Author: Frederick Pilot

Facebook is considering opening a San Francisco office – Business Insider

Posted onLeave a comment

Facebook is thinking about opening up an office in San Francisco, which would be a huge boon for employees who have been dreaming of an easier commute, the San Francisco Business Times reports, based on conversations with three real-estate sources.Most of the biggest tech companies in Silicon Valley, including Google, Apple, and Yahoo, have a smaller office in San Francisco, but Facebook has always decided to keep its Bay Area employees together at its huge Menlo Park headquarters.This decision has brought grief for city-based employees because the commute can take up to two hours with traffic, which can feel like “a soul-crushing waste of time” despite the Wi-Fi-enabled free shuttles.

Source: Facebook is considering opening a San Francisco office – Business Insider

As I’ve written, the San Francisco Bay Area suffers from enormous tension, caught between advances in information and communications technology — much of it innovated there — and its habit of clinging to the outdated, 20th century Industrial Age model of daily commuting to a centralized, commuter office. The tension is particularly acute in the Bay Area given it has some of America’s worst traffic congestion, generating a huge time suck on the personal lives of those who commute there.

Per this development, it appears the tension is beginning to ease as a large Silicon Valley tech company is reportedly looking to establish a satellite office in San Francisco in order to bring work closer to its staff rather than busing them daily like high school students. Facebook doesn’t even need to spend much on costly San Francisco office space since most of its staff can work from home offices and collaborate with colleagues and customers virtually. With the occasional in-person meeting at the old centralized commuter office to reinforce team bonds. Ideas can be shared 24/7 from anywhere. And in person collaboration isn’t necessary unless Vulcan-style mind melds are needed to better protect proprietary company information.

Spectre_of_the_Gun_245

New economic strategy for Maine: Lure workers, business will follow — Business — Bangor Daily News — BDN Maine

Posted onLeave a comment

PORTLAND, Maine — A new nonprofit has an idea for getting more companies, large and small, to locate in Maine: Don’t try for the whole company.On Monday, the group Work in Place will officially launch in Portland, during the third annual Maine Startup and Create Week, with plans to host a national conference in Maine’s largest city next spring to bring location-independent workers together.As they learn more about people who have a boss but not necessarily a fixed office, they want to provide a professional network and support, too.“We’re not evangelizing remote work, and we don’t need to at this point in time — it’s already happening,” said Misty McLaughlin, who co-founded the group with her husband, Michael Erard.The group aims to host events centered on that growing segment of the workforce, in part to help policymakers and economic development officials consider new approaches in a far-flung place such as Maine, which Erard wrote should be “low-hanging fruit.”

Source: New economic strategy for Maine: Lure workers, business will follow — Business — Bangor Daily News — BDN Maine

More evidence the decentralization of knowledge work and its dispersal across the United States is starting to gain momentum.

It’s no wonder knowledge workers are seeking alternatives to costly, congested metro areas. There’s really no need to work in them now that information and communications technology has matured to the point that knowledge work can be performed independent of location.

To facilitate this megashift in where people work and live, there is an essential infrastructure component that’s needed, especially in poorly connected states like Maine: Universal, affordable fiber to the premise (FTTP) telecommunications infrastructure.

Technology will change where we live | TechCrunch

Posted onLeave a comment

Finally, we have virtual reality coming in to totally upend things, perhaps rendering the commute obsolete altogether. There’s a reason Facebook bought Oculus for $2 billion. Facebook sees the future of social interaction as happening through VR. Microsoft has already shown demos of people in completely different places physically, interacting seamlessly almost hologram-like in a way that’s both creepy and awesome (they appropriately call it Holoportation).Perhaps there are some lingering expectations of people being in the office part-time to build camaraderie (drinking virtual beer together isn’t as fun after all), but the five-day-a-week commute will be undesirable to employees — and to employers who want a recruiting advantage and prefer more workable hours for their employees and can offer it by eliminating their commute.

* * *

Instead of having a few densely populated pockets like we do today, people are going to disperse because technology will make it easier to do so and it’ll be much cheaper to live. Real estate prices will shift — not just in San Francisco, but in every major city. And places that hold universal appeal (e.g. beachfront/close to mountains) will draw more people as a result.

Source: Technology will change where we live | TechCrunch

Dan Laufer reiterates the thesis of my recent eBook Last Rush Hour: The Decentralization of Knowledge Work in the Twenty First Century. The maturation and continued evolution of Information and Communications Technologies (ICT) such as VR conferencing will render the daily Monday through Friday commute obsolete by removing the last perceived barrier to avoiding working daily in a centralized office setting: the need to meet face to face.

As I write in Last Rush Hour, ICT will prove as a profound and disruptive force of change for residential settlement patterns as the automobile was at the height of the Industrial Age by dispersing people out of inner cities to the suburbs.

German push for universal Internet service recognizes decentralization of economy

Posted onLeave a comment

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

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

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

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

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

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

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

Cities’ sprawl comes with a price in transit costs, commute time

Posted onLeave a comment

The annual study on the cost of traffic congestion gets its share of publicity. A new one on the cost of sprawl deserves just as much attention. The authors say that while the congestion studies suggest the solution is to build more highways, they wanted to look at the price of land-use patterns that force people to travel farther to get from home to work, shopping and other destinations.

So City Observatory, an online urban policy think tank, put together what it calls a “sprawl tax,” which includes transportation costs, plus the excess hours spent commuting. The first analysis estimates that commuters in the nation’s 50 largest metro areas pay a sprawl tax of more than $107 billion a year, nearly $1,400 for the average worker. That total rivals the $124 billion estimate for the cost of congestion – time and money lost stuck in traffic.

Source: Cities’ sprawl comes with a price in transit costs, commute time

This opinion piece goes on to suggest the shopworn Industrial Age remedies of locating housing closer to jobs in central metro areas and beefing up public transit. But both are unrealistic, retrograde solutions.

Housing market economics typically attach a price premium to downtown housing that makes it unaffordable for many. Second, employment is changing and is far less permanent than it used to be. People stay in a home longer than with a given employer. Third, public transit use is dropping, not surprisingly so since it tends to lengthen rather than shorten the duration of commute trips.

In the 21st century, information and communications technology (ICT) makes it quite possible for knowledge workers to live and work outside of metro centers, improving their quality of life and eliminating the urban sprawl issue.

As dollars dwindle for roads, gridlock seems assured | SanDiegoUnionTribune.com

Posted on

You won’t hear this from so-called greens who vote to block road construction, but traffic is arguably the top environmental problem in San Diego County, which lacks a big industrial footprint.Cars spew vastly more air pollution when they are prevented from reaching the speeds posted on freeways and parkways. In addition, stop-and-go traffic sends tons of heavy metals from brake dust into watersheds.Then there’s the economic damage. The average commuter in San Diego County lost 42 hours a year sitting in traffic in 2014, reckons the Texas Transportation Institute.Put another way, we each lose an entire work week every year. Such delay cost the region an estimated $1.7 billion, a low-ball figure that includes only wasted fuel and lost time (calculated at the median hourly wage).Harder to measure is missing a kid’s first goal; all those spikes in blood pressure; the spiritual toll from hating a stranger just because he applied his brakes.

Source: As dollars dwindle for roads, gridlock seems assured | SanDiegoUnionTribune.com

Planners and public policymakers continue to respond to traffic congestion with the same ineffective solution: building more transportation infrastructure. Instead, we should be building better telecommunications infrastructure and transitioning to distributed knowledge work so people don’t have to commute daily to offices to do their jobs. The environmental, organizational and social benefits strongly make the case.

California suburbs growing fast as many are priced out of cities, data show – LA Times

Posted onLeave a comment

Suburban areas on the outskirts of the red-hot Los Angeles and San Francisco areas grew especially fast last year, state officials reported Monday.San Joaquin County, home to Stockton, grew faster than any other, up 1.3% to 733,000 people. The area has become increasingly popular for people fleeing astronomical San Francisco Bay Area housing prices while remaining within commuting distance. San Joaquin was followed by Yolo, Riverside and Santa Clara counties.

Source: California suburbs growing fast as many are priced out of cities, data show – LA Times

Are these locales really within reasonable commuting distance and when those long commutes are factored in, is the arrangement truly affordable? There’s a huge cost on the personal lives and well being of these super commuters. As I reported in my eBook Last Rush Hour: The Decentralization of Knowledge Work in the Twenty-First Century, the trade-off doesn’t pencil out:

These long commutes also do not make good economic sense. The economic calculus for commuters is the time spent commuting is acceptable if that time is compensated either in the form of higher pay and benefits or more affordable housing. But the economics of that trade-off don’t necessarily balance out, according to an academic paper authored by two economists. “[I]n a direct test of this strong notion of equilibrium . . . we find that people with longer commuting time report systematically lower subjective well-being,” the study authors conclude.

Citation: Alois Stutzer and Bruno S. Frey, “Stress that Doesn’t Pay: The Commuting Paradox,” Scandinavian Journal of Economics 110, no. 2 (2008): 339, doi:10.1111/j.1467-9442.2008.00542.x

The self driving vehicle as rolling conference room

Posted onLeave a comment

4. The Car as Conference Room

Once cars become fully autonomous, they won’t need to take the form they have for more than a century. One concept design is the Mercedes-Benz F 015, which transforms the vehicle into a “digital living space.” Inside, seats swivel to face one another, and a series of displays permit passengers to entertain themselves or work. In other words, cars could double as conference rooms—and employers may begin to demand that people use their commutes productively.

Source: Driverless Cars, Flying Cars, and the Future of Transportation – The Atlantic

Commutes with have been getting so long and congested in major metro areas that the idea of vehicles doubling as as rolling conference rooms was bound to come up. And they may not be far off, according to this item appearing in the current issue of The Altantic.

This is a classic — and ridiculous — example of overlaying advances in digital technology onto a pre-digital, Industrial Age economy where commuting to a centralized office was necessary because that’s where the tools were for knowledge work. Apparently someone hasn’t been read into the future. Information and communications technology is obsoleting the commute itself. But if you love meetings and commuting, this may be for you.

S.F. Bay Area continues to struggle in transition from industrial to information economy amid choking traffic

Posted onLeave a comment

“Beat L.A.” is a familiar refrain in Bay Area sports, but it now appears Northern California is on its way to being a rival for Southern California in an unwelcome fashion: traffic jams.Residents in the Bay Area have become discouraged about the heavy traffic in the region, with a dramatically expanding number of them indicating that traffic is worse than a year ago amid a huge surge in the local economy, a new poll released Friday by the Bay Area Council suggests.”Bay Area residents are frustrated about traffic,” said Ruth Bernstein, senior principal with EMC Research, a firm that conducts market and opinion research. “It’s harder for them to get around. We definitely are seeing a backlash against the economic boom.”

Source: Bay Area traffic ignites backlash against boom, new poll suggests – San Jose Mercury News

The crisis of too many cars deepens in the San Francisco Bay Area as does the paradox of one of the world’s leading information tech centers ushering in an information age economy still mired in Industrial Age rush hour commute traffic. Traffic that’s completely unnecessary given the information and communications technology Silicon Valley companies innovated that allows knowledge work to be done where people live. It’s a head scratching situation that makes one think the region is trapped in a time warp with the calendar reading 1966 instead of 2016.

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

Posted onLeave a comment

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

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

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

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