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The untapped network
1. The Untapped Network
How Companies Can Leverage Technology
to Enable the Life Needs of T heir Employees
By John Nelson
June 2000
2. The Untapped Network
Company
Abilizer Solutions, Inc. provides a platform for transforming the
workplace by strengthening the relationship between employee
and employer, and enabling employees to effectively navigate
their intentions at work and at home. Abilizer has more than 70
customers—with over two million employees—providing the Abilizer
Employee Portal to their employee desktops. These companies include
market leaders such as ACS, Ace Hardware, Applied Materials, AT&T
Wireless, Chevron, EDS, Ericsson, Fluor, HOK, Oracle, PeopleSoft,
RE/MAX, Robertson Stephens, Sun Microsystems and Visa. Abilizer
is privately held and funded by leading corporations and private equity
firms including Technology Crossover Ventures, Thomas Weisel Capital
Partners, the Blackstone Group, Cendant, Information Technology
Ventures, US Venture Partners, Comdisco Ventures, the European
Web Group, E*Trade and Dorset Capital.
Author
Mr. Nelson oversees the research and analysis division of Abilizer
Solutions, Inc. His group is focused on understanding the life needs
of today’s workforce and how employers can best address those
demands. Prior to his role with Abilizer, Mr. Nelson directed Andersen
Consulting’s global Strategic Research Group around e-commerce
and financial services. He can be reached at 415-216-0100 or at
jnelson@abilizer.com
Acknowledgements
Abilizer would like to thank the following individuals and
organizations who have contributed immeasurably to this study:
Pete Petersen, Larry Butler and Pam Farr of the Cabot Group for
their guidance, quotations and content; Constat Market Research
for conducting our nationwide focus groups; Jennifer Hale for
providing research and analysis; Sudha Putnam for writing and
editing; Jan Martí for production; and Camilla Layton for design.
Overview 2
3. The Untapped Network
Contents
Executive Summary 4
Technology in the Workplace 5
Personal Use 6
Universal Access
Controlled Usage 8
Employee Needs 10
Content
Community
Commerce
Conclusion 14
Endnotes 15
3 Table of Contents
4. The Untapped Network
In 1980, employees accounted Executive Summary
for only 30 percent of corporate Nearly every communication a CEO delivers to the press, shareholders
tangible assets; in 2000, or investment community includes the phrase, “Our people are this
they will account for nearly company’s most valuable asset.” This statement is true in today’s
70 percent. economy more than anytime in recent history. According to the
Bureau of Labor Statistics, in 1980, employees accounted for only
30 percent of corporate tangible assets; in 2000, they will account
for nearly 70 percent.1 The dramatic shift to a “knowledge-based”
economy places the focus squarely on attracting, acquiring and
retaining a best in class workforce.
The new workforce driving the “knowledge-based” economy is
connected and empowered through Internet-based technology.
The number of desktops with access to the Internet is increasing,
The 30-40 million people with
and the 30-40 million people with work access will soon produce
Internet access at work will soon the same amount of traffic on the Internet as the nearly three-fold
produce the same amount of number of home users. While employees are using the Internet for
traffic on the Internet as the work-related activities such as gathering research on competitors
and communicating with vendors, they are also using the Internet
nearly three-fold number of
for personal needs. Employees are accessing current news, trading
home users. stocks, researching schools and price shopping at work via the
Internet. In 2002, nearly 50 percent of Internet purchases will be
made from the office.
Despite concerns of abuse, progressive managers recognize the
demands placed on their employees and are accepting a reasonable
amount of personal Internet use while at work. Visionary companies
are taking it one step further and lending assistance to their
employees’ life needs by providing products, services and programs
In 2002, up to 50 percent of designed to help their employees better manage work and life
products and services bought demands.
on the Internet will be The technology is in place, and management is recognizing the
purchased at the office. personal needs of employees. Delivering programs that produce
targeted content, foster corporate community and provide products
and services around the life needs of employees helps protect
a company’s most valuable asset: its people.
Executive Summary 4
5. The Untapped Network
Technology in the Workplace
For the last ten years, companies have focused the majority of IT
investments on building networks to help employees communicate
and share knowledge more efficiently within the organization.
Now, with the business world’s widespread adoption of web-based
technology, companies have begun to extend their corporate intranets
to provide employee access to the Internet. Forrester Research
estimates that the number of employees who have Internet access
at work grew more than 55 percent in 1999.2 Translated into dollars,
by the year 2003, companies will spend nearly 50 percent of their
infrastructure budgets on providing Internet access to employees.3
(See Figure 1)
Corporate Internet Expenditures
600
500
400
$ BILLIONS
300
200
100
0
1999 2000 2001 2002 2003
TOTAL IT SPENDING (Less Services)
CORPORATE INTERNET SPENDING
Figure 1
Source: IDC, Abilizer Research
As companies become more connected, employees are rapidly taking
advantage of the power the Internet brings to their desktops. In terms
of total number of hours spent online, the 30 million users accessing
the Internet from the workplace produce nearly the same amount
of traffic as the 77 million active users at home.4 This has major
implications now and for the future, as the workplace increasingly
becomes the location of choice for accessing the Internet.
Clearly the motivation for connecting employees through intranets
and the Internet is to make companies more productive by improving
communication and the flow of information. However, employees
have rapidly adopted these tools for their own uses as well.
5 Technology in the Workplace
6. The Untapped Network
“ The Web serves as a continuous Personal Use
medium that crosses between Despite soft corporate policies restricting computer and Internet
the workplace and the home. use to work-related business, personal use of company technology
People are taking advantage is prevalent. In one survey, 90 percent of respondents indicate that
of the Web’s productivity around they access non-work-related sites at least once a day. Fortunately,
the same survey reveals that 82 percent of bosses tolerate a
the clock and are becoming
“reasonable” amount of personal use.5
much more efficient at handling
everyday tasks, whether they
are at the office or at home.” EMPLOYEE VOICE
Allen Weiner When asked about employee access, a strong majority of
—Vice President, Nielsen//NetRatings respondents confirmed that they are shifting away from using the
Internet at home to using it at work. Nearly all respondents admit
using the Internet at the office for non-work-related activities. The
consensus of the group is that personal tasks need to be performed
at work, and that companies understand this. In addition, if the
company can provide assistance with these tasks, all parties will
benefit. The following factors are driving the preference for work
access:
• Faster connections, which reduce time for browsing and shopping
• Longer work days
• Employer-provided online resources and solutions for personal needs
The employee groups surveyed agree that Internet access is not only
an essential business tool, but also a sign of a progressive company.
Besides becoming more productive personally and professionally,
those who are granted access to the Internet feel recognized as
being valuable employees, feel a greater sense of community within
the organization and develop an increased sense of loyalty.
Results from employee focus groups conducted nationwide by Constat Market Research
Reasonable personal Internet use by employees can have far-reaching
benefits for both the company and its employees. The ability for
employees to better manage and facilitate daily life needs allows
them to spend more time focused on their work, and decreases
time away running errands.
Personal Use 6
7. The Untapped Network
Universal Access “ In the future, providing company-
A significant development in the drive to connect employees to wide access to the Internet and
the Internet is Universal Access (UA). With UA, companies provide company intranet will be critical
all employees with a home computer, Internet connectivity and a
for both technology and non-
company-based employee portal, either for free or at a subsidized
price. technology companies. It is
understood that a small
Compelling benefits of Universal Access include:
• Increasing the number of hours that employees can work, percentage of time on these
helping the company increase productivity resources will be for personal
• Providing tools to help employees accomplish personal tasks use; a fair trade off considering
online, bolstering the company’s image as a supportive employer
the increasing demands placed
• Differentiating a company from its competitors, creating an
“employer of choice” mentality—internally and externally on the employee in today’s
• Developing employee computer proficiency, improving the marketplace.”
overall skill-base of the organization Larry Butler
• Providing a centralized office bulletin board that is accessible —V.P Human Resources (retired)
.
anytime, anywhere, helping a company communicate with Peoplesoft
a dispersed workforce
Several large companies, including American Airlines and Intel,
have rolled out UA initiatives to their workforce. Intel’s program
includes personal computers, Internet access and Internet services
at no charge, to all employees worldwide. “We’re delighted to offer
employees and their families the ability to take advantage of the
education and e-commerce opportunities on the Internet,” says
Patty Murray, Intel vice president and director of human resources.
“The Intel Home PC Program is the right new benefit
for the year 2000.”
7 Personal Use
8. The Untapped Network
“ A key to competitiveness is Controlled Usage
to create an environment that Along with the benefits of wiring desktops comes concern around
attracts, retains and excites top the abuse of company technology and Internet content. According
talent. Attractive compensation to the American Management Association, more than 80 percent of
and benefit packages, meaningful large companies will have implemented some type of controlled usage
by the year 2001, primarily to restrict access to adult content sites.6
work and development
opportunities are important Additional workplace controls may include:
• Restricting news and entertainment URLs
factors. Increasingly, employees
• Blocking software downloads
are also asking for a flexible • Impeding the acceptance of cookies (information that a website
environment that helps them records on a user’s hard disk for future use)
integrate work and personal life • Blocking online purchases
priorities. This requires not only
effective tools, techniques and EMPLOYEE VOICE
programs, but also a willingness
Employee research respondents agree that companies must protect
on the part of management to themselves from allowing pornographic and other inappropriate
accommodate individual needs. websites to be viewed on their systems. However, blanket policies
In the past, mangers emphasized that restrict access to commerce and content websites can have a
consistency in employee matters. negative impact. These policies not only weaken the morale of the
workforce by implying a sense of distrust and preventing employees
Flexibility is replacing consistency
from accomplishing vital personal tasks, but at times can interfere
at “employers of choice”. with work responsibilities.
Pete Peterson
—Sr. VP Human Resources (retired)
• “They block the CGI scripting so that if you’re trying to fill out a
Hewlett-Packard form—for example to apply to The Wall Street Journal—it won’t
allow you to fill it out completely, even though the site itself has
been approved by the company.”
• “I can’t tell you how frustrating it is when I’m working late: It’s
eight o’clock, the stores are closed, and I can’t get online to buy
a birthday gift.”
• “They trust us with making decisions about their business, but
not with accessing the Internet. It doesn’t make sense.”
Results from employee focus groups conducted nationwide by Constat Market Research
Controlled Usage 8
9. The Untapped Network
In spite of the potential for abuse, many managers believe that the
Internet does not necessarily encourage additional abuse; it simply
replaces other unproductive activities. “The people abusing the
Internet are generally the same employees that had productivity
issues before they were granted access. Our top people are not
surfing all day.”7
Progressive business managers concede that allowing employees
reasonable freedom for personal Internet activities can benefit both
the company and its employees. Workers can manage their personal
and business needs more efficiently, allowing them to focus more on
their work and decreasing the time for non-work-related activities.
Longer-term benefits include increased productivity, morale and
loyalty. Leaders in the HR community seem to agree:
“We recognize that a certain amount of personal tasks will get
taken care of at work. It’s expected that people will use email
and the Internet for business purposes, but we realize that
people have lives.”8
“When potential employees interview companies for employment,
they evaluate all of the benefits, which may include schedule
flexibility, on-site dry cleaning or on-the-job shopping…each
trip an employee makes to the store is more time taken away
from the employer.”9
“Companies probably lose more money trying to control their
employees with an iron fist than they do in lost productivity
by giving them free access.”10
9 Controlled Usage
10. The Untapped Network
“ Growing traffic on corporate Employee Needs
intranets will draw the As employees become more sophisticated about the resources
attention of e-commerce players. available to them via the Internet, and as companies realize the
Companies and vendors will value of using technology to enhance work-life navigation for their
work together to develop employees, the demand for company-sponsored programs will grow.
When employees were asked what their companies could bring
corporate buying programs
to their desktops to better assist with their work-life navigation,
to gain access to this captive responses centered around content, community and commerce.11
audience. Just as companies
offer employees on-site childcare Content
or dry-cleaning drop-off, they The amount of information available on the Internet and company
will see intranet e-commerce intranet is overwhelming; the challenge lies in providing targeted,
relevant content to each employee. Assistance with developing and
as a lifestyle-enhancing perk.
locating content that is pertinent to the workforce is being provided
Intranet marketplaces will by many leading companies. By understanding employee needs,
blossom as retailers gain a companies can negotiate directly with vendors and content providers,
new audience, companies give or partner with third party providers, to deliver a broad spectrum
employees a new benefit and
of value-added offerings to the employee desktop.
workers save money through
corporate discounts.” EMPLOYEE VOICE
—Forrester Research, The New
Employee research participants provide positive feedback around
Business Portals, February 1999
the idea of their company delivering content to their desktop that
addresses work-life needs.
• “Our company could take a poll to see what the majority of the
company is interested in as far as being able to take care of their
personal needs, and then create or modify our existing intranet.”
• “If they offered information online around having someone that
I could trust to watch my children, that would cut down on my
stress and allow me to focus on my work, my productivity.”
• “Trust is the interesting point; having someone that you can trust.
We find a lot of these sites on our own, but I think an added value
would be that the company has done some background research on
how good the service is, the reputation of the doctors or the quality
of the dry cleaning. Then you have a little bit of confidence using
the service because the company has done some research into its
background.”
Results from employee focus groups conducted nationwide by Constat Market Research
The pre-selection of content partners can reduce, or even eliminate,
the time employees spend searching and price shopping. Providing
these services can be viewed as a company benefit, demonstrating
that management understands that employees have lives outside
the office, and are willing to lend assistance.
Employee Needs 10
11. The Untapped Network
Community
Several recent trends—including the push towards globalization and
the continued growth of mergers and acquisitions—have resulted in
unprecedented size and profitability for corporations. However, one
of the many repercussions of these trends is the loss of corporate
community in the workforce. Company intranets have made great
strides in facilitating the exchange of business information, corporate
communications and knowledge capital with disconnected employees,
but in most cases it has ignored the benefits of linking employees
based on personal interests and life needs.
EMPLOYEE VOICE
Employee research group participants indicate that building and
maintaining corporate communities covering work-life issues is
critical, but often ignored by HR departments. Simple intranet or
Internet tools such as employee classifieds, group calendaring and
topic-related bulletin boards foster a closely-knit community among
employees, as well as enhance and extend the employer-employee
relationship.
• “When I was forced to relocate across the country a year ago, I really
could have used some form of local information, or a way to contact
others in the office to find out what neighborhood to live in, the
best place to find an apartment....things like that, where you really
need word-of-mouth”
• “Bulletin boards just don’t cut it anymore”
• “Everything is focused around the corporate headquarters. If you’re
out here in a satellite office you do not feel very connected with the
company, and cannot take advantage of all the perks that those at
the home office are accustomed to.”
Results from employee focus groups conducted nationwide by Constat Market Research
11 Employee Needs
12. The Untapped Network
Commerce
Employees are accessing the Internet at the office not only to retrieve
news and conduct research, but also to engage in online commerce.
There is a growing preference for purchasing goods and services over
the Internet at the workplace. (See Figure 2)
Online Shopping—Home vs. Work
$90.0
$80.0
$70.0
$60.0
$ BILLIONS
$50.0
$40.0
$30.0
$20.0
$10.0
$0.0
1995 1996 1997 1998 1999 2000 2001 2002 2003
WORK BASED
HOME BASED
Figure 2
Source: Jupiter, Media Metrix, Abilizer Research
A number of explanations can be attributed to the growth of online
commerce at the office. These include longer work hours, faster
connections and the growing acceptance by management of attending
to personal issues at work. However, the bottom line indicates that
online commerce at the office will continue to grow as more workers
choose to access the Internet at work in place of at home.
Employees are not just buying flowers and checking stocks online
at the office; they are also performing time-intensive tasks such
as researching schools for their children, planning travel and price
shopping for major purchases such as home mortgages and
electronics. According to Jupiter Communications’ “Home Versus Work
Usage” study, approximately 70% of employees spend time gathering
product information and price-shopping at work, a sharp contrast to
the roughly 25% of employees involved with less time intensive tasks
such as checking bank statements or credit card balances online.12
Employee Needs 12
13. The Untapped Network
When examining actual purchases from the workplace, the evidence
indicates that they are complex, expensive and research-intensive
products and services. (See Figure 3)
Percentage of Employees Ł
Buying a Given Product from Work
Financial Services 63%
Computer Hardware, Software 61%
Travel 54%
Books/Music 53%
Flowers/Gifts 48%
Paid Bills 46% 46%
Apparel 33%
0% 10% 20% 30% 40% 50% 60% 70%
Figure 3
Source: Jupiter Communications
Leading organizations are increasingly allowing employees reasonable
freedom with personal Internet purchases that typically would have
been performed with a phone call or a trip to a store during work
hours. Large companies can use volume purchasing, partnerships
and access to their employee base to negotiate discounted rates
on popular products and services. Examples include movie and
amusement park tickets, subsidized childcare or preferred rates
on car loans and insurance. “When you’re talking about saving
employees hundreds of dollars (with company discounts), that’s
significant… the job market is very tight, and any benefit is a tool.” 13
13 Employee Needs
14. The Untapped Network
Conclusion
As Internet and intranet access becomes ubiquitous, employers gain
a means to extend work hours around the clock and around the globe,
as well as a new tool to help employees manage their lives. Corporate
intranets provide the infrastructure for connecting employees to
a broad range of programs, products and services via the Internet.
According to Hewitt Associates, employees confront a life decision
every 12-15 minutes at the office.14 Given this frequency—and the case
that “reasonable” personal use is an accepted reality—it makes sense
for companies to help employees accomplish personal responsibilities
more effectively. Providing employees with online programs that
deliver targeted and personalized content, foster ongoing dialogue,
promote community-building and provide access to a wide range of
products and services around their life needs can help to differentiate
a company as an “employer of choice”.
Before companies can truly revolutionize the way they conduct
business by taking advantage of the Internet and online commerce,
they must first transform their workforce. Empowering employees
with the necessary online tools, and giving them the freedom to
use them in their personal and professional endeavors, is a first step
towards building the company for the twenty first century.
Conclusion 14
15. The Untapped Network
Endnotes
1. Forrester Research, “Internet Services Hypergrowth,” February 1999.
2. IDC Corporation, Abilizer Research
3. Nielsen/NetRatings, 2000, Abilizer Research
4. Vault.com, February 2000
5. American Management Association, 1999
6. Constat Market Research, 2000
7. Constat Market Research, 2000
8. “Desk Service,” Incentive, January 1, 2000, p. 9
9. “All Work and No Play.” The Industry Standard, May 15, 2000, p. 138
10. Constat Market Research, 2000
11. Jupiter Communications, “Home Versus Work Usage,” 1999
12. “Workers bag new perk with shopping on the job tight labor market
means creative benefits,” USA Today, November 16, 1999, p.1B.
13. “Workers bag new perk with shopping on the job tight labor market
means creative benefits,” USA Today, November 16, 1999, p.1B.
14. Hewitt Associates, 1999
15 Endnotes