Digital library (interview) RAI Educational

Peter Johnston

Rome, Convegno Telework, 11/11/95

"Teleworking, The virtual office and European projects"

SUMMARY:

  • Telework covers a wide range of new working practices: part-time working from home to avoid a daily commute part of the week etc. This makes it difficult to quantify the number of people involved (1).
  • The EC did a survey last year the UK, Germany, France, Spain and Italy. By far the largest number of people involved in teleworking is in the UK, partly due to a greater flexibility of working and business practices in that environment associated with the greater linkage to the United States business environment. Spain and Italy have the least number of teleworkers (2).
  • The virtual office is a concept that has arisen mainly in small business activities. It is a very important way that smaller companies in the European Union can start to use the single European market to enlarge the market for their services without a large initial investment (3).
  • The EC supports a large number of activities at the European level, particularly in technology development where there is a need to establish common standards so that there is proper interoperation between the communication networks in Europe. It also supports investment stimulation actions and some have been particularly successful in the area of small business networking in telework development. A project last year tried to help small business in each of the European regions become users of the Internet and the World Wide Web as a marketing and a sales vehicle for their products (4).
  • It is very important for European business that companies are now able to market and to cooperate across the world-wide networks. We are seeing now a very rapid growth in "electronic commerce", where there are trading transactions, which are initiated and concluded across the Internet. We need new mechanisms at the European and the world-wide level for the security of payment transactions across the networks. The solutions that have emerged in the United States are not necessarily easily applicable in European where there are many different languages that much be accommodated by these transaction mechanisms (5).

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INTERVIEW:

Question 1
The term telework is a broad one with a lot of different meanings. How would you define telework?

Answer
We deliberately try to avoid too narrow a definition of telework. It covers, as you say, a very wide range of new working practices, whether these are part-time working from home to avoid a daily commute part of the week, or working in an office near where people live, again to avoid long-distance travelling. It may involve working at the premises of organisations that have customers of the organisation working away from a traditional office environment, but it's because we're still in a process of very rapid evolution and change in working practices that we don't want to pin down too narrow a definition of teleworking. This of course does give us more difficulties in trying to quantify the number of people involved in telework activities, but we have gone to some trouble at the European level to make sure that we have consistent estimates between the member states so that we can compare the pace of change in each of the member states of the European Union.

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Question 2
Can give us and estimate of the number of teleworkers?

Answer
We did a survey during the course of last year in the five major European Union countries, in the UK, Germany, France, Spain and Italy. And we see by far the largest number of people involved in teleworking is in the United Kingdom. It is partly due to a greater flexibility of working practices and business practices in that environment associated with the greater linkage to the United States business environment. We see the least number of teleworkers currently in Spain and Italy and we are concerned at the European level that there could be a comparability in the pace of change in all of the European countries. One of the reasons why we're particularly happy to accept an invitation from the city of Rome to hold this particular conference in Rome is the hope that this will perhaps give a further boost to the take up of some of the new working practices in the southern countries of the European Union. The total number involved across the European Union is on the whole probably over 1 million people involved in teleworking practices that are recognised by their employers and are part of the accepted working agreements with the organisations that employ people. There are of course a lot of people that quite incidentally and perhaps outside the normal working practice agreements work outside the office environment part of the time. We are concerned that this new working practice is formalised in some sense that there is an agreement between the employers and the employees that defines who is responsible, what the working practices can be made to represent.

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Question 3
Among the different terms which have been used to define or to describe some kind of telework there is that of the virtual office. How do you see it? How can one define the virtual office?

Answer
This is a concept that has arisen mainly in small business activities. If, for instance, you have a small company that is manufacturing or selling products in the Italian market and they wish to establish a sales office in London, for example, but don't wish to invest in physical office space in London, to take on permanent staff to carry out the sales functions in that office - at least until they've established whether there is a market for the product in the London environment - it is quite possible for that company to establish what we would call a virtual office in another country with a local telephone number. That number can be called by customers in the London area and the calls received and rediverted then to the office in Italy, if there is a customer that wants further information about products. So this is a virtual presence of that company in a different market without necessarily having the physical office space and the permanent staff that go with it. It's a very important way that smaller companies in the European Union can start to use the single European market to enlarge the market for their services without a large initial investment. But this is again another example of how working at a distance, representing your company' products and services at a distance, can now be enabled through the information networks in a very cost-effective way.

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Question 4
There are a lot of experimental projects which are promoted by the European Community, by the EC Commission in the field of new information technologies. Perhaps you can describe some of them, maybe one which you consider to be particularly interesting or stimulating.

Answer
We support a large number of activities at the European level, particularly in technology development where there is a need to establish common standards so that there is proper interoperation between the communication networks in Europe. But we also support investment stimulation actions and some of those have been particularly successful in the area of small business networking in telework development. We had a project last year that tried to establish a mechanism so that small business in each of the European regions could become users of the Internet and the World Wide Web as a marketing and a sales vehicle for their products. That has already resulted in a very considerable interest from small business communities around the European regions. We supported also a very careful assessment of business reengineering practice across the European Union. The reports from that project are available at the conference today and again showing that most of the major European companies are involved in a substantial structural change that as part of its result does enable much more flexible range of working practices to be introduced. It's difficult to go into all of the projects that we support at the European level; there are many hundreds of projects. Italian companies are very well represented in this area of European technology development and research and we have always seen not only the larger Italian companies involved but also large numbers of smaller companies active at the European level.

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Question 5
An increasing number of transactions are going to take lace on the Internet and other kind of networks and there are economic problems associated with this as well as technical problems. What does the EC Commission think of those problems? Is there some activity in this field?

Answer
It is very important for European business that companies are now able to market and to cooperate across the world-wide networks. We are seeing now a very rapid growth in what we would call electronic commerce, where there are trading transactions, but it's initiated and concluded across the Internet and the associated networks. There are still problems to be solved. Perhaps the technical solutions are there but some of the implementations of those technical solutions still have some way to go. We do need to ensure that in Europe there is a coherent system that both protects confidential information, that gives assurance to customers of companies that their transactions are in fact valid transactions, in both senses between the customer and the suppliers of goods and services. The discussions on some of these issues are in fact very difficult both politically and administratively. There are new mechanisms to be put in place at the European and the world-wide level for the security of payment transactions across the networks. We see in the United States that much progress has now been made in that particular contest to assure that these transactions can be confidential and validated, that the solutions that have emerged in the United States are not necessarily those that are easily applicable in the European market in which we have many different languages that much be accommodated by these transaction mechanisms. These can't all be carried out in English. Much of the small business community will want to conclude its transactions in the language that they're used to dealing with. The banking and payment systems do need to be coherent across the single European market, and there is still some progress to be made, but we're very confident that the solutions can be found and can be found very quickly.

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