hypertech magazine€¦ · virtual reality technology description 1. what is vr? have you read a...

Hypertech Magazine

Emerging TechnologyIn Vitro Fertilization

Virtual RealitySolar Roads

Technology Applications for Business, Industry, Education

Volume M 07September - December 2015

Ethical ImplicationsNation Building

What’s Next?

InSIdE THIS ISSSuE

01 MM Infote Class Photo

02 Forward by Professor Grey

03 Emergeing Technology Reports

03.a In Vitro Fertilization Astor, Franklin Jr. Manrique, Erika Therese Padlan, Jody James

03.b Virtual Reality Biglang-awa, Julieta Choco, Analee Co, Carl Jensen

03.c Solar Roads Posadas, Rachelle Racelis, Charles Vinzon Robles, Andrew Carl

01 MM Infote Class Photo

02 Forward by Professor Grey

03 Emergeing Technology Reports

03.a In Vitro Fertilization Astor, Franklin Jr. Manrique, Erika Therese Padlan, Jody James

03.b Virtual Reality Biglang-awa, Julieta Choco, Analee Co, Carl Jensen

03.c Solar Roads Posadas, Rachelle Racelis, Charles Vinzon Robles, Andrew Carl

Information Technology for ManagersAteneo de Manila universityGraduate School of BusinessProfessor Gary A. Grey, MBM

FoREwoRd PRoFESSoR GREy

This issue of Hypertech E-magazine features 3 emerging technologies:

• VirtualReality • In-vitroFertilization • SolarPanelRoad

WhenFacebookpurchasedOculusRift,apioneerinVirtualReality,MarkZuckerbergcommentedinhisFacebookpage:

“Thisisreallyanewcommunicationplatform.Byfeelingtrulypresent,youcanshareunboundedspacesandexperienceswiththepeopleinyourlife.Imaginesharingnotjustmomentswithyourfriendsonline,butentireexperiencesandadventures.

Thesearejustsomeofthepotentialuses.Byworkingwithdevelopersandpartnersacrosstheindustry,togetherwecanbuildmanymore.Oneday,webelievethiskindofimmersive,augmentedrealitywillbecomeapartofdailylifeforbillionsofpeople.”

ThearticleonVirtualRealityprovidesinsightsonthewaythetechnologyevolvedtowardstheFacebookvisionofa“newcommunicationplatform.”

ThetechnologyofIn-vitroFertilization(IVF)looksintotheSWOTofthistechnologybywhichaneggisfertilizedbyspermoutsidethebody—it’sethicalramificationsandpotentialasamedicaltourismbusinessinthePhilippines.Theriseofthe“testtube”babyandthepossibilityofevolvinghumanstowards“superintelligence”throughaprocessofselectionofbest-of-breedembryosmingledwithadvancesinstemcellresearchstretchestheimaginationonthefutureofmankind.

Theworldisnowlookingtowardsmanyalternativeenergysourcesasthesolutiontowardscontrollingthenegativeeffectsofclimatechange.Whilemostliteratureonsolarenergyarebasedonsolarpanelsattachedinroofsofhousesandbuildings,thearticleonSolarPanelRoad,offersanotherwayofharnessingsolarenergy,throughbuildingsolarpanelsinroadsandhighways.

ThesethreetechnologiesareintheirstagesofinfancybutwhichcouldevolvealmostovernightinquantumjumpsastheyaresubjectedtotheLawofAcceleratingReturnsasinMoore’sLawandinMetcalfe’sLawonthenetworkeffect.

Hypertech MagazineIssueMM07September-December2015

GRouPonEVIRTuAl REAlITyTechnology description

1. what is VR?Haveyoureadabookandwonderedwhatitwasliketobeintheworldbeingdescribed?OrwatchedanNBAgameandthoughtaboutwhatitwasliketobeoneoftheplayersintheTVscreen?Ifthere’sonethingpeoplehaveincommon,it’shavingadream.Thesedreamscanbeaboutreachingacertainplace,beingacertainsomeone,orwitnessingacertainevent.Somearerealisticandsomearewell…far-fetched.Butregardlessoftheworlditbelongsto,wewouldsurelywantthatdreamtocometolifeandwhatbetterwaythantoactuallyexperienceit. VirtualReality(VR)bringsusclosertowardsthisonce-only-thought-of possibility. This technology breakstheboundariesbetweenfictionandreality.Aidedbyanartificialsensoryhardware,itallowsapersontointeractwithacomputer-simulatedworldusingthehumansensesoftouch,sight,smell,hearing,andtaste.Itprovidesanimmersiveexperiencetoavirtualworldnootherexistingtechnologycan.Communication,media,commerceandhealtharejustsomeofthefieldsthatcantakeadvantageofthepossibilitiesofVR.

2. VR TodayAlthoughVRhasbeenaroundfordecades,itwasonlyrecentlythatthetechnologyhasadvancedwellenoughforawiderdistribution.Fromgamingtopolitics,moreandmorepeoplearenowtappinginthepotentialofthisplatform.CNNwillbroadcastanupcomingUSpresidentialdebateinVR.TVtalkshowslikeConanuploadssegmentsoftheirshowinVRformat.TheinevitablegaminglandscapeisnowevolvingwithcompetitionbetweenOculusRiftandPlaystation(Sony)onthehorizon.

AccessibilityseemstobethethemeforVRtoday.Googlecameoutwitha“cardboard”conceptwhichencouragespeopletomaketheirownVRheadsetwithsimpleandaffordablematerialsyoucanbuyatyourlocalhardwarestore.Auser-ownedfulltouchscreensmartphonewillbeusedasthescreenwiththecontentretrievablefromyoureverydayappslikeYoutube.Therearealsoready-madeonesbeingsoldbydifferentmanufacturersfrom$12to$30.Samsung,ontheotherhand,willbecomingoutwithasimilarconceptwiththeirSamsungGearVRthatacts as an accessory to their latest smartphone line-up.Thiswillretailat$350.It’snoweasierthanevertoownaVRheadset.

Oneplus,amobilephonebrand,recentlylaunchedtheirlatestphonemodelinvirtualreality.Unlike

mosttypeoflaunchesthatinvolveanopenspaceandalotofpeople,thisonefeelsmorepersonal.You’llfindyourselfwiththefounderofthecompanytalkingtoyouwhilewalkingyouthroughtheiroffice.You’llthenbeinaroomlisteningto3otherpeopletalkabouttheirexperienceswiththenewphone.Afterwardshe’llbringyoutotheirconferenceroomtolistentotheirengineertalkaboutthephone’sdesignviavideoconferencecall.Inthisset-up,youfeellikeaVIP.

TakingVRupanotch,agroupofengineersinUtahdesignedanewwayofexperiencingthetechnologybymixingitwithphysicaleffectsandenvironments.TheycallitTheVoid.Thiscanbeplayedingroupsmakingithighlyengagingasitisinteractive.Sinceitusesvirtualreality,onlytheimaginationisthelimitmakingitaventurewithsomuchroomforgrowth.TheteambehindTheVoidplanstobringtheir“VirtualEntertainmentCenters”acrosstheglobe.Noplaceintheworldhasprovidedanexperiencelikethis.

3. SwoT Analysis a.Strengths

i.Unparalleled Experience

VirtualRealityprovidesanimmersiveexperience

thatcapitalizesonthehumandreamandexperience.Onlyinourdreamscanwetransporttoafarawaygalaxybattlinggiantrobotsandactuallyfeellikedoingso.Itbringsinanexperiencelikeyou’reinacertainplacewhenyou’reactuallyinanother.Thefeelingfromthatkindofexperienceisverypowerfulandunlikeanyother.Imaginewatchingabasketballgamefromcourtsidewhilesittinginyourownlivingroom.Howconvenient.

ii. Accessibility

TheavailabilityofVRcontentandhardwareisgrowingbytheday.Thereisalreadyanonlinestore(NeutronGadgets.ph)inthePhilippinesthatcarriesVRheadsetssoit’seasyforsomeonetogethis/herhandsonthislocally.Content-wise,thereareseveralofitthatcanbeaccessedviaYoutube.TheseVRvideosarecategorizedas“360”inthesite.

iii. Affordability

VRhasrecentlybeenmadeaffordablethankstothelikesofGoogleCardboardandSamsungGearVR.ThetechnologicaladvancementofsmartphonesandthefactthatitisalreadyalmostanecessityhasallowedVRtobetreatedasmerelyanaccessorytothephone.Gonearethedaysyouwillhavetobuyacompletelyseparategadgetjusttoexperienceit.ItisnolongeranexpensiveideatoentertheworldofVR.

Astor, Franklin Jr.Manrique, Erika Therese

Padlan, Jody James

iv. Massive Potential

AlthoughVRisstillinitsearlystages,itiseasytoseehowthistechnologycanbeappliedtooureverydaylife.There’sjustsomanylimitationsintherealworldthatthevirtualworldcanmakepossible.

b. Weaknesses

i. Unfavorable History

Unfortunately,historyisnotonthesideofVR.It’satechnologythathasbeenaroundfordecadesasevidencedbythefailureofNintendo’sVirtualBoy20yearsago.Althoughthefailurecouldbeaccountedtoseveralfactorslikethesteeppriceandnon-deliveryofatruevirtualrealityexperiencewhichisbeingaddressedbythelatestofferings,it’satestamentonhowthemarketisnoteasytopenetrate.

ii. Young Platform

VRisstillconsideredtobeinitsearlystagesandthere’sstillalotofworktodo.MarkZuckerberg,whoisthefounderofFacebookthatboughtOculusfor$2B,addressedthecrowdattheOculusConnectConference last September 2015: “This is going togrowslowly.Ifyouthinkaboutthearrivalofcomputersorsmartphones,thefirstunitsshippeddidnotshiptensofmillionsintheirfirstyear.Buttheyprovedanideaandmadeitreal.”Itwillstilltakedecadesbeforewerealizethefullpotentialofthis platform.

iii. Possible Psychological Effects

Givenitsyoungnature,thelongtermeffectsareyettobeseen.Itcannotbediscountedthatsuchanimmersiveexperiencecouldbringinsomenegativepsychologicaleffectsontheperson.Eveninnon-VRgamingenvironments,therehavebeencasesofsocialisolationwhereinapersonwouldratherinteractwiththevirtualworldratherthantherealworld.VRcouldpossiblyincreasethelikelihoodofapersontosufferfromthisasthetechnologytransportstheuserto an alternate reality. Desensitization is another possibilityasthepersoncouldn’tanymoretelltherealconsequencesbroughtaboutbyhis/heractionsoutsidethevirtualworld.Otherseverecasesleadstodepressionandsocialisolation iv. Possible Physical Effects

Aswithmanyotherthingsinlife,virtualrealityisnotforeveryone,especiallythosewhosuffermotionsickness.Thehead-mounteddisplayswillneverfeelnaturalandcouldcausephysicaldiscomfortafteraprolongeduse.Thereshouldbeacertainlevelofresponsibilityandawarenessonthepartoftheusersincehe/shewillbevulnerabletoaccidentsandotherdangersgiventhatallormostofhis/hersenseswillbeimmersedinthemachine.

c. Opportunities

i. Overwhelming Support

TechcompanieslikeGoogle,Sony,Samsung,HTC,Intel,HPandFacebookareinvestinginthistechnologywhichshowstremendousconfidenceandpromisetothefutureoftherevolutionaryplatform.Filmmakersarealsoconsideringadoptingthetechnology for their future releases.

ii. Public Attention

WithsomanyeyesontheVRtechnologyrightnow,itisexpectedtoblossomlikeneverbefore.ItwasfrontandcenterinCES2015.TherearenewsandarticlesaboutVRpoppingupeveryday.Peoplearejusttalkingaboutit.Ifthetechnologyprovesitself,publicclamorisnotfarbehind.

iii. Flexibility


Padlan, Jody James

AlthoughVRprovideshighmarketpotentialinthegamingfield,othersectorslikebusiness,media,education,andhealthareexpectedtoleverageinthistechnology.Itcouldprovidethesefieldsaboostintheproductsandservicesthatwerenotpossiblebefore.ThisplatformcanbethenextPCifdoneright.

iv. Open Source

Razer,aperipheralscompany,announcedanopensourcedevelopmentkitforVRinCES2015.Thiswouldallowmorecontenttobemadeavailableforthis platform. d. Threats

i. Misuse

There are going to be concerns on the power of virtualrealitybeingputinthewronghands.TheadultfilmindustryisalreadylookingatproducingpornographyinVR.Anotherconcernisthepossibilityofacriminalactbeingcommittedinthevirtualworldoralsoknownas“virtualcrime”.Thoughnotreal,avirtualdeathand/orinjurybroughtaboutbythisactcouldcausedistressandotheremotionstothereceivingpartyintherealworld.

ii. Augmented Reality (AR)

Asomewhatsimilartechnologythatisalsomakingwavestodayisaugmentedreality(alsoknownasmixedreality).UnlikeVR,thismixesrealitywithvirtualbyhavingvirtualobjectsinteractwithrealworldobjects.MicrosoftrecentlyunveiledtheirlatestARproductcalledHololens,whichwillbeavailabletosoftwaredevelopersinearly2016.Imaginefightingrobotsthatweresuddenlypoppingoutfromthewallsofyourlivingroom.NASAandAutodeskarereportedlyalreadyworkingonthistechnology.

VR Applications

1. Architecture

Traditionalarchitecturecanshowphysicalrooms,butwalkthrutheclientinexperienceisdifferent.ThisishowVRcanbesousefulinthefieldofarchitecture.Notallpeoplecanunderstand2Dlayoutsorrenderings.Usingthistechnology,walkingthruaspaceandexperiencewouldhelpnotjustdesignersbutunitbuyersaswellinthecaseofourcompany,DMCIHomes.Foreveryprojects,weneedtodoaphysicalmock-uptoletprospectivebuyershaveanideaofwhattheyaregoingtopurchase.ThrutheuseofVRtechnology,constructioncostwill be lower. Some points to highlight:

a.Reducedcostandrisks b.Replacephysicalmodelunit c.ExperiencefromhumanPOV d.Lowerproductioncostthruless drawingrevisions e.Moreinnovations f.Canbeusedmultipletimesandto multipleprojects

2. Engineering

“UseofVRinengineeringcouldrevolutionizedevelopment.”ThiswasthestatementofFordMotorswhofirstusedVRindevelopingtheircardesignsinceyear2000.Ford’simmersionlabletdesignerswalkaroundthecarusingVRheadsetwhileotheremployees are watching them on big screen to see howtheyfeel.FordusesVRtoexaminetheentireexteriorandinteriordesign,aswellastodrillrightdowntohowaparticularelementlookssuchasadashboardorupholstery.OthervalueofVRinEngineering:

a.Lowerproductdesigntimes/prototyping b.Increasedquality c.Reducedrisk d.Betterinnovations e. Better acceptability f.Costsavings g.Engineerscanworkononecargloballyat the same time.

3. Marketing

Visualizingproductsusingimmersionwillgivepeopleadifferentwayofthinkingabouttheproduct.It’sgoingtoallowfordifferentbrandexperiences.ValueofVRinmarketingarefollows:a. Powerfulexperiencesb. Better customer engagementc. Recordandanalyzecustomerd. Virtualshowroom,noneedforbigspacee. Infinitevirtualspacef. Can generate remote sales

4. Training

VirtualRealityhasbeenadoptedbythemilitary,theseincludeallthreeservicesarmy,navyandairforce.VRisparticularlyhelpfulforthemenin uniform training in combat situations or other dangeroustaskwheretheyneedtolearnhowtoreactoncertainsituations.AVRsituationsimulationallowsthemtodosowithouttheriskofdeathorseriousinjury.Militaryusesofvirtualreality:

a.Flightsimulation b.Battlefieldsimulation c.Medictraining(battlefield) d.Vehiclesimulation e. Virtual boot camp f. Mission planning g.Rescuehostage h.Disasterevacuation i.Controlledscenarios

5. Medical Field

VirtualRealityprovideanewapproachtoresearchandeducationinmedicine.Experimentingmedicalresearchwithvirtualpatientswillbeareality.With the simulation of the entire physiology of the humanbody,theeffectsofvariousillnessesororganreplacementwillbevisible.Forlearningstudentslearningtooperate,virtualrealitywillbeabestformoftraining.Theywillabletooperate,commitsomemistakesbutwithoutriskinganyone.OtherusesofVRinmedicine: a.Dangeroussurgeryisperformedwithout harming anyone

b.Canproviderealtimefeedbackintraining c.Anatomycanbeviewedonvariousangles d.Simulationforsurgery

i.Freedomtofail ii.Controlledtraining iii.Repeatability/Availability

Cost-Benefit Analysis1. TotalCostofOwnership(TCO)–CapitalInvestment,HiddenCosts

TheofficialpriceofOculusVirtualRealityheadsetwhichwillstillbelaunchedinQuarter1of2016willbeUS$350.APCpowerfulenoughisneededtoruntheVRheadset.TheroughestimatefortheminimumrecommendedPCspecificationisUS$650brokendownto$300forNvidiaGTX970/AMD290equivalentorgreater,$200forInteli5-4590equivalentorgreater(QuadCoreprocessor),$50for8GB+RAMand$100forcompatibleHDMI1.3videooutput-onvideocard,2xUSB3.0ports-onmotherboardandWindows7SP1ornewer.TobuildafunctionalcomputertheestimatedtotalcostofcomputerperipheralsisUS$500brokendownto$100forthemotherboard,$60forcase,$250formonitor,$50forkeyboardandmouseand$50for550wattpowersupply.TotalcosttoownandfullyusedanOculusRiftwouldbeUS$1,500.

2. DirectandIndirect/StrategicBenefits

a. VirtualEnvironment(VE)canallowthetraineestointeractphysicallywiththevirtualscenario.Forexample,traineescanassemble/disassemblethedifferentcomponentsfromavirtualmachineasitwouldbedoneinthereallife.Startupandtrainingcostsarecut.Ineveryprojectimplementationonlyonevisualtrainingtoolshallbeused.

b. VRdefinitionprovideshome-ownersandbuilders,architects,designers,andrelatedmanufacturersandsupplierswiththeinnovativeconceptofthree-dimensionalgraphicdesignsasreal


Padlan, Jody James

timeanimation.Itwillallowonetowalkaroundtheoutsideandthroughtheinsideoftheirhomebeforeitisactuallybuilt.Repaircostsnotinaccordancewithcustomer’sspecificationcanbeeliminated.Salesrevenuefromarchitecturalworktendstomultiplyasvcrcanbeavailableglobally.

c. Costoftransportationwillbelessandofficebuildingrentalswillbesavedasworkingfromhomewillbecommon.Thereductionofcompany’soverheadcouldbeconvertedtoemployeesadditionalbenefits.

d. Hospitalefficiencywillshootup.Virtualconsultationsandroboticoperationscouldlowerthecost of health insurance. 3. FinancialAnalysis(ROI,PaybackPeriod,ReturnonAssets,ReturnonEquity,etc.)FacebookcompanyboughttheOculusRiftproductfromOculusVR,LLCinMarch25,2014.TheproductwillbesoldtothepublicbyFacebookonthe1stquarterof2016.ThelatestfinancialstatementsofFacebookbeforethesalesofOculusRiftarebelowwhichwillbethebasisofsalesestimatesforOculusRift.

a. FinancialStatementAnalysis

2014 has higher net margin percentage than in 2013 but in terms of operation - 2013 has a higher rate ofreturnthanin2014.Year2012toolowreturnisanoutoftrendresultof2008to2011adjustmentofsharebasedcompensation.b. RatioAnalysis

TherewasatremendousincreaseinIncomegrowthfrom2012to2013becauseoftheoutoftrendadjustmentasmentionedintheanalysisofresultsofoperation.Alsoin2012thefederaltaxcreditforresearchanddevelopmentactivitieshadexpired.

CurrentAssetsaregoodenoughtocoverthecurrentliabilitiesby10.7times.Anaverageof10.7ratiowasmaintainedforthelatest3yearperiod.AsDebttototalAssetisonly0.1xthenEquitytoTotalAssetsmustbe0.9x.SinceEquityishigherthanDebtitisgoodthatFacebookpartialpaymenttoOculusLLCisFacebooksharesofstockasEarningsperShareislow. c. ReturnonInvestment

OculusVR,LLCdevelopedtheproductandraisedUS$16MoffundingbeforeFacebookpurchasedOculusRiftforUS$2B.ThereturnoftheinvestmentwhichisUS$1.984B($2Bless$16M)overUS$16Mcostofinvestmentx100givesOculusVR12400%ROI.


Padlan, Jody James

OnthepartofFacebook-thereturnfrominvestmentofUS$2Bwillbeformorethanayear.UntiltherearerevenuesassociatedtotheacquisitionofoculusriftthenROIincreases.Basedon2014revenueofUS$12,466Mtheportiongeneratedfromadvertising(US$3,590M)isassumedassociatedtotheusersofoculusrift.Using58%asthelatestgrowthratetheestimated1styearrevenueforoculusriftisestimatedatUS$9,003M.Theplanfortheproductis10years.Usingthecompoundedrate-theestimatedfuturevalueofUS$9,003Mafter10yearsat58%interestrateisUS$873B. d. PaybackPeriod

Theestimated$9Brevenueon2016isoverFacebook’sinvestmentof$2B.Thus,paybackperiodislessthanayear.Tohavetheexactnumberofmonths–theestimated1styear’srevenueof$9Bisconvertedtothemonthlyaverageof$750M.The3rdmonthpaybacktoequatetothebalancefortotalinvestmentof$2Bwillalreadybelessthan$750M.Theexactnumberofmonthstohavetheinvestmentbackis2.67.

a. InternalRateofReturn

Outofthetotal$2BpurchasetheinitialcashoutofFacebookis$400M+23.1Msharesofstockduringyear2014.ItwasneverstatedwhenwasthebalancewaspaidtoOculusLLC.Itisassumedthatthereisnopaymenton2015.Usingtheestimatedsalesrevenuefor2016of$9BthentheIRRwouldbe357%.

Ethical ImplicationsThe ethical theory of Utilitarianism has a great impactonbusinesssector.ThedevelopmentofVRwill result to an increase of labor unemployment. Transportation,cinema,educationandtourismtonamefewindustrieswilldecreaseitsservices.

TherearehighlevelsofviolenceortrainingexercisesforthemilitaryinwhichsoldiersengageinsimulatedcombatscenarioswhichincludekillinginVRgames.Desensitisationarisewherethepersonisnolongeraffectedbyextremeactsofbehavioursuch

asviolenceandfailstoshowavirtueofempathyorcompassion as a result.

Someone may commit a criminal act is a potential situationinavirtualenvironment.Inanaturallawethicaltheory,whowillbepunishedwhenoneoftheparticipantsinavirtualenvironmentbecomesinjuredortraumatisedduetothecriminalactofanotherperson?Whereisjustice?

Itispossiblethatsomeresearchersplacetheirownadvancementabovetheinterestsofaparticularpatient.Someotherresearchersmaybeundulypaternalisticespeciallywhenmakingdecisionsabout patients who because of mental impairment or illnessareunabletogivetheirinformedconsentandviolatestheirright.

nation-Building ImplicationsWiththeelectionscomingsoon,VRcanbeusedtogetmorepeopleinvolved,especiallytheyouth,andhelpthembemoreinformedaboutthecandidatesandnationalissues.TheUnitedStateswillbebroadcastingtheirupcomingpresidentialdebatesinvirtualreality.Theexperienceof“beingthere”shouldputmorepeoplegluedintheirseats. EducationwilldefinitelybenefitfromVR.Theideaofhavingvirtualclassroomsandimmersivewaysoflearningwhatwereonceonlywritteninbooksarecompelling.AccordingtoVR/AR-basedknowledgetransfersolutionscompanyEonReality,“Interactive3Dsolutionshavebeenshowntoincreasestudents’attentionlevelsby92%andincreasetestscoresby35%–whileatthesametimecreatinganewlevelofengagementforstudentsandstaff.”Foracountryoftenstruckbytyphoonscausingsuspensionofclasses,thisisdefinitelyaviableoption. Ifmorethingscanbedonewithlesstravelthenitcouldeasethetrafficcongestioninthecountry.Thehighwaysandtransportsystemscanbelefttobeusedbythosewhoneeditmore.Therewillbeanincreasedefficiencywithhowthingsoperate.


Padlan, Jody James

ReferencesSherr,I.(2015,September25).Facebook’sOculusvirtual-realitydivision:Let’snotgocrazywiththehype-CNET.RetrievedOctober1,2015,fromhttp://www.cnet.com/news/facebooks-oculus-virtual-reality-division-lets-not-go-crazy-with-the-hype/

Siede,C.(2015,September25).CNNtostreamtheDemocraticdebateinvirtualreality,forsomereason.RetrievedOctober1,2015,fromhttp://www.avclub.com/article/cnn-stream-democratic-debate-virtual-reality-some--225921

InsideTheVoid:Anexclusivelookatthefutureofvirtualreality.(2015,September2).RetrievedOctober2,2015,fromhttp://www.techinsider.io/inside-the-virtual-reality-theme-park-the-void-2015-9

P.,E.,&B.,A.(2015,September26).WhatAretheDisadvantagesofVirtualReality?RetrievedOctober2,2015,fromhttp://www.wisegeek.com/what-are-the-disadvantages-of-virtual-reality.htm

Edwards,B.(2015,August21).UnravelingTheEnigmaOfNintendo’sVirtualBoy,20YearsLater.RetrievedOctober2,2015,fromhttp://www.fastcompany.com/3050016/unraveling-the-enigma-of-nintendos-virtual-boy-20-years-later

Walker,P.(2015,June19).Virtualrealitycanbringanewdimensiontobusiness.RetrievedOctober2,2015,fromhttp://www.theguardian.com/media-network/2015/jun/19/virtual-reality-business-entertainment-oculus

Scherba,A.(2015,April16).MovingBeyondComputers:TheBiggestOpportunitiesInVirtualReality.RetrievedOctober2,2015,fromhttp://www.forbes.com/sites/theyec/2015/04/16/moving-beyond-computers-the-biggest-opportunities-in-virtual-reality/

VirtualRealityandEthicalIssues.(n.d.).RetrievedOctober3,2015,fromhttp://www.vrs.org.uk/virtual-reality/ethical-issues.html

Education.(n.d.).RetrievedOctober4,2015,fromhttp://www.eonreality.com/education/

King,L.(2014,May3).Ford,WhereVirtualRealityIsAlreadyManufacturingReality.RetrievedOctober6,2015,fromhttp://www.forbes.com/sites/leoking/2014/05/03/ford-where-virtual-reality-is-already-manufacturing-reality/

Chacos,B.(2015,May28).OculusRift’s$1,500totalcost:Diggingintothetruthbehindtheinsanenumber.RetrievedOctober6,2015,fromhttp://www.pcworld.com/article/2927836/oculus-rifts-1-500-total-cost-digging-into-the-truth-behind-the-insane-number.html

Rodriguez,J.,Gutierrez,T.,Sanchez,E.,&Aguinaga,I.(n.d.).TrainingofProceduralTasksThroughtheUseofVirtualRealityandDirectAids.RetrievedOctober5,2015,fromhttp://cdn.intechopen.com/pdfs-wm/36377.pdf

VirtualReality.(1993,July10).RetrievedOctober5,2015,fromhttp://www.referenceforbusiness.com/business-plans/Business-Plans-Volume-01/Virtual-Reality-v1.html

Howvirtualrealitycouldaffectyourbusiness.(2015,May12).RetrievedOctober6,2015,fromhttp://cib.rbs.com/insight/articles/virtual-reality.html

Gilbert,B.(2015,August18).It’sgoingtobeatleast5yearsbeforevirtualrealitygoesmainstream.RetrievedOctober6,2015,fromhttp://www.techinsider.io/virtual-reality-on-gartner-hype-cycle-2015-8

Robertson,A.(2015,January8).Slowdownthevirtualrealityhype.We’restillwaitingforthegoodstuff.RetrievedOctober6,2015,fromhttp://www.theverge.com/2015/1/8/7514337/ces-2015-state-of-virtual-reality

Franzen,C.(2015,October6).Microsoft’sAugmentedRealityHoloLensWillBeAvailableInEarly2016.RetrievedOctober7,2015,fromhttp://www.popsci.com/microsoft-hololens-augmented-reality-coming-early-2016-3000-dollars

http://www.theguardian.com/technology/2014/jul/22/facebook-oculus-rift-acquisition-virtual-reality

https://www.google.com.ph/?gfe_rd=cr&ei=pZIUVvakA8OM8Qfd-4DICQ&gws_rd=ssl#q=when+did+facebook+bought+oculus

GRouPTwoIn VITRo FERTIlIzATIonTechnology descriptionInVitroFertilizationorIVFisaformofAssistedReproductiveTechnologyandisdeemedthemosteffective.Itinvolvesobtainingeggcellsfromthemother,withorwithoutstimulatingtheovaries,andthenfertilizedbythefather’ssperminalaboratory.Thefertilizedeggs(embryos)arethenimplantedbackintothewoman’suterus.Thecouple’sowneggandspermcellsmaybeusedintheprocess,orinsomecases,donorsareusedinordertoincreasethechancesofasuccessfulpregnancy.Insomecountries,ifitisallowed,“gestationalcarriers”orsurrogatesmayalsobeused.Thisisespeciallyhelpfulincaseswhere the mother is not physically capable of carryingherchild.

IVFhashelpedcoupleswithinfertilityproblemssuch as:

• Lowspermcount• Reducedqualityofeggsduetoage(inwomen)• BlockedFallopianTubes• Ovulationdisorders• Endometriosis• UterineFibroids• Impairedspermproduction• GeneticDisorders• UnexplainedInfertility• Fertilitypreservation-thisistrueforcancerpatientswhowillneedtoundergochemotherapyorradiation.

Withthegrowingrateofpeoplewantingchildrenlateroninlife,unhealthylifestyle,andpollutedenvironmentsaffectingpeople’shealth,IVFasamedicalindustryhasbeengrowingrapidlyaroundtheworld.Alongwiththisgrowth,anumberofmoralandethicalimplicationshavealsocomeup.

A.TechnicalEnvironment

TYPESOFIVF:Thereare3typesofIVFthatarebeingusedintheworldtoday.Allofthemfollowthesameprocedure,andtheonlydifferenceistheexposuretodrugsandhormoneswhichcanhelpinretrievingmorehealthyeggsfromthefemale.

1.STANDARD–Highdosesoffertilitydrugs/hormonetherapyaregiventothefemales.Theseforcetheovariestoover-produceeggssothatalotcanbeharvestedatatime.Thisincreasestherateof success since there are more eggs which can be fertilized.

However,takingthesedrugs/hormonesarephysicallyandmentallydemandingsincemoresideeffectsareexperiencedbythepatients.Thesesideeffectsaresimilartomenopausalsymptomsandsomedrugs(eg:Clomid)havealsobeenattributedtohigherriskofbirthdefects.ThisalsoincreasestheriskofOvarianHyperstimulationSyndromewhereintheovariesbecomeswollenandpainful.AnotherproblemwiththeconventionalwayofIVFisthedisposalofembryos.Sincemoreeggsaregatheredand(possibly)fertilized,dependingonthefemale’sageandphysicalcondition,onlyacertainnumberoftheembryoscanbeplacedinsidethe

womb.Thephysicianswouldalsotrytominimizetheriskofmultiples,andsowouldbelimitingthenumberofembryostransplanted.Insomecultures/countrieswhodonotallowdestructionofembryos(eg:thePhilippines),thedisposalorstoragewillbeaproblem.TheIVFfacilitiesmaystoretheseembryosforfutureuseoftheirclients.However,iftheclientsdonotwanttopayforthestorage,thenitbecomesacosttotheIVFfacility.

2.NATURALCYCLE- Inthistype,nostimulationoftheovariesisdone.Onlytheoneeggthat’spartofthenormalmenstrualcycleisused.Inthepast,thesuccessrateforthiskindofIVFwasverylow,butnowwiththehelpofnewdrugs(likegonadotropin-releasinghormone(GnRH)agonists)thechancesofsuccessaregreater.Today,somedrugsareusedtopreparetheeggforretrievalandtopreventpre-matureovulationwhichmakesthesuccessrateofnIVFhigher.Ontheotherhand,nIVFisnotgenerallyrecommendedforpatientswhoare38yearsandolder.

Theriskofamultiplepregnancy isgreatlyreducedsinceonlyoneembryoisimplanted.Thereisalsonounusedembryosthatneedtobedisposedorstored. 3.MINIMALSTIMULATION- Thistypefollowsthesameprocedureandsamedrugs/hormonesasthestandardIVF.Thedifference


Padlan, Jody James

isthatdosagesarekepttoaminimumandforashorterperiodoftime.Thismeanstherearelesssideeffectsexperiencesandlowerstheriskofovarianhyperstimulationsyndrome.AdisadvantageofthistypeofIVFisthatfewereggsarecollected.However,sincethepatientisnotsubjectedtohighdosagesofthedrugs,theydonothavetowaitlongtorepeattheIVFcyclesshouldthefirstonefail.

PROCEDURE:

STEP1:Consultation–ThecouplewhowantstoundergoIVFareinterviewedandtested.ThelaboratorycheckstheirmedicalhistoryandrunsstandardchecksforSTDs,possiblehealthrisks,hormones(forthefemales),spermcount(forthemale),etc.

Insomecountries,thephysicianmayalsoaskquestionsregardingthecircumstanceswhytheywanttoundergoIVF.Theyneedtoknowifthecoupleareindeedtogetherandbothpartiesaretherewillfully.TheycannotperformIVFonsurrogates.

STEP2:IVFWork-ups–Thefemalesareprescribedandgivenfertilitydrugsandhormonetherapytoyieldmaximumresults.Insteadofhavingjustonematureeggduringacycle,thewomenaregivenmedicationsoshewillhaveasmanymatureeggsaspossibletoincreasethesuccessrateoftheprocedure. Thewomenmayalsobegivenbirthcontrolpillsforanumberofdaysinordertocontrolthetimingofthecycle.Thisisimportantsothephysicianscanknowexactlywhentheeggsshouldbeharvested. A“Mock-Embryotransfer”mayalsobedone.Thisisapracticerunandhelpsthedoctortestthesizeandplacementofthecathetertobeusedduringtheprocedure.TheMockEmbryotransferalsohelpsthedoctorsmapablueprintonhowtheactualprocedureshouldgo. Duringthisstage,thewomenarealsomonitoredfrequentlytomakesurethatthescheduleisfollowedorifchangestomedication,dosage,ortimingisneeded.

STEP3:Eggretrieval–A“triggershot”isgiventothe female which helps the maturation of the follicles sothatovulationmaystart.Timingisveryimportantbecausetheeggsmustbeharvestedbeforeactualovulation.Thefolliclesmustbematureenoughandtheeggsaregatheredrightbeforetheyleavetheovariesandwhiletheyareinthefollicles.Allthematureeggsthatcanbecollectedwillbeharvestedby the physician.

Thepartner’sspermisideallycollectedonthedayoftheegg-retrieval,orearlier.Incasethespermiscollectedearlier,itwillbestoredinthelabandthawedoncetheeggshavebeenretrieved.Theprocessofretrievingtheeggstakesonly20-30minuteswiththehelpofanultrasoundtoguidetheneedleintotheovaries.

STEP4:Fertilization&Embryodevelopment–Fertilizationoftheeggswiththepartner’sspermmaybedonein2ways:

o ConventionalFertilization:Thehealthyspermisisolatedandjoinedwiththeeggcellinthelaboratoryandtheembryologistletsfertilizationoccur naturally.

Mostofthetime,thisisdonewhenthecauseofinfertilityisunknown,orincaseswhereinthefallopiantubesareblockedandfertilizationcannothappennaturallyinsidethewoman’sbody.

o IntracytoplasmicSpermInjection(ICSI):Thehealthyspermisagainisolatedandinserteddirectlyintotheeggcellusinganeedle.

Thisisfrequentlydoneincaseswhereinthemale’sspermcountandqualityislow.Thespermisweakandcannotpenetratetheeggcellsonitsown.


Padlan, Jody James

Alltheharvestedeggcellsarefertilizedtoincreasetheoddsofsuccess.Insomecaseswhereinnewertechnologiesareused,onlythebestqualityegg-cellsarefertilizedtoreducetheriskofmultiplepregnancywhichcouldbehazardousforthemothers.

Theembryosarethenmonitoredcloselyforaround6days.Theywillbecheckedifthecellsaremultiplyingnormally,orifitishassloweddownornotmultipliedatall.Onlythosewhichhavedevelopedsuccessfullywillbeusedintheprocess.

STEP5:EmbryoTransfer–Thisisdonearound5to6daysafterfertilization.Thephysicianwillcheckthefinalstateoftheembryosandwillrecommendhowmanyembryosarerecommendedfortransfer.Factorssuchasageandmedicalhistorywillguidethephysicianonhis/herrecommendation.

theembryologistwillcheckthecatheterunderamicroscopetocheckiftheembryoisstillthere.Thisisbecausetheembryosareinvisibletothenakedeye.

STEP6:PregnancyTest-18daysafterEgg-retrieval,thewomanundergoesabloodtesttodetermineifsheispregnant.Abloodtestisusedbecausethisisproventobemoreaccuratethanaurinetest.Thewomanwillbeaskedtodothistestafteranother2-3days.Whenallthetestscomeoutpositive,avaginalultrasoundwillbedonetoconfirmthepregnancy.Severalmoreultrasoundsmaybedonealsotoconfirmifthereisaheartbeat.Onceallthetestscomeoutpositive,thentheprocedureisasuccess.

Olderpatientsmaynotberecommendedtotransfermultipleembryosasthisincreasesthelikelihoodofmultiples(twins,triplets,etc.).Forpatientswhomeetsomecriterion(womanisyoungerthan37yrsold,firsttimetoundergoIVForhashadasuccessfulIVFinthepast,hasagoodqualityblastocyst),electiveSingleEmbryoTransfer(e-SET)mayberecommended.Thisisthetransferofasingleembryoeventhoughtherearemanyavailable.Mostofthetime,thisisablastocyst-stageembryo.Blastocystis“athin-walledhollowstructureinearlyembryonicdevelopmentthatcontainsaclusterofcellscalledtheinnercellmassfromwhichtheembryoarises”(source:http://www.medicinenet.com/script/main/art.asp?articlekey=18258) Usingonlythebestqualityembryoissaidtoreducetheriskofhavingmultipleswhilemaintainingthesame chances of success. Duringthisprocedure,thephysicianwillinsertathincatheterandpushtheembryointotheuterus.Theprocedurewillbeguidedbyanabdominalsonogram.Afterthecatheterisslowlyremoved,

B.TrendsintheTechnology

Datingbacktothelate1800s,scientistsanddoctorshavebeenexperimentingwithAssistedReproductiveTechnologiestoaddressthegrowingnumberinfertilityratesacrosstheworld.Startingwithanimaltestings,theyslowlyprogressedtohumantestsandeventuallybecamesuccessfulamidfinancial,political,andculturalhurdles.

IVFMILESTONES:

1890s - ProfessorWalterHeapeoftheUniversityofCambridge,Englandreportedthefirstknowncaseofembryotransferonrabbits.

1932 - AldousHuxleypublishes“ABraveNewWorld”whichtellsofasocietymadeupoftesttubebabies.HealsorealisticallydescribedtheprocedureofIVFasweknowittoday.

1934 - GregoryPincus,aHarvardscientist,conductsIVFexperimentsonrabbitsand

saysitisalsopossibleforhumans.Heisdenouncedforhiswork.

1944 - Dr.JohnRockfromHarvardMedicalSchoolandMiriamMenkin,Pincus’assistantfertilizesfourova.Thisresultedaftertheyexposedtheeggsandspermcellsforalongerperiodoftime.Theydonotattempttoimplantonawomanbuttheexperimentgeneratesgreatinterest

1951 - Dr.LandrumShettlesduplicatestheexperimentatColumbia-PresybyterianHospital

1961 - ThefirstdocumentedretrievalofOocytesbylaparoscopywasdoneinFrance

1973 - ProfessorsCarlWoodandJohnLeetoninMelbourne,AustraliareportsthefirstIVFpregnancy.However,thisendedinamiscarriage.

1977 - BritishScientistRobertEdwardsandObstetricianPatrickSteptoeimplantsLesleyBrown’sinvitrofertilizedeggbackintoheruterus,andbecomes pregnant.

embryowasfrozenandthawedbeforetransferringtothe uterus.

1984 - FirstIVFbabythroughasurrogatemother was born in California1985 - Anabdominalultrasoundwasfirstusedtoguidehumanembryotransfer

1986 - MonashIVFreportsthefirstsuccessfulIVFbirthfromaspermdonorwhosespermductswereblocked(spermretrievalthroughoperation). - Birth of twins from frozen human eggs(OocyteCryopreservation)

1988 - First2birthsafter“epididymalspermaspiration”.Themenhadcongenitalabsenceofthevasdeferens(ductthatconnectsthetesticletourethra,forspermpassage).ProcedureiscalledMESA.

1990 - ScientistsGonen,JacobsonandCasperdiscoveredtheuseoforalcontraceptivestosynchronizethefolliclesandforcycleschedulinginthetheIVFprocess.

1992 - FirstpregnancyresultingfromIntracytoplasmicsperminjection(ICSI)wasreportedinBrussels,Belgium.

1997 - Firstcaseof“CytoplasmicTransfer”isreported.CytoplasmicTransferisanAssistedReproductiveTechnologywhereinthecytoplasmfromadonoreggisinjectedintoaneggwithcompromisedmitochondria.Thisisthenfertilizedbythepartner’sspermandimplantedbackintothewomb.Theresultisachildwiththegenesof3peopleinsteadofjust2.

1978 - LesleyBrowngivesbirthtothefirstIVFBaby,LouiseJoyBrown.

1983 - ThefirstIVFpregnancyofawomanwith noovarieswasreported.Donoreggswereusedtoachievethis,withthehelpofhormonetherapyforthedonor. - Firsthumanpregnancyusing“cryopreservation”whereintheeight-cell


Padlan, Jody James

2004 - FirstlivebirthafterOrthotopictransplantation of CryopreservedOvarianTissue.

2007 - MildTreatmentStrategyforIVFwasintroduced.LowerdosageofdrugsandhormonetherapyaregiventopatientsatshorterperiodsoftimecomparedtoStandardIVFtreatment.

2008 - FirstreportedbirthoftwinsafterOocytecryopreservationandbilateralovariectomyfromaCancerpatient.

2015 - AUGMENTIVFtechnologyisbeingdevelopedandusedinsomecountries.Itisdoneusing“stemcell”fromawoman’simmatureeggstoreinvigoratethematureeggs,thereforeimprovingeggqualityandextendingfertilityinwomen.

**NEWBREAKTHROUGHSINIVF:

OvarianTissueFreezing(Ovariantissuecryopreservation)–isamethodof“Fertilitypreservation”,andismostcommonlydoneincancerpatientswhowillundergochemotherapy/radiation.Partsoforthewholeovaryisremovedviaalaparoscopy,andthenfrozenandstoredforfutureuse.Oncethepatientsarehealthyagain,thetissueistransplantedbacktothebody.Thetissuecontainsanabundanceofimmatureeggs,whichcanthenmatureoncetheyaretransplantedbacktothebody,orinvitro(outsidethebody).

Thistechnologyisstillconsideredexperimentalbuthasalreadyyielded30successfullivebirthsallovertheworld.Itisthebestoptionforcancerpatientswhonolongerhavetimetoundergoovarianstimulationforeggretrieval,fertilization,andembryo freezing.

Time-lapsephotographstomonitordevelopmentofEmbryos–ScientistshavediscoveredthatcloselymonitoringthedevelopingIVFembryosusingtimelapsephotoshelpedthemidentifywhichembryoswillmostlikelyyieldasuccessfulpregnancy.Normally,theIVFembryosarecheckedmanuallyeachdaybyembryologists,butthetime-lapsephotographsaredoneevery10minutesanddoesnotinterferewiththedevelopmentoftheembryo.Theyareaalsoabletolookmorecloselyintothedevelopment.

Theyareabletoidentifythetimewhereintheblastulafirstappearedtothemomentbeforetheembryo hatches from its shell. The blastula is the sac filledwithfluidintheembryo.Theyhavediscoveredthatifthisprocesstakeslongerthan6hours,thechancesoftheembryohavinganabnormalnumberofchromosomesishigher,thereforeincreasingtheriskofafailedpregnancy.Byidentifyingwhichembryosarethehealthiest,thesuccessrateofpregnancieswithIVFwillbesignificantlyincreased.

AUGMENTAutologousGermlineMitochondrialEnergyTransferIVF–ThisisarelativelynewtechnologythatinvolvesStemCell.Ithasbeendeemedbeneficialforwomenwithlowerqualityeggcells,specificallythoseovertheageof35.Mitochondriafromthewoman’simmatureeggcellisinjectedintothematureeggduringIVF,atthesametimeasthespermisinjected.Themitochondriafromtheimmatureeggreinvigoratesthecellson

thematureegg,andthisfuelsembryogrowth.Inessence,thematureeggsbecomeyoungagainwiththeinjectionofthemitochondriafromtheimmatureeggcells.Thisprocedurewillalsoreducetheriskofmultiplepregnancysincefewerembryosneedtobeimplanted.ThistechnologyisnotyetallowedintheUSAastheyrequirefurthertesting.

PGD(PreimplantationGeneticDiagnosis)–Thiswasfirstdevelopedinthe1980sintheUnitedKingdomandinitiallyrevolvedonlyarounddeterminingthegenderoftheIVFembryos.Today,itisusedtodeterminegeneticdefectsontheembryosbeforetheyareplacedonthemother’swomb.Sincethetestingisdonebeforepregnancy,itreducestheriskofhavingtoterminateordecidingto terminate a pregnancy when the embryo is seen tohavegeneticdefectsorhaveinheritedunfavorablegenesfromtheparents.ItisalsonowbeingusedsotheclientsundergoingIVF,canchoosethegenderoftheiroffspring.

SWOTANALYSISofIVFasawhole


Padlan, Jody James

TheProsofInVitroFertilization

1.IncreasestheOddsofPregnancy Ifyouandyourpartnerarehealthyandcapableofhavingchildrennaturally,invitrofertilization can be a way for you to increase the oddsofgettingpregnant.Withmonthlyscreeningsandattempts,invitrofertilizationcandramaticallyincreaseyourodds.Ifyouareworkingonascheduleandrequiregettingpregnantsoon,theninvitrofertilizationcanhelpyousavetime.

2.HelpsGetAroundFertilityProblems

Ifyouoryourpartnerarehavingtroubleduetofertilityproblems,theninvitrofertilizationcanhelp you bring about pregnancy. With a range of additionalsupporttestsandprocedures,invitrofertilization can be the last stage in ensuring that you can bring about a pregnancy naturally.

3.ReducestheNeedForSurgeryonWomen’sFallopianTubes

Anothergreatbenefitofinvitrofertilizationisthatitreplacespre-existingtechniquesforpregnancythatweresignificantlymoreharmful.Withinvitrofertilization,thereislessofaneedtoperformsurgeryonwomen’sfallopiantubes.Asinvitrofertilizationcontinuestoadvance,theprocedurewillbecomemoresuccessfulandlessinvasiveasaresult.TheConsofInVitroFertilization

1.IncreaseChancesofHavingTwins,Triplets,andGreater

Usinginvitrofertilizationdramaticallyincreasesthechancesofhavingmorethanjustonechildatatime.Atawhopping35%ofhavingtwins,invitrofertilizationincreasesthelikelihoodof complications that come from multiple births. Whilesomefamilieswouldwelcomehavingtwinsortriplets,othersstrugglewiththeresourcesavailabletoraiseasinglechild,letalonemorethenone.Therearealsotheincreasedmedicalbillsassociatedwithhavingmorethenonechild,aswellastheincreasedriskofsickness.

2. Costs a Great Deal of Money

Forthoseparentswhocannotconceiveachildthroughtraditionalmeans,thisrighttakesonapricetag.Witharound250to300hundredthousandpesosperpregnancyattempt,havingachildthroughinvitrofertilizationcancostafamilyalotofmoney.Somearguethatinvitrofertilizationasitnowstandsiswrongbecauseitonlyallowsrichpeopletohavechildren.

3.Pro-LifeOutrage

There are a number of prominent religious andsocialgroups,includingtheVatican,thatarestronglyagainsttheideaofinvitrofertilization.This is because the entire act is seen as inherently unnatural.Forsomethereasoningconcernsgoingagainstacreator’splan.Itisarguedthatifyoucannothavechildrennaturally,thenyouwerenevermeanttohavechildrenatall.Inaddition,thereisalineofargumentthatstatesthattherearestillunknownrisksassociatedwiththeprocedureandthatbydoingit,youputatriskthelifeoftheunbornchild.Finally,withthepotentialforusingunfertilizedeggsforanumberofreasons,manypro-lifepeopleseeinvitrofertilizationasapartofamasskilling,astherearealargenumberofeggsthatwillneverbefertilizedintopeople.

EstablishedinthePhilippinesin2012,KatoReproBiotechCenter,isastateoftheartfacilitybackedbyevidencebasedprotocols,superiortechnologyand20yearsofexperienceinassistedreproductivetechnology(ART)bytheKatoLadiesClinic(KLC)oftheTowakogroupinJapan.

Business/Industry/Education ApplicationsIVFhasveryperceivableimpliedapplicationstothemedicalandclinicalindustry,cateringprimarilytopatientsoffertilitydisordersandaidingdifficultconceptions. The application of this technology has sufficientlygrowninpracticeinthe1980s,andhasbeengainingculturalacceptanceindifferentpartsoftheworld.Business-wise,thishastranslatedintoalucrativepractice,giventhecostofIVFservicesworldwide.

There are currently 48.5 million couples with infertilityproblemsworldwide.Thisisduetovariousfactorslikeage,pollution,lifestyle,andothermedicalconditions.Withthisinmind,theIVFmarketisexpectedtogrowbyupto$21.6bytheyear2020,

withaCAGRof11.6%.AlongwiththisgrowthistheemergenceofnewtechniqueswhichincreasesthesuccessrateofIVF.Anexampleistheuseofstem-cellsfromthemother’simmatureeggcellstoreinvigoratethematureeggcells(AUGMENT),discussedabove.

Besidesitsuseasaidindirectconceptionproblemsduetobiomedicalfertilitydisorders,IVFhasapplicationsinstoringandlateruseofunfertilizedhumaneggs,particularlyforindividualswhowishtoensurehealthierfertilityinlatterstagesoftheirlives.Surrogacyisanotherusage,applicableinpartsoftheworldwherethepracticeislegallyallowed,andprovidespossibilitytoproduceoffspringthroughasurrogatemotherwhenthedonorsareunabletoundergothebiologicalpregnancycycle.

AcertaindegreeofmedicaltourismfosteredbyIVFasaclinicalpractice,andisprimarilycausedbytwofactors.LegalstatusofIVFasacommercialandmedicalapplicationcontinuestobehoundedbysocio-politicalandreligiousissues,andremainsillegalorbannedincertaincountries.Also,thereareobservedsignificantcostdifferencesoftreatmentinvariouscountrieswheretheseareavailable.

SWOTANALYSISofKatoReproBiotechCenter


Padlan, Jody James

AsidefromtheuseofIVFinhumans,ithasalsobeenusedintheagricultureindustry,mostespeciallyinthebreedingofcattle.Ithashelpedtobreedgeneticallysuperiorcattlethatcanproducemoremilk,reproducefaster,andlivelonger.Thesebreedscanalsobemodifiedtobemoreresistanttostressfulenvironments(eg:extremechangesintemperature,etc.)Theivf-cattlewillalsopasson

hersuperiorgenestoheroffspring,makingtheproceduremorecosteffective.

CoST-BEnEFIT AnAlySISFinancialHighlightsofKATOReproBiotechCenter(TowakoReproBioCellInc.):

In Php (‘000s)2014 2013 2012

Ratio Analysis2014 2013 2012

12 mos. 12 mos. 12 mos. 12 mos. 12 mos. 12 mos.

Revenues 130,379 74,205 17,853 Revenue Growth 567.47% 65.78% n.a.

COGS 79,317 66,555 40,211 Gross Income Margin 39.16% 10.31% -125.23%

Gross Profit 51,062 7,650 -22,358 Operating Profit Margin 19.07% 1.51% -199.49%

Other Income 87 645 91 Net Income Margin 14.36% 1.82% -198.98%

Operating Expenses 26,194 6,530 13,257 ROA 14.57% 1.19% -70.02%

Net Income 18,726 1,349 -35,524 ROE 1015.43% -7.22% 213.92%

Cash& Due from Banks 51,653 34,025 7,767 ROI -38.30% 1.35% 16.64%

Receivables 9,316 8,690 7,941 Cost margin 20.38% 5.78% 13.06%

Current Assets 63,979 45,039 17,783 Current Ratio 0.53 x 0.34 x 0.14 x

Fixed Assets 68,367 79,609 83,686 Debt-to-Equity 10.81 x -17.58 x -4.40 x

Total Assets 132,346 124,648 101,469 Days Receivable 26 days 43 days 162 days

Trade Payables 117,243 130,748 130,485 Days Payable 540 days 717 days 1184 days

Current Liabilities 121,139 132,167 131,337 Earnings per Share 0.06 0 -0.12

Total Liabilities 121,139 132,167 131,337 EBITDA 48,899 12,948 -26,448

Capital Stock 30,000 30,000 9,000 Net Cash After Operations 30,330 12,363 94,873

Deficits -18,793 -37,519 -38,868 Net Cash After Investing 17,628 5,258 2,111

Total Equity 11,207 -7,519 -29,868 Net Cash after Financing 17,628 26,258 11,111

RevenueGeneration/Profitability:

Towako’searningcapacitysignificantlyimprovedin2014astotalsaleshikedby76%toP130.38million.

Thiswasdrivenmostlybydomesticsales,whichroseby80%toP108.87million,comprisingbulkor84%of total sales in 2014.

Exportsaleslikewiseexhibitedgrowth,increasingby56%toP21.51millionin2014(16%oftotalsales).

Meanwhile,growthofcostofgoodssoldtemperedto19%in2014versusahigh66%growththeprioryearduetolowerdirectexpenses,laborcostsanddepreciationcosts.

Thisliftedgrossprofitmargintoastrong39.16%in2014,versus10.3%theprioryear.

OtherincomedroppedtoP87thousandin2014fromP645thousandin2013mainlyduetolowerone-offFXgains,thoughpartlyoffsetbyhigherinterestincomefromcashinbanks.

Thefirmhasahighcoststructure,typicalofastart-upcompany.Totalopex(operatingexpenses)morethantripledtoP26.19millionin2014fromP6.5milliontheprioryearmainlyonaccountofanincreaseindepreciationcosts,whichcomprisebulkor78%ofopex.

in Php (‘000s) 2014 % Inc / (Dec) 2013 % Inc / (Dec) 2012 %

Export Sales 21,509 16% 56% 13,789 19% 681% 1,766 10%

Domestic Sales 108,870 84% 80% 60,416 81% 276% 16,087 90%

Total Revenues 130,379 100% 76% 74,205 100% 316% 17,853 100%

COGS 79,317 19% 66,555 66% 40,211

Gross Profit 51,062 567% 7,650 66% -22,358

Gross Profit margin (%) 39.16% 10.31% -125.23%

Depreciationexpensefromthefirm’spropertyandequipmenthikedtoP20.49millionin2014fromP1.79milliontheprioryear.

ThecompanyhoweverhasminimalpersonnelexpensesamountingtoP1.28million(4.88%ofopex)in2014,a22%growthoverthepreviousyear’sP1.04million.

Notwithstandingtheincreaseinexpenses,operatingprofitmarginimprovedto19.07%in2014versusamarginal1.51%in2014spurredbyhighgrowthinsales.Asaresult,bottomlinestoodatP18.72millionin2014,asubstantialimprovementfromP1.35millionin2013andfromanetlossofP35.5millionin2012.ROAAstoodatastrong14.57%in2014fromonly

1.19%theprioryearwhilenetincomemarginimprovedto14.36%in2014versus1.82%in2013.Likewise,ROIhasbeenliftedto16.64%in2014from1.35%theprioryear.

Cashflow:

Towako’scashgenerationhasbeenhealthy,postingnetcashafteroperations(NCAO)ofP30.33millionin2014.Thishelpedfundtheadditionalmedical,transportationandofficeequipmentpurchasedin2014amountingtoP12.7million.NotethatthecompanyhasincreaseditscapitalstockbyP21millionin2013andP9millionin2012tohelpfunditsoperations.ThiscontributedinboostingitsendingcashbalancetoP51.65millionin2014,fromonlyP7.7millionbackin2012.


Padlan, Jody James

Giventhecompany’snetcashflowfromoperationsin2014,thecompanyshouldbeabletopaybackitsestimatedprojectcostofP168millionin5.54years.Conversely,ifwebaseitinitsaveragecashflowinthelast2years,paybackperiodwouldbearound7.87years.

FinancialCondition:

Thecompany’sbalancesheetexpandedbyaslight6%toP132.35millionin2014onhighercashreservesandreceivables,partlyoffsetbyadeclineinthenetbookvalueofitspropertyandequipment(duetoincreaseinaccumulateddepreciation),whichaccount for more than half of its asset base.

Towako’sliquidityhoweverremainstight,withcurrentratiobelow1x,at0.14xin2014and0.34xin2013giventhehighbalanceofthefirm’stradepayables(obligationstosuppliers,variousentitiesandgoodsproviders)asopposedtoitsliquidassets.

Thecompanydoesnothaveanydebtorexternalfinancingasassetgrowthhasmostlybeenfundedbycapital.

Notehoweverthatthefirm’ssolvencypositionisweakgiventhatitsequitybasehasbeendraggeddownbydeficitsfromlossesincurredinthepastwhichresultedinanegativeequitybalanceinthelast2 years.

Nonetheless,capitalinfusionofP21millionin2013,coupledwithareboundinprofitability,resultedinapositiveP11.21milliontotalequityin2014.

4.ETHICALIMPLICATIONS

Thenewreproductivetechnologieshaveprocreatedethicalalarms.Thesearecontroversialthathavefascinatedgreatattentionfrompublicandmedia.Individualsbecameconcernaswell.

Alotofconcernshavebeenraisedsuchas: 1.)Defininginitiationoflifeethically?

Despiteallthetalkabouttheever-increasingavailabilityofinvitrofertilizationtechniques,oneissueisalmostnevertakenintoconsiderationisthat,“whathappenstoallthoseextraembryos?”

OftensurplusembryosareinvolvedinprocessofIVFinordertoenhancethebestpossibilityofpregnancy .Whether they are laboratory artifacts ornotandwhenlifebeginsareopenquestions.Thismovesabigquestiononthe“sanctity-of-life”.Therefore,theologistsarguethatweshouldgivetheembryothe“benefitofthedoubt”andconsiderlifeattheverybeginningandhumansshouldbespatio-temporallycontinuouswiththeembryosandfetusestheyoncewere.Ifonlyahumanlifeinitiatesatfertilizationthenivfisexperimentationuponahumanbeingandshouldfollowthenormsofthattypeofresearch.Furthermore,discardedzygotesorembryoslostinunsuccessfulimplantations,atpresentaforeseenpossibilityofivf,wouldbehuman.

2.)Shouldolderwomenbeofferedinvitrofertilization?

Therearealotofobviousquestionsinstoreandagainstthisissue.Somepeopleareaskingifanolderwomancancopewithmotherhood?Whatwillbethepotentialhealthofthechild?WhentheInvitro

Estimated Project Cost: in ‘000s

Building Construction and Improvement 71,000

Machinery Equipment and Office Equipment 56,000

Pre-Operating Administrative Expenses 11,000

Working Capital 24,000

Other Costs (Medical gases piping and Scavenging system) 6,000

Total Investment 168,000

Payback period (based on average net cash after ops) 7.87 years

Payback period (based on 2014 net cash after ops) 5.54 years

Return on Investment (based on 2014 net income) 11.15%

fertilizationisrarelysuccessfulinolderwomenthenwhywearetakingarisk?Manysuchquestionsneedtobeansweredyet.Thechanceofsuccessfulinvitrofertilization(whichitselfcarriesrisks)inwomenagedover45-50isisolated.

3.)FetalReduction:Whichoneofyourchildrenwouldyoukill?

Fetalreduction”iscommonlyrequiredtoprotectalivebirth.Onestudymentionsthatifone“looksonlyatthestatistics,(4-5%oflivebirthsperonehundredfertilizationsinthemostsuccessfulprograms),onewouldhavetocalltheIVFprocedureaequallyefficientmethodofabortion,witha95to96%successrate.”

4.)ChromosomalandOtherCongenitalDefects

Pregnancyissomethingofa“hitandmiss”forallcouples.Ontheotherhand,comparedwithcoupleswhoconceiveinstinctively,forthosewhorequireIVF,thehitormissliesmoreheavilyagainstasuccessfuloutcomeateverystageoftheprocess,notjustduringconception.MovingawayfromGod’slawalwaysintroduceschaosinpeople’slives.Nowhereisthisbetterthaninthecaseofinvitrofertilization.ThroughouttheshorthistoryofassistedreproductiontherehasbeenaworrytomonitorthesafetyofthisimportanttechnologyItiswellestablishedthatinfantsconceivedfollowinginvitrofertilization(IVF)aremorelikelytobebornpreterm,oflowbirthweightandtobeatwinorhigherordermultiplethanspontaneouslyconceivedinfants.

5.)Turningchildrenintocommodities

Invitrofertilizationmoveschildrenintocommodities.Whowilljudgeaboutgivingbirthof

thechildreninthisworld,parentsarefreetodecidebutaretheyhavingtherightstoobstructthenaturalprocess?Whenacoupleisinfertile,dotheyhavetheright,withtheaidofscientists,tocircumventthenaturalprocessofgeneration?OrarethecreativepowerswhichpeoplesharewithGodlimitedinsuchawaythattheyshouldstopshortofinterferingwith natural processes such as the generation of newhumanbeings,eventhoughitisclearthatasubstitutemethodforthenaturalprocesscanbefound?Clearly,wehavetherighttomodifyourpersonal entity so that natural ctions are more aptly performed.

6.)Religion:ObjectiontoplayingGod

Technologiesofassistedreproductionsuchasinvitrofertilization(IVF)havebeencontroversialonreligiousgroundssinceitsbirth,however,withinIslam,Judaism,Confucianism,Hinduism,andmostformsofChristianity,adjustmentshavebeenmadetofacilitatethefertilityoftheiradherents.Catholicismremainstheonlymajorworldreligionthatunequivocallycondemnstheuseofivf.TheCatholicChurchconsidersinvitrofertilizationwrong because it separates human procreation fromconjugalunion.Intheprocess,couplesmakethemselvesthemastersofhumanlifeinsteadofitsstewards.Thestrongestprotestisontheuseofthesesupernumerary embryos in research which hamper thedivinityanddignityofhumanlife.

7.)Childrenonhold:Thecaseoffrozensupernumerary embryos


Padlan, Jody James

Oneoftheby-productsofthetypicalIVFtreatmentis the creation of supernumerary embryos. More embryosarebroughtintoexistencethancanbesafelyreplacedinthefirstcycle.Theremainingembryosarefrozentobeusedlaterifthefirsttrialprovesunsuccessfulorwhenthecouplewantsanotherchild.Ontheotherhand,notallembryosarereplacedandnotallparentsindicatewhatshouldbedonewiththem.Theaccumulationoffrozenembryoshasresultedinimpressivenumbersofembryosstockedinthefreezersofthelargefertilityclinics.Theexponentialgrowthoftheirnumberurgesontheethicalreflectiononthefateoftheseembryos.

Significantethicalandmoralissuessurroundingtheembryofreezingprocess.Theseincludethefollowing:

o Fateofthestoredembryosonthedeathofcouple‘orphaned’embryos.o Ownershipoftheembryosifthecoupledivorce.o Safety of embryo freezing.

5.NATIONBUILDINGIMPLICATIONS

ExpectedtofurtherdrivetheIVFmarket,themajorchallengeinAsia-PacificIVFmarketisaffordabilityofthesedevicesbythesmallsizedIVFclinics.Asia-PacificIVFdevicesandconsumablesmarketisexpectedtogrowatadoubledigitcompoundannualgrowthrate(CAGR)from2015to2020.

OurCountry,OurBusiness

Currently,onlyfivecenterarecapableofdoingIVFinthePhilippines.TheaveragecostofIVF(inU.S.dollars)isabout$14,000to$24,000intheU.S.,andabout$8,000to$12,000inSingapore.InthePhilippines,itstartsatP135,000,plusdoctor’sfee(whichcanrangefromP75,000toP400,000).ThiscostcoversjustonecycleofIVFanddoesnotincludemedications,ultrasound,andotherpossibleexpenses.

Withtheentryofmoreplayersofferinginvitrofertilization,thePhilippinesisatanadvantageouspositiontopromoteIVFforMedicalTourism.ThereareonlyfewcountriesthatofferIVFservicesinAsia.AmongthemarethecountriesmentionedaboveplusJapan,Taiwan,Indonesia,andMalaysia.IftheIVFcenterscankeeptheircostslowerthanthoseofferedinneighboringcountries,andincreasethestaff ’sexpertiseonthetechnology,aswellasgreatcustomerrelations(whichourcountryisalreadyknowfor),webelievethereisabigopportunitythatwecancapturealargeportionoftheASEANmarket.ThisisespeciallytimelygiventheASEANintegrationwhichopensdoorsalsoforprofessionalstoworkandstudybetweenmembercountries.HealthprofessionalsandIVFcenterscanusetheopportunitytheintegrationpresentsinupgradingmachinesandtrainingpersonnelforbetterqualityofservice.

Someone may commit a criminal act is a potential situationinavirtualenvironment.Inanaturallawethicaltheory,whowillbepunishedwhenoneoftheparticipantsinavirtualenvironmentbecomesinjuredortraumatisedduetothecriminalactofanotherperson?Whereisjustice?

Itispossiblethatsomeresearchersplacetheirownadvancementabovetheinterestsofaparticularpatient.Someotherresearchersmaybeundulypaternalisticespeciallywhenmakingdecisionsabout patients who because of mental impairment or illnessareunabletogivetheirinformedconsentandviolatestheirright.

nation-Building ImplicationsWiththeelectionscomingsoon,VRcanbeusedtogetmorepeopleinvolved,especiallytheyouth,andhelpthembemoreinformedaboutthecandidatesandnationalissues.TheUnitedStateswillbebroadcastingtheirupcomingpresidentialdebatesinvirtualreality.Theexperienceof“beingthere”shouldputmorepeoplegluedintheirseats. EducationwilldefinitelybenefitfromVR.Theideaofhavingvirtualclassroomsandimmersivewaysoflearningwhatwereonceonlywritteninbooksarecompelling.AccordingtoVR/AR-basedknowledgetransfersolutionscompanyEonReality,“Interactive3Dsolutionshavebeenshowntoincreasestudents’attentionlevelsby92%andincreasetestscoresby35%–whileatthesametimecreatinganewlevelofengagementforstudentsandstaff.”Foracountryoftenstruckbytyphoonscausingsuspensionofclasses,thisisdefinitelyaviableoption. Ifmorethingscanbedonewithlesstravelthenitcouldeasethetrafficcongestioninthecountry.Thehighwaysandtransportsystemscanbelefttobeusedbythosewhoneeditmore.Therewillbeanincreasedefficiencywithhowthingsoperate.


Padlan, Jody James

Referenceshttp://infertility.about.com/od/infertilitytreatments/ss/ivf_treatment.htm#showallhttp://www.mayoclinic.org/diseases-conditions/ovarian-hyperstimulation-syndrome-ohss/basics/definition/con-20033777http://healthland.time.com/2012/05/07/the-link-between-infertility-treatments-and-birth-defects/http://www.mayoclinic.org/tests-procedures/in-vitro-fertilization/basics/definition/prc-20018905-Gurevich,R (2015,March3).UnderstandingIVFTreatmentStepByStep.RetrievedOctober3,2015,fromhttp://infertility.about.com-Szalavitz,M(2012,May7).TheLinkBetweenInfertilityTreatmentsandBirthDefects.RetrievedOctober1,2015fromhttp://healthland.time.com/http://www.ivf-worldwide.com/ivf-history.html-(2014,November14).FertilityPreservationbyOvarianTissueBanking(OvarianTissueFreezing).fromhttps://www.centerforhumanreprod.com/-Chung,K(2012,March8).FertilityQ&AOvarianTissueFreezingAnemergingmethodoffertilitypreservationoffershopeforwomenwithcancer.Fromhttp://uscfertility.org/-Connor,S(2013,May17).‘MostexcitingbreakthroughinIVFtreatmentin30years’couldtriplenumberofbirthsSimpletechniquechoosesthebestembryo.From:http://www.independent.co.uk/-(2015,May8).“Miracle”babybornusingbreakthroughIVFtreatment.fromhttp://www.cbsnews.com/-Powers,M.NewCoNews:OvaScienceAimstoReshapeIVFUsingEggPrecursorCells.Fromhttp://www.bioworld.com/-Dayal,MandAthanasiadis,I(2013,November4).PreimplantationGeneticDiagnosis.Fromhttp://emedicine.medscape.com/-(2015,September).PreimplantationGeneticDiagnosis:PGD.from:http://americanpregnancy.org/-DesignerBabies.Fromhttp://www.early-childhood-education-degrees.com/the-pre-planned-childhood/-ChambersGM,SullivanEA,IshiharaO,ChapmanMG,AdamsonGD;Sullivan;Ishihara;Chapman;Adamson(June2009).“Theeconomicimpactofassistedreproductivetechnology:areviewofselecteddevelopedcountries”.Fertil.Steril.91(6):2281–94.-Jha,Alok(31May2007).“Winston:IVFclinicscorruptandgreedy”.TheGuardian(London).-“IsInVitroFertilizationBeingOverused?”.CBSNews.2009-08-12.-ChambersGM,SullivanEA,IshiharaO,ChapmanMG,AdamsonGD;Sullivan;Ishihara;----Chapman;Adamson(June2009).“Theeconomicimpactofassistedreproductivetechnology:areviewofselecteddevelopedcountries”.Fertil.Steril.91(6):2281–94.doi:10.1016/j.fertnstert.2009.04.029.PMID19481642.-http://ispub.com/IJH/6/1/4581-http://www.ncbi.nlm.nih.gov/pubmed/2221910-Edwards,R.G.andSharpe,D.J.(1971)Socialvaluesandresearchinhumanembryology.Nature,231,87-91.-StanleyFJ.In-vitrofertilization-agiftfortheinfertileoracycleofdespair?MedJAust1988;148:425-426.-VerlinskyY,PergamentE,StromC.ThepreimplantationgeneticdiagnosisofGeneticdiseases.JInVitroFertEmbyroTransf1990;7:1-5.-KirbyJMD.BioethicsofIVF-thestateofthedebate.JMedEthics1983;9:4548.-HershlagA,FlochJA,DeCherneyAH,LavyG.Comparisonofsingletonandmultiplepregnanciesininvitrofertilization(IVF)andembryotransfer(ET),JInVitroFertEmbryoTransf1990;7:157-159.-TheEditor.Invitrofertilization.JMedEthics1983;9:187-188.-DunstanGR.In-vitrofertilization:theethics.HumReprod1986;1:41-44.-GillonR.Pregnancy,obstetricsandthemoralstatusofthefetus.JMedEthics1988;14:3-4.-www.bworldonline.com/weekender/content.ph-https://www.alliedmarketresearch.com-KatoReproBiotechCenter-(2013,February15).TwinsofJoy.PhilippineStar,LifestyleSection-Haag,MandDorshorst,N(2013,April30).In-vitroFertilization:Anewtoolforthecommercialdairyman.www.progressivedairy.com

GRouPTHREE SolAR RoAdSInTRoduCTIonThis emerging technology paper will focus on the technology that harnesses renewable energy from the sun:solarpanelsanditsapplicationassolarroadstowardsthePhilippinesetting.

Solarroadsisnotyetavailableinthemarkethowever,thereisaprototypethatisbeingtestedinpublic.Theteamislimitedtospeculatinginprocuringasolarroadbasedontheavailabledatagatheredfromourresearchfromnewsarticles,companywebsites,historicalpricingfromalocalutilityprovider,toaPVWatts®Calculatorand,ourassumptions.

1. TECHnoloGy dESCRIPTIonSolarpoweristheconversionofsunlightintoelectricity,eitherdirectlyusingphotovoltaics(PV),orindirectlyusingconcentratedsolarpower(CSP).Concentratedsolarpowersystemsuselensesormirrorsandtrackingsystemstofocusalargeareaofsunlightintoasmallbeam.Photovoltaicsconvertlightintoanelectriccurrentusingthephotovoltaiceffect.

Theoriginofphotovoltaicsresearch(seebelowchart)canbetracedtotheyear1976usingthin-film

technology,thefollowingyearwithcrystallineandmulti-junctioncells. Solar Panels

Solarpanelreferstoapaneldesignedtoabsorbthesun’sraysasasourceofenergyforgeneratingelectricity or heating. PVSolarPanelsarecomprisedofeithermonocrystallineandmulticrystalline.Recentdevelopmentsfrommonocrystallineshowsa2%higherefficiencyversusthemulticrystallineand,forthepast3yearsthere’sbeenanincreaseofproduction(seefigure1.0).Onaveragemonocrystallineis5.7%highertoproducecompared

tothemulticrystallinehowever,outputfromamonocrystallinerangesbetween4%to8%comparedtoamulticrystallinewiththesamesizeandlowerbalance-of-system cost.

Solar Roads

Theconceptofsolarroadsiscenteredtheideaofusingpavedroadstoconvertsolarenergyintousableelectricitytopowerpublicfacilitiessuchastrafficlights,andstreetlamps,aswellascontributeenergytotheexistingenergygrid.

SolarRoadPanelsphotovoltaiccellscoveredbyaprotectivetemperedglassthatcansupporttheloadoftravellingvehicles.

Theinventedsolarpaneltobeusedininroadwayscontainsthefollowing:(1)TemperedGlass

(2)CircuitBoard(3)HeatingElements(4)Microprocessor,(5)Inverterand,(6)PVSolarPanels.

2. TECHnICAl EnVIRonMEnTThere are currently two frontrunners in the race to developusablecommercialsolarroads.

a) Solar Roadways

SolarRoadwaysIncorporatedisanAmericancompanymadeupofahusbandandwifeduothathasraisedover2.2MillionUSD,largelythroughacloudfundingsitecalledIndiegogo.

Picci PosadasVinz Racelis

Dru Robles

AsofMarch31,2014,theyhaveaworkingprototypesolarparkinglotwith0.4–square-meterhexagonalpanels,eachcontaining36-wattsworthofsolarpanels,heatingelementsformeltingnow,LEDlightsforroadsigns,andallthenecessarycircuitrytomakeitwork,undertemperedandtexturedglass.

The11-meter-longsolarparkinglothasa3600-wattsolararraycapableofproducingroughly14kilowatt-hoursofelectricityperday.

However,sincetheprototypewasannouncedinMarch2014therehasnotbeenanyconfirmationorupdateastotheactualworkingoutputofthemodel.

Detractorsarecriticalofthedesignduetothefollowing factors:

a) TemperedGlass:i) Thedesignlackstractionii) Malleabilityofglassovertime.iii) Uneconomical:(1) 20TrillionUSDfortemperedglassalone(2) Buryingcablesis8to10timesasexpensiveb) RoadRepairsi) Repairingonehexagonalsolarroadwaypanelis costly.ii) Differentialloadingontiles.c) Asphaltroadsarealreadymadeof99%recycledmaterial.d) Light-EmittingDiode(LED)bulbscannotbeseenundersunlight.e) SunlightExposure:i) Inefficientonparkinglotscoveredbycars.ii) Heatedroadsnotfeasiblesinceroadswithsnowarelocatedinareaswithminimalsunlightexposure.

SolarRoadwayshasseenrespondedtotheircritiquesattheirwebsiteregardingthesecriticisms.

ThefirmusedtheMohsscaleofmineralhardnesstocomparethehardnessofasphalttoglass.Claimsthatasphalthavingahardnessof1.3versusglassat5.5.Also,itwasnotedthatonceglassistempereditincreasesinhardnessto4to5timesfoldandpossiblyhigherwithfurtherresearchanddevelopment.Asphaltsabyproductofoilisnotaspotentinthepast,duetothetechnologicaladvancementsintherefiningprocesswherehigherqualityofresinsandoilshavebeenextracted.Leadingtovariousapplicationssuchasplastic,syntheticrubbers,cosmeticsandetc.Asphaltissimplyabinderthatholdstherockstogether.Themorerefinementfromasphalt,thelesseritsqualityand,whenoxidationtakesplacetheroadstartstoageanddegradeovertime.

Costingof20TrillionUSDtodeveloptemperedglassisanunreliableestimate.Thefirmisstillintheresearchanddevelopmentphaseandareunabletoprovideanycostinginformationrelatedtotemperedglassorreplacementofperhexagonalsolarroadpanel.

LEDlightscanbeseenduringthedaylightdependingonthedesign.ExamplesofLEDlightsusedduringthedayaretrafficlightsanddigitalbillboards.OurteamdrivesbyC5everymorningandthetwodigitalbillboardsalongthehighwayarequitevisibleifnotdistracting.

Oncethesnowmeltsontopofthesolarroadwaysitcangenerateelectricityagain,atthetimeitiscoveredby snow it can heat itself by using power from a smartgrid.Thistechnologyalsousesmicro-invertersmeaningthatifoneisunabletosoakupenergybyeitherbeingdamagedorbeingcoveredbyavehicle,

itscounterpartswouldstillfunctionasitisintended.

b) SolaRoads

PerhapslessambitiousthantheSolarRoadwaysproject,SolaRoadsisaDutchinitiativebytheTNOCompanythathasbeentryingtosolvethesolarroadpuzzlesince2009.InHollandandtheNetherlands,bikecommuterstakeprecedentontheroadoverdriversincars.AccordingtoanarticleonBBC.com,70%ofalljourneysaremadebybike.Therefore,theirpilotprojectisasolarroadforbicycles.

SolaRoadsdoesawaywithallthebellsandwhistlessuchasbuiltinLEDs,roadheating,DSLcableinfrastructure.However,thesystemdoesallowriderstochargetheirlightsandelectricbicycles,andlighttheroad.Thetechnologyisbeingdevelopedsothatdifferentsolarcellscanbeintegratedratherthanhavingtocustom-manufacturethem.

SolaRoadshasinstalledtheworld’sfirstworkingsolarroad:a70-metertesttracknearthetownofKrommenieoutsideAmsterdam.Duringitsfirstsixmonthsofoperation,theroadhasbeenabletogenerateover3,000kilowatt-hoursover,orapotential70kWhpersquaremeterofsolarroadperyear .

AccordingtoTheGuardian,thepathcosts€3m($3.37m)tobuild,andthelocalgovernmentplanstoextendthisto100metersby2016.

I. TrendsintheTechnology

GlobalsolarPVdemandtogrowbyupto25percent in 2015


Dru Robles

Factorstothisforecastcomesfromgovernmentincentivesandloweredtariffsparticularly,inJapan,China,IndiaandtheU.S.alongwiththecostreductionofproducingsolarpanels.GMTResearchexpectspricesofsolarpanelmodulestofallto64cents per watt.

Gridintegrationisbecominganincreasingfocusforinvertermanufacturers.

AccordingtoGreenTechMedia.com,“Invertermanufacturersarebeginningtodesignsolutionstohelpalleviatesomeoftheintegrationchallengesfacingutilities.”

II. SWOTAnalysis

STRENGTHS WEAKNESSES

1 SOLAR POWER IS A VIRTUALLY UNLIMITED [RENEWABLE] SOURCE OF 1 HIGH COST OF CAPITAL.

2 LIFE SPAN OF SOLAR PANELS IS 20-25 YEARS. 2 MAY REDUCE EFFICIENCY THROUGH DUST

ACCUMULATION

3 PRODUCES MINIMUM CARBON FOOTPRINT AND USES CLEAN ENERGY 3 EXCESS HEAT MAY DEGRADE SOLAR ROAD

PANELS.

4 PROGRAMMABLE TO MAKE ROAD SIGNS / NO MORE PAINTING OF THE ROADS 4 REDUCES EFFICIENCY AFTER 20 YEARS

5 USES LED LIGHTS. 5 SUNLIGHT CONVERSION IS MAXIMUM OF 20%

6 SOLAR PANELS PRESSURE SENSITIVE. 6 DOES NOT ACCUMULATE ENERGY WITHOUT SUNLIGHT

7 IT PAYS FOR ITSELF8 LOW MAINTENANCE

9 SILENT

OPPORTUNITIES THREATS

1 EMERGING TECHNOLOGY 1 SOLAR ROAD PANELS CAN BE STOLEN.

2 RESEARCH IS FUNDED BY A LOT OF PEOPLE. 2 HACKERS CAN DISRUPT THE SYSTEM.

3 GOVERNMENT SUPPORT 3 SOLAR ROAD PANELS CAN ATTRACT MANY ANIMALS DURING WINTER TIME.

4 IT CAN CREATE AND SUSTAIN JOBS 4 ACTS OF NATURE (LIGHTNING, FLOODING)

5 THERE ARE A LOT OF ROADS IN THE PHILIPPINES. 5

POSSIBILITY OF TECHNOLOGY PATENTS PREVENTING OTHERS FROM DEVELOPING SIMILAR TECHNOLOGIES.

6COUNTRIES WITH LONG HOURS OF DAYTIME CAN PRODUCE MORE ELECTRICITY

6 MIGHT NOT BENEFIT A FEW STAKEHOLDERS OF TRADITIONAL ENERGY FIRMS.

7 TIE IN WITH OTHER RENEWABLE ENERGY RESOURCES. 7

MAY NOT BE APPLICABLE TO COUNTRIES LOCATED NEAR NORTH AND SOUTH POLE DUE TO LESS FREQUENCY OF SUNLIGHT.

8 REDUCE CARBON DIOXIDE EMISSIONS 8 GOVERNMENT INTERFERANCE

PROPOSEDSTRATEGIES:

1. Share the patent of this technology to the publictobuild,createandimproveonthesolarpanelandroadtechnology.

2. Hireexperiencedexpertsinthefieldofcybersecuritytokeepthesystemsafeandsecured(securityandefficiency).

3. Generateemploymentevenfromsmallhouseholds(impactoneconomicgrowth)throughproductioncooperatives(micro-factories)backedupbygovernmentfunding.

4. SincetherearelotofroadsinthePhilippines,providesolarpanelroadsstartingonnon-majorroads,playgrounds,parks,airports,sothat,itcangenerate more electricity more than the regular powerplantproduces,keepingPhilippinesself-sustaining.5. Capitalexpenditureinresearchanddevelopmentforimprovingthetechnologysuchasminimalaccumulationofdust,improvedcoolingsystem,increasedefficiencyinsolarpowerconversion.

3. BuSInESS / InduSTRy / EduCATIon APPlICATIonSa. SolarHelipadandSolarRooftopParking

Ifnotforthewind,rooftopswouldbeareanidealplace to put solar panels because they are free from obstruction,highbuildingsareclearerofdust,andtheyareoftennotusedforanyotherpurpose.However,buildingswithhelipadsandrooftopparkingarenotabletobenefitfromsolarpanelsbecausethespaceisbeingusedforlandingandparking.

Thesolarroadwaytechnologycanbeusedtocreateadualpurposesurfaceforhelipadsandparkinglotsonrooftopsoftop-of-thelinebuildings.Furthermore,sincethepanelsareprotectedundertemperedglass,theyarenotasvulnerabletotheelementssuchastyphoonwinds,whichareoftenafactorwhenconsideringsitesforordinarysolarpanelinstallation.

Forcomparison,ADBinstalled2,040photovoltaicpanelsoccupying6,640sqmontheroofofADB’smainbuildingwillgenerate613megawatthoursofelectricity per year.

IfithadusedthetechnologyofSolaRoadsinstead,thesame6,640sqmcouldproduce474,800wattsperyear.Althoughtheyieldislower,theroofisbetterprotectedandservesadualpurpose.

Inthecaseofaparkinglot,around370carscanparkin6,640sqm(roughly1/3ofthespace).

4. CoST-BEnEFIT AnAlySISThedatawegatheredforthissectionisbasedonthefollowing assumptions :

(1) AccordingtoanewsarticlefromRapplertheownerofa5Kwsystemspent500,000Phpin2013inclusiveofasolarpanelinverter.Assumethat20solarpanelscosts450,000Php(22,500Phpperpanelincludinginstallation)withtheInverterat50,000Php(madeinchina). (2) Now,aprefabricatedSolarRoadconsistsof20Panelsatthesizeof4.5Mx4.5Mproducing675kWhprovidinga5Kwsystem.ThemeasurementisbasedonaroadinasubdivisioninManila,Philippines.Theroadwillcost450,000Phpincludinginstallation(assumingthetechnologyhasreachedtothispricingpoint)plusanadditional50,000Php


Dru Robles

per100Meterforamaininvertersystem.Each,prefabricatedSolarRoadconsistsofmicro-inverterssothatifapanelfails,therestwillstillbefunctional.

(3) BasedonKuryente.orgMeralcochargesahouseholdthatconsumesa400kWhpermonthonanaverageof10.16Php/kWhexclusiveoftaxes.SincetheSolarPanelroadusesa675kWhsystemweformulatedthecostonhowmuchMeralcochargesforahouseholdthatuses675kWhpermonth,resultinga41%contributionmarginorpricingof675kWhmonthlyconsumptionat14.30Php/kWh.

(4) WethenusedthePVWatts®Calculatortoinputthelocation(Manila,Philippines)toacquirethesolarradiationdataannually.AddedinthePVSystemSpecificationswherethetiltofthepanelsarefactoredinashorizontal,addedasystemlossofanadditional10%(15%to25%)toconsiderthetemperedglasslayer.InitialCostwascalculatedat100.00Php/Wdcor500,000Phpofphotovoltaicarraysizeatstandardtestconditions.Thedefaultvalueof100.00Php/Wdcfora5kWsystemisequivalenttoaninstalledcostofPhp100.00/W×5kW×1,000W/kW=500,000.00Php.

(5) SellingpricetoMeralcofora675kWh/monthat10.16Php.

Option1NoInvestmentonSolarRoadCost: NoneBenefit:NoCapitalExpenditure

Option2SolarRoad5KwSystemgenerating5,188kWhperyearat10.16PhpperKwhCost:500,000.00phpInstallationof20SolarPanelRoadincludingInverterSystemBenefit:CashInflowfromSellingEnergyat52,710Phpperyear.

Option3SolarRoad10KwSystemgenerating10,376kWhperyearat10.16PhpperKwhCost:950,000.00phpInstallationof40SolarPanelRoadincludingInverterSystemBenefit:CashInflowfromSellingEnergyat105,420Phpperyear.

Option4SolarRoad15KwSystemgenerating15,564kWhperyearat10.16PhpperKwhCost:1,400,000.00phpInstallationof60SolarPanelRoadincludingInverterSystemBenefit:CashInflowfromSellingEnergyat158,130Phpperyear.

a. TotalCostofOwnership(TCO)

Sincetheteamisunabletoprovidetheactualcostownershipgiventhatthedataisstillinthedevelopmentphase,wehaveindicatedpossibleacquisition,ownership,post-ownershipforobviousandhiddencosts.

b. DirectandIndirect/StrategicBenefits

DIRECT:

(1) Abundant:Sunlightorsolarradiationwillnotexpireanytimesoon.Thissun’slifeexpectancyisestimatedtohereforthenext5billionyears.

(2) GoodAvailability:SolarEnergyisavailableateverycorneroftheworld.

(3) LowMaintenance:SolarPanelsdonotneedalotofmaintenanceandhasalifespanof20yearsof100%efficiency–withawarrantyfromtoday’smanufacturersofupto25years.Oncethetemperedglassisperfectedthere’snotmanypartstoreplace

the system.

(4) ManyApplications:solarenergyprovideselectricityanditcanfreelypowerlightpostsatnight–givenbatterystoragetechnologyhascaughtup,households,electricvehicles,appliances,gadgetsandetc.

(5) ReduceElectricityCosts:withtheabundanceofsolarroadseverywhere,itwoulddrasticallyreduceelectricitycostsandpossibly,wewouldpayonlyastandardflatrateutilitychargeformaintenanceandimprovements.

(6) Renewable:Solarenergyisarenewablesource,itdoesn’trunoutascomparedwithfossilfuel,coalandnuclearenergysources.

(7) Sustainable:asustainableenergysourcedoesn’tcompromisethefutureofthenextgeneration,whichisessentiallylimitless.

INDIRECT:

(1) EnvironmentallyFriendly:Utilizingsolarenergydoesn’tcausepollution.

(2) FinancialSupportfromtheGovernment:Moreandmoregovernmentsaroundtheworldarefundingresearchtosolarpowerresearchandalsoofferinglowertariffsifyouuserenewableenergyandprovideincentives.

(3) Silent:Unlikewindturbineswithhugepropellers,thistechnologydoesn’thaveanyifnotminimalmovingpartshence,itdoesn’tproduceanynoise.

(4) SpaceSaver:SolarPanelRoads,asitsnameimplies,isadualpurposetechnology,itdoesn’teatupvaluablespacewithoutpurpose.

(5) TechnologicalAdvancements:Developmentsfrom other emerging technologies such as nanotechnology,quantumphysicscanbeusedtofurtherincreaseelectricaloutput.Imaginecrystallinecellsinthe70scouldonlyharness13%fromsolarradiationandrecently,newsof25.6%efficiencyhasbeenachieved.

c. FinancialAnalysis

Option1N/A

Option2(5KwSystem)CashInflowperYear Php52,710Investment Php500,000PaybackPeriod(Years) 9.49ReturnonInvestment 1.64 Option3(10KwSystem)CashInflowperYear Php105,420Investment Php950,000PaybackPeriod 9.01ReturnonInvestment 1.77 Option4(15KwSystem)CashInflowperYear Php158,130Investment Php1,400,000PaybackPeriod 8.85ReturnonInvestment 1.82

All3optionsshowapaybackperiodonanaverageof9.12YearsyieldingapositiveReturnoninvestmentratioofatleast160%returnin25years.

5. ETHICAl IMPlICATIonS (IF Any)AccordingtotheGlobalClimateRiskIndex2015,wasthecountrymostadverselyaffectedbyclimatechangein2013,dueinlargeparttoTyphoonYolanda(InternationalnameHaiyan)inadditionto7othertyphoonsandmultiplestormsthathitthecountrythatyear.Inanindexbasedondatafrom1994to2013,thePhilippinesranked5thforthatperiodwhileHonduras,Myanmar,andHaititoppedthe list.

Takingautilitarianperspective,solarroadsarenotonlybeneficialtoallelectricityusers,butalsotoeveryoneandeverythingthatbreathesair,andeveryonethatinthePhilippines.Asacleanenergysolution,solarenergydoesnotonlyprovideasustainablesourceofenergy,butonethathaslowcarbonemissions(owingtotheproductionprocess).


Dru Robles

Byreducingourcarbonemissions,reduceourcountry’scontributiontoclimatechange.EveniftheemissionsinthePhilippinesconstitutelessthan1%oftotalglobalcarbonemissions,thecountrycanstandinsolidaritywith136countrieshavesubmittedtheirINDCtotheUNasofOctober1,2015.

6. nATIon-BuIldInG IMPlICATIonSAccordingtotheGlobalBenchmarkStudyofResidentialElectricityTariffspaperpublishedbytheLantauGroup,theManilahasthethirdhighestpricesofelectricityafterSydneyandTokyo.Thetariffwhichgoestodistributioncompaniesaccountsfor16percentofthetotalpowerbill.Transmissionmakesup8.7percentofthebillaccordingtoNSCBsecretary-generalJoseAlbert.AccordingtoEnerData.net,highcostandsketchyreliabilityofelectricitysuppliesinthePhilippinesarenowthemaindeterrentstoinvestinginthecountry.

ThePhilippinesistheonlycountryinSoutheastAsiathatdoesnotsubsidizethecostofelectricity.Assuch,weareatagreatdisadvantageamongASEANnations,especiallyinlightoftheupcomingASEANintegration,whichwillturntheregionintoasingleeconomicmarketwithfreetradeamongstthemember countries.

AccordingtothischartcreatedbyInternationalEnergyConsultants,arunningamachinery-heavyfactoryinthePhilippinescouldpaymorethantwice as much for power than a similar factory in IndonesiaandTaiwan.ASEANcountriescancomeinandhelp.

PowercostsisoneofthemajorcontributingfactorstothePhilippinesconsistentlylowrankingsinWorldBankGroup’sInternationalFinanceCorporationEaseofDoingBusinesssurvey.

RefrencesCreatedbyNationalRenewableEnergyLaboratory(NREL)http://pvwatts.nrel.gov/index.phphttps://en.wikipedia.org/wiki/Solar_powerandhttp://www.energy.gov/science-innovation/energy-sourceshttp://www.nrel.gov/ncpv/images/efficiency_chart.jpghttps://en.wikipedia.org/wiki/Solar_panelhttps://www.ihs.com/pdf/Top-Solar-Power-Industry-Trends-for-2015_213963110915583632.pdfThebalanceofsystem(BOS)encompassesallcomponentsofaphotovoltaicsystemotherthanthephotovoltaicpanels.https://en.wikipedia.org/wiki/Balance_of_systemhttp://www.solarroadways.com/https://www.indiegogo.com/http://www.solarroadways.com/clearingthefreakinair.shtmlhttp://geology.com/minerals/mohs-hardness-scale.shtmlhttp://www.lambertpaving.com/articles.htm#1http://www.bbc.com/news/magazine-23587916http://mic.com/articles/117948/6-months-later-here-s-what-s-happened-to-the-netherland-s-solar-bike-pathshttp://www.theguardian.com/environment/2014/nov/05/worlds-first-solar-cycle-lane-opening-in-the-netherlandshttps://www.ihs.com/pdf/Top-Solar-Power-Industry-Trends-for-2015_213963110915583632.pdfhttp://www.greentechmedia.com/articles/read/The-Most-Important-Trends-in-Solar-in-8-Chartshttp://rent.ph/resources/wp-content/uploads/2012/06/adb.jpgYoumayalsorefertotheSolarRoadDataexcelfilesubmittedalongwiththispaper.http://www.rappler.com/business/industries/173-power-and-energy/64165-solar-power-ph-households-net-meteringhttp://www.kuryente.org.ph/electric-company/rates/128CreatedbyNationalRenewableEnergyLaboratory(NREL)http://pvwatts.nrel.gov/index.phpJacobs&Chase,OperationsandSupplyChainManagement,McGraw-HillEducation.2015,p.412ISBN-139780077151621http://energyinformative.org/solar-energy-pros-and-cons/http://www.computerworld.com/article/2989813/sustainable-it/panasonic-surpasses-solarcity-with-worlds-most-efficient-solar-panel.htmlhttp://www.rappler.com/science-nature/environment/76868-philippines-tops-global-climate-risk-indexhttp://www.rappler.com/science-nature/environment/107759-philippines-indc-climate-change-united-nationshttp://www.bworldonline.com/weekender/content.php?id=113411http://www.philstar.com/business/2013/10/07/1242233/phl-power-rates-among-highest-asia


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