Business Report: Virtual Office vs. Real Office for XYZ Company

This report examines the transition from traditional real offices to virtual office setups, considering the impact of technological advancements and evolving business environments. It explores the advantages, such as cost reduction, increased employee productivity through device-driven efficiency metrics, and the ability to leverage big data for decision-making. The report also acknowledges potential drawbacks, including the loss of tacit knowledge and the importance of the 'human factor.' It suggests a transitional approach for the XYZ Company, gradually integrating virtual practices into their working culture, and concludes that while negative feedback exists, virtual offices hold significant promise for the future. The report uses various sources to support its findings.

Running Head: Virtual office Versus Real Office
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Running Head: Virtual office Versus Real Office
From
Date
Sub: Facts and opinions regarding the proposed changeover of the business from real office
to the virtual office.
Introduction
Business environment and technology are two big factors that have the potential to change
the working cultures and the procedures associated with various operations. Most of the
businesses of the world are now adapting to a new culture where virtual offices may become
a reality. It will happen because the globalized world has already accepted the practices that
are associated with the fourth industrial revolution. At the beginning of the present decade,
cloud technologies emerged as a promising solution. The power of the cloud technology and
changing marketplace across the world has given rise to the culture of the virtual office (Blau,
2018). In the current report, we are suggesting the pro's and con of a virtual office contribute
in the decision-making mechanism of the marketing director of the XYZ Company. As per
the facts presented in the case so far, he got a negative feedback related to the success of the
virtual offices. In the current report, we will also examine the worth of these facts as well.
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Running Head: Virtual office Versus Real Office
The metrics of the working efficiency are changing
The HR machinery across the world are now replacing the traditional methods of calculating
the working efficiency of an individual, it has become device driven, and it means how much
time an individual is spending on the Work Station (Laptop or any other device). When he is
reporting, when he is leaving, what kind of communication he did with the clients and the
colleagues. The answers of most of these questions are available in digital format for them. In
the coming future, it is expected that this dependence will increase further. This is the time
where the need for the real office will abolish (Prince, 2018).
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Running Head: Virtual office Versus Real Office
Decision-making mechanisms are changing the face
Big and small enterprises are seeking data from all the possible ports. They are collecting the
digital footprints made by the members of the team and their customers. This we can
understand with the help of an example created by the online portals. In the past sales records
were the only parameter of the success of any product, however, in the current culture, they
are studying that how many visitors visited a product and studied which aspect of the product
more closely. This study gives them the idea to design future communications with clients for
a better conversion ratio (Moss, 2018). In the past, organizations were using the interpersonal
experiences of the employees for the same purpose. They were looking for a pool of tacit
knowledge. However, soon all the businesses will start relying on the big data facilities. The
concept of the virtual office can cut the cost in this scenario because it is not the person; it is
the device which is reporting on the work. They will not require the physical presence of the
individual in an office.
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Running Head: Virtual office Versus Real Office
We need to follow digital procedures in a real-world office
Gradually the world is going to become a paperless world where all the communications will
take place on digital platforms only. There are certain areas of the work where we cannot
think about a swift-working culture in the absence of a digital network connecting the
employees. If the employees can be connected to a digital network with the help of a cloud
network then why we need a physical presence of these employees in an expensive office
space. Office expenses will soon become an additional expense in the operational portfolio of
an office (PTI, 2018).
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Running Head: Virtual office Versus Real Office
The future generations are tech savvy and well versed with the online culture
Three decades ago when the culture of computers came in, people were reluctant to it, they
were presenting the arguments that it is not a mass friendly option because everybody is not
computer literate. Thirty years down the line we are discussing virtual offices, it is the next
level of the communication. Many universities are promoting the culture of virtual
classrooms where students are comfortable and getting good grades. These students will form
the workforce of the future. A virtual office is the need of the hour because the shift of the
technology is certainly changing the bottom lines of the education and other places where
they are procuring the skills of the future workforce (Barker, 2018).
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Running Head: Virtual office Versus Real Office
The cons of a virtual office
A virtual office can bring in a big blank in the terms of the tacit knowledge pool of an
organization. The excessive reliance on the technology can kill the "human factor" and
sometimes human factor is required to handle certain conditions where EQ is required more
precisely. The lack of the personal touch can also bring down the ratio of the psychological
capital of the organization as well. However, these shortcomings can be filled up with the
help of regular formal and informal meetings at different places (Cirrilo, 2018).
Conclusion
It is true that the feedback connected to the performance of employees in a virtual office is
negative; even then we cannot undermine the fact that virtual office holds a lot of promise for
the future. They are in sync with the industries and the business models of the future. They
are a better option in the terms of the employee productivity and efficiency. On the scale of
efficiency, it can falter sometimes when an organization requires tacit knowledge or EQ
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based decisions. The XYZ Company should go for a virtual office setup, however, it should
be a transitional phase-out where the real world should gradually accommodate virtual world
practice in their working culture.
Regards
Xyz
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Running Head: Virtual office Versus Real Office
Bibliography
Barker, J. (2018). 30 Office Jobs Available Around Gwinnett County. Patch , Accessed 3-12-
2018, https://patch.com/georgia/loganville/30-office-jobs-available-around-gwinnett-county-
0.
Blau, A. (2018). Remote work is the 'new frontier', but is it really the death of the office?
ABC News, Accessed 3-12-2018,https://www.abc.net.au/news/2018-12-04/remote-work-the-
new-frontier-but-not-all-are-convinced/10577030.
Cirrilo, C. (2018). WHEN SHOELESS COWORKERS AND EMPTY OFFICES MEAN
SUCCESS. All Work, Accessed 3-12-2018,https://allwork.space/2018/11/when-shoeless-
coworkers-and-empty-offices-mean-success/.
Moss, J. (2018). Helping Remote Workers Avoid Loneliness and Burnout. Harvard Business
Review, Accessed 3-12-2018, https://hbr.org/2018/11/helping-remote-workers-avoid-
loneliness-and-burnout.
Prince, R. A. (2018). What Is A Virtual Family Office? Forbes, Accessed 3-12-
2018,https://www.forbes.com/sites/russalanprince/2018/11/09/what-is-a-virtual-family-
office/#1badd6ea59d2.
PTI. (2018). Majority of global firms plan to use more flexible workspace in the next 3 years:
Study. The Economics Times, Accessed
3-12-2018,https://economictimes.indiatimes.com/news/international/business/majority-of-
global-firms-plan-to-use-more-flexible-workspace-in-next-3-years-study/articleshow/
66588344.cms.
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