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How the Information Revolution Is Shaping Our Communities FEATURE How the Information Revolution Is Shaping Our Communities by Pamela Blais In the last two decades edge explosion of some industries (such as com- teller machines are replacing human bank cities have emerged, city centers puters, communications, software, and tellers. struggled, and many mid-size financial services) by enabling new prod- The degree to which a particular activi- ucts, services, and efficiencies, while other ty is routine or standardized (and therefore metro areas boomed. Recently, work has industries have stalled or contracted. subject to automation and/or relocation begun moving back to the home (revers- to lower-cost locations) is a key clue to ing a 200 year trend), while an increasing the potential impacts of the information number of office buildings are being con- IN THE INFORMATION revolution. verted to residential use. SOCIETY, A SMALLER IT has presented an unprecedented These are just some of the shifting pat- range of organizational options for compa- terns linked to the information revolution PROPORTION OF JOBS nies and institutions by enhancing commu- — a term that refers not only to computer WILL BE ACCOMMODATED nications linkages through computer and telecommunications technology, but to IN TRADITIONAL networks, phone, fax, modem, video con- the role of information itself, and the WORKSPACES SUCH AS ferencing, or e-mail. This allows different accompanying transformations in the pub- DOWNTOWN OFFICES types of functions within a company to be lic, corporate, and personal worlds that the OR SUBURBAN BUSINESS optimally located in different settings: information and the technology are bring- towns, cities, regions, or countries, depend- ing about. PARKS. ing upon the requirements of the activity. The information revolution has far- The classic example of this is the reloca- reaching impacts that we are only begin- tion of back office functions out of high- ning to understand, affecting local However, to get a more accurate pic- cost urban centers to suburban locations or, economies, central cities, suburbs and ture, we need to also look at what is going more recently, to smaller towns or off-shore towns, travel patterns, and floorspace on within a given industry as a result of the locations. In larger companies, routine requirements. Much of the emphasis so far information revolution. Even in growth administrative functions may be centralized in the planning field has been on the reloca- industries, some functions are declining; in one location, manufacturing moved off- tion of work from office to home. But this is while in declining industries, some func- shore, R&D performed in campus-like sub- just one small part of a complex, multi-lay- tions are growing. For example, design urbs, and sales offices provided in each ered transformation. functions in a traditional industry like market area. The information revolution is having a clothing may still be performed domestical- A similar distribution of activities can profound impact on the kind of economic ly, while the manufacturing takes place off- also occur between autonomous companies activity taking place in North America, how shore (i.e., outside North America). linked together by outsourcing (i.e., the it is organized, where it is located, and the Generally speaking, the economic well- practice of acquiring goods and services kinds of jobs it generates. It is also redefin- being of the advanced industrial nations from outside, specialist firms, rather than ing how that economic activity translates relies on a continual evolution toward providing them internally) and strategic into the demand for development, floor- value-added, high-productivity, innovation- alliances—trends enabled by reliable space, and buildings. and knowledge-rich activities. These are the telecommunications linkages between com- RESTRUCTURING INDUSTRIES, kinds of activities that will also expand in panies and their supplier networks. REORGANIZING COMPANIES the information economy: design, research Ownership structures also play a role The dynamics and impacts of the infor- and development, high-level management here. Smaller, independently-owned, sin- mation revolution vary from industry to — activities with high creative or intellectu- gle-establishment firms are more likely to industry. The globalization of the economy al content. On the other hand, IT leads to be tied to a given community. As national and competition — enabled in large part by the automation of routine activities in both and international companies take over vari- information technology (“IT”) — have manufacturing and the service sector, such ous industries, we can expect to see a geo- brought about large-scale changes in the as forms processing or data entry. For graphic redistribution of functions over a industrial makeup of all of the advanced example, electronic scanners are superior at wider area — regionally, nationally, or even industrial nations. We have witnessed the many data entry functions, while automatic on a global scale. PLANNING COMMISSIONERS JOURNAL / NUMBER 24 / FALL 1996 16 INFORMATION TECHNOLOGY suburban business parks. ing (8 million), self-employment (26 mil- AND JOBS A new range of IT-based strategies and lion), or “corporate after-hours” work (12 As IT is transforming the economic options is becoming available to employers million). landscape, the type of jobs available is cor- to lower costs, increase productivity, and All of these trends shift the demand for respondingly changing. Some have suggest- serve customers better. Companies such as work space away from the traditional ed that we are moving toward a jobless Ernst & Young and IBM have reevaluated employment environments, reducing the economy. While this is likely a long way off, their office space plans and introduced demand for conventional, centralized it is clear that IT is causing a major shift in smaller, more efficient workspaces, particu- workspaces, while increasing the need for the job market. In recent decades, the rela- larly in high cost locations. This sometimes flexibility in residential neighborhoods to tive growth of managerial and professional involves “hotelling,” in which workspaces accommodate home or neighborhood — occupations — which in the U.S. grew are shared by employees who must book based work. them in advance, like a hotel. Some jobs in from 22 percent of total employment in SUMMING UP: 1972 to 30 percent in 1994 — and the rel- some industries can be best done out of a The information revolution is probably ative decline of clerical occupations has sig- mobile office (also known as a car), through the most important force shaping commu- naled an occupational restructuring. the use of cellular communications and nities today. While some of the key forces Many analysts have noted that informa- portable computing. behind the information revolution are tion technology is resulting in a more polar- A growing number of companies and universal, the impacts on any given com- ized occupational structure, consisting of agencies are setting up remote satellite munity will be unique, depending on its highly skilled, well-paying jobs at one end offices or neighborhood telecenters, provid- individual makeup, economic structure, and lower skilled, low-wage “McJobs” at the ing computing and telecommunications attributes, and responses. other — and fewer jobs in between. The connections from a location close to where Planners need to begin identifying the implications for residential areas and hous- workers live. Telecenters enable employees issues and impacts relevant to their com- ing preferences are particularly important. to reduce their commute-to-work distance, munities. What kinds of industries, sectors, For example, what will become of the con- while avoiding the isolation of home-based establishments, and jobs exist in the com- ventional, low-density residential suburb, a work. Some telecenters are set up to serve a munity now — and how are these likely to creation of the burgeoning post-World number of different companies. be affected by information technology? Are War II middle class? Another important change enabled by specific neighborhoods or areas at risk? The occupational profiles of individual information technology is “just-in-time How will projected office, manufacturing, communities are being transformed as well. delivery,” an inventory management tech- and retail space requirements be affected by Those with high concentrations of routine nique. Just-in-time delivery requires reli- changing workspace needs and just-in-time functions may by vulnerable to job losses, able, on-time delivery of inputs on an delivery? What strategies should be applied while those with creative or non-standard- as-needed basis. With reduced inventory, to residential areas to address the growth in izable activities are more likely subject to companies can reduce their storage space home offices? Perhaps most importantly, growth. Moreover, as multi-locational orga- requirements. Just-in-time is spreading what attributes exist in the community that nizations expand and seek out the best from manufacturing to distribution to can be turned into opportunities and com- locations for individual functions, commu- retail, even to hospitals and other institu- petitive advantage? N nities may become less occupationally and tions, suggesting a reduced need for bricks socially diverse, attracting a narrower band and mortar in carrying out these activities. Pamela Blais is principal of Metropole Consul- of occupations. Last,
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