HYPERTECH Infote M02 | June-August 2019
The Neo(n) edition
Featuring
Neo means new or a revived form of.
Biohacking Smart City Immersive Technology AI platform-as-a-service
03 Foreword
20
Contents
Professor Gary Grey
04 Biohacking 17 Smart City
Chan | Felias | Pago | Pineda | Ursolino
Arce | Carreon | Bok Im | Lapada
29 Immersive Technology
Caperiña | Enriquez | Fabian | Parel | Valdoria
45 AI Platform-As-A-Service
Portia | Cello | Flameño | Lee | Tejada
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Foreword The underlying emerging technologies which enable these featured technologies are the convergence of Internet of Things, Artificial Intelligence, Big Data, Augmented and Virtual Reality, and Cloud Computing. The key word is that all of these are still EMERGING. Thus, while they hold tremendous potential economic and social benefits, there are certain adverse and possibly unintended consequences which could negate these benefits. Artificial intelligence has the power to help businesses as well as employees by providing greater data insights, better threat protection, more efficient automation and other advances. However, if misused, artificial intelligence can be a detriment to individuals, organizations, and society overall. For instance, “bots” are now rampant among social media, generating political propaganda or “fake news” intended to adversely impact or unjustly inflate people’s opinions of various political candidates or personalities, thereby lowering the quality of discourse and public faith in reporting institutions. Hence, it is imperative to establish moral guidelines and boundaries for the use of artificial intelligence in business. The convergence of these technologies point to the emergence in turn of new business models. Biohacking evolved from the a trend in self-monitoring technology using devices that can track heart rate, blood pressure, and calories burned. From Smart Homes and Smart Offices emerged the concept of Smart City. Augmented Reality converged with Virtual Reality to form Immersive Technology. The whole gamut of Artificial Intelligence hardware and software technologies converged to become cloud-based platform-as-a-service business model. The featured articles conduct a SWOT analysis of these technologies, cost-benefit analysis, and explore the ethical and nation-building implications of these technologies.
Gary A. Grey, MBM, is a consultant for software development engaged in creating optimal decision-making systems and intelligent process support software for the global market. He is concurrently a faculty member of the Ateneo Graduate School of Business where he teaches Information Technology, Business Intelligence, EMarketing, Technopreneurship, and E-Commerce. In the Ateneo School of Medicine and Public Health, he teaches Health Informatics. He took up undergraduate studies at De La Salle University where he graduated Magna Cum Laude major in Economics in 1972. He served in the banking community for the last 26 years with stints in Union Bank of the Philippines, Bancom Development Corporation, and PCIBank.
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Biohacking Biohacking is the use of function-enhancing drugs or the use of external or internal implants to improve a person’s cognitive function, memory and creativity. Biohackers have set up laboratories or workshops in warehouses, garages, and other such spaces.
It is also known as do-it-yourself (DIY) biology. The increasing awareness in biohacking, occurrence of chronic diseases and demand for smart devices and drugs are factors to drive the market growth over the forecast period from 2017 to 2023. According to the research of Market Research Future, the biohacking market can grow in size at a 19.42% CAGR due to the continuous technological advances. However, the lack of security in the practice may prevent the market growth.
GRP1
Radiofrequency identification (RFID) technology usage in medical devices combined with the diffusion of internet of things (IoT) in healthcare, fitness, and consumer electronics is expected to also increase the market demand.
Venessa Chan
Zeny Pago Aaron Ursolino
Kirsten Felias
Jomar Pineda
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Biohacking Industries RFID / Microchipping The report of IDTechEx showed that the market of RFID will increase to $4.09 billion by 2021 as compared from $1.17 billion in 2011. On Pets
In PH, PLARIDEL launched its PET iChip in 2003. It is the first pet identification system in the country to offer implantable microchip for pets allowing each pet to be positively and permanently identified with a unique non-repeating ID number. The microchip, almost the size of a grain of rice, non-migrating, hypoallergenic and practically limitless in operating life. Another company, Petdentity, also offers microchips for pets with System and Mobile app. Their vision is to declare Philippines Rabies Free by 2020. There is a dedicated Pet Data Storage System which stores the owner and pet’s identification and also tracks record of pet vaccination and medical history. The data gathered will be submitted to PhilAHIS. The sustainable and easy access System is free for all Filipinos.
In October 2017, the City of Makati has formally launched its citywide pet microchipping program on more than 30,000 cats and dogs from 27 barangays and six villages for free. In October 2018, The Cebu City government, through the Department of Veterinary Medicine and Fisheries, adopts the widely-used microchipping of dogs and cats to minimize the growing number of stray pets. In March 2019, Muntinlupa City, through a memorandum of agreement signed by its Mayor Jaime Fresnedi and Petdentity Philippines Inc. founder Denis Reyes, pet owners can have their pets registered for a microchip for a fee of P250 at the Muntinlupa City Veterinarian Office.
60 On Livestock
The market for RFID tags for animals, farming and food grew in 2010 due to European Commission (EC) laws that require sheep and goats to be RFID tagged for disease control. Canada, Germany, New Zealand, Australia, Brazil and other countries are also legislating RFID. The reasons for the fast adoption of RFID are for disease control, cost control, safety, crime prevention and improving customer service. Both the forward and reverse supply chains are involved. As of May 2019, the gross value of livestock production the Philippines amounted to P75.4 billion at current prices. The use of RFID in the livestock industry in the Philippines will drive growth and improve safety.
On Humans
When everything’s at your fingertips becomes literally possible. The first experiments with an RFID implants were carried by the British scientist Kevin Warwick in 1998. His implant was used to open doors, switch on lights and cause verbal output within the building. Throughout the years, it has gained popularity both positively and negatively. In 2002, silicon chips containing their medical records were injected into some Alzheimer's patients. However, it was outlawed and the technology never took off. In 2004, the FDA first approved the Verichip (now called Positive ID), an RFID Chip that would allow physicians to easily access patient’s health records. In 2012, FDA approved the first digital pill called Proteus. It is a one square millimeter chip made of entirely edible ingredients and is activated when it comes into contact with stomach acids. Within five minutes after it being swallowed, it will send out information to a nearby smartphone or computer.
70 The data can then be shared to family members or doctors. The chip can also track your temperature, heart rate, movement and sleep. In 2015, Epicenter, a Swedish company, have implanted willing employees with microchips. This allowed them to store their credit cards, id cards, keys, gym cards and train tickets. In 2017, a company called Three Square Market based in Wisconsin, USA made headlines when they implanted microchips in 80 of their employees allow them to scan into the building, buy food and log into computers.
Health / Biolothicalgy Simple Biohacking
Biohacking can also be found in simple, every day practices that people do, as compared to more extreme examples that can be seen throughout this paper. Picking up its definition that it is a do-it-yourself (DIY) practice, some examples of simple biohacking include:
1
Meditation - a practice done since the ancient times, where the mind is trained to focus on a single thought. Meditation ‘hacks’ the mind, reducing stress for the person and allows them to deal with anxiety better.
3
2
Intermittent Fasting - a concept that requires a person to ‘fast’ for extended periods of time, with the goal of managing weight and overall health. Some approaches to intermittent fasting include eating within 8 hours in a day, and ‘fasting’ for the rest of the 16 hours, or eating normally for 5 days in a week, and eating reduced calories for the remaining 2 days.
Sleep Hacking - deemed as one of the most important means to maintaining good health, some people ‘hack’ into getting the prescribed 8 hours of sleep by creating a restful environment. Removing ‘screen time’ before going to bed, turning down the lights, and following a strict bedtime schedule are some simple examples of how people do sleep hacking. Some gadgets help as well, such as sleep-tracking and sleep monitoring devices (e.g. Fitbit).
80 Reproductive Health - Fertility Treatments
Modern technology now offers treatments that can help increase chances of couples or families who want to have babies. These treatments are undergone by one or both partners, with medications or with minor surgeries.
IUI
Intrauterine insemination (IUI) - where fertilization is assisted and sperm is inserted directly into the uterus
IVF
In vitro fertilization (IVF) - eggs are fertilized and developed into embryos inside a laboratory, and then embryos are placed in the uterus
There are instances that complications or failure to conceive babies still happen. Plus the fact that this kind of treatment is very expensive. Doctors still recommend families to be prepared with the possibility of an unsuccessful procedure, and to set limits as to how far they can go with ‘trying’ to conceive via this route based on their finances.
Open Source Biohacking / Community Biolabs / DIY Biology
Open Source Biohacking can be likened to open source code writing or programming. Open Source Biohacking is a growing bio-technological movement of individuals, communities, and small organizations with the objective to study and apply biology and life science using the same methods as traditional research institutions either as a hobby or to make profit out of it. Participants are given a platform to share in terms of combining ideas and coming up with a new medicinal formula, or any other item or material of value that humans could use to be more efficient or solve a medical problem. Crowdfunding is being used to fund this kind of projects and Community biolabs are nonprofit organizations that provide citizen scientists access to scientific equipment and training they need to push through with their low-budget research.
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Military The world's militaries are in a race to expand human thresholds for pain and cognition and the U.S. is no exception. The revelation that Soviet Union had developed an extensive biologicalweapons program caused US’ Defense Advanced Research Projects Agency (DARPA) to accelerate their most radical super soldier science programs with the life sciences at the fore. In 2014, DARPA launched, the Biological Technologies Office (BTO), uniting projects into one umbrella office, focusing on restoring and maintaining warfighter abilities. Military veterans who suffered from unique environmental stressors could benefit from supplementation from nootropics. Although very few studies were looking at nootropic compounds in specific veteran populations, the science on the effects of nootropics on conditions relevant to military veterans is promising. Based on statistics, one in three veterans will develop a mental health or behavioral adjustment disorder in their lifetime after serving military duty.
'It is important to recognize the value and flexibility of open-source software inside the military's traditionally closed-source world, advances in prosthetics, and what biohacking might mean for the soldier of tomorrow.' - General James Cartwright during the Military Open Source Conference
SWOT Analysis RFID/Microchipping on pets and livestock is widely used than it is for humans. Strengths and opportunities of the offering is undeniable and may replace some of the current technologies we have. To illustrate prior years change, the use of maps to google maps and waze or debit cards to Apple Pay. However, it needs more testing to ensure there are no long-term health implications. We have no generic insulin in the market and with this many go without insulin and suffer complications caused by diabetes. We can see a great potential of the idea of open source biohacking as this project may bring the insulin to the most disadvantaged groups in the community. Open source biohacking encourages collaboration from the public giving equal opportunities to innovate. However, this may also pose quality issues because of the reliability and credentials of the community scientists. Another threat in the community are side-effects of self-testing. Hence, there must still be some form of monitoring and regulation.
01 Weaknesses
Growing acceptance of the public Supported by the government Subsidized by the government
Limited information on long term effects Data privacy issues Data updating is not real-time
Threats
Strengths
Widely Available Affordable price Convenience of storing medical data Track/reunite with pets and livestock Efficiency in operations of meat farms
Opportunities
RFID / Microchipping - Animals
Substitute products that are not intrusive Government regulations Objection from religious groups
Weaknesses
Growing acceptance of the public Adoption in medicine and military Application in information mngt Reduce cost and improve efficiency
Limited information on long term effects Data privacy issues No universal standard Incompatability with others
Threats
Strengths
Seamless implants Convenience Multitudes of use and applications
Opportunities
RFID / Microchipping - Humans
Privacy and safety concerns Substitute products that are not intrusive Government regulations Can be weapons against others
11 Strengths
Can help with depression and stress Adopters of the technology
Weaknesses
Limited information on long term effects Data privacy issues Data updating is not real-time
Opportunities
Value in care of combat veterans
Threats
Biohacking - Military
Can also be used by terrorists
Weaknesses Threats
Religious objections Unnatural for some Alternative substitutes
Weaknesses
Further research is needed to lower the unsuccesful rate
Chance of failure is still there Financial aspect, still expensive
Quality of output Reliability of the medicine
Threats
Strengths
Give families the precious chance the chance to have kids
Opportunities
Fertility Treatments
Safety concerns for self-testing Government regulations New technology Risks of implants
Strengths
Inclusive innovation Lost cost of use Accessible to everyone On-going developement
Opportunities
Open Source Biohacking
Changing landscape of the industry Crowdfunding for interested parties Sidestep patents
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Cost-Benefit Analysis Microchip in Pets Total cost is approximately PHP 1,350 The owner has the responsibility of updating of pet records with the provider is needed from time to time. Update is not real-time and will need 3-5 working days. Updating of records done manually Majority of pets has minimal to zero side effects. Bleeding may occur at the location of implantation
Some benefits include Serves as a lasting, fool-proof and tamperproof identification of all animal species
VS
Increased chance of reunification of lose or stolen animals with their owners Allows trace-ability in the event of disease outbreak and promoting responsibility
For Humans Total cost is approximately USD 300 Though unknown and unproven, studies on pets said it may cause cancer while also facing social acceptance issue It may also result to incompatibility with other medical equipment such as MRI
Some benefits include Convenience for payments, memberships and can also serve as a key later on
VS
RFID chips are the size of grain of rice
Serves as a lasting, fool-proof and tamperproof identification - which can also be used for crime-management Storage for medical history for quick administration of medicine or procedure
Fertility Treatment Total cost is approximately PHP 767,000
Some benefits include -
Potential reaction to fertility drugs including hot flashes. Mood changes and headaches Cramps and a small amount of bleeding may occur after collecting eggs. May result to ectopic pregnancy or multiple births. IVF may also be less successful for older people
VS
Possibility of being able to bear a child. May be able to help with proper family planning and spacing of kids May also be the key to save (some) marriages. Helps in psychological state of couples
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Ethical Implications RFID - Microchip Implants
The use has been around for a couple years and is best known by the public in helping reunite lost pets and their owners. Gaining its popularity on human use has attracted the Military attention of the evangelical Christian communities, linking it with the apocalypse depicted in the biblical Book of Revelation, “[The beast] causes all, both small and great, rich and poor, free and slave, to receive a mark on their right hand or on their foreheads, and that no one may buy or sell except one who has the mark or the name of the beast, or the number of his name.” This passage is the origin of beliefs around what would eventually become known as the “Mark of the Beast”. Christians or not, the concern raised by the public are issues on privacy and side effects of the frequency it emits that might affect our health.
RFID - Microchip Implants
In the Philippines, while fertility treatments are already being offered, there are still services that are not provided. These include (1) third-party IVF, or in simpler terms, sperm/egg/embryo donation and surrogacy, and pre-implantation genetic diagnosis (PGD) where profiling of embryos are done to find out any abnormalities before implantation.
Open Insulin Project (DIY Biology)
How comfortable are we with self-experimentation? No law says it is illegal to do selfexperimentation but what is our threshold for this? In Europe, a private person who creates a patented invention or uses a patented method in his own home for personal goals generally cannot infringe on a patent. However, in the US, the law is stricter as it forbids anyone from making, using, or experimenting with an invention, even when the use is non-commercial.
How comfortable are we with self-experimentation?
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Nation-Building Implications The first benefit is the democratization of healthcare. Despite declaration from the government that healthcare of the citizenry is important, primary healthcare remains to be elusive for most Filipinos given the cost that comes with good health. Some result to selfmedication while others simply wait to let it pass or even ignore their ailment.Â
Military With biohacking, it might be possible that some drugs or methods will be available to a lot more Filipinos.
Second, access to more economical and widely available healthcare solutions. Since there will be less monopoly from doctors and pharmaceutical companies, the hope is that cheaper and more affordable drugs and methods will be available to the citizenry. In a way, biohacking provides alternative option to traditional ways of healing oneself or body tracking. Unfortunately, testing will continue in order to come up with the best and scalable hack and test participants will mostly come from those who cannot afford or those that are with less or little hope. However, it can be mitigated by ensuring that proper laws and regulations are in place. Further, this will give birth to ethical debates given some technology will take years before with proven long-term effect. With the proliferation of biohacking, some might also be encouraged to conduct unregulated tests and take risks with little guidance on possible effects.
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Sources Bloomberg. (n.d.). Retrieved from https://www.bloomberg.com/news/articles/2018-1019/biohackers-are-implanting-everything-from-magnets-to-sex-toys Biohacking Market Research Report- Forecast to 2023 | MRFR. (n.d.). Retrieved from https://www.marketresearchfuture.com/reports/biohacking-market-5155 RFID for Animals, Food and Farming 2011-2021: Forecasts, Technologies, Players. (n.d.). Retrieved from https://www.idtechex.com/en/research-report/rfid-for-animals-food-andfarming-2011-2021-forecasts-technologies-players/252 https://psa.gov.ph/sites/default/files/SWINE%20SR_2018_0.pdf Microchip tags for pets. (2004, March 20). Retrieved from https://www.philstar.com/lifestyle/modern-living/2004/03/20/243283/microchip-tagspets#oOKMQYb1T87d9tSE.99 Makati launches Asean's first pet microchipping program. (2017, October 12). Retrieved from https://businessmirror.com.ph/2017/10/12/makati-launches-aseans-first-pet-microchippingprogram Microchipping humans wields great promise, but does it pose greater risk? (2019, January 30). Retrieved from https://www.pbs.org/newshour/show/human-microchipping-sparksdebate-over-privacy-exploitation EHR Microchips: The Past, Present, and Future | Healthcare Tech. (2018, January 3). Retrieved from http://cliniciantoday.com/ehr-microchips-the-past-present-and-future Scientists race to develop microchips to monitor the body's health. (2014, June 1). Retrieved from https://www.scmp.com/lifestyle/article/1522642/scientists-race-develop-microchipsmonitor-bodys-health 7 simple biohacks for beginners. (2019, March 12). Retrieved from https://www.newsweek.com/biohack-biohacking-beginners-1328530 Fertility Treatments For Infertility. (n.d.). Retrieved from https://www.plannedparenthood.org/learn/pregnancy/fertility-treatments Infertility - Diagnosis and treatment. (2018, March 8). Retrieved from https://www.mayoclinic.org/diseases-conditions/infertility/diagnosis-treatment/drc-20354322 Streams, K. (2012, December 18). The military's future lies in biohacking and open-source software, retired general says. Retrieved from https://www.theverge.com/2012/12/18/3780140/military-biohacking-open-source-software https://hvmn.com/biohacker-guide/cognition/military-veterans-and-biohacking
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Sources Primer Media Inc. (2018, September 30). RFID Rules and Regulations You Need to Know. Retrieved from http://primer.com.ph/tips-guides/2018/09/30/rfid-rules-and-regulations-you-need-to-know/ Microchipping of Animals. (n.d.). Retrieved from https://www.avma.org/KB/Resources/Reference/Pages/Microchipping-of-Animals-Backgrounder.aspx Chip Implants: The Next Big Privacy Debate. (2018, November 25). Retrieved from https://www.govtech.com/blogs/lohrmann-on-cybersecurity/chip-implants-the-next-big-privacydebate.html Microchip Implants: Big Brother in a Chip Coming Our Way? (n.d.). Retrieved from https://www.symantec.com/blogs/feature-stories/microchip-implants-big-brother-chip-coming-ourway Cost of Services. (n.d.). Retrieved from http://www.katoreprobiotechcenter.com/price/index.html IVF - In Vitro Fertilization. (n.d.). Retrieved from http://www.stlukescarmi.com/services/ivf-invitrofertilization Frith, J. (2019, April 3). What your pet's microchip has to do with the Mark of the Beast. Retrieved from http://theconversation.com/what-your-pets-microchip-has-to-do-with-the-mark-of-the-beast-114493 https://www.cell.com/trends/biotechnology/fulltext/S0167-7799(18)30200-2 Inclusive Innovation in Biohacker Spaces: The Role of Systems and Networks. (n.d.). Retrieved from https://timreview.ca/article/1137 https://www.inverse.com/article/9988-how-the-pentagon-is-building-the-enhanced-super-soldiers-oftomorrow Having a baby in the Philippines? Hospital, midwife, delivery and IVF costs. (2018, July 27). Retrieved from https://transferwise.com/us/blog/cost-of-having-a-baby-in-philippines News, A. (2016, October 12). How to freeze your eggs: Sam Oh tells story. Retrieved from https://news.abs-cbn.com/life/10/12/16/how-to-freeze-your-eggs-sam-oh-tells-story All Information About IVF Cost In Philippines 2019. (2019, April 3). Retrieved from https://www.selectivf.com/ivf-cost-philippines/ Human Microchipping: An Unbiased Look at the Pros and Cons. (2016, July 22). Retrieved from https://www.freecodecamp.org/news/human-microchipping-an-unbiased-look-at-the-pros-and-consba8f979ebd96/ Dvorsky, G. (2015, March 27). This Biohacker Used Eyedrops To Give Himself Temporary Night Vision. Retrieved from https://io9.gizmodo.com/this-biohacker-used-eyedrops-to-give-himself-temporary1694016390 IVF in Philippines, find a clinic for IVF in Philippines. (n.d.). Retrieved from https://www.healthtourism.com/in-vitro-fertilization/philippines/
A smart city is an urban area that uses different types of electronic Internet of things (IoT) sensors to collect data and then use these data to manage assets and resources efficiently. The IoT can collect a huge amount of information from its different sensors or monitoring equipment that could be processed and studied to help with the decision making on how the services should provide to its constituents. That services could be from different spectrums like transportation, safety, utilities and efficiency, emergency responses and preparedness, and basic service the city needs like food, shelter, and healthcare.
GRP2
All of this is possible with a Big Data Analytics that provides an algorithm according to the need and expectation of every citizen.
Migi Arce
Che Bok Im
Joseph Carreon
Mark Lapada
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Smart City
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Makati Smart City By 2050, it envisioned that two-thirds of the world’s population would live in cities. It envisioned by The Economist, a weekly magazine-format newspaper, in a video entitled “Transforming cities with technology” published in October 2017. City living is an inevitable challenge to city leaders. As the urbanization progresses rapidly, so do the internal migration of those, who seek Military for a better quality of life. This matter was justified by Ban Ki-moon (2017) as he defined migration as “ (unorg)an expression of the human aspiration for dignity, safety, and a better future. It is part of the social fabric, part of our very make-up as a human family.” In first world countries, like Singapore, South Korea, and Japan, old challenges brought by political, environmental, social, and economic externalities are dealt with in a new approach. They are transforming their cities with technology.
Here in the Philippines, the City of Makati is a forerunner in the pursuit of becoming “Smart City.” Also, in 2017, the city government entered into a public-private partnership (PPP) contracts with the private-sector partners for five landmark digital projects (Ciriaco, 2017). Makati City is known for its large central business and financial district, the Makati CBD. Hence, the city is considered one of the financially richest cities in the Philippines. A first-class urbanized city in Metro Manila, the City of Makati, has a population of 582,602 people (PSA, 2018). It covers an area of 21.57 square kilometers or 3.5% of Metro Manila. The city hosts the biggest banks and corporations, the highest number of embassies, and the most affluent residential enclaves.
Technical Environment There are two major components the Smart city have, IoT or Internet of Things and Big Data. Both of these are used to help the city administrator in managing. Internet of Things (IoT)
The Internet of things (IoT) is the extension of Internet connectivity into physical devices and everyday objects. Includes electronics, Internet connectivity, and other forms of hardware (such as sensors), these devices can communicate and interact with others over the Internet, and remotely monitored and controlled.“ With further advancement of the internet, M2M (machine-to-machine) communication, and development of new application created this new technology. Different applications get innovated that would automate monitoring and action of the specific function controlled remotely in a central command station. The different applications discussed later and how it affects the life of its citizens.
91 IoT composed of Hardware and Software. Its hardware includes sensors, actuators, controllers, CCTV, networks, servers, routers. Software composed of API (Application Protocol Interface), UI (User Interface), OS (Operating System), BI (Business Intelligence) Analytics, and Cloud.
User Interface
Military
Gateway
IOT Components
Cloud
Analytics
Thing or device
Military It has a lifecycle, the sensors collect data, transmit it through a gateway or internet, and the data is received by a server. It will pass through different networking elements like switches and routers, Internet gateway, Internet Service Provider, Data center, and then to the server. The data will then be processed by the application and crunched to different application modules and could be store in a database. All these data will be analyzed by a Data scientist where it will be used to feed a logic or algorithm that could result in an action or intelligence. This action will then be processed, transmitted, and received by an actuator or a controller to execute the command.
Collect
Communicate
Analyze
Act
02
Big Data and Analytics
"Big data" is a field that treats ways to analyze, systematically extract information from, or otherwise deal with data sets that are too large or complex to be dealt with by traditional dataprocessing application software. Data with many cases offer greater statistical power, while data with higher complexity may lead to a higher false discovery rate. Significant data challenges include capturing data, data storage, data analysis, search, sharing, transfer, visualization, querying, updating, information privacy, and data source. Big data was initially associated with three key concepts: volume, variety, and velocity. Other ideas later attributed to big data are integrity and value. A lot of forecast or predictions on how the data handling will be in the future. And how fast it grows every year. Storing this information is also a question and how fast you could extract a specific item from this big collection of information. Does the existing application can still support it? Big data has a reason why it should call like it. It is designed to handle a huge amount of data where it can be stored and extracted the way it expected.
A Smart city requires a lot of computing powers to be able to comply with the demand of almost real-time response to its users. They will invest in the latest hardware technology, a robust application, a lot of storage devices, high-speed network speed, and internet connectivity. A knowledgeable person is needed to activate more business intelligence capabilities by designing, configuring, implement the system. They should be able to extract an accurate customer requirement and come up with a valuable output.
Service Spectrum According to International Case Studies of Smart Cities of Inter-American Dev’t Bank (IDB), the following scales describe the smart services domains that city government can provide for the public.
Transportation & Urban Mobility Safety & Citizen Security Emergency & Response Environment Energy Efficiency Citizen Interaction and Communication
Transportation is traditionally one of the most technology-driven sectors of every city. Under the Transportation & Urban Mobility domain are bus Information and management, parking information, traffic information, adaptive traffic signal control, traffic violation enforcement, and electronic road pricing. These service systems are just a few possible applications of information and communication technology.
11 The Philippine government accords safety and citizen security high priority for its role as one of the key foundations of development (NEDA, 2017). Applying it in a local government setting, service systems for intelligent crime prevention, electronic police center, and community policing are the few examples for Safety and Citizen Security service domain. A lot of emergencies can occur in our community at any given time. Hence, emergency response is also a vital service that the local government should provide. Emergencies like medical assistance, road accidents, fire rescue, earthquake response, and other forces of nature can endanger the community. The consequences of climate-change like instants flooding caused by typhoons or heavy snowfalls needs to be well managed to prevent adverse impacts to cities citizens and businesses. And a smart city could mitigate the adverse impact by providing smart service systems such as intelligent emergency management, emergency medical service, road incident management, and disaster management system.Â
The environmental change affects its cities and their inhabitants. It brings new challenges for city planners, such as the need to improve air and water quality, and control noise pollution to create a healthy and enjoyable environment for city dwellers. - Vivencio Dizon, CEO of BCDA
Water and waste management are included in the areas concern of every city environment. And these concerns are opportunities for information and communication technology to address. Service systems such as water management system, waste management system, and environmental preservation system are the possible solutions.
22 Citizen interaction and communication. A basic requirement for inclusive development is that our peoples are proud of being Filipino and that they fully trust their government. Hence, it will need Malasakit at both ends – from the government and the citizens (NEDA, 2017). This objective can be supported by the city government using technology in services like egovernment portals, public communication system, and various mobile applications. In the service spectrum, the basic features that a city may provide by the generation of knowledge and intelligence. And it is usually understood about the value added that is generated for the management of a city when data from municipal services are interrelated (Santander, Spain. Managing the city information in functions and media such as monitoring, data collection, control, data processing, and information production, information communication with citizens, and information sharing with relevant agencies (i.e., police and patrol cars, fire stations, military bases, and other related departments). Transportation and Urban Mobility
At present, the whole Metro Manila is being challenged by this decades-old problem of mass transit. And every city connected and//or adjacent to the main thoroughfares of the metro is definitely suffering either directly or indirectly. Makati City cannot be spared from this problem. It is also known to have serious traffic congestion, especially during rush hours. Commuters even considered walking 8 km because of stagnant traffic. This situation within Makati City congruently affect the to and fro of the flow of vehicles in EDSA. The lack of overall infrastructure investment, such as roads and another mode of transportation to mobilize people within the city efficiently is one of the major cause. Top Gear, an automobile magazine, featured J.P. Rizal in the list of 8 Places that highlight the sad state of Manila traffic in 2018. They described it as all hell can break loose as it opens up to both ways of traffic. The intersection with Makati Avenue is especially notorious for its stoplight (TopGear, 2018).
32 Intra-City Subway Project
Intra-city mass transit is a basic service than can be fund in every city in a first world country — accurate arrival and departure time of cars, convenient access to stations, and clean platforms and premises. City leaders have already envisioned it in their pursuit of becoming Makati Smart City. Rappler reported that the City of Makati signed a memorandum of agreement with the Philippine Infradev Holdings Inc for their ambitious subway project in December 2018. According to the report, its a joint venture between Makati City and a consortium of local and foreign investors, with no cash out in the part of the city (Rappler, 2019). The subway system will have two tracks, up to 10 underground stations, and air-conditioned coach, which can accommodate 200 persons per car. The entire system spans 10 kilometers with a train yard, maintenance depot, and a central command center at ground level.
Safety and Citizen Security
Makati is a Central Business district. People go here to work. They may come from different nearby cities and provinces. Some decide to stay and look for a place. New people, new environment. Imagine that a lot of diversity is coming in and out of the city. Opportunities exist for everyone, for those with good intention and even the bad ones. Crimes could happen anywhere. It’s the government responsibility to keep the city safe and secure. If its people feel that they are not secure and safe, they could go somewhere else. The business could go away also. And that would be bad for a big city like Makati. Its citizen can report crime through the conventional way of calling the police or any local enforcers. The response time could take a few minutes or more than an hour after the crime happened. There are challenges also in gathering evidence due to the unavailability of witnesses. Places that are not well lit could be a possible venue for those criminals. This is not good for those businesses that operate at night, specially for BPOs. Their employees go out at night and travel to their office where the risk goes high. The Makati statistics of the crime rate is not bad compared to other cities. It is considered as one of the safest city in Metro Manila and even in South East Asia. The local government effort to make it is very commendable. At present, with the objective of keeping the reputation as the prime city of the Philippines and one of the safest and secure city, they recently launched an APP called “Makatizen App”. Its purpose is to provide a digital citizen app where its constituents could get the latest news, updates, events, and projects from the city government. It’s also where the citizen can report an emergency which we will discuss further on the next section.
42 Emergency and Response
An emergency could take someone precious life. Response time is very crucial, specially for incidents like fire, typhoon, and flood. Although a CBD like Makati city is a far more advance against their neighbors, it is still very crucial to keep its citizen safe. In March 2018, Makati launched their DRRM program that includes a new state-of-the-art command center, new equipment like an aerial ladder, a chemical fire truck, motorcycles with fire suppressant, ambulances and other accessories that will help them perform their duty of saving a life. They also have a mobile command center that could serve as a back-up when their main command center will not be available due to a 7.2 earthquake. In line with this, a Makatizen app contains a feature called Maka-SOS. It has a menu that will ask you specific information about the report you would like to ask you some important details that you would like to report. This information will be transmitted to the command center, and a responder will try to contact your registered number to validate the reported incident further. Once it is confirmed, they will instantly dispatch their responder to proceed to your reported location.
A working CCTV installed across the City would also help validate the incident and provide vital information to the responder that could help them analyze the situation better and prepare to respond to its citizen.
These times demand connectivity, and we are fast-tracking our digital transformation through finding innovative ways to better serve and connect with our Makatizens. - Mayor Abby Binay
52 Environment
In the annual report for CY 2018 of the Environmental Management Bureau (EMB) and in accordance to the National Emissions Inventory, 88% of air pollutants came from mobile sources such as cars, motorcycles, trucks, and buses in Metro Manila (EMB, 2018). In the same report, EMB stated the status of National Air Quality as within the air quality guideline value of 25 µg/Ncm. Having a slight decrease in the concentration (PM2.5) was noted from 21 µg/Ncm in CY 2017 to 20 µg/Ncm in CY 2018 (p.8). As for Makati City, PSA (2018) reported having 140 µg/Ncm as per information gathered from the monitoring station located at Makati Bureau of Fire Comp., Ayala Avenue Cor. Buendia St., Belair, Makati City. This value is 55% higher than the guideline value of 90 µg/Ncm for one-year averaging time. This effect in air quality is definitely attributable to the thousands of vehicles entering the city. To address it, the accessibility and accuracy of real-time and detailed data from the bureau is quite a challenge. Therefore city leaders may capitalize on IoT and Big Data by employing smart sensors in major thoroughfares to monitor and make appropriate decisions in managing air quality in the community. GSM Association (GSMA), a trade body that represents the worldwide mobile communication industry, has featured an online air pollution monitoring platform in their online material (GSMA, 2018). Developed by China Mobile with its partner Guangruida Information Technology Company, the platform works with IoT sensors and cameras to monitor the air pollution induced by the mushrooming construction sites in ChongqingIndustrial City, central China. Details of how the system works were explained - the IoT devices collect real-time information about the atmospheric pollutions such as particle sizes and concentrations, local weather conditions, and the cameras record images of the site activity. All the data is automatically uploaded to the China Mobile OneNET platform via WIFI or cellular connectivity. The data is then processed following the specification of the local Ministry of Environmental Protection (MEP). Construction sites, which fail the emission standards, trigger alarms in the platform, which are then automatically reported to the MEP who respond appropriately. Makati City can definitely improve its current air quality condition by being vigilant in obtaining the right, accurate, and real-time information.
62 Citizen Interaction and Communication
Makatizen App includes other modules like Makagimik to can do advisories and announcements about Makati city programs and events. MakaNegosyo is an important tool for businesses that would like to invest in the city. They also include procedures on how to apply for a business permit and requirements to get approved. Makati also releases their Makatizen card. This card is used by its resident to avail the City services like hospital, senior discounts, and other allowances that they provide to the marginalized residents.
Soon, Makati City will become a fully digital and technologyembracing Smart City
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SWOT Analysis
S Strengths
O
Opportunities
Active involvement of the city leaders Availability of communications infrastructure Proper financial support Geographic Information System Treatment of environmental issues
Availability of mature technologies appropriate for local conditions A strong and cross-party political commitment to the project
W Weaknesses
T Threats
Availability of expertise skills and methods in designing solutions Lack of acceptance of new technologies Cooperation among stakeholders
The resistance of opposing political parties Legislation issues Data security and privacy issues hinder data collection
According to BusinessMirror, Makati City Mayor Abigail Binay stated that they view the project proposal from Globe and its subsidiaries for the rapid transformation of Makati into the country’s first digital city, where citizens and civil servants to experience the optimum benefits of the latest innovations in information technology. Also, having a Geographic Information System enables a city to manage its resources such as demography, utility, facility, and the risks efficiently. Makati City’s portal released that the City Government of Makati was granted the 2018 Special Achievement in Geographic Information System (GIS) Award during the 38th ESRI User Conference held at San Diego Convention Center in California, USA by the Environmental Systems Research Institute (ESRI). The City of Makati is the only local government unit in the Philippines to receive the award for its use of GIS technology in local governance.
(Government should) provide the opportunity and mechanisms for the private sector enterprises and international agencies to participate in this really groundbreaking project, developing this new global city that is at par with the best cities in the world - Vivencio Dizon, CEO of BCDA
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Sources
Retrieved from https://en.wikipedia.org/wiki/Smart_city Retrieved from https://en.wikipedia.org/wiki/Internet_of_things Retrieved from https://en.wikipedia.org/wiki/Big_data Retrieved from https://foreignpolicy.com/2019/04/16/cities-will-determine-the-future-of-diploma... Retrieved from https://www.un.org/sg/en/content/sg/statement/2013-10-03/secretary-generals-rema Retrieved from https://www.gsma.com/iot/smart-cities-resources/smart-cities-environment/ GSMASmart. (n.d.). Retrieved from https://www.gsma.com/iot/smart-cities-resources/smart-citiesenvironment/. Makati transportation - Philippine Guide. (n.d.). Retrieved from https://www.philippinesinsider.com/transport/makati-transportation/
Mocon-Ciriaco, C. (2017, May 30). Mayor Binay leads Makati’s Smart City evolution. Retrieved from https://businessmirror.com.ph/2017/05/30/mayor-binay-leads-makatis-smart-city-evolution/ Smart Offshore Solutions. Retrieved from https://smartoffshoresolutions.com.au/whyus/ Valencia, C. (2019, February 7). The Philippine Star. 3 public-private partnerships project secure preparation funding. Retrieved from https://www.google.com.ph/amp/s/www.philstar.com/business/2019/02/07/1891409/3-public-privatepartnerships-projects-secure-preparation-funding/amp/ PRESS RELEASE. (2019, July 30). 'ALL SYSTEMS GO' For Historic Makati Subway Project. Ref.: Makati ICRD, 8998938. Retrieved from https://www.makati.gov.ph/content/news/4961 PRESS RELEASE. (2019, June 1). HIGHLIGHT OF ACCOMPLISHMENTS PER SECTOR, 2018. Retrieved from https://www.makati.gov.ph/content/mayors-corner/achievements/686 BCDA. Retrieved from https://bcda.gov.ph/exclusive-bidding-first-sustainable-smart-city-philippinescollaboration-private-sector-and-0 Rappler.com. (2019, March 26). DBM ‘reenacts’ Makati City budget for 2019. Retrieved from https://www.google.com.ph/amp/s/amp.rappler.com/nation/226715-dbm-reenacts-2019-makati-citybudget De Jesus, D. M. (2019, February 7). Daily Tribune. Philippines’ ICT status. Retrieved from https://www.google.com.ph/amp/s/tribune.net.ph/index.php/2019/02/01/philippines-ictstatus/%3famp_markup=1 Department of Information and Communication Technology. Programs and Projects. Retrieved from https://dict.gov.ph/major-programs-and-projects/ Retrieved from https://surge.org.ph/landconference2017/
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Immersive Tech Immersive technology is one of the greatest technological innovations of the 21st century in terms of education, healthcare and recreational industries. Immersive Technology is defined as any technology, software and hardware systems that extends reality or creates a new reality to get more information than real surrounding can offer leveraging 360 degrees space. Immersive Technologies Are Moving Closer to the Edge of Artificial Intelligence – Both the immersive technology and artificial intelligence are collection of subset technologies where in the future both immersive technology and AI to be mutually beneficially.
GRP3
A crucial part to make this happen is the deep learning technology, a machine learning technology that teaches computers to do what comes naturally to humans.
Nancy CaperiĂąa
Michael Fabian Edelyn Valdoria
Lilicar Enriquez
Ernesto Parel Jr.
03
Types of Immersive Tech
VR
Military Virtual Reality
The definitions come from both virtual and reality. ‘Virtual’ is defined as almost or nearly as described as what we usually experience and on the other hand ‘reality’ basically means near reality. We can therefore say that Virtual Reality is having an experience to near reality in a virtual space. In VR, the person can be part of a virtual world to create a simulated experience to become part of that world and feels like real. In today’s world, VR is most known in the entertainment industry like immersive films and video games. Virtual Reality takes us even further to a world we have never experienced in order to gain real world experience. Recent studies show how the VR can take us in terms of other fields aside from entertainment industry. Now, VR can be used to different fields like medicine, sports, architecture and arts. In Virtual Reality, the technology uses sensors and math to identify the user’s action. The VR technology completely take over your vision to give you the impression that you are in a different world. The VR technology as explored by other companies is not only limited for gaming and it that it is also ideal for training and simulations just like NASA is using VR to train astronauts for planning missions and simulating life on Mars.
13
AR
Military Virtual Reality
MR
Military Virtual Reality
As opposed to VR, the AR simulates artificial objects in the real environment. The difference between AR and VR is that while VR is completely immersive, AR only partly overlays virtual objects over the real world. Augmented Reality is blending of digital elements to superimpose graphics, audio and other sensory enhancements. This immersive technology has been around for years, but it wasn’t until Android and iOS came equipped with GPS, camera and AR capability.
This is the most recent development where two forms of reality technology blending in the physical world with the digital world. As the next evolution of in human, computer, and environment interaction and unlocks possibilities that before now were restricted to our imaginations. Adding virtual elements to work environments that make people more productive. For example, a chef who wears glasses that visualize temperatures, tastes and aromas in a kitchen. This might allow the chef to look at a dish and know it is too salty or cold.
23
Timeline 1960
Ivan Sutherland, offered Ultimate Display which serve as window to virtual world. Sutherland invented the first sought of augmented reality device called The Sword of Damocles
1990
Initial exploration into 3D and a 360 degrees field of view, simulated experience, virtual worlds and head-mounted displays (HMD) had emerged. Tom Caudell coined the term ‘Augmented Reality’
2000
Virtual experience became more established with the presence of smart phones, powerful computer graphics and motion controllers. Hirokazu Kato released a software called ARToolKit that can capture realworld actions and combine it with interactions of virtual objects
1980
1995
2015
The term ‘virtual reality’ enter the mainstream and the concept already existed in popular imagination. The gear including goggles and gloves was developed by Jaron Lanier founder of VPL Research
The mixed reality was used by companies like Mixed Reality Laboratories headed by Hideyuki Tamura took on an ambitious research initiative to effectively blend the entire spectrum of these realities, which was coined as Mixed Reality
Consecutive releases of VR for gaming industries – Sony PlayStation and Samsung Gear. More gaming companies also ventured to VR
As the digital realm continues to grow, immersive technologies are the next logical step for the marketplace and here are what we can look forward for Immersive Technologies
33
Future State Augmented Reality (AR) is undoubtedly one of the most exciting technological innovations around considering the global market predictions to be worth approximately $133 billion by 2021. On the other hand, Virtual Reality (VR) a virtual reality company, Varjo designed a headset for professional use by the likes of automotive engineer, architects, filmmakers, pilots and even surgeons with partnership on large companies like Airbus, Audi, BMW, Volkswagen, and 20th Century Fox. By 2020, augmented reality, virtual reality and mixed reality immersive solutions will be evaluated and adopted – Immersive technology will be widely use on the marketing aspect of the company. In example, enhanced customer service includes customers can virtually test different materials, lights and home products just like for clothing retail shops how online stores have gone bigger, but consumers are hesitant to buy online as they still require fitting or have a look if the clothes suit them.
'The market has been over-hyping what will be the massive success of immersive technologies, and AI, so it is important not to overpromise on what the offerings will be for the next few years.' - Tuong Nguyen Principal Analyst, Gartner
Immersive Technologies Are Moving Closer to the Edge of Artificial Intelligence – Both the immersive technology and artificial intelligence are collection of subset technologies where in the future both immersive technology and AI to be mutually beneficially. A crucial part to make this happen is the deep learning technology, a machine learning technology that teaches computers to do what comes naturally to humans.
43
SWOT Analysis
S Strengths
W Weaknesses
O Opportunities
T Threats
Provides Outstanding Visualizations That Aren’t Possible in The Traditional Classroom – To let every student have an immersive experience, it is helpful to have them take a look or even feel what is like given a certain situation.
Lack of flexibility – While we like students will be immerse with the virtual experience, questions may not be answered unlike the traditional classroom teacher and classmates can clarify or provide answers to student’s questions.
Increase student engagement – More and more schools now invest in the VR technology to encourage their attention rather than just reading book or the traditional method of teaching.
Functionality issue – Compatibility of immersive technology devices to just common devices may be a challenge.
Eliminates the language barrier – Gone are the days that the language of most devices is just specific to English. Most devices now have offering to switch on what language the user will prefer with immersive technology. It will be useless if you immerse in a world but the language will not follow the location too.
Addiction to virtual world – In fascination of the virtual world, users may find it challenging to go back to the real world.
Doesn’t feel like work – When we enjoy the augmented reality, or virtual or hologram, we enjoy it and therefore it doesn’t feel like work anymore.
Exploring beyond what we can imagine – Immersive technology let us explore to the world we’ve never been too.
Deteriorates Human Connections – Human connection may be lost due to less contact to people.
Privacy – Just like for augmented reality, locations are published to consumers and may bring privacy issues.
11
Applications Medical Application
1 2
Treating Chronic Pain - Medical VR has been proved efficient to stop the brain from processing pain and cure soreness in the hospitalized patients. This is actually beneficial as it shortens the patient’s stay time in the hospital and also lowers the cost of the entire treatment process. Several software was created to redirect the minds of the unwell patients and let them concentrate more on the VR worlds that can help the patients reduce stress. Helps in Fighting Memory Loss - It is estimated that there 5 million cases of Alzheimer’s disease in America alone. Memory loss can affect several families around the world and it becomes difficult to find out what’s happening inside the brain when memories are formed or recalled. With this troubling situation, it becomes important for neuroscientists to get a deeper insight on the subject. They are trying to understand what happens to the brain when new information is passed on to it. They also use a conjunction of brain implants and VR tasks for an immersive real-world experience and did also capture brain signals and oscillations for a clear idea.
3
Enhanced Surgeries – The use of 3D models by surgeons to plan operations is one of the most auspicious elements that VR brings to the medical industry. By visualizing a complicated 3D organ on paper, really doesn’t give the full picture. This is the one key reason why 360-degree graphics come to the lead and it also appears to be a better way for patients and doctors to communicate.
Medical VR is enriched with endless possibilities and even when the area is freshly introduced there are already some great examples of VR embarking a positive effect on the lives of both patients and medical practitioners.
63 Education and Training Application
Immersive technology has skyrocketed across the United States in the past five years. She also said that “The impossible is becoming possible, and students are using virtual reality to go places they’ve never been before.” The users of VR had expanded over the year that it already reached 171 million in 2018 from 200,000 people in 2014. Aside from application in education, immersive technology has also moved into the workplace that aids in training their employees. It has many different applications, for pilots, training doctors and other situations that can’t be replicated easily that allow people to be in the moment and experience it. Virtual Reality in Gaming
For the past few years, the Virtual Reality gaming industry has already won significant market size and still shows fast growth rate. At first, the impression of virtual reality was captivating and a little bit amazing. Since the release of first prototypes of Oculus VR and Samsung Gear VR, the new age of virtual reality has started. In 2015, HTC launched a Vive headset which is equipped with the hand controllers and tracking technology. By the end of that year, global revenues of Virtual Reality in the gaming business reached $4.3 billion. After a year, there were 230 Virtual Reality development companies that are producing both virtual reality hardware and software. Based on the data and huge demand, experts predicted the 25-27% annual growth rate of VR gaming market, with total revenue exceeding $45B in 2025.
Virtual Reality in E-Commerce
One of the most current technology inventions is virtual reality e-commerce. It combines the features of traditional shops and the ones on the internet that makes the shopping experience more sociable. Virtual and augmented reality change the way businesses function. VR/AR enabled a device with specific software that allows the customer to see and feel the product, just like it is possible in the shop. Online shops prove that virtual shopping experience allowed to lessen the returns by 23% with minimal investments.
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Cost-Benefit Analysis Immersive technology thru Virtual Reality and Augmented Reality has been tied to gaming for a while, but as the technology progresses, it is showing its potential across industries. A survey report in March 2019 Augmented Reality and Virtual Reality presented by global law firms Perkinscoie, LLP and XR Association showed that respondents overwhelmingly agreed this expansion will continue, noting that immersive technology will be as ubiquitous as mobile devices by the year 2025.
Total Cost of Ownership (TCO) - Capital Investment, Hidden Costs
Minimum requirements for a user’s computer shall have the capacity of either the Oculus Rift or the HTC Vive. Also, VR ready personal computer builds and pre-builts amounting to $500 to $2000. In addition, Virtual Reality headsets offers different design and features that make them stand apart. Prices ranges from $89.9 to $399 depending on the results that user want. Below is the different VR headsets available in the market:
Samsung Gear VR
Oculus Go
207mm x 120mm x 99 mm weighing 345g, 64GB onboard storage and MicroSD slot Powered by smartphone (Samsung Galaxy S9, S9+, Note 8, S8, S8+, S7, S7 edge, Note5, S6 edge+, S6, S6 edge, A8 and A8+.) Works on both Wi-Fi and cellular networks
190mm x 105mm x 115mm weighing 467g, 32GB or 64GB storage Wireless and doesn't require a smartphone in order to work Works over Wi-Fi and is powered by Android internals and a Qualcomm Snapdragon 821 processor
USD 89.9
USD 199 (32 GB) USD 249 (64 GB)
83 Oculus Quest
Standalone virtual reality headset that doesn't require a PC to run, instead, it runs on the power of a Qualcomm Snapdragon 835 mobile chipset Has four sensors built into it to detect movement and track the controllers Faster charging
391mm x 165mm x 307mm weighing 460g Requires a gaming PC in order to run Most immersive VR headset
USD 399
USD 399
Oculus Rift
For recreational applications, hidden cost may also include the software which is $20-60. Also, different applications are available and can downloaded in google playstore or apple store. Sample of NEXT VR application below is free, however, specific content may require payment or free memberships to a third-party service.
Direct and Indirect/ Strategic Benefits Recreational (e.g., Gaming, Movies, Museum, e-Commerce)
Reduced cost. Instead of buying a ticket and going to a sports arena, musical concert or movie house, you can have very good virtual seats and watch your favorite players, singers and actors at the comfort of your home. No need for plane fare, accommodations or movie fee Multiplayer gaming/ entertainment experience where a group of people can be involved More accessibility of products in e-Commerce Medical
The users can watch different videos (i.e., surgical videos and medical talks) from medical centers around the world Provide safe and repeatable site-specific environment, reflecting different realworld conditions, thereby helping users learn necessary skills and doctors understanding human internal anatomy Surgical robots being controlled by people in VR, ensuring that procedures are done with the utmost precision
93 Education and Training
Virtual jobsite and the experience allow the employees to have a realistic environment and increased employee engagement than traditional learning. Providing access to all information in real time Facilitating training and mirroring real-life experiences, even for remote employees Enhancing creativity in product design and development Financial Analysis (ROI, Payback Period, ROA, ROE)
According to the survey report of Perkinscoie, LLP and XR Association in March 2019, Investor’s survey said they put more money into immersive technology last year than the previous years and that they would continue to invest in the coming year. Also, the result of the survey showed that the top three (3) immersive technology applications received the top investments namely entertainment, healthcare and medical devices, and education and trainings with 54%, 43%, and 20% respondents, respectively. Safran Nacelles, a French industrial manufacturer of the housing that holds aircraft engines/ equipment, employed the use of a single VR single in its research and development for Aircraft Equipment named Airbus A330neo in 2017 and 2018. Below is the latest published Financial Statements of Safran. Financial Statement Analysis
Though there is an increase in Revenue of Euro 21,050 million, an increase of 32.0% in 2018, operating expense increased which resulted to lower Profit Margin of 68% in 2018 as compared to Profit Margin of 114% in 2017. Together with the increase in Revenue is the growth in Asset amounting to Euro 40,620 million. Net Income was Euro 1,981 million (basic adjusted EPS of Euro 4.60 and diluted adjusted EPS of Euro 4.54). In 2017, Net Income – Group share amounted to Euro 2,393 million comprising Euro 1,563 million of net income from continuing operations and Euro 830 million of net income from disposal gains. Ratio Analysis
Both the Current Ratio and Quick Ratio of Safran decreased. Current ratio in the prior year was 1.28 and decreased to 1.03 in the current year. This decrease in Current Ratio indicates a reduction in the company’s ability to service its obligations due in the next 12 months. Quick ratio in 2017 indicates higher good liquidity to meet its short-term obligations than in 2018. There was a decrease in Return on Asset and Return on Equity to 4.9% and 16.1%, respectively, for the year 2018. Growth rate of 32% of Revenue was Euro 21,050M (i.e., including a ten-month contribution of Euro 3,799 million from Zodiac Aerospace and Euro 338MM of currency impacts).
04 Return on Investment
Research and Development Cost (Cost of Investment) for Safran amounted to Euro 906 million and Euro 1,123 for 2018 and 2017, respectively. The application of Virtual Reality Immersive Technology in its Research and Development in producing Airbus A33neo, Safran generated higher Return on Investment 680% for 2018 as compared to 524% Return on Investment in 2017. Internal Rate of Return
For initial cost of investment amounting to Euro 1,123 million in 2017, assuming with life of project for 5 years and increasing cash flows in 2019 to 2021, using the actual data of cash flow in 2018, the Internal Rate of Return (IRR), will be 147% (this is the percentage to measure the investment’s rate of return for 5-year investment period).
Cash Flow (in Euro Million)
3,000
2,000
1,000
0
2017
2018
2019
2020
2021
Payback period
Cost of investment in 2017 and in 2018 amounting to Euro 1123 million and Euro 906 million, respectively, will have payback period to recover on the first quarter of same year.
14
Ethical Implications Social Isolation
Socializing is a human trait that is hardwired into everyone’s DNA as far back as when human still lives on caves. However, Immersive Technology such as Virtual Reality, Augmented Reality and Mixed Reality somehow is slowly altering these human traits by means of “detaching” and seducing users to neglect the real-world social connections. Immersive Technology is gradually replacing it with a make-believe reality where users emotionally connect with avatars instead of real people. Where they interact with digital space and environment, instead of nature and animals. And a world where they can turn on and off at their own will.
'Man is by nature a social animal - society is something that precedes the individual' - Aristotle
Psychiatric Effects
Maintaining a good mental health requires real face-to-face interactions with the surroundings, environment, weather, animals, and of course with other human beings. Substituting these crucial factors with a Virtual, Augmented, or Mixed reality will have major effects in the long run. Experts in neuroscience and the human mind exclaimed about “depersonalization”, which can result in a user believing their own physical body is an avatar. There is also a relevant concern that Virtual, Augmented and Mixed realities particularly in recreation or gaming space might expose psychiatric vulnerabilities in some users, generate psychotic episodes, and could cause real-life post-traumatic stress disorder. Data Privacy
Common to all emerging technologies, user privacy must always be the topmost consideration. Given that data networks is crucial and necessary with Immersive Technology being employed. If Augmented reality or Mixed reality is utilized in actual surgical procedure, this most likely involves accessing and using confidential patient data and information. This may also likely include live images of the actual procedure or surgery being transmitted via an IP network. And this can make the patient data and information widely available as ever before, exposing them to anyone who may steal, alter, or misuse the data. Therefore, numerous considerations and protocols must be in place to ensure data security.
24 Distressing Content and Virtual Crime
In terms of ethical and moral domains, there are a lot of unanswered questions still surrounding Immersive Technology specifically on the recreation and gaming arena.
To what extent is it OK to make a game or simulator out of the event of World War II, or the events of 9/11 terrorist attack? Is it really OK to recreate a very devastating and depressing event in human history for recreational use? What if ‘unpalatable’, distressful, and criminal acts (like theft and rape) becomes ‘immersive’ in a form of Virtual or Augmented reality? Should there be limitations on near-realistic representations of these aggressive, unlawful, and perverse behaviors?
Current video game culture has been moving towards Virtual and Augmented Realities as their main selling point to the customers. Video games like Grand Theft Auto may allow a person’s avatar to steal and kill in an almost-realistic environment. At what point does ‘virtual behavior’ constitute a real-world criminal act ? How are we going to manage the execution of crimes in a virtual world ? Immersive Technology is quickly advancing where Virtual, Augmented, and Mixed realities are indeed revolutionary developments in the world of medicine, education, recreation and socialization. It has the capability to make our lives much better — more entertaining, more beneficial, and more exciting. But what happens when the boundaries between the virtual and physical world becomes hazy? It is too early to know what capacity for harm this technology has in the hands of those who do not have a great respect for ethics. Is Immersive technology going to continue to open up new ethical challenges? Or will it be used for the greater good for society in the future?
But what happens when the boundaries between the virtual and physical world becomes hazy?
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Nation-Building Implications Improving the Quality of Education
Obanya (2004) and Posit (2006) states that knowledge-based economy relies on the application of technology in the global context and that it stands on two pillars – globalization and technological changes.
It was conclusive that using VR in classrooms are easier to use, improve memorization of students, and also enhance their ability to analyze problems and apply what was learned. Enhancing Healthcare Systems
Immersive technology can aid in nation building through making healthcare more efficient, thereby enabling to serve more people in less time; it can also aid the medical students in their studies wherein VR is already applied in virtual anatomy, surgery simulation, and even anatomy teaching and learning. Aside from these, VR and AR can also help in exposure therapy, autism treatment, and phantom limb treatment. Through these, and little by little, the healthcare system of the country can be improved.
Other Implications
Aside from the different applications exemplified in this paper, there are other immersive technology applications which can certainly help in nation building: Empowering national defense system through use of augmented reality in military training; Enhancing seaports efficiency through improving performance of terminal operators via use of augmented reality in training of its operators; making building construction more cost-effective by simulating first using augmented reality, and many others.
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Sources AR/VR: How Immersive Learning Technology Is Bringing Education and Training Into the Future by Mariel Cariker posted on September 27, 2018, https://edtechtimes.com/2018/09/27/how-immersive- learning-technology-is-bringingeducation-and-training- into-the-future/ Berk, L. E. (2006). Child development. Boston: Pearson History of AR and VR https://www.colocationamerica.com/blog/history-of- augmented-reality How immersive technology is changing the world by Queen Elizabeth Prize for Engineering https://qeprize.org/createthefuture/immersive- technology-changing-world/ Looking at Education: Immersive Technology is Changing the Way People Learn by Jacquelyn Melinek, March 6, 2019, http://mediahub.unc.edu/looking-education- immersivetechnology-changing-way-people-learn/ Madathil, K., et al. (2017), An Empirical Study Investigating the Effectiveness of Integrating VR-based Case studies in an Online Asynchronous Learning Environment, Computers in Education Journal, Vol. 8, Issue 3; https://www.asee.org/documents/papers-and- publications/papers/CoEd_Journal-2017/JulSep/MADATHIL_EMPIRICAL.pdf Olele, CN., Educational Technology for Nation Building, Journal of Business and Educational Leadership, https://www.questia.com/library/journal/1P3- 3126386871/educationaltechnology-for-nation-building- way-forward Immersive Technologies Are Moving Closer to the Edge of Artificial Intelligence Livingston, M., et al. Military Applications of Augmented Reality, https://apps.dtic.mil/dtic/tr/fulltext/u2/a638065.pdf Paralysed patient walks again in astonishing medical breakthrough by Ian Johnson, August 11, 2016, https://www.independent.co.uk/news/science/paralysed- walk-again-project-patientbreakthrough-a7185156.html
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AI PAAS To introduce particular technologies or services into applications, developers can use APIs without having to write the code from scratch. To put it more simply, API allows developers to plug their own website into another .APIs can be used in many ways to build applications for various purposes.
The host site gets a lot of new features, while developers are provided an avenue to expose their work on more high-profile platforms, while saving time and effort on the groundwork which needed to be done.
GRP4
Companies have begun veering away from costly on-premise setups and have been starting to adopt a cloud strategy, thereby primarily providing huge cost savings to companies. This also allows companies to develop faster innovations, help lower operating costs, run infrastructure more efficiently, and greatly enhances scalability as the business grows and changes.
Portia Brusas
Franco FlameĂąo Louie Tejada
Meyrick Cello
Louise Lee
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API
Application Programming Interface
API or Application Programming Interface is an application interface that provides a developer with programmatic access to a proprietary software application. A software intermediary that makes it possible for applications programs to interact with each other and share data.
How an API Works
API requests
App/ Client
Data source
API response
*looped process
Most Popular API Protocols
1 2
REST (Representational State Transfer). REST is a simple way of sending and receiving data between client and server it doesn't have very many standards defined. You can send and receive data as JSON, XML, or even plain text. It's light weighted compared to SOAP. SOAP (Simple Object Access Protocol). SOAP is a method of transferring messages, or small amounts of information over the Internet. SOAP messages are formatted in XML and are typically sent using HTTP (hypertext transfer protocol). *others: Javascript / XML-RPC
Most API Calls
15 Billlion Calls/Day
10 Billlion Calls/Month
8 Billlion Calls/Month
5 Billlion Calls/Month
74 Cloud Computing
Cloud computing is the use of internet to deliver computing services, such as intelligence, analytics, software, networking, storage and servers. This technology offers economies of scale, adaptable resources and transformation. With savings on cloud services, less operating costs for maintenance/upgrade of physical equipment are needed. Prior to the invention of cloud computing, most companies had been investing in technological resources which entailed huge capital investments, since those resources are purchased and form part of those companies’ assets. However, with the introduction of cloud computing in the 1960s, believed to have been invented by Joseph Carl Robnett Licklider in the 1960s, and with the maturity of companies’ processes to become flexible enough (and risk-averse enough) to adopt a cloud strategy, companies have begun veering away from costly on-premise setups and have been starting to adopt a cloud strategy, where technological requirements are outsourced to a vendor and cost is computed on a pay-per-use basis, thereby primarily providing huge cost savings to companies.
This also allows companies to offer/develop faster innovations, help lower operating costs, run infrastructure more efficiently, and greatly enhances scalability as the business grows and changes. Variations of Cloud Services
IAAS
Infrastructure-as-a-service
Offers infrastructure as merely a foundation, including but not limited to: Virtual machines (VMs) Software-defined networks Attached storages
In IAAS, subscribers configure and manage both the platform and environment, including the deployment of applications. Examples: Amazon Web Services Elastic Compute Cloud (AWS EC2) Google Compute Engine (GCP) Microsoft Azure Virtual Machines (VM)
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PAAS
Platform-as-a-service
Offers a platform wherein the vendor manages all components of the technological environment, except the application and corresponding data.Â
In PAAS, subscribers easily create, track, and manage applications without having to worry about the whole infrastructure setting. Examples: Beanstalk by Amazon Web Services CloudFoundry by Cloud Foundry Foundation Google Application Engine by Google Heroku by James Lindenbaum, Adam Wiggins, Orion Henry
SAAS
Software-as-a-service
Also known as on-demand software, where the vendor manages every aspect of the technological environment, including but not limited to:
Applications Runtime Data Middleware Operating Systems Virtualization Servers Storage Networking
In SAAS, end-users typically access the application using a thin client (lightweight computer with minimal computing power, if not none) via a web browser. Examples: Systems Applications and Products in Data Processing (SAP) SalesForce
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Artificial Intelligence (AI)
AI technologies can complete tasks through understanding probabilities of the (most) correct/optimized answer by using data as basis for the response. The leading application of AI today is thru machine learning (ML), whereby computers can be taught to learn without relying on a developer to explicitly write a program for the task required. ML representations are produced when Big data is applied to statistical algorithms.7 These representations learn from different models from existing data. Hence, the bigger data there is to process, the more accurate the predictions. Majority of AI applications make use of algorithms, which are sets of rules/process to be followed by in order to arrive at solutions. AI algorithms solve specific problems by studying big data and then form generalizations or empirical approximations. Algorithms used in AI are often defined as follows:
Classic ML (classification and regression) Deep learning (deep neural nets)
For example, every sector in insurance and healthcare leverage on ML technology to automate routine tasks and offer creative insights. Likewise, platforms utilizing electronic commerce make use of ML algorithms to facilitate online transactions and provide tailor-fit-to-customerbehavior offerings. Moreover, ML chatbots allow marketers to effectively enhance customer experience and generate leads. More and more, businesses use AI solutions to gain competitive edge. AI aids managers generate insightful business data and predict outcomes more accurately. According to RightScale, more and more companies are using and implementing cloud services to reap the benefits from ML by incorporating AI into different applications, and products. Service companies also uses AI. Big data analytics uses AI to deliver reports timely. For a long time, AI machines were massive and expensive, programmers were also expensive and in short supply, and companies did not even have data in the first place. As cloud computing becomes more accessible, companies are now able to gather and store more data. International Data Corporation released an estimate that the costs that the world is willing to make for AI will continuously grow from $12B in 2017 to $57B by year 2021. This is equivalent to more than 400%.
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Trends in the Technology Evolution of Cloud Computing
Majority of companies today are moving towards using cloud computing services, which can be public, private, or hybrid, and are delivered via the internet. PAAS provided the first step into hosting services in the cloud. Next wave is attributed to IAAS, and the next was centered around data. Cloud service providers today offer a wide range of data platform services, including relational databases, big data management, and graphical databases. The next wave expected to drive the growth of cloud computing is AI. Applications of AI
Major vendors offering AI services are Amazon, Microsoft, Google, and IBM Cloud. Other top of the line technology companies have also started to go with the trend. These companies include Oracle Corporation, Baseboard Management Controller Software Inc., and SalesForce. Offerings include: Fully-managed ML Services Add richer ML technology using patterns, built-in models, and drag-and-drop capabilities for developers For building more customized ML frameworks ML Frameworks Allow developers to produce their own model which absorbs data gathered overtime Highly dependent on data but can have also other usages Allow building ML tasks without the need of a big data environment Cognitive Computing APIs Common applications include neuro-linguistic programming, computer language, vision, translation and mapping of information, searching, and detection of human emotions. Produces AI technology APIs. Power is limited to handling of generic use cases. With one API call, the integration with application can easily be performed. Cloud vendors are moving towards custom cognitive computing That enables customers to enjoy the benefits of custom datasets To enable customers to utilize their own data for development of cognitive servicesÂ
15 Bots & Digital Assistance Includes chat bots which use natural language processing algorithms to learn from interactions with humans, eventually imitating human language patterns Allows customer service employees focus on more complicated tasks Implemented at the front-end to filter problems for an integrated cognitive response Big hit with end-users Allows website and mobile application developers to easily augment virtual assistants to different applications IBM and Amazon Alexa are main examples of platforms that offer this technology
On top of the infrastructure and APIs, cloud services vendors compete in creating ways for data scientists and web developers. The tool offerings are improved with the data and compute platforms which indirectly drive the consumption of Virtual Machines, storage and others. The data and compute platforms are two critical factors considered to successfully implement AI and ML. More Established cloud vendors started to invest on enhanced development settings and notebooks based on browsers to manage patterns and easily integrate experimentation
Trends are moving forward and towards composite AI, from general PAAS applications and from cloud models of AI-as-a-service, to development of strategies on-the-go for specific problems. AI PAAS hasn’t yet reached such a level of maturity, but it appears an AI PAAS future is inevitable Fusion & Evolution of AI & PAAS
Public cloud providers are exposing APIs and services that can be consumed without the need to create custom ML models. These services take advantage of the underlying infrastructure owned by the cloud vendors. Evidently, AI solutions strongly focus on specific applications. Complex solutions demand combinations of discrete AI services that may include basic horizontal skills (e.g., vision) and specific vertical skills (e.g., price comparisons). A complete AI PAAS solution demands both skills, including access to specific data, training, tweaking, and integration with complementary services.
Horizontal AI Skills General applications; e.g., natural language processing (NLP), image recognition Usually used in conjunction with other applications (not stand-alone) Vertical AI Skills Intentionally created for specific use cases Narrower scope of applications
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SWOT Analysis Strength
1
Utilize AI capabilities no needing to become experts first. Many alternatives are currently made available for use or modification as seen fit but are often not user-friendly. This allows companies to concentrate and focus efforts on core operations, instead of needing to become data and ML experts. Developers spend less time installing and developing the ML technology.
2
Manage many applications easier through the organization and/or integration of different functions of the service, including but not limited to applications, allocations, management, and security. This eliminates repetitive and monotonous work plus integrates best practices for its application management.
3
Can reduce almost 90% of its costs (when compared with internal software available in the market) related to operations, maintenance, and labor. Typically, companies can save almost 50% of labor costs, and have access to lower-cost cutting-edge infrastructure. In conjunction with lower costs, companies only pay for what they use. ML requires a lot of power while running but only for short periods, instead of running it non-stop.
4
Companies to benefit from utilizing data in different applications, thereby increasing strategic flexibility when the need arises based on new and factual information as a result of the AI processes. Companies can deploy changes faster, allowing increased capability to meet demand requirements.
Weaknesses
1
Restricts the company’s control over the management of resources, since reliance is placed heavily on third parties. To address this risk, companies can set service-level agreements with those vendors, but the inherent weakness of such as setup is still prevalent.
2
Reduces the transparency in the administration of resources, especially access-related. Similar to the previous item, clauses can be stipulated in the contract but the inherent limitations of such a setup cannot be discounted.Â
3
Despite allowing companies to save on cost of investment (discussed in the previous section), can also provide an avenue for companies to seek more complicated products and services, which can be more expensive and would require hiring and training (more) specialized personnel.
4
The technology relies heavily on the API and platform. It requires both application and service to match and operate properly.
35
Opportunities
1
Allow businesses to reap the full benefits from automation. AI platforms can provide companies an easy tool which will not require additional skills and can address different AI-enabled automation processes with ease, especially through robotic process automation (RPA).
2
Provide insight on the business opportunities companies can strategically tap into, given AI-assisted decision-making tools. AI gives companies the capabilities to analyze the significance of variables, simulate potential results, and formulate the most optimal solution or action plan based on data gathered.
3
Provide companies more opportunities to innovate, especially in terms of utilizing and maximizing big data and probabilistic programming, wherein the AI platform consider first the objective, and then establish how the outcome can be achieved (in reverse). This can be especially useful for customer service and financial forecasting.
4
Allow companies to more effectively manage their supply chain (logistics and delivery) wherein data can be unified, analyzed, and processed to provide insights to streamline processes. AI-enabled predictive analytics can help companies realize key value-adding processes via through the forecast of demand levels, optimization of allowable routes, and management of possible networks.
Threats
1
Companies can be unwilling to risk their capital investment on a service and apply the service to their current processes which are working fine.
2
(AI) PAAS integration with legacy applications is difficult if APIs cannot handle the interface seamlessly between the applications and the platform. Implementing own (AI) PAAS requires compatibility with internal software and hardware.
3
Using a public PAAS can expose companies to security risks, especially on data confidentiality and integrity. AI and ML rely heavily on big data, requiring companies to share data with third parties. To mitigate this threat, companies must ensure that data access, transit, and storage to servers are secured and only accessible by authorized personnel.
4
With the advent of data protection laws and regulations, companies are also faced with legal and compliance risks. Some industries (e.g., medical) and countries may impose limits on how data is managed in the cloud.
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Applications of AI PAAS Twilio is a platform where communication services, such as text messages, phone calls and video calls, are integrated into an application through different APIs. It can be accessed via internet and billed based on time spent on the application.
Accommodation rental is becoming more of a trend compared to hotel services because of affordability. Airbnb has been looking for ways to provide faster services between guests and hosts. Through Twilio, hosts can confirm reservation wherever they are, as long as they have their mobile phones in their possession. With the automated mobile capability, the waiting time for the potential guests has been significantly reduced. Because of the better and faster service, user experience improved which then resulted in more bookings for hosts.
Zebra Medical Vision applies AI to the field of radiology. By using a specialized examination technology and reading a huge array of medical images, the company claims to predict diseases with high accuracy. To lessen the cost of running the service, it uses Google cloud to store its algorithms. They later on received a Food and Drug Administration (FDA) approval for being the world’s first ever AI Chest X-ray Triage Product. In fact, the latest FDA approval they received was in May 2019. It focused on an AI alert for urgent detection of pneumothorax. The technology has a high potential to reduce turnaround time and provides an accurate basis for radiologist's assessment when making diagnosis. Due to the said AI driven technology, Zebra Medical Vision is to implement the software in Ichilov Hospital in Tel Aviv and will then be used for early detection of breast cancer and osteoporosis at Maccabi and Clalit HMOs.
Peak launched its AI PAAS beta program to increase team productivity using a seamless connection with limitless data source. It enables straightforward implementation across the business. Peak's AI PAAS beta program integrated the system with data science and engineering, thus helping the enterprise users to easily construct and deploy ML solutions in the organization.
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Cost-Benefit Analysis It is important to understand the cost of an AI project in order to appreciate the services platforms provide. Not so long ago, only tech giants such as Microsoft, Google and Facebook had the resources to develop ML-powered software. While it is still a common misconception, leveraging on AI doesn’t cost a fortune nowadays. Thanks to the emergence of various tools, libraries, and frameworks for building ML-based software, the ML technology is becoming more available to businesses. Costs differ from company to company. It all depends on the project scope and complexity, customer and system requirements. The price ranges between $100k-300k, within range of small to medium enterprises (SMEs). An AI project costs depend on the work being done to develop a product. The development work is usually split into several phases. According to Azati, a software and AI developer, understanding the different project phases can help determine the cost. When developing MLbased systems, the following roadmap can be applied:
Discovery & Analysis Phase
At this stage, a feasibility study is conducted based on the business objectives. The AI project starts with analyzing the business processes, data assets, and metrics. Here is where the expected results are set, timetable and budget. The developer and the business stakeholder or clients determine whether or not the AI concept is possible. If all critical data, processes, and metrics are available, scoping is done. Until this point, customers usually do not have to pay. Prototype Implementation and Evaluation Phase
Prototyping is the creation of a business model to test feasibility. Basically, it’s proof of concept. Its form depends on the project complexity and tools used to develop it. Prototypes allow software professionals to confirm client requirements and design specifications. Prototypes are easy and generally, inexpensive to produce and adjustable. The risks and costs associated with software development is manageable. Typically, prototype development costs are about $25,000.
65 Minimum Viable Product (MVP)
An MVP is a real product that is based on the approved prototype. The MVP is a simplified version of the final product. It is a functional product that is used by a small group of real customers and allows the clients and developers to gather important feedback. Modifications done at this phase is still relatively cheaper. On the average, MVP costs vary between $35,000-$100,000, depending on the project size and complexity. Product Release
Finally, the product is launched with the complete features specified in the development stages. At this point, issues and modifications should’ve been addressed to ensure minimal risks, thus the importance of the previous phases. The table below does not include system maintenance costs.
While the cost of setting up an AI or ML project is more affordable now than ever, not all companies are willing to carry the additional cost of system maintenance. Moreover, some businesses have very specific needs that may not require setting up their own system and keeping it. For these needs, subscribing to an AI Platform is a more viable option. The more popular platforms are Google Cloud’s AI Platform, Amazon’s AWS Sagemaker and Microsoft’s Azure ML. Like most *AAS, these platforms allow users to do away with capital expenditures and shift to operational expenditures or pay-per-use.
Cost Accumulation
Rates are usually based on hourly use of machines and the complexity of the project. Without infusing substantial capital, companies can leverage on a powerful platform to cater to their needs. For example, a real estate company can employ an ML service to predict changes in property prices based on data gathered within a specific period only. Therefore, it doesn’t need to maintain its own machine. Basic platform services cost less than $1/hour per machine. In addition, there are different rates for the output data or predictions generated. The total cost a company pays is really determined by how much they use the platform which is maintained by the provider. Different pricing schemes are also made available to the public on platform sites. To illustrate, say a data scientist develops a model and uses AWS Sagemaker for 105 hours. She only needs to pay $4.87. Additional payments will be required based on the amount of data input and output. The total amount can go up to $10.00 only.
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It is apparent that leveraging on AI platforms has huge financial savings and returns as compared to owning a system. The non-monetary benefits are also immeasurable relative to the users. The responsible utilization of such advanced technology will produce the most returns.
Benefits Accumulation
According to GoodData.com, there are 3 key benefits of Artificial Intelligence:
AI can automate manual work. By handling certain jobs, AI allows managers to pursue more important assignments. For example, in the financial industry, with AI processing customer data, it can quickly make a recommendation on credit scores and loan approvals. AI can quickly identify anomalies. Because of the constant learning, AI has the ability to determine patterns and catch irregularities and anticipate issues. This allows managers to be more effective in predicting outcomes and planning for contingencies. HP, for one, makes use of machine learning in setting sales quotas based on historical account buying patterns. AI can drive better customer experience. The ability to cater to customers’ specific needs increases satisfaction and ultimately, revenues. According to chatbot developer Helpshift, 94% of customers dread contacting customer support. While 70% actually welcome chatbots to address their needs.
Companies which upgrade their technologies or leverage on platforms early will definitely reap the benefits. But the true cost of AI cannot be measured by how much is spent setting up a system or subscribing to providers. We should factor in cost savings and other financial benefits as well as non-monetary. Business leaders must strike a healthy balance. For example, process automation may result to efficiency and reduction in manpower overhead. There’s a direct financial benefit. However, upgrading may result to demotivation among employees and can cause performance to drop. In relation to chatbots, the emergence of which has a huge impact in the business process outsourcing (BPO) industry. As chatbots get smarter, the need for human agents diminish. The BPO industry’s immediate benefit is lower cost of labor. However, the macroeconomic impact could potentially be deflating. Complementing industries, from transportation services to commercial and residential spaces, will be negatively affected without the buying power of the BPO workforce.
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Ethical Implications Similar with any other emerging technological developments which would make processes become more efficient by eliminating redundant work and by introducing automation, less manpower will be needed. In this case, the labor force would always need to adapt to changes in the working environment, especially given changes in labor demand requirements. In the eastern region of the globe, common culture suggests that employees seek belongingness in the workplace (via human interaction). The longingness for and expectation of empathy from peers and colleagues defines the working relationship of individuals towards each other. Hence, the idea/thought of speaking to robots is not really entirely welcome. Another implication would be the exposure of personal and confidential data, proprietary information, intellectual property, and business plans, to name a few. A customer’s assurance that data stored in the cloud will not be accessed or shared with anyone is challenged. Although there is an emergence of the development of privacy laws and regulations across the globe, given the setting of AI PAAS, ensuring legal compliance still poses a great obstacle to widespread adoption. In one AI PAAS application, a device has been designed to monitor a person’s medical condition based on personal history, existing diagnosis, and indications to determine the best time whether that certain individual would need to take medication, visit the nearest medical facility, or would need immediate medical assistance like an ambulance to respond to his/her location. In this case, information on medical health and history should always be stored with utmost confidentiality between the doctor and patient. More importantly, people now become dependent on the alerts provided by such devices, and somewhat accepting the risk that at a certain point the device would encounter a computational glitches, where as a result, the patient would be prescribed to take preventive actions to resolve the medical alert. However, the patient’s health can be put in peril due to misdiagnosis. Implications on how to indemnify the aggrieved party would be endless.
The labor force would always need to adapt to changes in the working environment, especially given changes in labor demand requirements.
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Nation-Building Implications
Countless possibilities are in the horizon for these advancements. In the grander scheme of things, this technology would be able to enhance the lives of the peopleas potential for improvement is exponential.
One of Australia’s government healthcare provider tapped a vendor to create one system for the entire country by creating an online tracking, logistics for the ordering, replenishment, demand forecast, and supply of office and medical supplies which allows auditing transactions in real time. In the Philippines, majority (if not all) local government units (LGUs such as barangays and city halls) still do not utilize online bank payroll systems. Those LGUs instead manually hand out of cash. In contrast, if all the Philippine government agencies are linked together in cyberspace as one entity, a centralized identification (ID) system can be implemented and provide convenience. All relevant information would be available to perform any government agency transactions. If used properly, waiting time can be reduced significantly, given that information is readily available. Benefits also include tax computation, income, payables, and benefits becoming efficiently distributed to citizens. Transactions can be tracked conveniently, and processes are further improved, allowing to conduct all possible transactions online. Possibilities are endless. Â
In health, basic tests can be done on actual and information can be uploaded online, and diagnosis can be made. In procurement for services and infrastructure, this can be done without bias or personal preference reducing corruption. In building and construction, optimal costing of building materials and computation for soundness of architectural construction may be done a blip of a second.Â
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Sources https://www.theguardian.com/media/pda/2007/dec/14/thenutshellabeginnersguide https://www.smartfile.com/blog/the-api-infographic/ https://www.fasthosts.co.uk/blog/cloud/people-behind-cloud-computing https://searchcloudcomputing.techtarget.com/definition/Infrastructure-as-a-Service-IaaS; https://medium.com/@nnilesh7756/what-are-cloud-computing-services-iaas-caas-paas-faassaas-ac0f6022d36e; https://azure.microsoft.com/en-us/overview/what-is-cloud-computing/ https://www.tclouds-project.eu/popular-cloud-computing-services-saas-software-as-aservice/ https://www.bmc.com/blogs/ai-as-a-service-aiaas/ https://www.forbes.com/sites/janakirammsv/2018/02/22/the-rise-of-artificial-intelligence-as-aservice-in-the-public-cloud/#48f6e048198e https://www.forbes.com/sites/janakirammsv/2018/02/22/the-rise-of-artificial-intelligence-as-aservice-in-the-public-cloud/#48f6e048198e https://www.tclouds-project.eu/popular-cloud-computing-services-saas-software-as-aservice/ https://www.bigcommerce.com/blog/saas-vs-paas-vs-iaas/#examples-of-saas-paas-and-iaas https://tdwi.org/articles/2017/06/29/ai-as-platform-as-a-service.aspx https://dzone.com/articles/15-business-opportunities-enabled-by-artificial-in https://customers.twilio.com/214/airbnb-streamlined-global-rental-experience/ https://www.prnewswire.com/news-releases/zebra-medical-vision-receives-fda-approval-forworlds-first-ai-chest-x-ray-triage-product-300848867.html https://peak.ai/client-stories/leaf/ https://aws.amazon.com/sagemaker/pricing/; https://azure.microsoft.com/en-us/pricing/
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