I am currently working at the Dutch Microsoft office where 'The New World of Work' was implemented nearly 3 years ago. Working here is quite an experience! The New World of Work is built using virtual communication tools, and at the same time it only works when people are open to changing the way they organize their work. Having a building that really accomodates what you are doing makes a lot of difference too, so when Microsoft Netherlands built a new building three years ago they worked with the architect to design a building around 'The New World of Work'. The video below is well worth viewing, I am in love with the concept, this really is a great way to work!
What are the benefits? Thousands of hours were lost each week by people who were stuck in lengthy traffic jams. Not anymore though, as flexible working hours are now the norm. People work from home while traffic clears and they only go to the office when they need to (i.e. meetings, events etc.). Much more impressive is the fact that the places that people work in are now flexible. The home office is great for producing documents, the office is great for meetings. People don't have their own office but rather they find an environment that suits their current need. For instance, there are 'concentration booths' for those facing tight deadlines, work stations for people who are less time challenged and who welcome some interaction as they work and there are 'lounges' for creative/brain storming sessions.
Microsoft Netherlands introduced this new way of work nearly three years ago. From what I hear from my colleagues here, it has worked out really well and they are enjoying the all round flexibility a lot. People can be extremely productive by isolating themselves for a while when they need to and at the same time there is a lot of social interaction when time or work requires it. Even though people are in the office much less, they all claim to have a lot more interaction with a lot more colleagues. As people and technology evolve, we will likely see a lot more of this.