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Coworking: in what way does it change the innovation process

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Shifa Habib

on 14 November 2014

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Transcript of Coworking: in what way does it change the innovation process

what is coworking ?
It is workplace model involving:
- a shared work environment
- a community of coworkers
coworking spaces
- Alternative workplace model
- Generalist and specific spaces
II. Coworking in action
New working spaces: coworking & innovation
Trendy Consulting Group - Sétha Eng, Julie Godard, Shifa Habib, Aya Sissoko
Sources
How do coworking spaces foster innovation and set up new managerial practices ?

I - What does coworking mean ?
II - How does it work ?
III - What are the business implications ?
IV - What is next for coworking ?
1) Coworkers: what does it mean to be a coworker?
2) Coworking and impacts on managerial practices
1) co-workers:
what does it mean to be a co-worker?
Co-worker profile
Age : 34
2/3 men
1/3 women
4/5: Uni Degree

www.mutinerie.org

Work field:
- The majority works in the creation of new media (web developers, programmers)
- 1/9 are graphic or web designers
- 10% are consultants
- Marketing Services
- Environment services
- Journalists, writers, architects or artists

www.mutinerie.org

1) coworkers: what does it
mean to be a coworker?
1) coworkers: what does it mean to be a coworker?
Social skills :
- Sharing values
- Open minded people
- Living in community

Being a co-worker means :
- Sharing the work space with the community
- Working on an sustainable innovative project
- Being open to the collaboration

I - What does coworking mean ?
Coworking spaces focus on community rather than profit
 --> we can not compare managerial practices
But, imagine a new way of management

- Who manages a coworking space ?
- How the management acts ?
- A typical manager in a coworking space

Is Coworking a good
alternative ... ?
1) concept of coworking and coworking spaces
2) How did this new trend appear ?
2) Coworking and impacts on managerial practices
A team composed of :
A board
- the entrepreneur who has created the space
Employees, when it is a big structure
- Coworkers can participate to decision making process

Who manages a coworking space ?
the structure development

the community interactions

the external communication

the finance and administration

--> The management does not impact directly coworkers

How the management acts ?
1) Managing the physical structure:
Maintenance of the building
The equipment
The facilities

2) Management of the work life : “Feel like at home”

Note : But, in the various structure, you can have :
-hierarchy, rules, formal structure

So, what is the management in this place ?
Post description : manager coworking place
How did this
trend Re-appear ?
Creation of "The Hat factory" in 2005 in San Francisco
Key notions :
Openness Community
Collaboration Sharing
They can provide desks, wifi, printers, phones, meeting rooms as well as kitchen spaces, common spaces in order to
make coworkers meet and enhance
the "community spirit"
Main goal
Create a built-in community
Connect people from different backgrounds that would not have met
Knowledge and experience sharing encouraging creativity and innovation
Speed up the innovation process

How did this trend appear ?
A bit of history...
XIXth century: artists' studios
community of artists
notion of sharing, learning, creating together
Hierarchy
Competition
Work politics
IV. What is Next for coworking ?

1) Is coworking a good alternative ?
2) What is the evolution of this trend ?
3) IS it an attractive model for companies ?

III. What are the business implications?

Strengths

Friendly innovative environment
Foster creativity and new ideas
Build a social and professional network
Avoid lonely and unproductive work at home
Improve the entrepreneurs' visibility
Higher flexibility and mobility
Collaboration thanks to competences sharing
New way to manage private and professional life
Low cost of renting a desk with many services
Less time spent in transport
1. business models
2. Revenue streams
3. cost structure
1. Business Models
...Or a bad Alternative ?
Threats

Hacking problems (matters of security and confidentiality)
Intellectual property called into question
Dispersion and lack of concentration
Noisy places where it can be hard to work
Professional hyperactivity if involvement in several projects at the same time
Impossible to apply it to particular sectors (legal and public ones)
Restricted to a specific profile (social entrepreneurs in La Ruche)

1. Coworking as a non-profit
2. Coworking as a for-profit
3. Coworking as a public partnership
Source : Moriset B. (2013), "Building new places of the creative economy. The rise of coworking spaces." Halshs Archives Ouvertes


What is the evolution of this trend ?
Source : Moriset B. (2013), "Building new places of the creative economy. The rise of coworking spaces." Halshs Archives Ouvertes
What is the evolution of this trend in the world ?
Source : www.neonomade.com
What is the evolution of this trend in Paris ?
According to Steve King (Emergent Research) :
3200 coworking spaces created around the world in 2014
Expectation for the next 5 years : 40% of growth

Mobilisation of New Information Technologies :
Social networks such as Google + or FB (yaourtphone of la Cantine Numérique Rennaise)
Software tools for coworking (Cobot, LiquidSpace, Nexudus Spaces)

Emergence of new "jobs" :
"Concierge" in the Cantines' network
"Animateur de communautés" (community animator)
Facts about the evolution
of coworking
Is it an attractive model for companies ?
Some reasons :
Response to the demands of flexibility, interactivity and mobility of the digital natives
Inspiration for companies aiming at fostering innovation, creativity and socialization
Adaptation to the sharing economy and the new technologies' revolution

Creation of coworking-modeled spaces :
"Moving Forward" of Accenture (incorporation of coworking spaces within their offices)
Desk-sharing practices in E&Y, Deloitte and IBM
Corpoworking in Google, Yahoo and ING (ING Café)


"It's just like home"
Flore, La Ruche
2. MAIN Revenue STREAMs
ING CAFÉ
Source : http://www.beckermorgan.com/project/ing-direct-chicago-cafe/
-
Coworking plans
: different packages
-
Events / renting rooms
: to outside groups who are looking for interesting locations
-
Sponsorphips
: from simple advertisements within co-working spaces to sponsors which seek to make contact with the coworkers to stay abreast of new ideas and development and to spread information about their services.
ex: Campus London (partially funded by Google)
& New Work City in NYC (partially funded by Pearson Publishers

Moriset B. (2013), "Building new places of the creative economy. The rise of coworking spaces." Halshs Archives Ouvertes
Lindsay G. (2013). Working beyond the cube. Fast Company, (173), 34-38.
Sykes, K. (2014). coworking: a workplace paradigm shift. Contract, 55(6), 140-145.
http://reseaudescantines.org/
https://www.cobot.me/spaces
http://pro.01net.com/editorial/624678/le-coworking-a-la-ruche-l-innovation-solidaire-a-plusieurs/
http://blog.honbu.io/6-software-tools-for-managing-a-co-working-space/
http://www.beckermorgan.com/project/ing-direct-chicago-cafe/
http://www.neo-nomade.com/
Article Etude Mobilis
http://www.musee-orsay.fr/fr/collections/oeuvres-commentees/peinture.html, accessed on November 5th 2014
Fost, D. (2008, February 20). They’re Working on Their Own, Just Side by Side. The New York Times. Retrieved from http://www.nytimes.com/2008/02/20/business/businessspecial2/20cowork.html
La Ruche | Un espace collectif de travail et de création pour entreprendre autrement à Paris. (n.d.). Retrieved from http://la-ruche.net/
Mutinerie, libres ensemble - espace de coworking à Paris. (n.d.). Retrieved November 5, 2014, from http://www.mutinerie.org/
Mobilitis (2011), « Les entreprises françaises et le coworking , [en ligne] www.opinion-way.com
Le Barzic M-V. et Distinguin S. (2010), « Cantine : un espace de rencontres physiques au coeur de l'économie virtuelle », Le journal de l'école de Paris du management, Volume 4 N°84, p. 31-37.
http://coworking-saint-etienne.fr/travailler/
Source: http://www.studios-singuliers.fr/le-projet/
“Every Friday, we meet in the kitchen so we can share information among the community and we circulate a report to the people who were not there. It’s one of the tools that support the community and the interaction among its members.”
"For innovation and creativity, it’s a really good opportunity to be here, everything is so casual, it frees people up. The best ideas are the ones arising from a big laughter or a crazy thought !"
Source: http://www.musee-orsay.fr/fr/collections/oeuvres-commentees/peinture.html
managers don’t manage people in the place but the place in general and the external impact on the environment

www.mutinerie.org

Coworking as a non-profit
GOAL: Welfare, success and happiness of the members

The community is the MOST important ASSET,
everything else (the space, the location and amenities) are meaningless if the community is absent.

Most attractive reason to choose this model?
ABILITY TO LET THE COMMUNITY EVOLVE NATURALLY, through word of mouth or community events rather than mass-marketing campaigns.
Example: Indy Hall, Philadelphia, USA

COWORKING AS A FOR-PROFIT
COWORKING AS A PUBLIC PARTNERSHIP
GOAL: provide a sustained neighborhood

Coworking spaces and their positive impacts on the labor and the real estate market provide a good option for public institutions which want to sustain neighborhood

Different forms of partnership:
- based on reduced or free rent in public buildings (NYU Incubator, General Assembly, Sunshine Suites in the US)
- based on a deal: members share their knowledge and skills with public institutions, in return they get a workspace ( Gangblank in Arizona, US)

Working alone... Together ?
Source: http://coworking-saint-etienne.fr/travailler/
“It seemed I could either have a job, which would give me structure and community or I could be freelance and have freedom and independence. Why couldn’t I have both?” Brad Neuberg, founder of the Hat Factory
http://www.nytimes.com/2008/02/20/business/businessspecial2/20cowork.html
General Assembly received a $200.000 grant from New York City's Economic Development Corporation
Rise of information and communication technologies


Rise of independent workers


Need of a social structure


Sharing economy's success: "usage" rather than "own"


Strong need for innovation and ways to foster it
But also...
GOAL: make profit

Can a workingspace be created with the sole purpose of making profit?
Wouldn't this profit-oriented view drive the focus away from the coworking values of collaboration, community, openness and accessibility?

This model is questioned: "coworking spaces that fully embrace the value of community are not owned by anyone. They may be funded by individuals and other sources but they are owned by the community". The founder of C4 Workplace in San Antonio, Texas


Indy Hall in Philadelphia aims at sustaining the community of the current members as well as those who will come later
3. cOST STRUCTURE
Rental
Utilities

Personnel
Marketing
Maintenance
Legal
Campus London
partially funded by Google

Source: blog.localli.com
Coworking: a worldwide phenomenon
Source: cooltownstudio.com
Source: philymag.com
Thank you !
Full transcript