positioning SystemRegio Ltd. http://www.regio.ee/ participates in the team to create the first Mobile PositioningSystem (MPS) service for society (May 2000) in the world. Estonian Mobile Telephone (EMT),Ericsson and Estonian Rescue Board started the pilot project to determine the location <strong>of</strong> thecallers who have dialled the emergency number 112. The service is accessible to all clients <strong>of</strong>EMT regardless <strong>of</strong> the brand <strong>of</strong> phones or GSM cards. Regio has started development <strong>of</strong> number<strong>of</strong> commercial applications for the MPS, such as WWW logistics server.ConclusionDespite <strong>of</strong> success it is worth to mention, that we in Estonia faced same problems as other countriesin Europe, so it seems to be same level <strong>of</strong> development. It is not question <strong>of</strong> buying technologiesbut implementing new technologies in organizational level. It is not so easy to switch on telework.Current organization <strong>of</strong> work/learning is not suitable for Web-learning/teaching, new technologiesdemand time and new methodology, leaders and administrations have not realize that yet, and thatis why content is not developed sufficiently. For example, there are lot <strong>of</strong> ideas and virtual <strong>of</strong>ficesproducts on the market, but all technologies available need much tailoring to meet actual businessneeds <strong>of</strong> enterprises. Additional necessary investments should made. Internet and Web are likeordinary infrastructure systems, they need investments in corporate level, technical maintenance,security measures implementation.Let us note that the development <strong>of</strong> e-business culture and e-work culture based on new technologyrequires more time than is usually expected. The intellectual capital and pr<strong>of</strong>essional staff are thekey factors in the further development. Work is not where to go but what to do. But not only infuture, it have been always so. Development <strong>of</strong> new ways to work should be evolutionary process,in what Estonia has role to play.

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143PARALLEL SESSION PRESENTATIONSIV Work and business on the net

144About extended enterprises, value chains networksand new requirements for e –workLeopold Reif, H<strong>of</strong>fmann+Reif Consultancy, GermanyAbstractThere are no boundaries on the Internet. Informated business processes can reach beyond thecorporation’s confines and include both customers and suppliers. Electronic marketplaces becomecross-organizational platforms. Complexity increases, and new demands on the e-worker arise.Everyone in the extended enterprise becomes an e-worker, because everyone is connected andcollaborates in a space (not a place) <strong>of</strong> virtual networks. E-workers are enabled through newknowledge building applications and capture, represent and consume knowledge in a constanttime-flow. E-workers are knowledge workers. They capture, represent and consume knowledge ina direct mode. The dynamic environments they are working in do not allow any time consumingintermediaries between knowledge and self.”The hype goes, the Internet grows”The new economy is stumbling and ailing. The crisis is not over yet, but for the net <strong>of</strong> the netsthe last 2 years have been just two additional years <strong>of</strong> exponential growth. Start-ups and dot.comsdisappear, but there is no standstill for the constant flow <strong>of</strong> corporate rationalization exploitingInternet applications. The Internet has become the ubiquitous application and communicationsplatform for the informated business processes.Now corporations go a step further. With the help <strong>of</strong> the Internet they extend their businessprocesses beyond their confines and link them tightly with the organisations <strong>of</strong> their suppliers,partners, customers and sometimes even with their competitors. Corporations become extendedenterprises, create value-chain-networks and value-chain-communities and enjoy a rationalisationpotential never experienced before.Extended enterprises: requirements and solutionsIn the automobile industry close cooperation with suppliers has a long tradition. Today theextended enterprise goes further and create seamless informated networks along the entire valuechain, including not only suppliers but also partners and customers. The focused enterprisehas outsourced extensively and is thus highly depended on partners. In order to cope with theincreasing complexity <strong>of</strong> a focused business with a high dependency on partnership, e-businessplatforms such as e-marketplaces have been introduced.

145There seems to be a vicious circle here and quite a few corporations are struggling with it.Todays’ lean enterprises have outsourced in order to save costs and decrease complexity. But thendependency on partners lead to another increase <strong>of</strong> complexity and obviously costs. e-commercewith e-marketplaces were supposed to reduce this complexity but by its very systemic natureincreased it as well. To learn about the reality <strong>of</strong> “total costs <strong>of</strong> ownership” added some additionalsobering insights.At the end <strong>of</strong> the day it was only through enabling applications and the know-how <strong>of</strong> competentemployees that this vicious circle was broken. People with knowledge supported by empoweringapplications make it possible to cope with complexity. With knowledgable employees and enablingapplications the corporation can follow a two folded approach: Shrinking and growing at the sametime. Shrinking through focussing on the core business and growing through establishing anextended partnership network.In such a dynamic and complex environment the e-worker finds himself in a pole position, becauseit’s her/his knowledge which is the basis for success. Information and knowledge are key in thebusiness processes <strong>of</strong> the extended environments. At the end <strong>of</strong> the day, they represent the missioncriticalhuman component <strong>of</strong> trillions <strong>of</strong> numerical transactions.Extended relationsships beyond the corporate boundaries pose extreme demands on all actorswith regards to pr<strong>of</strong>essional and social competencies. Horizontal key competencies are in highdemand. Enterprises need to provide knowledge services within the informated business processesalong all elements <strong>of</strong> the extended value-chain. This is an extreme challenge for corporate training,a corporate function with a traditional conservative role and <strong>of</strong>ten severe acceptance problems.When buyers negotiate their contracts on the Internet, they need to be supported with information,knowledge and training on the Internet. When they use an electronic marketplace they need tobe supported within the electronic marketplace. A modern bricks-and-mortar training center andqueuing for a training course (undated by its very nature) are no use to them.Trust is the basis <strong>of</strong> all transactions be it in a traditional or electronic environment. The path totrust is knowledge. In order to build trust and secure transactions knowledge needs to be <strong>of</strong>feredas a service throughout the extended value chain. Such a service is <strong>of</strong>fered through knowledgeportals and e-learning programmes beyond the traditional HRD boundaries. It helps CustomerRelationship Management to improve customer integration and loyalty and purchasing staff toimprove the quality <strong>of</strong> their vendor relationship – through training and knowledge <strong>of</strong>ferings. Aspowered.com - the Dell and Barnes & Noble virtual universities provider - has put it: “Sellers needto teach and buyers want to learn.“Providing such an infrastructure is not trivial. People operate along the lines <strong>of</strong> the extendedvalue chain in virtual environments. Therefore the capacity to capture, represent and distributeknowledge needs to take place exactly in this environment in a fully informated mode. Applicationswhich enable people to do this are in high demand today.

146New requirements for e-workers: capturing anddistributing knowledge on the fl yProviding knowledge and training electronically has a 15 years tradition in enterprises. ComputerBased Training (CBT) programmes are on the shelves <strong>of</strong> any training center. But even though CBThas now been put on the Web as WBT for faster distribution and better access, it represents arather frozen type <strong>of</strong> knowledge. The speed <strong>of</strong> processes on the Internet requires a high degree<strong>of</strong> flexibility and adaptability in the provision <strong>of</strong> knowledge and training. CBT seems not to besuitable for this new environment.Production <strong>of</strong> CBT demand too much time and costs are high. CBT cannot meet the demandposed from shortened product life-cycles and time to market delivery. CBT itself is humanmachineinteraction, knowledge building on the Internet requires and exploits person to personcommunications. Since time is mission critical, knowledge provision needs to be integrated intothe communications flow <strong>of</strong> the extended enterprise itself. The path from knowledge identificationto creating a pedagogical meaningful learning opportunity must be dramatically shortened. Byextending the scope <strong>of</strong> internal knowledge and training provision to encompass customers andpartners and thus external markets, the degree <strong>of</strong> quality expected <strong>of</strong> content and representation is– at the same time – dramatically increasing.Consequently knowledge owners in the enterprise must be enabled to become knowledge providersthemselves with no middlemen involved. Can these requirements be met? Yes, fortunately throughenabling applications which are more or less available or will be shortly available on themarketplace.New applications for content production meet the new challenges. Training programs can bemade available on the Web according to time-to-market criteria. Automated, template-based XML/HTML/PDF generation allow the fast production <strong>of</strong> rich and interactive content. With these easyto use applications knowledge owners can produce and adapt interactive courses individually or incollaboration quickly and efficiently and publish them on the Web.This has tremendous implications for the e-worker. The representation <strong>of</strong> knowledge can beperformed and supported by the owners <strong>of</strong> knowledge themselves. Direct representation <strong>of</strong>knowledge through enabling applications avoid many <strong>of</strong> the intermediaries in the knowledgebuilding process, speed up the process dramatically and reduce costs considerably. Unprecedentedproductivity potential can be achieved when appropriate applications “empower humankind withthe ability incessantly to feed knowledge back into knowledge and experience into experience.”(Manuel Castells, 1998).

147netOrganisationStefano Lotti, CEO BrainWorkers Ltd. and Angelo CanalettiPartner <strong>of</strong> BrainWorkers Ltd., Italy1. The Net as a biological phenomenonHere we intend to understand the Net from our human beings’ viewpoint 1 . It might seem onlyapparently trivial to say that those who use technological networks are biologically human beings.However we believe that starting from this ‘trivial’ point <strong>of</strong> view we can understand how do thetechnological networks and organisations work and, to a certain extent, we can therefore orient thedesigning <strong>of</strong> further tools not in a naïve fashion.It is impossible not to see that from the design <strong>of</strong> the first computers to nowadays the networksevolution has had an unforeseeable development. We cannot ignore that the current implementation<strong>of</strong> such a phenomenon like the Internet goes beyond its inventor’s original forecast and that thedescription <strong>of</strong> the networks in terms <strong>of</strong> protocols and codes characteristics is necessary but notsufficient to explain what is currently happening.Nevertheless, we believe that is equally insufficient to deal with the Net approaching it withtraditional, although accurate, sociological and organisational studies.What we need are intellectual tools and a language able to deal and understand technology as a part<strong>of</strong> our biological being, tools that can be an effective guide in order to design and implement theworld we are interested in.«Let us heap all science together. Before we reach the end <strong>of</strong> our tether» 22. The technological networkOver the recent decades we have passed from IT centred on ‘data elaboration’, to IT focused oncomputers connections. A picture <strong>of</strong> this change can be seen referring to the computer imagesover time, as observed by Carl Adam Petri 3 . In this synthesis we can see how the upcoming <strong>of</strong> thenetworks shifts the IT meaning from data calculation to communication possibilities.1 Much <strong>of</strong> the trust we here express comes from the observation <strong>of</strong> great number <strong>of</strong> organization, from great enterprise to informalgroups and in particular <strong>of</strong> a place such as CSOA Forte Prenestino, that with little technology, and by continuous attemps andby making mistakes, has been concretely experimenting a life organisation without old hierarchies and tries among thousandsdiffi culties and cultural and human barriers to put in place desirable forms <strong>of</strong> life.2 Angel Parra and Srafford Beer, Litany for a computer and baby about to be born, 1972 (cit. in Stafford Beer, Platform for change,John Wiley & Sons 1994).3 We quote the formulation Petri elaborated in 1977 as modifi ed by Giorgio De Michelis in, «Computer Supported CooperativeWork: I´informatica tra utente e complessità sociale», in A. Argido - G. Mazzoli, Le nuove tecnologie per la promozione umana.Usi dell´ínformatica fra macro e micro comunicazioni, FrancoAngeli, 1993.

148If we observe the sequence <strong>of</strong> prevailing images 4 it seems clear how, at a certain stage, a changein the paradigm occurred: from computer as a single tool to the upcoming <strong>of</strong> networks as the mostimportant aspect <strong>of</strong> IT. From being a ‘single user’ tool, the computer has substantially become amedium through which human communication is carried out.Table 1.Computer images over timeAccordingly, the meaning <strong>of</strong> the Turing paradigm is not enough for IT. The space that the networksgenerate is what the IT ‘revolution’ is. The calculation and the programming is no longer central,but rather what is central is the domain <strong>of</strong> possible actions in the determined actions space.Similarly the Internet has historically developed with a progressive stratification and overlapping<strong>of</strong> various protocols and standards used and developed beyond what their creators meant:this underlines a development form that is no longer within the original framework <strong>of</strong> theprogramming- calculation model 5 .In fact, the physical networks and protocols exist in a domain <strong>of</strong> linguistic actions that are strictlyinherent to the technological design process. In the traditional model the objective was the design<strong>of</strong> a system that from a family <strong>of</strong> pre-fixed inputs would provide an output requested by anindividual. This was the request: for the traditional mainframes to even the sophisticated dream <strong>of</strong>artificial intelligence.Now the IT problem is the designing <strong>of</strong> the family <strong>of</strong> possible inputs in a human linguistic domain,the output <strong>of</strong> which are the very same domain characteristics and potential. In this context, theuser is part <strong>of</strong> the project and designer at the same time being constantly involved in the process<strong>of</strong> realisation <strong>of</strong> the network he/she is part <strong>of</strong>. Technological networks, human language, and,consequently, social relations are part <strong>of</strong> the same unique biological project.4 Fast Calculator –> Super Intelligence –> Versatile Tool –> Communication Partner –> Communication Tool –> Tool to shapeCommunication.5 The failure <strong>of</strong> the ISO/OSI model in favour <strong>of</strong> the TCP/IP family can be somehow understood under this viewpoint.

149We can now temporarily observe that the technological networks have structurally increasedthe degree <strong>of</strong> connectivity among organisations and this has clearly changed the project <strong>of</strong> theorganisations we are involved in.«A universe is born when a space is cut in two» 63. Cyberspace is always a social spaceAt this point we should not incur in the risk <strong>of</strong> doing bad sociology. Already on an intuitionlevel it seems clear, as Fernando Flores observes, that «Cyberspace is always a social space» 7 .However we must avoid being generic and the solution should not be seek in a generic ‘infosocio-psycho-matics’.We must, instead, have a sufficiently rigorous model that can guide us in theproject design.Let’s now preliminarily give a definition <strong>of</strong> language and its function:«… the fundamental function <strong>of</strong> language as a system <strong>of</strong> oriented behaviours is not the transmission<strong>of</strong> information or the description <strong>of</strong> an independent universe <strong>of</strong> which we can speak <strong>of</strong>, but ratherthe creation <strong>of</strong> a consensual behaviour domain among systems that linguistically interact throughthe development <strong>of</strong> a cooperative domain <strong>of</strong> interactions.» 8This means to understand that in the human language no banally educational interactions arepossible, but its communication functioning origins from the creation/construction, throughrecurred interactions among persons, <strong>of</strong> a consensual domain 9 <strong>of</strong> interactions that cannot bereduced to the physical domain nor to the interaction domain if separately seen. Its functioning isthe result <strong>of</strong> a ‘entrenched’ 10 history <strong>of</strong> linguistic behaviours.«Language, as a consensual domain, is patterning <strong>of</strong> ‘mutual orienting behavior’, not a collection<strong>of</strong> mechanism in a ‘language user’ or a ‘semantic’ coupling’ between linguistic behavior and nonlinguisticperturbations experienced by organism … language is connotative and not denotative,and that its function is to orient the orientee within his or here cognitive domain, and not to pointto independent entities.» 11Accordingly, the project designing <strong>of</strong> hardware, protocols and applications in a network context isno longer designing <strong>of</strong> processes that creates the organisation <strong>of</strong> which the technological network,the applications, the protocols and ourselves are part.6 Humberto R. Maturana - Francisco J. Varela, Autopoiesis and Cognition: The Realization <strong>of</strong> the Living, Kluwer AcademicPublishers, 1980.7 Fernando Flores, The Impact <strong>of</strong> Information Technology on Business, Address to the 50th Anniversary Conference <strong>of</strong> theAssociation for Computing Machinery (ACM97), mimeo, 19978 Humberto R. Maturana, «Biology <strong>of</strong> Cognition» (1970), in Humberto R. Maturana - Francisco J. Varela, Autopoiesis andCognition: The Realization <strong>of</strong> the Living, Kluwer Academic Publishers, 1980.9 See for the meaning <strong>of</strong> Consensual Domain: Humberto R. Maturana - Francisco J. Varela, Autopoiesis and Cognition: TheRealization <strong>of</strong> the Living, Kluwer Academic Publishers, 1980 and, Humberto R. Maturana - Francisco J. Varela, The Tree <strong>of</strong>Knowledge: The Biological Roots <strong>of</strong> Human Understanding, Shambhala Publications, 1992.10 For the meaning <strong>of</strong> ‘entrenched’ cf: Nelson Goodman, Fact, Finction and forecast, The Bobbs-Merryl Company Inc., 197311 Terry Winograd - Fernando Flores, Understanding Computers and Cognition. A New Foundation for Design, Ablex PublishingCorporation, 1986.

150«…from this perspective the communication activity does not represent the information conveyancebetween transmitter and recipient, but is rather the communication itself that becomes the mutualcreation <strong>of</strong> a common universe, through the combined action <strong>of</strong> the two actors: we formulate ouruniverse in terms <strong>of</strong> existence as a social action. There are some language dimensions throughwhich this social ‘bringing forth’ happens. These are the linguistic actions that we continuouslycarry out: statements, promises, requests and declarations. In fact, such a network <strong>of</strong> usualspeeches, with their satisfaction requirements, is not a communication tool but the real plot throughwhich we are defined as individuals.» 12Our efforts are not directed to the attempt <strong>of</strong> developing an IT application that provides a predeterminedset <strong>of</strong> appropriate output but a group <strong>of</strong> supports that extends and empowers theorganisations effectiveness, organisations meaning a consensual domain generated in humanlanguage. It is clear how this perspective changes the objective <strong>of</strong> IT project design.The tools we design come from this approach 13 . We do not simply tend to automatize a humanactivity but we tend to integrate different tools with the aim <strong>of</strong> improving and make more effectivethe increase <strong>of</strong> social connectivity generated by the technological networks.This approach goes beyond the interesting groupware, workflow, knowledge management 14technologies; it is not about thinking an application that ‘automatizes’ something, but it is aboutdesigning the social (linguistic) process network that constitute the organisations in which we areinvolved. On the Internet, this has actually happened in a spontaneous fashion, by making wholefamilies <strong>of</strong> protocols and applications such as e-mail (smtp, pop3, imap), newsgroups (NNTP),Internet Relay Chat, File Transfer Protocol, etc.However, there is no cultural and organisational awareness <strong>of</strong> what has socially emerged and thereis no ability to see how the applications design and implementation are a direct and inherent part<strong>of</strong> the organisational project.«… the domain created by a design is a domain which people live.» 154. Rethinking the organisationsTraditional organisations were and are trivial machines. Inside them even the human participantwas substantially seen as a machine that carries out pre-coded indications. Even the <strong>of</strong>fice wassubstantially seen like a Fordist assembly line.The job in this clerical type <strong>of</strong> context has a low autonomy: in case <strong>of</strong> problems during the carryingout <strong>of</strong> the job, the decision (if not in the ambit <strong>of</strong> pre-coded cases) goes onto the higher hierarchicallevel. The cultural habit allowed the fact that even non clerical jobs have been put in organisationsdesigned with a substantially hierarchical-bureaucratic basis.12 Francisco Varela, Scienza e tecnologia della cognizione, Hopefulmonster, 198713See: www.brainworkers.net14 For an in-depth analysis <strong>of</strong> Knowledge management cf. chapter 5.15 Terry Winograd - Fernando Flores, Understanding Computers Cognition. A New Foundation for Desing, Ablex PublishingCorporation, 1986.

151On the other hand, the presence <strong>of</strong> technological networks implies an increase in the knowledgeworker’s autonomy/independence. He/she has to make decisions being able to rapidly consult his/her co-operation network (team, working groups, suppliers) with no need to involve a hierarchicalescalation. That hierarchy that is useful to keep together large organisations with a low connectivitylevel, here becomes a cultural and cybernetic obstacle for the organisation efficacy.It is clear how the work organisation design can no longer be set aside the technologicalinfrastructure that reduces the coordination costs. The infrastructure is not simply a service for theorganisation: it is its ‘alive’ skeleton, an inherent part <strong>of</strong> its reproduction processes. The design<strong>of</strong> the electronic work environment must be able to be part <strong>of</strong> the “biological” upcoming <strong>of</strong>communication and control processes. We can now synthesise some points for this designing:• The environment must connect in a single space all the knowledge workers involved in thespecific shared domain. This means that, in a transparent fashion, the environment consists inthe consensual domain in which the people are, time by time, involved• The environment must provide both real time (i.e. chat, whiteboard, audio/videocommunicationetc.) and asynchronic communications tools (e-mail, newsgroup, broadcast messages).• The environment must provide the possibility to share domain interrelated documents bymanaging ownership functions for in-progress files, up to versioning managing, depending onthe specific needs.• The environment must have functions that support the group coordination by favouring theflexible management <strong>of</strong> appointments and working processes.• The environment must allow the browsing <strong>of</strong> past files and process• The exit from the environment must coincide with the exit from the consensual domainAn environment that meets the above basic requirements allows to access all the communicationrelated to a domain therefore generating a Collaboratory. The project design <strong>of</strong> this infrastructureis not the making <strong>of</strong> a traditional s<strong>of</strong>tware application but rather it is the design <strong>of</strong> a cooperationnetwork through an electronic environment. The traditional idea <strong>of</strong> two different project designone for IT and one for the organisation has become a cultural obstacle against the networkpossibilities.«“You see it, don’t you? …!” Well, this is the typical way <strong>of</strong> expressing<strong>of</strong> someone constrained by a rule.» 165. Knowledge management: an ambiguous ideaIn the organisation ambit the issue <strong>of</strong> knowledge is particularly crucial. It becomes central in anycontext that enables language-based production processes supported by technological systems; inother words, where the interaction happens through communication flows, followed by the making<strong>of</strong> a product, an event, a s<strong>of</strong>tware, a certificate and so on.A knowledge management system should allow an organisation, to manage its experiences,processes, information to make them available to its human resources, project teams, to those whohave to cope and solve problems. Accordingly, a knowledge management system can be seen asa method that drives the human resources to share their experience/know-how deriving from the16 Ludwing Wittgenstein, Ricerche fi los<strong>of</strong>i che, Einaudi, 1967

152carrying out <strong>of</strong> their job, the relationships developed, the personal education processes, and theextra-work linguistic cooperation, in a common space where everyone can freely access.In its classic definition, knowledge management is a virtuous cycle in which knowledge goesthrough different phases: initially it is an implicit form, after it is socialised and made explicit byits outing and recombination, then becomes shared heritage in an organisation, and then goes backin an implicit shape during the interiorisation phase.However the meaning <strong>of</strong> knowledge management is structurally equivocal:«… ‘information’ and knowledge are now tenaciously considered as market goods. Informationis, obviously, that process through which one acquires some knowledge and knowledge consists inthose processes that integrate past and present experiences in order to make new activities happen,either in the shape <strong>of</strong> neuron activity internally perceived such as a thought and a will or in theshape <strong>of</strong> externally perceivable activity such as language and movement.None <strong>of</strong> the above two processes can be ‘transmitted’ as sentences like: “Universities arerepositories <strong>of</strong> knowledge that is transmitted from a generation to another”, etc, would suggest,because your neuron activity is simply your neuron activity and, unfortunately, not mine.» 17Therefore, knowledge is not an object and actually the term ‘knowledge management’ is ambiguous.Knowledge is simply the adequate acting <strong>of</strong> a system. For ‘adequate acting’ we simply meanthe keeping <strong>of</strong> its identity within the domain in which the system is placed. The upcoming<strong>of</strong> the importance <strong>of</strong> an organisation adequate behaviour looks like that Moliére’s BourgeoisGentilhomme who “finds out ” he speaks in “prose”. Knowledge management is not the discovery<strong>of</strong> a new object to manage but the discovery <strong>of</strong> the basic organisation activity that in the past washidden behind the hierarchical model rigidity 18 .Knowledge management, and its related technologies, after we make this clear distinction, canbe the hint to let emerge self-learning paths, organisational learning based on the subjects’independence and on the cooperation in the production processes, but should not be taken asmagical systems that can stock and release ‘knowledge’.In such a context, there is the real possibility to increase the know-how, this is to define a domain inwhich experiences are shared, opinion and interaction exchanged in real time, if we have availablesimple and integrated tools that allow horizontal communication according to an organisationmodality based on network cooperation, better if connected with variously located interest areas:e-mail, synchronic textual communication, forum, video conference, calendar scheduling.17 Heinz von Foerster, Sistemi che osservano, Astrolabio, 200018 Thomas Koulopoulos del Delphi Consulting Group says: «Over 130 years ago, Karl Marx revolutionized political and economicthought with the publication <strong>of</strong> his manifesto Das Kapital. In it, he called for a world economy in witch the workers owned thefactors <strong>of</strong> production. Today, his vision <strong>of</strong> a grand communist society lies in tatters. It is supremely ironic, then, that at theend <strong>of</strong> the 20th century, the most competitive bastions <strong>of</strong> capitalism have surrendered ownership <strong>of</strong> their most valuable factor<strong>of</strong> production –knowledge– to the workers. This was not entirely intentional. it just so happens that knowledge has becomethe most important factor <strong>of</strong> production for the information economy, and knowledge resides primarily in the minds <strong>of</strong> theworkers. This is a dramatic change in thinking for most economic models, and requires a fundamental reappraisal <strong>of</strong> the waythat organizations manage this newly empowered resource.» (Thomas Koulopoulos, Knowledge Management Toward creating the”knowing enterprise”, http://www.it-consultancy.com/extern/delphi/, 1998)

153The possibility to access an organisation’s available database and files is a further elementthat should characterise a genuine knowledge management, although nowadays the access andbrowsing, due to the tools heaviness and contents wideness, sometimes are prohibitive. Thismethodology, that allows simple (not simplistic) search and browsing, is based on appropriatetechnological choices, but actually deriving from the old approach <strong>of</strong> the 70s mainframes’ world.The knowledge browsing tools are generally designed to provide the ‘right’ answer, but are notdesigned to consider experience. Also here it is supposed that the user encodes what he/she wantsto possibly receive the ‘right’ answer 19 .Tools that give us the right answer once we have defined the problem are not useful, or at least areonly scarcely useful. What we need are tools that help us to define a problem, tools that allow usto communicate and browse among files in order to help us defining what we need and what canbe imagined and carried out.The components <strong>of</strong> an actual knowledge management system can therefore be given as a platformfor cooperation and horizontal communication, a workflow system and a search and browsingengine based on methods that are appropriate to interpret contents. We want to repeat againthat these are only the technological systems, while a knowledge management systems must bedeveloped on the organisational texture itself, by introducing organisational models very far fromthe hierarchical paradigms. In other words, knowledge and innovation are embodied experiencesand the human beings are those who can make them true.The point <strong>of</strong> view to look from is that <strong>of</strong> the observer, who has the role <strong>of</strong> interpreting the signs.The interpretation is the generation <strong>of</strong> meanings, starting from the experiencing <strong>of</strong> the object wewant to know and carrying through one’s knowledge capacity, one’s living organisation.However, things seems to have taken rather a different route: from many sided we hear abouts<strong>of</strong>tware tools for knowledge management as if it were accountancy; or we hear speeches aboutstock management <strong>of</strong> bits <strong>of</strong> knowledge, as if this could be written on a hard-disk and transferredregardless the subject that created it in the experience phase 20 .As a matter <strong>of</strong> fact these interpretations produce technological and organisational involution,because they inhibit the development <strong>of</strong> the organisation showing how much unreasonable andharmful in terms <strong>of</strong> efficacy they are. Any tool that encapsulate information and re-proposes itas knowledge, tends to give an idea <strong>of</strong> knowledge as something that homologates us all the sameand leaves outside all that, on the contrary, distinguishes the individualities and the cooperationnetworks 21 .We want to be nasty: sometimes knowledge management seems to work hard to the further dulling<strong>of</strong> organisations.«… if our desires do not change, nothing changes in fact because we go on living through it thesame confi guration <strong>of</strong> action (<strong>of</strong> emotioning) that we used to live.» 2219 Generically it resolves into a list <strong>of</strong> documents organized with a variously generated rating20 Laurence Prusak (IBM), not being a particularly ascetic theorist, also speaks in a similar way.21 Mutually co-defi ned.22 Humberto R. Maturana, «Metadesign», in V.V. A.A., Technomorphica, V2_Organizatie, 1997

154BrainWare and G.I.M: the human webA cooperation system like BrainWare is instead a meeting point, a sphere <strong>of</strong> the acting orientedtowards the activation <strong>of</strong> socialisation, externalisation and experience recombination processes. Itis based on interaction and linguistic cooperation: it is a knowledge workplace 23 in which the workprocesses are topologically located and at the same time allow the knowledge workers to generateshared creative flows.The web environment makes available the tools by linking them with the user’s activity and settingthe user free from unnecessary technical choices, that are outside the domain in which the userworks. With BrainWare we go from a instrumental logic (e-mail, chat, files etc.) to a logic basedon the common working context (consensual domain) 24 .At any time the user has available the documents, the conference areas, the IRC channels and theapplications that are in the context (consensual domain) in which he moves and communicates.The system is composed by a s<strong>of</strong>tware layer that provides a presentation infrastructure for a variety<strong>of</strong> communication and elaboration s<strong>of</strong>tware modules.The system result is a complete infrastructure for group working. The BrainWare singleuser’s desktop does not only opens up on various communication tools used for the differentcommunication scopes (e-mail, chat, file repository, etc.), but on an environment oriented to thecooperation network in which the user is actually involved.In particular, the G.I.M. knowledge management module 25 is very explicative <strong>of</strong> our previousnotes. It expresses the relationships among signs through a graphic visual, that is a representation<strong>of</strong> a signs’ framework that suggest a network <strong>of</strong> positions and relationships among the variousdocuments. By accessing the knowledge base through G.I.M., a system <strong>of</strong> signs to interpret iscollected and presented, from which the sense <strong>of</strong> a given practice is created.The map made by GIM proposes a classification by contents in relation with all the documents thatare extracted on the basis <strong>of</strong> the query, even, working with large data repository. This implies thatthe user, as interpreting observer, can evaluate which segment to browse. This would be impossiblefor a list represented output that can be totally browsed before being able to make a decision 26 .In accordance with our approach all the s<strong>of</strong>tware is released under the General Public License 27 .23 Following the term used by Gartner Group24 Cf.: Stefano Lotti Consensual domain. una metodologia per la progettazione del il lavoro in rete (BW99001),www.brainworkers.net, 1999.25 Based on S.O.M. (Self Organizing Map). See: Teuvo Kohonen, Self Organizing Map, ed Springer, 2000.26 It is particularly in evidence this fact, because it is usual that the result <strong>of</strong> search could <strong>of</strong>ten be a list: if the number <strong>of</strong> thecorresponding items is small it is objectively more judicious to look through a list, but when there are more than two web page toload, the effectiveness <strong>of</strong> a sequential output decrease vertically.27 See also: GNU project - Free S<strong>of</strong>tware Foundation, www.fsf.org. We also make a special mention to the free s<strong>of</strong>tware developersteam <strong>of</strong> BrainWare system and GIM (in random order): Pierluigi Maori (Robert Newmark), Luca Gatta De Marinis (Infi niteLoop), Andrea Guzzo (Xantar Majere), Roberto Badalini (Rob), Andrea Fino (Faino) and Silvana Broccoli (next) for having madeBrainWorkers work.28 Humberto R. Maturana, «Metadesign», in V.V. A.A, Technomorphica, V2_Organizatie, 1997

1556. Some wishes, to replace conclusionsWhat we have been speaking <strong>of</strong> so far, is something more and something less <strong>of</strong> a theory. It is lessbecause this short space is not sufficient for a proper formalisation, it is more because what wepresent is actually an orientation towards a practical action. We are confident: what can be donewill be done, sooner or later.«This reality arises instant after instant through the confi guration <strong>of</strong> emotion that we live, andwhich we conserve with our living instant after instant. But we know this, if we know that the realitythat we live arise through our emotioning, and we know that we know, we shall be able to actaccording to our awareness <strong>of</strong> our liking or not liking the reality that we are bringing forth withwith our living. That is, we shall become responsible for what we do.» 28BibliographyBeer, Stafford, Diagnosing the system for organisation, John Wiley & Sons, 1985Beer, Stafford, Platform for change, John Wiley & Sons, 1994Ciborra, Claudio (ed.), Infraglobe. Infrastrutture e gestione della conoscenza nelle imprese globali, Etas Libri –Fondazione IBM Italia, 1998De Cindio, Fiorella – Giorgio De Michelis – Carla Simone, «Dimensioni dell’usabilità, universi del discorso es<strong>of</strong>tware d’ufficio», in Sebastiano Bagnara – Attilio Stajano (ed.), Ergonomia del s<strong>of</strong>tware, Clup, 1987De Michelis, Giorgio, «Computer Supported Cooperative Work: l’informatica tra utente e complessità sociale», inA. Ardigò – G. Mazzoli (a cura di), Le nuove tecnologie per la promozione umana. Usi dell’informatica fra macroe micro comunicazioni, FrancoAngeli, 1993De Michelis, Giorgio, Aperto molteplice continuo. Gli artefatti alla fi ne del Novecento, Dunod, 1998Flores, Fernando, The Impact <strong>of</strong> Information Tecnology on Business, Address to the 50th Anniversary Conference<strong>of</strong> the Association for Computing Machinery (ACM97), mimeo, 1997Kohonen, Teuvo, Self Organizing Map, Springer, 2000Maturana, Humberto R..– Francisco J. Varela, Autopoiesis and Cognition : The Realization <strong>of</strong> the Living, KluwerAcademic Publishers, 1980Maturana, Humberto R.– Francisco J. Varela, The Tree <strong>of</strong> Knowledge: The Biological Roots <strong>of</strong> HumanUnderstanding, Shambhala Publications, 1992Maturana, Humberto R., Ontology <strong>of</strong> Observing. The biological foundations <strong>of</strong> self consciousness and the physicaldomain <strong>of</strong> existence, Conference Workbook: Texts in Cybernetics, American Society For Cibernetics Conference,Felton, CA.,18-23 October, 1988Maturana, Humberto R., «Metadesign», in V.V. A.A., Technomorphica, V2_Organizatie, 1997Medina-More, Raul – Gita J. Melkote – Fernando Flores, «Business process: Design and Development», in Y.Jayachandra, Re-Enginering the Networked Enterprise, McGraw-Hill Inc., 1994Raymond, Eric S., The Cathedral & the Bazaar, O’Reilly, 1999Shapiro, Dan – Michael Tauber – Roland Traunmüller (ed.) The Design <strong>of</strong> Computer Supported Cooperative Worksand Groupware System, North-Holland Elsevier Science B.V., 1996Spinosa, Charles - Fernando Flores – Hubert L. Dreyfus, Disclosing new Worlds. Entrepreneurship, democraticaction, and the cultivation <strong>of</strong> solidarity, MIT Press, 1997V.V. A.A., Advances in Self Organizing Map, Springer, 2001Varela, Francisco J.– Evan Thompson – Eleanor Rosh, The Embodied Mind. Cognitive Science and HumanExperience, MIT Press, 1991Varela, Francisco J., Scienza e tecnologia della cognizione, Hopefulmonster, 1987Varela, Francisco J., Autonomie et conoissance. Essai sur le Vivant, Seuil, 1989Varela, Francisco J., “Organism: a meshwork <strong>of</strong> selfless selves”, in A. I. Tauber (ed.), Organism and the Origins <strong>of</strong>Self, Kluwer Academic Publishers, 1991Varela, Francisco J., Ethical Know-how: Action, Wisdom, and Cognition, Stanford University Press, 1999von Foerster, Heinz, Sistemi che osservano, Astrolabio, 2000von Glasersfeld, Ernst, «Distinguishing the Observer: An attempt at Intepretating Maturana», in Methodolologia.Thought, Language, Models, n°8, vol.V, Edizioni Espansione, 1991von Krogh, Georg – Johan Roos, Organizational epistemology, Macmillan Press Ltd, 1995Winograd, Terry – Fernando Flores, Understanding Computers and Cognition. A New Foundation for Design,Ablex Publishing Corporation, 1986

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157PARALLEL SESSION PRESENTATIONSV New structure – better work?

158eLancing – The Future <strong>of</strong> Work?Karsten Gareis, Empirica Gesellschaft für KommunikationsundTechnologieforschung mbH, Germany1 Introduction: What is eLancing?MIT researchers Thomas Malone and Robert Laubacher were the first who declared (in a 1998paper in the Harvard Business Review) the ‘dawn <strong>of</strong> the eLance economy’. They described itas a scenario in which work predominantly takes place freelance and workers get in touch withclients via the Internet, practise telework, and transfer work results via ICT networks. Some haveeven argued that eLancing might become the dominant type <strong>of</strong> work organisation in the not toodistant future (Conlin 2000). eLancers are seen as the logical answer to the flexibility requirements<strong>of</strong> today’s companies: According to this view, companies, which are affected by an increasing needto adapt as fast as they can to ever more volatile market conditions, must have access to a moreflexible workforce so that to labour can be shifted swiftly to where and when it can be used mostproductively.This goes hand-in-hand with the rationale behind some <strong>of</strong> the major current developments inthe field <strong>of</strong> economic organisation such as business process re-engineering, concentration oncore competencies, outsourcing and just-in-time production. All <strong>of</strong> these are believed to resultin radically different requirements with regard to the way work is organised. It can be said thatthe eLancers concept is in some way emblematic for the changes in work organisation that arecalled for by proponents <strong>of</strong> labour market deregulation and modernisation. Main components are(Laubacher and Malone 1997; 2000):(a) eLancers are self-employed freelancers whose working life is organised in a sequence <strong>of</strong>projects which might last only a few hours up to several months or even more than a year.(b) They market their services, according to their preferences and skills, on the open market.(c) For complex tasks, groups <strong>of</strong> eLancers put their skills together to temporarily act like atraditional firm, i.e. create a virtual organisation. These networks disband as soon as the taskhas been fulfilled.(d) Temporary networks <strong>of</strong> eLancers substitute self-management for centralised control.(e) For marketing and collaboration, eLancers rely on electronic marketplaces that are establishede.g. on the Internet.(f) With regard to time and location <strong>of</strong> work, eLancers are free from the constraints facingtraditional employees. Tele-cooperation is essential for working in teams and for communicatingwith clients and suppliers.Many <strong>of</strong> these characteristics are also used to describe how virtual organisations work (e.g.Sydow 1992; Arnold et al. 1995). Both concepts are closely interrelated and need to be discussedin parallel.

159This paper looks first at how eLancers, or rather those that come closest to the definition <strong>of</strong>eLancing, operate in practice (Section 2). In this section attention is drawn to the factors that arelikely to act as barriers to the diffusion <strong>of</strong> eLancing. Thereafter the potential and current availability<strong>of</strong> Internet applications that support virtual labour market transactions are discussed. Central tothis are online work exchanges which are beginning to play a role in the search and recruitingactivities <strong>of</strong> more and more job-seekers and companies respectively (Section 3). Section 4 placesthe discussion about eLancing in the context <strong>of</strong> the general trend towards more flexible ways<strong>of</strong> organising work and explores if available data can support the hypothesis that eLancing willbecome a mainstream way <strong>of</strong> working anytime soon. Finally, some conclusions are drawn. The lastsection also contains suggestions for future research.2 Working on the Internet: eLancing and Its LimitsFor case study research, we selected the multimedia specialist sector (including designers,programmers and project managers who work in mostly digital environments) which we believeis not only representing the potential for virtual labour markets because <strong>of</strong> its forerunner positionwith regard to the application <strong>of</strong> advanced ICTs as well as flexible forms <strong>of</strong> work organisation,but also indicative <strong>of</strong> trends that affect larger parts <strong>of</strong> the labour market, in particular the growingnumber <strong>of</strong> knowledge workers.The latter is the case for a number <strong>of</strong> reasons: First, the convergence <strong>of</strong> information technologyand telecommunications is changing the way companies do business, in particular, the organisation<strong>of</strong> the production process including the relationship between companies (Wigand et al. 1997). Asa consequence, the work process will in all industries increasingly take place in digital modesand environments (Dostal 2000). Second, the multimedia industry has been shaken by economicrestructuring, but the information technology ‘Kondratiev Wave’ is bound to make itself feltthroughout the economy sooner or later. Industry sectors with a long history <strong>of</strong> relative stability andlong-established structures are being turned upside down by the rate <strong>of</strong> change that is enabled byICTs. The multimedia industry can be seen as a test-bed for experiments with innovative ways <strong>of</strong>organising work. Third, the way in which the work process is organised in the multimedia sectoris gradually becoming commonplace across the information or knowledge workforce. Projectbasedwork with a strong emphasis on teamwork and joint responsibility for results is replacingfunction- and task-based work organisation (ILO 2001). A general feature <strong>of</strong> many <strong>of</strong> today’s jobsis a move away from standardised tasks and homogeneity towards multiple, non-routine tasks andheterogeneity (Voß 1998).How do eLancers work in practice, and how do companies make use <strong>of</strong> eLancing as a way<strong>of</strong> organising their production process? The example <strong>of</strong> Rauser Advertainment, a firm thatis specialised on the development <strong>of</strong> computer games as advertising media, shows how ICT’spotential is being exploited to increase competitiveness in an extremely volatile market. It alsoshows that eLancing in practice involves many characteristics that divert from the originaldefinition described in Section 1.Rauser Advertainment projects run from a few weeks to more than a year and involve thepermanent staff <strong>of</strong> six (project management, accounting & controlling, marketing, etc.) togetherwith a varying number <strong>of</strong> freelancers who are deployed from a pool <strong>of</strong> more than 100 specialists

160with whom the company has already co-operated since it began operation in 1993. Specialistsprogram specific parts <strong>of</strong> the s<strong>of</strong>tware and send them to a central server that others can access. Thegeographic location <strong>of</strong> project participants is almost irrelevant.The main asset <strong>of</strong> the company, according to its CEO, is the pool <strong>of</strong> freelancers with whomtrust relationships have been established and who can be called upon when new projects requiretheir skills. Working with virtual teams instead <strong>of</strong> a permanent staff enables the company toreact quickly and flexibly to market demand. The company is not restricted by the skills <strong>of</strong> itsstaff, but can make use <strong>of</strong> other skills that are available on the global freelance market. RauserAdvertainment’s market is characterised by uncertainty. For example, in the course <strong>of</strong> only a fewyears the primary medium <strong>of</strong> distribution for Advertainment products has shifted from diskettes toCDs to the Internet, each requiring different production styles.The company has <strong>of</strong>ten been named as a typical example <strong>of</strong> a virtual organisation, but there is aclear hierarchy in the relationship between the management and freelancers. Project participantsare handpicked to take responsibility for certain parts <strong>of</strong> a project. In this sense, the company actsas a network broker (or lead operator, see Figure and Faisst and Birg 1997) that is located withinthe value chain and co-ordinates all activities.Figure 1 illustrates the relationship between ‘virtual’ organisations and freelancers. From theclient organisation’s point <strong>of</strong> view, participants in individual projects are only occasionally drawnfrom the entire labour market, but from market subgroups. These subgroups, sometimes calledfreelancer or specialist ‘pools’, comprise workers with whom a trust relationship has already beenestablished. Some small companies that operate in highly volatile markets regard their pool <strong>of</strong>freelancers as one <strong>of</strong> their key assets. These pools are not stagnant, but constantly being remodelledto take in new freelancers (as well as to exclude workers who have not met expectations). Poolmembers may have their own small network <strong>of</strong> ‘latent’ collaborators and suppliers from which theycan benefit when taking responsibility for parts <strong>of</strong> project work that are too large or diverse in skillrequirements for them to undertake alone.In the Figure, a labour market with three companies and a number <strong>of</strong> freelancers is depicted. Thecompanies act as lead operators, each <strong>of</strong> which has permanent staff (black spots) and a pool <strong>of</strong>freelancers with whom it co-operates regularly (grey spots). Some <strong>of</strong> these freelancers are workingexclusively for the company (quasi-employed freelancers), but most freelancers have more thanone client and also have their own networks <strong>of</strong> friends and partners with whom they <strong>of</strong>ten work inprojects (spots with broken lines).

161Figure 1:Lead operators and freelancer poolsThe company feels it has to be attractive for potential candidates to be competitive with otherrecruiters. Rauser explicitly aims to be ‘the best <strong>of</strong> clients’ by ensuring that payment is on time (thecompany also uses advance payments as a mark <strong>of</strong> confidence) and <strong>of</strong>fering generous services tolong-time co-operation partners. This can be seen as an attempt to increase the loyalty <strong>of</strong> highlyvalued freelance staff to the company, without undermining the flexibility <strong>of</strong> the operation.Rauser’s permanent staff constantly screen the Internet for potential candidates for vacancies.Word <strong>of</strong> mouth is still important, but is supplemented by the possibility <strong>of</strong> checking candidates’skills (e.g. through their websites on which work samples are available, or on their previouscustomers’ websites). Specialist forums and newsgroups, in which freelancers present their talentsand chat about industry developments are, <strong>of</strong> special importance. Freelancer exchanges are usedfor placing project <strong>of</strong>fers. However, this tended to be successful only for locating candidates forless specialised, more routine, tasks such as standard graphics programming.Rauser Advertainment represents what may be called the frontier <strong>of</strong> developments towardseLancing. Nevertheless the case shows that even companies as innovation-friendly as Rauser haveto cope with problems <strong>of</strong> control, trust, and how to build bonds with valued workers.The main results <strong>of</strong> our total case study research 1 can be summarised as follows:(a) The Internet is indeed used extensively by workers as tools to get in touch with potentialemployers/clients and retrieve background information which helps with self-promotion on themarket; the same applies to recruiters who <strong>of</strong>ten use the Internet as the main source <strong>of</strong> informationabout job candidates.1 It consisted <strong>of</strong> altogether 16 in-depth interviews with employees and freelancers working in this fi eld, managing directorsresponsible for HR management in multimedia companies, and top decision-makers in Internet-based job and project exchanges.

162(b) The virtual labour markets that are beginning to develop do not, however, resemble spotmarkets, but rather a complex network <strong>of</strong> relationships between workers who market their servicesthrough the channels <strong>of</strong> personal and institutionalised contact networks, but seldom on openplatforms such as freelance exchanges.(c) Open-market coordination puts great demands on the ability <strong>of</strong> freelancers to market theirservices. The capability to build trust relationships with potential clients is crucial as trust isessential to create the willingness to take the risk <strong>of</strong> starting a collaboration. This risk is perceivedas being especially high in the trade <strong>of</strong> services where the end product cannot be completelyspecified in advance and when value is not easily measured. For this reason, long-term relationshipsto clients and collaborators are sought. Temporary relationships/networks are mostly confined tomarginal activities.(d) Available technologies such as those <strong>of</strong>fered by online work exchanges are not yet beingconsidered sufficient to support trust-building. Substantial efforts on the part <strong>of</strong> website operatorsare necessary to improve the performance <strong>of</strong> work exchanges in this regard.To find out whether these opinions voiced by (potential) users accurately reflect the quality <strong>of</strong> theservices <strong>of</strong>fered, we decided to analyse existent online work exchanges in depth. In particular, wewere interested in whether online work exchanges can act, through their function as virtual labourmarketplaces, as the backbone <strong>of</strong> the development <strong>of</strong> an eLancing economy.3 Matching Supply and Demand for Labour on the InternetUsing a rational, economic logic based on transaction cost and job search theory it can be shownthat a growing use <strong>of</strong> the Internet can lead to an increase in the efficiency <strong>of</strong> the matchingprocess on labour markets. A better match between worker and employer requirements andcapabilities may lead to faster ‘job-clearing’ on the labour market and thereby to lower frictionalunemployment rates, more freedom from time and space constraints traditionally affecting labourmarket participants, and less costly recruitment. Efficiency gains in this area might also result in ahigher share <strong>of</strong> worker/employer-transactions being executed on the open market instead <strong>of</strong> inside<strong>of</strong> permanent employment relationships.Work exchanges on the Internet are indeed beginning to play a major role as intermediaries in thelabour market by <strong>of</strong>fering innovative and/or high-performance services to recruiters as well as jobseekers.Through our research, which included a website content analysis <strong>of</strong> all work exchanges infour <strong>European</strong> countries (Germany, the U.K., Austria and Switzerland), we explored in what waysthe services <strong>of</strong> these specialised sites differ from traditional intermediaries in the labour market andto what extent the different segments <strong>of</strong> the labour market transaction process are supported. Wefound that the number <strong>of</strong> job listings in online work exchanges is already very high (see Table 1)and that essential turnover is generated by private-sector job site operators (Leonard 2000).

163Table 1:Online work exchange market sizeCountry Austria Switzerland Germany U.K.Total no. <strong>of</strong> work exchanges 36 39 283 199job <strong>of</strong>ferings without PES 35,237 22,799 697,915 399,403job <strong>of</strong>ferings in PES only 18,263 12,159 467,820 373,750Data Source: empirica survey (see Gareis and Mentrup 2001a)We also found that today, most <strong>of</strong> the work exchanges in operation confine themselves to only onesegment <strong>of</strong> the labour market process, namely the matching between supply <strong>of</strong> and demand forworkers (see Figure 2). They supplement traditional media platforms for advertising job <strong>of</strong>feringsand also in part for the services <strong>of</strong> the Public Employment Services (PES), which themselves arealso operating work exchanges. Gains in efficiency that result from using online work exchangesinstead <strong>of</strong> traditional media (e.g. newspaper ads) are likely to benefit in particular workers whoalready hold jobs and therefore are willing to invest only very limited amounts <strong>of</strong> time for jobseekingactivities. Through the use <strong>of</strong> passive search techniques such as simple, semi-autonomousagents that rely on active solicitation <strong>of</strong> user input, users can participate on the open labour market(i.e. present their CVs to prospective recruiters) with very little effort required.Figure 2:Generic Labour Market Process Model and Field <strong>of</strong> Activity <strong>of</strong> Most Online WorkExchanges

164Many potentials for extending services to other parts <strong>of</strong> the labour market process (which could alsosupport those who exclusively work on the web, as eLancers do) have not been exploited yet. Onlya very few freelancer/project exchanges have set out to support the whole labour market process onan Internet-based platform, including the interaction between worker and employer/client (whichin traditional employment relationships is usually dealt with by co-location). Examples includewww.smarterwork.com and www.elance.com. Here, trading partners need to agree on a cleardescription <strong>of</strong> the work product in advance. This seems to limit the applicability <strong>of</strong> integratedvirtual labour markets to niches (such as translation, website programming, design). There remainsthe possibility that trends in the labour market (towards more outsourcing and an increasein self-employment in certain segments) will benefit integrated, Internet-based labour markets.If employment contracts become ‘unbundled’, these kind <strong>of</strong> advanced exchanges might gainconsiderably in importance. Today and in the foreseeable future, however, they will be <strong>of</strong> negligiblesignificance for the overall labour market.Our case study research outlined in Section 2 has already shown that there are still powerfulbarriers that prevent labour from becoming a product that can be traded like goods on electronicmarkets. In the last part <strong>of</strong> this paper, we ask whether general trends on the labour market supportor refute the hypothesis that the properties <strong>of</strong> eLancing are becoming common-place in EU labourmarkets.4 Is eLancing Becoming a Mainstream Model for Work Organisation?The current number <strong>of</strong> self-employed freelancers who might be described as eLancers is very hardto measure for lack <strong>of</strong> a clear operationalisation. ‘Free agents’, which many regard as a preliminarystage in the development towards eLancing (Laubacher and Malone 2000), are believed to accountfor 30% <strong>of</strong> the US labour force (Kelly Services 1999), but mostly these numbers are derived at bysimply counting all those that work in atypical forms <strong>of</strong> employment. Similarly Pink (1997) addsup the self-employed, the independent contractors and temporary workers and arrives at a number<strong>of</strong> 25 million free agents, 16% <strong>of</strong> the US workforce. Is it appropriate to assume that all <strong>of</strong> theseworkers will become eLancers in the near future, acting as precursors <strong>of</strong> a general shift towardseLancing which will encompass large parts <strong>of</strong> the labour force?Evidence collected by empirica through a set <strong>of</strong> representative surveys in 1999 suggests otherwise(Gareis 2001): Although the share <strong>of</strong> teleworkers among the self-employed is considerably highercompared to the total workforce (almost 30% <strong>of</strong> all teleworkers are self-employed, against only17% <strong>of</strong> all non-teleworkers), the large majority <strong>of</strong> the self-employed still rely on traditionalcommunication media for reaching their clients and for collaborating with business contacts. Evenexcluding workers in the primary sector, the shares <strong>of</strong> workers who tele-cooperate regularly orat least occasionally are substantially lower among the self-employed then among the total workforce (see Table 2) with the exception only <strong>of</strong> Denmark and (to some extent) the Netherlands. Telecooperationwith external workers is more widespread among employees working in companiesthan among the self-employed (!), although the latter have more external contacts with clients andcustomers.2 excluding workers in primary sector

165Table 2:Tele-cooperation in Europeworkers who tele-cooperate as % <strong>of</strong>all workersregularly(in %)occasionally(in %)not(in %)Self-employed workers who telecooperateas % <strong>of</strong> all self-employed 2regularly(in %)occasionally(in %)not(in %)Denmark 26.0 5.9 68.1 35.7 0.0 64.3Finland 43.4 6.9 49.7 40.5 0.0 59.4France 21.7 4.8 73.5 10.7 3.6 85.8Germany 26.8 5.3 67.9 13.6 9.8 76.7Ireland 32.1 5.4 62.5 16.6 6.5 76.8Italy 17.6 9.8 72.6 9.7 11.7 78.6Netherlands 29.9 15.5 54.6 20.0 28.9 51.2Spain 19.7 4.2 76.1 12.7 6.4 81.0Sweden 29.9 7.9 62.2 21.0 16.3 62.7U.K. 37.5 5.2 57.3 14.7 1.7 83.6EU10 28.2 6.7 65.1 13.6 8.1 78.3Data source: ECaTT 1999 (n=3,895), see Gareis 2001This means that there is no sign that a significant share <strong>of</strong> today’s self-employed freelancers willconvert into e-lancers any time soon, as they have not even started making use <strong>of</strong> the most basictools <strong>of</strong> electronic collaboration. One should also be careful before taking other trends towardsgreater flexibility in work organisation as precursors <strong>of</strong> a dissolution <strong>of</strong> employment relationshipsinto an eLancing labour force.It is true that ICTs have enabled increases in flexibility in all <strong>of</strong> the main categories <strong>of</strong> change(time, place, contract and work content). With regard to working time, companies now <strong>of</strong>fer/demand models that are much more variable and adapted to the requirements <strong>of</strong> workers and/orthe company than they have been in the past. However, the more these measures enhance internalflexibility, the less companies need to revert to raising external flexibility through outsourcing<strong>of</strong> activities to subcontractors or freelancers (Bosch 2000). The working time situation <strong>of</strong> thedependent employed workers gradually becomes more similar to that <strong>of</strong> the self-employed. Thisshould not be interpreted, however, as a sign that employee status is eroding. It indicates rather thatdependent employment arrangements are adapting to new requirements.With regard to the type <strong>of</strong> contract, own-account self-employment (without employees) is obviouslyon the rise, but continues to employ only a small minority <strong>of</strong> the total labour force. The fact thatthe highest shares <strong>of</strong> own account self-employed are to be found in the less developed EU MemberStates indicates that most <strong>of</strong> these workers are in personal services and trade rather than in theknowledge economy. The share <strong>of</strong> self-employed workers who are engaged in activities which aresuitable for e-lancing is most certainly very small.There is only limited evidence that temporary work can be regarded as a first step towardsoutsourcing work to freelancers. It is being used to employ special labour market participants

166such as students, and to smooth the transfer <strong>of</strong> unemployed into permanent work arrangements.Temporary work is spreading fastest and widest in countries in which strict dismissal protectionlaws make it harder for companies to employ workers open ended. If intended, governments inthese countries could employ measures to counteract the trend.Job tenure has remained largely unchanged in almost all OECD countries (with the exception <strong>of</strong> theUSA). This may be explained by the increasing need to tap the tacit knowledge <strong>of</strong> the workforceand develop work environments that foster innovation. Both are made easier by a workplaceculture in which trust and experimentation can simultaneously occur. The need for trust withingroups <strong>of</strong> co-operating individuals acts as a limit to the spread <strong>of</strong> atypical employment formssuch as short-term work contracts, but also freelancing. Labour markets that rely on electronicrepresentation <strong>of</strong> market participants in general present a magnified ‘trust dilemma’ becauseobtaining the information needed to assess someone’s characteristics is even more difficult because<strong>of</strong> the diminished information richness <strong>of</strong> the electronic medium as compared to face-to-facecommunication.With regard to work content and the applied skills <strong>of</strong> workers, a more frequent change <strong>of</strong> function,job enrichment and job enlargement, but also deskilling are strategies companies use to increasetheir flexibility. One the higher end <strong>of</strong> the skills/qualification spectrum, (mostly) informal contractsbetween employer and worker have been changed so that more responsibility over structuringthe work is handed over to employees. As boundaries <strong>of</strong> work relationships become blurred andmanagement by objectives instead <strong>of</strong> instructions is introduced, workers gain freedom <strong>of</strong> action,but have to pay for this by taking on the duty <strong>of</strong> structuring their work in a way that enables themto cope with it. These changes take place inside <strong>of</strong> regular employment relationships, althoughthey may to some extent prepare employees for working self-employed. On the lower end <strong>of</strong> thequalification spectrum, deskilling can be observed as the know-how that formerly was embodied inworkers has been codified and automated in computer systems. Such deskilling benefits companiesbecause they can now draw a greater share <strong>of</strong> their staff from the contingent workforce whichenables them to cut their payroll. In this case, ICTs increase only company-centred flexibility,whereas workers lose bargaining power.In any case, the available data confirm that the stability and continuity <strong>of</strong> employment structureshave been underestimated by many observers and commentators. Developments are not uniformand are not unidirectional. But there is the possibility that available data conceal many features<strong>of</strong> work that have been undergoing significant, if not fundamental change, but are not reflected inbasic features <strong>of</strong> work such as the type <strong>of</strong> formal contract. Against this background, the ILO (2001:n.p.) states that ‘employment stability is no indication <strong>of</strong> the absence <strong>of</strong> change’. This change,however, does seem largely to take place inside regular employment relationships. Rather than anextinction <strong>of</strong> the regular employment relationship, we agree with Kleinhenz (1998) who foreseesa gradual change towards a redefinition <strong>of</strong> regular employment models in the EU which thenwill encompass patchwork careers, stints in self-employment as well as dependent employment,different work time models, etc., without sacrificing basic social insurance standards.

1675 ConclusionsMalone and Laubacher, the fathers <strong>of</strong> the concept <strong>of</strong> ‘e-lancing’, have contributed greatly to publicdebate by outlining a future that stands in striking contrast to the present status quo. The scenariothey developed is in line with anecdotal evidence about how the world is changing which almosteverybody hears about in his or her daily life. Indeed, as our case study research in the multimediaspecialist sector showed, more and more freelancers regard the Internet as their most importanttool to get in contact with clients and collaborators, execute work tasks and deliver work products.The main difference between the behaviour <strong>of</strong> these workers at the forefront <strong>of</strong> the DigitalRevolution and the theoretical concept <strong>of</strong> eLancers is that real-life freelancers strive for longstandingrelationships with clients and business partners and do not rely on open marketplacesfor contracts and resources. Many self-employed multimedia specialists create network structuresaround them which resemble traditional organisations, in particular with regard to the role <strong>of</strong>trust between participants, but which also allow for a high degree <strong>of</strong> flexibility to adapt tovolatile environments. Another important difference to the scenario <strong>of</strong> Laubacher and Malonelays in the degree <strong>of</strong> control that is exerted even in so-called virtual organisations: Mostly, ‘leadoperators’ exist that pick eLancers to work for them. Self-management <strong>of</strong> eLancers inside <strong>of</strong> virtualorganisations is extremely rare.Online work exchanges have started to exploit the potentials <strong>of</strong> the Internet technology, but theyare largely confined to the rough matching stage where they increase the efficiency <strong>of</strong> job-seekingand recruiting processes. Only very few existent work exchanges are capable <strong>of</strong> supporting virtuallabour market transactions including not only the rough matching, but also the negotiation, workperformance and work delivery/remuneration stage <strong>of</strong> the labour market transaction process. Theseare targeted at very specialised niches, such as translating, website and other design, certainprogramming, routine consultancy etc. It is especially the need to define and describe the workproduct in detail beforehand that limits, for the time being, the applicability <strong>of</strong> truly virtual labourmarkets to small parts <strong>of</strong> the labour market.Looking into general trends towards increases in flexibility on the labour market we found that alot <strong>of</strong> the change that takes place does so inside <strong>of</strong> permanent employment relationships. The morethe EU workforce is moving into more knowledge-intensive activities requiring higher levels <strong>of</strong>qualification (a likely result from the demographic trends that lead to decreasing numbers <strong>of</strong> labourforce participants), the more companies need to bind workers to them by <strong>of</strong>fering job place safetyand long-term prospects for life-long learning and fostering employability. Less skilled workersmay be pushed into the ‘contingency workforce’ made up <strong>of</strong> temporary and part-time workersand also the ‘seemingly self-employed’, but these hardly represent a precursor <strong>of</strong> eLancing sincecontingency workers are <strong>of</strong>ten subject to strong control by the organisations that hire them.More research efforts should concentrate on the way companies reorganise internal labour marketsto increase the flexibility <strong>of</strong> labour deployment without having to resort to external flexibilitymeasures (such as hiring freelancers). Research and policy recommendations that originate in theUSA cannot be directly applied to the EU context as many EU governments (and citizens) stillregard permanent employment relationships, albeit less strictly defined than it has been in the past,as the main way <strong>of</strong> how work should be organised. There is only little evidence that permanentemployment relationships are opposed to the requirements <strong>of</strong> companies in present day’s market

168environments. On the contrary, traditional employment contracts have proven to be adaptable torapid changes in company environments; they have also proven to be able to allow a considerabledegree <strong>of</strong> flexibility without becoming superfluous.That is not to say that certain elements <strong>of</strong> the concept <strong>of</strong> eLancing will not gain considerable spreadand importance. This applies, in particular, to the extent to which individual workers are givenmore responsibility for the way they reach work targets. Robert Reich, the former Labor Secretary<strong>of</strong> the United States, has pointed out (Mandels 2001: n.p.) that ‘the way you gain a promotion todayis to promote yourself. We are becoming an economy <strong>of</strong> free agents. Even full-time employeesare paid depending on their performance’. In this understanding <strong>of</strong> the phrase, free agents do notnecessarily have to be formally self-employed, but they behave more like those who are. This viewis in line with the findings <strong>of</strong> social researchers and psychologists who have looked into how theshape and content <strong>of</strong> work have changed in recent times (e.g. Voß 1998; Büssing and Glaser 1998).Work for dependent employees is gradually feeling more like being self-employed, while on theother hand, self-employed freelancers are integrated in networks that encourage them to behavelike employees in ‘virtual companies’.In all <strong>of</strong> this, the Internet is <strong>of</strong> substantial importance as it changes the way we interact withpeople. It does so mostly by complementing traditional modes <strong>of</strong> behaviour (such as face-to-facejob interviews, which are made more efficient because the preceding selection <strong>of</strong> candidates hasbecome more accurate through Internet-based matching) rather than replacing them.ReferencesArnold, O., Faisst, W., Härtling, M. and Sieber, P. (1995) ‘Virtuelle Unternehmen als Unternehmenstyp derZukunft?’, HMD Theorie und Praxis der Wirtschaftsinformatik, 32(185): 8-23.Bosch, G. (2000a) ‘Arbeitszeit, Arbeitsorganisation und Qualifikation’, Personalführung, 33(10): 52-60.Büssing, A. and Glaser, J. (1998) ‘Arbeitszeit und neue Organisations- und Beschäftigungsformen: ZumSpannungsverhältnis von Flexibilität und Autonomie’, Mitteilungen aus der Arbeitsmarkt- und Berufsforschung,31(3): 585-598.Burkeman, O. (2000) ‘Fast and Loose’, The Guardian, 29 March.Conlin, M. (2000) ‘And Now, the Just-in-Time Employee’, Business Week, 28 August: 94-95.Dostal, W. (2000) ‘Die Informatisierung der Arbeitswelt – Ein erster Blick auf die Ergebnisse der BIBB/IAB-Erhebung’, Beiträge zur Arbeitsmarkt- und Berufsforschung, 231: 151-167.Gareis, K. (2001) ‘The Electronic Freelancing Economy: Myth or Reality? An Overview <strong>of</strong> Evidence’, STAR IssueReport No. 9, www.databank.it/star.Gareis, K. and Mentrup, A. (2001a) ‘Virtualisation <strong>of</strong> Labour Market Transactions: Technological Potential andStatus Quo’, STAR Issue Report No. 7, www.databank.it/star.Gareis, K. and Mentrup, A. (2001b) ‘On the e-Work Frontier: Developments Towards an Internet-based LabourMarket in a Forerunner Industry’, STAR Issue Report No. 8, www.databank.it/star.ILO (2001): World Employment Report 2001 – Life at Work in the Information Economy, Geneva: ILO.Kleinhenz, G.D. (1998) ‘Zum Wandel der Organisationsbedingungen von Arbeit – eine Einführung’, Mitteilungenaus der Arbeitsmarkt- und Berufsforschung, 31 (3): 405-408.Laubacher, R.J. and Malone, T.W. (1997) ‘Two Scenarios for 21st Century Organizations: Shifting Networks <strong>of</strong>Small Firms or All-Encompassing ‘Virtual Countries’?’ Working Paper No. 1, MIT Sloan School <strong>of</strong> Management,21st Century Initiative, Cambridge.Laubacher, R.J. and Malone, T.W. (2000) ‘Retreat <strong>of</strong> the Firm and the Rise <strong>of</strong> the Guilds: The EmploymentRelationship in an Age <strong>of</strong> Virtual Business’, Working Paper No. 33, MIT Sloan School <strong>of</strong> Management, 21stCentury Initiative, Cambridge.Leonard, B. (2000) ‘Online and Overwhelmed: Internet Recruiting’, HR Magazine, 45 (8): 36-39.Pink, D.H. (1997) ‘Free Agent Nation’, Fast Company, 12: 131-140.Sydow, J. (1992) Strategische Netzwerke. Evolution und Organisation, Wiesbaden: Gabler.Voß, G. (1998) ’Entgrenzte Arbeit und Entgrenzte Arbeitskraft. Eine subjektorientierte Interpretation des Wandelsder Arbeit’, Mitteilungen aus der Arbeitsmarkt- und Berufsforschung, 31 (3): 473-487.Wigand, R.T., Picot, A. and Reichwald, R. (1997) Information, Organization and Management: Expanding Markets

169Home Telework As A Key Action To IncreaseWork Satisfaction Among Call Centre OperatorsPatrizio Di Nicola, Dinicola.it research, Italy1. PrefaceTelecom Italia’s ”Service 12” is one <strong>of</strong> the largest call centres in Italy with its almost 4,000employees. Its aim is to give directory assistance to customers, typically by supplying one customerwith the telephone number <strong>of</strong> another, provided that the name and address are known. The serviceis composed <strong>of</strong> 104 centres that are clustered in 33 branches and located all over Italy.Service 12 <strong>of</strong>ficially decided to test telework in July 1998, when Telecom Italia and the tradeunions signed a framework agreement on the applicability <strong>of</strong> home telework at the service. Thisagreement entered its operational phase about nine months later, when 200 voluntary employeesbegan to work at home between March and June <strong>of</strong> 1999. Parallel to the implementation <strong>of</strong>telework, research was approved to monitor the people involved (teleworkers, their managers andfamilies) during the first 15 months <strong>of</strong> home telework.In the beginning <strong>of</strong> the experimentation, and during the present research, the possibilities <strong>of</strong>communication between the operators and their <strong>of</strong>fices were reduced. The existence <strong>of</strong> a singleISDN connection prevented the operators, when online during the working hours, from receiving ormaking phone calls or sending faxes to the <strong>of</strong>fice without going <strong>of</strong>fline. The telephone equipmentallowed them to communicate perhaps only with the manager (not with colleagues or otherTelecom Italia <strong>of</strong>fices), and, in the absence <strong>of</strong> an intranet connection, the fax machine was the onlytool through which the teleworkers received news and orders <strong>of</strong> service.From the point <strong>of</strong> view <strong>of</strong> the researchers, such ”communication poverty” due to the technologicalconditions <strong>of</strong> the experiment had the advantage <strong>of</strong> exacerbating the sense <strong>of</strong> isolation from theother teleworkers <strong>of</strong> the firm, an aspect that is considered the principal disadvantage <strong>of</strong> hometelework. Thus, the problem <strong>of</strong> isolation would be amplified, which would make it possible to fullyassess the benefits raised from telework even in the presence <strong>of</strong> adverse technological factors.The research spanned from June 1999 to September 2000. The positive results <strong>of</strong> the firstexperiment motivated Telecom Italia and the trade unions to agree to expand telework to another110 units in November 2000. The new agreement, taking into account the results <strong>of</strong> the research,upgraded the communication opportunities <strong>of</strong> the teleworkers by supplying them with newworkplaces equipped with a link to the company intranet and email systems.

1702. The Research HypothesisThe main hypothesis <strong>of</strong> the research was that the short-term effect <strong>of</strong> the telework adopted at theService 12 Call Centre would have been a deep transformation <strong>of</strong> the ”double presence” <strong>of</strong> thesubjects involved in the experiment. In fact, while the productive job and the reproductive onestay separate from the temporal point <strong>of</strong> view (this is mainly due to the rigid shifts covered by theoperators), telework brings about the unification <strong>of</strong> the place where these two activities occur. Thatcreates a series <strong>of</strong> problems which we can summarize as follows: the ”social cost” <strong>of</strong> the doublepresence, the restructuring <strong>of</strong> the family-time around the teleworkers, the mismatch between theexpectations from telework and the actual realizations, and the need for a new relationship withcolleagues and bosses. The combination <strong>of</strong> the effects <strong>of</strong> telework on the family sphere and thework sphere can divide teleworkers theoretically into four ideal types:• The enthusiastic (TYPE 1: they derive purely positive effects from telework);• The work deprived (TYPE 2: they perceive positive effects on family, but negative on the job);• The family deprived (TYPE 3: they perceive positive effects on the job, negative in private life);• The victim (TYPE 4: telework has only negative effects on both fronts).Fig. 1The ideal types <strong>of</strong> teleworkersTELEWORK HAS CONSEQUENCES MAINLY ON:EFFECTSON FAMILYRELATIONSEFFECTS ON WORKRELATIONSPOSITIVE NEGATIVEPOSITIVE IDEAL TYPE 1 IDEAL TYPE 2NEGATIVE IDEAL TYPE 3 IDEAL TYPE 43. The Research SubjectsThe purpose <strong>of</strong> the study was to present observations <strong>of</strong> the telework experiment in as multi-sideda way as possible. Therefore, the researchers decided to consider all possible points <strong>of</strong> view: theteleworkers, who were studied via questionnaires and interviews, and the other subjects involved inthe experiment from the hierarchical supervisors <strong>of</strong> the teleworkers to their families. This plurality<strong>of</strong> agents called for the diversification <strong>of</strong> the analytical techniques and a methodology that evolvedduring the research according to the results achieved, which was the best way <strong>of</strong> gathering possibleproblematic experiences <strong>of</strong> the experiment.The principal subjects <strong>of</strong> the investigation were naturally the teleworkers, who were contactedthree different times: at the beginning <strong>of</strong> the experiment (June 1999), and then after eight andtwelve months from the beginning. In the first two cases, all teleworkers were requested to answer

171a structured questionnaire, and in the third case, the research teams carried out free-form interviews<strong>of</strong> a sampling <strong>of</strong> 26 individuals and spouses from all over the country. The first questionnaire wascompleted by 177 teleworkers <strong>of</strong> the total 196 (90.3%), while 146 teleworkers participated in thesecond survey in February 2000 (a 74.5% return rate).Side by side with contacting the teleworkers, the research team surveyed the opinions <strong>of</strong> theService 12 management. Middle management was surveyed with structured interviews realizedin September 1999. The interviews resulted in a very wide appreciation <strong>of</strong> telework, as can beseen in the following paragraphs. The ”line managers” were surveyed in July 1999, during thevery first days <strong>of</strong> the experiment, and again in February 2000, after seven months <strong>of</strong> managingthe teleworkers. The surveys <strong>of</strong> the line managers confirmed the positive findings regarding thetelework experiment. The interviewed managers affirmed that teleworkers had the best productivity,less absenteeism and better motivation to work. However, the interviews also underlined theexistence <strong>of</strong> an organizational culture still anchored to the old-fashioned management style, whichcould reduce the positive impact <strong>of</strong> telework.4. The First SurveyThe teleworking staff was 55% male, and the average age <strong>of</strong> men was 44 and that <strong>of</strong> women 41.Both genders had 16 years <strong>of</strong> seniority at Telecom Italy, but the women had worked more years atthe Telecom Call Centre, and they had higher education than the men. A large part <strong>of</strong> the staff hadconjugated.The working space available for the teleworkers related important information to the evaluatorsabout the teleworking conditions, in particular the room where the workstation was located. Theresearch revealed that this element influenced both the quality <strong>of</strong> working life and the workers’satisfaction. In fact, the availability <strong>of</strong> an autonomous, reserved space separate from the rest <strong>of</strong> thehouse that did not interfere with the normal activity <strong>of</strong> the home and vice versa strictly correlatedwith the satisfaction towards telework. Only 53.4% <strong>of</strong> the interviewed people declared they hadtheir work stations in studies or hobby rooms (figure 2), and it was an interesting curiosity that itwas mainly men who had comfortable rooms for carrying out the job (57,7% Vs 35.9%).Figure 2.Room used for teleworking

172The interviewed workers lived on the average 39 kilometres from the <strong>of</strong>fice; men lived farther at50 km vs. 25 km. Workers in northern Italy lived nearer to the <strong>of</strong>fice (24 km), while those in thecentral and southern regions were farther away, on the average 53 and 56 km, respectively.Despite the differences in distance, the time it took to reach the job was substantially the same:the workers living farther away spent about 1h 15min every day getting to the <strong>of</strong>fice, while thosecloser by had an average commuting time <strong>of</strong> 50 minutes. This was probably because the far-awaycommuters used freeways and highways from villages to large cities (faster roads with less traffic),while the others crossed large cities travelling only few kilometres but losing more time in trafficjams. The commuting costs were very high with an average monthly expense <strong>of</strong> around 110Euros.The commuting problem was the most important motivation among the staff to favour teleworking.In fact, the biggest percentage <strong>of</strong> those interviewed wished to reduce their commuting time torecover some <strong>of</strong> the time to spend it on themselves or even more for the benefit <strong>of</strong> the whole family.The daily need to cover long distances, combined with the shift system, did not allow these peopleto easily find a balance between their jobs and personal spheres.Table 1.Reasons for teleworking%More time for family 25.9Reduce commuting time 29Reduce commuting cost 15.9Increase free time 15.6Have higher productivity 5.9Have work flexibility 3.7Have less supervision 1.9Other 2.2The first survey also revealed a glimpse <strong>of</strong> the reverse side <strong>of</strong> the medal: the telework candidates,as suggested even by their colleagues who were strongly against telework in many cases, had fear<strong>of</strong> possible degradation <strong>of</strong> their social dimension, and many saw the risks in the separation fromthe firm environment, which could exclude them from the dynamics and information flow <strong>of</strong> thefirm.

1735. Telework Eight Months LaterDuring the first eight months <strong>of</strong> teleworking, almost all workers (96.5%) had returned to the <strong>of</strong>ficeat least once. In the majority <strong>of</strong> cases (69.8%), the re-entry was motivated by a request fromthe boss, while two workers out <strong>of</strong> ten had requested their managers for a permission to spenda work day in their old workplace, and 5% <strong>of</strong> the teleworkers went to the <strong>of</strong>fice out <strong>of</strong> personalinitiative. The teleworkers used these days in the <strong>of</strong>fice mainly for visiting administrative branches,informal meetings with bosses, having c<strong>of</strong>fee with old friends, etc. This time the teleworkers foundpositive feedback in the <strong>of</strong>fice: the ”non-teleworkers” had sharply changed their opinions towardsteleworking. Between the first and the second survey, the positive judgement on telework increasednot only among the relatives (table 2) but above all among the colleagues (table 3), who had beenvery critical in the first survey. In fact, the attitude ”against telework” decreased by 30.4 per cent,which resulted in an increase among those ”in favour”.Table 2.Relatives´ opinion on telework% Second Survey First Survey DifferenceStrongly in favour 75.7 64.7 + 11.0In favour 20.8 30.1 - 9.3Against 0.7 3.5 - 2.8Strongly against 0.7 0.0 +0.7Don’t know 2.1 1.7 + 0.4Table 3.Colleagues´opinion on telework% Second Survey First Survey DifferenceStrongly in favour 10.3 11.4 - 1.1In favour 48.6 33.1 + 15.5Against 13.7 40.6 - 26.9Strongly against 3.4 6.9 - 3.5Don’t know 24.0 7.4 + 16.6We posed some questions in both surveys for the purpose <strong>of</strong> measuring the appreciation towardssome expectations <strong>of</strong> telework. Since the only difference between the two surveys related to theexistence <strong>of</strong> telework, it was possible to create an index <strong>of</strong> work satisfaction that was affected onlyby the teleworking conditions.During the elapsed eight months, work satisfaction increased in almost all areas considered, andthe relationships with hierarchical supervisors became especially good (Table 4). The less positiveaspect was still the lack <strong>of</strong> career opportunities, which depended mainly on the organisation <strong>of</strong>Service 12.

174Table 4.Work satisfaction by genderAverage score Second Survey First SurveyMale Female Male FemaleManagers 3.9 3.9 3.6 3.8Colleagues 3.7 3.7 3.7 4.1Security <strong>of</strong> employment 3.7 3.7 3.7 3.7Working time 3.4 3.4 2.8 3.3Holiday assignment 3.4 3.4 3.0 3.0Quality <strong>of</strong> job 3.3 2.9 2.6 2.7Salary 3.3 3.5 3.0 3.6Distance from home 3.1 3.4 2.3 2.3Career opportunities 1.7 1.7 1.5 1.5(Index spanned from 0 to 5)In summary, the second survey confirmed the macro-tendencies <strong>of</strong> the first round <strong>of</strong> analysis: thelargest part <strong>of</strong> the sampling was satisfied with their jobs, and the dissatisfaction was very contained.The latter can be considered the most important finding <strong>of</strong> the second survey, which showed thatthe telework experience contributed to the strong decrease (from the 14.5% <strong>of</strong> the sampling to 5.4%) in the number <strong>of</strong> those dissatisfied at the job. (See figure 3.)Side by side with the reduction <strong>of</strong> the dissatisfaction toward the job grew the satisfaction towardsthe firm. Between the two surveys, the number <strong>of</strong> people who declared they would not leaveTelecom Italia, not even for a more gratifying or better paying job, increased from 40.5 to 45.4%. Telework seemed to make the disadvantages <strong>of</strong> the job more bearable, thus ensuring a bettercommitment <strong>of</strong> the individuals towards the firm.Figure 3.Evolution <strong>of</strong> work satisfaction

175In both the surveys, the workers were asked to point out the advantages and disadvantages <strong>of</strong>telework, and it was therefore possible to compare the expected benefits with the ones that hadactually been achieved after 8 months <strong>of</strong> telework. The item with the largest increment <strong>of</strong> changewas the one related to productivity (from 5.9% to 11.7%), while the one with the largest negativepercentage change was the reduction <strong>of</strong> commuting time, which benefit was indicated as the mostimportant one by 29% <strong>of</strong> the sampling during the first survey, and only by 22% eight months later.(Table 5.)Table 5.Advantages <strong>of</strong> telework% Second survey First survey DifferenceBetter productivity 11.7 5.9 + 5.8Economic savings 18.7 15.9 + 2.8More time for self 17.6 15.6 + 2.0Other 3.3 2.2 + 1.1Less commuting time 22 29 - 7Better fl exibility 0.4 3.7 - 3.3More time for families 24.5 25.9 - 1.4Less Control 1.8 1.9 - 0.1The most notable among the disadvantages was the lack <strong>of</strong> information on what was happeningin the <strong>of</strong>fice (Table 6). Teleworkers required a constant flux <strong>of</strong> information from the firm not tobecome ”organisationally isolated”. After eight months into the experimentation, the results clearlyindicated that this still was the most critical aspect <strong>of</strong> working at home, and it required a lot <strong>of</strong> effortfrom the firm that had to come up with new paradigms for managing the internal communication.A disadvantage that grew from the first to the second survey was the risk <strong>of</strong> having less careeropportunities. This complaint was a result <strong>of</strong> the lack <strong>of</strong> communication, which made theteleworkers feel isolated from the <strong>of</strong>fice, and therefore afraid <strong>of</strong> being less visible in the careerpath.Table 6.Disadvantages <strong>of</strong> telework% Second survey First survey DifferencePoor information from <strong>of</strong>fi ce 49.3 35.8 + 13.5Career opportunities 14.5 11.3 + 3.2Isolation from colleagues 21.7 29.6 - 7.9In comprehension with family 0.5 5.1 - 4.6Other 1.8 3.6 - 1.8Diffi culty to change shifts 7.7 9.1 - 1.4In comprehension with boss 0.9 1.8 - 0.9Less help 3.6 3.6 0.0

176The second survey also revealed evidence that technology constituted a crucial element in thesuccess <strong>of</strong> the experiment. During the months <strong>of</strong> the experiment, a large majority <strong>of</strong> the teleworkersclaimed they had experienced some breakdowns at the workplace: 85.8% <strong>of</strong> the sampling hadsuffered at least a locking (Table 7).Table 7.Workstation breakdowns by durationYes, very short 58.2%Yes, one day 8.5%Yes, more than a day 19.1%No, never 14.2%A crucial question included in the second questionnaire asked the teleworkers to express theiropinions on a possible choice between continuing teleworking and returning to the <strong>of</strong>fice, notthe old, distant one but a new facility close to home. This way it was possible to measure the”strength” <strong>of</strong> the choice to telework and the conviction to continue to do so in future.Over three quarters <strong>of</strong> the sampling did not have any reservations and they ”surely preferred” totelework, while only 4% <strong>of</strong> those interviewed wanted to return to a traditional <strong>of</strong>fice.Figure 4.Back to an <strong>of</strong>fice or working at home?Can we try to identify what determined the different attitudes? In the first place, there was thelogical set up <strong>of</strong> the workplace. In fact, almost all the people (88.3%), who worked in a dedicatedplace like a study, were firmly convinced to continue teleworking; this percentage descended to50% for those who had workstations placed in corridors, and it collapsed to 38.9% for those whoteleworked in the bedroom. This proved without a doubt that the presence <strong>of</strong> an adequate space

177represented an important variable for satisfactory telework, and it influenced in a positive mannerthe motivation to prolong the experience in time. Another important variable was the satisfactiontowards work: people who were more satisfied were even more interested in telework. Was thedistance from the <strong>of</strong>fice a discriminating variable for the decision to continue teleworking? It didnot seem to be, since the individuals who preferred telework were nearer (36 km vs. 47 km) thanthose who affirmed they preferred, either maybe or surely, to work at the Telecom <strong>of</strong>fice.6. A Year Later - Interviews With The TeleworkersFor the third phase <strong>of</strong> the research, it was decided that free-form interviews with the workers beused instead <strong>of</strong> questionnaires like in the previous surveys. Therefore, 26 interviews were realizedwith 18 men and 8 women.By analysing the texts <strong>of</strong> the interviews with an adequate tool, it was possible to track down twogeneral issues raised by the teleworkers: On the one hand, there were the reflections about thechanges experienced in the family and private sphere, and, on the other, those experienced inthe work sphere. The reflections on the work sphere could be divided into four ”discourses”: theconditions <strong>of</strong> working at home, the entrepreneurial control <strong>of</strong> the job, the job to the ”Service 12”,and the conditions for renouncing to telework and the organizational and social isolation.The interviews confirmed the general satisfaction for the conditions <strong>of</strong> the job. Everybodyrecognized that at home “one could work better”, with more “concentration”, there were none <strong>of</strong>the “distractions” and “dispersions” <strong>of</strong> the <strong>of</strong>fice, there was less “noise”, less “absenteeism”, andone could work with more “serenity”. The general judgment on the conditions <strong>of</strong> the job at homewas therefore very positive, especially when compared with the conditions <strong>of</strong> the “physical andmental stress” endured by those who commuted every day.The main problem identified by the majority <strong>of</strong> the teleworkers was the difficulty to “communicate”with their own <strong>of</strong>fice and with other Telecom <strong>of</strong>fices. The communication tools available to theworkers were insufficient in the cases in which exceptional situations were verified, for example“breakdowns”, “power failures”, or also simply when the customers posed special questions thatrequired the assistance <strong>of</strong> a manager.Almost all the teleworkers agreed about the need <strong>of</strong> “another line” or a “green number” tocommunicate with the <strong>of</strong>fice. Many stated that they <strong>of</strong>ten used their “personal telephone” for urgentcommunication with the <strong>of</strong>fice, and they experienced “higher phone bills” due to telework. Besides,it was difficult to stay informed as to what was happening in the firm; the “communication” did notalways arrive with the same timeliness it would have arrived at the <strong>of</strong>fice.If the difficulties <strong>of</strong> communication made the workers feel a little bit “detached” from what wasgoing on in the <strong>of</strong>fice, the “quality <strong>of</strong> the relationships” with the managers and the colleagueswere still very good, and when the teleworkers returned to the <strong>of</strong>fice for any reason, it was “like aparty”.Some teleworkers recognized the lack <strong>of</strong> “daily contact” with their colleagues using phrases like “I miss the human relationship with my colleagues” or “I am sorry to see that I have now less humanintercourse”. But the quantitative prevalence <strong>of</strong> the references to the communication problems and

17<strong>8th</strong>e isolation from the <strong>of</strong>fice, in respect to the few signs <strong>of</strong> social isolation, confirmed that theisolation the teleworkers suffered from was mainly ”organizational isolation”, due to the abnormalflow <strong>of</strong> information.7. ConclusionAt the beginning <strong>of</strong> the research, we had fixed an experimental hypothesis about the work.Fundamentally, it stated that telework would have effects, positive or negative, both on the familyand the work spheres. Depending on the prevalence <strong>of</strong> the positive effects over the others, thehypothesis postulated that our sampling would be divided into four ideal types: the enthusiastic,the family deprived, the work deprived and the victims.As <strong>of</strong>ten happens with experimental studies, the initial hypothesis revealed to be only partiallycorrect. In fact, the ideal types that actually existed in the sampling were five instead <strong>of</strong> four.There was a substantial number <strong>of</strong> individuals (20.5% <strong>of</strong> the total) who stated telework did nothave any influence, either positive or negative, on their condition. The subsequent analysis showeda concentration <strong>of</strong> the individuals towards two poles: the enthusiastic that constituted 43.8% <strong>of</strong>the sampling and the work deprived that made up 31.5% <strong>of</strong> the total (Table 7). The two mostnegative categories, the victims and the family deprived, were almost absent in the sampling, beingrepresented by only six cases in total.Table 8.Typology <strong>of</strong> the Telecom Italia’s teleworkersN. %The enthusiastic 64 43.8The work deprived 46 31.5The family deprived 3 2.1The victims 3 2.1The indifferent 30 20.5Total 146 100.0Five well-identified sociological types correspond to the five categories. The telework enthusiasticsdid not see anything negative in the experiment they were living in. This group was mainlycomposed <strong>of</strong> women (56.3%), married with children, whose homes very far from the <strong>of</strong>fice. Theirsatisfaction towards Telecom Italia was quite high: They appreciated the salary in particular, butalso were satisfied with the quality <strong>of</strong> the job and the career prospects that for others constitutedthe more criticisable part <strong>of</strong> the employment at Service 12. Accordingly, more than the others, theydeclared they would not leave Telecom Italia to seek a better job (57.1% vs. 45.4%). The teleworkenthusiasts did certainly prefer to continue the telework experiment.

179The work deprived were the second most common type in the sampling. They gave a negativejudgment about the effect <strong>of</strong> telework on the work sphere: relationship with the firm becamecritical, the career was at risk, it became difficult to exchange shifts with the colleagues. Malesand females were perfectly equal in this group, they had larger families, a prevalence <strong>of</strong> higheducation and they were slightly younger than the sampling as a whole (42 years vs. 438 years).The satisfaction towards the firm was high, but they complained about bad relationships with themanagers, and this probably was one <strong>of</strong> the factors that contributed to their feeling more isolated.Their main discontent was towards the firm and they would leave if the occasion presented itself.The work deprived would return in the <strong>of</strong>fice more than the other types, 31% against 23.4% <strong>of</strong> thesampling, and would opt to stop teleworking if work near home would be available.The family deprived constituted a dwarfish squad <strong>of</strong> three people: two men and a woman, allmarried with children and had working spouses. They complained about the negative influencetelework had on their domestic life. Their average age was the highest <strong>of</strong> the sampling (48.7 years),and they were the most critical towards the firm: They complained about all aspects, excluding thehuman relationships that they yet considered satisfactory. Perhaps because <strong>of</strong> this, they returnedto the <strong>of</strong>fice very rarely: as few as 5.3 times in eight months, despite being nearest to the firm,only 26 km against an average <strong>of</strong> 40 km <strong>of</strong> the whole sampling. Finally, also reporting a partlynegative influence <strong>of</strong> the telework on the family life, none <strong>of</strong> them would have wanted to interruptthe experiment, probably because they, nevertheless, considered the advantages greater than thedisadvantages.The ”victims” were almost absent in the population, only three workers in total. They were mainlymen, and their vision <strong>of</strong> work, firm and quality <strong>of</strong> working life was very negative. All <strong>of</strong> themwould have preferred to end the telework experience, because, according to them, working fromhome created too many problems: visibility, career development, and scarce possibilities to switchworking hours with colleagues.The last group, named the ”indifferent”, was composed <strong>of</strong> over one fifth <strong>of</strong> the population <strong>of</strong> theexperiment. According to their answers, telework was not such a big innovation, because theydid not experience any changes in their usual life styles. It is important to note that this groupcontained the largest percentage <strong>of</strong> people very critical towards the firm. A large percentage statedthey would be happy to leave Telecom Italia for a better pay (if older) or for a more gratifying job(if younger).In conclusion, the introduction <strong>of</strong> telework at the Telecom Italia’s Service 12 Call Centre must beregarded a very positive innovation. Over 75% <strong>of</strong> the teleworkers appreciated the improvementin their private lives, and their satisfaction convinced even their colleagues, who originally werestrongly against telework. But telework also has a negative side: not the ”personal isolation”, butthe ”organisational isolation”. As we said before, teleworkers require a constant flux <strong>of</strong> informationfrom the firm not to feel ”organisationally isolated”. The survey results clearly indicated that thisstill is the most critical aspect <strong>of</strong> working at home and it requires additional efforts from the firmthat must come up with new paradigms for managing the internal communication.

180Short summaries <strong>of</strong> the other presentations in the sessionNew structure – better work?Harri Melin, Pr<strong>of</strong>essor, University <strong>of</strong> Tampere, FinlandJacques Babot and John Sherwin (EU DG Information Society and DG Employment and SocialAffairs) presented the results <strong>of</strong> the pilot project “From Pilot Project to Standard Practice – ThePlanned Introduction <strong>of</strong> e-Work to the <strong>European</strong> Commission” dealing with telework within theEU Commission. The Commission started their pilot project in January 1999 and it lasted for a yearand a half. The total number <strong>of</strong> teleworkers was about 120. The telework was part-time, and bothhome-based and mobile by nature.Internal and external experts later evaluated the project. According to the internal report, teleworkcould make a valuable contribution by improving the efficiency <strong>of</strong> the Commission and thequality <strong>of</strong> the working life <strong>of</strong> its staff. Attention should be given to a strategy for a more generalintroduction <strong>of</strong> teleworking options for the majority <strong>of</strong> the Commission’s staff. The external reportconcluded that the pilot project had been undertaken pr<strong>of</strong>essionally and effectively, and it producedvery clear and unambiguous results. Immediate action should be taken to extend teleworkingoptions throughout the Commission as widely and rapidly as possible.The staff that participated in the pilot project has been continuing teleworking since the end <strong>of</strong>the project. Experiments with more sophisticated technological support are also being conducted.Evaluation reports have been circulated widely, the findings have been presented, and the role <strong>of</strong>telework has been confirmed in the ongoing reform programme. Telework will be an element in thefuture development <strong>of</strong> the e-Commission.Birgitte Yttri and John W. Bakke (Telenor Research and Development) talked about “Working inPrivate and Public Spaces”. Their starting point was that telework and other forms <strong>of</strong> flexible workchallenge the traditional distinctions between work and non-work activities, as well as the receivedunderstanding <strong>of</strong> where work is to take place. In their presentation, they discussed boundary workin telework, delineating work and leisure, and relationship management in private, public andsemi-public places. The presentation was based on the results <strong>of</strong> three Norwegian and <strong>European</strong>projects.In “traditional work spaces” it is assumed that work tasks, and work tasks only, will be performedin their designated spaces. The daily schedule <strong>of</strong> a “traditional worker” is clearly divided intodifferent locations and activities. The daily schedule <strong>of</strong> a teleworker is mixed or blurred in terms <strong>of</strong>location and activity. You work at home and you also have your leisure at home.Telework challenges the traditional distinctions. Telework and other forms <strong>of</strong> flexible workingdecouple the close links between time, schedule, location and activity. Telework also necessitatesnew forms <strong>of</strong> time, location and activity management. According to the surveys, there are twomain strategies: 1) Segmentators distinguish sharply between work and non-work. 2) Integrators

181divide and blur lines between work and non-work. The degree <strong>of</strong> privacy (openness/being withoutschedules by others) is a key dimension when characterizing work environments. The degree <strong>of</strong>privacy is also relevant for distributed and virtual work environments.Asko Alanen (Jabba Oy) told the story <strong>of</strong> a new kind <strong>of</strong> an advertising agency. Advertisingagencies have traditionally been close to their customers. Jabba is located in Rovaniemi and Oulu,both <strong>of</strong> which are in the northern parts <strong>of</strong> Finland. The key to their success has been the solidcoordination <strong>of</strong> creativity and pr<strong>of</strong>essional know-how into customer-oriented services. This hasmeant that they have had to show their customers that they are different from others and they havethe best price/quality ratio.As an example Mr. Alanen used their “Lapland Safari” (with ski-do) that combines marketing,tourist attractions and business meetings. Jabba is a typical example <strong>of</strong> teleworking in a certainsense. The technical solutions for their daily operations must be reliable. They also must workmuch harder than the advertising agencies in the metropolitan region.The last presentation was by Pekka Himanen (University <strong>of</strong> Helsinki). He talked about hackerethics, which is a new kind <strong>of</strong> work ethic that, according to Himanen, is replacing the protestantwork ethic.The number <strong>of</strong> knowledge and information producers is continuously increasing. In this sphere <strong>of</strong>social division <strong>of</strong> labour, the protestant work ethic is no longer functional. Instead, a new workethic is emerging. It is based on a passionate relationship to your work and your commitment todevelop. You have a creative relationship with your job (cf. Linux), and all this is fun.We are moving towards a society where the basis for economic growth is in creativity, not inmanufacturing or routine services. This requires structural changes in the mental structure. Underthese circumstances, the protestant work ethic simply does not work any more. Work is no longera duty, and there is no clear distinction between work and leisure.The new worker is a hacker, a young and open-minded creator, who is accustomed to beingvirtual. For them virtuality is a mere practical matter. The most important issues are openness andcreativity.

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183PARALLEL SESSION PRESENTATIONSVI Development <strong>of</strong> working life

184New forms <strong>of</strong> work and the legitimacy to organiseBjörn Gustavsen, Pr<strong>of</strong>essor, Work Research Institute,Oslo/National Institute for Working Life, StockholmWe live in a world filled with technological options and imperatives. Every day some technologicalinnovation is appearing, making for new opportunities in business or pleasure. Most options areactually seen as imperatives as well: technology able to improve on business will invariably betaken into use by “our competitors”, so we have no choice but to do it ourselves.To do it, means to organise. “To organise” means to do rather than to be. And to do one must be ina certain position. Not everybody is in the position <strong>of</strong> being able to organise working life or even amodest slice <strong>of</strong> it. This position will, in this context, be called legitimacy.Legitimacy to organise can follow from different sources. One source is historical success: an actoror a group <strong>of</strong> actors has done well in the past. Another is to represent reason: to be able to speak“on behalf <strong>of</strong> the best argument”.As working life and forms <strong>of</strong> work are concerned, technological reason is no doubt taken to bethe prime source <strong>of</strong> legitimacy in our kind <strong>of</strong> society. As technologies are mushrooming aroundus, they make themselves felt with high intensity and much visibility. The one who can speak onbehalf <strong>of</strong> technology is the one who should set the organisational agenda. This seems obvious.Sometimes, however, there is a need to distrust the obvious.Legitimacy to organise must be carried by institutions, or persons: the question is not only thelegitimacy <strong>of</strong> “technological reason”, it is also the exercising <strong>of</strong> this legitimacy. In the earlierphases <strong>of</strong> industrialisation “the technologists” may have been identifiable groups recognised assuch in society but this is hardly the case today. Today there are so many who claim to representtechnological reason that the claims to legitimacy put forth by each individual, group or institutionis drowned in a sea <strong>of</strong> similar claims. Obviously, there are exceptions. These are, however, notexceptions because <strong>of</strong> their claim to represent technological reason but because they are able tosubstantiate this claim better than others. And then, <strong>of</strong> course, the interesting question pertains tothe differences between those who claim to represent technological reason.A second problem emerges from the nature <strong>of</strong> technological reason itself. To function as a source<strong>of</strong> reason making A able to organise B, technology must create a difference between A and B whichis sufficient to make A “the organiser” and B “the organised”. These differences are, however,shrinking. As people become more and more highly educated technological reason less and lessappears shrouded in mystery and more and more as accessible to everybody. When technologicalreason becomes accessible to people in general, new technological advances can be built just onthe utilisation <strong>of</strong> this accessibility. In information technology, for instance, advances are to anincreasing degree made dependent on interaction between technology and user. Then, however,the boundary between technology and user dissolves and technology can no longer legitimate thatothers organise the user.

185Since technological reason in generalised version is on the decline, focus is shifting towardsspecific success as the main source <strong>of</strong> legitimacy to organise. Legitimacy has to be built on concretecircumstances and can generally be built up only within the framework <strong>of</strong> specific organisations,processes or movements.This creates, on the other hand, a challenge. While there is, on the one hand, a drift towardsthe concrete and contextual in the generation <strong>of</strong> legitimacy to organise, there is an obvious needto organise “larger systems”. In a globalized economy with long and complex value chains,with clusters, networks, industrial districts and regions as core units <strong>of</strong> development, numerousrelationships <strong>of</strong> organisation cross the boundaries <strong>of</strong> the individual enterprise. There is a growingneed for actors in the terrain between the enterprises and there is an associated need for new forms<strong>of</strong> legitimacy.The need for legitimacy emerging on this in-between level cannot automatically be supplied byactors whose success have emerged within the framework <strong>of</strong> one single organisation since thechallenge is, after all, to organise relationships between organisations. What can not be provided byindividual enterprises is <strong>of</strong>ten thought to be provided by the nation state. The classical argumentis that the nation state is “superior” to everybody else and hence able to organise not only itself butalso everybody “below”. Even the actors <strong>of</strong> the nation state are, however, facing problems:For “the nation state” to hold the legitimacy to organise it must, itself, act in a reasonablyconsistent way. The traditionalist, but stable, nation state is, however, replaced by the theme<strong>of</strong> the month, the face <strong>of</strong> the week, the winner <strong>of</strong> this evening`s TV contest. The nation stateinitiates a vast number <strong>of</strong> efforts, in numerous spheres, through a large number <strong>of</strong> channelsand mediating bodies. When a continuous stream <strong>of</strong> new policies are to be implemented, theimplementation apparatus grows, however, more and more fragmented. The number <strong>of</strong> scenes fromwhich public representatives can express views on organisation is numerous and there is practicallyno integration between them. The source <strong>of</strong> legitimacy is no longer the nation state as such but thehistorical success or presumed abilities <strong>of</strong> those who are called on to act on behalf <strong>of</strong> the nationstate. In this way, the legitimacy to act on behalf <strong>of</strong> the nation state becomes, like technologicalreason, contextualised and is no longer a universal characteristic <strong>of</strong> the nation state.In organising “large systems” we face, to sum up, a triple challenge:• To create legitimacy to organise the terrain between the enterprises• under conditions where concrete success is a main basis for legitimacy• at the same time as there is a need for co-operation between many different actors.What do the different societies do about this issue <strong>of</strong> links, ties and new forms <strong>of</strong> entrepreneurship?What initiatives are emerging for the purpose <strong>of</strong> forging together the various elements in, forinstance, “innovation systems”?This is the point where such efforts as workplace development programs enter the scene. Adevelopment program is taken to mean a formalised co-operation around the task <strong>of</strong> creatingdevelopment and innovation in workplaces and enterprises and with a configuration <strong>of</strong> actorsgenerally including private as well as public ones and from several different organisations and types<strong>of</strong> organisations. A program can be seen as corresponding to the notion <strong>of</strong> “innovation system”

186as defined by i.e. Lundvall (1992) and Edquist (1997)). Examples are the Finnish WorkplaceDevelopment program (Alasoini & Kyllönen 1998) and the Enterprise Development 2000 programin Norway (Gustavsen et al 2001). Efforts <strong>of</strong> a similar kind are ANACT in France, the Work andTechnology program in Germany (Fricke 2000) and many other which go under different namesand headings but where the main point is to create co-operation across organisational boundaries.In discussing the usefulness <strong>of</strong> such programs focus is <strong>of</strong>ten on the short- and middle term impactswithin each participating enterprise. Working together in a development program with a broadrange <strong>of</strong> actors has, however, to do with much more than the achievement <strong>of</strong> short- or middle termimpacts <strong>of</strong> this kind. It has to do with creating links, ties and relationships between actors, withdeveloping competence to work across organisational boundaries and with the creation <strong>of</strong> newarenas where this work can be performed.Initiators and organisers on the terrain between the enterprises can emerge from all participatingorganisations: the private as well as the public ones. What sort <strong>of</strong> entrepreneurship is needed willbe linked to what kind <strong>of</strong> situation is to be made subject to improvement. There is, for instance, amajor difference between organising an innovation system within the context <strong>of</strong> large globalizedenterprises versus doing it among small enterprises in a local context. One <strong>of</strong> the paradoxes<strong>of</strong>ten encountered is that whereas many candidates for network entrepreneurship join up for studytours to Silicon Valley their real task will, in most cases, be to organise SMEs from conventionalindustries in rural economic landscapes.Initially when some actor or actors take an initiative to bring some organisations together none <strong>of</strong>the actors will have much legitimacy. If and when they succeed, however, the degree <strong>of</strong> legitimacywill grow; they will gain a reputation for being able to operate just in this kind <strong>of</strong> landscape andthis legitimacy can be converted into new initiatives, leading to growth in existing networks and/orto the emergence <strong>of</strong> new networks.Although no-one will have much legitimacy in the start, some actor or actors need to set the ballrolling. While the nation state has, as far as I can see quite successfully, initiated mobilisationprocesses in the terrain between the enterprises here in Finland, the situation is rather differentin my home country: Norway. In Norway, the nation state has pulled almost completely out <strong>of</strong>working life and associated areas. The vast incomes flowing in from the export <strong>of</strong> oil and gas makeefforts to develop new businesses remote at the same time as the nation state seems to see itselfprimarily in the role <strong>of</strong> Uncle Scrooge defending a large money bin against all sorts <strong>of</strong> attackers,including those who want to perform “innovation”. This has left much <strong>of</strong> a vacuum not only asinnovation and business development are concerned but also as such themes as health and safetyand absenteeism are concerned. In spite <strong>of</strong> its heated economy and very strong demand for labourwithin many segments <strong>of</strong> the labour market Norway has one <strong>of</strong> the highest levels <strong>of</strong> absenteeismand permanent exclusion from working life in Western Europe (each day about one quarter <strong>of</strong> thetotal work force is not working, either because <strong>of</strong> absenteeism or because <strong>of</strong> early retirement ondisability pension). Furthermore, the recognition that this may be less owing to a lack <strong>of</strong> adequateresponses within each organisation than to a lack <strong>of</strong> mechanisms that can link different types <strong>of</strong>actors to each other has so far appeared to few.

187The main exception at the moment is the labour market parties, in particular the Confederation <strong>of</strong>Norwegian Business and Industry and the Norwegian Confederation <strong>of</strong> Trade Unions. After havingdeveloped forms <strong>of</strong> co-operation between themselves since the first so-called Basic Agreementwas created in 1935, these parties made, in the early 1980s, a specific agreement on workplacedevelopment (Gustavsen et al 2001). In this agreement they encouraged, and provided legitimacyto, local efforts to improve on productivity and similar goals provided that it implied co-operationbetween employer/management on the one hand and the employees and their representatives onthe other.In promoting local development processes the labour market parties had to not only accept, butactively promote, new types <strong>of</strong> dialogues on workplace level (Gustavsen & Engelstad 1986).While labour-management relationships had, historically, evolved as conflicts conducted byrepresentatives over quantifiable objects the agreement on development presumed an ability tohandle co-operation, broad participation and diffuse themes. In this way the agreement provided anew setting for practical experience.During most <strong>of</strong> the 1980s the users <strong>of</strong> the agreement were generally individual enterprises and themain type <strong>of</strong> activity was labour-management conferences, reflecting the new kind <strong>of</strong> dialogue but<strong>of</strong>ten with too limited follow-up to really turn them into triggering events for more deep-goingchanges (Gustavsen 1993). Although little occurred in the terrain between the enterprises at thistime, some new elements entered the scene as legitimacy is concerned:First, with a growing demand for dialogues internally within each organisation, people who couldact dialogically and promote this as a basic form <strong>of</strong> work gained in status at the expense <strong>of</strong> theold-type “line commander” or “tough negotiator”. Furthermore, since the agreement seemed toprovide something positive to the member enterprises the central parties gained in legitimacy aswell. They acquired, to some extent, status as “development organisers”, a kind <strong>of</strong> status that doesnot automatically befall employer- and union organisationsThis legitimacy made the labour market parties able – in 1990 – to take a next step: Themobilisation <strong>of</strong> more resources to back the agreement and the first involvement <strong>of</strong> a major group<strong>of</strong> public actors: research. The utilisation <strong>of</strong> research could be successfully argued towards ahistorically speaking more or less sceptical membership at the same time as research could bepersuaded to play according to the rules and principles <strong>of</strong> the agreement.A further element that entered the scene at this time was the network perspective, or the idea<strong>of</strong> co-operation between enterprises and between enterprises on the one hand and such supportresources as research on the other. The network idea was not new. Networking between enterpriseshad been going on to some extent already, and even within the framework <strong>of</strong> the joint efforts <strong>of</strong>the labour market parties networking had been recognised and even actively employed. A networkencompassing about a dozen engineering firms called TESA had existed since 1957 (Asheim &Pedersen 1998) and had been used as an example as far back as the 1960s in some <strong>of</strong> the jointtraining efforts <strong>of</strong> the parties. In the 1970s a so-called “job design workshop” run together bythe labour market parties and research was based on bringing six enterprises to work together ineach development cycle (Engelstad & Ødegaard 1979). In the context <strong>of</strong> the 1990 revision it wasdecided, however, to launch branch programs: development efforts based on co-operation betweennational unions and employer associations and covering whole branches, or industries.

188Not unexpectedly, this rather big jump from what was generally a single enterprise strategy andto whole industries proved difficult to achieve. Few viable branch programs emerged. What didemerge, however, was a growing number <strong>of</strong> smaller networks: typically five to ten enterprisesjoining forces to improve on themes like training and competence development, productivity,product development, quality control and similar. The networks were generally <strong>of</strong> modest “mass”but they allowed for concrete co-operation between the participating enterprises.As a consequence <strong>of</strong> its intention to actively mobilise research to support the agreement, the labourmarket parties initiated – in the early 1990s – a program for this purpose, in co-operation withthe Research Council <strong>of</strong> Norway and the State Fund for Economic and Regional Development.Called “Enterprise Development 2000” a main function <strong>of</strong> this program was to extend the linksand ties between enterprises, between enterprises and research, between enterprises and otherrelevant actors, <strong>of</strong>ten regional ones, including the regional representatives <strong>of</strong> the labour marketparties themselves. In interviews conducted with the enterprises on behalf <strong>of</strong> an internationalbenchmarking group – with members from Sweden, Finland, The UK, Germany and France – theenterprise representatives themselves stress this linking function as a core one. They also generallyreport positive effects on productivity and innovative capacity but in a sense these results aretaken more to demonstrate the force <strong>of</strong> the co-operation than to be exceptional in their own right(Gustavsen et al 2001)In the third phase <strong>of</strong> the unfolding <strong>of</strong> the agreement on development – a new program called ValueCreation 2010 – the major new step is to strengthen the regional development coalitions. (Thenotion <strong>of</strong> “development coalition” corresponds roughly to the concept <strong>of</strong> “partnership” which, inturn, is <strong>of</strong>ten identical to the co-ordination roles in innovation systems). The point is to strengthenthe degree <strong>of</strong> interaction, in particular between the actors in the public support apparatus, with aview to promoting development processes on a regional level, alternatively an industry level. Inthis way Norway moves along the same trajectory as many other <strong>European</strong> countries and eventhe policies <strong>of</strong> the <strong>European</strong> Union itself where the regional plays a major role. Although anykind <strong>of</strong> “region” in Norway will be thinly populated compared to the <strong>European</strong> averages – infact, the whole economy is comparable to a regional one as much as a nation state economy –a regionalisation <strong>of</strong> economic development is nonetheless important in Norway. The reason isjust that enterprises are thin on the ground and that it is, for this reason, extremely difficult tocreate networks or other forms <strong>of</strong> co-operation on industry- or branch basis: there will simplynot be a sufficient number <strong>of</strong> enterprises available with a common industry background withineach separate local context. For the Norwegian economy to reap the benefits <strong>of</strong> networking,co-operation across industries is called for. To organise this kind <strong>of</strong> co-operation there is <strong>of</strong>ten aneed for regional actors.“The terrain between organisations” is growing in mass and complexity. If we look at theNorwegian scene in terms <strong>of</strong> the notion <strong>of</strong> innovation system what we find at the moment is alarge number <strong>of</strong> initiatives. Enterprise networks, technology centres, business centres, innovationparks, clusters, even efforts at creating “industrial districts” and “learning regions” are appearingby the numbers. Excepting a few co-operation schemes in the oil and gas sector all are, however,small. One <strong>of</strong> the few “national initiatives” to promote innovation pertains to the microelectronicsindustry, with a main focus on a network <strong>of</strong> 45 enterprises located in the same region, referred toas “Electronic Coast”. The sum total <strong>of</strong> workplaces involved in this national initiative is, however,barely above 2000, which tells a lot about the scale <strong>of</strong> innovation initiatives in Norway. Somenetworks like the abovementioned TESA is in the scale <strong>of</strong> 3 – 5000 workplaces (Hansen &

189Claussen 2001) , the few bigger ones – such as Nordvestforum (Hanssen Bauer 2001) with about50 owner enterprises employing approximately 10 000 people – generally tend to form sub groupswhen running specific development projects. These limitations notwithstanding they still posechallenges <strong>of</strong> organisation and a substantial number <strong>of</strong> new actors with legitimacy to organisehave actually appeared over the recent years. Interesting to note is also that practically all thelarger networks have emerged upon private initiatives rather than public and have received verylittle public support. What is lacking in mass in each network, is, however, made up in number <strong>of</strong>networks.The public support apparatus faces, in this kind <strong>of</strong> terrain, the challenge <strong>of</strong> having to deal –even within each region – with a substantial number <strong>of</strong> networks, each showing its own specialcharacteristics. Each initiative poses its own demands in terms <strong>of</strong> support and services. To meetthese demands the support apparatus has to differentiate and contextualise itself but it still needsto keep itself together as “one apparatus”. The support apparatus can no longer perform its tasksthrough giving out money to pre-specified projects or implementing one single strategy but hasto undertake much more differentiated tasks. The support apparatus consists, furthermore, notonly <strong>of</strong> one organisation but <strong>of</strong> several: some state-level, some regional, some local. They needto co-ordinate their efforts, giving rise to a new set <strong>of</strong> complex tasks in “the terrain betweenorganisations”.Programs like “Enterprise Development 2000” and “Value Creation 2010” are not the only networkoperators. Rather, they are one type <strong>of</strong> initiative in a field with a growing number <strong>of</strong> initiatives.However, programs with research involvement have the potential <strong>of</strong> filling some special functions,in particular the function <strong>of</strong> developing knowledge concerning network organisation. In the sameway as “internal organisation” has been a main theme also in terms <strong>of</strong> research since Max Weber,the shift to networking does not mean to renounce on reflections and analyses. In network societythere occurs, however, a major shift in the platforms from which reflections are taking place.Whereas Max Weber developed a research role based on distance from real events and practicalprocesses, and on the idea <strong>of</strong> identifying universal characteristics <strong>of</strong> organisation (although with anumber <strong>of</strong> modifications as seen from his critique <strong>of</strong> the economic historians Roscher and Knies(Weber 1976)), the notion <strong>of</strong> network prohibits, in itself, this kind <strong>of</strong> research role. In the sameway as a network does, by definition, not lend itself to steering from one single point it does notlend itself to understanding from one single point either. Being a horizontal organisation a networkmust respect the autonomy <strong>of</strong> each member and autonomy is not only the right to represent oneselfbut also the right to understand oneself. Ultimately, the insights in the hows and whys <strong>of</strong> eachnetwork participant has to rest with the participant. In a network context the task <strong>of</strong> researchis not to “understand the actors” but the network. The network is, furthermore, not only a kind<strong>of</strong> structure; it is, above all, a way <strong>of</strong> performing work and as such it is a process. Within theframework <strong>of</strong> a process the knowledge demands do not pertain to “who we are” but to “what wedo”: what action is, at each and every time, most suited to improve on the links between the actors,on their responsiveness towards each other, on their ability to mix impulses to create new hybrids,and so on. There are few general answers to questions <strong>of</strong> this kind: in networking the questionsemerge all the time, in continuously new forms and settings and are never given any ultimateanswer. Research has to be present within the network rather than observe from outside. Only bybeing an inside member is it possible for research to see and grasp the challenges as they emergeat each and every time and help create not only the right response in some generalised form butthe response that is right because <strong>of</strong> its context and timing. This is the kind <strong>of</strong> research role thatcan be seen emerging within the programs but also in many other contexts, such as the context <strong>of</strong>

190the development coalitions being formed in a substantial number <strong>of</strong> <strong>European</strong> regions (Ennals &Gustavsen 1998).A question invariably emerging when this kind <strong>of</strong> research role is indicated is why do we needresearch at all: if it is so that everything is subject to local settlement, why not depend purely onthe practical skills and insights <strong>of</strong> the other actors? Even when they rely strongly on insights andexperiences emerging from practices, the other actors tend, however, to develop complementaryroles. Not everybody in an innovation system is an engineer; there will be economists, designers,marketing experts, venture capitalists and much more, all working interactively. Even whenpractical experience and the locally unique are the driving forces more general concepts andknowledge are always in active use to highlight experience, locate it within a framework and giveit forms and shapes that can make it fit the larger whole identified as the innovation process <strong>of</strong>the whole network. The purpose <strong>of</strong> having research on organisation within this kind <strong>of</strong> contextis simply to have the same resources in terms <strong>of</strong> knowledge present here as is generally the casewithin the other subject areas. Out <strong>of</strong> local experiences more generalised knowledge will <strong>of</strong> coursealways emerge: the point is that each local situation is the primary context and no knowledge canclaim generality unless it proves its worth within each <strong>of</strong> the contexts on which it is brought tobear.With the emergence <strong>of</strong> continuously more multiplex and dense relationships between organisations,the issue <strong>of</strong> organisation itself acquires further dimensions. How to organise becomes an evenmore critical issue. That Europe in general still falls short <strong>of</strong> its potential for innovation anddevelopment, due to a reluctance to set issues <strong>of</strong> organisation on the agenda, can hardly be madesubject to much dispute. Admittedly, North America and in all probability even Japan constitutewhat many may see as less difficult challenges than Europe. Europe is stronger in terms <strong>of</strong>formalised rights and duties, degree <strong>of</strong> organisation according to interests, formalised negotiationsand corresponding institutions and even in interdependencies between politics and workplacedevelopment. Issues <strong>of</strong> organisation are still <strong>of</strong>ten experienced as difficult to place on the agendaand Europe quite clearly lacks the kind <strong>of</strong> “learning event terminology” that evolved in Japaneseenterprises in the high time <strong>of</strong> such notions as total quality, zero stock logistics and lean production(Womack et al 1990; Helling 1991.) Whereas the United States as well as Japan must probably becharacterised as having been more successful than Europe in developing technology, it is a strangeparadox that in Europe there is much more talk about technology and correspondingly less aboutorganisation. When an actor within the <strong>European</strong> Union – the former head <strong>of</strong> DG V Allan Larsson- some years ago developed a green paper on work organisation a door was opened towards a<strong>European</strong> discourse on organisation (<strong>European</strong> Commission 1997). The door was rapidly closedagain and at the moment the agencies <strong>of</strong> the <strong>European</strong> Union contribute little in this field (whereaspapers on technology (and economy) reach continuously new heights). Initiatives are again leftwith nations, regions and even smaller networks. Within this kind <strong>of</strong> context the modest programefforts we can point at in countries like Finland, Norway, Sweden, Germany may not be the mostappropriate answer – they are certainly not the full answer – but they represent efforts to come togrips with the core challenges by placing issues <strong>of</strong> organisation on the agenda. The issues are madesubject to discourse and within networks encompassing a number <strong>of</strong> actors. Even as organisationis concerned, we ensure advances by talking about things rather than by keeping silent aboutthem; by doing something rather than avoid doing something. We do not promote new forms <strong>of</strong>organisation by talking about technological imperatives – what we need to do is to explicitly facethe challenges <strong>of</strong> organisation as such.

191ReferencesAlasoini. T. and Kyllönen, M. (eds.). 1998. The crest <strong>of</strong> the wave. Helsinki: NationalWorkplace Development Program (Ministry <strong>of</strong> Labour)Asheim, B. T. and Pedersen, G. K. 1998. “TESA: A development coalition within a learningRegion”. In: Ennals, R. and Gustavsen, B. (eds.). Work organization and Europe as adevelopment coalition. Amsterdam/Philadelphia: John Benjamins.Edquist,C. (Ed.) 1997. Systems <strong>of</strong> innovation: Technologies, institutions and organisations.London: PinterEngelstad, P. H. and Ødegaard, L.A. 1979. ”Participative redesign projects in Norway:Summarising the first five years <strong>of</strong> a strategy to democratise the design processin working life”. In: The Quality <strong>of</strong> Working Life Council: Working with the quality<strong>of</strong> working life. Leiden: Nijh<strong>of</strong>fEnnals, R. and Gustavsen, B. 1998. Work organisation and Europe as a developmentcoalition. Amsterdam/Philadelphia: John Benjamins<strong>European</strong> Commission. 1997. Partnership for a new organisation <strong>of</strong> work. Brussels:<strong>European</strong> Commission, DG V. Green paper.Fricke, W. 2000. “Twenty five years <strong>of</strong> German research and development programsHumanisation <strong>of</strong> Work/Work and Technology”. Concepts and Transformation, 5(1):133-138Gustavsen, B. 1993. “Creating productive structures: The role <strong>of</strong> research and development.”In: Naschold, F., Cole, R., Gustavsen, B. and Beinum, H. van. Constructing the newindustrial society. Assen: van GorcumGustavsen, B. and Engelstad, P. H. 1986. ”The design <strong>of</strong> conferences and the evolving role<strong>of</strong> democratic dialogue in changing working life”. Human Relations 39(2): 101-116Gustavsen, B., Finne, H. and Oscarsson, B. (eds.). 2001. Creating connectedness: The role <strong>of</strong>social research in innovation policy. Amsterdam/Philadelphia: John BenjaminsHansen, K. and Claussen, T. 2001. “The Rogaland module”. In: Gustavsen, B., Finne, H. andOscarsson, B. (eds.). Creating connectedness: The role <strong>of</strong> social research in innovationpolicy. Amsterdam/Philadelphia: John BenjaminsHanssen Bauer, J. 2001. „The Nordvestforum module“. In:Gustavsen, B., Finne, H. andOscarsson, B. (eds.). Creating connectedness: The role <strong>of</strong> social research in innovationpolicy. Amsterdam/Philadelphia: John Benjamims.Helling, J. Vaerldsmaesterna. Stockholm: SellinLundvall, B. Å. (Ed). 1992. National systems <strong>of</strong> innovation: Towards a theory <strong>of</strong> innovationand interactive learning. London: PinterWeber, M. 1975. Roscher and Knies: The logical problems <strong>of</strong> historical economics. London:The Free PressWomack, J. P., Jones, D. and Roos, D. 1990. The machine that changed the world. NewYork: Rawson Associates

192Innovative Workplace Development and the Future<strong>of</strong> Work- a new R & D -Framework Programmeby the German Federal GovernmentUrsula Zahn-Elliott, Head <strong>of</strong> Division ‘Innovative Work Development’,Federal Ministry <strong>of</strong> Education and Research, GermanyAbstractThe ongoing economic and social change, which is <strong>of</strong>ten referred to as a transition to a knowledgebasedeconomy, generates several new challenges. These challenges confront not only companiesand individuals but, governments, labour market organizations (social partners), and researchersare also faced with these new questions and must find suitable answers and solutions. The changescan generally be described as flexibilization that affects all dimensions <strong>of</strong> work, e.g. working time,work place, work contract and the content <strong>of</strong> the work.This environment set the basic parameters when the German Federal Ministry <strong>of</strong> Education andResearch in January 2001 launched a new Framework Programme on research and development(R&D) in the field <strong>of</strong> ”Innovative Workplace Development and the Future <strong>of</strong> Work”.The aim <strong>of</strong> the programme is to identify and to develop innovative concepts that are suitable forthe work-life <strong>of</strong> tomorrow. They are expected to contribute to• improving the effectiveness and quality <strong>of</strong> working life,• supporting a socially-balanced structural change,• and encouraging more high-quality employment.The political context for the programme is the strategic goal set for the <strong>European</strong> Union: To achievea balance between economic growth, social cohesion and environmentally sound development.The program builds on the experience gained from the former programmes on ‘Humanization <strong>of</strong>Work’ and ‘Work and Technology’ as well as the ‘lessons learned’ from the transformation processin Eastern Germany after the reunification.This paper describes the new approaches <strong>of</strong> the programme in the four action fields:• Developing and supporting competence and employability• Promoting entrepreneurial strategies that support sustainable development• Encouraging equal opportunity and accessing unused human resources• Breaking new trails in implementation and transferThe focus is placed on human resource development, networking, and an open research framework,which is laid out as a learning programme. This approach should allow reflective consideration<strong>of</strong> the development processes and changes necessary as the work progresses. Therefore, it seemsessential that there is a continuing discourse with the main actors in business, the social partners,the scientific community, government etc, to ensure that the programme and projects contribute thesolutions and processes vital to the future <strong>of</strong> work.

193IntroductionThe ongoing economic and social change, which is <strong>of</strong>ten referred to as the transition to aknowledge-based economy, generates several new challenges. These challenges are confronted bynot only companies and individuals, governments, labour market organisations (social partners),and researchers are also faced with these new questions and must find suitable answers andsolutions. Three major aspects define the changes:• knowledge is becoming the driving force for productivity and an increasingly important factor<strong>of</strong> production,• new ways <strong>of</strong> work are emerging which affect all <strong>of</strong> its dimensions, e.g. working time, workplace, work contract and the content <strong>of</strong> the work.• human resources are becoming a crucial factor in achieving competitive advantages inknowledge-intense industries.At the same time a selection process seems to occur. It is the divide between employees who areable to apply and utilise knowledge and those who have insufficient or no capabilities in this field.A shortage <strong>of</strong> skilled labour on one hand and discrimination or high unemployment rates on theother hand reflect this development.Some great hopes as well as many open questions and challenges are connected with the process<strong>of</strong> developing into a knowledge-based economy.Let’s start with the hopes:Networking structures stand as the metaphor for the new organisations <strong>of</strong> the knowledge-basedsociety. On the one hand they seem to promise unlimited diversity and possibilities to expandour horizons for thinking and working. At the same time the inflexible, traditional structures <strong>of</strong>institutions and regulations are cracking open. A quite obvious example for this phenomenon isthat while business and work organisations become open and distributed, the accompanying legalframework is still based on the expectation <strong>of</strong> permanent business and workplaces.Networking makes barriers permeable or even disappear not only within but also betweenorganisations. More openness and transparency are the result. For companies the relationshipbetween partners, customers, suppliers etc. becomes more direct. Therefore the traditionalorganisational structures and hierarchical functions become dysfunctional and can now presentsevere obstacles.The new organisational structures are promising and demanding more autonomy for employees.The application <strong>of</strong> information and communications technologies (ICT) are expected to makework easier in production as well as in <strong>of</strong>fices. They might even lead to new ways <strong>of</strong> work or acompletely new definition <strong>of</strong> work.In order to make some <strong>of</strong> these hopes come true, we must grapple with many open questions andchallenges:

194BoundlessnessThe drawback <strong>of</strong> the network structures is their boundlessness. The erosion <strong>of</strong> traditional workrelations, <strong>of</strong> the so-called regular employment relationship with full-time permanent employmentcontract, with a stable distribution <strong>of</strong> working hours over a fixed number <strong>of</strong> days per week.How can people deal with that newly gained freedom, if the structures that had also <strong>of</strong>fered securityand orientation become frail or even disappear?What is likely to create identity in the organisation beyond all bounds and what helps to keepworking conditions human in the new environment.? These are questions which must be answered,if the hopes placed on the knowledge-based economy are to meet human needs.Increasing complexityWith the increasingly dynamic changes and the networked structures, the resulting problemsare becoming increasingly complex. Flexibilization and individualisation - as consequences -contribute to even higher complexity. The management and communications requirements causedby the multitude <strong>of</strong> work time models applied within one company are just a simple example. Notto speak <strong>of</strong> the inscrutable structures <strong>of</strong> communications in the network.Individuals and organisations are faced with growing requirements for continuous learning. Theseparation/distinction between (formal) learning and working becomes an obstacle to copingwith rapidly changing processes. Therefore the relation between learning and working has to beredefined. A (re)integration <strong>of</strong> learning into the work process and the appropriate organisation <strong>of</strong>work are essential. That is one <strong>of</strong> the lessons learned from the transformation process in EasternGermany after the reunification.The new framework programme ”Innovative Workplace Development andthe Future <strong>of</strong> Work”This environment set the basic parameters when the German Federal Ministry <strong>of</strong> Education andResearch in January 2001 launched a new framework programme 1 on research and development(R&D) in the field <strong>of</strong> ”Innovative Workplace Development and the Future <strong>of</strong> Work”.It is set up as an open framework for research and development and is to be understood as a‘learning programme’. Based on the analysis <strong>of</strong> issues <strong>of</strong> high priority, projects will be defined andcarried out step by step. The emerging results will be fed back in a monitoring process to allownecessary changes.The first term will last for 5 years with a budget that amounts to 150 million DM (75 Mio Euro)(approx. 30 Mio DM per year).The aim <strong>of</strong> the programmeThe programme is part <strong>of</strong> the Federal Government’s goals for research policy during the 14thlegislature which places a strong emphasis on research to improve living and working conditions.The aim <strong>of</strong> the programme is to identify and to develop innovative concepts that are suitable forthe work-life <strong>of</strong> tomorrow. They are expected to contribute to• improving the effectiveness and quality <strong>of</strong> working life,• supporting a socially-balanced structural change,• and encouraging more high-quality employment.1 Bundesministerium für Bildung und Forschung: (2001) Innovative Arbeitsgestaltung - Zukunft der Arbeit Rahmenkonzept

195Building on former programmesThe new programme builds on the experience gained from the former research and developmentprogrammes Humanization <strong>of</strong> Work (HdA) 2 and Work and Technology (AUT) 3 . Their objectivescombined measures <strong>of</strong> socio-political protection with concepts <strong>of</strong> occupational science andtechnology policy. Although the programmes addressed different aspects <strong>of</strong> work, includingindustrial relations, the emphasis <strong>of</strong> the projects was laid on technology development and measuresfor occupational safety and health. One <strong>of</strong> the most important achievements however was thedevelopment <strong>of</strong> a comprehensive understanding <strong>of</strong> innovation as a principle for problem solvingprocesses. This comprehensive understanding <strong>of</strong> innovation includes technological, economic,ecological, social, organisational and human aspects, e.g. health, skills, motivation and creativity.This understanding has served as the basis for structuring the new programme even at the risk <strong>of</strong>repeating the experience .....”that the study <strong>of</strong> organisational innovation has never been more thana poor cousin <strong>of</strong> the study <strong>of</strong> technological innovation’ 4Since the concept <strong>of</strong> industrial production was (and to large degree in Germany still is) the sociopoliticaland institutionally accepted and dominating principle for organizing work 5 . the formerprogrammes were focussed on industrial production. The new programme is intended to closelyexamine and support the necessary transformation from industrialism to concepts that are openfor more employment in services and the knowledge-based economy. That implies neither thecontinued application <strong>of</strong> the industrial model in all fields nor the abolishment industrialism ingeneral.The goal is to apply the maxim <strong>of</strong> the former Humanization Programme - that production has toserve man and not vice versa - in a knowledge-based economy.Action fi elds <strong>of</strong> the programmeFrom a current point <strong>of</strong> view four fields have been identified to condense the relevant issues:1. Developing and supporting competence and employabilityThis field places human resources and the possibilities for individual - personal and pr<strong>of</strong>essional -development in the center <strong>of</strong> activities.Human capacities and resources have become an increasingly important source for innovation andcompetitive strength for companies in the transition process. New technologies and inventionscertainly are important factors, but the potential for innovation - the ability to apply technology ina creative and intelligent manner - is found in people (humans). Competition therefore becomesmore and more a race for human resources. 6Because working conditions are becoming more complex and changing very rapidly employeesneed to adapt to these changes and be able to act competently under uncertainty. Thereforethey need competencies that enable them not just to survive the structural changes but rather toparticipate in the processes and influence them.2 Bundesminister für Forschung und Technologie_ Programm Forschung zur Humanisierung des Arbeitlebens, Bonn 19743 Bundesminister für Forschung und Technologie Forschungs- und Entwicklungsprogramm Arbeit und Technik, Bonn, 19894Williamson, O.E.) The Economic Institutions <strong>of</strong> Capitalism, New York, London 19875 Baethge, Martin (1999): Transformation des Industrialismus - Konturen der Dienstleistungsbeschäftigung im 21. Jahrhundert.In: Fricke, Werner (Hrsg.): Jahrbuch Arbeit und TEchnik 1999/2000. Bonn6Federal Ministry <strong>of</strong> Educations and Research: Germany´s Technological Performance 2000 (summary report)

196That implies that employees have to learn continuously and maintain their capability for learning.Questions and fields for research therefore comprise concepts for self-management in workingprocesses, the basis and conditions for self organized learning in different contexts <strong>of</strong> work, as wellas the possibilities for a modern approach to prevention in ensuring safety and health at work.2. Promoting entrepreneurial strategies that support sustainable developmentTo cope with global competition, companies need successful concepts for managing organisationalchange. Sustainable development in this context refers to the integration <strong>of</strong> social and economic aswell as ecological aspects in entrepreneurial strategies and decision making. Therefore the focus isplaced on organisational innovation, especially organisational learning and networking structures.There is a need to closely examine the transition from old structures to new forms <strong>of</strong> work andbusiness organisation. Points <strong>of</strong> interest include not only the effects <strong>of</strong> introducing for examplee-business in traditional branches but also the possibilities <strong>of</strong> developing a work organisationthat is in accordance with human needs. We need to learn about the characteristics <strong>of</strong> innovativeorganisation and corporate cultures. What types <strong>of</strong> organisation have the most innovative potential?What features <strong>of</strong> regional environments support creativity and innovation? Employee participationplays a crucial role in organisational change. At the same time, networked organisational structurescan become a serious obstacle to participation on the basis <strong>of</strong> our traditional industrial relations.And, last but not least, the old strategy tools - the management and accounting instruments basedon strictly monetary criteria - may not be appropriate for creating a humane future.3. Encouraging equal opportunity and accessing unused human resourcesThe structural changes emerging with the knowledge-based economy have a tendency to exclude(discriminate against) persons who seem to be inadequately qualified or who exhibit personal orsocial aspects which are considered a deficiency. The aim <strong>of</strong> this action field is to prevent thesegroups from being on the losing end <strong>of</strong> the structural changes and company policies. The point isnow to actively take advantage <strong>of</strong> the chances that are also <strong>of</strong>fered by the structural changes, and tocreate and explore new concepts for the employment and integration <strong>of</strong> certain groups in the workprocess.A typical example <strong>of</strong> the problems can be seen in the demographic change and the ageingworkforce. It is important to ensure the employability <strong>of</strong> older people and open new chancesfor employment. An impulse for the necessary paradigm shift was given by the alliance foremployment, training and competitiveness this year in March, but this step alone is not sufficientwhen facing an ageing and shrinking workforce. It is <strong>of</strong> equal significance to pave the wayfor working conditions that permit ageing without discrimination and a productive co-operationbetween the generations. Other examples can be seen in the need to increase the employment <strong>of</strong>women by improving the balance between work and family demands.4. Developing new ways <strong>of</strong> implementation and transferThe success <strong>of</strong> a research and development programme for workplace development depends, inthe first place, largely on whether it is able to respond to questions and challenges arising from thetransition to a knowledge-based economy. Secondly, its importance and credibility are determinedby the practical relevance, broad dissemination and adaptation <strong>of</strong> results.This action field is aimed at developing new ways <strong>of</strong> implementation and transfer to improvethe adaptation <strong>of</strong> results. It includes the winning <strong>of</strong> new partners who have not been involved inworkplace development programmes in the past and an intensified interdisciplinary cooperationamong all branches <strong>of</strong> work sciences as well as between the business and scientific communities.

197Therefore, it seems essential that there is a continuing discourse with the main actors in business,the social partners, the scientific community, government etc, to ensure that the programme andprojects contribute the solutions and processes that are vital to the future <strong>of</strong> work.Work in progress - calls for projects in specific fi eldsThree calls for projects have been published under the framework programme:• research and development on ‘Work in E-business,’• workplace development in virtual corporations,• ideas contest concerning the ‘future <strong>of</strong> work sciences’A fourth call is on the way that will invite projects on ‘developmental factors in setting up andexpanding corporate cultures and environments that encourage innovation’Research and development on ‘Work in E-business’ was the first step to invite projects dealingwith the implications <strong>of</strong> e-business for company and work organisation, for qualification andquality <strong>of</strong> work as well as for health and safety in new forms <strong>of</strong> work. The positive responseto the call showed equally high interest from research institutes and companies. The projectsaddressed a wide variety <strong>of</strong> problems related to introducing e-business in traditional organisationsand branches. Even the trade unions participated in the call. The suggested project will examinehow trade unions must change their services and organisation in order to support their membersin e-business structures. The design <strong>of</strong> many <strong>of</strong> the projects however showed, that companies andthe scientific community have focused on the functionality <strong>of</strong> business plans and the technicalsolutions. The impact on organisational and personal development and the so-called s<strong>of</strong>t factorswere quite <strong>of</strong>ten addressed vaguely or not at all.The second call on workplace development in virtual corporations is supposed to answer some<strong>of</strong> the basic questions that have cropped up with the increasing number <strong>of</strong> virtual corporationsand networked structures. So far there are no adequate answers to what are the requirements forpr<strong>of</strong>essional coordination and communication in distributed work environments. We want to findout what are the requirements and conditions for the design <strong>of</strong> work that is in accordance withhuman needs and takes the qualification <strong>of</strong> employees and management as well as the motivational,social and cultural aspects into consideration.The third call was for an ideas contest concerned with the future <strong>of</strong> work sciences. With thiscompetition, the Federal Ministry <strong>of</strong> Education and Research is inviting the scientific communityto reflect upon the structures, methods and instruments necessary to equip the work sciencesfor the challenges which accompany the transition to a knowledge-based economy. Networkstructures, international and multidisciplinary cooperation and methods for dealing with rapidchanges become essential to the community since the subject <strong>of</strong> their research tends to build onthese features. In a first step, 19 projects have been financed to work out a concept. In a secondstep, the ‘winners’ will be selected and get the chance to implement their idea.

198Development and management <strong>of</strong> the r & d-programmes - orhow to make a programme learnThe programme ´Innovative Workplace Development´ has been launched by the Federal Ministry<strong>of</strong> Education and Research in close cooperation with the Ministries <strong>of</strong> Labour and Social Affairsand Economic Affairs.The Federal Ministry <strong>of</strong> Education and Research is responsible for the development andmanagement <strong>of</strong> the programme and is supported by the project management organisation DLR PT(German Aerospace Center - Deutsches Zentrum für Raumfahrt).The success <strong>of</strong> a programme on workplace development, which is based on the former ´Programmeson Humanization <strong>of</strong> Work in Germany´, depends to a large extent on the participation <strong>of</strong> thesocial partners (trade unions and employer’s associations). The concept was therefore developedin discussions that included researchers, social partners, intermediaries and government. Thediscussion showed that the main actors, especially the social partners, shared the view thatworkplace development is a vital part <strong>of</strong> innovation policy and therefore an area <strong>of</strong> (again) growingimportance in public policy. The approaches and expectations <strong>of</strong> the main actors however varyremarkably. 7The programme management is supported by an advisory body with representatives from tradeunions, employer’s associations - including experts from companies - and researchers .In order to ensure that the programme and projects contribute the solutions and processes vital tothe future <strong>of</strong> work, a continuing discourse with the main actors in business, the social partners,the scientific community, government etc, seems essential. The advisory body will, at least in part,serve that role. Since the unions and the employer’s association mainly represent the traditionalindustrial sectors, there is a risk, that particularly the newly emerging structures and problemsrelated to the knowledge-based economy may not be adequately represented. This is particularlythe case where the role <strong>of</strong> the social partners and the function <strong>of</strong> industrial relations are seriouslyquestioned by the transformation process.The programme will be continuously monitored and evaluated in order to overcome this problem.The monitoring should also ensure reflection and consideration <strong>of</strong> the development processes andchanges necessary as the work progresses. Using these tools, we hope to enable the programme tolearn as it goes.7 Deutscher Gewerkschaftsbund, Bundesvorstand (1999) Zukunft der Arbeit-Unternehmen Zukunft, Initiative des DGB für einInnovations- und Aktionsprogramm der Bundesregierung. BDI, Bundesverband der Deutschen Industrie (1999) Innovationspolitikfür Deutschland Maßnahmen in zukunftsträchtigen Feldern

NotesBaethge, Martin (1999): Transformation des Industrialismus - Konturen der Dienstleistungsbeschäftigung im 21.Jahrhundert. In: Fricke, Werner (Hrsg.): Jahrbuch Arbeit und Technik 1999/2000. BonnBundesministerium für Bildung und Forschung: (2001) Innovative Arbeitsgestaltung – Zukunft der ArbeitRahmenkonzept, Bonn 2001Bundesminister für Forschung und Technologie: Programm Forschung zur Humanisierung des Arbeitslebens, Bonn1974Bundesminister für Forschung und Technologie Forschungs- und Entwicklungsprogramm Arbeit und Technik,Bonn, 1989BDI, Bundesverband der Deutschen Industrie (1999) Innovationspolitik für Deutschland Maßnahmen inzukunftsträchtigen FeldernDeutscher Gewerkschaftsbund, Bundesvorstand (1999) Zukunft der Arbeit - Unternehmen Zukunft, Initiative desDGB für ein Innovations- und Aktionsprogramm der BundesregierungFederal Ministry <strong>of</strong> Education and Research: Germany’s Technological Performance 2000 (summary report)Williamson, O.E. The Economic Institutions <strong>of</strong> Capitalism, New York, London 1987199

200Challenges for Programmatic Workplace Developmentin the Knowledge-Based EconomyTuomo Alasoini, Labour Market Counsellor Ministry <strong>of</strong> Labour, FinlandAbstractThis paper examines challenges for programmatic workplace development in the knowledgebasedeconomy. The author distinguishes three key characteristics <strong>of</strong> this new phase <strong>of</strong> economicdevelopment from the perspective <strong>of</strong> corporate operating environments: firstly, the ability to create,process, store, transfer and protect knowledge has become an increasingly important source <strong>of</strong>competitive strength for companies. Secondly, the ability to learn rapidly and develop constantlyand to efficiently use this ability to generate constant product and service innovations has becomethe key success factor for an increasing number <strong>of</strong> enterprises. Thirdly, the new informationand communication technologies hold a key role as economic growth engines. The themes <strong>of</strong>the knowledge-based economy have not, however, featured visibly in <strong>European</strong> countries inrecent workplace development programmes. Companies in the new, dynamic, rapidly expandingknowledge-based sectors have been few and far between in these programmes. The author seesthat the absence <strong>of</strong> these types <strong>of</strong> company may at worst lead to two legitimacy problems whenwe consider the role <strong>of</strong> these programmes as part <strong>of</strong> innovation policy: firstly, the programmesdo not make for better integration <strong>of</strong> the basic values <strong>of</strong> workplace development policy into thework processes or organizational solutions <strong>of</strong> companies in the economy’s new growth sectors.Secondly, in focusing on traditional sectors the programmes may see the main problems <strong>of</strong>workplace development too much from the perspective <strong>of</strong> the old structures <strong>of</strong> workplaces andassignments about to become replaced, leaving them little to contribute to the new, emergingstructures. The author states that even though the ‘old’ problems <strong>of</strong> Taylorism may still be a relevantobject <strong>of</strong> development intervention in many workplaces, in the new environment the starting pointsfor programmatic workplace development have become more complex. This refers especiallyto the change <strong>of</strong> context and focus <strong>of</strong> development in the increasingly networked corporateenvironments, which leads to growing unpredictability and uncontrollability <strong>of</strong> solutions. Also therole <strong>of</strong> employee participation is under increasing pressure in the new economic environment. Theauthor suggests that there is a need for development <strong>of</strong> overall programme and project designconcepts and the way programmes and projects are actually managed and implemented. The paperexamines in greater detail development strategies and techniques, the qualifications and roles <strong>of</strong>experts, and programme and project management.IntroductionThis paper takes a look at fresh challenges for programmatic workplace development in theknowledge-based economy. The term ‘programmatic’ refers to a situation in which developmentwork in a great number <strong>of</strong> workplaces at the same time is steered by a common framework,<strong>of</strong> which there prevails some kind <strong>of</strong> an agreement between the government, labour market

201organizations, R&D institutes, and management and employees <strong>of</strong> the workplaces. The paperstarts with an overview on key characteristics <strong>of</strong> the knowledge-based economy, followed by anintroduction to the variety <strong>of</strong> approaches to programmatic workplace development in industrialwestern nations. The latter part <strong>of</strong> the paper examines workplace development in the new economicenvironment.The Knowledge-Based Economy – Key CharacteristicsThere has been a great deal <strong>of</strong> discussion in recent years about whether the technologically mostadvanced industrial nations are changing over – or have in fact already changed over – to a newtype <strong>of</strong> economic growth. Specifically, the debate has gained momentum because <strong>of</strong> the economicgrowth and rising productivity, which continued unabated in the USA throughout the 1990swithout any significant inflationary pressure (e.g. OECD 2000). In discussion on this subject, anumber <strong>of</strong> labels have been applied to this new phase. The ‘knowledge-based economy’ is a label,which captures quite well the main features <strong>of</strong> this new phase <strong>of</strong> economic development from theperspective <strong>of</strong> corporate operating environments:Firstly, the ability to create, process, store, transfer and protect knowledge has become anincreasingly important source <strong>of</strong> competitive strength for companies. The growing knowledgeintensity <strong>of</strong> products and operative processes in all sectors <strong>of</strong> the economy will lead to ablurring <strong>of</strong> the distinction between manufacturing and services, and ultimately to obliteration <strong>of</strong>the distinction. Many traditional manufacturing companies do not identify themselves as goodsproducers anymore, because they provide their clients ‘systems’ or even ‘solutions’, i.e. integratedpackages <strong>of</strong> hardware and embedded knowledge-intensive services. Many service companiesalike are increasingly integrated into industrial production networks, as traditional manufacturingcompanies are outsourcing activities, which are beyond their core competence.Secondly, the ability to learn rapidly and develop constantly and to efficiently use this abilityto generate constant product and service innovations has become the key success factor for anincreasing number <strong>of</strong> enterprises. Their main developmental problem is no more rationalizationwithin or optimization <strong>of</strong> the production process, but continuous optimization and development <strong>of</strong>the entire product concept. Giddens describes the ongoing transformation <strong>of</strong> managerial discourse:”When one talks to business people, one is struck by the intensity <strong>of</strong> the pressure <strong>of</strong> ideas on them.They are always thinking: what comes next, what should I be thinking about next? Where can Ifind a niche in this market for a while? They don’t really any longer talk much about problems <strong>of</strong>production. You can’t really do business these days without having a concept” (Giddens & Hutton2000, 26-27).Thirdly, the new information and communications technologies (ICT), based on microelectronics,telecommunications and network-oriented computer s<strong>of</strong>tware, hold a key role as economic growthengines. ICT is the technology base for the greater knowledge intensity <strong>of</strong> goods and services andalso one <strong>of</strong> the factors, which promotes companies to acquire improved capacity to learn. In the1990s, the role <strong>of</strong> ICT as a booster <strong>of</strong> productivity growth was further emphasized by liberalization<strong>of</strong> the telecommunication sector, several technological innovations and accelerated convergence <strong>of</strong>the telecommunication and information technology sectors. At the same time, however, the ability<strong>of</strong> ICT to significantly facilitate the processing <strong>of</strong> explicit, codified knowledge, and lowering

202thus the costs <strong>of</strong> company-to-company networking, has led to a situation where it is increasinglydifficult for companies to construct a long-term competitive advantage from this kind <strong>of</strong> knowledgealone. In the new learning environment companies’ possibilities to protect, let alone monopolize,explicit knowledge will be weakened radically. It would therefore seem that the development <strong>of</strong>ICT creates a somewhat paradoxical situation in which the significance <strong>of</strong> tacit knowledge forindividual companies is emphasized in the knowledge-based economy (Lundvall 2000; Nonaka &Takeuchi 1995).Programmatic Workplace Development in Industrial Western NationsWorkplace development has been a focus <strong>of</strong> interest for government, labour market organizationsand researchers alike in many industrial western nations since the 1970s. Interest in workplacedevelopment was boosted at that time by an increase in job dissatisfaction, absenteeism, labourturnover and industrial action, all <strong>of</strong> which were viewed as signs <strong>of</strong> the crisis <strong>of</strong> Taylorism, Fordismor mass production. In many countries, programmes were launched with the aim <strong>of</strong> improvingthe quality <strong>of</strong> working life, humanizing work or promoting labour-management cooperation.In the 1980s and 1990s, the focus <strong>of</strong> the programmes increasingly expanded to improving theproductivity, competitiveness and innovativeness <strong>of</strong> companies as well.The interest shown by governments and labour market organizations in workplace developmentprogrammes has varied, depending on the period and the country concerned. In Germany andespecially in Sweden, where government and labour market organizations have funded workplacedevelopment more than anywhere else since the 1970s, the volume <strong>of</strong> programmatic developmenthas fallen distinctly in recent years. In certain other countries, for instance Finland and Ireland,programmatic development did not begin until the 1990s. Meanwhile, Anglo-American countries,with the partial exception <strong>of</strong> Australia, have never given this much effort.Despite certain common trends, programmatic workplace development has developed differentlyin different countries, equally where theoretical approaches, programme designs and institutionalarrangements are concerned (Business Decisions Limited 2000; Gustavsen et al. 2001; Naschold1994). The institutional environment in which companies operate and in which labour, labourmarket and R&D policy are implemented has had considerable impact on approaches to workplacedevelopment in practice. The institutional environment is made up <strong>of</strong> many historical and culturallayers. The content and form <strong>of</strong> workplace development approaches has been most affected by whothe key collective actors are and how their mutual relationships are structured. The key collectiveactors are usually companies and company networks, research groups, labour market organizations,governments and various funding bodies and authorities in charge <strong>of</strong> working-life, technology andregional development. In Finland, Germany and France, for instance, government or governmentagencies have held a key role as initiator and coordinator <strong>of</strong> development programmes, while thisrole has been played by the axis between the labour market organizations in countries such asNorway, Denmark and Ireland. In Sweden, the UK and Italy, meanwhile, the engine has beenvarious regional actors in recent years.

203Challenges for Programmatic Workplace DevelopmentThe themes <strong>of</strong> the knowledge-based economy have not featured visibly in <strong>European</strong> countriesin recent workplace development programmes, whether completed or ongoing. This is indirectlyevident in the fact that the companies and workplaces included in these programmes operate largelyin traditional sectors (Alasoini 2000a; Business Decisions Limited 2000). Although innovativecompanies can be found in all sectors, it might be assumed that companies specifically in the new,dynamic, rapidly expanding sectors would be the best laboratories for testing new types <strong>of</strong> work,organizational and human resource management practices, which could be an important source<strong>of</strong> inspiration also for the traditional sectors and help support better integration between the‘new’ and the ‘old’ economy (Prihti et al. 2000, 41-43). Experiences in Finland have, however,shown that, due to their rapid pace <strong>of</strong> change and lack <strong>of</strong> firmly established operating procedures,these companies (<strong>of</strong> many <strong>of</strong> them are in the ICT cluster) find it hard to commit to long-termprogrammatic development (Alasoini 2000b, 115-118; Kasvio et al. 2000, 140-141). The absence<strong>of</strong> these types <strong>of</strong> company may at worst lead to two legitimacy problems when we consider the role<strong>of</strong> these programmes as part <strong>of</strong> a national or regional innovation policy:• The programmes do not make for better integration <strong>of</strong> the basic values <strong>of</strong> workplace developmentpolicy into the work processes and assignments, or organizational and human resource managementsolutions <strong>of</strong> companies in the economy’s new growth sectors. Such values, specifically in a Nordiclabour market context, include broad participation by employees, recognition <strong>of</strong> the need forbalanced development between pr<strong>of</strong>itability and employee well-being, and <strong>of</strong>fering employeesequal opportunities for personal and pr<strong>of</strong>essional development in connection with changes,irrespective <strong>of</strong> gender, age, ethnicity or other factors. This problem is aggravated by the fact thatmany <strong>of</strong> the companies in the growing knowledge-based businesses aim to achieve the effect <strong>of</strong>‘increasing returns’, i.e. whoever gains advantage, ceteris paribus, gains further advantage (Arthur1999; Teece 2001). This new business logic may feed ‘winner-takes-all’ mentality and aggressiveapproach also in personnel policy; as the firm’s knowledge base (in terms <strong>of</strong> employee skills andcompetencies) grows the more it is used, it becomes increasingly tempting for the firm to strive toexploit skills and competencies <strong>of</strong> the ‘knowledge workers’ without any limitations.• In focusing on traditional sectors, the programmes may see the main problems <strong>of</strong> workplacedevelopment too much from the perspective <strong>of</strong> the old structures <strong>of</strong> workplaces and assignmentsabout to become replaced, leaving them little to contribute to the new, emerging structures. Touse the distinction by Beck (2000), there is the danger that the programmes may try to solvethe problems <strong>of</strong> the ‘second modernity’ by approaches designed for the problems <strong>of</strong> the ‘firstmodernity’, thus even promoting cognitive, political or structural ‘lock-ins’ (Schienstock 1999,45-46) in the search for new, innovative solutions.In the 1970s, the focus <strong>of</strong> workplace development policy was typically on problems arising fromTaylorist working arrangements being taken to extremes, such as the ergonomic and psychologicalproblems <strong>of</strong> repetitive and monotonous work and the lack <strong>of</strong> autonomy and influence. Theseproblems were tangible and clearly delimited in both the physical and the organizational sense, andit was <strong>of</strong>ten possible to find fairly simple solutions to them by applying the right expertise. Thesolutions in question were, furthermore, neutral in terms <strong>of</strong> effects, in that they did not usually havedirect employment impacts on the workplace concerned, or indirect impacts on employees outsidethat workplace.

204Even though these and many <strong>of</strong> the other ‘old’ problems <strong>of</strong> Taylorism may still be a relevantobject <strong>of</strong> development intervention in many workplaces, in the environment <strong>of</strong> the knowledgebasedeconomy the starting points for workplace development programmes have become morecomplex, giving rise to new challenges on several levels:• The real actors in the knowledge-based economy are increasingly networks <strong>of</strong> organizations.The focus <strong>of</strong> development intervention should shift, accordingly, from the level <strong>of</strong> individualworkstations or working units to cover organization-, company- and network-level issues as well.• Due to this change <strong>of</strong> context and focus, problems and development needs facing workplaceshave changed in the sense that it is increasingly difficult to find ready-made expert solutions tothem, or even standards or ‘best practices’.• The effects <strong>of</strong> development intervention can reach further than ever in a networked environment,something which makes it harder to foretell the indirect impact <strong>of</strong> solutions on the various partiesinvolved, or even to assess them afterwards; generally speaking, it is becoming more difficult topredict the potential <strong>of</strong> development processes at the outset <strong>of</strong> projects, because the solutions tendto emerge during the process itself. In short, solutions are becoming increasingly unpredictable anduncontrollable.• The role <strong>of</strong> employee participation is under increasing pressure from at least two points <strong>of</strong>view: firstly, the role <strong>of</strong> representative participation and the scope for acting as a ‘collectivevoice’ for employees in processes <strong>of</strong> change is becoming problematic. Networked organizationalstructures do not automatically have the arenas for employee participation which are required bylaw or collective agreements. Even at best, it may be very difficult to determine who is eligibleto legitimately represent someone else’s interests. It is also likely that employee interests willbecome increasingly divergent as their labour market positions become more differentiated. Itmight ultimately be downright misleading to speak <strong>of</strong> a ‘collective voice’ <strong>of</strong> the employees in anetwork. Secondly, the new emphasis on tacit knowledge as a source <strong>of</strong> competitive strength forcompanies, and therefore a determining factor <strong>of</strong> the labour market position <strong>of</strong> employees as well,means that the opportunity to participate directly in the planning and implementation <strong>of</strong> changewill become increasingly crucial from the employees’ own point <strong>of</strong> view. Tacit knowledge isaccumulated only through doing and using, and through social interaction, with shared experiencesat the core.The Need for New ApproachesThe above challenges call for the development <strong>of</strong> overall progamme and project design concepts,and the way programmes and projects are actually managed and implemented:• Development strategies: Workplace development in a networked and increasingly dynamicenvironment demands new programme strategies. As problems and development needs facingworkplaces are becoming increasingly complex and requirements for continuous learning aregrowing, building forums for boosting exchange <strong>of</strong> information and experiences betweenworkplaces and other actors is <strong>of</strong> crucial importance. Acquiring the sufficient expertise tosuccessfully deal with these ever more complex issues in programmes calls for combination <strong>of</strong>

205different kinds <strong>of</strong> expertise, achieved only through broad dialogue between all relevant actors,whether researchers or practioners. One <strong>of</strong> the most promising recent conceptual innovationsin programmatic workplace development is a ‘module’, developed in the Norwegian EnterpriseDevelopment 2000 Programme (1994-2000). A ‘module’ is a group <strong>of</strong> researchers with a commonresearch agenda that works with a group <strong>of</strong> enterprises, <strong>of</strong>ten together with other regionalinstitutions as well, for a period <strong>of</strong> several years (Gustavsen et al. 2001).• Development techniques: The new, networked and increasingly dynamic environment requiresalso new development models, methods and tools in projects where the focus <strong>of</strong> development is ona real production network <strong>of</strong> companies. Typical area <strong>of</strong> application so far has been ‘conventional’bilateral, principal-driven production cooperation between the principal and its suppliers. Bycontrast, there has not been a great deal <strong>of</strong> progress in development techniques for genuinelymultilateral production networks yet, at least not in Finland. Multilateral production networkswould be a more fertile soil for process and product innovations than ‘conventional’ bilateralnetworks, in which the goals <strong>of</strong> development measures are <strong>of</strong>ten determined by short-termproductivity targets <strong>of</strong> the principal alone. Multilateral production networks, instead, have betterchances <strong>of</strong> becoming genuine innovation-oriented ‘multivoiced activity systems’ (Hyötyläinen2000).• The qualifications and roles <strong>of</strong> experts: For the qualifications and roles <strong>of</strong> researchers andconsultants, the above changes mean that the emphasis has to be shifted increasingly from <strong>of</strong>feringdesign solutions towards planning, coordinating and supporting entire processes <strong>of</strong> change ininteraction and dialogue with other actors. Owing to the growing complexity <strong>of</strong> problems andgrowing demands for interaction and dialogue, there is a need to shift towards increasinglyreflective expertise in development work. The need for greater reflectivity concerns not onlythe development project in question, but also the general conceptual framework guiding own’sthinking and action (Seppänen-Järvelä 1999, 72-75).• Progamme and project management: The growing unpredictability and uncontrollability<strong>of</strong> the effects <strong>of</strong> development processes will require an increasingly reflective approach fromprogramme and project management, too. Greater reflectivity means sensitivity in monitoring theeffects <strong>of</strong> development processes and the flexibility to make any necessary redefinitions <strong>of</strong> theircontent and forms. Areas in the environment <strong>of</strong> the knowledge-based economy which requireparticular sensitivity from monitoring will be ensuring the participation <strong>of</strong> employees, preventingprocesses <strong>of</strong> social segregation, or even exclusion, and pre-empting ecological risks in connectionwith change.If workplace development programmes prove unable to respond to the new challenges brought bythe environment <strong>of</strong> the knowledge-based economy, it may ultimately undermine their importanceas part <strong>of</strong> national or regional innovation policy. This question must be taken seriously, primarilybecause workplace development programmes have so far been unable to gain the status in publicpolicy-making held by technology development and transfer programmes in any western industrialnation. Quick-fix solutions to this ‘organization development deficit’ (Gustavsen 2000, 121) areunlikely to exist. The main means available for countering any legitimacy problems that workplacedevelopment programmes may be experiencing will be how successful these programmes are increating new innovation concepts which their stakeholders find credible and which are capable <strong>of</strong>dealing with the above and other challenges posed by the knowledge-based economy.

206BibliographyAlasoini, T.: On the Cutting Edge? – the Finnish National Workplace Development Programme and the NorwegianEnterprise Development Programme as Approaches to Workplace Renewal. In Gjelsvik, M. & Hansen, K. (eds.):Nordisk arbeidslivs konference 1999: Norden i verden og verden i Norden [The Nordic Countries in the Worldand the World in the Nordic Countries]. Nordic Council <strong>of</strong> Ministers. TemaNord 2000:575. Copenhagen 2000a,459-479.Alasoini, T.: Suomalainen työelämän kehittämiskokeilu 1996-99 – kokemuksia, näkemyksiä ja tuloksia Kansallisestatyöelämän kehittämisohjelmasta [Finnish Workplace Development Experiment in 1996-99 – Experiences, Insightsand Outcomes <strong>of</strong> the Finnish National Workplace Development Programme]. Finnish Ministry <strong>of</strong> Labour. NationalWorkplace Development Programme. Reports 11. Helsinki 2000b.Arthur, W.B.: New Economics for a Knowledge Economy: the Law <strong>of</strong> Increasing Returns. In Ruggles, R. &Holtshouse, D. (eds.): The Knowledge Advantage. Capstone. Dover, NH 1999, 195-212.Beck, U.: The Brave New World <strong>of</strong> Work. Polity Press. Cambridge 2000.Business Decisions Limited: Government Support Programmes for New Forms <strong>of</strong> Work Organisation: a Reportfor DG Employment & Social Affairs. Office for Official Publications <strong>of</strong> the <strong>European</strong> Communities. Luxembourg2000.Giddens, A. & Hutton, W.: In Conversation. In Hutton, W. & Giddens, A. (eds.): On the Edge: Living with GlobalCapitalism. Jonathan Cape. London 2000, 1-51.Gustavsen, B.: Introduction: Research and Development Programs as Tools in Workplace Development. Conceptsand Transformation 5 (2000):1, 121-123.Gustavsen, B., Finne, H. & Oscarsson, B.: Creating Connectedness: the Role <strong>of</strong> Social Research in InnovationPolicy. John Benjamins. Amsterdam – Philadelphia 2001.Hyötyläinen, R.: Development Mechanism <strong>of</strong> Strategic Enterprise Networks: Learning and Innovation in Networks.VTT – Technical Research Centre <strong>of</strong> Finland. Publications 417. Espoo 2000.Kasvio, A., Haapakorpi, A. & Ruohonen, M.: Joustavat työjärjestelyt: esitutkimusraportti [Flexible WorkingArrangements: Pilot Study Report]. University <strong>of</strong> Tampere. Information Society Research Centre. Working Papers12/2000. Tampere 2000.Lundvall, B.-Å.: The Learning Economy: Some Implications for the Knowledge Base <strong>of</strong> Health and EducationSystems. In OECD: Knowledge Management in the Learning Society. OECD. Paris 2000, 125-141.Naschold, F.: The Politics and Economics <strong>of</strong> Workplace Development: a Review <strong>of</strong> National Programmes. FinnishMinistry <strong>of</strong> Labour. Labour Policy Studies 64. Helsinki 1994.Nonaka, I. & Takeuchi, H.: The Knowledge-Creating Company: How Japanese Companies Create the Dynamics <strong>of</strong>Innovation. Oxford University Press. New York – Oxford 1995.OECD: A New Economy? The Changing Role <strong>of</strong> Innovation and Information Technology in Growth. OECD. Paris2000.Prihti, A., Gerorghiou, L., Helander, E., Juusela, J., Meyer-Krahmer, F., Roslin, B., Santamäki-Vuori, T. & Gröhn,M.: Assessment <strong>of</strong> the Additional Appropriation for Research. Sitra – The Finnish National Fund for Research andDevelopment. Reports Series 2. Helsinki 2000.Schienstock, G.: Transformation and Learning: a New Perspective on National Innovation Systems. In Schienstock,G. & Kuusi, O. (eds.): Transformation towards a Learning Economy – the Challenge for the Finnish InnovationSystem. Sitra – The Finnish National Fund for Research and Development. Publications 213. Helsinki 1999, 9-56.Seppänen-Järvelä, R.: Luottamus prosessiin: kehittämistyön luonne sosiaali- ja terveysalalla [Trust in the Process:the Nature <strong>of</strong> Development Work in Social Welfare and Health Care]. STAKES – National Research andDevelopment Centre for Welfare and Health. Research Reports 104. Helsinki 1999.Teece, D.J.: Strategies for Managing Industrial Knowledge Assets: the Role <strong>of</strong> Firm Structure and IndustrialContext. In Nonaka, I. & Teece, D.J. (eds.): Managing Industrial Knowledge: Creation, Transfer and Utilization.Sage. London – Thousand Oaks – New Delhi 2001, 125-144.

207PARALLEL SESSION PRESENTATIONSVII Local dimensions <strong>of</strong> the knowledge economy

208Telework used as a method <strong>of</strong> moving work tasksto regional districts in NorwayEystein Fossum, Management Consultant, Semco AS, Lysaker, NorwayAbstractAlthough Norway does not have an <strong>of</strong>ficial common telework policy as such, telework projectshave <strong>of</strong>ten been set up as integrated parts <strong>of</strong> different governmental development programs, i.e. inconnection with labour market or district development programs. Some <strong>of</strong> these projects have beena part <strong>of</strong> or coordinated with the research project, Project Telework. This project is funded by theResearch Council <strong>of</strong> Norway and is the main telework study in Norway.This presentation describes some models <strong>of</strong> introducing telework to the more distant regions.Special attention is given to experiences <strong>of</strong> an effort made to move work tasks to the northernpart <strong>of</strong> the country. Questions that will be discussed include: Who are willing to decentralise worktasks to teleworkers in the more distant regions, how is telework organised and what are the localexpectations? Some experiences with motivating people to move to rural areas and telework arealso discussed.IntroductionHow telework could be used as an element in the local business development in the rural areas isone <strong>of</strong> the main topics <strong>of</strong> the Norwegian Project Telework. Project Telework is a research projectcollaboration by the consulting firms Ementor ASA and Semco AS and the telecommunicationcompany Telenor Research and Development. The Research Council <strong>of</strong> Norway finances theproject. The main goal is to develop telework as a good way <strong>of</strong> organising work in Norway andto study how telework could be used for the benefit <strong>of</strong> the society. The project has followed 17telework initiatives through a period <strong>of</strong> two to three years. Five <strong>of</strong> these are initiatives taken bylocal authorities in the rural parts <strong>of</strong> the country. The goal <strong>of</strong> these initiatives was to use telework,or the idea <strong>of</strong> telework, as one <strong>of</strong> the elements in the effort to build a base for local knowledgeindustry.There is no common telework policy in Norway, but several initiatives taken by the governmentinclude telework as an element. One such initiative is the “pilot municipality programme” setup by the Ministry <strong>of</strong> Local Government and Regional Development. In this programme, sevenmunicipalities set up their own, yet mutually co-ordinated projects to develop their region. Thelocal projects contain subprojects focusing on such subjects as the local culture, local industrialdevelopment, population development, local governmental services, etc. In some <strong>of</strong> these localprojects, telework is focused on as a possibility for local industrial development, and it is alsoseen as a possibility to reverse the decrease <strong>of</strong> population in the districts. The idea is that theopportunity to telework could create some opportunities for people to move into the districts. Thesame ministry also has an initiative called the “business gardens” in cooperation with the Industrial

209Development Cooperation <strong>of</strong> Norway. It refers to small business centres in the districts that areenvisioned to contain small local companies in the knowledge industry, and they would also lease<strong>of</strong>fices to teleworkers. The centre will provide the tenants common <strong>of</strong>fice services <strong>of</strong> good qualityto the extent they could not afford alone. The idea <strong>of</strong> the centres is that they will be arenas forthe exchange <strong>of</strong> experience, ideas and market contacts. On the one hand, the idea behind havingteleworkers in the same <strong>of</strong>fice area is that they will give additional impulses to the business centre.On the other hand, the teleworkers will thus be part <strong>of</strong> the local business community, which shouldprotect them against the feeling <strong>of</strong> isolation.Why telework in regional districts?There are three possible reasons to try out telework development in rural communities:1The region has inhabitants who are competent with computing systems, but there are no localpossibilities to employ this competence. The commuting distance to the nearest city is acceptable.This makes the region primarily a place for living but not working. The workers are using somuch energy on travelling that they have little to give to the local community in terms <strong>of</strong> time andeffort. In such communities, the local authorities will try to organize teleworking opportunities inconnection with the development <strong>of</strong> the local knowledge industry. They hope they can utilize thelocal competence better this way.2The region has inhabitants with competence, but lacks local opportunities for employment, andthe commuting distance to the nearest city is too long. The local trade and industry have fewpossibilities to expand their local activity and therefore people tend to move out <strong>of</strong> the region toareas with greater chances <strong>of</strong> employment.3The region has had its population decrease over a long period <strong>of</strong> time. Therefore, there is a lack<strong>of</strong> competence in the area, and the local economic life is based on primary industry. There are fewlocal initiatives, but there is a strong will to maintain the local community. It is necessary for thecommunity to find possibilities to encourage people with both jobs and competence to move intothe region.In short, there are three main objectives in using telework to support local development:• Create better possibilities for local employment and industrial development, and prevent peoplefrom moving• Establish more “modern” industry that is more adapted to the skills and education <strong>of</strong> youngpeople, which will increase the possibility <strong>of</strong> getting new inhabitants to the area.• Give new impulses to the existing trade and industry and to the community as such.

210Two casesThe remote areas situated far from the nearest city generally have the most severe problems tomaintain population and the local community. I have studied two such districts in particular. Theone in southeastern Norway has 1,500 inhabitants, mostly occupied in agriculture and touristindustry in addition to local administration. For years, the youth have left the community to get aneducation in other places, and seldom or never do they return to live and work in the area. The otherdistrict is in the far north <strong>of</strong> Norway and has about 7,000 inhabitants. It has a local education andtraining centre, which gives basic education in information systems technology. There is, however,too few job opportunities in the area, and only a few <strong>of</strong> the local enterprises have potential toincrease their activity based on the local market.In both cases, the local authorities and the local industry have collaborated to establish local centresresembling the “business garden” concept, but these centres have a stronger focus on telework as akernel for activity. The local projects had two main objectives:• To find people who were willing to move to the area to either establish their own business ortelework• To find possible work tasks that could be moved to the area and executed as telework either bythe local unemployed or by people that would move to the area.Neither one <strong>of</strong> these problems was easy to solve.How to fi nd the teleworkers?Intuitively, there is only one natural place to start – the local network. In both cases, the localauthorities started with a definition <strong>of</strong> what was their local network. They concluded that thenetwork consisted <strong>of</strong> those people who had relationships to the district, i.e. those who had movedto other places and those who were <strong>of</strong>ten visiting the area for holidays, etc. The best responseswere expected from those who had moved out, and primarily those who had moved out to get aneducation. An opinion poll showed that nearly 50% would like to move back home. More than 50%<strong>of</strong> them said: “If you have a job for me, I will come.” Nobody was negative to telework, and 30%thought they could take their job with them. But things take time. It is one thing to give apositive answer to an opinion poll, but following through with the consequences takes much moretime and is much more dramatic and complicated. Another lesson learned was that housing andother preparations had to be in order when people were ready to come. Job alone is not enough;people also expect that basic infrastructure is easily available. The selling arguments used by thelocal authorities focused on things such as clean air, good conditions for outdoor life and a safecommunity for the whole family. Though they are still optimistic about getting new people tothe area, they have realized that the task <strong>of</strong> selling must not be based on the possibilities <strong>of</strong> thearea alone. The reality is that people have got new values <strong>of</strong> life and a network <strong>of</strong> friends andfamily where they live now, and it gives them strong arguments for staying. The sales effort musttherefore concentrate on both the people and their families and their possible employers togetherwith additional arguments.

211How to fi nd work tasks?There is almost no chance to move work to an area just by advertising the possibilities. The chancesmay still be less, if you advertise for employment <strong>of</strong> new teleworkers. The municipal authoritiesin the northern district decided to go into <strong>of</strong>fensive; they sent two consultants <strong>of</strong> the local publicadministration <strong>of</strong> trade and industry to Oslo. The Oslo <strong>of</strong>fice <strong>of</strong> the municipality was established,and the mission <strong>of</strong> this <strong>of</strong>fice was to sell the district and its competence in information systemstechnology to enterprises, governmental institutions, and politicians. The Norwegian Governmenthad as its policy that there should be no further expansion <strong>of</strong> governmental institutions in Oslo.Any growth should be based on moving tasks out to other districts. Telework was mentioned as apossibility in that connection.The consultants had prepared a good presentation <strong>of</strong> the district containing arguments regardingeconomical benefits and the ability and competence <strong>of</strong> the local work force. The material alsopresented telework as a good way <strong>of</strong> organising work.The consultants first started their sales job focusing on the clear policy <strong>of</strong> the government to movework tasks <strong>of</strong> governmental institutions out <strong>of</strong> Oslo. They had no success at all. The management<strong>of</strong> the institutions used all arguments possible against it. After some months <strong>of</strong> disappointments,they gave up and turned their sales promotion to the private service industry and media industryin Oslo. They used the job advertisement sections <strong>of</strong> the newspapers as a guide as to whom theyshould contact. It brought results and some new perspectives.First <strong>of</strong> all, they experienced that the private industry welcomed the arguments <strong>of</strong> lower costs (taxbenefits and lower wage demands) and possibly more stable workers. Secondly, they experiencedthat the enterprises did not want to employ people for the jobs so far away. However, the possibility<strong>of</strong> having work tasks moved to the area was felt so positive that they decided to try finding othersolutions. There were two alternatives both <strong>of</strong> which were used:The local industry could take some <strong>of</strong> the work tasks if they employed one or two more people,but this was limiting the volume <strong>of</strong> each case. The Oslo enterprises planned for a growth <strong>of</strong> 10-20workers for the tasks. The other possibility was to start a new company that could partially employsome people and partially organize the work by giving out work to free agents and the localindustry. This company was now to be established.After 16 months in Oslo, the result is that about 20 jobs have been created in the district, employingmainly people who live in the area. Until now, it has not been registered that anyone would havemoved to the area to take some <strong>of</strong> the new jobs. The real number <strong>of</strong> jobs created is much highersince 80 new jobs were also created in the neighbouring district. These were mainly call-centrejobs, and the employer found that for these types <strong>of</strong> jobs it was necessary to have a local labourmarket with a continuous supply <strong>of</strong> new employees. The reason is that these types <strong>of</strong> jobs fit shorttermemployees best. They therefore found it more suitable to establish the service in a more townlikeplace, which also has the education centre <strong>of</strong> the county. There the labour market also consisted<strong>of</strong> students who would take this type <strong>of</strong> a job.

212The jobs that moved to the area were typically information registration with some customerservice, database maintenance, and updating <strong>of</strong> websites. These were also the types <strong>of</strong> jobs theconsultants searched for in the Oslo market. They would get jobs they could guarantee had somevalue for the local labour market, the local competence was suited for, and could be organised astelework. They also hoped for jobs from the public and governmental institutions for which theyknew there was particularly good competence in the region, but this effort has not been successfulyet.The strategy chosen was to start with jobs that could be served without problems <strong>of</strong> capacityor quality. The next step is to increase the ambitions for jobs that demand for more specialisedqualifications. Hopefully this will then establish a platform on which to build a new business centrewith the new type <strong>of</strong> industry in the area.Some conclusions1 The idea <strong>of</strong> telework seems to give some possibilities for new jobs in rural areas, but it is basedon other objectives than telework from the areas near the city. Therefore home-based teleworkis not in focus.2 Jobs seem to be easier to move than people are.3 It is necessary to find the right jobs first, not being too ambitious about what type <strong>of</strong> jobs shouldbe moved. Building confidence is job number one.4 Employers focus on their own economy, not employment in rural areas.5 Sales promotion is absolutely necessary. Be present on the market.6 To sell jobs is not enough – the area and all its possibilities must also be sold.7 The local infrastructure must be arranged properly.

213IntroductionEco-Managed eWork as a New Urbanand Regional StrategySirkka Heinonen, PhD Chief research scientist,VTT Building and Transport, FinlandIn the context <strong>of</strong> community development, telework or eWork, as it is most recently coined, hasraised numerous questions, doubts as well as great expectations during several decades. This isbecause eWork has many implications for all the major areas as regards community development:work, housing, transport and commuting, and urban form as a larger background.In this jungle <strong>of</strong> expectations shadowed by suspicions concerning eWork, we have to try to gainmore knowledge on what the specific impacts <strong>of</strong> eWork in each field <strong>of</strong> life are. Can eWork providesolid solutions to the problems <strong>of</strong> the hectic worklife, as it is argued• by e.g. affording flexibility and undisturbed working periods,• by making it possible to combine family life and working life in an optimal way according tothe employee’s situation, and by• improving one’s quality <strong>of</strong> life when the stress from commuting is relieved?Can eWork in fact improve the quality <strong>of</strong> the environment at community and society level, while itis claimed to improve the quality <strong>of</strong> life at individual level? Can eWork achieve this by e.g.• reducing the number <strong>of</strong> trips from home to work,• reducing the energy use and pollution from commuting, and by• making the dormitory residential areas safer and more lively?To make the matter more complicated while pondering these questions, one must bear in mindthat the interrelations between the impacts and the combined output <strong>of</strong> such impacts <strong>of</strong> eWork onvarious key activities in communities is <strong>of</strong> crucial importance, not just the implications separately.eWork in projects <strong>of</strong> the Information SocietyThe national Finnish strategy for Information Society was written in late 1998. The Strategy is nowbeing implemented within the so-called spearhead programmes. Under the auspices <strong>of</strong> two specificSpearhead Programmes <strong>of</strong> the Finnish Strategy for Information Society, i.e. those <strong>of</strong> SustainableDevelopment and Information Society (KESTY), and eWork, a project has been launched on Eco-Managed Telework (1st October 2000 – 30th June 2002). This project <strong>of</strong> which I am in charge atVTT Building and Transport is concerned with studying the environmental impacts <strong>of</strong> eWork in aproactive framework. The information society makes possible a new deal between housing, workand mobility in urban form. The term Eco-Management is here coined as the simultaneous keystarting point and ultimate target for implementing eWork in this new setting.

214The concept <strong>of</strong> the Eco-Managed Telework is a social innovation to promote the welfare <strong>of</strong>both humans, communities and <strong>of</strong> the environment. The aim <strong>of</strong> the research project is to analysethe significance <strong>of</strong> the eco-managed introduction <strong>of</strong> eWork in relation to sustainable urban formand functions. Eco-managed introduction <strong>of</strong> eWork naturally requires at first hand informationand knowledge <strong>of</strong> environmental impacts <strong>of</strong> eWork as well as their assessment. For the purpose,a framework <strong>of</strong> EIA (Environmental Impact Assessment) <strong>of</strong> eWork will be constructed. Theconceptual model for calculating and analysing the impacts <strong>of</strong> the realisation <strong>of</strong> eWork potentialhas already been created at VTT Building and Transport (http://www.mol.fi/esf/ennakointi/raportit/telework.pdf) and it will will be further developed.Environmental benefits from eWork are not automaticBeneficial environmental impacts from eWork are by no means automatic nor self-evident. Unlesswe use the eco-managed framework for implementing eWork in organisations, cities and regions,detrimental effects are quite plausible. Near at hand – without eco-management – is a worst-casescenario <strong>of</strong> ”eco-disaster” eWorkers who telework only half the day at home and speed up in theircar for the <strong>of</strong>fice in the afternoon. This <strong>of</strong> course reduces congestion, but does not yield any savingsin energy use and pollution. Later in the evening they drive to the auto-market at the outskirts <strong>of</strong> thecity, generating many vehicle kilometres. In lack <strong>of</strong> social contacts after working so hard at home intheir home <strong>of</strong>fice or ”h<strong>of</strong>fice”, they may drive to see friends or go sporting. Sports and socialisingin itself is <strong>of</strong> course quite recommendable for each <strong>of</strong> us, but from the environmental point <strong>of</strong>view what matters is when, how and where people do that. eWorkers in this environmentallyworst-casescenario need a room both at <strong>of</strong>fice and at home, they are not very willing to sharethe costly <strong>of</strong>fice space. They want to have all necessary ICT equipment both at work and home,increasing eventually the number <strong>of</strong> computer waste. They cannot organise the material on whatthey are working, so they need all the reports copied as well, exploiting thus huge numbers <strong>of</strong> paperresources. Now that eWorking is possible, an employee might also decide to move further awayfrom the <strong>of</strong>fice. The number <strong>of</strong> commuting days is decreased, whereas the vehicle kilometres withsubsequent pollutants and energy use are increased. Even if they drive less frequently to <strong>of</strong>fice,when they do drive, it means actually more environmental burden to communities.The eco-managed eWorker, on the other hand, is well aware <strong>of</strong> the environmental impacts <strong>of</strong>different forms in telecommuting. Together with his or her employer they have agreed on the bestpractice patterns <strong>of</strong> work and mobility. They are conscious <strong>of</strong> the value <strong>of</strong> eco-managed eWorkas part <strong>of</strong> the environmental strategy <strong>of</strong> the organisation. eWork in this scenario is also integratedas part <strong>of</strong> the employee’s possible propensity towards ecological way <strong>of</strong> life or environmentalfriendlybehaviour in general. The key idea in eco-managed eWork is that ecologically enlightenedorganisations should pave the way and provide many incentives for eco-managed teleworkingamong its employees. The same can be adopted in cities and larger regions as an agreed policy.Those cities, towns and regions which respond to this challenge <strong>of</strong> implementing eco-managedeWork see eWork as an instrument for reducing commuting and congestion and accordingly itsenvironmental burden. However, they try to approach the issue on a holistic scope. Therefore,they are watchful for avoiding possible pitfalls in eWork scheme from the point <strong>of</strong> view <strong>of</strong> theenvironment. Such a proactive environmental procedure is e.g. to build ict infrastructure or itsreservations in new development areas when the street or road is already dug open for installingother municipal engineering.

215In a recent survey by the Helsinki Metropolitan Area Council (YTV), the preliminary results showthat a typical eWorker in the Helsinki Metropolitan area is a well-<strong>of</strong>f male employee, younger thanan average. He lives in a detached house, drives a person car to the <strong>of</strong>fice and has a longer distancefrom home to the job than on average. Does this imply that a eWorker is prone to more mobilitywhen trips to work are reduced? Or, is the diminished commuting a quality-<strong>of</strong>-life target for aperson who is already accustomed or obliged to much travelling? In this survey, 3.6 % <strong>of</strong> all therespondents claimed to have teleworked on the day the questionnaire was concerned with. Of therespondents active in working life, more than 5 % teleworked at least one day per week and 13 %replied to have teleworked occasionally during the last six months.Case studies in the project on Eco-Managed teleworkThe project on Eco-Managed Telework is carried out in seven urban and regional case studiesin co-operation with the following cities, towns and councils: Espoo, Helsinki and Vantaa fromthe Metropolitan area, Kajaani from Northern Finland, Kouvola less than 200 km north-east <strong>of</strong>Helsinki, and Hyvinkää. The Regional Council <strong>of</strong> Häme (Hämeenlinna, Forssa and Riihimäki)in north-west <strong>of</strong> Finland, and Helsinki Metropolitan Area Council represent cases where specialemphasis is on a larger region.In the chosen case areas, possibilities are explored for linking residential areas with well developedICT infrastructure to the eco-managed introduction <strong>of</strong> eWork. eWork can also be integrated as part<strong>of</strong> a lifestyle based on sustainable development. The role <strong>of</strong> telework centres in reducing passengercar commuting will also be analysed. Further, introduction <strong>of</strong> eco-managed eWork is encouragedto be included in environmental strategies <strong>of</strong> communities, corporations and institutions. On thebasis <strong>of</strong> analysing various implementations <strong>of</strong> eWork, a presentation <strong>of</strong> best practices together withrecommendations for action as regards the promotion <strong>of</strong> eco-managed eWork will be made.eWork as a new urban strategy means focussed endeavours to implement the eWork paradigm forresidents, enterprises and the staff <strong>of</strong> urban administration itself to reduce physical transport and atthe same time to recruit skilled labour from a wider geographical area without having the burden<strong>of</strong> too heavy migration to the metropolitan area. eWork as a new regional strategy means moreconcerted efforts to utilise the possibilities provided by virtual geography. In other words, regionsand distant localities may slow down the outward migration, when people residing in the area mayget jobs to be performed as eWork, thus contributing to a more balanced areal development. Thisrequires, however, a systematic integration <strong>of</strong> eWork programmes to environmental policies andstrategies.In the Case Study on the Metropolitan Area Council, we analyse the results on eWorking from thesurvey that I mentioned. A general target and approach for the whole area is to look for ways todiminish congestion and to encourage the use <strong>of</strong> mass transit as combined to the introduction <strong>of</strong>eWork.In the Case Study on Helsinki we discuss the paradox <strong>of</strong> the information society where physicalconcentration <strong>of</strong> <strong>of</strong>fices vigorously takes place in spite <strong>of</strong> all technical possibilities for detachmentfrom time and space. Concentration <strong>of</strong> course provides competitive edge and a nest for synergyand innovation through immediate exchange <strong>of</strong> ideas as e.g. Manuel Castells has pointed out.

216However, this physical concentration makes the companies more vulnerable as was so tragicallyproved the day before yesterday by the terrorist attack on the World Trade Centre in New York. Thesignificance <strong>of</strong> deconcentrated forms <strong>of</strong> work such as eWork will surely now gain more momentumand the need for constructing high-rise giant <strong>of</strong>fice buildings should be seriously questioned fromthis point <strong>of</strong> view. In Helsinki we concentrate on the eastern part <strong>of</strong> the city, which is currentlyrelatively dormant. In Western and Central Helsinki there already are many projects connected tocertain quarters to promote eWork, <strong>of</strong> which Arabianranta is the most famous as a global eWorklaboratory. Approximately one third <strong>of</strong> the citizens live in East-Helsinki, while only a tenth <strong>of</strong> thejobs are located there. Therefore, eWork as promoted in the eastern residential areas might alsomake the surroundings more lively and safer.In the Case Study on Espoo, we seek for innovative solutions for effective use <strong>of</strong> floor space inhouses. For example, attics and basement can be converted to home <strong>of</strong>fice space.In the Case Study on Vantaa, the logistic heart will be the airport city which can <strong>of</strong>fer to nomadeWorkers various services, it <strong>of</strong>fice space together with nearby high-quality new housing.In the Case Study on Hyvinkää the differences between eWork at home and at eWork centres arebeing studied. The renewed old factory facilities <strong>of</strong> Techvilla Company provide an eWork Portalfor persons previously commuting to the Metropolitan area.In the Case Study on Kajaani, the focus is on the decentralisation <strong>of</strong> work from big it companieslocated in the Metropolitan area. Mechanisms are being sought for facilitating eWork contracted toKajaani-based eWorkers. The town helps by providing rented <strong>of</strong>fice space in the centre.In the Case Study on Kouvola, we emphasize the town as an access point to eWorking mode athomes or at the future IT campus within a walking distance from the centre. It is an access pointto good transport connections, to affordable housing and clean environment.as part <strong>of</strong> the regionalstrategy for sustainable development.In the Case Study on the Regional Council <strong>of</strong> Häme, the focus is on analysing possibilities forestablishing eWork centres near railway stations <strong>of</strong> Hämeenlinna and Riihimäki. There are severalthousands <strong>of</strong> daily commuters coming from Häme to the Metropolitan area. Part <strong>of</strong> them mighttransfer to eWork and remain living in the area, avoiding the pressure to move to the Metropolitanarea.Functional cases experimenting with Mobile TeleworkIn addition to these urban and regional cases there are two specific experiments ongoing connectedto them. Firstly, a labour market organisation located in downtown <strong>of</strong> Helsinki – Union <strong>of</strong> SalariedEmployees TU - will soon start an eWork programme. They regard eWork as a tool for reducinglong-distance commuting, business travel costs and at the same time for improving the quality <strong>of</strong>working life and the welfare <strong>of</strong> its employees.

217The experiment is connected with another functional experiment <strong>of</strong> the so-called mobile eWork.For the first time in Finland, a chosen number <strong>of</strong> employees living far from their central <strong>of</strong>ficetransfer to telecommuting from their homes or nearby eWork centres on a few days per week.On commuting days, however, they change their transport mode whenever feasible from personcar to rail transport. Some trains are already equipped with electricity plugs for portable pcs withappropriate working space afforded. Traditionally, this system has been reserved mainly for thefirst class business travellers. What is new in this project is the proposal that the same facilitiesshould be available to common daily commuters. Thus in the model <strong>of</strong> eco-managed mobileeWork, an employee can, on a voluntary basis <strong>of</strong> course, start working on the train and reducethe time from <strong>of</strong>ficial work time at <strong>of</strong>fice. Accordingly, he or she will not be exhausted by longcommuting, resulting in long work days (commuting time + <strong>of</strong>fice hours). At the same time,environmental impacts are diminished through the telework days and through the transition fromcar to train. This is what eco-management <strong>of</strong> eWork means in one <strong>of</strong> this applications. Ecomanagement<strong>of</strong> mobility (besides other activities such as <strong>of</strong> housing, working, production etc.) canbe viewed as one <strong>of</strong> the comprehensive criteria for an eco-society.Eco-management <strong>of</strong> eWork is by no means an easy task. However, it is a challenge for thosesocially responsible communities and organisations which find the challenge worth taking.More information: http://www.vtt.fi/rte/research/commun_information.htm

218The Western Isles, Scotland: ICT and Job CreationNorman L MacDonald,Comchairle nan Eilean Siar Council Offi ces, ScotlandI am delighted to have been invited to give a presentation at Telework 2001 in Helsinki. Two yearsago in Aarhus I spoke about “Telework and its Importance in the Public Sector”. My theme, todayis “The Western Isles ICT and Job Creation”. The Western Isles lie at the very edge <strong>of</strong> Europe,<strong>of</strong>f the north West Coast <strong>of</strong> Scotland. The Islands stretch 180 kilometres from north to south andhave a population <strong>of</strong> 27,000. The islands are one <strong>of</strong> the most sparsely populated areas in the<strong>European</strong> Union and face problems common to other geographically disadvantaged areas suchas high transport costs and a fragile economic base. The capital <strong>of</strong> the islands, Stornoway, hasa population <strong>of</strong> 6,000. Throughout the 20th Century the number <strong>of</strong> those living and working inthe Western Isles has declined dramatically. One reason for this has been a lack <strong>of</strong> employmentopportunities, particularly for the young who all too <strong>of</strong>ten go to a College or University on theMainland and never return. The main industrial sectors are fishing, fish processing, acquacultureand the world famous Harris Tweed. The quality <strong>of</strong> the natural environment in the Western Islesis special and the people have a strong cultural identity directly related to the Gaelic language,indeed some 70% <strong>of</strong> the population are bilingual. As the Chairman <strong>of</strong> the Education Committee, Iam proud to say that the percentage <strong>of</strong> our young people going on to further and higher educationis the highest in Scotland.Having told you a little about the Western Isles I would now like to turn to the second element <strong>of</strong>my presentation, namely, ICT and Job Creation. The Council has long recognised the job creationpotential in an emerging ICT sector. That is why it helped to create the Western Isles ICT AdvisoryService. The Council, Western Isles Enterprise, a separate Government agency, created to developskills and grow businesses and the <strong>European</strong> Regional Development Fund, jointly support theService.Donnie Morrison, whom many <strong>of</strong> you will know, manages the Work Global initiative under thedirection <strong>of</strong> the Advisory Service. He is based at a wonderful location overlooking a sea loch onthe Island <strong>of</strong> Lewis.With the rest <strong>of</strong> his team, he identifies the main aims and objectives as being:1. to create jobs in the Western Isles by matching local skills to the needs <strong>of</strong> clients both nationallyand internationally;2. to identify and target national and international organisations with a potential to out source workto the Western Isles;3. to focus on the Diaspora by establishing a “Friends <strong>of</strong> the Western Isles” database; and4. to assist business start-up ventures in the ICT sector.Work Global is a teleworking facilitator that manages and maintains a Skills Register. The Registerhas been highly successful in providing direct information to inward investors and has proved to bea very valuable marketing tool. It has also allowed Islanders living on the UK Mainland to express

219their interest in returning to the Islands, if suitable job opportunities can be found. Work Globalacts as a single point <strong>of</strong> contact for new inward investment and outsourcing opportunities in theICT sector. It also provides information on the potential workforce in the islands, the availability<strong>of</strong> property, and assistance with training and marketing.The initiative has been outstandingly successful and has since 1996:1. created or retained 200 jobs;2. given advice to 196 Local Companies on ICT;3. stimulated 3 inward investment projects; and4. given advice to 32 start up companiesOur experience in the Western Isles has been that jobs can been created in the ICT Sector bya combination <strong>of</strong> the formation <strong>of</strong> new companies, inward investment and individual Teleworkcontracts. To maintain our success in generating jobs in the ICT Sector we are constantlyre-examining our strategies. As a result we have attracted funding over the next three years foran enhanced “Work Global” initiative. This initiative will focus on two <strong>of</strong> the most importantadvantages <strong>of</strong> the information age, “a quality <strong>of</strong> life location” and high bandwidth connection tothe international community. We, <strong>of</strong> course, in the Western Isles have the former and as you willhear later in my presentation are working towards the latter.The initiative will also identify areas with high skill shortages throughout the UK and market theavailable skills, in the Western Isles, to companies who could relocate aspects <strong>of</strong> their businessprocesses, especially in the area <strong>of</strong> customer services. The predominant requirement three or fouryears ago in the ICT Sector was for training. Now with the level <strong>of</strong> PC ownership and use <strong>of</strong> theInternet increasing and a greater awareness <strong>of</strong> Telework and new ways <strong>of</strong> working this is no longerthe priority. As part <strong>of</strong> the Work Global initiative a study was commissioned which identified thespecific skills required in the information age.These were, in rank order:1. written and oral communication;2. team working;3. problem solving;4. business awareness;5. creativity innovation;6. Inter-personal skills;7. attitude and enthusiasm; and8. technology skills.The Study highlighted the low priority given to technology skills. Many sources now agree thatthese skills are less important to the ICT Sector than business and customer service skills.An opportunity now exists to plug the developing skills gap in the ICT sector and encouragespecialist teleworking and outsourcing teams to become established in the Western Isles. If weare successful this process may be the catalyst required to enable the Western Isles workforceto transform itself into one which can compete in the new ’ Digital Economy’. New clients andbusiness opportunities can be only one click <strong>of</strong> the mouse away.

220Let me give you an example <strong>of</strong> what I mean from one project that forms part <strong>of</strong> the WorkGlobal initiative. At the moment in the Western Isles we have seven legal secretaries working asteleworkers, who provide a digital transcription service over the Internet to barristers and solicitorsin London. This, however, requires very large audio files to be downloaded to the teleworkershome PC on a continual basis throughout the today. In practice, this means that 30 minutes <strong>of</strong>dictation can take 25 minutes to download which creates an extraordinary amount <strong>of</strong> waitingtime and connection costs during peak business hours. The Company who run this service in theWestern Isles now state a preference for employing teleworkers in areas where there is access tohigh speed connectivity. This may pose a threat to the jobs already created in the Western Isles andbe a bar to future expansion.In another instance a potential inward investor has raised concerns at being connected only throughmicrowave systems which could be affected by adverse weather conditions. So what should be ourresponse?How does a remote community like the Western Isles, and there are many such geographicallydisadvantaged communities throughout the <strong>European</strong> Union who will be familiar with our situation,safeguard the jobs it has created and go about creating new ones?I believe one way forward is to build a “Connected Community”. This ‘Community’ would<strong>of</strong>fer high bandwidth communications to small to medium sized enterprises, public agencies andteleworkers, like the seven legal secretaries I referred to earlier. The most remote parts <strong>of</strong> ourIslands must have real connectivity to the global market to allow them to compete.Charles Handy at the first telework conference in Berlin reminded us that: “Change comes fromsmall initiatives that work” 1With this very much in mind the Council is working along with other public sector agencies andprivate sector partners to take ownership <strong>of</strong> a project to investigate the potential for an underseafibre optic cable linking the Western Isles to the Scottish mainland. My vision would be realisedif we could create new organisational structures, which bring major utilities into partnership withlocal community enterprises in order to accelerate universal access to the benefit <strong>of</strong> the wholecommunity Pilot projects are also underway to see how best we can deliver broadband throughsatellite Internet systems to some rurally located enterprises. Quite simply what I am saying is thatwe need investment in a broadband telecommunications infrastructure in all <strong>of</strong> the geographicallydisadvantaged areas <strong>of</strong> the <strong>European</strong> Union.At this point I had better say something on the definition <strong>of</strong> broadband. Douglas Alexander, thee-Government Minister in the UK, gave a very good definition in a recent interview when he said:“While most people today connect to the Internet by “narrowband” over a phone line, broadbandservices <strong>of</strong>fer significantly faster data rates that can also facilitate “always on” connection to theInternet and enable services like video-on-demand. In fact the term broadband is <strong>of</strong>ten used todescribe a very wide set <strong>of</strong> technologies, <strong>of</strong>fering data rates that are orders <strong>of</strong> magnitude apart.” 2Other national politicians in the UK seem to share my enthusiasm for Broadband. Patricia Hewitt,when she spoke at Telework 2000, recognised that it was important for the Government: “to tryto spread Broadband, so that more and more people in the home, but also in telecentres and small

221businesses, have access to the very high speed broadband networks that will make access to theInternet for work and everything else so much easier.” 3I do not believe that the roll out <strong>of</strong> broadband services in the more remote areas <strong>of</strong> the UnitedKingdom and indeed in other sparsely populated and geographically disadvantaged areas <strong>of</strong> the<strong>European</strong> Union is happening at a pace that will ensure that we can compete in global markets. Itis essential that these areas have access to the same telecommunications infrastructure that existsin the major cities.I would go further and demand that this is our right, as essential as the basic utilities <strong>of</strong> runningwater and electricity. The current regulatory position in the UK is not meeting the requirements<strong>of</strong> users in remote areas. It is clearly not economic for the private sector to invest in infrastructurewhere the rate <strong>of</strong> return on investment is less than that available from more densely populatedurban areas. <strong>European</strong> funding and public sector intervention is required to provide a more levelplaying field. If national governments fail to take the appropriate lead I believe that directioncoupled with the appropriate financial incentives should come from a <strong>European</strong> level.To my mind, if the <strong>European</strong> Commission can intervene through the Waste Water Regulations toensure that our beaches are safe and clean and that our rivers remain unpolluted, it should be able totake similar action to ensure that all Europe’s citizens benefit from the opportunities brought aboutby technological developments. If this means setting aside part <strong>of</strong> the ’Tax Take’, from urban areasto be directed to the geographically disadvantaged areas then so be it.The developments, I mentioned a moment ago, take place at a breathtaking speed and traditionalforms <strong>of</strong> planning for change cannot cope readily with the rapid nature <strong>of</strong> the changes facing us.A recently published report on “Broadband Network Infra-structure in the Highlands and Islands<strong>of</strong> Scotland ” by Ovum Consultants stated:“In the long term (ten years plus) fibre to the building will become the main access technology.This change will take longest in rural areas where the distances and hence the cost <strong>of</strong> laying newfibre will be the greatest”. 4No doubt the “change” will take even longer in the remote island communities such as the WesternIsles if we do not take ownership to initiate that change. However, in the Highlands and Islands<strong>of</strong> Scotland there are encouraging signs that the Government is beginning to address the problemswe face. I welcome the fact that the Scottish Executive, in Edinburgh, is very positive aboutimplementing a wide- ranging broadband strategy for our area. I am glad to see their commitmentto find a solution to the roll out <strong>of</strong> high bandwidth service to rural areas, which will ensure that noone is excluded on the basis <strong>of</strong> remoteness or peripherality.Certainly, in employment terms, the provision <strong>of</strong> good broadband infrastructure in the WesternIsles can lead to the creation <strong>of</strong> 300 FTE jobs in the ICT Sector. The creation <strong>of</strong> these jobs can go along way to ensuring that many peripheral areas have a sustainable long-term economic future.Before I show you a video on the Work Global Initiative I would like to leave you with twoquotations. One comes from the George Guilder’s publication, Telecosm: How Internet Bandwidthwill Revolutionise our World:

222“The computer age is over. After a cataclysmic global run <strong>of</strong> over thirty years, it has given birth tothe age <strong>of</strong> telecosm - the world enabled and defined by new telecommunications technology. Chipsand s<strong>of</strong>tware will continue to make great contributions to our lives, but the action is elsewhere.Bandwidth is exploding and its abundance is the most important social and economic fact <strong>of</strong> ourtime.” 5The other is from a speech given by Mrs Lindh, the Swedish Minister for Foreign Affairs, to the<strong>European</strong> Parliament earlier this year when she referred to:“The three “E’s” <strong>of</strong> Enlargement, Employment and Environment” 6On behalf <strong>of</strong> all the geographically disadvantaged communities across the <strong>European</strong> Union, Isuggest that our goals should be an enlargement <strong>of</strong> our population, which will allow us to maintainsocial cohesion. The creation <strong>of</strong> employment which will allow us to sustain economic growth. Theprotection <strong>of</strong> our environment, which will allow us to pass on to our children and grandchildrenthose very wild and special places we all enjoy and cherish.Bibliography1 Charles Handy: ”The Empty Raincoat, Making Sense <strong>of</strong> the Future”, published by Hutchinson2 ”The E-Minister and the E-Interview”. Interview given by Douglas Alexander, MP, Minister <strong>of</strong> State forE-Commerce and Competitiveness to the Guardian (www.guardian.co.uk)3 Speech given by the Rt. Hon Patricia Hewitt to <strong>European</strong> Telework 2000 ”New Ways <strong>of</strong> Working” Conference,QEII Conference Centre, London, Wednesday 13 September 20004 George Guilder: Telecosm: How Internet Bandwidth will Revolutionise our World5 “Broadband Network Infra-structure in the Highlands and Islands <strong>of</strong> Scotland ” by Ovum Consultants,Inverness,6 Speech by Mrs Lindh, Swedish Minister for Foreign Affairs, to the <strong>European</strong> Parliament on Wednesday 13 June2001

223Short summaries <strong>of</strong> the other presentations in the sessionLocal dimensions <strong>of</strong> the knowledge economyJeremy Millard, Danish Technological Institute, DenmarkJeremy Millard (Danish Technological Institute, Denmark) explained how the digital, knowledgeor e-economy is dramatically changing the environment in which businesses operate and individualsdo their work. New information and communication technology (ICT) is no longer simply a toolto do existing things faster, cheaper or better. ICT is in many ways redefining the socio-economic,geographical and political landscape by posing new threats, providing new opportunities, changingrelationships and opening new ways <strong>of</strong> doing things and producing new types <strong>of</strong> goods andservices. However, the response to these changes and challenges in Europe varies tremendouslyfrom place to place, and it seems that the majority <strong>of</strong> rural and peripheral areas <strong>of</strong>ten lose out,despite the fact they now have the opportunity to connect with the rest <strong>of</strong> the world over electronicnetworks.The presentation attempted to give a synoptic view <strong>of</strong> problems and possibilities, and examinedwhat is really going on. To what extent can work become de-localised and provide newopportunities to support the social and economic development <strong>of</strong> remote and rural areas in Europe?Which regional development strategies are appropriate in linking remote and core areas, and whatpotential do eWork and flexible working have to enhance community life? Evidence was presentedto show that telework is largely an urban phenomenon employed by large organisations. So, theoverall evidence from rural and peripheral areas seems not to be encouraging and the prospectsunclear. On the other hand, the evidence we have is historical and does not necessarily predictthe future with accuracy. Similarly, there are a large number <strong>of</strong> cases which do show highlysuccessful initiatives in creating new jobs in these such areas. What is therefore needed is a clearunderstanding <strong>of</strong> the basis for success and an analysis <strong>of</strong> how and in what circumstances this can bereplicated elsewhere. Regional disadvantage in the knowledge economy is just as much a centralconcern in discussions about the so-called digital divide as are skills, gender, income and otheraspects. The conclusions <strong>of</strong> this presentation are incorporated into the overall lessons from thesession given at the end <strong>of</strong> this report.Seppo Peltola (Ministry <strong>of</strong> Interior, Finland) presented a very Finnish approach to bolstering thee-activities <strong>of</strong> local and regional areas through the establishment <strong>of</strong> local portals. Finland has beenalmost unique in developed countries in retaining local monopoly telecom companies based onlocal cooperation and ownership. Free competition was, however, also introduced in 1996 in orderto support the development <strong>of</strong> new information networks. These platforms are now being used tosupport 50 initiatives to build local information networks and services, each geared to the uniquespecific characteristics and needs found in different places. These local/regional portals typicallycover an area <strong>of</strong> up about 30 km radius based upon:

224• public services• local private sector• third sector• local markets• local co-operation• email for citizens• Internet-connectionsThe basis for establishing such portals is the ability to draw widely upon local, regional andnational resources and cooperation, overall with the following inputs:• physical networks• citizens and learning• private sector, working opportunities, eWork• services <strong>of</strong> district government• local cooperation, local development• participation, grass-roots democracy• municipal servicesResults so far are very encouraging and are showing how local cooperation, where municipalitieswork together, can use common solutions adapted to local needs to give improved local businessopportunities. Problems remain, however, including the need for even more cooperation and thefact that there are, as yet, few WWW kiosks or free PCs which are needed to counter the <strong>of</strong>tenhigh prices and continuing inequality. Although the infrastructures are largely based upon freecompetition plus local investment in cooperation with Internet Service Providers, it has also beennecessary for some government funding to ensure high speed connections.The view is growing that such local portals and local ICT infrastructure should be seen as astandard and ubiquitous infrastructure analogous to the electrification <strong>of</strong> the Finnish countrysideor providing basic telephone services for everyone. It is accepted that local and regional eBusinessand eGovernment cannot spread widely without such portals, but that the approach taken needs tobe seen as an evolutionary, rather than revolutionary, one.The last, but by no means least, presentation was made by Tauno Korpela (Managing Directorfor Koillismaan Yrityspalvelukeskus Oy, Finland) concerning the development <strong>of</strong> local telematicsknow-how and business in Kuusamo, a town <strong>of</strong> 18,000 inhabitants in North-East <strong>of</strong> Finland.Korpela emphasised the importance <strong>of</strong> long-term strategic work. Since 1987 Kuusamo has beenactive in developing systems and telematic services that helps people to communicate and workpr<strong>of</strong>itably. This has been initiated through the five point program:1 Development <strong>of</strong> telematics culture and know-how2 Utilisation <strong>of</strong> information technology in business3 Improvement <strong>of</strong> telematic infrastructure4 Involvement <strong>of</strong> relevant interest groups5 Emphasis on the improvement <strong>of</strong> telematic image <strong>of</strong> the municipality

225As a result <strong>of</strong> these developments, tens <strong>of</strong> projects with various partners have shown manyachievements:• Today about 150 citizens study in Kuusamo in universities and 100 in polytechnics, althoughthe closest universities and polytechnics are situated 200 km away.• In 1987, nobody in Kuusamo worked for ICT companies. Today about 250 do: more than onehundred <strong>of</strong> them developing s<strong>of</strong>tware and solutions, in many cases for travel sector, and the restin call / contact centers. Because <strong>of</strong> this the unemployment rate has decreased more than3%-units that means about 15 % less unemployed people.• Kuusamo (and the region around the town) was among the first in Finland to open the fastWide Area Network (WAN). Today a WLAN (Wireless Local Area Network) provides evenmore advantage for our companies and other organisations.• Cooperation, Public Private Partnership in reality, and long-term strategic work are foundations<strong>of</strong> this success. An essential element is the network <strong>of</strong> good partners from outside Kuusamo.• Kuusamo is now well known in Finland for its development work in telematic services andsolutions. We work to fulfill the objectives <strong>of</strong> the “Regional Centre Development Programme”managed by the Ministry <strong>of</strong> the Interior.Koillismaan Yrityspalvelukeskus (YPK) Oy has been involved in this development for years. Inaddition to the work at local and regional level, YPK has a long experience <strong>of</strong> sales, marketing,exports and international projects. YPK helps companies and other organisations to be successfuland take pr<strong>of</strong>itable actions in changing circumstances.

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227PARALLEL SESSION PRESENTATIONSVIII Work and sustainability

228The Knowledge Economy and SustainabilityLennart Forsebäck, Managing Director FörsebäcIT & Euro Intelligence AB, SwedenIt is today widely recognised that achieving sustainability without the use <strong>of</strong> ICT solutions will notbe possible. However, there are no automatic links between use <strong>of</strong> ICT and sustainability. Quiteon the contrary there are risks <strong>of</strong> so-called “rebound effects”. As a matter <strong>of</strong> fact the connectionbetween ICT and sustainability is complex and research in the field is still in its infancy.Studies <strong>of</strong> some major fields where ICT can contribute in achieving sustainability all indicate agreat potential. Examples can be found in such areas as dematerialisation, substitution, improvedefficiency <strong>of</strong> transports and road informatics, improved efficiency <strong>of</strong> production and planning aswell as energy savings in homes and commercial premises. These opportunities are illustratedin the reports “Case studies <strong>of</strong> the Information Society and Sustainable Development” and“The Knowledge Economy and Climate Change”. Both reports are published by the <strong>European</strong>Commission.It is also evident from these studies that a decreased environmental impact very <strong>of</strong>ten resultsin increased efficiency and pr<strong>of</strong>itability, improved quality in products, cost savings etc. Thus,sustainability might seem to be “business <strong>of</strong> the business”. However, from a general point <strong>of</strong> viewthis is obviously not the case.The potential obviously will not be fully realized unless society’s incentives structure changes, i. e.taxes, bonuses etc. but probably also legislation. E-work is just one example here. Why is it todayalmost impossible to make tax deductions on costs for an extra room for work at home, while it isnot only accepted but as a matter <strong>of</strong> fact strongly encouraged by economic subsidies to travel towork 5 days a week with a private car?The word “eco” comes from Greece and means home. Today we have two sciences, economy andecology, which obviously do not have very much in common. But we have just one “eco”, onehome, one planet. Perhaps it is not realistic today to create one common discipline. However itwould be a big step forward if we could at least try to use a common language. A common languagewhere terms like pr<strong>of</strong>itability, economic development, surplus, deficit etc. could also include theecological aspects.The knowledge economy gives an opening here. Unlike in traditional economic theory the concept<strong>of</strong> scarcity has no relevance in the knowledge economy. Contrary to land, traditional labour, naturalresources and other limited resources knowledge is inexhaustible. It may be used by severalcompanies or individuals simultaneously. And knowledge may be used to produce even moreknowledge. The more we use it and pass it on, the more it proliferates, the more it grows.

229The knowledge economy is not <strong>of</strong> scarcity, but rather <strong>of</strong> abundance. Unlike most resourcesthat are running out when used, information and knowledge can be shared, and actually growthrough application. Therefore the knowledge economy is a key in our efforts to find a way tosustainability.Further information regarding Mr Forseback, Forsebäck IT & Euro Intelligence AB and teleworkcan be obtained from the URL: www.forseback.se

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231PARALLEL SESSION PRESENTATIONSIX Academic session

232The academic workshop “T -world 2001”,Workshop summaryReima Suomi, Pr<strong>of</strong>essor <strong>of</strong> information systems science,Turku School <strong>of</strong> Economics and Business Administration, FinlandThe organizers <strong>of</strong> the <strong>8th</strong> International <strong>Assembly</strong> on New Ways to Work wanted to have a strongacademic participation to the main conference, and so an academic subconference was set up. Wecalled this workshop, as the main focus is on working out new research, not just presenting readyresearch.The workshop contained a presentation <strong>of</strong> 21 papers, from 9 different countries. The published21 papers were selected out <strong>of</strong> a group <strong>of</strong> 34 papers. There were separate tracks for both researchreports, research in progress – reports and industry and case studies. The academic workshop wasopen for all the participants <strong>of</strong> the main conference. The published proceeding “Suomi, Reima(editor)(2001) <strong>Proceedings</strong> <strong>of</strong> t-world 2001. Academic workshop in connection with The EightInternational <strong>Assembly</strong> on Telework, Helsinki 12-14.9.2001. Labour Policy Studies 231, Ministry<strong>of</strong> Labour, Finland.” is already unfortunately outsold, which is one indicator <strong>of</strong> the interest towardsthe workshop.The papers went through a normal academic blind review. The international program committeewas led by doctor Paul Jackson from Brunel University, UK. The other members <strong>of</strong> the programcommittee were:Ulrich FrankUniversität Koblenz-Landau, GermanyPekka HuuhtanenInstitute for Occupational Health, FinlandStefan KleinUniversität Münster, GermanySatu LähteenmäkiTurku School <strong>of</strong> Economics and Business Administration, FinlandKrys MarkowskiESIEE: Graduate School in Electricaland Electronic Engineering, Paris, FranceTarja NupponenUniversity <strong>of</strong> Tampere, FinlandBirger RappLinköping University, SwedenWendy SpinksKansai University, JapanReima SuomiTurku School <strong>of</strong> Economics and Business Administration, FinlandMarja VehviläinenUniversity <strong>of</strong> Turku, FinlandEdgar WhitleyLondon School <strong>of</strong> Economics, UKHans-Dieter Zimmermann University St. Gall, SwitzerlandThe discussed topics during the workshop fit in – more or less strictly – under the headings <strong>of</strong>• Trust, social and intellectual capital and other “s<strong>of</strong>t” conditions for successful telework• Building <strong>of</strong> trust and social and intellectual capital in virtual organizations• Different forms <strong>of</strong> trust and social and intellectual capital in organizational context• Implementation <strong>of</strong> trust into organizational context• Availability and functions <strong>of</strong> intellectual and social capital in organizations• Implications <strong>of</strong> research on trust and social and intellectual capital for telework and virtualorganizations. They represent different research traditions and contain both conceptual discussionand empirical findings.

233The paper <strong>of</strong> Shiri Ahuja, “Functional Integration Through Alternative Officing: ParticipativeStrategies for Creating Suitable Structures” discusses the role and importance <strong>of</strong> flexible <strong>of</strong>ficesolutions for firm performance. She too stresses the importance <strong>of</strong> participative design even as itcomes to telework and <strong>of</strong>fice solutions.Chrystal Fulton discusses in her paper “Organizations, Home-based eWorkers, and the Provision<strong>of</strong> Work Tools in the eWorkplace” the distribution <strong>of</strong> responsibilities between employers andemployees <strong>of</strong> keeping technical infrastructure available for teleworkers. A second paper byChrystal Fulton co-authored by Edward Halpin and Steve Walker, titled “Privacy Meets HomebasedeWork” discusses the sensitive area <strong>of</strong> privacy and monitoring in homework. At home, aboundary between the private and public spheres must be drawn.Mayumi Hori in her paper “The Development <strong>of</strong> IT and a New Work Format for Women in Japan”sees telework as a means to emancipate Japanese women. Through a rich statistical analysis sheshows that positive trends are already visible, but notes too that a lot still remains to be done.Jeanne Jimenez, with the paper “Surveillance in a Context <strong>of</strong> Remote Work: the Janus Syndrome,from Trust to Electronic Control”, brings up the topic <strong>of</strong> electronic surveillance <strong>of</strong> teleworkers.Trust and electronic surveillance support each other, and the management <strong>of</strong> telework should bebased on a deliberate balance between them, to be worked out case by case.Maarit Lahtonen contributes the paper “Development <strong>of</strong> Intergroup Cooperation with ActionResearch”. In this methodologically-oriented paper, she discusses through cases possibilities tosupport and develop inter-group co-operation.Beverly and Owen Leeds, in their paper “Trusting Teleworkers” present a conceptual model<strong>of</strong> trust in telework situations. They differentiate between four types <strong>of</strong> trust: calculative,contractual, valuebased and system trust. All <strong>of</strong> these can and should be used to support teleworkarrangements.Anita Lundin and Birgitta Persson presented the paper “Implementation <strong>of</strong> Trust-based Strategiesand Structures in the Organisational Context”. They underline that organizational arrangementsmust support teleworker motivation and participation. Only through that will the employing firmtoo benefit.The group Anna Moberg, Birger Rapp, Charlotte Stolz and Carl-Johan Petri contributed twopapers. In the paper “How Can One Minus One Equal Three” they study the Swedish area <strong>of</strong>Ljusdal, and search for the success factors <strong>of</strong> this area in its introduction <strong>of</strong> telecenters to the area.The second paper, “Managing Geographically Dispersed Data Acquisition” discusses the difficulties<strong>of</strong> acquiring company and process data to central databases. Often a mandatory data inputrequirement is needed, as in the case DHL presented in the paper.Mikko Ruohonen, in his article “Knowledge Networks in Information Industries – Implicationsto Knowledge Work Management Practices” discusses management challenges in modernorganizations, where knowledge creating and capturing are essential key functions.

234Klaudia Smolag gave her article a very self-explanatory name “Distance Learning in Poland”.Despite clear advantages, distance learning is not yet so much in use as it should and could be.Many teachers feel that computer-network –based education would necessitate very high computingskills. The paper reports too results from a survey conducted by the author in several Polishuniversities.Barbara Steward and Wendy Spinks contributed the paper “Telework and Health Management:UK and Japanese Research”. The paper discusses occupational health outcomes <strong>of</strong> telework. Bothsimilarities and differences between UK and Japan are found. The paper shows that telework willmake necessary a totally new approach to and definition <strong>of</strong> “sickness” and “absence” in workingrelations.Wolfgang Appelt and Konrad Klöckner presented the paper “Tele-cooperation with the BSCWShared Workspace System”. The acronym comes from the words “Basic Support for Co-operativeWork”. This system, partly developed by EU Finance, is already in wide use in Europe, anddescribed in great detail in the paper. Teleworking relationships are one natural application areafor this system.Wolfgang Heilmann, in his paper “Theses and Objectives on the Management <strong>of</strong> Tele-Processes”discusses the wide array <strong>of</strong> application <strong>of</strong> telecommunication in our society. He calls for newmanagement and leadership practices to take advantage <strong>of</strong> these new teleprocesses.Timo Kultanen too named his paper “Emotional Intelligence in Superior Knowledge Work” in aself-explanatory way. The paper stresses the importance <strong>of</strong> emotional intelligence in knowledgework, and focuses especially on the emotional intelligence skills <strong>of</strong> managers in teleworkrelationships.Pasi Pyöriä, with the paper “The Problems and Possibilities <strong>of</strong> Telework: a Critical Assessment”brings to discussion the fact that relatively few Finns actually engage themselves in traditionalwork-contract based telework. He recommends telework contracts to be made explicit and formal,and organizations to start with part-time telework.Hannu Salmela contributed the paper “From Generalists to Specialists: Managing Knowledge in aDistributed Service Organization”. The paper discusses the simultaneous challenges <strong>of</strong> providingservice close to customers, but at the same time maintaining organizational learning and sharedknowledge.Matti Vartiainen discussed “The Functionality <strong>of</strong> Virtual Organizations”. The paper studies thefunctions <strong>of</strong> virtual organizations from several conceptual viewpoints, and documents throughthree cases the frameworks in practice.Mikko Tarkiainen, in the paper “Mobile Tools for e-working in Geographically DistributedTeams - Cases: Electrolux Zanussi and Nokia Corporation”, presents results around an EU project“Motion”, which is to provide conceptual architectures and later concrete products to supportmobile workers.Lars Tollet, with the paper “Towards a More Sustainable Economy in Suburbia?”, provided adetailed case study <strong>of</strong> a Finnish cooperative enterprise, Taitoverkko. The case is discussed fromthe viewpoint that such cooperations could save rural areas from decline.

In total, the conference once again manifested the need for telework research. Despite currentrich selection <strong>of</strong> conferences and other publication outlets in the area, this workshop too managedto attract several participants and a lot <strong>of</strong> interesting papers. With the organization <strong>of</strong> thisconference, Finland again took a small step towards being a leading nation not just in ICTtechnologyprocurement, but too in its wise and careful application in organizations and in thesociety.235

236

237Appendix AE -WORK 2001 ConferenceHelsinki 12th-14th September 2001, Finlandia Hall, HelsinkiWednesday 12 September10.00 - 12.30 Opening sessionChair: Mr. Markku Wallin, Permanent Secretary, Ministry <strong>of</strong> Labour Finland10.05 Ms. Tarja Filatov, Minister <strong>of</strong> Labour10.20 Mr. Jorma Sipilä, Rector, University <strong>of</strong> Tampere10.30 Mr. Peter Johnston, Head <strong>of</strong> Unit <strong>European</strong> Commission DG Information society10.50 Mr. Jorma Ollila, CEO Nokia Corporation11.10 Ms. Anna Diamantopoulou, Commissioner for Employment and Social Affairs11.25 Mr. Michael Nelson, Director <strong>of</strong> <strong>European</strong> Sales and MarketingTranscom World Wide S.A.11.45 Ms. Jane Knight, Consultant, ILSG Training -UK Cisco Systems Inc.14.00 - 15.30 e-work through EuropeChair: Mr. Jacques Babot, <strong>European</strong> Commission DG Information Society14.00 Mr. Werner B. Korte, Director, Empirica e-work in Europe14.45 Mr. Teppo Turkki, Elisa Communications Learning mindset - the culture <strong>of</strong> workingin cyberspace and the Internet16.00 - 17.30 Levels <strong>of</strong> Co-operationChair: Mr. Andrew Miller, Member <strong>of</strong> Parliament, UK16.00 Mr. Göran Hultin, Executive Director Employment Sector ILOThe ICT Impact on the world <strong>of</strong> work - the ILO World Employment Report16.20 Mr. Renato Ritzzo, ItalyStrenghtening labour standards and best practices in <strong>European</strong> teleworking.16.35 Mr. Mikko Nyyssölä, Senior Legal Adviser UNICEHow can our Legislation Meet the Demands <strong>of</strong> New Forms <strong>of</strong> Work16.50 Mr. Dominique Be, Deputy Head <strong>of</strong> Unit EC DG Employment and Social AffairsPromoting a <strong>European</strong> framework for corporate social responsibility -<strong>European</strong> Commission’s Green paper17.05 Panel discussion

238Thursday 13 September9.00 - 10.00 Plenary SessionChair: Pr<strong>of</strong>. Tapio Varis, University <strong>of</strong> Tampere9.05 Ms. Sinikka Mönkäre, Minister <strong>of</strong> Trade and IndustryTelework and local entrepreneurship; new forms <strong>of</strong> work enabledby modern technology9.20 Keynote speakerDr. Karl-Erik Sveiby, Macquarie Graduate School <strong>of</strong> Business, SydneyIntellectual capital14.00 - 15.00 Plenary sessionChair: Pr<strong>of</strong>. Kari-Jouko Räihä, Vice rector, University <strong>of</strong> Tampere14.00 Dr. Arto Karila, Karila A. & E. OyInformation Security in E-work14.30 Mr. Andrew Harrison, Director Research and Methods DEGWAccommodating the new Economy14.55 Mr. Ian Culpin, Martech International S.A.e - week 2001Friday 14 September10.00 - 12.30 Visions <strong>of</strong> FutureChair: Mr. Peter Johnston, <strong>European</strong> Commission DG Information Society10.00 Ms. Ursula Huws, Director, Analytica UKVirtual work in a real world10.30 - 12.15 Summaries <strong>of</strong> the previous day by session chairs12.15 MP Markku Markkula, Committee for the Future, Parliament <strong>of</strong> FinlandInventing the Future - Creating Knowledge Society13.15 - 15.00 <strong>European</strong> perspectives on the knowledge societyChair: Mr. Matti Salmenperä, Ministry <strong>of</strong> Labour, Finland13.15 Pr<strong>of</strong>. Dr. Dr. Franz Josef Radermacher, FAW, GermanyEquity and sustainability13.40 Pr<strong>of</strong>. DA Turkka Keinonen, University <strong>of</strong> Art and Design Helsinki UIAHUser experience with communication technology14.00 Dr. Timo Kauppinen, Research Manager, <strong>European</strong> Foundation<strong>European</strong> knowledge foresight14.15 MP Jouni Backman, Parliament <strong>of</strong> Finland,Summary from EPRI meeting14.30 Mr. Erkki Liikanen, Commissioner for Information Society14.45 Mr. Matti Salmenperä, Director, Ministry <strong>of</strong> Labour, Finland

239Year 2002 conferenceParallel sessions on Thursday 13th September1. Global dimensions <strong>of</strong> the knowledge economy10.30 - 12.30Chair: Mr. Josef Hochgerner, Centre for Social Innovation, Austria10.30 Mr. Jari Närhi, Solution Product manager IBSG Finland Cisco Systemse-Working - a challenge to an organisation’s readiness11.00 Mr. Jonathan Cave, RAND EuropeOld Bits in new bytes: implications <strong>of</strong> the ’new’ economy <strong>of</strong> information,knowledge and belief for working life.11.30 Mr. Walter Paavonen, Paavonen Consulting, SwedenEthics in Business - the VIP project12.00 Mr. Miguel Reynolds Brandão, Teleman, PortugalAPDT’s contribution to the development <strong>of</strong> the knowledge economy2. Technologies for work and business10.30 - 12.30Chair; Ms. Vivianne Wennersten, Ericsson Radio Systems, Sweden10.30 Mr. Pertti Hölttä, Head <strong>of</strong> network services R&D, Elisa Research Center,Presentation <strong>of</strong> existing and future data networks and services11.00 Mr. Juha Pekka Weckström, Vice President, Sonera Juxto InternationalOffering mobile enterprise applications for new wireless era11.30 Mr. Pasi Rajander Siemens, FinlandSiemens case: Knowledge sharing by videonegotiation. Arranging e-training withSiemens osakeyhtiö (Finland) and Baltic subsidiary companies12.00 Dr. Päivi Piironen, Director Mobile Technologies, TelewareAre you ready for tomorrow? Teleware solution for successful training3. e-work in Central and Eastern Europe10.30 - 12.30 Telework - an opportunity for regional developmentChair: Pr<strong>of</strong>. Edvins Karnitis, Ministry <strong>of</strong> Economy, Republic <strong>of</strong> Latvia10 minutes short presentations:10.45 Mr. Pekka Ylöstalo, Researcher, Ministry <strong>of</strong> Labour, FinlandWorking Life Barometer in the Baltic Countries10.55 Mr. Jaro Berce, Government <strong>of</strong>fice for <strong>European</strong> Affairs, SloveniaTelework reality within Slovene administration11.10 Ms. Klaudia Smolag, Technical University <strong>of</strong> Czestochowa, PolandThe models <strong>of</strong> Implementation telework process in the Polish conditions11.20 Ms. Andrea Wesselenyi, Freelance journalist, HungaryThe present and future in telework in Hungary11.30 Mr. Taavi Valdlo, Senior Specialist, Estonian Informatics CentreTelework in Estonia: preconditions and use11.50 Round Table discussion: e-work in Central and Eastern Europe

2404. Work and business on the net10.30 - 12.30Chair: Mr. John Nolan <strong>European</strong> Commission DG Information Society10.30 Mr. Leopold Reif, H<strong>of</strong>fmann+Reif Consultancy, Germany,Extended enterprises and value chain networks: new requirements for methods<strong>of</strong> work, HRD and e-work applications11.00 Mr. Hannu Luukka Managing Director Uniqmed Ltd.Solving <strong>of</strong> the Health Care Paradox11.30 Mr. Stefano Lotti and Angelo Canaletti Brain Workers, ItalynetOrganisation12.00 Mr. Martti Savolainen Director, SecGo Solutions, FinlandSecure e-work5 New structure - better work?15.00 - 18.00Chair: Ms. Nicole Turbe-Suetens, Distance Expert, France15. 00 Mr. Karsten Gareis, Empirica, Germanye-lancing- the future <strong>of</strong> work?15.20 Mr. Patrizio Di Nicola, Dinicola.it research, ItalyHome telework as a key action to increase work satisfactionamong call centre operators15.40 Ms. Birgitte Yttri and Mr. John W. Bakke Telenor R&D, NorwayWorking in private and public spaces16.30 Mr. Jacques Babot and Mr. John Sherwin, EC DG Information Societye-work in the <strong>European</strong> Commission17.00 Mr. Asko Alanen, Managing Director, Jabba Corp. FinlandLocation as a challenge17.20 Dr. Pekka Himanen, Philsopher, Berkeley UniversityThe Hacker Ethic6. Development <strong>of</strong> working life15.00 - 18.00Chair: Dr. Tuomo Alasoini, Ministry <strong>of</strong> Labour, FinlandIntroduction to workplace development in an environment <strong>of</strong> knowledge-based economy15.15 Pr<strong>of</strong>. Björn Gustavsen, Work Research Institute and Reseacrh Council <strong>of</strong> NorwayNew forms <strong>of</strong> work and the legitimacy to organise16. 30 Ms. Ursula Zahn-Elliot, Federal Ministry <strong>of</strong> Education and Research, GermanyInnovative workplace development and the future <strong>of</strong> work17.15 Liisa Varjokallio, Vice President Human Resources DevelopmentElisa Communications Corporation andPr<strong>of</strong>. Yrjö Engeström, Center for Activity Theory and Developmental Work Research,University <strong>of</strong> HelsinkiCompetence laboratory renews working communities

2417. Community developments15.00 - 18.00Chair: Mr. Jeremy Millard, Danish Technological Institute, Denmark,15.00 Mr. Eystein Fossum, Semco AS, Norway,Telework as a method for moving work tasks to some district areas in Norway15.20 Dr. Sirkka Heinonen VTT Building and Transport, FinlandEco-managed e -work as a new urban and regional strategy15.40 Mr. Jeremy Millard, Flexwork -project, DenmarkFlexible working in rural and remote regions -- <strong>European</strong> experience andprospects16.30 Mr. Seppo Peltola, Ministry <strong>of</strong> Interior, FinlandRegional portals16.45 Mr. Norman L Macdonald, Chairman Education CommitteeVice-Chairman Policy and Resources Committee, The Western Isles, ScotlandThe Western Isles Scotland; ICT and Job Creation17.15 Mr. Tauno Korpela, Koillismaan Yrityspalvelukeskus, FinlandDevelopment <strong>of</strong> local telematics know-how and business in Kuusamo8. Work and Sustainability: Stories about e-Lifestyles15.00 - 18.00Chair: Mr. Matti Penttilä, VTT Information Technology, Finland15. 00 Pr<strong>of</strong>. Franz Josef Radermacher, FAW, GermanyInformation society, globalisation and sustainable development:Impact on the environment15.20 Mr. Lennart Forsebäck, Forsebäck IT & Euro Intelligence, SwedenThe knowledge economy and sustainability15.40 Dr. Robert Pestel, <strong>European</strong> Commission DG Information SocietyTowards more sustainable ways <strong>of</strong> work5-10 minutes short presentations to catalyse the panel discussion.16.30 Mr. Stephen Simmons, Addico Cornix Ltd, UKEnabling e-Lifestyles: immaterialisation <strong>of</strong> consumption16.40 Mr. Jesse Marsh, Atelier Associato, SicilyCultural diversity contributing sustainability16.50 Dr. Auli Keskinen, Ministry <strong>of</strong> Environment, FinlandCitizens in the sustainable information society - e-commerce and new ways <strong>of</strong> work17.00 Panel on sustainable stories9. Academic session t -world 2001(see the presentations www.telework2001.fi)

242Appendix BConference OrganisersThe conference was organised by the Ministry <strong>of</strong> Labour and the University <strong>of</strong> Tampere with thesupport <strong>of</strong> the <strong>European</strong> Commission and the other partners.Programme CommitteeMr. Matti Salmenperä, Director, Ministry <strong>of</strong> Labour,Mr. Peter Johnston, The Head <strong>of</strong> Unit, New methods <strong>of</strong> work, EU DG Information societyMr. Kari-Jouko Räihä, Vice-Rector, University <strong>of</strong> TampereMr. Tapio Varis, Pr<strong>of</strong>essor, Docent, University <strong>of</strong> TampereMr. Markku Leppäalho, Director, University <strong>of</strong> Tampere/Institute for Extension StudiesMr. Reima Suomi, Pr<strong>of</strong>essor, Turku School <strong>of</strong> Economics and Business AdministrationMs. Marja Vehviläinen, Docent, University <strong>of</strong> TurkuMr. Walter Paavonen, Licentiate <strong>of</strong> Economics, Paavonen Consulting Ltd.Ms. Päivi Eriksson, Docent, University <strong>of</strong> Tampere and National Consumer Research CentreMr. Patrizio Di Nicola, EWORKS SpASteering CommitteeMr. Matti Salmenperä, Director, Ministry <strong>of</strong> Labour, Chairman <strong>of</strong> the Steering CommitteeMr. Kari-Jouko Räihä, Vice-Rector, University <strong>of</strong> TampereMr. Jorma Taskinen, Vice-Director, University <strong>of</strong> Tampere/Institute for Extension StudiesMs.Tarja Nupponen, Coordinator, University <strong>of</strong> Tampere/Institute for Extension StudiesMr. Matti Sippola, Senior Adviser, Regional Development, Ministry <strong>of</strong> the InteriorMs. Outi Viljamaa, , Ministry <strong>of</strong> Labour, ESFMr. Eero Polus, Labourmarket Counsellor, Ministry <strong>of</strong> LabourMr. Juhani Pekkola, Senior Planning Officer, Ministry <strong>of</strong> LabourAcademic activitiesPr<strong>of</strong>. Reima SuomiTurku School <strong>of</strong> Economics and Business AdministrationInstitute <strong>of</strong> Information Systems ScienceP.O. Box 110, FIN-20521 TurkuTel. +358-2-3383 409Fax +358-2-3383 451Mobile +358-40-556 3053reima.suomi@tukkk.fiSecretary General <strong>of</strong> the ConferenceMs. Tiina HanhikeMinistry <strong>of</strong> LabourP.O. Box 34, FIN- 00023 GovernmentTel. + 358-9-1604 9062Fax + 358-9-1604 9090Mobile + 358-40-553 2755e-mail tiina.hanhike@mol.fi

243Appendix CList <strong>of</strong> ParticipantsNAME ORGANIZATION COUNTRYAaltonen Tellervo Elisa Communications Corporation FINLANDAbdul-Hayye Yartey Accra Polytechnic GHANAAf Heurlin Martti The National Technology Agency FINLANDAhonen Mikko Elisa Communications Corporation FINLANDAitta Ulla AKAVA FINLANDAlajärvi-Kauppi Riitta Kemi-Tornio Polytechnic FINLANDAlanen Asko Jabba Corporation FINLANDAlasoini Tuomo Ministry Of Labour FINLANDAlbassir Kais Protelko BELGIUMAli-Kovero Rauno City Of Salo/Green Valley FINLANDAlitalo Sirpa Ministry Of Trade And Industry FINLANDAnderson Stefan Kolumbus FINLANDAndreasen Lars Erik <strong>European</strong> Commission BELGIUMAngulo Eneritz Gordexola Town Mall SPAINAntila Juha Ministry Of Labour FINLANDAnttonen Marja Decretum Solutions Oy FINLANDApostolova Mirjana Information System Department MACEDONIAAppelt Wolgang GMD GERMANYArmslag Jean-Christophe BT IgniteBELGIUMAtanassov Youri Information & S<strong>of</strong>twareInternational ServicesBULGARIAAulilo Sari Arlainstitute FINLANDAuvinen ErkkiFinnish Confederation <strong>of</strong>Salaried EmployeesFINLANDBabot Jacques <strong>European</strong> Commission BELGIUMBabravicius Gintautas Parliament LITHUANIABackman Jouni Committee For The Future FINLANDBakke John W. Telenor R&D NORWAYBe Dominique <strong>European</strong> Commission BELGIUMBerce Jaro Government Office For <strong>European</strong> Affairs SLOVENIABevk Samo National <strong>Assembly</strong> SLOVENIABibby Andrew Write And Journalist UNITED KINGDOMBista Babu Krishna Chakra-Byha Weekly Newspaper NEPALBjerrum Eva The Alexandra Institute DENMARKBlom Raimo University Of Tampere FINLANDBobke Manfred Bundes-Pensions-Service Für PostUnd Telekommunikation E.VGERMANYBoman EmmaMinistry Of Industry, EmploymentAnd CommunicationsSWEDENBorén Mika MediMaker FINLANDBorg Matti Siemens FINLANDBuch Anders The Society Of Danish Engineers DENMARK

244Bäck Pekka Virtual Toolbox Oy FINLANDBäck Riitta Ministry Of Finance /State Employer’s OfficeFINLANDBäckström Ritva Parliament Of Finland FINLANDCanaletti Angelo BrainWorkers Ltd. - Unicity Ltd. ITALYCarte José Javier Iturbrok, S.L. SPAINCave Jonathan RAND Europe NETHERLANDSCipparone Gialorenzo BrainWorkers Ltd. - Unicity Ltd. ITALYCulpin Ian Martech International S.A. BELGIUMD’Angelo Giuseppe ITI Francesco Gordani ITALYDaly Nuala Enterprise Ireland IRELANDDescamps Pol T. Pol T. Descamps & Partners BELGIUMDi Maio Salvatore Servizio Europa - Comune Di Napoli ITALYDi Nicola Patrizio Dinicola.It Research ITALYDownes Barry Waterford Technologies IRELANDDreesen Flemming Danish Employer’s Confederation DENMARKDuong Le Hang Ministry Of Labor &Government AdministrationNORWAYEdmund Joseph Kakra University Of Cape Coast GHANAEkes Ildiko Ecostat HUNGARYEksten Viola DIT Center FINLANDEngström Mats-G Stockholms Universitet SWEDENErvin Endel Telecottages-Estonia ESTONIAFillon Ashida Pierrick <strong>European</strong> Commission BELGIUMForsebäck Lennart Forsebäck IT & Euro Intelligence AB SWEDENFossum Eystein Semco AS NORWAYFriberg Pentti DIT Center FINLANDFriberg Solveig DIT Center FINLANDFrith Gordon Comhairle Nan Eilean Siar UNITED KINGDOMFulton Crystal University College Dublin IRELANDGareis Karsten Empirica GmbH GERMANYGiannuzzi Stefano Unicity ITALYGlennon Mary Enterprise Ireland IRELANDGocht Birgit AHCIET SPAINGonzalez Manuel University Of Barcelona SPAINGranfors Rauno Pinus Computer FINLANDGuedj David <strong>European</strong> Commission BELGIUMGunnarsson Ewa National Ins. For Working Life SWEDENGustavsen Björn Work Research Institute NORWAYGuth René <strong>European</strong> Commission BELGIUMGuzzo Andrea BrainWorkers Ltd - Unicity Ltd. ITALYHaatainen Tuula Parliament Of Finland FINLANDHakanen Olli Hakanen & Yläoutinen Ltd FINLANDHalme PetteriNational WorkplaceDevelopment ProgrammeFINLANDHanhike Tiina Ministry <strong>of</strong> Labour FINLANDHansen JanneThe Institute For The BlindAnd Partially SightedDENMARK

245Harle Bob <strong>European</strong> Patent Office NETHERLANDSHarrison Andrew DEGW plc UNITED KINGDOMHartlep Andreas BrainLAB AG GERMANYHarva Mona Radiolinja FINLANDHasemann Connie The Institute For The BlindAnd Partially SightedDENMARKHavukainen Vesa Imatran Seudun Kehitysyhtiö Oy FINLANDHeikkilä AskoNational WorkplaceDevelopment ProgrammeFINLANDHeikkilä Tauno Elisa Communications Corporation FINLANDHeikkinen-MoilanenRiitta-Liisa University Of Lapland FINLANDHeilmann Wolfgang Integrata-Stiftung GERMANYHeinola Ari University Of Tampere FINLANDHeinonen Liisa Ministry Of Labour FINLANDHeinonen Marja Ministry Of Transport And Communications FINLANDHeinonen Sirkka VTT Building And Transport FINLANDHeiskari Petri Transcom Finland Ltd. FINLANDHelin JyrkiThe Central Organisation OfFinnish Trade UnionsFINLANDHelleboid Marie-Cécile France Telecom FRANCEHemmilä Pertti Parliament Of Finland FINLANDHiera Kaarina Arlainstitute FINLANDHietala-Niiranen Ritva Sonera Corporation FINLANDHietanen Juha Ministry Of Labour FINLANDHiltunen Leea Parliament Of Finland FINLANDHirvilammi Tero Finnish National Fund forResearch and DevelopmentFINLANDHochgerner Josef Centre For Social Innovation AUSTRIAHodjeff Catherine <strong>European</strong> Commission BELGIUMHolmström John TTKK/Porin Korkeakouluyksikkö FINLANDHonkavaara Jouni Sampo FINLANDHorelli Liisa Helsinki University Of Technology FINLANDHori Mayumi Hakuoh University JAPANHougardy Andrée FOREM BELGIUMHuhtamäki Ulla Finnish National Gallery FINLANDHultin Göran ILO SWITZERLANDHunke PetraDeutschs Zentrum Fur Luft- Und Raumfahrt,German Aerospace CenterGERMANYHuotari Anne Parliament Of Finland FINLANDHuuskonen Mervi The Finnish Confederation <strong>of</strong>Salaried EmployeesFINLANDHuws Ursula Institute For Employment Studies UNITED KINGDOMHynynen Ilkka Maailmankylä Oy FINLANDHäyrynen Annakaisa Elisa Communications Corporation FINLANDIlina VictoriaCoordination Centre For InternationalScientific-Technical & Educational Programme RUSSIA

246Ilomäki Mika City Of Salo/Green Valley FINLANDIzumita Tomoko The University Of Aizu JAPANJackson Ian BT UNITED KINGDOMJackson PaulUNITED KINGDOMJalava Saila Elisa Communications Corporation FINLANDJansens Christel Ministry Of Social Affairs And Employment NETHERLANDSJatila Ulla Ministry Of Labour FINLANDJensen Arne Dansk Metal DENMARKJensen Marianne Danish Commerce And Services DENMARKJohnston Peter <strong>European</strong> Commission BELGIUMJukka Pirkko Ministry Of Labour FINLANDJyväsjärvi Riitta Elisa Communications Corporation FINLANDJänkälä Raimo University Of Lapland FINLANDJärviniemi Päivi Ministry Of Labour FINLANDKajasvirta Tuire Seimens FINLANDKallio Kirsti Ministry Of Labour FINLANDKangas Kalle Pori School Of Technology And Economics FINLANDKangasperko Raila Ministry Of Labour FINLANDKantanen Päivi Ministry Of Labour FINLANDKarali Paula Elisa Communications Corporation FINLANDKarila Juha Ministry Of Labour FINLANDKarjalainen Katriina Elisa Communications Corporation FINLANDKarjula Kyösti Parliament Of Finland FINLANDKarlqvist Harry The National Technology Agency FINLANDKarnitis Edvins Ministry <strong>of</strong> Economy <strong>of</strong> Latvia LATVIAKarppinen Virpi Elisa Communications Corporation FINLANDKarvonen Sirpa Lifelong Learning Institute Dipoli FINLANDKassymbek Zhaksybai Almaty Economical College KAZAKHSTANKatsanevas Theodore University Of Piraeus / Greek Parliament GREECEKauppi Hannu Ministry Of Labour FINLANDKauppinen Timo <strong>European</strong> Foundation IRELANDKeinonen Turkka University Of Art And Design Helsinki FINLANDKelly Dominic <strong>European</strong> Commission BELGIUMKeskinen Auli Ministry Of The Environment FINLANDKettunen Sari University Of Tampere FINLANDKieltyka Leszek Technical University Of Czestocholoa POLANDKiiras Ari Insinööriliitto Il Ry FINLANDKijasev Peter Slovtransgaz SLOVAK REPUBLICKing Sandra BT UNITED KINGDOMKinnunen Heikki Renatus Oy FINLANDKiukas Vertti Ministry Of Education FINLANDKivimäki Riikka Work Research Centre FINLANDKlemetti Kristiina Elisa Communications Corporation FINLANDKlimo Lubos Slovtransgaz SLOVAK REPUBLICKnight Jane Cisco Systems FINLANDKnudsen René HK/Denmark DENMARKKoblitz Werner BMBWK AUSTRIA

247Koivusalo Salla Helsinki University <strong>of</strong> Techology FINLANDKorpela Tauno Koillismaan Yrityspalvelukeskus Oy FINLANDKorpinen Pekka City Of Helsinki FINLANDKorte Werner Empirica GmbH GERMANYKostiainen Leila The Finnish Confederation <strong>of</strong>Salaried EmployeesFINLANDKottelin Kurt Elisa Communications Corporation FINLANDKraemer Marja-Leena Teleware FINLANDKrins Tanja Stadt Köln GERMANYKröger Tarja Ministry Of Labour FINLANDKuisma Risto Parliament Of Finland FINLANDKuitunen Tero Ministry Of Trade And Industry FINLANDKultanen Timo University Of Tampere FINLANDKurki Mika University Of Tampere FINLANDKurvinen Heli Elisa Communications Corporation FINLANDKuster Tatjana National <strong>Assembly</strong>, Republic <strong>of</strong> Slovenia SLOVENIAKyyriäinen Timo Transcom Finland Ltd. FINLANDKärkkäinen Kari Alma Media Corporation FINLANDKärkkäinen Merja Sonera Ltd FINLANDLaatikainen Päivi Ministry Of Labour FINLANDLagorce Jacques France Telecom FRANCELahtela Esa Parliament Of Finland FINLANDLahtinen Pasi University Of Tampere FINLANDLahtonen Maarit University Of Tampere FINLANDLaine TeresaFINLANDLaitinen Merja Cisco Systems FINLANDLaitinen RitvaThe Central Organisation OfFinnish Trade UnionsFINLANDLake Andy Flexibility .co.uk UNITED KINGDOMLapinleimu Maarit Ministry Of Labour FINLANDLappalainen Virpi National Workplace Development Programme FINLANDLappeteläinen Riitta-Liisa Finnish Work Environment FundFINLANDLarsson Marie Ericsson Radio Systems AB SWEDENLaukkanen Erkki The Central Organisation OfFinnish Trade UnionsFINLANDLaurila Kristiina National Technology Agency FINLANDLeeds Beverly University Of Central Lancashire UNITED KINGDOMLeeds Owen Liverpool Hope University UNITED KINGDOMLehtimäki Jouni Parliament Of Finland FINLANDLehtinen Sirkka Ministry Of Labour FINLANDLehtonen Merja University Of Tampere FINLANDLeminen Mervi Maailmankylä Oy FINLANDLemola Jouni Ministry Of Labour FINLANDLemström Tuomas Pinus Computer FINLANDLeppäalho Markku University Of Tampere FINLANDLeppänen Jorma Ministry Of Interior, Island Commitee FINLANDLeppänen Kaisa Hankasalmi commune FINLAND

248Leppänen Veli-Jukka TTKK/Porin Korkeakouluyksikkö FINLANDLevänen Jani Teleware FINLANDLifländer Tiina National Workplace Development Programme FINLANDLind Tuula Regionet Oy FINLANDLindblom Maria City <strong>of</strong> Helsinki FINLANDLindroos Pekka Ministry Of Trade And Industry FINLANDLinkola Pertti Ministry Of Labour FINLANDLintilä Kaisa-Leena Ministry Of The Interior FINLANDLiukkunen Ulla Ministry Of Labour FINLANDLorentz Frank Diebold Business Solutions GmbH GERMANYLotti Stefano BrainWorkers Ltd - Unicity Ltd. ITALYLundin Anita Takeeffect SWEDENLuntiala Hannu Population Register Centre FINLANDLutrand Michele AFPA FRANCELuukka Hannu Uniqmed Ltd FINLANDLux Karel Ministry Of Labour And Social Affairs CZECH REPUBLICLyra Leena Ministry Of Labour FINLANDLöppönen Paavo Committee For The Future FINLANDMaanavilja Aimo Elisa Communications Corporation FINLANDMacdonald Norman L. Comhairle Nan Eilean Siar UNITED KINGDOMMaclean Donald Comhairle Nan Eilean Siar UNITED KINGDOMMacphee Joseph Comhairle Nan Eilean Siar UNITED KINGDOMMalila Jukka Hankasalmi Commune FINLANDMañas Marta Asociación Cederna-Garalur SPAINMaori Pierluigi BrainWorkers Ltd - Unicity Ltd. ITALYMarkkula Markku Parliament Of Finland FINLANDMarquez Antonio Olgaria sl SPAINMarsh Jesse Atelier Associato, Sicily ITALYMees Ronald Belgian House Of Representatives BELGIUMMeininki Hannele Renatus Oy FINLANDMelin Harri University Of Tampere FINLANDMerikanto Niko HAUS FINLANDMertjärvi Rauha-Maria Parliament Of Finland FINLANDMiddleton Robert Dept. Of Trade And Industry UNITED KINGDOMMiettinen Minna University Of Tampere FINLANDMikkola Hannu University Of Lapland FINLANDMikkonen Sami Kolumbus FINLANDMillard Jeremy Danish Technological Institute DENMARKMiller Andrew House Of Commons UNITED KINGDOMMoberg Anna Linköping University SWEDENMokko Marja Cisco Systems FINLANDMonsen Annelise The Institute for the Blindand Partially SightedDENMARKMoreno Antonio University Of Barcelona SPAINMoreno Romero Ana Enred Consultores, S.L. SPAINMorrison Donnie Work-Global.Com UNITED KINGDOMMoses Edwin Femp (Gh) Ltd GHANA

249Mustikkamäki Nina University Of Tampere FINLANDMygind Mortensen Jan The Society Of Danish Engineers DENMARKMyhrman Rolf Ministry <strong>of</strong> Social Affairs and HealthMyllärniemi Katariina Ministry <strong>of</strong> Transport and Communications FINLANDMäki Jukka Chydenius Institute FINLANDMäkijärvi Jari Cisco Systems FINLANDMäntyvaara Juha Ministry Of Education FINLANDNaevdal Johannes Ementor / Norwegian Telework Project NORWAYNassi Didier <strong>European</strong> Commission BELGIUMNeittaanmäki Petri Parliament Of Finland FINLANDNelson Michael Transcom World Wide S.A.Nolan John <strong>European</strong> Commission BELGIUMNordman Håkan Parliament Of Finland FINLANDNorhomaa Esa Ente Consulting Oy FINLANDNupponen Tarja University Of Tampere FINLANDNurmivaara Jari Siemens FINLANDNyholm Anders Borgholms Kommun SWEDENNyyssölä Mikko Confederation Of FinnishIndustry And EmployersFINLANDNärhi Jari Cisco Systems Europe FINLANDObitz Wenche HK/Denmark DENMARKOikarinen Arja Elisa Communications Corporation FINLANDOinonen Lauri Parliament Of Finland FINLANDOmari-MensahKwadwo Lawrence Ust-School Of Mines GHANAOostmeijer Hans Deutsche Telekom BELGIUMOtsason TõnuThe Estonian Association OfRural TelecottagesESTONIAPaanetoja Jaana Labour Council/Ministry Of Labour FINLANDPaatero Sami Ministry <strong>of</strong> Transport and Communications FINLANDPaavonen Hilkka Paavonen Consulting AB SWEDENPaavonen Walter Paavonen Consulting AB SWEDENPagh-Rasmussen Niels KMD A/S DENMARKParviainen Sari Sonera Corporation FINLANDPekkarinen Eero Kemi-Tornio Polytechnic FINLANDPekkolaJuhani Ministry Of Labour FINLANDPeltola Pekka Ministry Of Labour FINLANDPeltola Seppo Ministry Of The Interior FINLANDPeltomo Pirkko Parliament Of Finland FINLANDPemberton Gary Scott Brownrigg + Turner UNITED KINGDOMPenttilä Matti VTT Information Technology FINLANDPenttilä Tapio University Of Turku FINLANDPerkiö SeppoConfederation Of FinnishIndustry And EmployersFINLANDPersson Birgitta Bivision SWEDENPesch Markus WEGE Im Kreis Düren mbH GERMANYPestel Robert <strong>European</strong> Commission BELGIUM

250Petri Carl-Johan Lindköping University SWEDENPetrova AmetaMinistry Of Labour, Social Affairs And Family SLOVAK REPUBLICPietarinen Aino SAK Palkkatyöläinen FINLANDPietikäinen Kristiina Ministry Of Transport And Communications FINLANDPiette Bénédicte FOREM BELGIUMPiki Elina Linovia Oy FINLANDPisch AngelaGerman Aerospace Center, Deutsches ZentrumFur Lutf- Und RaumfahrtGERMANYPohjolainen Seija Ministry Of Labour FINLANDPolus Eero Ministry Of Labour FINLANDPorsanger Marja-Leena University Of Lapland FINLANDPotila Sirkka Ministry <strong>of</strong> Labour FINLANDPrance Steve BT UNITED KINGDOMPrince Assibu Kasoa Training Center GHANAPudas-Jounila Tarja The National Technology Agency FINLANDPuhakka Janne Ministry Of Labour FINLANDPulkkis Anneli Helsinki University Of Technology FINLANDPyöriä Pasi University Of Tampere FINLANDQuaye Abass Chalmers University Of Technology SWEDENRadermacher Franz Josef FAWGERMANYRahikainen Osmo National Workplace Development Programme FINLANDRajander Pasi Siemens FINLANDRamstad EliseNational Development Workplace Programme FINLANDRannanpää Stefan Regional Council Of Ostrobothnia FINLANDRantonen Irma University Of Tampere FINLANDRapp Birger Linköping University SWEDENRastas Hannu Libart Oy FINLANDRastas Taru Ministry Of Trade And Industry FINLANDRautavuori-Jokinen Maria University Of TampereFINLANDRautio Nille Transcom Finland Ltd. FINLANDReif Leopold H<strong>of</strong>fmann+Reif Consultancy GERMANYReymen Dafne Protelko BELGIUMReynolds Brandão Miguel TelemanPORTUGALRinne Taina University Of Tampere FINLANDRinta-Mänty Risto Elisa Communications Corporation FINLANDRizzo Renato International Press ITALYRosche Thomas Diebold Business Solutions GmbH GERMANYRouhiainen Nuppu National Workplace Development Programme FINLANDRudolph Claudia Verdi GERMANYRuiz Arantza Gordexola Telecentre SPAINRuohonen Mikko University Of Tampere FINLANDRuth Kimmo Ministry Of Labour FINLANDRytkönen Tarja Tietoyhteiskunnan Tutkimuskeskus FINLANDRäihä Kari-Jouko University Of Tampere FINLANDRönni Tero Parliament Of Finland FINLANDSaarinen Hannu Hämeen Liitto FINLANDSaarinen MikaMinistry Of Finance / State Employer’s Office FINLAND

251Sajavaara AnuEmployers’ Association For TransportAnd Special ServicesFINLANDSalmela Hannu Turku School Of Economics AndBusiness AdministrationFINLANDSalmenperä Matti Ministry Of Labour FINLANDSalmi Helena SecGo Solutions FINLANDSalminen Karri Sonera Information Society Unit FINLANDSalo Jari Novetos Consulting Oy FINLANDSammo Musa-Baba Accra Technical Training Center GHANASantakallio Alpi Elisa Communications Corporation FINLANDSavioja Hannele National Board Of Education FINLANDSavolainen Martti SecGo Solutions FINLANDSaxlund Runa HK/Denmark DENMARKScherer Jörg<strong>European</strong> Research And Project Office GmbH GERMANYSchmidt Wolfgang Bremen Briteline GmbH GERMANYSeip Haugsnes Marianne Ministry Of Labor And Government NORWAYServitje Josep Maria Embassy <strong>of</strong> Spain DENMARKSherwin John <strong>European</strong> Commission BELGIUMSidelnikov Vladimr Coordination Centre For Internat.Scientific-Technical & Educational Programme RUSSIASimmons Stephen Addico Cornix Ltd UNITED KINGDOMSinervo Heikki Confederation Of FinnishIndustry and EmployersFINLANDSipiläinen Heikki Valtion Yhteisjärjestö VTY Ry FINLANDSippola Matti Ministry Of The Interior FINLANDSirnik Izotk Government Centre For Informatics SLOVENIASkinnari Jouko Parliament Of Finland FINLANDSlåen Torfinn Talent Code Oy FINLANDSmolag Klaudia Technical University Of Czestocholoa POLANDSorkio Anneli University Of Tampere FINLANDSpinks Wendy Science University Of Tokyo JAPANStefanov Krassen S<strong>of</strong>ia University BULGARIAStimmer Birgit Federal Ministry For Economic And Labour AUSTRIAStoltz Charlotte Linköping University SWEDENStueflaten Bodil Ministry Of Labour And Administration NORWAYStupple Minna Sonera Solutions Ltd. FINLANDSuomi Reima Turku School <strong>of</strong> Economics FINLANDSuvanto Jarno Kolumbus FINLANDSvento Reijo FiCom FINLANDSyrjämö Reino Pinus Computer FINLANDSzabo Stefan Slovtransgaz SLOVAK REPUBLICSögaard Iben HK/Denmark DENMARKTaipale Antti-Olli Ministry Of The Interior FINLANDTalvitie Juha Talvitie Consulting FINLANDTarkiainen Mikko Nokia Research Center FINLANDThapa Mohan Bir Today Nat’l NAD Int’l Monthly Magazine NEPALTiainen Pekka Ministry Of Labour FINLAND

252Toia Adrian CRIE ROMANIAToivonen Pertti Ministry Of Labour FINLANDTollet Lars Järvenpään Joustotyöyhdistys FINLANDTolonen Veijo Pinus Computer FINLANDToppila Jussi Ministry Of Labour FINLANDTulokas Heikki Statistics FinlandTuomola Pekka Elisa Communications Corporation FINLANDTuononen Jarmo Siemens FINLANDTurbé-Suetens Nicole Distance Expert FRANCETurunen Eija Rovaniemi Polytechnic FINLANDTörmänen Arla Elisa Communications Corporation FINLANDUlvinen Leena Puustelli Group FINLANDUskelin Leena Kaakkois-Satakunnan Kehityskeskus Oy FINLANDVahasalo Raija Parliament Of Finland FINLANDVaihia Kari Sonera FINLANDVainio Mika University Of Tampere FINLANDValdlo Taavi Estonian Informatics Centre ESTONIAValkeakari Susanne Talent Code Oy FINLANDValkonen Marjaana The Central Organisation OfFinnish Trade UnionsFINLANDVallve Maria Jesus Olgaria Sl SPAINValtanen Jaana Elisa Communications Corporation FINLANDVan Asbroeck Christian Martech International BELGIUMVan Emmerik Lilian Ministry Of Social Affairs NETHERLANDSVanhoutte Peter Belgian House Of Representatives BELGIUMVan Hove Carine Innotek BELGIUMVaris Tapio University Of Tampere FINLANDVarjokallio Liisa Elisa Communications Corporation FINLANDVartia Riitta Ministry Of Labour FINLANDVartiainen Matti Helsinki University Of Technology FINLANDVehviläinen Marja Technical University Of Luleå FINLANDVenturato Claudio Chamber Of Deputies ITALYVeyrat Jacqueline Ministére de l’Economie,des Finances et de l’IndustrieFRANCEVilhu Eero Regional Council <strong>of</strong> Kainuu FINLANDViljamaa Outi Ministry Of Labour FINLANDVinni Sirpa Lappeenranta University Of Technology FINLANDVinther David Danish Service And Commerciel DENMARKVirkkunen Tapio Ministry Of Transport And Communications FINLANDVirta Meri Palvelutyönantajat FINLANDVirtanen Maarit Sonera FINLANDViukari Leena Sonera Telecom Ltd. FINLANDVollset Hildegunn Ementor ASA NORWAYVäänänen Sani Transcom Finland Ltd. FINLANDWaldeck Katja University Of Madgeburg GERMANYWallin Markku Ministry Of Labour FINLANDWansing Ansgav <strong>European</strong> Patent Office NETHERLANDS

253Wasinger Walter Informations-Technologie Austria GmbH AUSTRIAWeems Velvet Case Wester Reserve University USAWelter Nadine Ministére du Travail et de l’Emploi LUXEMBOURGWennersten Vivianne Ericsson Radio Systems AB SWEDENWesselenyi AndreaHUNGARYWidén Bo Ericsson Radio Systems AB SWEDENWilska TuijaMinistry Of Finance / State Employer’s Office FINLANDWinter Jürs David Danish Service And Commerciel DENMARKYlä-Mononen Jaana Parliament Of Finland FINLANDYläoutinen Jyrki Hakanen & Yläoutinen Ltd FINLANDYli-Lahti Jussi Ministry Of Trade And Industry FINLANDYlikortes Sami Elisa Communications Corporation FINLANDYlöstalo Pekka Ministry Of Labour FINLANDYttri Birgitte Telenor R&D NORWAYZahlen Jean Ministry <strong>of</strong> Labour and Employment LUXEMBOURGZahn-Elliott Ursula Federal Ministry Of Education And Research GERMANYZazza Massimiliano Ministry Of Infrastructure And Transport ITALYZingarelli Delia S3 Acta ITALYÅkermarck Mikael Ministry Of Transport And Communications FINLANDParticipants per CountryAustria 4Belgium 25Bulgaria 2Czech Republic 1Denmark 18Estonia 3Finland 259France 5Germany 19Ghana 6Greece 1Hungary 2Ireland 5Italy 13Japan 3Kazakhstan 1Latvia 1Lithuania 1Luxembourg 2Macedonia 1Nepal 2Netherlands 5Norway 9Poland 2Portugal 1Romania 1Russia 2Slovak Republic 4Slovenia 4Spain 8Sweden 17Switzerland 1United Kingdom 19United States 1Total countries: 34Total participants 448

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