Once hierarchical and vertically defined, businesses are becoming more flexible, complex, and interdependent than ever before. The traditional “command and control” form of business is morphing into a new business model rich with knowledge networks, integrated resources, and process-based services.

The networked enterprise is more fluid and is comprised of numerous connected partners and layers of partners. Pervasive, elegant, and cheap Internet technologies of the new model now open doors to near-seamless end-to-end integration, fusing organizations together in an interconnected environment.

The findings of eight CoRE 2010 research tracks along with the two complementary survey datasets are synthesized in this capstone report into an actionable roadmap of strategic and tactical options for the CRE professional.

The world of work is experiencing an upheaval and transformation as profound as the one that grew out of the invention of the printing press in the late 15th century. The ways people work, the things they do when they are working, where and when they work, and what they produce are all dramatically different from just a few years ago.

Knowledge work, the use of intellect to convert ideas into products, services, or processes, is now the predominant form of “labor” in the economy. And the creative knowledge work that generates economic value and competitive advantage depends on talented workers, not on raw materials. Knowledge work is a whole lot “messier” and more variable than production work; it s not location-specific; and it s highly collaborative.

This report describes the new “landscape” of work, provides solid evidence that the transformation is real and lasting, and identifies opportunities for corporate infrastructure executives to excel in this environment.

Sustainability and corporate social responsibility (CSR) are rapidly becoming mainstream business issues at the very highest levels of the multinational corporation (MNC), along with the concept of a “Triple Bottom Line” to communicate information about corporate performance not just financially, but socially and environmentally as well.

By 2010, it is anticipated that most Global 1000 companies will use some form of Triple Bottom Line reporting in place of traditional financial reports to key stakeholders. The adoption of this concept in turn will drive major changes in the way a company operates, particularly in the areas of facilities design, construction and management.

Growing demand for sustainability as a design and construction element will influence real estate suppliers to stay competitive by delivering sustainability without the price premiums that currently exist. It is anticipated that sustainable buildings will deliver “cost-in-use” savings as the concept gains acceptance as a benefit rather than a drawback in facilities design and construction.

By 2010, leading corporations will manage infrastructure resources required to convene and deploy their workforce in an integrated manner.

Integrated Resource and Infrastructure Solutions, "IRIS,” envisions the convergence of certain aspects of CRE, IT, HR, Finance, and other support disciplines in new ways to help enterprises find and implement strategies for “lowering the break-even cost of doing business” without sacrificing the “must haves” of customer reach, speed, flexibility, and service.

At the most basic level of implementation, the convergence of these functions will yield cost savings, improved speed to market, and enhanced customer service.

At the highest level, the innovation opportunities that exist at the intersections of these functions will yield paradigm-shifting insights and solutions that have profound implications for workforce support, business model design, competitive position, and even enterprise strategy itself.

These innovations as applied to enabling work itself will create the discipline of integrated workplace design and the role of workplace strategist.

As many large corporations move to an IRIS model that is based on highly integrated management of the corporate infrastructure, more and more of the actual work for which IRIS will be responsible will be outsourced.

The service provider industries will undergo significant changes in response to increased outsourcing and the demand for greater integration of corporate infrastructure work. We already see evidence of this trend in what is termed Business Process Outsourcing (BPO).

Major benefits from integration will be realized only if the outsourced work is also integrated.

The networked world requires the timely development of new business and infrastructure models that are flexible and able to change rapidly in order to remain competitive in the global marketplace. Design and development of these global network models are data-driven processes that examine in a holistic manner the entire resource base (technology, assets, personnel, etc.) of the enterprise in order to assure alignment and configuration for optimal business network solutions.

The optimization process requires a close examination of the nature of work itself, whether or not the work is a core competency of the enterprise, advantages of various global locations, and an integrated approach to work process improvement.

The mission of aligning real estate strategies to the business strategies and managing the fixed assets of the enterprise is too narrow for the future.

The focus will be on designing and operating global network infrastructure solutions, which in many cases in the future will not involve any company- owned or leased facilities.

Once a purely tactical and reactionary discipline, asset management is moving to an orientation that is strategic, agile, data-driven and geared toward optimization of the entire portfolio. In 2010 and beyond, the enterprise portfolio will be made up of more than real property and fixed assets. It will also incorporate human and capital resources, technology, and other components that contribute to enabling work for the enterprise s competitive advantage.

Portfolio optimization is driven by real-time data, financial models and metrics, and collaboration with other process providers, both internal and external, so it is much more responsive to the financial pressures on the enterprise. Optimization of all of the integrated resources is essential to successfully meeting the needs of the networked business enterprise.

The process of portfolio optimization starts with understanding the entire value network of the corporation, then segmenting the portfolio according to the value that each piece contributes to the organization s competitive advantage. The next step is to manage the portfolio of resources based on the company s vision and strategy. Measuring the success of that management and recalibrating, as needed, completes the process.

Information technology is an overarching force in the transformation of the workplace. Mastery of its applications in support of work whenever and wherever it is done is the overarching and evolving challenge for corporate real estate. The fact that technology is a critical factor in enabling work is not in itself new but what is new is its growing dominance as the prime enabler of work far more so than location.

There is no certain method of predicting the next innovations in technology, but understanding and in the technological context is critical for CRE executives as the traditional walls and boundaries of the enterprise give way to electronic and organizational networks networks that are becoming both a function and a product of workplace design.

It is imperative for CRE managers to understand and make use of the rapidly evolving technological advances that drive workplace design to streamline daily operations, business processes, and relationship management capabilities.

This report outlines the key technology issues CRE and other infrastructure professionals must consider when assessing and integrating the vital drivers affecting the business strategies and plans of the networked enterprise.

Crafting location decisions in a global, networked enterprise will call for CRE to leverage technology to create real-time databases and to employ performance metrics that go beyond traditional facilities analysis.

The ability to access, interpret and build solutions from this data will be required for CRE to secure a place at the strategy development table as top management analyzes the impact of a new operation in light of critical business objectives.

The ability to balance risk and reward on many levels will also be critical in this process. Risk factors include international politics, social/ethnic/religious/cultural issues, macroeconomic trends, currency fluctuations and legal issues in addition to geographic borders and natural disasters.

This report identifies strategies for CRE professionals to acquire the needed resources and skills for success at the enterprise level as the global enterprise becomes a competitive necessity.

Because technology is not only an enabler of work and work processes but also a driver of accelerated change in the networked world, the CoRE 2010 Role of Technology & the Web research team set out to examine the evolving viewpoints of the providers of technology (software, hardware and technical services) to CRE professionals. The Kingsley Associates Technology Marketplace Survey is a complementary data set that, when considered with the Gallup Survey (see below), paints a complete picture of the anticipated horizon for technological change in CRE and the enterprise by the year 2010.

Kingsley Associates was commissioned by CoreNet Global to execute the Technology Marketplace Survey under the direction of the CoRE 2010 Technology & the Web research team. The survey targeted the chief executives and research leaders of today s leading providers of corporate real estate technology solutions. This included firms with business focuses including technology, corporate real estate services and outsourcing, as well as real estate investment trusts (REITS). Kingsley Associates used a Web-based survey methodology for the study,with a response rate of a strong 44.3%.

CoreNet Global hired The Gallup Organization to assist in conducting a survey of end-user CoreNet Global members and non-members and other corporate real estate professionals on key topics related to enabling work in a networked world.

The primary objective of the survey was to examine the perceptions of corporate real estate and infrastructure managers on current and emerging issues associated with the role of corporate real estate and the overall corporate infrastructure in 2010.

The secondary objective was to obtain evidence to support, reject, or modify the research hypotheses developed by each of the eight research teams. More detail on the specific hypotheses for each research area can be found in the reports developed by each team. The survey questionnaire was developed based on input from each of the research teams.

To encourage participation and ensure anonymity, the questionnaire was hosted by The Gallup Organization on its Web site with 314 people completing the survey, resulting in an 11 percent response rate considered an above-average rate by survey experts.