Hypertech Magazine by garygrey

E-MAGAZINE PUBLISHED BY THE AGSB INFOTE CLASS MM-O2 | SY 2015-2016 | APRIL 2016

TECHNOLOGYREVIEW:

Paving the roads for a better future BONUS FEATURE:

EMERGENCE OF DRONES:

Unmanned Opportunities for Business Image: (c) ENO Center for Transportation

WHAT’S INSIDE

INTERNET OF THINGS

AUTONOMOUS VEHICLES 1

SMART ROBOTS

DRONES

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FOREWORD

55 pounds. By using drones, law enforcement officers can get a birds-eye view of accidents and crimes scenes, and can also search for suspects.

by Professor Gary A. Grey

While current battery life of drones last for only 15-30 minutes, there are trends to using fuel-based and solarpowered drones as in the case of Google’s Project Skybender which aims to use solar-powered drones to provide internet connectivity in areas where currently there is none. While the current business model used by Aero360 Solutions’ President Mark Villaflor is the BuildOperate-Transfer model there is the possibility of using the UBER business model for drone owners where profits are shared among the drone owners, the drone pilots, and the UBER platform.

This issue of Hypertech E-magazine focuses on Drone Technology and it’s symbiotic relationship with 3 other emerging technologies: Smart Robots, Internet of Things, and Autonomous Vehicles. This issue also incorporates insights from the IT Forum on Drones “Emergence of Drones” where we learned that drones were already being manufactured in the Philippines as custom designed solutions using 3D Printing Technology. From the IT Forum we learned that the Civil Aviation Authority of the Philippines (CAAP) classifies drones based on weight, viz. drones which weigh higher than 10 kg. have to be registered with CAAP. Another strict regulation is the 10-kilometer no fly zone for drones in the airport area. As the use of drones has expanded from military to commercial and recreational purposes, experts fear that these radio-controlled aircraft, if not regulated, could collide with commercial aircraft. The main concern of the International Air Transport Association (IATA) is that drones flying at low altitudes near airports could threaten planes that are taking off or landing.

Due to the law of accelerating returns, drones are becoming more affordable. In 2016, it is estimated that 3 million drones will be purchased in the US alone. Drone racing has become a popular sport. In the US, nearly one million drones were given as Christmas presents last December. In rural areas, entrepreneurs are working on the use of drones for agriculture, energy, and other industries in less populated areas of America. In Nevada, drones are being used to ferry fire-fighting robots to brush fires. A British company, Bio-Cardon Engineering, intends to use drones to plant one billion trees in deforested areas. Each of the topics on drones, smart robots, internet of things and autonomous vehicles have their own StrengthsWeaknesses-Opportunities-and Threats and have their respective cost-benefits, ethical and nation-building implications.

The Center for the Study of Drones at Bard College, New York, recorded 921 incidents involving drones and piloted aircraft between December, 2013, and September, 2015. In 28 of these cases, the commercial pilot had to maneuver to avoid colliding with the drone. Since 2012, US government agencies and police forces have applied for certification of the small drones – weighing less than

Hypertech Magazine Issue MM02 January – April 2016

ABOUT PROFESSOR GARY A. GREY, MBM Gary A. Grey is a Consultant of Vision Analytics, Inc., a software development company organized in 2000 that focuses on the use of artificial intelligence platforms across various industries. Vision Analytics, Inc. (formerly Vinta Systems, Inc.) is a joint venture company between Peter Valdes (VSoft, Inc., U.S.) who was one of the original founders of Tivoli, and Gus Lagman (Logic Management, Inc. Chairman and STI Colleges co-founder). He is concurrently a Faculty Member of the Ateneo Graduate School of Business teaching Information Technology for Managers, Technopreneurship, Ethics and Law, E-Marketing, Business Intelligence, and E-Commerce.

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Image: (c) www.raconteur.net

by Donnabele Amgao, Armeda Casaol, Jesus De Vera, Jaime Hermogenes, Kent Kelley Miag-Ao, and Christopher Sanchez

TECHNOLOGY DESCRIPTION

could connect to the machine over the Internet, check its status, and determine whether or not there would be a cold drink waiting for them if they decide to make the trip down to the machine.

In the past when we hear about the word Internet, what comes to mind are just computers connected via a network. With the Internet of Things, instead of just computers, what you’re talking about are interconnected common objects or “things” that can be equipped with capabilities such as identifying, sensing, networking and processing which allow them to communicate with other devices, systems and services over the “Internet” without requiring human-to-human or human-to-computer interaction to accomplish a certain objective. These things traditionally could have had little to no computing capacity, but now do. To explain further, when we say “things”, it can be a person wearing an activity tracker like Fitbit bracelets, a car that has built-in sensors to alert the driver when tire pressure is low or needs changing, a pet dog with a biochip transponder -- or any other natural or man-made object that can be assigned an IP address and provided with the ability to transfer data over a network as previously mentioned.

As explained by MIT’s Auto-ID Center co-founder and executive director Kevin Ashton in his 1999 IoT presentation to Procter and Gamble: “Today computers -- and, therefore, the Internet -- are almost wholly dependent on human beings for information. Nearly all of the roughly 50 petabytes (or 51, 200 terabytes) of data available on the Internet were first captured and created by human beings by typing, pressing a record button, taking a digital picture or scanning a bar code. The problem is, people have limited time, attention and accuracy -- all of which means they are not very good at capturing data about things in the real world. If we had computers that knew everything there was to know about things -- using data they gathered without any help from us -- we would be able to track and count everything and greatly reduce waste, loss and cost. We would know when things needed replacing, repairing or recalling and whether they were fresh or past their best.”

The IoT technology has been in development for decades but the model or concept was not named until 1999. In the early 1980s, the first Internet appliance was a Coke machine at Carnegie Melon University. The programmers

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Today, the Internet of Things has been most closely associated with Cloud, Big Data Analytics, and machineto-machine (M2M) communication. Products built with M2M communication capability are often referred to as being smart. Technology companies see a huge revenue potential on the revolutionary solutions that can be brought about by the IoT explosion. For consumers, it has the capability to dramatically improve health, education, security, energy efficiency, and many other aspects of daily life. For businesses, IoT can strengthen solutions that improve decision-making and productivity in manufacturing, retail, agriculture and other sectors. According to a 2015 study conducted by the TaTa Consultancy Group, 79% of many large global companies already use IoT technologies to track their customers, products, the premises in which they do business with customers, or their supply chains. This year, companies with IoT initiatives that participated in their study will invest $86 million – or 0.4% of revenue – apiece to further their projects. They expect their IoT budgets to rise by 20% by 2018 to $103 million. Fig. 1 shows the investment in IoT made by different industries versus their average revenue.

Fig. 1.1 - Average Industry Spend on IoT Initiatives as a Percentage of Company Revenue

IOT TRENDS Multiple business areas--ranging from retail, to manufacturing, logistics, automotive, travel and others have already started investing a considerable amount of resources in IoT in hopes of getting ahead in the game. Different sectors within the connected and smart “everything” (homes, cars, devices, etc.) are all facing different challenges with an increased emphasis on differentiation strategies and expanded offerings.

PREDICTIONS ON THE INTERNET OF THINGS: FROST SULLIVAN: By 2020, each human being will have an average of 5.1 connected devices.

GARTNER: By 2020, the installed base of the

RETAIL. More retailers will look into the IoT to enhance

internet of things (IoT) will exceed 26 billion units worldwide, globally there will be 15 billion networked devices in 2015, an increase from 7 billion in 2010.

customer shopping experience. A study by McKinsey found that the uses of IoT in retail could have an economic impact of $410 billion to $1.2 trillion per year in 2025. That’s still a few years from now but we can expect that a lot of revolutionary retailers would look to step-up to the challenge sooner.

MCKINSEY GLOBAL INSTITUTE: The Internet of Things (IoT) has the potential to create economic impact of $2.7 trillion to $6.2 trillion annually by 2025.

This year, expect these retailers to use connected devices to streamline in-store shopping and communicate with shoppers. As McKinsey have noted, a few examples of IoT include merchants using in-store devices to automatically connect to the customers, track real-time shopping behaviors, and send tailored offers to them.

EVANS DATA: Almost 29% of Chinese developers

are currently developing software for the Internet of Things (IoT) and 41% plan to within the next 12 months.

EVANS DATA: 27% of cloud developers working on Internet of Things development say that improving efficiency is the most compelling motivator for implementing Internet of Things to their organization.

MANUFACTURING. As IoT is foreseen to increase automation and job opportunities in manufacturing, the potential for cyber-physical systems to improve productivity in the production process and the supply

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chain is vast. Consider processes that govern themselves, where smart things can take corrective and preventive action to avoid damages and where individual parts are automatically replenished. This technology is already existing and could drive what some German industry leaders call the fourth industrial revolution—following the steam engine, the conveyor belt, and the first phase of IT and automation technology. Most companies think of physical flows—which in other words, is the flow of material components through the supply chain—as separate from information flows and then consider how and where to coordinate and synchronize them. After the fourth industrial revolution, there will no longer be a difference between information and materials, because products will be inextricably linked to "their" information. 1

airlines, hotels, resorts, cruise lines and rental car fleets. As with retail, data from these connections is helping businesses deliver more personalized campaigns and enhanced traveler experiences. In other words, the IoT is helping this highly competitive and schedule-driven industry turn information into action.3 MyMagic+, a reportedly $1 billion program of Disney for its DisneyWorld park in Orlando, Florida includes electronic wristbands that add customer conveniences — like making cash-free food purchases and pushing strollers through turnstiles without fumbling for tickets — while also collecting a ton of data to help Disney shape offerings.4

AUTOMOTIVE. The Internet of Things is already gaining significant traction in many areas of the automotive industry. It is helping optimize process efficiency, and actionable intelligence is driving new business model opportunities. Use of this technology is accelerating with mobile and cloud innovation, as well as advancements in Big Data and predictive analytics based on in-memory computing. It’s also becoming more affordable and practical as the size and price of sensors shrink. IoT is removing the physical barriers so the automotive industry can innovate faster with higher quality and safety, manufacture efficiently, and deliver an outstanding buying and owning experience – increasing customer loyalty. 5

In late 2011, the company announced plans to open a new software center in San Ramon, California, part of a four-year, $1 billion investment to install sensors and develop software systems to manage the jet engines, locomotives, power turbines, medical equipment, and other machines its customers run. This large stream of new data informs production, maintenance, and innovation at GE. In 2014, GE generated $1.3 billion in Predictivity revenue from new software and analytics offerings in the market, and that top-line contribution is expected to grow. CEO Jeffrey Immelt says its sales could reach $4 billion or $5 billion per year in the next few years. Immelt has become one of the most public evangelists for the power of the Industrial Internet of Things (IoT) to transform business. 2

Take Tesla motors for example, one of the first things you'll notice when you peek inside one of their S models is the huge display on the dashboard: It’s like having a fullsize iPad display in your car. That’s just the start of how electric carmaker Tesla is disrupting the automotive industry. It’s rolling out ideas like using software downloads to upgrade the features of its automobiles, including the ability for its cars to drive themselves. In fact, Tesla has been updating vehicles through software downloads since 2012.6

TRAVEL. Whether it’s enabling keyless entry to hotel rooms, monitoring flight availabilities and the airline engines, or helping tourists find their way around Universal Studios, the internet of things (IoT) has already created a lot of exciting opportunities for the travel and hospitality industry. Through connected smart devices, systems, processes and people in new ways, it is restructuring and improving the back-end operations of

Source: http://www.mckinsey.com

Source: www.tcs.com

Source: http://www.nytimes.com/2015/04/26/business/media/thomas-staggs-disneys-heir-apparently.html

Source: www.sap.com

Source: www.tcs.com

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SWOT ANALYSIS

WEARABLE TECHNOLOGY. Wearable devices, such as the Samsung Smart Watch, and a host of other smart devices by other companies, such as Apple, Fitbit, Google, and Adidas are just some of the many possible applications of wearable technology with the emergence of the Internet of Things.

Strengths â&#x20AC;˘ Cost Reduction: A very basic example of connected devices is their use at a factory floor where the production units are connected to the delivery and sales units. If a particular product of a brand is not faring well in the market, the sales counter machine can alert the production units to decrease or abruptly halt the production if need be. This way, devices which are connected can communicate to reduce costs significantly. â&#x20AC;˘ Environment Friendly: Connected devices can be modelled to bring down carbon emissions and hence help protect the environment. Smart cars, smart lights and smart homes limit energy usage and consequently, reduce emissions.

Other applications of wearable technologies include wearable cameras, smart clothing, wearable apps platforms, smart glasses, health and happiness wearables, activity trackers, 3D motion sensors, and smartphone compatible watches like the ones previously mentioned. In the past few years, many users often categorized these new devices as fun novelties and interesting gadgets. However, an increasing number of analysts consider wearable technologies to have more disruptive potential, to change existing industries, create new markets, and generate new jobs. In Figure 2, a range of wearables applications is illustrated.7

Fig. 1.2 - World of Wearable Technology Applications: Towards Function With Style Source: www.wearable-technologies.com

Source: www.europa.eu

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Fig. 1.3 - SWOT Analysis Matrix

• Innovation: Innovation has successfully steered the technology industry towards the present pinnacle. The era of connecting devices to realize a smart ecosystem enables untold possibilities (read opportunities!). Situations like these sprout innovation and paradigmshifting ideas. IoT is still in stages of infancy, but it is safe to say that great things can be expected from it in the near future. • Public Interest and Hype: Giants like Apple, Microsoft and Google are already in the race to make intelligent devices available to consumers. This ever increasing media hype and recurring headlines about IoT is just what the doctor ordered! IoT is being welcomed heartily and its acceptance in the future is bound to rise. • Ease of Use: The Internet of Things will be able to connect devices with each other enabling them to communicate. This reduces our work and improves the overall standard of living. So, we can hope to say goodbye to multiple remotes and switches soon.

• Data Challenges: Every year, we produce data in exobytes. This data needs to be stored and analyzed for obtaining information about certain parameters. When all devices are connected, the amount of data collected will increase manyfold. Collection, analysis and storage of all that data is an arduous task and we need better infrastructure to manage the avalanche of data headed our way. • Massive Investments: Companies wishing to become early movers in the IoT market have to invest a lot of money to make connected devices. Apart from the production costs, there is a huge cost attached to the Research and Development of the products as well. This high cost might intimidate new market entrants. Companies need to stay poised to reap the benefits of such investments over time. • No Road Map: IoT is still in an infant stage. There is no clear road map, implying that there is no definite direction in which the development is moving. In such a scenario, the technology moves forward with innovation as and when it happens. As potential customers, we might find 10 variants for 1 gadget or maybe none for another. This sort of need-driven development will continue until the dust settles and certain standards are established for development of the internet of things.

Weaknesses • Security: The most talked about drawback of connecting devices is their security and how it can be compromised by a small group of hackers. Recent activities of hackers trying to gain control over smart fridges is not doing any good to the reputation of IoT. However, there are attempts being made to revitalise security of such devices and to establish a common standard for the same.

Opportunities • Healthcare Applications: Paradigm-shifting to the field of personal healthcare is the agenda that is leading the

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revolution of connected devices. There are several opportunities for developers to innovate and make solutions to make our lives easier. Recent development of the Health Kit and Research Kit by Apple is just a step forward in the direction of improving healthcare. With so many ideas perking up every now and then and the state of current technology, anything is possible. As potential customers, this is a win-win situation for us. • Wearables: Smart watch, smart glass and smart clothes, all of them carry the ‘smart’ tag with them. Today, watches are able to record our daily activity, our workout routine and much more. Smart glasses are coming up to make everything around us interactive or into holograms. All this is leading us towards a time where everything we wear and hold can think for its own. • Infrastructure Management: The infrastructure management sector is another field that can make the most of IoT. Wearable devices like Google Glass and smart watches have already been deployed by off-shore drilling companies and construction companies. Microsoft’s Holo Lens promises to play a crucial role in the field of infrastructure. • Making computers more ubiquitous: Developers are aiming to integrate computers in our lives in a very fine, intricate way such that we don’t feel them as separate entities. The recent flood of smart wearables aims to realize the dream to make computing completely ubiquitous among us. • Exciting investment opportunities: IoT brings with it an array of potential investment opportunities. IoT has a huge upside potential for people looking to invest in chip making companies, solution making companies and more. It’s all uphill from here.

over-the-top hopes from IoT. These exaggerated expectations are a threat to IoT if the products fail to live up to the user expectations.

INDUSTRY APPLICATIONS Automotive: Connected Cars Connected cars ultimately leads to smarter transportation, from examining traffic movement, looking for parking spaces, or even monitoring transport vehicles, Internet of Things plays a large role for the future of the automotive industry. Connected cars, can monitor different factors that affect your car’s operation. Oil pressure, water temperature, tire pressure and the like, are all gathered and analyze by the cars computer to help you get informed on the next maintenance period for your car. Since it is equipped with internet connectivity, it can automatically booked you to a nearby or local maintenance shop. Your car can also conduct mobile calls, if you’re in an accident, it

BUSINESS AND INDUSTRY APPLICATIONS:

Threats • Vulnerability to hackers: When we think about hackers, we imagine really intelligent individuals working tirelessly on their Alienwares to bring down a website. Now, with connected devices in the picture, these hackers will be able to control your smart bulbs, garage, watches and even clothes! This open invitation to hackers to try to control every device around is a serious threat for IoT and it stands in the way of users shifting to connected devices. • Not Meeting People’s Expectations: If what was delivered did not live up to people’s expectations, making it an average product after all. IoT here has reached the peak of it hype. People have realistic and

THE CONNECTED CAR. Image: (c) www.startupbootcamp.org

Smart Grid. Image: (c) www.hitachi.com 8

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6 APRIL 2016 automatically alerts your insurance company and provide them your location to aid you with a towing service. Using sensor, your car can automatically adjust environment temperature to match your preferred setting. Having an advance navigation system, your car can provide you the best route to your destination, saving time , fuel cost and energy. With the advance security feature of your connected car, you can automatically start, lock and locate it, in just a push of a button on your mobile device. Being connected as well, provides you the flexibility of accessing your office email, phone contact and more with the built in laptop or tablet to sync your office to your car, while driving.

BUSINESS AND INDUSTRY APPLICATIONS:

CONNECTED MEDICAL DEVICES. Image: (c) www.shreeradheyenterprises.com

The connected car, will surely change the city living as we see it today. Improving traffic conditions, making transportation safer, and keeping the environment more cleaner, that is what Internet of Things can do to your car.

Energy: Smart Grid The Smart Grid â&#x20AC;&#x201C; a consumer driven, energy distribution system that regularly adjust to the needs of its customers, by providing the better amount of energy at the right time and at the best price. The Smart Grid system, adapts and fine-tunes the systems versus the requirement, through the use of sophisticated sensors and devices that are continuously assessing the state of the grid, the availability of power flowing in it, and the demand. These devices or components are also capable of gathering an enormous amount of information over time, which is useful in determining how to enhance the energy delivery to its clients.

HUMAN MACHINE INTERFACE. Image: (c) w3.siemens.com

This modern electricity grid as some are calling it, uses computer based system controls, as well as automation to increase efficiency of energy generation. Data statistics, such as available resources and consumer usage are inputted into the system to calculate for the gridâ&#x20AC;&#x2122;s energy generation. The Smart Grid utilizes other renewable energy sources such as solar and wind power whenever available and also maintains conventional sources, as backups in case these renewable energy sources are not available. Using Smart GridS capability to analyze data information thru the use of online algorithm, the cost to generate power can be lowered drastically. Online algorithms are used to predict availability of wind energy, since these are difficult to predict.

INTELLIGENT VENDING. Image: (c) www.intel.com

SMART HOME. Image: (c) smarthomeenergy.co.uk 9

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The Smart Grid, is another great application of the Internet of Things that will truly provide convenience and productivity to our way of life and even giving us a great way in helping the environment by utilizing renewable sources of energy.

cloud or an on-premise infrastructure to help in the operations and analysis of the manufacturing plants. More and more workers and operators in these manufacturing plants are expecting industrial HMI to function like their mobile devices in the way they interact with them. This mind set is pouring a big change in the perception of an industrial HMI and how it is expected to function.

Healthcare: Medical Devices

Internet of Things HMI solutions, improves productivity of the company and also offer line of sight into the manufacturing plant system, to control and maintain the machine. Offering visibility to the machine operators, by giving them alarms and visual indicators of a machineâ&#x20AC;&#x2122;s condition, thus providing continuous operation for whole manufacturing plant.

Another industry that uses the Internet of Things is in the area of healthcare. Consumer products for health monitoring are being developed, such as FitBit, Nike FuelBand or Withings which uses Bluetooth to communicate to nearby mobile phones, to monitor health conditions of an individual. Wearables external medical devices, such as insulin pumps, utilizes proprietary wireless protocol to communicate for security purposes. Internally embedded medical devices on the other hand, such as Pacemakers and other implanted medical devices uses either Bluetooth or proprietary wireless protocols to communicate wirelessly. The last category of the Networked Medical devices are the stationary medical devices, such as hospital-based chemotherapy dispensing stations or home care cardio-monitoring for bed-ridden patients. Stationary medical devices normally uses WIFI in hospitals and homes.

Retail: Intelligent Vending Intelligent vending provides a new aura in the retail business, with its touch-screen controls, video and audio advertisements, gesture-based interactions, and cashless payments, Internet of Things truly provides a high tech twist for this age-old business. This advance vending machines is also integrated to social media, providing advertisements and feedbacks to customers. Having its digital payment system in place, purchasing products and merchandise is now a hassle free experience. Transaction management can also be made thru your mobile device. Operation management and inventory management can also be done via cloud service remotely. Customer analytics is also integrated, providing crucial data of what are the fast moving items and which are not. These data are also analyze to provide the operator the items that are in demand on a certain period of the year. Being online, the intelligent vending machine automatically triggers the supplier if a certain item needs replenishment. Central pricing management also provides flexibility to the operator to adjust prices depending on the current exchange rate, thus providing more profit to the company.

Consumer products such as the Smart toothbrush, gathers brushing data habits of a user. These data information is transmitted to a mobile devices for analysis. The app can display real time analysis which enable users to evaluate their brushing. The users can have a record as well for a long term review, and provide inputs to what part of the users mouth/teeth requires more attention during brushing. The analysis can also be share to your dentist, giving dental professionals more insights on their patients condition. Thru the help of Internet of Things devices, healthcare has been advancing more and more through years. Transmitting data through these devices, collecting data and analyzing them contribute to the improvement of healthcare as a whole.

Smart Buildings/Smart Homes: Environmental Controls

Industrial: Human Machine Interface (HMI)

Today, Smart Homes are all furnished with appliances and things that are connected wirelessly. From environmental controls, motion sensors, door controls, energy management, lighting controls, window controls, security controls, remote controls and the like, all of these are

Human Machine Interface or HMI in the world of Internet of Things, gives a new dimension in the Industrial arena. New HMI solutions are pre-configured to send data to the

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Fig. 1.5 - The 9 Settings Where IoT Creates Value Source: McKinsey&Company. The Internet Of Things: Mapping The Value Beyond The Hype (McKinsey Global Institute, June 2015)

Internet of Things (IoT) started transforming the businesses, economies and society with the significant revenue impact it contributes. As Deloitte predicted last 2014, the IoT analytics market is primarily descriptive. However, over the next four years, its revenue tremendously grows over 3000%. The IoT hardware and connectivity grows at about 10-20% annually, while the apps, analytics and services are growing 40-50%.

Fig. 1.4 - Value Potential of the Internet of Things (IoT) Source: McKinsey&Company. The Internet Of Things: Mapping The Value Beyond The Hype (McKinsey Global Institute, June 2015)

made to make your life more comfortable and cost efficient. Environmental controls provides cost reduction on energy being used in your homes. Automatically adjusting room temperature and lighting intensity. Turning off lights in a room that is not used, with the aid of motion sensors and alternatively turning them on, once motion is detected. Windows or curtains are opened automatically during a certain period or during day time and closes at night, depending on your preferred setting. And the rest, are automated as well.

Based on McKinsey Global Institute researches, there are nine (9) settings that give us a cross-sector view of total potential impact that is translated into numbers on which in the near future will generate huge revenue. Using these settings will give a perspective on what particular sector IoT is greatly impactful. The research, accordingly, estimated that IoT has a total potential impact of $3.9 trillion to $11 trillion per year in 2025 (which is 11% of total World Bank projection $99.5 trillion in global GDP).

More and more appliances and things are being connected wirelessly, and this will change our way of life. From a simple home in the past, to todays advance homes, the Internet of Things will surely create a big impact on today’s business and in today’s home.

Based on Fig. 1.4, each segment has its allocation. For instance, the ‘home’ section being the smallest contributor, usually focuses on energy management including thermostats, smart appliances, self guided vacuum cleaners as well as security management. On the other hand, ‘industries and factories’ definitely covered the highest part. It encompasses the benefits in hospital, agricultural setting, as well as manufacturing.

FINANCIAL ANALYSIS With the application of the Internet of things in many diverse industries, one way to measure its worth is thru its finances and how it creates a real economic value.

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6 APRIL 2016 due to IoT, which gave a payback period in just a few months ($301K savings). Another clear industrial IoT is monitoring valves controlling gas flows to flare stocks, on which a refinery invested on an automatic sensor project for timely detection. With the assumption that the project cost is $3million annually for five months (same amount of their loss encountered), their estimated ROI is 271% for 20 years. With the above facts and figures, it shows that the IoT, in general scope, has a high ROI with less than a year payback period.

COSTS AND BENEFITS OF IOT There have been many studies on the cost and benefits of the Internet of Things and the use of RFID to track different products. However, it has been very difficult to calculate exactly its cost as different industries and products may adapt the technology in different ways. Of course, the Internet of Things is different from RFID but the cost-benefit analysis from the latter can be used as a reference in calculating the cost and benefits of the IoT. The following is a cost and benefit study on the adaptation of RFID used as a basis for studying the costs of moving towards the IoT technologies.

Fig. 1.6 - Potential Economic Impact of Factories Source: McKinsey&Company. The Internet Of Things: Mapping The Value Beyond The Hype (McKinsey Global Institute, June 2015)

Concentrating more in the section that generates the highest revenue, the manufacturing industry/factories have already begun to realize the payoff for the use of IoT. This basically used digitization of production processes, the ability to control all production tools to make the work more efficient and optimize the operations. This also includes inventory management and security.

Costs for Manufacturing Firms Agarwal identified the costs of adapting to RFID and the Internet of Things as follows: • The cost of the tag itself • Cost of applying and installing tags to products • Cost of purchasing and installing tag readers in factories and/or warehouses • Systems integration costs • Cost of training and re-organization. • Cost of implementing application solutions.

The below assumptions and numerous applications of IoT in factories, each has an accompanying potential financial gains, whether a cost savings or reduction. Industrial IoT is much more advanced primarily due to the connected sensors that are connected to a different variety of software platforms. One distinct IoT sensors is the steam trap savings, which monitors via wireless acoustic transmitters. This sensor enables to detect steam trap problems automatically and alert plant personnel to act on it. An example would be a corn milling plant that was experiencing a 15% annual steam trap failure, which creates a 38% steam loss. This problem has been resolved

For example, in 2009, the IDTechEx predicted that the average price per RFID tag by 2014 will be US$0.22. The cost for systems integration, supply chain applications, and data storage analytics were expected to cost 8 to 13 million US dollars for a manufacturer shipping 50 million cases a year and the cost of tags and readers was estimated to be between 5 to 10 million dollars.

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Beneﬁts of IoT While the cost of adapting the Internet of Things may rest solely on the manufacturers, reaping its benefits are distributed to companies, manufacturers and suppliers, retailers, consumers, and ultimately, society as a whole. Image: (c) www.actag.com

Benefits To Companies

the obsolete technologies may compensate for the cost of RFID. 9. The move to IoT technology can also be used as a marketing tool. Innovative companies experience rises in the price of their stocks and according to Jan Vink, director of BGN Selexyz Bookstores, “after getting the positive numbers of the marketing effects of their RFID deployment, there was no need for a further cost benefit analysis.”

1. Time savings is significant due to less material handling which results from faster inventory, receiving of goods, loading and unloading, and reduced human error. This will also apply especially in import and export businesses as customs clearances will be processed much faster. In a 2008 study by Strucker, Gille, and Faupel, 90% of the companies interviewed expected benefits by reducing manual data collection through the use of RFID. 2. The use of space in factories and warehouses can also be greatly reduced due to lesser buffers and reduction of the storage of products by using RFID. Safety in facilities can also be improved as lesser hazardous materials are needed to be stored. An estimated 5.7% improvement in retail was computed by Veeramani et al in 2008. 3. The elimination of false data which results in the difference between real stocks and assumed stocks is eliminated which results in increased inventory and shipping data accuracy. Langer estimated that after RFID was implemented in a logistics company, complaints fell by 54.3% with a decrease of 29.7% in its financial value. 4. Backlogs are also reduced because of improved information sharing. A beverage company simulation resulted in backlog reduction of 34% and 49% for the mottle and wholesaler, respectively. (Uckelmann et al. 2009) 5. Lead time reductions for unplanned orders have also been reduced. 6. There is also a significant reduction in administration, energy consumption, tool management, and shipment. After implementing RFID in a construction site, job cards were reduced by 87%. 7. By using RFID, stock rotation will become more efficient because of the accuracy of inventory. For example, monitoring the time sales of perishable goods can be dramatically increased. 8. Other types of technology such as barcode labels, printers, shipping documents, and readers will be made obsolete and replaced with RFID. Savings for

Benefits To Manufacturers and Suppliers 1. Companies can better track their raw materials, ongoing production inventory, assembly status, and completed products in one location even if the whole production process happens in different geographical locations. 2. The ability to uniquely identify products and parts can greatly improve quality control and trace errors have occurred. 3. Recycling of products is getting to be a very important consideration from designing industrial products to the construction of buildings. New laws, commercial opportunities, and marketing have contributed to recycling considerations in manufacturing and design. IoT can help automate recycling and monitor the life of each component. 4. Continuity of supply and production is ensured due to the transparency of information along the production line. 5. Penalties due to violations of laws may be avoided as compliance to legislation will be easier for manufacturing plants. 6. The timely placements of products and promotional items can increase sales by ensuring that the items are available during the time of its promotion or advertising campaign. According to Collins, an average increase in Proctor & Gamble sales was estimated due to timely product placements.

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Retailers Benefits

ETHICAL IMPLICATIONS

1. RFID and the IoT can make check-out payments simpler. An estimated 2.1% reduction has been observed in customers' waiting time in payment counters. 2. Since the inventory data will be improved by RFID, lower inventory and smaller stocks are needed in warehouses and outlets. 3. RFID will also help in minimizing out-of-stock items. Walmart says it achieved up to 30% reduction of outof-stock items when it adapted the RFID tags. 4. RFID can be used in after-sales services such as repair, warranty, and authentication of products.

In other countries especially in the US there are so many laws that can be applied and must be followed. Unfortunately, the Philippines does not have any firm law that will make us ethically responsible for the data we have and to others. Although there are guidelines like FIPP and controls like FTC but these are all recommendations and some may not be followed.

Fair Information Practice Principles (FIPPs) 1. There must be no personal data record-keeping systems whose very existence is secret. 2. There must be a way for a person to find out what information about the person is in a record and how it is used. 3. There must be a way for a person to prevent information about the person that was obtained for one purpose from being used or made available for other purposes without the person's consent. 4. There must be a way for a person to correct or amend a record of identifiable information about the person. 5. Any organization creating, maintaining, using, or disseminating records of identifiable personal data must assure the reliability of the data for their intended use and must take precautions to prevent misuses of the data.

Consumer Benefits 1. Consumers will greatly benefit from RFID as they can access information specific to a product. Checking for allergens, comparing prices, and ordering consumables will become easier. Using products can be made easier as on-line manuals can be accessed easier. 2. Consumers can actively participate in product testing, ratings, reports through RFID. Co-creation of products will also be enhanced. 3. RFID will make it easier for consumers to get automatic updates and repairs, receive dynamic safety warnings, and product recalls.

Ethically, as we are monitored voluntarily or not by using apps, door locks, medical devices, wearables, Mobile units and even internet advertisers can get data. We are interacting inside IoT but not everyone is enamored with the idea of evaluating the IoT against solely an ethical framework. Trying to find a set of common ethical points may be too difficult to accomplish due to the variety of stakeholders involved across not only business and industry, but also across nations. That’s why industries must be accountable of what they have and trustworthy for the society and every must also responsible for all the actions they execute at IoT.

Societal Benefits 1. Home automation through RFID and the IoT will greatly improve quality of life. Home appliances will become more convenient and enjoyable. 2. Security against terrorism and customs support are gaining importance in the use of IoT and RFID. 3. Through RFID and the Internet of Things, the use of existing infrastructure can be maximized by redirecting and managing traffic more efficiently. Technology can monitor passenger volume, origin, and destinations and adjust train frequency when and where it is necessary.

NATION-BUILDING IMPLICATIONS

According to Porter (2001, p. 71), “economic value is created when customers are willing to pay a price for a product or service that exceeds the cost of producing it”. Businesses would thus need the ability to get the information from their products to better serve their customers and RFID technology and the Internet of Things seems to have more benefits than the costs they incur.

Nation-building aims at the unification of the people within the state so that it remains politically stable and viable in the long run. Thru IOT a nation can so be advanced or it can be depleted in anticipated consequences. The impacts of this technology on society

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will be highly complex and likely unpredictable; however, some general points are that:

• A research team has squeezed 20 billion transistors onto a computer chip, greatly increasing computation power. • Educators in Mombasa are using cognitive, analytics and mobile technologies to keep more kids in school. (Raise resources and awareness for humanitarian causes) • Increasingly railroads are using smarter technology like analytics and social business to become more efficient, safer and more appealing to customers. (It can unite Services) • A leading cancer researcher plans to bring the fight to cancer, using big data and cognitive computing to help oncologists customize treatments. • Share an idea that could make a city smarter or see what other people think could improve urban life. (Safety and welfare) • Genomics and analytics help scientists use microbes to watch over our food supply. (Efforts and concerned organizations to promote public health) • Deliver a cloud-based analytics system to reduce energy and facility operating costs. • Interconnected systems can be established as a command center for disaster relief and rescue operations and other risk situations.

• Organizational and institutional innovation is key to the viability of the IoT, as it will change the ways we do things. • Problems could result from generation of large quantities of data that are not necessarily valuable or needed, and that can be misused in ways that lead to invalid inferences; but data generated in the course of everyday life and work will also present great opportunities, for example in the design of more efficient transport systems. • Public attitudes, opinions and behaviour will be critical if the public cares more about privacy, data protection, and other social issues of the IoT—as opposed to the potential benefits in terms of public safety, energy conservation, and lower costs. • Privacy and data protection will be tied to how people feel about giving away, trading, or enabling others to harvest information based on their behaviour. • The IoT could lead to increasingly large-scale, highly coupled technological systems that can remove human intervention in order to increase reliability, but that also increase the potential for societal vulnerability, as a result of hacking or major system crashes. • Whether the IoT will lead inevitably to a higher quality in the provision of many services is problematic. • There may be inequality in access to data of value to individuals and communities from the IoT, paralleling other digital divides across societies.

GROUP 1 MEMBERS TOGETHER WITH PROFESSOR GARY A. GREY (Front, L-R) Donnabelle Amgao and Armeda Casaol. (Back, LR) Jaime Hermogenes, Jesus De Vera, Christopher Sanchez, and Kent Kelly Miag-ao. 15

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Image: (c) clapway.com

by Juvel Cedo, Marie Kristine Crespo, Andrew De Leon, Jhoana Gay Pascua, Jenzel Marie Tolentino, and Edito Verba

TECHNOLOGY DESCRIPTION

The lateral controls focus on the steering. It keeps the vehicle in its chosen lane and on the road. Current technologies are Lane Departure Warning Systems (LDWS), and Lane Keeping Assist Systems (LKA).

Deﬁnition An autonomous car (also called, driverless car, self-driving car, or robotic car) is a vehicle that is capable of sensing its environment and navigating without human input. 8 It is fundamentally defined as a passenger vehicle that drives by itself. 9

• The purpose of LDWS is to avoid run-off-road and sideswipe crashes and to support the driver in lanekeeping. In order to do this, the vehicle must be able to sense the lane and road boundaries, and also where the vehicle is positioned in the lane. These tasks can be made possible through highly accurate GPS and digital maps, and image processing with monochrome video camera. • The LKA helps a driver by providing small amounts of actuation to steering to keep the driver in their lane. While driving on the highway, the amount of torque that is necessary to turn the wheel is a very small amount. Because of this, it makes it very easy for any

Features 10 There are various systems and sensors used to control the actions of the autonomous vehicles. The controlling methods used are broken down into lateral control and longitudinal control.

Source: https://en.wikipedia.org/wiki/Autonomous_car

Source: Autonomous Cars and Society by Alex Forrest, Mustafa Konca

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driver to override the assistance provided by the system if necessary. There are onboard sensors that analyze different factors, such as crosswinds, road surface geometry, detection of the current lane and curves. These sensors include radar, LIDAR (Light Detection and Ranging), ultrasonic range finders, and image processing with video cameras. • There is also Parallel Parking Assist systems which are currently available from automobile manufacturers for public use. The first system was introduced by Toyota in 2003. This incorporates the rearview camera to help with parallel parking assist. The user pulls past the spot they wish to park in, engages reverse, and then using the dashboard screen which displays what the rearview camera can see the driver moves a box over the spot they wish to park in. After making confirmations, the driver must control the braking and acceleration, but the vehicle will do all of the steering to back into the spot successfully. The user must then engage the drive gear again to pull forward and finish the parallel park.

return to the set distance. Lidar-based systems use laser technology to find the range between vehicles. This creates a detailed 360-degree map of the car’s surroundings as it moves. There is also a ConnectivityBased Solutions wherein wireless technologies are used to communicate in real time from vehicle to vehicle (V2V) and from vehicle to infrastructure (V2I), and vice versa. • Pre-crash brake assist uses ACC to detect possible collisions by calculating the speed at which a driver is closing in on an oncoming object. If the rate is high enough, the system will pre-arm the brakes so optimum braking can be achieved. This helps to reduce stopping distance and also speed of impact if it were to occur.

Longitudinal control encompasses the forward and reverse directions of the vehicle. It has applications to control the speed of the vehicle and assist the driver with forward and reverse driving tasks. These applications include rear sensing to assist with parking, Adaptive Cruise Control (ACC), and pre-crash break assist.

The desire to go where we want whenever we want has been a powerful market force for centuries. But mobility is increasingly expensive and inefficient.

THE DRIVING FORCES11 High Cost of Mobility

• Cost of vehicle ownership. The average price of a car is $21,000. This runs an average of 15,000 miles per year to more than 40,000 miles over five years. This sits unused on average, almost 22 hours out of every day. • High costs are also spent in building and maintaining roads. The U.S. Department of Transportation (USDOT) estimates that new construction of four-lane highways in an urban area costs between $8 million and $12 million per mile. Even resurfacing that road, at an estimated $1.25 million per mile, can be daunting for cash-strapped governments. • The average American commuter now spends 250 hours a year behind the wheel of a vehicle. Whether the value of that time is measured in lost productivity, lost time pursuing other interests, or lost serenity, the cost is high. • Those commuters inch along during rush hour traffic. They drive in circles around city streets looking for parking spaces; and, according to a report published by the MIT Media Lab, “In congested urban areas, about 40 percent of total gasoline use is in cars looking for parking.”

• Examples of rear-sensing systems/applications currently available are ultrasonic range finders embedded in the rear bumper of the car that give the driver a changing audible sound as the distance decreases, rear facing video cameras that display what is seen from the rear of the vehicle when the driver shifts into reverse, and the use of radar in the front and rear of the car to sense objects out of the driver’s view. As the driver approaches the objects, the car assists in braking to avoid making contact with the object. • ACC is used to aid the driver in driving by controlling the speed at which the vehicle moves relative to the vehicles in front of it. Different sensors such as radar and LIDAR can be used to provide an ACC system to the driver. The radar is used to find the range between the vehicle in front of the driver and it also calculates the rate at which the vehicle ahead is approaching or moving away. Using this calculation, the system will adjust the speed of the vehicle to maintain a set distance from the vehicle ahead. If a different vehicle moves into the lane, the ACC will adjust the speed to

Source: Self-driving Cars: The next revolution by KPMG and CAR (Center for Automotive Research)

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Safety and the Human Toll • In 2010, there were approximately six million vehicle crashes leading to 32,788 traffic deaths, or approximately 15 deaths per 100,000 people. Vehicle crashes are the leading cause of death for Americans aged 4 - 34. And of the 6 million crashes, 93 percent are attributable to human error. • More than 2.3 million adult drivers and passengers were treated in U.S. emergency rooms in 2009. According to research from the American Automobile Association (AAA), traffic crashes cost Americans $299.5 billion annually. • The pursuit of improved vehicle safety has spurred the National Highway Traffic Safety Administration (NHTSA) to focus attention on self-driving vehicles. As NHTSA’s Associate Administrator for Vehicle Safety, John Maddox, explained in early 2012, the goal is not merely to make self-driving vehicles as “safe” as human drivers, who, as the evidence shows, are not very safe at all. The goal is to develop “crash-less” cars.

Fig. 2.1. Driving Demographics Source: www.kpmg.com

boomers are increasingly distracted by cell phones and other gadgets.

Driving Demographics • Younger generations, the ones who grew up with game consoles and smart phones, are not so in love with cars. They live perpetually connected lives, and while they may have the same desire for mobility on demand, some see the act of driving as a distraction from texting, not the other way around. Their antipathy towards driving may be a good thing, given these statistics: Distractions account for 18 percent of crashes with injuries, and 11 percent of drivers under age 20 involved in crashes with fatalities were reported to have been distracted. • Members of the “Gen Now” are not that interested in getting their driver’s license. In 1978, nearly half of all 16-year-olds and 75 percent of all 17-year-olds had licenses; by 2008, those numbers had dropped to 31 percent and 49 percent, respectively. Together, the “Gen Now” and “Digital Natives” comprise 133 million current and future drivers, or more than 43 percent of the U.S. population. • Older adults, the 47 million Americans aged 66 and over, face different mobility challenges. While they still cherish their autonomy, they are prone to develop agerelated impairments to their driving ability. Even aging

Running Out of Space • The United Nations reports that 82.1 percent of Americans lived in urban areas in 2010. This is up from 79.1 percent in 2000, meaning that 14.1 percent more Americans lived in urban areas in 2010 compared to 2000. • By 2020, the UN estimates that 84.4 percent of Americans will live in urban areas. Over the past 50 years, increased population density in the United States coincided with an increase in household wealth and growth in the number of multi-car families. From 1960 to 2010, the number of registered vehicles in the United States tripled, from 74.4 million in 1960 (one car for every 2.4 people) to 250.2 million registered vehicles in 2010 (one for every 1.2 people).

THE KEY PLAYERS AND THEIR EFFORTS12 • Google Driverless Car Project, United States. Headed by Chris Urmson, this project now operates more than 20 autonomous vehicles which accumulate about

Source: http://www.driverless-future.com/

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10,000km of urban autonomous driving per week in Mountain View (as of 5/2015). The project began in 2009 under the direction of Darpa Grand Challenge winner, Sebastian Thrun. Another key member of the project is Anthony Levandowski, who has built a selfdriving motorcycle. • GM-Carnegie Mellon Autonomous Driving Collaborative Research Lab. Headed by Raj Rajkumar who won the 2007 Urban Driving Grand Challenge with the ‘Boss’ autonomous car based on a modified Chevy Tahoe. The collaborative research lab was established in 2008. • Uber Advanced Technologies Center. Located in Pittsburgh, near the Carnegie Mellon University Campus, this center focuses on research in the areas of autonomous vehicles, vehicle safety technologies and mapping. This includes a collaboration with CMU’s National Robotics Engineering Center (NREC). • University of Berlin, Germany. The Autonomous car team is headed by Raúl Rojas. The team has sent a prototype to the 2007 Urban Grand Challenge (where it reached the semi-finals) and currently tests the driverless vehicle public on roads in Germany (it has obtained an official test license). The team has developed an autonomous car taxi service and also has demonstrated an early brain-computer interface for steering a car. • Technical University of Braunschweig, Germany. Participated in Darpa Urban Challenge. Under the direction of Markus Maurer, has successfully operated an autonomous Volkswagen Passat in the city of Braunschweig in 2010 (Project: Stadpilot). • Karlsruhe Institute of Technology, Germany. Participated in Urban Challenge 2005 and 2007. Headed by Christoph Stiller. Cooperated with Daimler in 2013 to have a Mercedes drive autonomously more than 100km through Southern Germany using only close-to-market sensors (no LIDAR). Also involved in localization for autonomous railways. A spinoff (Atlatec) focuses on vision-based 3D mapping and mapbased localization. • Universität der Bundeswehr, Munich, Germany. Develops MuCAR-3, a modified Volkswagen Tourag. Headed by Hans-Joachim Wünsche. Repeated participation in the European Land Robot Trials. Focus on expectation-based perception (4D, Saccadic vision) and off-road navigation and driving. • VisLab, University of Parma, Italy. VisLab is a spin-off of the University of Parma headed by Alberto Broggi and has been involved in automated vehicles research for more than 15 years. Instead of using LIDAR sensors,

•

his approach is based on computer vision. In July 2013 his BRAiVE prototype successfully navigated rural, urban and freeway traffic in Parma, Italy. In 2010 his team completed a 13000 km journey with two autonomous vehicles from Italy to China. Supplied vision technology to Oshkosh automated vehicle that participated in the Grand Challenge. Oxford Mobile Robotics Group, UK. Headed by Pau Newmann, the group develops the Wildcat autonomous vehicle. Key research areas are large scale navigation and scene understanding, going far beyond traditional algorithms for simultaneous localization and mapping (SLAM). The group is also involved in the Europa project to build an autonomous robotic pedestrian assistant. INRIA IMARA, Paris, France. French research group. Key projects: Cybercar and Cybercars2. Currently involved inLaRA project, which looks at intelligent transport systems. Easymile, France. Joint venture between a Ligier Group, a vehicle manufacturer, and Robosoft, a robotics software company. Their main product is a driverless shuttle, the EZ-10, which is tested in several European cities as part of the Citymobil2 project. NavyaTechnology, France. Autonomous solution provider (Formerly: Induct). Offers a driverless shuttle called ‘Navya’ Currently trialed in Greenwich, UK. Griffth University, Intelligent Control Systems Lab, Australia. This lab is headed by Ljubo Vlacic. Research in cooperative driverless vehicles and an autonomous research platform. Singapore-MIT-Alliance for Research and Technology, Singapore. Aims to develop new paradigms for urban mobility. The future urban mobility group experiments with autonomous golf carts to improve last mile transportation and builds simulation models for predicting mobility demands in transportation networks. HiTech Robotic Systemz, India. The company has presented a driverless shuttle, the Novus Drive. It is targeted at university campuses and similar locations. Electronics and Telecommunications Research Institute (ETRI), Korea. The institute works on various aspects of robot/cognitive convergence, including navigation, 3D depth sensing and is working on an autonomous vehicle shuttle for outdoor environments (ESTRO). RobotTaxi, Japan. A joint venture of ZMP and DeNA which aims to develop an autonomous taxi service. RobotTaxi wants to have the first autonomous taxis available for the Tokyo Olympics in 2020.

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Image: (c) www.nature.com • Autonomous car research in China. China Daily has reported highway trials auf driverless car prototypes involving the Military Transportation University (Tianjin) (120 km highway drive in 2012) and the National University of Defence (Bejing) (286 km highway drive in 2011). An article claims that the National University of Defense plans to cooperate with China’s First Auto Works to bring the technology into commercial vehicles. The National Natural Science Foundation of China plans a longer 2400km drive from Beijing to Shenzhen in 2015. • Yutong Bus Company, China. Develops a self-driving city bus. In September 2015 their prototype autonomous bus completed a 32km trip in regular traffic on an intercity road, including lane changes, over- taking etc. • Autonomous Solutions, Inc (ASI), USA. Offers a vehicle automation kit which can be used to convert traditional vehicles for autonomous operation. ASI has equipped many types of vehicles including mining trucks for autonomous operation.

Potential Advantages[13 ][14][15] • Crash Elimination. Traffic collisions caused by human driver errors such as reaction time, tail gating, rubbernecking and other forms of distracted or aggressive/high-speed driving will be eliminated. Autonomous vehicles will be able to drive themselves precisely because they are connected to the outside world via sensors and V2X (vehicle-to-external environment) communications. • Travel Time Dependability. Anticipated travel time is the most useful information to support trip decisions and assess the operational status of a transportation network, and convergence provides the opportunity to eliminate, or at least substantially reduce, uncertainty in travel times. With the surface transportation network composed of self-driving vehicles linked electronically and via communications, the intelligent transportation system of the future will be able to provide each vehicle with a reliable and predictable path from origin to destination. This will virtually eliminate the need to

Source: https://en.wikipedia.org/wiki/Autonomous_car

Source: Self-driving Cars: The next revolution by KPMG and CAR (Center for Automotive Research)

Source: http://www.autoinsurancecenter.com/top-20-pros-and-cons-associated-with-self-driving-cars.htm

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6 APRIL 2016 • Removal of constraints on occupants' state. In an autonomous car, it would not matter if the occupants were underage, overage, unlicensed, PWD, distracted, or intoxicated. • Reduction in the need for traffic police and premium on vehicle insurance. Police officer focus could be shifted from writing traffic tickets and handling accidents to managing other, more serious crimes. • Reduced need for new infrastructure. It will transform not only future vehicles, but also the road and highway systems that support them. Today’s roads are designed for human drivers - who are often inexperienced, distracted, or impaired. Thus, today’s roadways and supporting infrastructure must accommodate for the imprecise and often-unpredictable movement patterns of human-driven vehicles with extra-wide lanes, guardrails, stop signs, wide shoulders, rumble strips and other features not required for self-driving, crashless vehicles. Without those accommodations, the countries could significantly reduce billions that they spend annually on roads, highways, bridges, and other infrastructure. The convergence of sensor-based safety systems and connected vehicle technology could also assist transportation agencies with asset management and reduce maintenance costs. Vehicles could report road or weather conditions back to transportation agencies, which could then rapidly address issues such as road deterioration or icy conditions. Additionally, autonomous vehicle traffic could automatically be rerouted around problem areas, if necessary, while maintenance crews address the problem. • Reduction in car theft, due to the vehicle's increased awareness. • Less parking structures would be required and parking headaches would be eliminated, since the car could actually drop you off and locate a parking space by itself.

allocate extra time for trips to avoid non-recurrent congestion and traffic incidents, thus allowing for more productive time and more efficient freight movement, as well. • Increased roadway capacity and reduced traffic congestion. Self-driving cars in large number participate in a behavior known as platooning, which would significantly improve traffic conditions and congestion. Autonomous cars communicate with one another, helping to identify traffic problems or road risks early on. Self-driving vehicles also will adhere to traffic rules and regulations, although those rules and regulations may be quite different than the ones in effect today. This could very well revolutionize traffic management. • Productivity Improvements. Due to the relief of vehicle occupants from driving and navigation chores, there will be cost-savings associated with time. When a computer takes over the driving responsibilities, drivers can use that time to do other things, like catch up on reading or chat with other passengers, all without having to worry too much about road safety. • Improved energy efficiency. A transportation system composed of self-driving vehicles would decrease energy consumption in at least three primary ways: more efficient driving; lighter, more fuel-efficient vehicles; and efficient infrastructure. The energy policy and geopolitical implications could be profound. • New models for vehicle ownership. Self-driving vehicles could contribute to a significant redefinition of vehicle ownership and expand opportunities for vehicle sharing. If vehicles can drive themselves, they can be summoned when needed and returned to other duty when the trip is over. Thus, travelers would no longer need to own their own vehicles and could instead purchase mobility services on demand. This also reduces total number of cars. • Potential new business models. In today’s consumerdriven technology world, smart phone and tablet makers turn out new models every year (at least) to feed their tech-hungry consumers with the “latest” and greatest. Companies are always interested in new product development and taking the industry forward by a step, as indicated by the seven companies who requested permits for self-driving car development in California alone.

Potential Obstacles[16][17 ][18] • Liability placed on manufacturer of device and/or software driving the vehicle. Self-driving car doesn't completely eliminate the likelihood of a car accident. In fact, there's no legal precedent for how a case would be handled. The difficult question of who holds

Source: https://en.wikipedia.org/wiki/Autonomous_car

Source: Self-driving Cars: The next revolution by KPMG and CAR (Center for Automotive Research)

Source: http://www.autoinsurancecenter.com/top-20-pros-and-cons-associated-with-self-driving-cars.htm

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6 APRIL 2016 • Self-driving cars could potentially be loaded with explosives and used as bombs. • Ethical problems analogous to the trolley problem arise in situations where an autonomous car's software is forced during an unavoidable crash to choose between multiple harmful courses of action. • Susceptibility of the car's navigation system to different types of weather. (As of 2014 Google's prototype has not driven in snow or heavy rain.) The cars are not able to operate at a high level of safety in all weather conditions. A heavy rain can do serious damage to the laser sensor mounted on the car's roof, calling into question what role the driver might have to play in the event the technology fails. • Current police and other pedestrian gestures and nonverbal cues are not adapted to autonomous driving. • Current road infrastructure may need changes for autonomous cars to function optimally. Some examples include traffic and street light upgrades that communicate with autonomous vehicles. • The reliance on technology could mean that over time, drivers are no longer equipped with the skills to operate cars. In the event of a technology glitch or recall, drivers might be helpless to get around, having been "out of practice" in the driving world for some time. • The gasoline industry is likely to suffer because, taking the note of "new and improved" it's likely that the selfdriving cars would be electric.

responsibility in a car accident - the driver, the car manufacturer, or the software developer? • Resistance by individuals to forfeit control of their cars. Many individuals are nervous about handing over all the power to a computer, which could malfunction and put the driver in a more dangerous situation than if the driver were manning the vehicle himself or herself. • Software reliability. A car's computer could potentially be compromised, as could a communication system between cars by disrupting camera sensors, GPS jammers/spoofing. The success of self-driving cars currently relies on accurate mapping systems through GPS. GPS devices are not always accurate. It requires updating as often as necessary. • The cost of implementing the new technology could be way out of reach for most Americans. Currently, the engineering, power and computer requirements, software, and sensors add up to more than $100,000. • Autonomous cars need to be adopted widely in order to achieve desired results such as savings in terms of cost, time, and lives. • Implementation of legal framework and establishment of government regulations for self-driving cars. • Loss of driving-related jobs. Even though there are concerns about the adequate nature of public transportation, self-driving cars would eliminate many jobs in the transportation sector, especially when it comes to freight transportation and taxi drivers. Also, driving school would lose money and go out of business because there would be less of a need to educate people how to drive. These could have a negative impact on the unemployment rate and the economy. This will cause resistance from professional drivers and unions who perceive job losses. • Data Challenges. • Data Security. Numerous security threats will arise once personal mobility is dominated by self-driving vehicles. Unauthorized parties, hackers, or even terrorists could capture data, alter records, instigate attacks on systems, compromise driver privacy by tracking individual vehicles, or identify residences. They could provide bogus information to drivers, masquerade as a different vehicle, or use denial-ofservice attacks to bring down the network. • Personal Privacy. Even now, with pervasive connectivity in and outside of our vehicles, we are finding it increasingly difficult to preserve our privacy. As the use of autonomous and connected vehicle solutions (V2X) expands, maintaining individual privacy within the transportation system may become even more arduous.

SWOT ANALYSIS Strengths • AV has sensors and V2X communication system which eliminates crash and traffic collision, give predictable travel time, increase roadway capacity, and reduce traffic congestion. • Passengers can do other chores while on the road. • Fuel-efficient. • The AV can park on its own thus eliminating the time for the owner to look for available parking slot.

Weaknesses • Software reliability. The car's computer, communication system, and sensors could potentially be compromised. • The mapping system requires frequent updating. • The computer requirements, software, and sensors are expensive.

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• The cars are not able to operate at a high level of safety in all weather conditions. • AV cannot understand police and other pedestrians' gestures and non-verbal cues.

The retail giant has taken the next step in its ambition to deliver packages via drone within 30 minutes by setting out in greater detail than ever before its vision for the future of robotic flight. It envisages that within the next 10 years hundreds of thousands of small drones – not all of them Amazon’s or devoted to delivery – will be tearing across the skies every day largely under their own automated control.

Opportunities • AV ownership can be shared. • Potential new business models. • Occupants' state (underage, intoxicated, preoccupied, unlicensed) will be disregarded. • The need of traffic law enforcers, premium on vehicle insurance, and infrastructure will be reduced. • AV could report road conditions to transportation agencies for immediate action.

Threats Image: (c) www.dhl.com

• There is no legal provision on who would be liable in case of car accident. • Resistance of individuals to accept the use of AV. • Autonomous cars need to be adopted widely in order to achieve desired results. • Loss of driving-related jobs. • Unauthorized parties, hackers, or even terrorists could capture data, alter records, instigate attacks on systems, track individual vehicles, or identify residences. • Terrorists may use AVs in crime/terrorist attacks. • Current road infrastructure may need changes (such as street light upgrade) for autonomous cars to function optimally. • The gasoline industry is likely to suffer if self-driving cars would be electric.

DHL in a prime spot to innovate the future of self-driving vehicles in logistics DHL, the world’s leading logistics company, has today dispersed the new trend report ‘SelfDriving Vehicles in Logistics’, emphasizing the key elements and considerable potential of autonomous technologies in the logistic industry. As a first step in the self-driving journey, the trend report includes various best-practice applications from different industries and also examines tangible use cases of selfdriving vehicles across the entire logistics value chain. Applications for self-driving vehicles that are discussed in the report include:

INDUSTRY APPLICATIONS

• Autonomous transport and assisted picking in warehouses • Autonomous outdoor logistics like yard, harbor and airport operations • Assisted highway trucking and convoying in line-haul transportation • Last-mile delivery

Business Application Amazon is suggesting that a portion of airspace above the world’s cities and suburbs should be set aside for the deployment of high-speed aerial drones capable of flying robotically with virtually no human interference.

Education At MIT, federal safety chief discusses future of automated driving. “The Present and Future of Automated Driving.” Discussions of self-driving vehicles are often accompanied by highly confident predictions: Visions of the future include whole networks of automated cars seamlessly

Image: (c) www.amazon.com

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zipping around metropolitan areas, safely and efficiently, with every person inside them a passive, hands-off passenger.

assist and others form the cornerstone and have long proven themselves in volume production. In the USA, in Nevada and Florida, Audi was the first and is still the only carmaker to carry out test drives under real-world conditions – the potential of the technology has been confirmed multiple times.

The U.S. government’s chief auto safety official offered a more restrained view, suggesting that technology could provide important new safeguards for cars, while observing that it is too soon to say precisely what form vehicular automation will eventually take.

Audi Engineers program Sonoma Raceway’s general specifications its width and elevation changes into the autonomous RS7 but it’s up to the car known as Robby (short for “robot”) to learn how to drive it in the fastest and most efficient manner.

One of the keys to automated safety, he stressed, was connectivity: making sure vehicles are communicating with each other on the road.

Robby comprises some of the most sophisticated autonomous-driving equipment, cameras, laser scanners, accelerometers, precision GPS receivers, microprocessors on the planet.

“Connected vehicles give you further levels of safety that you can’t get with independent autonomous vehicles,” Rosekind said. Such vehicle-to-vehicle communication, he explained, could help reduce accidents at intersections and in all kinds of scenarios where driver vision is normally limited.

Military Service The RQ-3 DarkStar was designed as a "high-altitude endurance UAV", and incorporated stealth aircraft technology to make it difficult to detect, which allowed it to operate within heavily defended airspace, unlike the Northrop Grumman RQ-4 Global Hawk, which is unable to operate except under conditions of air supremacy. The DarkStar was fully autonomous: it could take off, fly to its target, operate its sensors, transmit information, return and land without human intervention. Human operators, however, could change the DarkStar's flight plan and sensor orientation through radio or satellite relay. The RQ-3 carried either an optical sensor or radar, and could send digital information to a satellite while still in flight. It used a single air-breathing jet engine of unknown type for propulsion.

Automotive It is not at all unusual to see words like “revolutionary” or “groundbreaking” being used in the automotive industry. But rarely do these words fit so aptly as when they are used to describe piloted driving. Audi has set out to fundamentally change the way we operate our cars. And to improve it. The efforts focus on the intelligence of the technology and the decisions of the driver. Audi is operating intensively to enable the vision of piloted driving to become reality. The company has been performing tests for a full 15 years at various locations, including on the race track, the toughest test laboratory. Assistance systems like adaptive cruise control, active lane

Skunk Works is an official alias for Lockheed Martin's Advanced Development Programs (ADP), formerly named Lockheed Advanced Development Projects. Skunk Works is responsible for a number of famous aircraft designs, including the U-2, the Lockheed SR-71 Blackbird, the Lockheed F-117 Nighthawk, and the Lockheed Martin F-22 Raptor. Presently, its main project is the Lockheed Martin F-35 Lightning II, which will be used in the air forces of several countries. Production is estimated to last for up to four decades. The name "Skunk Works" was acquired from the moonshine factory in the comic strip. The description "skunk works" or "skunkworks" is generally used in business, engineering, and technical Image: (c) www.forbes.com

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fields to describe a group within an organization given a high degree of autonomy and unhampered by bureaucracy, tasked with working on advanced or secret projects.

The entire mobility system (Transformational Mobility System) can be summarized through the integration of these five basic elements: 1. Self-driving vehicles – transport vehicle sans human control 2. Mobility Internet – connectivity, real-time coordination 3. Shared vehicles systems – can be used by several people throughout the day 4. Specific-purpose vehicle designs – tailored and customized to be cost-efficient, energy-efficient 5. Advanced Propulsion systems – alternative energy and power systems

The X-47B is an unmanned combat air system carrier (UCAS) being developed by Northrop Grumman for the US Navy (USN). The strike fighter size unmanned aircraft is currently in its demonstration phase. The unmanned aircraft was first developed as part of the X-47 programme. Air worthiness of the X-47B unmanned combat air system demonstrator was developed at an estimated cost of $813m. The aircraft performed a successful initial test flight at Patuxent River, Maryland, in July 2012. The X-47B is expected to enter active naval service by 2019.

In order to validate the potential advantages/benefits of a shared driverless fleet, a case analysis was done in Ann Arbor, Michigan, as well as in Manhattan, New York. (Lawrence, Jordan & Scarborough, 2013) In the Ann Arbor study, travel patterns, cost of owning a personal, along with the specific demographics were taken into account to determine whether the use of such fleet can be more convenient and less expensive for an individual driverresident of the area on a daily basis. In Manhattan, however, where the current system of public transportation is highly developed, daily trip data from the yellow taxicabs where gathered and used in order to evaluate if there would be greater consumer value when a shared driverless fleet is utilized instead of the famous yellow taxicabs.

Mission Environments Whether the unmanned K-MAX is fighting fires, transporting supplies to the U.S. military, or supporting humanitarian aid efforts, it delivers unmatched lift capability in extreme conditions. From the mountainous Alps to the Persian Gulf, the rugged system can lift and deliver a full 6,000 lbs. of cargo at sea level and more than 4,000 lbs. at a 15,000 ft. density altitude.

COSTS AND BENEFITS ANALYSIS No company has yet to fully incorporate the use of autonomous vehicles / self-driving cars (SDC) as part of their daily operations. Thus, no reported significant financial data can be gathered to date. Based on research, however, studies have been made as to the effect of utilizing SDC’s within a specified region/location.

The Ann Arbor Case Study

The Earth Institute, Columbia University studied various cases and generalized models using geographical regions, cost and performance to eventually come to the conclusion that through the use of autonomous vehicles and shared services systems (shared, driverless vehicle fleet): Fig. 2.2. Source: http://sustainablemobility.ei.columbia.edu

(i) Improved mobility experience at lower cost can be achieved. (ii) Improved roadway safety can lead to substantial sustainable benefits within a community.

From the data regarding the use of personal vehicles in Ann Arbor, results show that the daily utilization of personal vehicles was only 5%, which means that at any given day, a personal car will only be used at an average

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of 67 minutes. Resulting average cost is $0.59 per trip per mile. With the use of shared driverless fleet, an optimum 18,000 vehicles can result to a daily utilization rate of 74%, with an average cost of $.41 per trip per mile. In general, the study revealed the following opportunities in using a shared driverless vehicle fleet: Fig. 2.3. Source: http://sustainablemobility.ei.columbia.edu

• Enhanced Value – improvement by more than a factor of 10 compared to personal vehicles • Enhanced Mobility – no cost for parking • Enhanced Sustainability – increased safety, less energy, emissions and congestion, better land use

Fig. 2.4. Estimated Cost of Hardware of a Self-Driving Car (SDC) Fig. 2.3. Source: http://sustainablemobility.ei.columbia.edu

Estimates and projections place the full commercialization of Self-Driving Cars (SDC) to be somewhere within the next 10-15 years. According to an in-depth report by Business Insider (BI) Intelligence, 10 million self-driving cars will be on the road by 2020.

The Manhattan Yellow Taxi Case Study The yellow taxicab fleet in Manhattan already consists of more than 13,000 vehicles. Data gathered and analyzed is provided in the summary above.

The report concludes that utilizing a 9,000-vehicle fleet of shared driverless vehicles would cost only an average of $1.00 per trip compared to $7.80 for the current taxi system.

Estimated Current Price per Unit of SelfDriving Car (SDC) The next table summarizes the additional cost per unit of vehicle for the conversion to a self-driving car, which is estimated to be $14,500. This is based on cost per hardware in self-driving car provided by www.wired.com.

Fig. 2.5. Estimated Global Installed Base of Cars with Self-Driving Features

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ETHICAL IMPLICATIONS 19

biggest ethical question is how quickly we move. We have a technology that potentially could save a lot of people, but is going to be imperfect and is going to kill.”

With the coming of autonomous vehicles just peeking over the horizon, ethical questions are bound to emerge. The study “Autonomous Vehicles Need Experimental Ethics: Are We Ready for Utilitarian Cars” illustrates a situation wherein an accident is unavoidable. The autonomous vehicle may swerve to avoid harming several pedestrians while sacrificing a lone passer-by. There is also the choice of sacrificing the passengers inside the vehicles in order to save the pedestrians. This scenario can branch off into other situations and other permutations. What if the choice is between an elderly and a child? Will the vehicle prioritize the child since the elderly has assumingly lived a long life already? Who gets to decide on the rules? Another question will be for the buyers. Are consumers ready to purchase technology that can potentially choose to harm them in order to minimize the cost of life? Another question will be who should be legally responsible for accidents caused by autonomous vehicles. Is it the programmer? The company? The vehicle owner?

NATION-BUILDING IMPLICATIONS20 Autonomous cars offers nation building implications that can change the way we travel. This new technology has the potential to impact personal travel across a wide array safety, congestion, and travel behavior.

Safety Autonomous cars have the potential to dramatically reduce crashes. More than 40 percent of fatal crashes involve alcohol, distraction, drug involvement and /or fatigue. Self- driven cars should not fall prey to human failings, suggesting the potential for at least a 40 percent fatal crash rate reduction, everything else constant (such as the levels of long-distance, night-time and poorweather driving). Such reductions do not reflect crashes due to speeding, aggressive driving, over-compensation, inexperience, slow reaction times, inattention and various other driver shortcomings. Driver error is believed to be the main reason behind over 90 percent of all crashes. Even when the vehicle or roadway environment is the critical reason behind a crash, human factors such as inattention, distraction, or speeding regularly contribute to the crash occurrence and/or injury severity. It is crucial that autonomous cars’ recognize the objects (with the help of drone) in their path so they may act according so it can lessen fatal crashes and can therefore contribute in nation building.

On the other hand, points are also being raised regarding the validity and relevance of these questions. In the article “The Myth of Autonomous Vehicles’ New Craze: Ethical Algorithms,” writer Brett Rose mentions that autonomous vehicles are safer than human driven cars and that, statistically, the likelihood of an owner’s autonomous car facing a tragic situation is close to zero. Should there be a chance that such occurrence will take place, a human driver may not even have the luxury of time to decide and make an ethical decision. Taking it even further, it can be said that there are no ethical solutions to these situations as each scenario is open to debate and remains inconclusive even until now.

Congestion and Traﬃc Operations

Forming ethical resolutions on autonomous vehicles is a major challenge because even in day-to-day human ethics mankind still has areas that are yet to be defined. It is a tall order to come up with technology that is not only fully ethically grounded but also built to initiate its own moral progress; while, as human beings, we still have our own ethical issues to settle. However, there is a need to start somewhere as the technology is becoming more viable. Autonomous car expert Bryant Walker-Smith mentioned that it may be considerably unethical to introduce autonomous technology too slowly given the number of accidents attributed to human error. He also said, “The

Aside from safety improvements, researchers are also developing ways for autonomous cars technology to reduce congestion and fuel consumption. An example would be an autonomous cars sense and possibly anticipate lead vehicles’ braking and acceleration decisions. Such technology allows for smoother braking and fine speed adjustments of following vehicles, leading to fuel savings and reductions in traffic-destabilizing shockwave propagation. Autonomous cars may also use existing lanes and intersections more efficiently through shorter headways, coordinated platoons, and more

Source: http://techcrunch.com/2015/11/23/the-myth-of-autonomous-vehicles-new-craze-ethical-algorithms/

Source: http://www.caee.utexas.edu/prof/kockelman/public_html

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efficient route choices. These benefits will not happen automatically. Many congestion-saving improvements depend not only on automated driving capabilities, but also cooperative abilities through vehicle-to-vehicle (V2V) and vehicle-to-infrastructure (V2I) communication. But significant congestion reduction could occur if the safety benefits alone are realized: 25% of congestion is attributable to traffic incidents, around half of which are crashes. In the Philippines, traffic costs P2.4B daily. If the traffic congestion will be lessen because of autonomous cars we will gain productivity and our economy will be better.

GROUP 2 MEMBERS TOGETHER WITH PROFESSOR GARY A. GREY (L-R) Juvel Cedo, Jhoana Gay Pascua, Marie Kristine Crespo, Edito Verba, and Jenzel Marie Tolentino 28

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Images: (c) www.cinemablend.com, www.fanart.tv

by Maricon Bangayan, Patrick Casilao, Mildred Flores, Angelica Joy Laurente, Arturo Mejia, and J. De Ruyter Oroceo

TECHNOLOGY DESCRIPTION

How Robotics Started

Robotics Deﬁned

Robotics began making waves as early as 1954 when George Devol designed the first programmable robot. He used the term Universal Automation that was later on shortened to Unimate. Unimate was the first industrial robot who was made to automate manufacturing of picture tubes for television. This also paved the way for the company, Unimation.

Robotics is a branch of engineering that deals with robot design, application, operation and construction. It was first used when Isaac Asimov coined the term when he formulated the “Three Laws of Robotics”, made even more popular by pop culture. However, the concept of creating a mechanical or artificial agent for a determined purpose goes as far back as the Third Century B.C. modern concepts of robotics have taken root everywhere in our society today, and come in various forms and functions.

Nineteen seventy-eight marks the birth of PUMA robot or Programmable Universal Machine for Assembly. Moreover, by 1980s, immediate growth for this technology was seen as programs and courses on robotics were introduced in various institutions. Robotics has become a part of mechanical engineering, electrical engineering and computer science departments.

Robotics takes after two common forms, hardware and software, utilizing both results in a more comprehensive by-product. Hardware takes after the physical components of robotics, dealing with actuators, motors, and sensors to complete a given task. Software deals instead with how the machine operates or how it responds to a certain scenario. We often call it artificial intelligence; it is fortunately far from the scenes you often see in the film.

In 1995, various robotics applications emerged which drive the growth of start-up companies and research, which led to the second growth of start-up companies and research. By the year 2000s, several robotic advancements emerged such as the birth of Honda’s ASIMO who is created to act as a personal assistant that can recognize the face, name and voice of its owner. NASA launched Spirit and Sojourner to aid in their Mars exploration.

What Is A Robot? The Robot Institute of America in 1979 defined robot as a reprogrammable, multifunctional manipulator designed to move materials, parts, tools or specialized devices through programmed motions for the performance of a variety of tasks.

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TRENDS IN ROBOTICS With continuous research, robots have evolved from providing mere assistance to humans but have become more efficient and are now able to function automatically without human intervention. Artificial intelligence was implanted on them to let them function by themselves. The following are some of the smart robots that have been providing assistance in various industries: • Kismet: recognizess and stimulates emotions • TUG: works around the hospital for 10 years and interacts with hospital workers and patients. • Brad: works at a retail store warehouse and ensures delivery of merchandise to the customers • Oily: smart assistant that develops its own personality through constant interaction with you. It is also known as an “emotional companion”. • Baxter: a robot designed to do industrial jobs such as lifting, sorting, loading and unloading of materials.

KISMET Image: (c) ai.mit.edu

Toshiba introduced ChihiraAico, a humanoid that can converse in Japanese language, can sing, move her hand and cries like a Japanese woman currently operates through a hidden camera and a human operator is expected to be a fully-independent version by 2025 with the use of the following: artificial intelligence, face and voice recognition and speech production.

TUG Image: (c) www.bloomberg.com

Droplet is a smart robotic gardener that can be controlled using smart phone. Aside from the sprinkler function, it also has the capability to provide users with analytics that helps users manage their water consumption. Amaryllo International Company created iCam PRO, the world’s first intelligent domestic security robot that can hear, track and sense moving objects. It is used mainly in large companies and in homes to identify security threat. Leading the charge amongst companies that want to fully utilize this emerging technology among the many examples are Google with their Self-Driving cars, Amazon and their Drone Delivery System, Microsoft with their Virtual Assistant, Cortana and most especially DARPA in their research of combat applications for Robotics. There is a lot more to talk about in terms of Robotics and how it can change the way, we do our day-to-day lives. Currently the most well known applications of Robotics come in manufacturing and military. The price of hand-sculpted cars has gone up due to a steady rise in labor expenses.

BAXTER Image: (c) www.designdirectory.net

Hence, most motor companies, most especially Toyota take pride in their assembly line process of minimizing the number of assembly line workers with mechanized arms taking their place. This makes the assembly and construction more efficient and inexpensive providing a quality product a quarter of the time, it used to take.

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Military uses on the other hand are made popular via the use of the Predator Drone, an Unmanned Aerial Vehicle remotely piloted to gather enemy intelligence or to perform strikes on unsuspecting targets. This manages to ensure pilot safety while the drone is out on patrol.

Robotics while having many practical applications is also very expensive to develop and takes years for any real means to monetize the technology aside from what companies like the Predator Drone by General Atomics, or Google's self-driving cars.

Besides the two most well-known uses of Robotics, other tech Companies are using the Robotics in the Field of Medicine, particularly in Cybernetics, or simply put the control of any system using technology. It has advanced to quite a degree that a prosthetic arm cannot only respond to oneâ&#x20AC;&#x2122;s thought impulses, it can also send feedback to the pain and provide a stimulus.

Opportunities With the current way Robotics is being developed, it is not unlikely to see a fully automated future where public transportation is handled by autonomous vehicles, deterring the potential for accidents due to human error. It also has potential in the field of medicine with the advent of Nanomachines, tiny microscopic robots that can one day be injected unto us and used as treatment of various diseases. This technology while premature holds the greatest possibility, as the numbers of applications in medicine are almost limitless, from curing cancer to eliminating HIV from the body.

The current market trend is to make this technology more affordable and power-efficient in the coming years, as it is right now once unplugged a robot can last only mere hours. Extending this life span would greatly increase its efficiency and practical use.

SWOT ANALYSIS

Threats

Strengths

It does come with its own caveats though, Robotics is premature and laws surrounding its use legality are still undefined. The current legal environment does not recognize the current technological level of the nation, as such there is a hard time differentiating and making sure to abide by the law. Just recently, commercial drones were a gray area and the Federal Aviation Administration has just set a few rules to abide by. However, these rules are not final and are still bound to change over time due to the nature of technology. When technology evolves over time our laws in dealing with them will always be ages behind creating a legal gray area. Currently companies like Google are forging the road ahead with little regard for updating the laws in place. In one of their Projects Google's self-driving cars are still technically illegal without any driver on the wheel, and the person in the driver's seat must still be sober, and not distracted, even if the driverless car didn't need said human supervision, our laws still do not allow it.

Robotics presents a new cost-efficient way at manufacturing and it has unlimited potential in various applications throughout the spectrum of established disciplines. This also decreases quality issues due to the loss of the human factor ensuring that it is upheld even in the most mundane of tasks. Given enough power and maintenance, Robots will never tire and are overall a good cost-saving measure with profound long-term benefits. Manufacturing plants can now extend hours of work, as the automations only really require regular maintenance, increasing productivity that eclipses a non-mechanized work assembly.

Weaknesses However, going for an all automated system of machines does not bode well without human supervision. Such technology is over reliant on programming and as humans program it, it cannot account for every scenario. Human oversight is still required as the technology is premature and cannot decide on its own. As would be the case during an accident at a Volkswagen plant in Germany when a mechanical arm accidentally struck a person's chest killing him almost immediately.

INDUSTRY APPLICATIONS MANUFACTURING. Baxter is a smart robot produced by Rethink Robotics. It has a wide variety of manufacturing applications such as line loading, machine tending, and packaging/material handling. No programming is required as in-house staff can train Baxter, which reduces development costs for the company.

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Since it is a stand-alone unit, it can easily integrate into any production environment.(Rethink Robotics, n.d.)

As compared to human labor compensation, the cost of robots has been going down through the years.

EDUCATION. Ozobot is a smart robot produced by Ozobot. It helps children learn about coding via adventures and games that are created in conjunction with Ozobot and a tablet device. Ozobot can learn through coloring code commands called OzoCodes determined by different color combinations. Children can learn how to program by using OzoBlockly, a block based visual editor, which provides children a base upon which they can learn the basics of programming. (Ozobot, n.d.)

Meet Baxter, the Blue Collar Robot One of the companies that develops and produces industrial robots intended to aid business in manufacturing, automation and outsourcing applications is Rethink Robotics, Inc. It was founded in 2008 in Boston, Massachusetts. One of their major robotic products is the Baxter, which entails the following costs. The base price for Baxter Robot is $25,000. It includes two 7 Degrees of Freedom (DOF) arms with torso and head, integrated vision system, integrated robot control system, integrated safety system. It also includes one-year subscription to software capability upgrades and a oneyear warranty. Additional Hardware & Software Support: (i) Baxter Care Complete: add $7,000 – Additional 2 year extended hardware coverage and software subscription (ii) Baxter Care Plus: add $4,000 – Additional 1 year extended hardware coverage and software subscription

Image: (c) ozobot.com

INDUSTRY. Google is in the process of making commercial versions of its self-driving car that was previously used to create the Street View on Google Maps. The aim of the project is to allow consumers to travel safely even when they are not able to drive, due to age, physical disabilities, etc. Google claims that the car’s sensors are able to detect objects as far as 200 meters away including airborne birds. Testing is currently ongoing for Lexus SUVs and a prototype car designed primarily to be self-driven.(Google, n.d.)

COST-BENEFIT ANALYSIS Industrial robots with controllers and teach pendants usually cost around $50,000 to $100,000. When they are customized to specific applications, the price can range between $100,000 to $150,000.

Fig, 3.1. Costs of Baxter Accessories

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Total cost of ownership for Baxter will range from $30,000 to $45,000.

Based on the above, the return on investment is as high as 102%.

Direct and Indirect/Strategic BeneďŹ ts Productivity a. Produce work that is more accurate b. Can work at a constant speed. No day off or holiday time c. Can do tasks with more repeatability than humans

Fig, 3.2. ROI Computation

Rethink Robotics competitors and similar companies include ABB Group, Universal Robots, Fanuc Corporation, and Kiva Systems, Inc.

Safety a. Robots can perform dangerous tasks b. Robots can work in environments not suitable for humans c. Capable of performing tasks with no risk of injury or tiring

Payback Period The payback period based on the savings generated when compared with human labor cost is one year. Though the suppliers generally claim, smart robots investment could be recouped in three (3) to eight (8) months, which is possible as the robots can operate continuously without major breaks.

Savings a. Efficiency in performing tasks b. Reduced wastage c. Lower worker's compensation due to injury

ETHICAL IMPLICATIONS Smart Robots offer great promise but also raise serious questions that must be dealt now. Robots become more self-directed and thus society needs to find ways to ensure that these robots are better equipped to make moral judgments.

Once people are relieved of repeating tasks performed by robots, they can focus more on challenging tasks.

FINANCIAL ANALYSIS Return on Investment

As the robots become smarter and more widespread, they are bound to end up making life or death decisions in random situations, thus it will be very possible to shift process with the robots carrying out orders freely.

Given the investment cost of US$32,000 (US$25,000 purchase price + US$7,000 hardware and software support for 2 years) for a Baxter robot, an eight-hour workday over 260 working days in a year, Baxter production costs an average of US$7.69 per hour (32,000/520 days /8 hours). This result to as much as 60% savings compared to average hourly cost for a US factory worker of US$23.32, US$25.80/hour in Germany. Though this cost is higher compared to US$1.36/hour labor rate in China, the computed hourly cost of Baxter could drop further if the initial cost would be distributed over a longer period based on the useful life of the robot (minimum four years). In addition, employing Baxter would still prove to be competitive in terms of cost if benefits in transportation, political/economic and other macroeconomic factors will be considered.

Can we trust robots? The fear exists if eventually robots become completely self-directed, with free will, intelligence, and consciousness; robots may rebel against human. If that happens, the society will be facing ethical dilemmas. Thus, the society needs to develop ways of dealing with the ethics of robotics. Trust and reliability given in a robot is substantial because robots are getting closer the same as humans. If these robots will be having the emotions just like human, then there raise a question, what would be our difference now with robots. What could be some ethical considerations or implications with the use of smart robots? Ethical implications would mainly arise from the conflict between what the humansâ&#x20AC;&#x2122;

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intent the robot would do and what the robot actually does. Here are some issues that must be dealt with:

technology of robots, have the responsibility to pay serious attention to the consequences of having smart robots around us. If humans are enjoying the benefits, then we must have an equal accountability in looking for answers for the damages or injuries these robots may bring. It is our ethical responsibility as creator of smart robots to ensure that these robots cause no harm. We must always remember that if we are starting to make things that is somehow alive and intelligent, then we must start thinking about how to treat them otherwise we will suffer the consequences.

• Many of the labor-intensive job will use robots instead employing people so many employees could lose their jobs. Some of them are: cashiers, waitresses, factory workers; • If the robots are used for selfish reasons, this can be harmful or dangerous to humans; • Just like any advancement in technology, humans will definitely depend in the use of robots and as an effect, humans will not be willing to learn even the basic skills robots are doing for them; • Though robot scan be very good with their jobs or with what they are made to do; robots cannot still handle unforeseen situations as well as humans.

NATION-BUILDING IMPLICATIONS Robotic technologies can help with the labor-intensive heavy industries through perceived efficiencies, safety and economy. Robot can work 24 hours a day, easier to repair, do not get sick and do not require staff amenities or benefits. Substituting people with robots was seen as a way of reducing labor costs, worker’s compensation, staff benefits and union influence.

More than fifty (50) years ago, when science fiction novelist Isaac Asimov developed the Law of Robotics, this is a set of rules designed to ensure friendly robot behavior. This law has gone through numerous debates by the experts and still not usable now. It was still used as guidelines or as they say as ready-made prescription in avoiding disasters with robots. As stated in Asimov’s short story “Runaround” in 1942, this contained the Three Laws of Robotics:

Robots can create new jobs directly and can create advancement, leading to the development of new industries and jobs. Smart robots will have huge implications for a range of industries such as health care, transport and logistics, customer service, and home maintenance. Though robots are primarily built to improve productivity or efficiency of companies, robots can also help humans in daily life or even can entertain us.

1. A robot may not harm a human being, or, through inaction, allow a human being to be harmed – this requires the robots to protect humans (creator); 2. A robot must obey the orders given to it by human beings except where such orders would conflict with the First Law – Robots should always obey orders; 3. A robot must protect its own existence, as long as such protection does not conflict with the First and Second Laws – robots must preserve themselves.

Some industries have been using robots as part of their daily activities to name a few:

INDUSTRIAL/MANUFACTURING. Uses robots which often guided by sensors and helps in editing or assembling on work pieces which could be difficult without the help of the robot.

The application of rapidly advancing technology of robotics to recreate life or intelligence raises ethical and social issues. Technology has driven mankind’s progress, but each new advance has posed disturbing new questions. Smart robots are no different. We will have to consider the issues around what should do ethically in designing, building, and in deploying robots. The sooner the questions of ethical or moral implications that were raised were answered, the easier it will be for mankind to enjoy the benefits that the robots will undoubtedly bring. The kind of robots we build, and the kind of robots we decide to build, will change us as much as they will change our society; we should make sure it is for the better. We, humans, as the creators of the new science and

MEDICAL. An example is a surgical robot. It has multiple arms where the different tools are attached, thus the surgeon will be able to perform precise actions. Another example is the elderly care or support robots. This helps a disabled or the elderly people to move, hear or see.

MILITARY. Military robot being used in the military is mainly used in dangerous situations where human lives would be at stake.

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SERVICE. A robot is used for personal assistance or

Using smart robots can offer a number of benefits to the nation and with the society as well. Some of which are:

Advances in robotics envision that significant number of jobs may be unemployed in the following years. However, there are still experts who believed that these advances would not cause unemployment but rather create more jobs. There may be jobs that will be replaced by these robots but because of human initiative, it will create new jobs, industries, and ways to make a living. The employees who were replaced with robots may be promoted to the next higher position or can land in a new position that would enhance their skills and ability.

• May displace certain types of work, especially the labor type of work; • Introducing entirely new types of work and by taking advantage of exceptionally human capabilities; • Will free us from daily difficult task and allow us to enjoy the relationship with “work” in a more positive and socially beneficial way.

Smart robots will play a major part in our lives in the coming years. Because of this, many opportunities will exist for smart robots’ technology. We must always welcome the improvement and advancement in technology and the benefits it brings. However, we must also consider the issue that goes with it, like ethics, human dignity and inequality.

performing duties of a domestic servant.

TRANSPORTATION. The main purpose of using robots is to transport packages. The use of robots will reduce cost and faster delivery of items to remote places.

GROUP 3 MEMBERS TOGETHER WITH PROFESSOR GARY A. GREY (L-R) Angelica Joy Laurente, Maricon Bangayan, Patrick Casilao, Arturo Mejia, and Mildred Flores 35

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Image: (c) www.stuﬀ.co.nz

by Ferdinand Gabriel, Arlene Jacosalem, Eileen Frances Manabat, Aldrin Ramirez, Riel Samoy, and Catherine Villanueva

TECHNOLOGY DESCRIPTION

Technology Environment

Drone refers to any form of unmanned aerial vehicle (UAV) or unmanned aircraft system (UAS). As such, it is not manned by a pilot on board but controlled with some sort of autonomy or through a remote control that is on the ground. (Wikipedia)

Drones were foremost and widely used by the military in situations where a manned flight is considered as risky or difficult. These are also used for reconnaissance, giving the troops their “eye in the sky” that sends back real-time imagery of activities on the ground. Aside from intelligence gathering, surveillance, and reconnaissance, drones have also been used to check for roadside bombs on landing areas, and to monitor the locals on unfamiliar territories to gain knowledge on what is the norm. In the US, it has been said the drones have also been used in military operations involving strikes in militant groups. (BBC News)

Drones are generally classified according to their functionality: • Target and decoy - provides ground firepower • Reconnaissance - provides intelligence • Combat - used for high-risk mission • Logistics - specially used for cargo and logistics operation • Research and development • Civil and commercial UAVs

Not all drones however are as lethal, and some companies in the US and UK have actually used drones with propriety and for noble utility.

Although their use was precipitated by military research in the 20th century for reconnaissance purposes, it is now being used widely by civilians for industrial, commercial, and recreational use.

ConservationDrones.org is an organization that builds and operates its own UAVs, and its mission is to uphold its goal of inspiring others to adapt emerging technologies for conservation. Their drones are being used for

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surveying wildlife, and monitoring and mapping terrestrial and aquatic ecosystems.

While the price of drones are dropping and becoming more affordable due to the proliferation of vendors in the market (a camera drone sells for less than P2,000 at a popular online store), and with the discovery of its multiple uses, there is also an increasing concern from several parties over safety and privacy. The proliferation of drones expects their integration into unsegregated airspace and therefore raises issues such as licensing, qualifications of drone pilots, and possible radio frequency interference.

Airware, a company based in San Francisco, California, operates commercial drones to inspect and survey generation facilities, transmission and distribution infrastructure, and terrain. These drones are powered by Airwareâ&#x20AC;&#x2122;s own operating system that can be integrated into engineering, asset management, and other decision workflows for industries such as insurance, oil and gas, telecommunications, and utilities.

In the Geeks On A Beach (GOAB) Conference held in Boracay on August 2015, Capt. Manuel Foronda of the Civil Aviation Authority of the Philippines (CAAP) prompted law-making bodies to enact laws regulating the flight of these small unmanned vehicles to promote â&#x20AC;&#x153;responsible flyingâ&#x20AC;?.

In the United Kingdom, drones are being used to survey arable lands. Ursula Agriculture provides aerial insights and works with farmers, growers, agronomists, and other research organizations involved in agriculture, to produce actionable maps that provide crop information highlighting productivity, weed pressure, and disease damage, and which enables these users to pursue management decisions relative to the improvement of the economic performance of crops.

At present, CAAP requires all UAVs to be registered, and their operators or controllers to be licensed to fly the aircraft. There are also restrictions imposed on flying UAVs at night, in populous areas, height limitations, and in controlled airspace or no-fly zones like military camps, or the presidential residence. Violators face a stiff fine between P300,000 and P500,000 and may even face apprehension. In July 2015, CAAP has issued the first two licenses and Certificate of Authorization to operate a drone for commercial purposes to SRDP Engineering and Consulting, a company engaged in engineering and aerial typography. Said drones, valued at P1.2 million each, will be used by the company specifically for ground exploration, research, and disaster prevention and management.

In the Philippines, the use of drones have been generally for industrial activities such as aerial mapping, disaster mitigation, environment monitoring, and structure inspections. SkyEye, Inc., a Filipino startup company, started as a small project in 2009 and was born out of necessity since at that time satellite images were hard to come by and very expensive to procure. The company is part of the United Nations COP and is asked to participate by providing disaster response during calamities, helps in providing documentation of affected areas, and produces maps that allows concerned parties to take preventive action. Aero360 Solutions Inc. meanwhile, uses UAVs coupled with handheld stabilization and time-lapse cameras for data gathering and monitoring activities, project documentation, project assessment, and reporting. Drones are being utilized by the company for land mapping, 3D photogrammetry, thermal imagery, as well as for media projects like event coverage, film and commercial videos. Drones have recently taken over the Filipinos, who fly a smaller version of these UAVs (quadcopter) as a hobby or use them for other recreational purposes. An estimated 2,000 drones are sold in the country annually, mainly to hobbyists, enthusiasts, researchers, photographers/ videographers, and media companies.

SYMA X11 RC Quadcopter (c) www.lazada.com

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6 APRIL 2016 Trends in the Drone Technology The use of drones in the Philippines have surged in the recent years with the implementation of the Philippines’ drone regulations in June 2014. On April 15, 2015, the Civil Aviation Authority of the Philippines, together with the Bureau of Customs, started regulating the informal importation of drones by levying a luxury tax of P100,000, as well as requiring the owner to secure a clearance from CAAP. Prior to these regulatory developments however, the UAVs were already being used in the Philippines as early as the year 2000s by the military, and it was only in 2013 that drones began to be used commercially in the country. The Center for the Study of the Drone at Bard College, an interdisciplinary research institution based in the US, examines the opportunities and challenges presented by unmanned technologies. In their website dronecenter.bard.edu, the Center highlights important developments in drone usage in several Southeast Asian countries, among them, the Philippines (refer to infographic on the left). Perhaps one of the biggest news in the drone industry is the launch of Facebook’s Aquila, which was announced to have been completed on July 2015. Aquila is the company’s first full-scale aircraft. Solar-powered and unmanned, it was built in response to Facebook’s initiative to provide internet connectivity to remote places on earth. Aquila is set to fly at approximately 60,000 feet, well-above commercial aircrafts, and to remain airborne for at least three (3) months at a time, providing blanket wireless internet access to the ground below. In 2010, the US Federal Aviation Administration (FAA) estimated that there will be at least 15,000 flying drones in their part of the sky by 2020, while some analysts think there would be at least 1 million worldwide. Despite the delay in government policies regulating the flight of drones, this has not stopped various industries from already venturing and investing in various forms of UAVs. Aside from forecasts in commercial drone technology, Business Insider’s Intelligence Report (Business Insider, 2015) also

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explores challenges in the drone industry, lists down several companies who are already active in space, as well as highlights the following:

5. Virtual and augmented reality, and 360-degree applications; and 6. Increased competition.

• Extensive use of commercial drones in various industries like agriculture, energy, utilities, mining, construction, real estate, news media, and film production • Most growth in the industry will be on the commercial/ civilian side rather than the military - the commercial market is seen to gain a compound annual growth rate of 19% between 2015 and 2020, while only 5% for the military.

SWOT ANALYSIS Strengths • Open, untapped industry • Cost effective and sustainable • Efficient, timely, and accurate

Weaknesses

Similarly, there is rapid growth of the drone industry in the Philippines. Although drones are still being used mainly by hobbyists and enthusiasts, the country can benefit from companies utilizing drones for much more than just entertainment or recreation, such as in the following:

• • • •

Competition for human deliverables High start-up costs Still needs extensive testing Negative perception - recognized as a tool for perverts, spies, criminals

Opportunities

• Large-scale survey in the fields of agriculture or geography to track erosions, track changes in river courses, or inspection of volcanoes and cave interiors • Survey of long stretches of power lines or pipeline • Package delivery not only targeting consumers, but also in providing emergency relief during disasters • Produce 3-D maps of landscapes and buildings • Plan own route within a space and its obstacles autonomously

• New technology, fewer competition • Vast areas for expansion • Vast commercial applications

Threats • • • •

Dronealyst.com cites six drivers of these opportunities and challenges for the industry from 2016 and beyond: 1. The desire for better image and video resolution and longer battery life; 2. More responsive and lightweight sensors; 3. With the continuous evolution of smartphones and tablets, and people seen utilizing more wearable devices, so is the expectation for drones to be more mobile, with control coming from these same devices, and images and video recorded directly on them; 4. Massive reproduction of drones coming from China;

Restrictive regulations by CAAP Unknown delivery date of service Yet unknown costs, problems, risk Possible disruption to homeland security

INDUSTRY APPLICATIONS The business and industrial applications of using a drone are continuously evolving as new capabilities for the drone is developed. Currently, drones are being used for surveying, inspection and documentation of construction, agricultural lands, emergency response, power line and infrastructure facilities of government and private companies.

Agriculture

“Miniature, pilotless aircraft are on the verge of becoming commonplace.”

• Survey of vast tracts of lands to generate a map indicating best possible use of land

- The Economist 39

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• Capability for famers to monitor crop growth and detect possible problems, i.e. locusts infestation, areas affected by droughts and other weather changes, etc. • Drones can easily cover hectares of land in only a short period of time, something that manual labor is hardpressed to do • DJI also recently launched a drone designed to spray pesticides

Telecommunications

Drone spraying pesticide in crops. Image: (c) www.eyeondrones.com

• Provide connectivity to remote areas, i.e. delivering 3G/ broadband/Wi-Fi signals through mobile access points • Inspection of miles of remote pipelines • Conduct minor repair and/or maintenance

Construction and Real Estate • 3D models and landscapes of buildings • Project inspection and documentation • Safety management • Site management

Nokia launched drones to inspect cell towers. (c) siliconangle.com

Marketing and Media • Live event coverage • Corporate AVPs • Television commercials • News

Small-scale to Medium Enterprise Hydroswarm underwater drone. (c) www.hydroswarm.com

• Film-making • Photography and videography • Product delivery

Geography and Oceanography • Underwater smart drones to map the world’s oceans using these autonomous robots carrying sensors by Hydroswarm • Exploration of cave interiors and mineral deposits

Applications with Social Impact

Drone taking the lead in relief operations. (c) altigator.com

• Surveying of wildlife, i.e. nest-counting • Monitoring and mapping of terrestrial and aquatic ecosystems to support the enforcement of protected areas

• Emergency preparedness and response • Humanitarian and disaster relief (HADR) operations • Drone-aided search and rescue mission

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COSTS AND BENEFITS ANALYSIS

coverage. Analyzing the use of drones for businesses using the given data:

Total Cost of Ownership (TCO) - Capital

Return on Investment (ROI)

investment and hidden costs

Net Profit / Cost of Investment x 100 = X 24,000 / 131,500 x 100 = 18.25%

Drones are popularly used in the Philippines for wedding videos. Service providers offer the use of drones as an add-on option for the clients to take a spectacular shot of the venue or even the church from the sky. Taking this business as an example, take a look at how much would it cost a business to acquire and use a drone for this purpose:

*It is assumed that the pilot of the drone to be used is also a videographer from the basic package

Payback Period

The cost of a drone used by videographers range from P48,999 to P255,000. The pricing is based on a popular drone brand which is commonly used by wedding videographers due to its efficient and stable flight. For study purposes, we will use the cheapest DJI Phantom Drone currently sold here in Manila which is the DJI Phantom 3 Advanced Edition.

Initial Investment / Net Cash Flow per Period = X 131,500 / 24,000 per month = 5.48 or 5 to 6 months *Conservative assumption is that drone add-on will be availed by a client at least once a month Based on the numbers, the ROI on using a drone is an at 18%, which on a conservative estimate should already be covered by 5 or 6 wedding events using the drone or 6 months at a maximum.

The permits and licenses are assumed to cost an average of P 1,000 per wedding location or per municipality.

Knowing how to properly operate the use of drones and leveraging this service which has a high demand by clients would significantly help increase revenue for the business.

ETHICAL IMPLICATIONS Invasion of Privacy and Personal Security Fig. 4.1. Sample Computation of Total Cost of Drone Ownership

One major concern that should be addressed in the legislation of drones regulation is the invasiveness of drones which could intrude on people’s personal space. With the clamour for longer battery life, this could only mean more minutes for drones to hover thus enabling it to

Direct and Indirect Strategic Beneﬁts One major benefit to direct sales strategy is that one is able to immediately make an impression by offering a novel idea, i.e. aerial photography, as part of a regular photography services. This goes to show that the business is up-to-date with the most recent technology and the team is capable of utilizing the latest equipment to complement the core product.

FINANCIAL ANALYSIS Nice Print Photography offers the use of drones for their services as an add-on, for which the company charges an extra P25,000 for the use of their drone in their video

A Scene from the movie, Ender’s Game. (c)

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“collect” more information that could be used by the more enterprising individuals, i.e. robbers. This is the same issue raised by some residents who have fallen to using Google Maps’ Street View and inadvertently “advertising” their homes.

Another bill that was passed in Port Orange puts sexual predation (defined as “the use or operation of a drone…to view or record an image of a minor who is on or at the minor’s domicile…) as a third-degree felony, punishable by up to five years in prison.

Even law enforcement agencies should be limited in use of drones unless in cases where it has been determined that there is imminent danger, something which has to be clearly defined, or only when there is a warrant.

NATION-BUILDING IMPLICATIONS While drones can give the Philippines an edge in information and data gathering and in armed confrontations, the Armed Forces of the Philippines are more interested in their capabilities in humanitarian and disaster relief. (Monzon, 2015)

Physical and Mental Risk Risk of physical injury when a 2-kg drone suddenly loses power while in flight when covering a live event is also something that should be considered when factoring in the limitations of their flight, i.e. cannot be flown above crowds.

The Philippines can take a cue from the different companies abroad who are utilizing UAVs to promote the following: • Geographical exploration to protect the country’s natural resources • Weather monitoring • Telecommunications and interconnectivity • Emergency preparedness and response • Post-disaster rehabilitation • Peace-building • Promote advances in business intelligence for management to make better-informed decisions

Drones are said to be precise weapons and can therefore reduce casualties when used in warfare making it a more moral weapon than a bomb. Not even being considered here is how it affects the pilots mentally - drone operations would seem no different from war games being played by younger boys.

User Abuse

Regulations for the use of drones should also be given attention now rather than later to address probable concerns related to security breach, user misuse and abuse, and invasion of privacy, among others.

In 2013, Florida lawmakers passed a bill requiring search a warrant or some imminent danger before their law enforcement agencies can make use of drones, thus limiting their use of technology.

GROUP 4 MEMBERS TOGETHER WITH PROFESSOR GARY A. GREY (L-R) Aldrin Ramirez, Arlene Jacosalem, Riel Samoy, Catherine Villanueva, Eileen Frances Manabat, and Ferdinand Gabriel 42

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EMERGENCE OF DRONES: Unmanned Opportunities for Business By: Shellyn E. Gomez With the rising popularity of Unmanned Aerial Vehicles (UAV) and Remotely Piloted Aerial Systems (RPAS), otherwise known as drones, the Ateneo Graduate School of Business IT Cluster hosted the forum entitled “Emergence of Drones: Unmanned Opportunities for Business”, held last March 2, 2016 at 6 PM in the Ateneo Professional Schools Auditorium, as a platform to discuss this subject from a business perspective. Two hundred twenty-five were in attendance to listen to two invited guest speakers: Mr. Mark B. Vincent Villaflor, the president of Aero360 Solutions and Capt. Beda B. Badiola, Civil Aviation Authority of the Philippines (CAAP) Asst. Director – General. Mr. Villaflor, having 8 years of experience in UAV operations brought with him insights on how the technology works from gathering clients’ requirements, to design of proper solutions, implementation of solutions and post analysis on the results including data transfers, interpretation, and monitoring support. He also provided details on the terminologies used, the capabilities and importance in terms of cost and efficiency as compared to the traditional approach, the evolution of the technology highlighting innovations in hardware and software applications, the risks involved in using the system, and the value and impact it can deliver whether for personal or business use.

Forum speakers, Mark Villaflor of Aero360 and Capt. Beda Badiola of CAAP, answering questions during the Q&A.

Meanwhile, Capt. Badiola, focused his talk on the regulatory side of drone use including CAAP implementation of restrictions on areas with no-fly zones, the registration requirements, and the corresponding fees for offences or violations committed in relation to the technology. For now, CAAP is the regulating body in the Philippines for the usage of drones for personal and commercial purposes. Participants were also provided opportunities to ask questions in the Q&A portion.

Operation and IT Cluster with Dean Ang presenting the certificate to the Speakers.

Six participants were able to bring home drones courtesy of the event sponsor, Aero360 Solutions. The event was co-sponsored by Aero and CAAP, Delex Pharma International, Inc., IOM Philippines, Bayan Realty, Firefly, LaBelle Events Management Services, and Soonest Global Express Corporation. The forum was presented by the Operations and IT Department under Professor Ralph A. Ante, Department Head and was spearheaded by the M02 INFOTE (Information Technology for Managers) Class under Professor Gary A. Grey.

One of the lucky winners of a drone. 43

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AGSB MM_INFOTE CLASS TOGETHER WITH PROFESSOR GARY A. GREY (Front, L-R) Ed Verba, Jhoana Pascua, Ar Jacosalem, Mel Flores, Con Bangayan, Cat Villanueva, Chickie Laurente, Frances Manabat, Jenzel Tolentino, Tin Crespo, Belle Amgao, Gab Gabriel, Aldrin Ramirez. (Back, L-R) Pat Casilao, Riel Samoy, Maxi Mejia, Jimmy Hermogenes, Chris Sanchez, Juvel Cedo, Kent Miag-ao, Dang Casaol, and Jhess De Vera. Not in photo: Andrew de Leon and Toto Oroceo.

Management Concepts for Information Technology (MMINFOTE) Information systems and technologies are vital components of successful businesses and organizations. They constitute an essential ﬁeld of study in business administration and management. This course presents management concepts that lead to an understanding of information technology and its role within the enterprise as well as in building a nation. It includes enhancing awareness of the digital and economic divide within a nation and how a business performs its economic activities while at the same time investing in marginalized sectors and communities. Building consensus among business and technology professionals using modern approaches to strategic planning, business process re-engineering and systems development are discussed highlighting the ethical and legal principles that impact this environment. The goal is to help students learn how to use and manage information technologies to revitalize business processes, improve decision making and gain competitive advantage. Major emphasis is placed on up-to-date coverage of the essential role of the IT in providing a platform for business, commerce and collaboration processes among all business stakeholders in today’s networked enterprises and global markets. The Management Concepts for Information Technology is one of the core courses being oﬀered by the Ateneo Graduate School of Business. (From http://gsb.ateneo.edu/programs/middle-manager/#middle-manager-course-descriptions)

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REFERENCES GROUP 1 - INTERNET OF THINGS Agrawal, A. (2015). Big Data, Analytics and the Internet of Things. LinkedIn Pulse. Retrieved from https:// www.linkedin.com/pulse/big-data-analytics-internet-things-ayushi-agrawal Agarwal, V. (2001). Assessing the benefits of Auto-ID technology in the consumer goods industry. Retrieved November 11, 2009, from http://www.autoidlabs.org/uploads/media/CAM-WH- 003.pdf Ethical challenges of the Internet of Things. (2014). SC Magazine. Retrieved from http://www.scmagazine.com/ethicalchallenges-of-the-internet-of-things/article/331460/ EUROPA - European Union website, the official EU website. (2016). Europa.eu. Retrieved from http://www.europa.eu Industrial Internet of Things (IIoT) benefits, examples |Control Engineering. (2016). Controleng.com. Retrieved 2016, from http://www.controleng.com/single-article/industrial-internet-of-things-iiot-benefits-examples/ a2fdb5aced1d779991d91ec3066cff40.html Intel IoT Technology to Transform Vending Industry | Intel Newsroom. (2016). Intel Newsroom. Retrieved from https:// newsroom.intel.com/news-releases/intel-iot-technology-to-transform-vending-industry/ Intelligent Vending Machines Deliver a Unique Shopping Experience. (2016). Intel. Retrieved from http://www.intel.com/ content/www/us/en/retail/retail-vending.html Internet of things Emerging Network Technology Assessment Report. (2016). Slideshare.net. Retrieved from http:// www.slideshare.net/zhanghuilian/internet-of-things-technology-enablers-assessment-report-38676283 Internet of Things Home | The IoT Portal. (2016). The Internet of Things Portal. Retrieved from http:// www.theiotportal.com Internet of things meets investing - Smarter Investing. (2014). Smarter Investing. Retrieved from http:// investing.covestor.com/2014/12/internet-things-meets-investing Internet of Things Part 8: Smart Grids - The Future of Energy Delivery - By Don DeLoach • March 25, 2014 ITU Internet Reports 2005. (2005) (1st ed.). Retrieved from https://www.itu.int/net/wsis/tunis/newsroom/stats/TheInternet-of-Things-2005.pdf Langer, N., Forman, C., Kekre, S., & Scheller-Wolf, A. (2007). Logistics, Assessing the Impact of RFID on Return Center. Interfaces, 37(6), 501-514. Lee, P., & Stewart, D. (2016). Predictions 2015: The IOT really is things | Deloitte | Technology, Media, and Telecommunications. Deloitte. Retrieved from http://www2.deloitte.com/global/en/pages/technology-media-andtelecommunications/articles/tmt-pred-the-iot-is-things-not-people.html McKinsey & Company. (2016). McKinsey & Company. Retrieved from http://www.mckinsey.com P&G Finds RFID 'Sweet Spot' - RFID Journal. (2016). Rfidjournal.com. Retrieved from http://www.rfidjournal.com/article/ articleview/2312/1/1 Porter, M. E. (2001). Strategy and the Internet. Harvard Business Review, 79(3), pp. 63-78. Research, Z. (2016). 4 Internet of Things (IoT) Stocks Poised for Solid Growth. MSN. Retrieved from http:// www.msn.com/en-us/money/topstories/4-internet-of-things-iot-stocks-poised-for-solid-growth/ar-BBotTWw SAP Software Solutions | Technology & Applications. (2016). SAP. Retrieved from http://www.sap.com Struker, J., Gille, D., & Faupel, T. (2008). RFID Report 2008 – Optimierung von Geschaft- sprozessen. Dusseldorf, Germany: VDI Nachrichten. TCS: IT Services, Consulting and Business Solutions. (2016). Tcs.com. Retrieved 2016, from http://www.tcs.com

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The 2015 Internet of Things in the Enterprise Report | OpenDNS. (2016). OpenDNS. Retrieved from https:// www.opendns.com/enterprise-security/resources/research-reports/2015-internet-of-things-in-the-enterprise-report/ The New York Times,. (2015). Thomas Staggs: Disney™’s Heir, Apparently. Retrieved from http://Thomas Staggs: Disney™’s Heir, Apparently Uckelmann, D., & Hamann, T. (2010). Nutzenpotentiale in der Supply Chain. RFID im Blick: Sonderausgabe "RFID in Bremen", pp. 46-47. Unlocking the potential of the Internet of Things. (2015). McKinsey & Company. Retrieved from http:// www.mckinsey.com/insights/business_technology/the_internet_of_things_the_value_of_digitizing_the_physical_world Veeramani, D., Tang, J., & Gutierrez, A. (2008). A Framework for Assessing the Value of RFID Implementation by Tier-One Suppliers to Major Retailers. Journal of Theoretical and Applied Electronic Commerce Research, 3(1), pp. 55-70. Wagholikar, S. (2015). Internet of Things â “ Sense Everything. LinkedIn Pulse. Retrieved from https:// www.linkedin.com/pulse/internet-things-sense-everything-shantanu-wagholikar What Is the Return on Investment of the Internet of Things?. (2016). Supply & Demand Chain Executive. Retrieved from http://www.sdcexec.com/news/12130742/what-is-the-return-on-investment-of-the-internet-of-things American Automobile Association. (2015). How Much Are You Really Paying to Drive. Your Driving Costs. Heathrow, Florida, USA. Retrieved from http://exchange.aaa.com/wp-content/uploads/2015/04/Your-Driving-Costs-2015.pdf

GROUP 2 - AUTONOMOUS VEHICLES Autonomous car. (2016). Wikipedia. Retrieved from https://en.wikipedia.org/wiki/Autonomous_car big ideas 2016. (2016). Popular Science. Retrieved from http://www.popsci.com/tags/big-ideas-2016 Davies, A. (2016). Turns Out the Hardware in Self-Driving Cars Is Pretty Cheap. WIRED. Retrieved from http:// www.wired.com/2015/04/cost-of-sensors-autonomous-cars Dr. Kara Kockelman's Home Page. (2016). Caee.utexas.edu. Retrieved from http://www.caee.utexas.edu/prof/kockelman/ Forrest, A., & Konca, M. (2007). Autonomous Cars and Society (1st ed.). Worcester, MA: Worcester Polytechnic Institute. Retrieved from https://www.wpi.edu/Pubs/E-project/Available/E-project-043007-205701/unrestricted/IQPOVP06B1.pdf future of the car. (2014). Popular Science. Retrieved from http://www.popsci.com/tags/future-car Greenough, J. (2015). 10 million self-driving cars will be on the road by 2020. Business Insider. Retrieved from http:// www.businessinsider.com/report-10-million-self-driving-cars-will-be-on-the-road-by-2020-2015-5-6 Hars, A. (2015). Self-Driving Cars: The Digital Transformation of Mobility. Xpert.Press, 539-549. http://dx.doi.org/ 10.1007/978-3-662-43782-7_57 Lawrence, B., Jordan, W., & Scarborough, B. (2013). Transforming Personal Mobility (2nd ed.). New York, New York: The Earth Institute, Columbia University. Retrieved from http://sustainablemobility.ei.columbia.edu/files/2012/12/ Transforming-Personal-Mobility-Jan-27-20132.pdf Obama Administration to Invest $4 bln on Self-Driving Cars. (2016). Venture Capital Post. Retrieved from http:// www.vcpost.com/articles/114240/20160118/obama-administration-investment-self-driving-cars.htm Peter Dizikes. (2016). MIT Technology Review. Retrieved from https://www.technologyreview.com/contributor/peterdizikes/ Revolution in the Driver™’s Seat: The Road to Autonomous Vehicles. (2015). www.bcgperspectives.com. Retrieved from https://www.bcgperspectives.com/content/articles/automotive-consumer-insight-revolution-drivers-seat-roadautonomous-vehicles/?chapter=2 Rose, B. (2015). The Myth Of Autonomous Vehicles™ New Craze: Ethical Algorithms. TechCrunch. Retrieved from http:// techcrunch.com/2015/11/23/the-myth-of-autonomous-vehicles-new-craze-ethical-algorithms/

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Self-driving Cars: The Next Revolution (1st ed.). Retrieved from https://www.kpmg.com/US/en/IssuesAndInsights/ ArticlesPublications/Documents/self-driving-cars-next-revolution.pdf Tasha Keeney, A. (2016). Autonomous Vehicles Archives - ark-invest.com. ark-invest.com. Retrieved from http://arkinvest.com/industrial-innovation/autonomous-vehicles Top 20 Pros and Cons Associated With Self-Driving Cars. Autoinsurancecenter.com. Retrieved from http:// www.autoinsurancecenter.com/top-20-pros-and-cons-associated-with-self-driving-cars.htm Unmanned Aerial Vehicle in Logistics. (2014) (1st ed.). Troisdorf, Germany. Retrieved from http://www.dhl.com/content/ dam/downloads/g0/about_us/logistics_insights/DHL_TrendReport_UAV.pdf

GROUP 3 - SMART ROBOTS Al-Rodhan, N. (13 March 2015). The Many Ethical Implications of Emerging Technologies. Retrieved from http:// www.scientificamerican.com/article/the-many-ethical-implications-of-emerging-technologies/ Artificial Intelligence – Foundations of Computational Agents; 15.2 Social & Ethical Consequences, Copyright 2010, Retrieved 6 February 2016 from http://www.artint.info.html/ArtInt_344.html Crazy Mechanical (2013). Advantages and Disadvantages of Robotics. Retrieved from http://www.crazymechanical.com/ robotics-advantages-and-disadvantages-of-robotics/ Crowe, S., (10 December 2015). 6 Personal Robot Trends to Watch. Retrieved from http://www.cta.tech/Blog/Articles/ 2015/December/3-Personal-Robot-Trends-to-Watch Dvorsky,G. (28 March 2014). Why Asimov’s Three Laws of Robotics Can’t Protect Us. Retrieved from http:// io9.gizmodo.com/why-asimovs-three-laws-of-robotics-cant-protect-us-1553665410 The Economist (2 June 2012). Morals and the Machines. Retrieved from http://www.economist.com/node/21556234 Ethical Issues Concerning Robots and Android Humanoids. Retrieved 12 February 2016 from http://www.links999.net/ robotics/robots/robots_ethical.html Ethical and Social Implications – Powerhouse Museum; Retrieved 8 February 2016 fromhttp:// www.powerhousemuseum.com/hsc/aibo/ethics.htm Here’s How Robots Could Change The World By 2025, John Mauldin, Thoughts from the Frontline, August 20, 2014, Retrieved 9 February 2016 from http://www.businessinsider.com/heres-how-robots-could-change-the-worldby-2015-2014-8 History of Robotics Timeline. Retrieved 16 February 2016 from http://www.robotshop.com/media/files/PDF/timeline.pdf Kapila, V., Introduction to Robotics. Retrieved 12 February 2016 from http://engineering.nyu.edu/mechatronics/smart/ pdf/Intro2Robotics.pdf Kismet, the Robot. Retrieved 12 February 2016 from http://www.ai.mit.edu/projects/sociable/baby-bits.html Knight,W. (1 January 2016). Robot Trends to Watch for in 2016. Retrieved from http://www.technologyreview.com/s/ 545056/5-robot-trends-to-watch-for-in-2016/ Kumar, S., Robotics- As-A-Service:Transforming the Future of Retail. Retrieved 10 February 2016 from http:// www.tcs.com/resources/white_papers/Pages/Robotics-as-Service.aspx Rise of the Robots – 2016 Trends. Retrieved 12 February 2016 from http://www.rodd.uk.com/rise-of-the-robots/ Robotics. Retrieved 12 February 2016 from http://www.appropedia.org/Robotics Sharma, A., (16 April 2015). Six Smart Robots That Can Steal Your Job in Future. Retrieved from http:// www.pcquest.com/6-smart-robots-that-can-steal-your-job-in-future/

HYPERTECH MAGAZINE | AGSB INFOTE CLASS MM02 | SY 2015-2016

6 APRIL 2016

What Makes our Robots Different?, Retrieved 14February 2016, from http://www.rethinkrobotics.com/baxter/whatmakes-our-robots-different/ Rethink Robotics – Finding a Market, June 3, 2013, Retrieved 14February 2016, from https://web.stanford.edu/class/ ee204/Publications/Rethink%20Robotics%202013-204-1.pdf Smart Robot, driverless cars work – but they bring ethical issues too, October 20, 2013, Retrieved 6 February 2016 from http://www/theguardian.com/technology/2013/oct/20/artificial-intelligence-impact-lives Smart Robots, by Leonel Solano, October 30, 2013, Retrieved 14 February 2016 from https://prezi.com>smart-robots

GROUP 4 - DRONES Aero360solutions.com,. "Aero360 Solutions Inc". N.p., 2016. Web. 16 Feb. 2016.

Airware,. "Commercial Drone Solutions For The Enterprise | Airware". N.p., 2016. Web. 16 Feb. 2016. BBC News,. "Drones: What Are They And How Do They Work? - BBC News". N.p., 2012. Web. 15 Feb. 2016. Business Insider,. "THE DRONES REPORT: Market Forecasts, Regulatory Barriers, Top Vendors, And Leading Commercial Applications". N.p., 2015. Web. 16 Feb. 2016. Byrne, Ciara. "A Drone With A Sense Of Direction". MIT Technology Review. N.p., 2015. Web. 16 Feb. 2016. Calleja, Niña. "Have Drone? Get License". Philippine Daily Inquirer 2015. Web. 16 Feb. 2016. Chiappetta, Marco. "Facebook's Aquila Aircraft, Which Can Beam Data At 10Gb/S Using Laser Beams, Is Complete". Forbes 2015. Web. 16 Feb. 2016. Conservationdrones.org,. "What Are Conservation Drones". N.p., 2013. Web. 15 Feb. 2016. Dela Paz, Chrisee. "PH Issues 1St Drone License; Mulls More By Yearend". Rappler. N.p., 2015. Web. 16 Feb. 2016. Dillow, C. (2014). Get ready for ‘Drone Nation’. Fortune. Retrieved 17 February 2016, from http://fortune.com/ 2014/10/08/drone-nation-air-droid/ Drone Analyst,. "Six Trends Driving The Commercial Drone Market In 2016 And Beyond - Drone Analyst". N.p., 2016. Web. 16 Feb. 2016. Dronecenter.bard.edu,. "Drones In Southeast Asia â “ Center For The Study Of The Drone". N.p., 2015. Web. 16 Feb. 2016. Estopace, Eden. "Drones Aren't Just For Fun". The Philippine Star 2015. Web. 15 Feb. 2016. Florida Politics,. Drone. 2016. Web. 16 Feb. 2016. Knight, Will. "5 Robot Trends To Watch For In 2016". MIT Technology Review. N.p., 2016. Web. 16 Feb. 2016. Knight, Will. "New Boss On Construction Sites Is A Drone". MIT Technology Review. N.p., 2015. Web. 16 Feb. 2016. Knight, Will. "This Surveillance Drone Never Needs To Land". MIT Technology Review. N.p., 2015. Web. 16 Feb. 2016. Lazada.com,. Syma X11C RC Quadcopter. 2016. Web. 16 Feb. 2016.

HYPERTECH MAGAZINE | AGSB INFOTE CLASS MM02 | SY 2015-2016

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Lazada.com.ph,. "Drone Camera For Sale - Camera Drone Price List, Specs & Reviews | Lazada Philippines". N.p., 2016. Web. 15 Feb. 2016. Monzon, A. (2015). BusinessWorld | Philippines places emphasis on drones’ search and rescue, not military, capabilities. Bworldonline.com. Retrieved 19 February 2016, from http://www.bworldonline.com/content.php? section=Nation&title=philippines-places-emphasis-on-drones&8217-search-and-rescue-not-militarycapabilities&id=102969 Nesta.org.uk,. "Drones: A History Of Flying Robots | Nesta". Web. 15 Feb. 2016. Schlag, C. (2013). The New Privacy Battle: How the Expanding Use of Drones Continues to Erode Our Concept of Privacy and Privacy Rights. Tlp, 13(2). http://dx.doi.org/10.5195/tlp.2013.123 Simonite, Tom. "FAA Will Test Drones’™ Ability To Steer Themselves Out Of Trouble". MIT Technology Review. N.p., 2015. Web. 16 Feb. 2016. Skyeye Inc.,. "About". N.p., 2016. Web. 15 Feb. 2016. sUAS News,. "Philippines :- CAAP Issues First 'Drone' License - Suas News". N.p., 2015. Web. 16 Feb. 2016. The Economist,. "Welcome To The Drone Age". N.p., 2015. Web. 16 Feb. 2016. URSULA Agriculture,. "About - URSULA Agriculture". N.p., 2013. Web. 16 Feb. 2016. Vanian, Jonathan. "Behind The Scenes With Facebook™’s New Solar-Powered Internet Drone And Laser Technology". Fortune. N.p., 2015. Web. 16 Feb. 2016. Villasenor, J. (2011). The Drone Threat to National Security. Scientific American. Retrieved 17 February 2016, from http://www.scientificamerican.com/article/the-drone-threat-to-national-security/ Weinreich, A. (2016). Forbes | Entrepreneurs. Forbes.com. Retrieved 17 February 2016, from http:// www.forbes.com/sites/andrewweinreich/2016/01/13/hydroswarm-roadmap-video/#4c58024d3e68 Wikipedia,. "Unmanned Aerial Vehicle". N.p., 2016. Web. 15 Feb. 2016.