Zarządzanie Finansowe Archive

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2019: Office market trends in Poland

Record value of investment transactions and demand for space proves excellent shape of the office segment in our country

In 2019, we could observe further intense development of the office market in Poland. The most dynamic development of the office real estate segment is visible in Warsaw, which has outperformed regional markets in terms of demand. Walter Herz analysts predict that this year will close with the best-ever result in terms of the amount of space leased on the capital market. This year, we have already seen record lease transactions in Warsaw. mBank has leased 45.6 thousand sq m of office space in Mennica Legacy Tower, whereas Orange Polska renewed its lease of nearly 45 thousand sq m. of offices in Miasteczko Orange.

Clear changes in all of the largest office centers in Poland can also be seen in the demand structure, where the share of pre-let contracts is increasing. In regional cities, pre-let already covers a third of the leased space. In Warsaw, most offices under construction are already secured by contracts.

Bartłomiej Zagrodnik, Managing Partner at Walter Herz notes that today we are dealing with very high tenant activity on the office market, from both private and public sectors. – Constant demand for offices, not only in large cities, but also in smaller urban centers, in turn, encourages developers to act, rapidly launching other, often spectacular projects. In addition, they are also motivated to initiate new investments by large interest in commercial real estate from various capital markets, including those that so far have been less active in Poland – informs Bartłomiej Zagrodnik.

Walter Herz’s Managing Partner emphasizes that the economic growth seen in the country, an ever wider range of investment products, including primarily AAA class facilities and high demand from tenants foster investments in Poland, as evidenced by the minimum vacancy rate in the office segment. – Not only the Warsaw market is enjoying the investors’ interest, but also regional markets, with this year’s record-high level of investment transactions in the office sector. Cracow, Wrocław and the Tri-City achieve the best results in this respect. This proves good shape of the office segment in Poland – says Bartłomiej Zagrodnik.

Poland is perceived as a stable and mature economy, hence large international funds are increasingly willing to invest with us. Participation in investment transactions increases primarily due to the Asian capital, especially from South Korea. Walter Herz data shows that the value of investment transactions on regional office markets outside Warsaw has already exceeded EUR 1 billion this year, which is the best result in history. In all of Poland, the total sum of transactions involving office buildings after three quarters of this year, exceeds the amount of the entire last year’s volume.

According to Walter Herz, 1.7 million sq m. of office space is currently under construction on the office market in Poland. Among the implemented investments there are also those that impress with their enormity. The largest complex under construction is Warsaw’s Varso, which will offer 110 thousand sq m. of office space. Commissioning of several spectacular office towers in Warsaw, including Mennica Legacy Tower, Widok Towers, The Warsaw HUB and Skyliner is scheduled in the upcoming weeks.

Large facilities that are to offer offices at the highest world level are under construction in the largest business centers in the country. Mixed-use projects, which are often based on the revitalization of historical industrial buildings, are appearing more and more often among them. Mixed-use facilities, such as Warsaw investments Elektrownia Powiśle, The Warsaw HUB, Fabryka Norbina, Browary Warszawskie and Koneser, as well as Łódź-based Fuzja and Monopolis are very popular among tenants. Therefore, according to Bartłomiej Zagrodnik, the upcoming weeks will be a period of intense development of mixed-use investments, which today very often bring about the reconstruction of large fragments of cities, and some of them are under conservation protection.

The coming months will also bring verification of the instant office and co-working space market, which has recently significantly increased its resources in Poland, primarily in Warsaw. Opening several new locations of flexible spaces, including in the Warsaw Hub, Central Point, Varso, Mennica Legcy Tower, Fabryka Norblin and Monopolis complexes, will reveal the real demand for this type of space, which will determine the pace of development of this segment in our country.

Developers have recently put more emphasis on increasingly advanced technological and ecological solutions. Lately, we have been able to observe a number of changes in this area on the office market. Arrangement of new facilities goes towards increasing energy efficiency and reducing the negative impact of buildings on the environment.

Office buildings are becoming, not only more and more comfortable, but also economical. The solutions used in them allow to obtain a good result under multi-criteria certification, in the process of assessing energy efficiency, water management efficiency, the quality of the building’s internal environment, waste reduction and the use of recycling, as well as the quality of materials used for building facilities. Currently available technologies allow creating zero-energy buildings, that is facilities with zero energy consumption and zero carbon dioxide emission. The most modern complexes are striving to confirm their standard with WELL certificate.

The most prestigious buildings are testing systems supporting users in organizing their everyday work. It is possible thanks to smartphone applications that allow customizing light, temperature, humidity in the rooms, booking a conference room, parking space or other services.

About Walter Herz

Walter Herz company is a leading Polish entity which has been operating in the commercial real estate sector across the country. For seven years, the company has been providing comprehensive and strategic investment consulting services for tenants, investors and real estate owners. It provides extensive support for both public and private sector. Walter Herz experts assist clients in finding and leasing space, and give advice when it comes to investment and hotel projects.

In addition to its headquarters in Warsaw, the company has branches in Cracow and Gdansk. Walter Herz has created Tenant Academy, first project in the country, supporting and educating commercial real estate tenants across Poland, with on site courses held in the largest cities in the country. In order to ensure the highest ethical level of services provided, the agency introduced the Code of Good Practice.

Iwona Wiśniewska-Lopez

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Optimize for Both Social and Business Value

Building resilient businesses, industries, and societies

As we approach a new decade, we are also approaching a tipping point for business, with new benchmarks for what constitutes a good company, a good investment, and a good leader. The defining expectation: good companies and investments will deliver competitive financial returns while helping society meet its biggest challenges, and in so doing will enable sustainable business.

Leaders with foresight and courage will use this dynamic to create new opportunities for growth, sustained returns for shareholders, and greater societal impact. To do this, they will need to think in new ways, create new modes of competitive advantage, pursue deep and broad business model innovation, and engage strategically with ecosystems. They must merge the two currently disconnected uses of the “S-word” in business: sustainability and sustainable competitive advantage.

The implications for companies, capital, and capitalism are profound. Here, we share our take on the emerging era of business value, and the CEO agenda for value and the common good.

Why Is Corporate Capitalism at a Tipping Point?

Stakeholders are beginning to pressure companies and investors to go beyond financial returns and take a more holistic view of their impact on society. This should not surprise us. After all, we have lived through two decades of hyper-transformation, during which rapidly evolving digital technologies, globalization, and massive investment flows have stressed and reshaped every aspect of business and society.

As in previous transformations, the winners created new dimensions of competition and built innovative business models that increased returns for shareholders. Many others found their businesses at risk of being disrupted, with familiar formulas no longer working. To meet the unwavering demands of Wall Street, many companies relentlessly optimized operating models, streamlined and concentrated supply chains, and specialized their assets and teams—leaving them less resilient and less adaptable to shifting markets and trade flows. The resulting waves of corporate restructuring, consolidation, and repositioning have fractured companies’ cultures and undermined their social contracts.

Furthermore, this hyper-transformation cascaded beyond individual companies and created socio-economic dynamics that left many people and communities economically disadvantaged and politically polarized. Combined with the increasing shared anxiety that the earth’s climate is changing faster than the planet can adapt, a global zeitgeist of risk and insecurity has emerged. We will enter the 2020s with more citizens, investors, and leaders convinced that the way business, capital, and government work must change—and change quickly.

We now must rethink the sustainability of the whole system in the face of extreme externalities—or risk losing social and political permission for further progress. The 2030 UN Sustainable Development Goals (SDGs) identify the moral and existential threats that we must meet head-on. While some question the SDGs’ breadth and timeline, most agree that, if achieved, they would create a more just, inclusive, and sustainable world. Goal 17 calls for new engagement by companies and capital in partnership for collective action across the public, social, and private sectors. Five years into the SDG agenda, there is ample evidence that governments, investors, and companies are beginning to exercise their capacity to create much-needed change.

More: https://www.bcg.com/publications/2019

Authors: David Young, Wendy Woods, and Martin Reeves

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Growing your own agility coaches to adopt new ways of working

Agile coaches play a vital role in enterprise-wide agile transformations. To develop enough coaches, companies should create specialized training academies.

Companies are increasingly looking to infuse agility into their operating models. However, as organizations attempt to scale these efforts across their entire business, new challenges that simply didn’t exist at the micro level are beginning to surface. These challenges are especially prevalent where traditional organization silos need to interact.

The big realization for many companies is that scaling agile is not simply a matter of replicating agile practices across more teams. This is why trying to adapt project-management offices (PMOs) to support agile projects or bringing in more scrum masters is unlikely to be effective (see sidebar, “The scrum master’s role in scaling agile”). Rather, agility as an operating model requires the rewiring of core enterprise-wide processes. With this comes a need for the organization to operate differently.
The degree of change required to adopt agile ways of working across an entire organization is simply too large to repurpose existing roles and structures. Only by investing in agility coaches—and a comprehensive program to identify, train, and support them—can companies expect to scale and sustain agile across the enterprise.

To ensure the success of the agility coaching academy, it is critical to have the right support and leadership structure. Typically, the academy is led by a full-time executive who reports to either the CHRO or some other member of the C-suite depending on who is really driving the agile transformation—it could be the CIO, the head of transformation, or the COO. The academy lead is accountable for the following:

  • Setting the strategy and defining the delivery road map for the academy
  • Running the day-to-day operations of the academy, such as building and refining the academy backlog
  • Leading the recruitment of coaches
  • Overseeing learning and development of the trainee agility coaches, and administering the learning and development of graduated coaches
  • Defining the evaluation criteria and mechanisms to measure effectiveness of the agility coaches
  • Deploying the right agility coaches to the right areas and teams
  • Overseeing performance evaluations for the agility coach cohort

More: https://www.mckinsey.com/business-functions/

By Amit Anand, Sahil Merchant, Arun Sunderraj, and Belkis Vasquez-McCall

About the authors: Amit Anand is a senior expert in McKinsey’s Sydney office, Sahil Merchant is a partner in the Melbourne office, Arun Sunderraj is a digital expert in the New York office, and Belkis Vasquez-McCall is a partner in the New Jersey office.

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Ericsson and SoftBank will start the technology 5G in Japan

Operators are seeking solutions to both support traffic growth as well as emerging use cases and business opportunities. To assist operators with these challenges and opportunities, Ericsson 5G radio access technologies are being created to provide the infrastructure needed to support the world’s growing demand for high-bandwidth connections and support the real-time, high-reliability communication requirements of mission-critical applications.

The specification of 5G will also include the development of a new flexible air interface, NR, which will be directed to extreme mobile broadband deployments. NR will also target high-bandwidth and high-traffic-usage scenarios, as well as new scenarios that involve mission-critical and real-time communications with extreme requirements in terms of latency and reliability. Ericsson is extending the Ericsson Radio System to deliver new radio access products and functionality to smooth the operator’s transformation journey to 5G. Ericsson Radio System extensions deliver a high performance, end-to-end 5G access system which includes the industry’s first global portfolio of 5G NR radios. Ericsson is also first to market with solutions that enable 4G LTE networks to evolve smoothly on the journey to 5G, such as Ericsson’s new 5G platform for combined core and radio use cases. The platform comprises the 5G core, radio and transport portfolios, together with digital support systems, transformation services and security.

Ericsson i SoftBank wprowadzą w Japonii sieć 5G

  • Ericsson dostarczy firmie SoftBank sieć dostępu radiowego pracującą w średnim i wysokim paśmie 5G, a także rozbuduje obecną sieć LTE
  • Wybór firmy Ericsson jako dostawcy technologii 5G to efekt wspólnych działań w zakresie weryfikacji koncepcji
  • Obie firmy planują dalsze prace nad rozwojem wykorzystania technologii 5G

Firma Ericsson (NASDAQ: ERIC) została wybranym przez SoftBank dostawcą technologii 5G w celu wdrożenia wielopasmowej sieci 5G w Japonii, po skutecznym przeprowadzeniu wspólnych działań w zakresie weryfikacji koncepcji, które trwają od 2015 r.

Na mocy umowy, firma Ericsson dostarczy do SoftBank urządzenia do obsługi sieci dostępu radiowego, w tym produkty z portfela Ericsson Radio System. Umożliwi to firmie SoftBank uruchomienie usług 5G w ramach nowo przyznanych pasm o częstotliwości 3,9-4,0 GHz oraz 29,1-29,5 GHz, w celu obsługi nowych sieci radiowych 5G. Dodatkowo firma Ericsson wzmocni istniejącą w SoftBank sieć LTE.

Produkty z serii Ericsson Radio System zostaną wdrożone w kilku regionach, co pozwoli firmie SoftBank na dokonanie optymalizacji całego spektrum aktywów.

Chris Houghton, Starszy Wiceprezes i Szef Działu Rynku Azji Północno-Wschodniej Ericsson, powiedział: „SoftBank i Ericsson są partnerami od czasów wprowadzenia technologii 2G, dlatego też jesteśmy podekscytowani możliwością wspierania firmy SoftBank na kolejnym odcinku ich technologicznej podróży. Dzięki produktom Ericsson, firma SoftBank będzie mogła wykorzystać potencjał technologii 5G, oferując ją społeczeństwu japońskiemu, a my z niecierpliwością czekamy na dalszy rozwój naszego długoletniego partnerstwa”.

Firmy Ericsson i SoftBank zainicjowały wspólne działania w zakresie weryfikacji koncepcji w 2015 r. i skutecznie rozszerzyły swoją współpracę o badania sieci wielopasmowych 5G, w tym o częstotliwościach 28 GHz i 4,5GHz. Obie firmy będą kontynuować prace w zakresie analizy wykorzystania technologii 5G, promowania przekształcenia przez SoftBank sieci LTE w 5G oraz realizowania komercyjnych usług wykorzystujących technologię 5G w 2019 r.

Katarzyna Pąk, Head of Marketing & Communications

 

 


O firmie Ericsson

Ericsson, największy na świecie dostawca technologii i usług dla operatorów telekomunikacyjnych, oferuje społeczeństwu sieciowemu efektywne rozwiązania działające w czasie rzeczywistym, które pozwalają nam wszystkim swobodniej studiować, pracować i żyć w zrównoważonych społecznościach na całym świecie.

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How IoT Data Ecosystems Will Transform B2B Competition

Former Cisco CEO John Chambers got it mostly right when he said that every company today is a technology company. In fact, every company is becoming a technology and data company, and the consequences of this distinction are substantial.
The real value of the Internet of Things (IoT) lies in the data it serves up and the insights that result. Much has been written about how IoT is unlocking significant value for companies by enabling smart factories and connected supply chains as well as the ability to monitor products and deliver new services. But IoT isn’t just changing how companies operate; it’s changing the very nature of their businesses. In asset-heavy industries, the proliferation of IoT data is fundamentally shifting the customer value proposition from goods to services, and this shift is leading companies to adopt new business models that require new capabilities.
The majority of IoT solutions today are built around internal applications such as predictive maintenance, factory optimization, supply chain automation, and improved product design. But to fully capture the value of their IoT data, B2B companies need to think beyond their own walls. By collaborating with new business partners, including industry incumbents and players in other sectors, companies can form new data ecosystems. These ecosystems give their participants access to valuable collective data assets as well as the capabilities and domain expertise necessary to develop the assets into new data-driven products and services.
Data ecosystems will play a critical role in defining the future of competition in many B2B industries. They enable companies to build data businesses, which are valuable not only because they generate high-margin recurring revenue streams but also because they create competitive advantage. New data-driven products and services deliver unique value propositions that extend beyond a company’s traditional hardware products, deepening customer relationships and raising barriers to entry. They also build highly defensible positions, thanks to natural monopolies rooted in economies of scale and scope (similar to monopolies based on proprietary IP or trade secrets). Companies that secure advantaged positions in data ecosystems will generate significant value and competitive advantage across their entire business, including their traditional hardware offerings.

Digital ecosystems—networks of companies, consumers, customers, and others that interact to create mutual value—have enabled some of the most profitable and valuable business models that exist today. (See “Getting Physical: The Rise of Hybrid Ecosystems,” BCG article, September 2017, and “The Age of Digital Ecosystems: Thriving in a World of Big Data,” BCG article, July 2013.) In fact, the five most valuable public companies in the US (at the time of publishing)—Apple, Google, Microsoft, Facebook, and Amazon—are all orchestrators of digital ecosystems. These digital leaders have built platform-based business models that capitalize on the winner-take-all dynamic of ecosystem competition to reach enormous scale and establish dominant positions.

These orchestrators exploit three factors:

  • They scale up rapidly, capitalizing on virtually zero marginal production costs, network effects, and low barriers to geographical expansion (in the absence of protectionism).
  • They take advantage of the “data flywheel effect”; digital ecosystems enable unprecedented data accumulation and analysis, fueling improvements to products and business processes and stimulating further growth and data access.
  • And ecosystems are able to provide seamless and comprehensive digital experiences for customers by organizing business partners on a single platform to satisfy multiple customer needs. They thereby lock in customers and capture a greater portion of their attention, time, and value.

More:

https://www.bcg.com/publications/2018

By Massimo Russo and Michael Albert