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Standard MBA Program

17 March 2014

This issue of Hypertech E-magazine
features 5 emerging technologies:
Wearable User Interface
Gesture Control Technology
Human Augmentation
These 5 emerging technologies have a
common theme: the relationship between
humans and machines due to the increased
hype around smart machines, cognitive
computing and the Internet of Things.
The topic on Wearable User Interface is the
latest in the evolution of the trend from the
Mobile Internet towards wearable/
everywhere computing.
Gamification sprouted as a natural off-shoot of collaborative computing and social
networking. Gesture Control Technology has evolved from the Sixth Sense technology
of Pranav Mistry and has become pervasive in almost all smart mobile devices. Human
augmentation is becoming an everyday reality where prosthetic devices can already be
manufactured through 3D printing. And of course, at the heart of all these technologies
are the biochips which serve to control the various aspects of these technologies.
Each topic discusses the corresponding Strength-Weakness-Opportunities-Threat
(SWOT) Analysis of the respective technologies. The applications to business,
education, government, and various industries are then discussed as may be
appropriate with the corresponding cost/benefit analysis. Finally, the nation-building
and ethical implications of the emerging technologies are brought forward to provide
fresh insights and good governance approaches.

All contents on this E-magazine are from the
Emerging Technology Paper of INFOTE Class S08

Design & Illustration By:
Marianne Abadines Mancenido

CATURA, Melissa Paula
GAJO, Charina
QUINES, Angel Rose
SABIANO, Khristian
Group 1

Technology Description
A. Environment
Wearable technologies are clothing
and accessories incorporating computer
and advanced electronic technologies. The
designs often incorporate practical
functions and features, but may also have a
purely critical or aesthetic agenda. They are
also referred to as body-borne computers,
considered as a type of wearable
technology that has in its core an electronic
device that performs calculations and
processes information. Some of the
challenges facing wearable technologies
revolve around its complexity. Wearable
technologies tend to be expensive and
complicated to use altogether.

It can be a challenge to use
especially for people who are not as tech
savvy. Wearable technologies being highly
technological in nature are risky and very
much susceptible to bugs, hacks and viruses
which can ultimately to lead to malfunction.
Due also to its fragile and sensitive build, it
can be easily damaged if not taken cared
B. Trends in the Technology
Wearable technology is set to be
2014s biggest trend. It was one of the key
trends at the International CES, the world's
largest consumer electronics show held in
Las Vegas.

A recent report by Juniper Research
predicts shipments of wearable devices will
increase to 130 million by 2018, ten times
higher than the estimated figure for 2014.
Research firm Gartner predicts wearable
computers will be a $10 billion market by
In a whitepaper prepared by IHS
Electronics & Media entitled Wearable
Technology Market Assessment
published in September 2013, it provided
an overview and assessment of the world
market of wearable technologies, its market
drivers and forecasts for growth in the next
five years. IHS Electronics & Media focused
on five applications for wearable
technologies namely (1) healthcare and
medical applications, (2) fitness and
wellness applications, (3) infotainment

applications, (4) industrial applications and
(5) military applications and 23 product
categories within these five applications.
Based from the study, wearable
technologies can be defined as products
that must be worn on the users body for an
extended period of time significantly
enhancing the users experience as a result
of the product being worn.

Likewise, it must contain advanced
circuitry, wireless connectivity and at least a
minimal level of independent processing
ability. These criteria should be met in
order for products to be considered as
wearable technologies.

In terms of its five applications, the
study defined that for fitness and wellness
applications, wearable technologies are
used in the monitoring of activity and
emotions. Healthcare and medical
applications are in monitoring of vital signs
and augmenting senses while infotainment
applications are used to receive and
transmit real-time information for
entertainment or enhanced lifestyle
purposes. Lastly, industrial and military
applications are used to receive and or
transmit real-time data in military and or
industrial environments. The study also
enumerated an array of vendors offering
wearable technologies including some of
the more well-known brands such as
Samsung and Sony for infotainment
applications, Nike and Timex for fitness and

wellness applications, Abbot and Innovega
for healthcare and medical applications and
Motorola and SAP for industrial and military
In the whitepaper, IHS Electronics &
Media forecasted a preliminary scenario of
the world market for wearable technologies
in the next five years.
The whitepaper defined three
scenarios downside scenario, base
scenario and upside scenario. The
downside, base and upside scenarios were
defined as conservative; a reasonable
adoption rate for wearable technology
based on enhanced user experience and
technological success and represents a
best-case for wearable technology adoption
respectively. These scenarios were
presented to reflect the uncertainty in the

long-term future of wearable technology
and the varying factors that will affect
future outcomes.

IHS Electronics & Media identified market
drivers for the five applications. For
infotainment applications, the main market
drivers identified are the growing number
of smart phone users and that smart
phones are becoming the hub of
information thus the increased number of
devices that will connect to and exchange
data with smart phones such as smart
watches and smart glasses.

For healthcare and medical applications as
well as for fitness and wellness applications,
the main market drivers are the
demographic and social trends such as
rising average life expectancy, higher rate of
seniors, increased prevalence of chronic
disease, larger proportion of patients
requiring long-term care and the need to
decrease length of hospital stay as well as
the increase demand of user groups like
professional athletes, recreational fitness
consumers, clinical research, corporate
wellness programs and chronic disease

For industrial and military applications, the
use heads-up display in production lines,
hand-worn terminals in logistics and
warehousing, smart clothing to track user

location and detect industrial gases and
providing information on maps and routes
to improve situational awareness are the
market drivers identified.
Wearable technologies range from
smart glasses to watches, socks and even
jewellery. A recent poll found 72% of
people would only buy the technology if it
looked good while 67% said the devices
would need to fit with their personal style.
Some of the famous wearable technologies
include smart glasses, smart watches,
cameras and sports bands.
Wearable technologies features are
stylish and futuristic in design. It is aimed to
be Wi-Fi fidelity ready with voice command
and touch screen capacities as well as be
equipped with tracking systems such as
GPS, pedometers and many more.

Likewise, it can be integrated to social
media such as Facebook, Twitter, Instagram
and the like.
C. Strengths, Weaknesses, Opportunities
and Threats (SWOT) Analysis
- S1: Flexible and convenient
- S2: Provides the capability to
- S3: Provides enhanced
communication, memory, sensing,
recognition and logical skills
- S4: Enhances productivity in the
- S5: Can be used as a tracking device
(e.g. GPS, heart rate sensor,
movement sensor etc.)

- W1: Expensive
- W2: Complicated to use especially
for non-tech savvy people
- W3: Discomfort (e.g. heavy, heat
emission due to prolonged use etc.)
- O1: Innovation due to the rise of
technologies where wearable
- devices are easily developed and
produced in the market
- O2: Abundance of skilled people
who can develop wearable
technologies (e.g. designers,
developers, CGI artists, filmmakers,
storytellers etc.)

- T1: Risk of bugs, hacks and viruses
leading to malfunction
- T2: Fragile and sensitive build
susceptible to damage

Business/Industry/Education Applications
Wearable Technologies have the following
- Healthcare and Medicine
- Fitness and wellness
- Infotainment
- Industrial
- Military

Below are three products currently in the
a. PowerPod by Sqord
The Sqord PowerPod is a three-
axis accelerometer that uses a
sophisticated algorithm to measure the
intensity and duration of your activity.
The battery life is expected to last
around 12 months or more under
normal usage. You would need a new
PowerPod from Sqored when the
battery finally dies. It is matched to the
existing account of the user so that the
user can still continue using the points
and rewards. About the size of a small
cookie, the user can put the Sqord

PowerPad anywhere but usually they
wear it on their ankle, or wrist.
Whether in a school, class, youth
organization, club or sports team Sqord
is perfect to use. Not only to increase
the physical activities of the kids in their
group. But is also a great way of kids
socializing in groups. It promotes
bonding of kids with in a group more
tightly, getting them to communicate,
compete and stay connected. Because
of kids innate desire to communicate,
connect and compete with their peers.
Sqord is designed for groups of kids and
tested in school. Unlike other
pedometers and fitness devices, Sqord
is fun because its social and not just
only a game.

The device was piloted in schools
and you groups across USA, the results
returned was great. Kids move more,
engage more and demonstrated a
measureable increase in physical
activity. For organizations, Sqord gives
an admistrative reporting tool with
quantifiable metrics on the physical
activities, levels and participation of
each of the participants. It provides
transparency in measuring physical
activities that allows teachers and
coaches to see the activities of their

b. Qualcomm Toq Smartwatch for
Android Devices
A revolutionary smart watch that
has a Qualcomm Mirasol color touch
screen display that looks different
because its different. Toq leverages the
light around it so your screen is visible
oven on bright sunlight with
distinguishes it from other smart
watches. Theyre ideal for discretely
checking messages, and now it would
hard to miss a call. Notifications are
pushed to the smart watch, it is device
that is designed to work with your

- Clock faces - Certain clock faces
display additional information such
as calendar appointments, weather
and stocks
- Common hub - Initiate voice calls on
your phone or connected Bluetooth
headset, send quick texts, view
recent call and text activity, and
- Calendar - Sync multiple calendars
from your smartphone and view
events for the current day and next
- Music - Control the media player
application on your phone
- Stocks - Keep track of your favorite
stocks with quotes from E*TRADE

- Weather - X`x`Local and reliable
weather forecasts from
AccuWeather are delivered directly
to your wrist
- Notification - Receive notifications
directly to your wrist from select
Android apps loaded on your
- Status - Check your connection
status, battery level, and send an
alert to help find your phone
c. Lumus DK40 Smartglasses
Even though with some
resemblance with Google Glass, Lumus
DK40 Smartglasses is personal head-up
display with a variety of yellow, orange
and slate-colored frames.

What sets it apart from other
smartglasses is that the Lumus DK40
projects the crystal clear image in the
center of the field of vision of the right
eye unlike others they use semi-blurry
plastic lenses that obscure vision.
Apart from using actual glass
lenses, perhaps the most important
difference between Lumus DK40 and
the others is that theres no fat cbo of a
beam splitter, or awkward separate
projector screens. The company Lumus,
with its 13 years in the field has
imbedded prisms as part of their coating
on the glass. Although they appear
stripped, your eye puts them together
into a cohesive image.

Forecast applications of wearable
technology on Industrial, Military and
Healthcare, Sports, and Fitness:

Cost-Benefit Analysis
a. Cost
i. PowerPod by Sqord

Memberships (and
$ 3.99/month
$ 30.50/year
One-time activation fee $ 12.00
One-time purchase
Syncstation $ 12.50

Qualcomm Toq Smartwatch for
Android Devices
$ 349.99
ii. Lumus Wearable Eyeglasses
Approx. $ 1,500.00
b. Benefits

We can apply the advance feature Lumus
Wearable Smartglasses in Health Care. For
example, Lumus allowed the doctors to
'see' people's veins when they're inserting
needles or operating. This created more
efficiency because they're getting the job
done faster, and they can also do it better.

Therefore, they're also reducing costs. We
can compute for the Payback Period and
Return on Investment (ROI) using the
following assumptions:

Unit Cost in USD 1,500.00 $
Exchange Rate 45.00 Php
Unit Cost in Php 67,500.00 Php
Duties and Taxes (15%) 77,625.00 Php
Total cost for 15 Units 1,164,375.00 Php
Monthly Savings due to
effciciency and less
expenses/cost of travel 50,000.00 Php
Warranty in Years 30

Payback Period and ROI are computed by:
Cost of Ownership / Monthly Savings =
Total Months
Payback Period: Total Months / 12
ROI: (Warranty in Years ROI in Years) /
Warranty in Years
Payback Period in months 23
Payback Period in years 2
Return on Investment 56%

Again, it all boils down to increased
efficiency brought by using wearable
technology. As job is done faster, less time
and resources are consumed, and by this,
savings are achieved. Also, with less time
involved in performing medical operations,
one can expect to accept more patients,
thereby increasing sales and revenue for
the hospital.

Ethical Implication
1. Privacy

In a nutshell, wearable technology
incorporates computer and human contact
(as people would be putting it on their
bodies) towards a more practical,
informative and easier way of living.

Google Glass is an example of a wearable
device that owners put on like glasses but
act as a portable computer. By just merely
talking to the machine or swiping the
fingertips on the touch sensitive frame,
users can take great pictures, know the
exact location of a place, produce data or
information regarding a certain item that
the owner is looking at, and so on and so
forth. Its possibilities are endless! However,
many are now questioning the product not
technically but ethically.

According to Meister and Han (2013), Kodak
cameras were once banned in the US during
its inception in the late 19
century. People
became afraid that its sole purpose of
taking pictures can lead to invasion of
privacy by taking someone elses.

As the famous camera grew popular, people
became more aware that cameras can be
freely used as long society understands the
privacy of each subject.

Same goes for Wearable devices such as
Google Glass.

A bar in Seattle was the first to ban Google
Glass on its premises because of unwanted
photographs or videos taken of other
customers inside the bar. (Todd Bishop,

Piracy was also linked with Google Glass
when an owner was wearing the hi-tech
spectacles inside the movie house.
Although it was proven that the owner was
not using them while watching the film,
Department of Homeland Security in the US
raised concerns that people may illegally
record movies inside the theater. (Ribeiro,

In order to prevent piracy and privacy
breach, countries have certain laws against
said actions which are considered
punishable by jail sentence and/or fine
payment. But such crimes can be stopped if
each individual shall live by the golden rule:
Do unto others what you want others to
do unto you.

Human Behavior

Human Behavior is another questionable
aspect of wearable technology. In this day
and age of high-definition technology, no
doubt it can change a person.

But the question is how and up to what

An ethically upright use of wearable devices
is that it can alter the behavior of
individuals for the better. Many specialists
say that a habit is formed in 21 days; and
with the help of wearable devices, users can
be one step closer to their goal of a better
lifestyle. Examples of such technologies are
the Nike Fit and Airo Wrist band where it
tracks eating habits of wearer as well as its
physical activities. On the other hand, a
questionable ethical issue for wearable
devices is that it can promote anti-social
behavior among users. A person is called
Anti-Social when he/she lacks consideration
for others which causes damage to others,
may it be intentional or thru negligence
(Wikipedia, 2007). This behavior is
becoming prevalent nowadays, with all the
evolving social media applications and self-
obsolete smart devices. Same goes for
wearable technologies.

It can either bring people closer who are
physically miles apart or it can tear
relationships of humans who are just inches
away. Since wearable devices are so smart
(it can do A LOT of things that does not only
help people but also entertain individuals as
well), people can get used to doing things
on their own without the help of human

Technology is a double edged sword; either
it can be used for humanity or against
humanity. Users are still smarter than the
device itself so it should be bore in mind
that limits and values are in place to protect
not only others but users as well.

Nation Building Implications
As with all inventions, wearable technology
exhibits both pros and cons to becoming as
common as smart phones are today.

Wearable technologies continue to
give access to information quickly
and easily, which is a pro and con in
and of itself.

People become more and more
connected to their devices, social
interaction deteriorates

Wearable technologies will only be
available to a specific market

Given the economic situation we
have, people on the middle to lower
class may opt to be more practical
and use the old fashioned ways of
doing things




ANG, Prince Darhyl Ryan
BAUTISTA, Bryan Dominique
MENDOZA, Maria Alexandra
ORIGENES, Hershey Valerie
PRIETO, Gerlyn Grace
Group 2

Business/Industry/Education Applications
Since time immemorial, humans have this
innate need for competition and
achievement. On a daily basis, without
words spoken, without knowing as to who
our rivals are, we create contests in our
head. We feel accomplished in the littlest
things, like beating the red light, winning in
a video game, and getting praised by our
superiors and subordinates in the
workplace. This competitive nature of
humans brought about gamification.
Gamification is the concept of applying
game-design thinking to non-game
applications to make them more fun and

A. Growing Popularity
According to Gartner, Inc., an information
technology research and advisory company,
by 2014, more than 70% of Global 2000
organizations will have at least one
gamified application.
This success of gamification is largely driven
by novelty and hype and is positioned to
become a highly significant trend over the
next five years.

What is Gamification?
Gartner Predicts Over 70 Percent of Global 2000
Organizations Will Have at Least One Gamified
Application by 2014

According to Brian Burke, research vice
president at Gartner, gamification aims to
inspire deeper, more engaged relationships
and to change behavior, but it needs to be
implemented thoughtfully. Successful and
sustainable gamification can convert
customers into fans, turn work into fun, or
make learning a joy.

As stated by Gartner, Inc., there are
three key ingredients in successfully
applying gamification, thus engaging an
audience. These are: motivation,
momentum, and meaning.

Motivation is inspired by
most of today's gamified
applications primarily by
offering extrinsic rewards
and/or weak intrinsic
rewards to direct behavioral

Gartner Predicts Over 70 Percent of Global 2000
Organizations Will Have at Least One Gamified
Application by 2014

Extrinsic motivation comes from
outside an individual and is inspired
by rewards such as money and
grades. Intrinsic motivation exists
within an individual and derives
from that person's interest in, or
enjoyment of, the task. "Framing the
right motivations is an important
consideration when designing
gamified applications," said Mr.
Burke. "It's essential to use the right
mix of intrinsic and extrinsic
motivators, combined with
appropriate player relationships
competitive or collaborative.

Momentum depends on sustained
engagement. In gaming, momentum
is achieved by balancing the
difficulty of the challenges
presented with the skill levels of the

If players find challenges too easy,
they will soon get bored. On the
other hand, if challenges are too
difficult, players will become
frustrated. Gamified applications
need to engage players quickly and
maintain their engagement through
deft use of game mechanics such as
challenges, rules, chance, rewards
and levels.

Meaning is about serving a larger
purpose. To succeed, gamified
applications must provide rewards
that are meaningful to the

Different people will find different
rewards and incentives meaningful,
but many will value opportunities to
help charities through donations,
lose weight, master a specific skill or
achieve a significant task.

The goals of gamification are to achieve
higher levels of engagement, change
behaviors and stimulate innovation.

The opportunities for businesses are great
from having more engaged customers, to
crowd sourcing innovation, or improving
employee performance.

Gartner Predicts Over 70 Percent of Global 2000
Organizations Will Have at Least One Gamified
Application by 2014

B. Gamification is Changing the Way
We Interact

TEDx speaker Catherine Aurelio says that
gamification changes the way we interact.
In her speech, Ms. Aurelio said that
gamification boosts repeat usage of a
website because of the following:
Points get users invested in site
Leaderboards encourage competition
and repeat visits
Tasks get users engaged in creating
content and increase time on site
Dynamically notify users that actions
and earn them rewards.

C. Gamification and Customers

1. Travel Awards Programs or
Frequent Fliers

In our country, Philippine Airlines
has been the first one to introduce
their Mabuhay Miles program,
wherein travelers earn points
whenever they travel, and those
points have monetary value.

TEDxTalks. (2011, July 17). TEDxSantaCruz:
Catherine Aurelio Gamification. Retrieved from

2. Points for Store Visits and Purchases

Starbucks Philippines has recently
introduced their Starbucks Card. The
Starbucks Card is somewhat similar to a
debit card. You ask your Starbucks Barista
to load your card, and when you purchase
beverages and whole grain coffee, you
earn points, referred to as stars.

Why Gamification?
According to Ms. Aurelio, gamification
satisfies human needs for reward, status,
and altruism. Developers and innovators
have known for years how to incent and
motivate users and employees by using
game dynamics.

D. Gamification and Education
The application of gamification has been
an effective tool in education. From profit-
driven goals, gamification has expanded to
education and to promoting something

Example 1

TEDxTalks. (2011, July 17). TEDxSantaCruz:
Catherine Aurelio Gamification. Retrieved from

HopeLabs mission is to promote and
improve human health and well being by
using technology. Their innovative solution
is to Play With Purpose: Harnessing the
power of technology and play to improve

HopeLab successfully combined education,
the promotion of health and wellness, and
gamification. Users purchase games that
allow them to earn points and rewards.
These winnings allow them to purchase
accessories for their avatars and join a
community wherein other HopeLabs
clients participate as well.

HopeLabs products consist of the following
1. Re-Mission 2
A collection of online games to help
young people fight cancer.

2. Zamzee
The motivational game-based
website that gets kids moving more.

3. Resilience Initiative
Exploring ways technology can
support psychological and biological

4. Re-Mission
The original cancer-fighting video

5. Ruckus Nation
The idea competition that generated
product ideas to get kids moving.

6. Digital Storytelling Workshop
A workshop that enabled young
cancer survivors to share their

Example 2

Duolingo is a free language learning and
crowd sourced text translation application.

It is accessible through the Web, iOS, and
Androids. Duolingo offers Latin American
Spanish, French, German, Italian, and
Brazilian Portuguese courses for its
It offers extensive written lessons and
dictations. It has a gamified skill tree that
users can progress through.

Users gain skill points as they complete
certain levels.
Users can also track their
records and the application constantly
notifies you when you are lagging behind
the lessons.


E. Gamification and Corporations

According to Justin Baird, a TEDx speaker in
Phoenixville, most companies in America
employ young professionals with ages 25
years old and below. These young
professionals are from a generation that
expects immediate gratification.

They have very little patience and they
celebrate small victories. Businesses turn to
gamification to engage their employees.
Companies apply an Achievement System
to work. An achievement system is a way to
provide a trophy, badge, or award outside
of the normal game parameters.

Studies have shown that the small
euphoria someone gets when they unlock
an achievement in a game, nearly
duplicates the euphoria they get when they
try addicting drugs. And this actually serves
a strong, invisible hand in guiding a persons
behavior. says Mr. Baird.
By applying
gamification, we can put together an
achievement system to make our
businesses grow and increase efficiency and
effectivity among employees.

TEDxTalks. (2012, November 29). Gamification of Corporate
America: Justin Baird at TEDxPhoenixville Retrieved from

All of this is possible if we have the courage
to make work like a game.

Example 1

NTT Data has used gamification to develop
leaders. Although still in its early stages, the
system has been showing impressive
business results. The company believes that
leadership cannot be taught and that it has
to be experienced. The company came up
with The Ignite Leadership game. This gives
leaders the opportunity to learn more
about new management subjects areas, and
about a role they aspire to within the
It allows them to collaborate
with each other online, get instant feedback
from peers, and be recognized for their
game play, all while becoming more visible
to the organization as potential leaders.

The game targets to develop five key skills
for leaders: negotiation, communication,
time management, change management,
and problem solving.

TEDxTalks. (2012, November 29). Gamification of Corporate
America: Justin Baird at TEDxPhoenixville Retrieved from

Deloittes Leadership Academy is an online
curriculum that the consulting agency uses
to train both its own employees and those of
its client companies.
With a structure that
embeds missions, badges, and leaderboards
into a user-friendly platform alongside video
lectures, in-depth courses, tests and quizzes,
the virtual academy encourages and
promotes the skills most important to
thearsenal of future company leaders at


A. Cite Total Cost of Ownership (TCO)
Capital Investment, Hidden Costs

Gamification is a relatively new field as such
its total cost of ownership isnt fully
understood. In order to grasp the cost of a
gamification system one must first realize
that it is not like most marketing programs
where they have finite ends depending on
either time or budget. Gamification is more
similar to multiplayer online games and
loyalty systems that once accustomed to
the design, they expect that rewards to
continue and evolve relative to their
mastery and tastes

Zichermann, G. (2011, June 15). Gamification has issues, but
they aren't the ones everyone focuses on. Retrieved from
O'Reilly Radar:
Additionally, the diverse nature of
gamification allows for relatively simple
implementations to more complex ones.
Either way, it has to be constantly
maintained if benefits are to be continued
to be reaped.
Unlike a few years ago where gamification
meant building a whole tech infrastructure
from scratch
it is easier today to
implement a system due to gamification
platform providers such as Badgeville and
Bunchball. Some of these companies offer
up-front purchases while others provide
monthly licensing. Below are some of the
common types of pricing models offered by
the platform vendors.
Up-front purchase
Revenue Share
Deliverables based

Zichermann, G. (2011, June 15). Gamification has issues, but
they aren't the ones everyone focuses on. Retrieved from
O'Reilly Radar:

Although one can reduce upfront cost by
selecting an appropriate platform provider,
there are other aspects that should be
considered regarding overall cost. There are
costs that are ongoing such as
compliance/legal costs and economic
balancing (if youre running a virtual
economy), community management and
policing, and continuous creative (avatars,
challenges, etc). Whichever the case,
gamification is a multi-year project which
needs to be budgeted for.

B. Direct and Indirect
/ Strategic Benefits

Gamification is primarily a data-based
business strategy as its main idea is to
design games that align with a companys
business goals and objectives. By setting
strategic goals, ROI can be guaranteed to
companies if gamification is designed
correctly. Focusing on short-term factors
will generate benefits while risking larger
long-term costs. Once the strategies are
implemented, companies track their ROI.
Strategic benefits could be classified into
tangible and intangible.

Zichermann, G. (2011, June 15). Gamification has issues, but
they aren't the ones everyone focuses on. Retrieved from
O'Reilly Radar:

1. Increase in Sales
Increase in sales is frequently evident
for most companies that utilize
gamification. It enables a companys
growth in profit margin and channels
revenue by increasing trial usage and
buying clicks for some instances, say
Autodesk. For most case studies, there
is quite an impressive ROI from a
companys initial marketing
2. Customer Engagement
A major competitive advantage of
gamification is its ability to drive
customer and employee engagement.
Gamified systems endorse customer
acquisition and expand a network of
sharing. Property-investing applications,
like Investorville, has been able to
create new loans.
Dominos Pizza let customers create
their own pizza through a gaming
application Pizza Hero, which has also
marked an increase in their sales

3. Enhanced productivity
Gamification also targets continuous flow of
revenue for many businesses while
improving its overall productivity. A
companys well-designed gamified system
enables greater worker productivity,
therefore, quicker turnaround time in
business. Some programs reduce attrition,
absenteeism, and rising health care costs
enabling companies to save expenses.
Cutting insurance premium improves
overall company performance.

4. Enhanced health and wellbeing
A companys well-designed gamified
system can also serve as health
engagement tool to change employee
Wellness programs have increased
employee engagement with health
activities. It encourages them to
achieve personal fitness goals on an
everyday basis.

5. Increased personal satisfaction and
employee retention
Giving rewards to employees
encourages achievement and boosts employee
morale. Rather than being paid extra,
employees value incentives and rewards as
more enjoyable, fulfilling, and important in the
6. Greater number of knowledgeable
workforce leading to efficient business
Gamification also brought an increased
response rate through gamified online
conversations that let employees discuss their
ideas and feedback. This facilitates an
increase in employee community activity and
simultaneously encourages team bonding and
5. Other benefits

There are other numerous benefits that
gamification facilitates including reduction in
configuration related costs and improvement
in system performance. At its core,
gamifications fusion of human nature and
skillful design would be beneficial to most

Gamification is considered as a powerful
asset for organizations. Applying the lessons
that games can teach could revolutionize
any business pursuit. Whatever the nature
of the firm, the element of fun is an
effective tool to address serious business
pursuit and challenges.
Gamification does not have to be expensive
companies have made advancements on
gamifying their own workforce without
buying any expensive new technology. It is
however, best to implement long-term
solutions by selecting a platform that allows
adaptability and customization.
C. Financial Analysis
(ROI, Payback Period, Return on Assets,
Return on Equity, etc.)

Earlier on, we mentioned that with proper
implementation, ROI can be guaranteed.
Not everything can be measured in
monetary terms however thus different
implementations will yield different results.

Autodesk, Step2, Hewlett Packard, and
Playboy are some of the companies that
have implemented gamification to improve
their sales. Autodesk was able to achieve an
increase in trial usage by 54% resulting in a
29% increase in revenue
. Step2 gained a
300% increase in revenue from Facebook
referred visitors from their point system.

In the Consumer Behavior
segment SessionM,
Interscope Records and
Marketo realized an
increase in consumer
engagement by 250%, 650%
and 67% respectively.

Mott, A. (2013, June 4). Gaming the System: How Gamification
Offers a Better Learning Experience. Retrieved from

Many companies have also seen different
improvements from Enterprise
Gamification. SAP, although already a
company with an established reputation
has been able to increase usage in their
community network by 400% as well as
increasing customer feedback by 90%.
Another notable gain was from the
implementation of CaLLogix which reduced
the number of absenteeism from an
average of 15 to 2 per day resulting in an
annual savings of $380,000
. ROI can be
achieved in many different ways, in
monetary terms, from the more direct
increase in revenue to the less measurable
increase in consumer behavior. Although
gamification is still in its infancy, many
companies have been able to benefit from
its implementation.
II. Ethical Implications

According to the conceptual definition of
Gamification, it is a tool design that can
change behaviors, develop skills and enable

Levin, G. (2012, May 7). Contact Centerfold: CaLLogix.
Retrieved from Off Center:

This concept combined with latest
technologies may help contribute to several
areas such as innovation, employee
performance management, education,
personal development and customer or
social engagements, training, education,
sustainability and health. Such contribution
may have ethical or moral implications if
not properly implemented.

Gamifications main audiences are
customers, employees or even the general
public. But Gamifications general targets
are people with needs and desires who will
respond to certain stimuli. We consider the
target audiences as players in gamified

Desire, human responses or attraction to
such game may have a positive impact if
monitored and played properly or if not,
have a negative impact and may affect
moral. Taken from the 3 main purpose or
objective of Gamification:

To change behaviour
To develop skills
To enable innovation

The first item will basically target
audiences to change set of behaviors. If
gamification framework is not properly
designed due to influence of the game,
may impose negative moral behavior. On
the other hand, it can help the person
improve in terms of behavior, skills and
innovation or creativity.

To have a positive outcome from
Gamifications, the real challenge is to
design player-centric applications that
focus on the motivations and rewards that
truly engage players more fully and make it
effective. Such frameworks uses badges,
points, leader boards and other advanced
technologies which use integrated
applications with richer gaming modules.

Changing Behaviors - Turning the desired
behavior change into a game, people
become engaged and encouraged to adopt
new habits. Such developments of habits
are subject also to the appropriate moral
or ethical behavior.

Developing Skills - Gamification is
increasingly being used in both formal
education and in corporate training
programs to engage students in a more
immersive learning experience. This is
where competition and/or collaboration
between students are encouraged.
Gamers ethical standards are observed in
which proper behavior within a team
should be practiced.

Enabling Innovation - Innovation
games are typically structured quite
differently than games designed to
change behavior or develop skills.
Innovation games use emergent
game structures that provide the
goals, rules, tools and play space for
the players to explore, experiment,
collaborate and solve problems.
Innovation games generally use
game mechanics to create a more
engaging experience.

Gamification is recognized as a
persuasive technology that can
influence user behavior. Because of
this moral dimension, gamification
designers need to consider
incorporating ethics into their design

A normative ethical framework
consisting of utilitarian,
deontological and virtue-ethical
theories are proposed to serve as a
basis of moral gamification design.
Several ethical methodologies are
examined and considered to
formulate a moral gamification
design methodology that allows
designers to systematically uncover
and address potential ethical issues
in gamification design.

III. Nation-Building Implications

Gamification can have a vital role in building
our nation. This is as long as the game
design and technology used will have a
proper framework which has meaning and a
larger purpose. To succeed, gamified
applications must provide rewards that are
meaningful to the participants. Different
people will find different rewards and
incentives meaningful, but many will value
opportunities to help charities through
donations, lose weight, master a specific
skill or achieve a significant task.

Below are just some of the examples of
gamification which are built to serve a
bigger purpose and not just to succeed in
business but also to contribute to our

A. Gamification for Education

Gamification can help build kids'
competitive spirits. As they gain
confidence, they may become hungry for
tools that put them in control. At the end
of the day, those who know how to create
the rules of the game know how to win.
Such framework can help build the nations
future through young people which can
serve as leaders eventually.

B. Gamification for Environment

Nissan has produced a well know example
of gamification in their Leaf line of electric
vehicles. The 'Eco Mode' software keeps
track of a number of variables including
speed and power usage and then provides
constant feedback so drivers can improve
upon efficiency. This feedback is provided
by a display behind the steering wheel,
which shows you your achievements
through symbols which resemble needle
trees. The car even provides online profiles
so people can compete with other drivers,
but there's no real benefit in collecting
these trees other than saving battery

Reward in the form of virtual trees is not
useful but an idea would be that Nissan
plants the trees which the customers earn
and therefore help the environment and
biodiversity. The user could choose from
several locations and regions where he
wants to have his tree planted.

C. Gamification for Government

Citizens could participate on providing
feedback to government authorities and in
return points, badges or even sponsored
prices can be won. Such framework can
help citizens participate more and be active
on government affairs.

D. Gamification of News

Gamers can do server tasks such as read an
article, post a comment, and contribute to
a news task. When they run out of credits,
they could ask their network for more
credits. They can buy for more also.
Gamification is about bringing game
mechanics to the entire platform and
experience of news and information. That
would be one of many tasks that might
allow them to earn rewards, or build their
reputation or earn experience points.

Bowers, T. (2012, October 31). Gamification
data can drive ROI. Retrieved from
Call Centre. (2012, October 3). How HP/Intel
made $1 billion through gamification.
Retrieved from Call Centre:
Chamberlin, B. (2013, January 18). 19
Gamification Trend Articles for 2013.
Retrieved from Bill Chamberlin's

Chou, Y. (2013, October 28). A
Comprehensive List of 90+ Gamification
Cases with ROI Stats. Retrieved from Yu-Kai
Chou & Gamification:
Chou, Y. (n.d.). Top 10 Marketing
Gamification Cases You Wont Forget.
Retrieved from Yu-Kai Chou &
Duolingo. (n.d.). Retrieved from Wikipedia:
Gaertner, V. (2013, October 3).
Gamification, the way forward to engage
your IT staff. Retrieved from
Gamification. (n.d.). Retrieved from

Gamification Buyer's Guide. (n.d.).
Retrieved from Gamification Corp.:
Gamification Goes to Work. (n.d.).
Retrieved from Deloitte:
Gartner Predicts Over 70 Percent of Global
2000 Organisations Will Have at Least One
Gamified Application by 2014. (2011,
November 9). Retrieved from Gartner:
Gartner Says By 2015, More Than 50
Percent of Organizations That Manage
Innovation Processes Will Gamify Those
Processes. (2011, April 12). Retrieved from
Ha, A. (2012, October 15). With Its
Gamification Tools, SessionM Reports A 35
Percent Lift In Retention, 250 Percent Lift In
Engagement. Retrieved from Tech Crunch:

Herger, M. (2011, October 24). Gamification
Facts & Figures. Retrieved from Enterprise
Gamification Consultancy:
Levin, G. (2012, May 7). Contact Centerfold:
CaLLogix. Retrieved from Off Center:
Mandot, D., & Dutta, A. (2013).
Gamification in ERP Enabled Business
Transformations. Retrieved from
Mott, A. (2013, June 4). Gaming the System:
How Gamification Offers a Better Learning
Experience. Retrieved from Gamasutra:

Poor design hampers gamification in the
enterprise, says Gartner. (2012, November
27). Retrieved from Computer Weekly:
PowerReviews. (2012, May 31). Get Your
Game One: How Gamification Can Work
For E-Commerce. Retrieved from
TEDxSantaCruz: Catherine Aurelio -
Gamification. (n.d.). Retrieved from
Van Doorslaer, T. (2012, March 28). Pitfalls
of Gamification. Retrieved from SAP
Technology Network:
Wegert, T. (2012, November 29). Your 2013
Marketing Goal - Gamification. Retrieved
from CMO:

Werbach, K., & Hunter, D. (2012). For the
WIn. Philidelphia: Wharton.
Wong, M. (2012, June 21). Mayfield Funds
Chang Peers Into Gamification Crystal Ball.
Retrieved from WSJ Blogs:
Zichermann, G. (2011, June 15).
Gamification has issues, but they aren't the
ones everyone focuses on. Retrieved from
O'Reilly Radar:

Balay, Marchellie
Dannug, Angelli
Fernandez, Ysa
Hernandez, Imma
Tantuco, Nadia
Tomas, Louise Marvin
Zavalla, Paola

Group 3

I. Technology Description
a. Technical Environment
Gesture Recognition Technology is a
human-computer interaction that uses
human gestures as a command for
different devices. This evolving technology
could probably make some of the popular
devices like the keyboard, mouse, and
touch-screen be obsolete in the future.
This said technology translates human
gestures to different mathematical
algorithms to control different devices.
Gesture control enables users to interact
with computers without other mechanical
The most popular Gesture Recognition
Technology today is the hand wearable
devices. One of the first is the hand glove,
made with light and a cable system that
runs at the back of the hand. To identify the
command being use by the user, the loss of
light on the wire determines what
command should be done.

Another hand gesture technology still
requires computer vision and image
processing. Currently, this technology is
prevalent on Kinect which was developed
by Microsoft for the Xbox. However,
gesture recognition is not limited to hand
gestures. It also covers posture, gait,
proxemics and human behaviors.
Gesture control is used to process non-
verbal information. The technology can
translate sign language to a text. It is also
used in the medical field, especially in
stroke rehabilitation centers by attaching
sensors on the body of a patient which
sends reading to identify how robots can
assist in the patients rehabilitation. It can
also help people who are physically
challenged and cannot use other input
devices like the mouse and keyboards.
Instead of moving, typing or pointing,
computers can be controlled by the facial
expression and eye movement.

The two prominent uses of gesture control
are for video games and remote control
which is available in the market today.
In 2013, Nordic Semiconductor ASA, a
specialist on ultra-low power technology
had announced another application of
their product. It is technological
breakthrough because it claims it is the
first muscle activity electromyography-
based gesture control device. The said
device shall use Nordics NRPF 1822 2.4
GhzSystem on Chip (SOC), which provides
wireless and low energy connectivity. This
device was called MYO, which was
developed by Thalmic Labs, a U.S. start-up
b. Trends in the Technology
An emerging gesture control
device: MYO
Most advanced gesture-control
systems still detect movements with
cameras, which isnt exactly ideal.

The effectiveness of these systems
hinges on extremely sophisticated
gesture-recognition algorithms,
which often have detection
problems (as the camera has to be
able to see you), at large distances
or varying light conditions. Thalmic
Labs approaches the problem in a
different way. With the
development of MYO a gesture
and motion control armband, it lets
users use the movements of their
hands to effortlessly control your
phone, computer and so much
Rather than detecting motions and
gestures with cameras, MYO
analyzes muscle activity in the
forearm. Using a process called
electromyography (EMG), the device
can gather extremely detailed
information about which muscles in
the arm are tensed, as well as the
degree to which they are tensed.

Using this information, MYO can reliably
discern what position the hand is in, giving
it a huge advantage over camera-based
gesture recognition, which often struggles
with detecting the position of individual
By using EMG in tandem with a nine-axis
inertial measurement unit (also known as
an IMU, comprised of a three-axis
accelerometer, three-axis gyroscope, and a
three-axis magnetometer), MYO is able to
understand a wide array of different hand
gestures, along with the speed, direction,
and angle of the users arm.
And since its designed to be worn on the
arm and carried around, it allows interface
with a wider range of objects not just
ones that have gesture-recognizing cameras
built into them.
Stephen Lake founded Thalmic Labs, the
maker of MYO, in 2012 along with
University of Waterloo (Canada) classmates

Matthew Bailey and Aaron Grant. The
company's MYO armband is seeking to
change the way wearable technology
affects daily life by allowing users to control
other digital technologies using gestures.
The company has already pre-sold 25,000
MYO armbands despite the fact that the
product is not scheduled to be released
until early 2014.

"The real motivation behind starting
Thalmic Labs was applying what we learned
in the mechatronics engineering program to
something that could change the face of
computing," said Lake, who was named one
of Canada's Top 20 Under 20 and one of
The Next 36 entrepreneurial leaders of
Canada in 2011.
"All three of us love tackling challenging
problems with big impacts, and this was a
chance to do it."

Applications of MYO
MYO has a variety of applications which
makes it accessible to a mass audience. It
can be used to interface with video games
and for other entertainment purposes. It
also has an educational application,
enabling its user to sweep through
PowerPoint presentations (without holding
a remote or standing behind a computer)
and circle data. In addition, MYO can be
used by runners and snowboarders for
example to measure speed. MYO can also
interact with devices to serve a mouse or
remote type function.

c. SWOT Analysis
i. Strengths
The MYO armband should be no
different from wearing a watch (albeit
higher on your arm).

Its not in front of your eyes, potentially
getting in your way like Googles Project
Glass technology. It frees the user up to
move around, the users are not
restricted by the need to be near a
stationary computing device; therefore,
opening up a lot of possibilities for
gesture control that werent there
Large audience/ multi-use appeal
MYO has a variety of applications which
makes it accessible to a mass audience.
It can be used to interface with video
games and for other entertainment
purposes. It also has an educational
application, enabling its user to sweep
through PowerPoint presentations
(without holding a remote or standing
behind a computer) and circle data. In
addition, MYO can be used by runners
and snowboarders for example to
measure speed. MYO can also interact
with devices to serve a mouse or
remote type function.

Once can pre-order MYO for only $149 and
can be shipped anywhere in the world for
$10 (before taxes and duties).
Open Source Development
Thalmic Labs, the company who created
MYO, have been smart enough to recognize
that they will not be able to think of all the
ways MYO could be used. Therefore, a MYO
app will be coming soon for Windows, Mac,
iOS and Andriod. With this app, anyone can
utilize MYOs hardware to experiment and
build the future of wearable technology.
Detection thru muscle analysis more
ideal than camera-based gesture detection
Most advanced gesture-control systems still
detect movements with cameras, which
isnt exactly ideal.

The effectiveness of these systems hinges
on extremely sophisticated gesture-
recognition algorithms, which often have
detection problems at large distances (as
the camera has to be able to see you) or
varying light conditions.
Rather than detecting motions and gestures
with cameras, MYO analyzes muscle activity
in the forearm. Using a process called
electromyography (EMG), the device can
gather extremely detailed information
about which muscles in the arm are tensed,
as well as the degree to which they are
Using this information, MYO can reliably
discern what position the hand is in, giving
it a huge advantage over camera-based
gesture recognition, which often struggles
with detecting the position of individual

Easy connectivity and energy-saver
MYO in collaboration with Nordic
Semiconductor was can connect easily to
other devices using the Bluetooth 4.0 and
uses low energy for connectivity.
MYOs design and functionality is easy
to replicate
At the same time that Thalmic Labs is
working on MYO, Microsoft has patented
(last September 2013) a similar gesture-
control wearable device to be used
particularly for personal computers. The
Windows maker has filed a patent for an
armband that allows users to control
electronic devices by simply wearing an
armband on the forearm. Unlike current
gesture controllers like the Leap Motion or
Kinect, Microsofts armband would let users
perform tasks by monitoring the muscles in
the arm rather than using a camera to
detect movement.

Product is still untested in the market
MYO may be sensitive to interference from
environmental noise, and can require a
person to make obtrusive motions or
Developers can never know for sure unless
the product is tested in the real world.
Moreover, some initial reviews suggest that
consumers are concerned that MYO could
cause fatigue in the arms especially if it is
used for a longer period.
ii. Opportunities

Functional technology needs in the medical
While the product is most notably an
advancement for the gaming and
entertainment industry, there is a huge
potential for MYO to be used in the medical
industry as well. For instance, it can
eventually have sign language to speech
capabilities in future versions.
There has also been a lot of interest in MYO
from hospitals and surgeons.

Once a surgeon is scrubbed in to a clean
environment like an operating room, they
cant interact with technology in the usual
ways anymore. If theres a touchscreen
present, they would have to tell a nurse
which button to press. Gesture control
technology can remove this hindrance for
Moreover, MYO can unlock new
opportunities for those living with
disabilities. There are, according to Lake,
clear implications for stroke victims and
other patients in neuromuscular
rehabilitation programs.

Possibilities in recreational, scientific and
military fields

MYO can eventually improve the quality of
life for a variety of people. Aside from the
gaming industry, it can also further improve
gadgets in film-making, scientific research,
and in the military.

High industry growth forecast
Theres a lot of opportunity for the
industry. The total touch-less sensing and
gesture recognition market is expected to
reach $15.02 billion by 2018 at a double
digit CAGR from 2013 until 2018. The
market value in 2012 was approximately
$2 billion. Thus, there will be an increase in
demand for the said products.
iii. Threats
Rapid technological advancement
MYO functionality may not be sustainable
in the long run as it may be overtaken by
more advanced wearable technologies in
the future, unless it continuously innovates
faster than competitors. Per Moores law,
new technological devices were developed
every 18-24 months.

Similar technologies are in development

There are other types of gesture control
technology that is still being developed like
facial gesture control.

Unlike MYO which uses hands gesture
control, the said technology will follow the
facial expression of people or even the
eyeball of the person using it. Some
competitors like Microsoft are combining
gesture control with voice to further
improve their gesture sensitive products.

Unpopularity of hardware technology

Currently, the trend in IT development is
towards social and mobile software. A lot of
investors are skeptical when it comes to
new hardware such as wearable gesture

Having recognizable or well-known
investors come on board early on with
Thalmic Labs will eventually help the
developers to gain more product

2. Business/Industry/Education
Overall, the MYO armband allows
for simplified processes and efficiency in
doing office-related tasks.
Personalized coding system
One of the features of MYO is that it is
possible for the users to code it
themselves, through its open source
development kit that is being offered
together with the armband.

This allows businesses to use MYO based
on their company or offices specific
needs. For example, an architecture firm
can present 3D models using the MYO, if
they are able to code it to do so.
Allowing users to code their own
armband provides limitless possibilities
for business uses.

Efficient and innovative Sales &
Marketing presentations

In sales and marketing, being able to
present a product using MYO will not just
entice consumers, but it will also show
how modern and innovative the company
is for introducing different ways to market
a product. It is important for companies
nowadays to find different and more
exciting ways of doing presentations. MYO
will give them this advantage, especially
since this kind of technology is just
starting. It will provide businesses an edge
that will make a big impact during
marketing and sales presentations.

Brand/Product Integration
With initial response or buzz on MYO
coming mostly from the gaming and
entertainment industry.

There is a huge potential for the product to
branch out and develop further product
enhancements together with other brands.
It is easy for MYO to tie-up with Play
Station, for example, to enhance user-
engagement on their video games.

It can also attract big companies such as
Google, who has been purchasing
companies left and right, and is now
especially focusing on robotic/ military/
stealth companies. MYO is one of the few
technologies today that is focused on
hardware development, when the current
trend is on developing mobile software
applications. In time, it will not just be the
gaming industry that will look to MYO for
product integration, but it also has the
potential to improve manufacturing,
medical, and industrial businesses.
Improvements in Logistics and
Import/export industries

In a more in-depth industrial perspective,
MYO can contribute a lot especially in
industries such as Logistical or
Import/Export businesses. Of course, the
revamping and transitioning of any system
wouldnt be easy at the start especially in
the accumulation of sunk costs of legacy
assets; but once these modernizations are
done, there will be endless possibilities for
the business. Not only will it makes things
easier for these industries but these
businesses will be one of the more
innovative companies in the world.

Innovative filming techniques in the Media

In the media industry, looking for new
innovations in camera or video technology
is one of the top priorities of industry
leaders. Finding new ways to film will give a
director an edge over his competitors.

MYO provides a new way of filming
overhead shots without the use of large,
complex cameras with cranes. Being able to
control a heli-drone with just a GoPro
attached to it, for example, with just the
movements of the hand will become a
simple yet efficient way of filming. MYO
will also be useful for news networks who
want to capture ongoing rallies or events
without using drones or satellite cameras.
Use for class discussion and demonstration

Similar to demonstrating a product, MYO
can be used for class discussions for
business, economics, chemistry, biology,
and other science subjects. For instance, a
professor can demonstrate a complicated
surgery for med students, simply at the
comforts of their classroom.

The professor will not only save a lot of
time but would also catch the students
attention without the limitations of the old

Allows students to better understand a
For the students side, having MYO may be
able to make their study habits better
because of its innovation, especially now
that this generation is very open to new
technologies. The way students study will
change and it might just keep their
attention span longer because not only will
it be easier for them to understand
something, they will also be fascinated at
what MYO can do.
3. Cost-Benefit Analysis
a. Direct and Indirect/Strategic
MYO is an armband that is able to provide
accurate gesture-based control of
computing devices, including desktop
computers, smartphones and tablets.

Using Bluetooth to wirelessly connect to
these devices, its developers, Thalmic Labs,
have created a groundbreaking technology
that allows MYO to detect electrical activity
in the users muscles instantly, resulting to
a seamless way to interact with various

Initial product benefits include control of
desktop or smartphone applications, such
as being able to remotely control and edit a
slide presentation or flipping through a
music library, such as iTunes.
However, aside from these initial benefits,
Thalmic Labs is also looking into various
brand integration that will provide more
applications for MYO.
For instance, it can eventually help enhance
user-engagement for video games.

Tie-ups with different brands such as Apple,
Microsoft, Nitendo, Play Station, or
Samsung, provide MYO with endless
application opportunities.
Moreover, aside from just gaming or
entertainment uses, MYO can eventually
move towards industrial and functional
uses, such as controlling cameras and
drones, without the help of remote
controls. In the future, MYO can be used in
industries where a lot of heavy machineries
are needed. It could eventually replace such
machines, and people can simply move
objects from one place to another using
gesture control technology.

Total Cost of Ownership (TCO) Capital
Investment and Hidden Costs (Patents)
MYO has now received 14.5 Million Dollars
in capital funding from various investors,
which will be used to further product

The new technology will be released with a
standard retail price of $149 per unit with a
preorder quantity of 25,000 units even
before launch.
Based on U.S. patent costs for acquiring
international patents, it can be estimated
that Thalmic Labs could spend at least
$100,000 on patent costs.

Financial Analysis

For purposes of this paper, the above
mentioned figures taken from
will be used as basis of the financial
analysis. The total funding of 14.5 Million
Dollars will be considered as sole capital
investment excluding production costs of
the MYO.
In order to obtain the variable costs of the
MYO, the insights of an IT expert who was
given privilege as a beta tester of the
product were obtained.

He gave an estimate that the MYO can
generate a gross profit of thirty percent at
its current standard retail price of $149
which means 70% of the total selling price
can be attributed to the cost of producing a
unit of the MYO. He explained that this
estimate includes the parts used that are
directly traceable to the product.
Return on Investment (ROI)
The formula for return on investment is as
ROI = Net Profit / Total Investment released a preorder demand
quantity of 25,000 units even before the
launch of the MYO.
Forum participants in are
saying that the initial demand is expected to
increase by 200% upon the launch of the
product in the market and will double by
the time it gets distributed to retail outlets.

For purposes of financial analysis, it is
conservative to provide an estimate of
100,000 units sold during the first year of
mass production. The following
computations are based on this estimate.
Net Profit:
Selling Price: USD 149.00
Estimated Quantity: 100,000 units
Gross Profit Percentage: 30%
Gross Profit Amount: (149 * 100,000) *
30% = $4,490,000

Since no data can be obtained as to indirect
costs of production, we will use the
estimated annual gross profit amount as
the numerator for the formula.
Total Investment: $14.5 Million

The ROI can now be computed as follows:
ROI % = $4.49 Million / $14.50
Million = 30.97%
The above computed ROI of 30.97% can be
considered realistic. This is comparable to
average annual ROI of Apple Computers,
Inc. as stated in This
product is expected to render all gaming
remotes obsolete such as control panels of
PlayStations, television remote controls,
and other gadgets used for controlling
media devices.
Payback Period
The formula for payback period is as
Payback Period = Amount of Investment
/ Annual Net Cash Inflows
Amount of Investment = $14.5 Million

Annual Net Cash Inflows:
The amount of annual net cash inflows may
be taken from the computed gross profit
amount above since no information as to
selling and administrative costs is available.

Therefore, Payback Period can be
computed as follows:
Payback Period = $14.5 Million / $
4.49 Million = 3.22 years

4. Ethical Implications
A number of ethical issues are associated
with the design and use of wearable gesture
control systems, some encouraging and
some daunting.

The main example of the former being:
The potential to improve ones quality of
Wearable motion control technology can
unlock new possibilities for those living with
disabilities. The technology and science
behind it has clear implications for stroke
victims and various other patients in
neuromuscular rehabilitation programs.
Theres also the possibility that products
like MYO might have sign language to
speech capability in the very near feature.

Though this technology definitely has a
huge potential for greatly improving ones
quality of life, it is not without its

The potential to control
These wearable computing technologies
and applications have the potential to
become controlling applications
because they are used to make
decisions, generate alerts, log user
movements, and a whole other range of
tasks. Since the technology works with
converting muscular impulses into
workable algorithms, the inverse of that
technology is probable. The idea of
machine controlling man, though not
dramatically and as swiftly as fictions
portrays it, is a reasonable possibility.

The potential to invade privacy
This kind of technology, in general,
also raises numerous privacy
implications and also has the potential
to transform the way populations are
policedwith social media at the

Equipped with an almost constant
Internet access and a visceral
immediacy in their capacity to use social
media, wearable computers could
generate unexpected social and privacy

Nation-Building Implications

The main driving force of a company to
enter into certain types of business and
invest in a product is its profitability. A
company would enter that particular
business if it sees huge potential in the
future. However, in the long run, the
company also goes beyond the profit-
making; it also helps build the nation. This
may not be done directly, but because of
these new products that are being
introduced to the market, it can help
improve the quality of life of the people.

Based on the law of supply and demand,
if a firm would produce products, it would
need certain inputs like labor and capital.
With these kinds of products, a significant
portion of the input would be more on the
capital intensive because of the
technological advancements. However, it is
still inevitable that there would still be labor
needed, and although it may not be such a
sizable amount, this would still create job
opportunities for the people. Developing
technologies such as MYO would open up a
lot of possible jobs for IT and engineering
Nowadays, we are always looking for
how to use our time to be more efficient.
Because there are a lot of things to do and
we only have a fixed amount of time per
day, doing things efficiently is the key. And
since time is a scarce resource, time wasted
on inefficiencies add up the opportunity
costs. Thus, indirectly, time saved translates
to additional income since people could do
other things with the time saved using
gesture control technology.

Wearable gesture control technology,
such as MYO helps us do things more
Wearable gesture control also saves
physical energy, since a person would not
need to walk around to do things but
instead, with just a hand movement or
gesture, that person could already control
and do what he needs to do. Since physical
energy could be saved especially if the
person is working in manual labor or a
similar working environment, energy saved
could be spent on other things, such as
spending time with the family. Since that
person is not that tired and exhausted from
work, he could have some quality time with
his family especially with the children. With
the right amount of time spent with the
children, these children would be more
responsible compared to the children who
were not being taken care of.

In summary, the effects of MYO wearable
gesture control technology in nation-
building are:
Job creation for IT and engineering
professionals can lead to a better
quality of living
Efficiency in the workplace and in
manual labor occupation can help
boost the economy
Physical energy saved allows
employees to spend less time at
work and more time with their

gesture-control-weve- ever-
myo-thalmic- labs.html
wearable-gesture- control-could-
sensing-gesturing- market-

control-arrived- consumers-

Crisostomo, Emma
Gonzales, Marco
Inciong, Chona
Rodriguez, Francisco Jr.
Sawit, Patricia
Uy, Rykiel
Valderrama, Louise Marie
Group 4

Human augmentation or also known
as human enhancement is an emerging field
of technology within medicine and
. This technology aims to
either temporarily or permanently
overcome current human limitations
through natural or artificial means. It
focuses on creating physical and cognitive
improvements to the human body
Human enhancement technologies are not
only primarily used to treat disabilities and
illnesses. With the use of the term
enhancement, we can simply deduce that
human characteristics and capabilities are
further improved by these technologies. It
includes restoring an impaired function of
the body or raising a human function to go
beyond what its normal capability. Human
enhancement can also be applied to several
different fields of technology such as to
neuro, cyber, gene and nano technologies.

Brey, P. (2008). Human Enhancement and
Personal Identity. New Waves in Philosophy
Series. 169-185. Retrieved From
an- Enhancement.pdf
Human Augmentation (n.d.). In Gartner IT
Glossary. Retrieved from

The following are examples of how human
augmentation is used. It can be applied to
the restoration and enhancement of
vision/sight, memory, hearing, physical
mobility, brain-machine interfaces, genetics
and even physical cosmetic attributes. It
can include a wide range of technologies
spanning from artificial human body parts,
machines and gadgets attached to the body
or used to move body parts and even
medicines and drugs. It can be used
naturally for tissue and genetic engineering,
gene therapy and transplants. Artificially it
can be used for implants, brain-computer
interface, nerve to prostheses applications,
cognitive enhancement drugs,
performance-enhancing drugs, silicon-tissue
interface, gene selections and exoskeletons.

As human augmentation is a technology
that is constantly being developed the
following is a list of emerging trends for this
type of technology.

1. Genetic Engineering which makes
use of human DNA as a drug to treat
diseases and illnesses.

2. Brain implants where technological
devices such as computer chips are
implanted to the brain which is now
being explored for biomedical
prostheses and sensory substitution.

3. Brain-Computer Interface or Mind-
Machine Interface are developed to
enhance, repair or assist human
cognitive and sensory-motor

4. Nanomedicine specifically molecular
nanotechnology where genetic
defects can be altered and can
increase the lifespan of human

5. Powered Exoskeleton which uses
technology to increase the strength,
endurance and agility of the wearer
of the suit.

For the purpose of this paper, Exoskeletons
and Brain-Computer interface will be
discussed further as the emerging
technologies we can all look out for in
human augmentation.

Powered exoskeletons main functions are
to enhance the strength and endurance of
the wearer through an external suit which is
powered by a system of motors and
hydraulics. Its two main purposes are to
enhance military abilities wherein its
wearers can be expected to carry heavier
loads, improved mobility and even
withstand environments that have yet to be

It also can be used for medical purposes;
exoskeletons may be used for rehabilitation
by people with spinal injuries or muscles
diseases these will allow their bodies to
do what their own nerves and muscles can
no longer do.
External armors have always been used
since the ancient times, but the idea of
mechanical armors only came in the late
1800s, the concept was initially introduced
in a science fiction book called The Steam
Man of the Prairies by Edward Sylvester
Ellis. By 1890, a Russian name Nicholas
Yagin was able to develop a jumping and
running assisted apparatus. Soon after
there were many advanced versions of the
powered exoskeletons developed up until

We will be further discussing brain-
computer interface through prosthesis.
Prosthesis is a device in which purpose is to
replace a missing part of the body or to
enhance functionality of a specific part of
the body. Commonly when a prosthetic is
used for an amputated part of the body the
person does not have full control over the



Exoskeletons enhance the future of the
human body. What we see in the movies
from our childhood about soldiers with hi-
tech exoskeletons is now available and it is
changing the way were able to live and
work. It increases our capacity to carry
heavier loads, improves mobility, reduces
stress to our muscles and bones, and also
be able to withstand environments that we
havent yet explored.
For Military or construction companies,
exoskeletons like the HULC or Human
Universal Load Carrier is a battery-powered,
lower extremity exoskeleton that provides
power assistance to the persons hip and
knee joint. It enables a person to carry a
load of up to 200 lbs at a top speed of 16
Km/hr for extended periods of time. Loads
are attached and distributed between the
front and back of the exoskeleton system
and are carried by the exoskeleton,
bypassing the human operator. The
effective forces felt by the operator are
dramatically diminished reducing the risk of
muscular-skeletal injuries.

The HULC has an onboard micro-computer
that ensures the individuals movements
are in sync with the exoskeleton. The parts
can easily be swapped out in the field and it
has a unique power-saving design that
allows users to operate on battery power
for extended missions. When the battery
power is low or without power, the HULC
system continues to support maximum
loads and does not restrict mobility.
For exploration of hazardous environments
like nuclear power plants, volcanoes, mining
sites, etc., exoskeleton like HAL or Hybrid
Assistive Limb can also be used so that
radiation exposure can be reduced by half
and cool the body temperature when the
person could not handle intense heat as
well as allowing the user to carry heavy
loads. The legs of this suit function as
toolkits and team responders back at home
base get vital signs in a constant feed from
the exoskeleton.

HAL can also be applied in the medical field;
exoskeletons can help people with
disabilities to be able to perform basic
human movements like walking, running
and etc. Also, it can assist injured people
with rehabilitation. When a person moves
the body, he or she first thinks about the
motions in his or her brain. By thinking I
want to walk. the brain transmits
necessary signals to muscles necessary for
the motions through nerves. In the healthy
body, each muscle is able to receive signals
destined from the brain to it and move as
strongly and fast as intended and then
signals sent to muscles by the brain leak on
the skin surface as very faint signals, so
called bio-electric signals [BES]. HAL is
able to read BES by only attaching the
originally developed detectors on the
surface on the wearers skin. By
consolidating various information, HAL
recognizes what sorts of motions the
wearer intends. HAL can also help assist the
wearers motions as he or she intends and
exerts bigger power than he or she
ordinarily exerts. The mechanism to move
the human body does not end up with only
moving muscles. The brain confirms how
the body moved on what sort of signals.

Other ground breaking discoveries like
motorized artificial limb that uses neuro-
signals (same as bio-electric signals) helps
amputees to walk, climb stairs (for
prosthetic knee and ankle) or to hold and
grip (for prosthetic arms) with seamless
transition while doing normal activities.
When a person wants to move the
amputated part, the brain signal travels
down the persons spinal cord and through
peripheral nerves and is picked up by
electrodes in the bionic prosthetics.

In the near future, it is now possible to say
that the exoskeleton suit like Iron Man can
become a reality. The technology
mentioned earlier enables the exoskeleton
to interpret a persons brain signals
transmitted to their muscles and the bio-
electric signals, the faint brain signals
leaked on the surface of our skin is being
read by the exoskeleton and therefore
recognize the motion the wearer intends. It
will greatly help the human race especially
in the space exploration missions like mars.

The tables below shows the average costs
for US army veterans in the major conflicts
of recent years.
Based on our findings of modest cost
increases when projecting prosthetic device
use for the next 5, 10, and 20 years and
lifetime for the number of veterans and
service members from Vietnam and
OIF/OEF with traumatic limb loss, future
prosthetic healthcare costs may be
manageable for the VA [Veterans
Association] and DOD [Department of
Defense] facilities, providing available
resources do not change dramatically. The
lifetime cost projections do not account for
significant changes in health policies or
Our study found higher costs associated
with the OIF/OEF service members,
especially those with multiple limb loss,
given the higher number of devices used
and newer advanced technologies. The VA
and other healthcare provider systems
should be prepared for the increase in more
advanced technologies and use of multiple
prosthetic devices.

This preparation for these advanced devices
may include training for prosthetics and
resources to support their use and
maintenance. Future technologies such as
the Defense Advanced Research Projects
Agency (DARPA) arm [3536] may
dramatically increase future costs.
Healthcare providers and policy makers will
benefit from an understanding of current
cost projections and a uniform approach for
coverage of prosthetic and assistive devices
for all veterans and service members with
major traumatic limb loss.

As can be seen in the tables above, the
costs for prosthetics are extremely
expensive and are out of reach for average
American families without the aid of
healthcare and aid from the government
however still remain to be the only way to
have the quality of life that many people
take for granted.

Many patients choose to use prosthetic
devices because they want to appear more
normal or average. Although many artificial
body parts don't look exactly like the real
thing, many people consider them more
attractive than a missing arm or leg.


Having a prosthetic to fill out clothes and
allow for more natural movements can
make a big difference for those who are
feeling self-conscious about their
appearance. The result for these people can
be greater self-esteem and confidence
when doing everyday activities.

Prosthetic devices also offer a better quality
of life for those who have had amputations.
There are replacement hands that can grasp
items and allow patients to perform
everyday tasks with greater ease. Artificial
legs can help patients walk again without
the use of a wheelchair. All of these can
help patients live fuller and more
productive lives than they might otherwise

The major downsides to using prosthetic
devices are the risk of complications and
the price. Many insurance providers will
cover the fitting and purchase of such
devices, but those who don't have
insurance coverage may have a harder time.
Some doctors and manufacturers might
consider payment plans, but this is not
always the case.

There are also potential health issues
related to prosthetics. Many can cause skin
irritation at the site where they are fitted,
and most patients undergo some level of
physical therapy as they get used to using
the new device.

This can be time consuming and strenuous
for some, since it is necessary to retrain and
re-learn how to use certain muscle groups
in many cases.

With prosthetic devices being a relatively
new technology, we can assume that over
the years, advances will be made that will
make the devices cheaper as well as more
capable of performing the tasks that the
amputated limbs they replace are capable
of. Fairly recently, a 17 year old high school
student in Colorado used 3D printing and
online resources to create a prosthetic arm
that is controlled via eeg headset which
does away with the spinal implants that are
normally used.

Easton LaChappelle was able to create a
prosthetic arm out of his own room that
costs less than $500. From the averages
stated in the Journal of Rehabilitation
Research and Development, $500 is
exponentially cheaper than the
counterparts being sold in todays markets.

These 3D printed prosthetics have far
reaching implications in terms of changing
the lives of people in the US and the world.
People in third world countries like
Cambodia, Africa and other war stricken
countries where incidences of amputations
due to land miines are high have a lot to
benefit from this emerging technology as it
has the potential to transform indigent and
unproductive people into more productive
members of their society.

Along with the psychological factor of being
a complete human being and the ability
to perform tasks on their own, the overall
well-being of the individual in enhanced.

Alongside the technology of prosthetics,
exoskeletons are also becoming an area of
interest for scientists today. So far,
exoskeletons have aided a number of
people in physical therapy for spinal
injuries. With these two technologies being
developed, it is clear that in the future,
humans will be capable of so much more
than what our physical capabilities allow us
to do as of the moment. Through
technology, missing limbs can be replaced
with those that are stronger than that
which was replaced. And with the future of
exoskeleton technology, iron man may not
actually be such a fictional character after

Given the understanding of human
enhancement as mentioned previously, it is
in an evolving world we are now, where
Internet Revolution and Human Engineering
Revolution is unfolding; therefore, we
cannot avoid certain issues that rose with
regards to this matter:

1. Freedom

Issues rose against regular
enhancements that would infringe the
ability to live the lives we want. Or,
preventing us from enhancing our bodies to
improve our lives especially if it will not
cause harm to anybody. This is a regular
issue being debated in many institutions, as
well as in the government, due to the
regulations on hiring practices to school
clothing or home improvements, among

Another good example of free will or
freedom is when we are under the
enhancement of our body, for example
when a certain chip should be placed in our
brain or for our sight or for us to be able to
speak or hear, and the effect could hold
different values than we thought, our
surroundings may also unduly influence our
decision which may also interfere with our
freedom to act on what we truly want.

2. Health and Safety

Since we do not want any harm to our
environment and surroundings, we need to
distinguish the values significant in making
certain regulations and policies.

This is for the reason that we are all
after the health and safety of every human
being as we are not sure yet of the
implications on whether the procedure
would pose a risk once the patient has been
operated. Once this is done, we all know
that it is most likely to create side-effects to
our bodies that will show extreme changes.
However, an individuals consent is always
important, that even if we do not have
assurance of the result as to whether using
these technologies will protect us, it is still
their decision to undergo the operation and
the risk it has.

On the other hand, for the enhanced
person to be at risk, even if the procedure
does not affect the person, they could still
risk other people indirectly through other
means. So, is it fair that we think of the risks
a procedure may cause an individual when
any other cause could risk anyone even
with other means such as drugs like
steroids, marijuana, etc?

There are advantages and
disadvantages being looked at in terms of
human enhancement. As they are improved
and start to be adopted by most people,
some of the danger may also be seen.

Studies show that some danger in the
case of life extension may eventually result
to burden on several families,
overpopulation for countries and
retirement programs for businesses and the

But, life extension on the other hand,
appears to be a benefit to many individuals.

3. Fairness and Equity

Fairness is another issue in human
enhancement as there is a belief that only
the rich people could afford this technology
and innovation, which builds a gap between
economic classes.
In this form, we do not want people to
stop improving their lives, even through
poverty and income decline.
Therefore, in other ways, human
enhancement can still be an advantage to
others through the competition on
resources, such as jobs being vacant by an
enhanced person, could be filed up by an
unenhanced person.

However, we cannot take away that
issue of inequality will always be raised as
questions on how an individual could afford
human enhancement technology to survive
and be competitive enough in the
environment. So, what would no count as
fair in terms of distribution of the
technology? Even as we continue to
develop and think of the fairness and
inequality to be created in the market, in
the long run, it would still declared unfair
unless the result that the wealthy can
afford the technology and that they gain
advantage over the unenhanced is
accepted, then everything will be declared
fair and issue will be over.

4. Societal disruption

Going back to what was previously
mentioned regarding life extension
technology which may cause life to be
extended up to 20 years longer, this may
lead to adjustments of certain programs in
the businesses like extension of the
retirement from 65-85. This is a
disadvantage for the young people looking
for jobs. Further, if birth rates continue to
rise, this would mean pressure on resources
that would cause problems in the long run.

Another problem that would cause
our society in the human enhancement
technology that also creates inequality for
most of the population would be for the
advantages it would give to those enhanced
people to be accepted to companies faster
especially for instance, those who have
neural implants where they can gather
faster information processing, therefore
winning the position compared to the
unenhanced applicant.

This will cause social and economic
disruption because the unfortunate ones
who are the majority may start to feel the
inequality, may lead to problems for the
country and the world.

In order to avoid the disruptions in the
economy and society, we have to study the
benefits the enhanced person will give to
the environment and his surroundings, as
well as study the productivity and the
advantages it will create to the majority of
individuals. Studies should also be made as
to why an individual would want to
enhance himself, if this will help the
environment and the society, or if there will
be risks once enhancement is done.

5. Human dignity

A study shows that human dignity is the
cause of human enhancement for the
reason that we want to prove ourselves, we
want to gain and achieve more, due to the
discontentment of a human being. But, we
will still be dissatisfied with ourselves
without finding real happiness, this doesnt
stop us from deciding on undergoing
human enhancement technologies.

If technology makes life easier in
competing with others, we may lose the
chance to grow and improve our moral
character. But, if we compare our lives
from way back, technology helped lessen
our stress.

Again, lets go back to life extension
technology. Every human has a purpose in
living the life he has. We become sad and
mad and commit mistakes to learn from
them. If we use technology to omit sadness,
how do we really say that we lived? And if
we have already achieved our goals and live
too long, wouldnt that bore us so much?

All of us will leave this life we have now
whether we extend our life or not. God is
always the truth and He will always control
our lives whether He wants it extended or

If in this lifetime, we undergo the life
extension enhancement, then maybe thats
our destiny, and so, we owe it to our
doctors and physicians who made that for

Nation-Building Implications
It is once said that technology works hand-
in-hand with building a better nation; and
with the benefits of human augmentation
discussed above, it can be deduced that
maximizing the human strength, which
includes improving and enhancing human
capabilities, is the main resource that is
needed in building and improving the
Many aim to provide a stable peace and
secure community, which can meet the
needs of the people within it. This is where
nation-building comes in to play. Building
the basic needs of people is important in
order to avoid being driven by poverty,
inequality, unemployment, or the desire to
compete with resources most of which
are mainly caused by limitations of human
beings, specifically those who are physically

With the possibilities of human
augmentation, particularly exoskeletons
and brain-computer interface (BCI), it
provides the society an avenue and
opportunity that will impact the healthcare
system, individual identity, and acceptance
to change:
Healthcare System Reformation
With the various innovations that
human augmentation can provide, the
healthcare system can also be promised
with continuous improvements that can
be offered to the people in need. It
helps improve the health status and
quality of life of the people; it also helps
build a healthcare system that is
flexible, responsive and cost-effective;
and among many else, it contributes to
building the foundation of a modern
nation through its introduction of
technology in health care system. This
enables the health sector to implement
the vision of economic growth that will
greatly contribute to a sustainable
healthcare system; and eventually bring
improvements to the human condition
that move beyond a state of mere

Individual Identity
Self-identity is defined as the way an
individual recognizes oneself.
How people feel about themselves,
their intentions, attitudes and
behaviours can affect their moral and
social importance.
A poor idea of self-concept can affect
ones self-esteem and could lead to self-
depreciation, resulting to unrealistic
expectations in life and poor treatment
from others.
Hence, it is important to note that the
manner in which individuals are
identified in a society is a major
importance to ones growth.
As such, human augmentation and
enhancements is likely to contribute a
major change in a disabled persons life.
It makes for a better people, that are
composed of individuals with more self-
esteem and are held in a higher esteem
by others, and all this individual benefits
will add up to the benefit for the society
as a whole.

Change Catalyst
Although there are ethical concerns
about human augmentation, it can be
taken in another perspective that it is
not a moral question of its own, but
simply an extension of traditional ethics.
Due to the fast-pacing developments
and innovations that technology has
been introducing, it is no surprise that
resistance to change may be occurred;
especially if it has something to do with
a persons physical body itself.

However, instead of entertaining the
thought that a person may not
recognize oneself, why not take the
other option and think that a person
may be more than he or she could ever

Embracing the possible potentials that
are offered to the nation, human
augmentation may serve as facilitators
and walk the people through the
possible changes that technological
advances may bring.

Since technology development is a
continuous improvement process,
healthcare, society and people may be
shaped into something better.
With the current generation, it is apparent
how technology plays a significant role, not
only in our individual lives, but also in our
society and nation. Being able to witness
how technologies have grown, it can be said
that it will continue to surprise the world
with wonders beyond imagination.

Brey, P. (2008). Human Enhancement and
Personal Identity. New Waves in Philosophy
Series. 169-185. Retrieved
ey_2008_Human- Enhancement.pdf
Human Augmentation (n.d.). In Gartner IT
Glossary. Retrieved from
Steward, John. (November 2013). Human
Enhancement. Darthmouth Undergraduate Journal
Science. Retrieved from

Human Universal Load Carrier from
Lockheed Martin HULC from

Hybrid Assistive Limb from
First mind-controlled bionic leg a 'groundbreaking'
advance from

Carolyn Stephenson. (2008). Nation Building.
Retrieved from
Glenn G. Brimacombe. (2005). Healthcare
Quarterly. Retrieved from

Atienza, Erika
Garcia, Monica
Junio, Emmanuel
Mancenido, Marianne
Serranilla, Gian Paula
Uyaco, Mark Dennis
Group 5

1. Technology Description
a. Technical Environment
A biochip is a collection of miniaturized test
sites or microarrays arranged on a solid
substrate that permits many tests to be
performed at the same time in order to achieve
higher throughput and speed. Typically, a
biochip's surface area is no larger than a
fingernail. Like a computer chip that can
perform millions of mathematical operations in
one second, a biochip can perform thousands of
biological reactions, such as decoding genes, in
a few seconds.
What are the different uses of Biochips?
Expression Profiling is the first DNA arrays
technological application that was developed
successfully. Today, it is the most largely
employed application and which in full
expansion since the multiplication of chips
covering the whole genome of various
organisms, The transcription analysis makes it
possible to establish the Expression Profiling
of gene according to one or more parameters
and thus predicted not characterized gene
function by comparing various
Transcriptomes. This biochip type allows a
better comprehension of molecular and cellular
systems and mechanisms responsible for
diseases or disorders. In the same way, with
oncologic and pharmacological interest to
detect SNPs (Singlel-Nucleotide Polymorphism)
which are stable genetic markers allowing to
analyze the genotypes associated with
pathologies, genotypage is the detection of

polymorphisms between gene alleles or new
mutations, biochip companies developed short
oligonucleotide chips, enough specific to
discriminate SNPs sequences differing from only
one nucleotide.
Also recently, the "CGH-arrays" appeared on
the market to accelerate CGH (Comparative
Genomic Hybridization) technique use to detect
DNA copy number variations such as
chromosomal amplifications and deletions of
the areas associated pathology or cancer
development. Indeed, CGH-arrays chart
genomic rearrangements with a resolution
much higher than traditional CGH technique.
These arrays was used successfully in
classification studies of cancer sub-types, gene
identification with amplified expression of the
tumors (breast, stomach cancers...) and in
rearrangement analysis of constitutive genetic
After hard beginnings because of technological
problems, the protein arrays are currently in
full progression, biochip companies see in them
a potential more important than DNA arrays
and invest above.

Indeed, the proteins are the targets of therapy
majority. Their uses allow the evaluation of the
drug effectiveness and toxicity before clinical
trials and the appreciation of protein
differential expression in order to identify new
drugs but also discover protein markers who
indicate disease stages.

The DNA or protein arrays contribute to the rise
of pharmacogenomic. Indeed, in many cases,
doctors have an drug arsenal to treat a
pathology. Those proved an effectiveness which
varies from a patient to another. It thus rests to
the expert to determine by successive tests
which compound will be most effective for a
patient. A fortiori, this information is highly
required by the pharmaceutical companies. The
pharmacogenomic will have as a role to give
this information in advance starting from a
genomic test of the patient. Pharmaceutical
companies intend to develop "genetically
optimized" drugs thanks to biochips.
Also, DNA arrays concern the sectors of agri-
food, defense and the environment for their
capacity to detect and screen specific organisms
and stems carrying of molecular identification
or "code-bar markers. This is why biochips are
under development or are currently marketed
to detect the presence of micro-organisms
virulent or characteristic of a certain medium
condition. In the same way, the agri-food sector
is a biochip user with strong potential since they
can accelerate the development of new
transgenic plants but also control the origin of
genetically modified plants or diagnose the
presence of bacteria in food. All the market of
food safety is thus concerned and awaits
portable test instruments for the use
throughout the production food chain. The
defense sector with the bioterrorism fear of in
urban environment planifies to use biochips in
order to quickly detect organic elements and
with low cost, in particular of the pathogenic
agents diluted in the environment.

b. Trends in the Technology
Biochips are likely to have an increasing impact
on genetic diagnostics, drug discovery, and
basic research applications.
Introduction to Biochips
Biochips are very attractive to drug developers
because of its cheap and reliable computer chip
look-alike that can perform thousands of
biological reactions. These chips automate
highly repetitive laboratory tasks by replacing
cumbersome equipment with miniaturized,
microfluidic assay chemistries, they are able to
provide ultra-sensitive detection methodologies
at significantly lower costs per assay than
traditional methods and in a significantly
smaller amount of space.
At present, applications are primarily focused
on the analysis of genetic material for defects or
sequence variations. Corporate interest centers
around the potential of biochips to be used
either as point-of-care diagnostics or as high-
throughput screening platforms for drug lead
The key challenge to making this industry as
universally applicable as processor chips in the
computer industry is the development of a
standardized chip platform that can be used
with a variety of "motherboard" systems to
stimulate widespread application.

Historical Perspective of Biochips
It is important to realize that a biochip is not a
single product, but rather a family of products
that form a technology platform. Many
developments over the past two decades have
contributed to its evolution.
In a sense, the very concept of a biochip was
made possible by the work of Fred Sanger and
Walter Gilbert, who were awarded a Nobel
Prize in 1980 for their pioneering DNA
sequencing approach that is widely used today.
DNA sequencing chemistry in combination with
electric current, as well as micropore agarose
gels, laid the foundation for considering
miniaturizing molecular assays. Another Nobel-
prize winning discovery, Kary Mullis's
polymerase chain reaction (PCR), first described
in 1983, continued down this road by allowing
researchers to amplify minute amounts of DNA
to quantities where it could be detected by
standard laboratory methods. A further
refinement was provided by Leroy Hood's 1986
method for fluorescence-based DNA
sequencing, which facilitated the automation of
reading DNA sequence.
Further developments, such as Sequencing By
Hybridization, Gene Marker Identification,
and Expressed Sequence Tags, provided the
critical technological mass to prompt corporate
efforts to develop miniaturized and automated
versions of DNA sequencing and analysis to
increase throughput and decrease costs.

In the early and mid-1990s, companies such as
Hyseq and Affymetrix were formed to develop
DNA array technologies.
Current State
The availability of genetic sequence information
in both public and corporate databases has
gradually shifted home-based R&D away from
pure sequencing for sequencing's sake and
toward gene functionoriented studies.

It soon became apparent to everyone involved
in genomics that gene sequence data alone was
of relatively little clinical use unless it was
directly linked to disease relevance. This, in
turn, has driven the development of the field of
pharmacogenomicsan approach that seeks to
develop drugs tailored to individual genetic
In this regard, DNA-based biochips are at
present used primarily for two types of analysis.
First, they have been used successfully for the
detection of mutations in specific genes as
diagnostic "markers" of the onset of a particular
disease. The patient donates test tissue that is
processed on the array to detect disease-
related mutations. The primary example of this
approach is the Affymetrix GeneChip.
The GeneChip is designed to detect single
nucleotide polymorphisms of the tumor-
suppressor gene;

The HIV GeneChip is designed to detect
mutations in the HIV-1 protease and also the
virus's reverse transcriptase genes; and the
GeneChip focuses on mutations of key liver
enzymes that metabolize drugs. Affymetrix has
additional GeneChips in development, including
biochips for detecting the breast cancer gene,
BRCA1, as well as identifying bacterial
pathogens. Other examples of biochips used to
detect gene mutations include the HyGnostics
modules made by Hyseq.
A second application for DNA-based biochips is
to detect the differences in gene expression
levels in cells that are diseased versus those
that are healthy. Understanding these
differences in gene expression not only serves
as a diagnostic tool, but also provides drug
makers with unique targets that are present
only in diseased cells. For example, during the
process of cancer transformation oncogenes
and proto-oncogenes are activated, which
never occurs in healthy cells.
Targeting these genes may lead to new
therapeutic approaches. Examples of biochips
designed for gene expression profile analysis
include Affymetrix's standardized GeneChips for
a variety of human, murine, and yeast genes, as
well as several custom designs for particular
strategic collaborators; and Hyseq's HyX Gene
Discovery Modules for genes from tissues of the
cardiovascular and central nervous systems, or
from tissues exposed to infectious diseases.

Besides these two immediate array-based
applications for this technology, a number of
companies are focusing on creating the
equivalent of a wet laboratory on a chip. One
example is Caliper's LabChip, which uses
microfluidics technology to manipulate minute
volumes of liquids on chips. Applications include
chip-based PCR as well as high-throughput
screening assays based on the binding of drug
leads with known drug targets.
Finally, in addition to DNA and RNA-based chips,
protein chips are being developed with
increasing frequency. For example, a recent
report describes the development of a
quantitative immunoassay for prostate-specific
membrane antigen (PSMA) based on a protein
chip and surface-enhanced laser
desorption/ionization mass spectrometry
Industry challenges
A key challenge to the biochip industry is
standardization. Both the assays and the
ancillary instrumentation need to be interfaced
so that the data can be easily integrated into
existing equipment. This is particularly
important when genetic diagnostic applications
are at stake, because important clinical
decisions are to be based on the interpretation
of gene chip readouts, and these results need to
be independent of the manufacturer of the

An example of an effort to address this issue is
the formation of the Genetic Analysis
Technology Consortium (GATC) by Affymetrix
and Molecular Dynamics2. The aim of this group
is to establish an industry standard for the
reading and analysis of many types of chips. In
debating whether or not to join this consortium,
companies are forced to decide whether their
market niche will be broad use across the
industry or highly customized applications in
niche areas. When the decision is for the latter,
it is unlikely that they will spend the time or
money to standardize their product.
There are also important technical challenges
for this industry that are fueling a highly
competitive R&D race in order to establish
market dominance. This is especially true in the
"reader" technology to detect and decipher
biochip readouts. Despite efforts to standardize
this technology, novel platforms are being
developed that promise higher throughput.
One technology is that appears to have
particular promise is the "optical mapping" of
DNA. This method involves elongating and fixing
DNA molecules onto derivatized glass slides in
order to preserve their biochemical
accessibility. It has the added feature of being
able to maintain sequence order after
enzymatic digestion. This system has shown
promise for high throughput and accurate
sequence analysis when integrated with
appropriate detection and interpretation
software3. Whether it will emerge as the
system of choice, however, remains to be

Finally, it is sometimes asked whether mass
spectrometry can be part of next-wave biochip
technology. As currently conceived biochips are
essentially immobilized arrays of biomolecules,
whereas mass spectrometry can determine
molecular structure from ionized samples of
material. Therefore, it is difficult to envisage a
direct connection between the two, but
perhaps in the future certain aspects of biochip
analysis might be performed by mass
spectrometry approaches.
Future Directions
Biochip development will benefit increasingly
from applications developed for other
industries. For example, flame hydrolysis
deposition (FHD) of glasses has many
applications in the telecommunications
industry, and is now also being applied toward
the development of new biochips. A recent
report describes how FHD was used to deposit
silica with different refractive indices, resulting
in microstructures that can be readily
incorporated onto a chip and that integrate
both optical and fluidic circuitry on the same
Biochips are also continuing to evolve as a
collection of assays that provide a technology
platform. One interesting development in this
regard is the recent effort to couple so-called
representational difference analysis (RDA) with
high-throughput DNA array analysis. The RDA
technology allows the comparison of cDNA
from two separate tissue samples

One application is to compare tissue samples
obtained from a metastatic form of cancer
versus a non-metastatic one in successive
rounds. A "subtracted cDNA library" is produced
from this comparison which consists of the
cDNA from one tissue minus that from the
If, for example, one wants to see which genes
are unique to the metastatic cancer cells, a high
density DNA array can be built from this
subtractive library to which fluorescently
labeled probes are added to automate the
detection process of the differentially expressed
One study using this method compared a
localized versus a metastatic form of Ewing's
sarcoma and demonstrated that 90% of the
genes examined had expression levels that
differed between the two cancers by more than
twofold. Another area of interest for future
development is protein-based biochips. These
biochips could be used to array protein
substrates that could then be used for drug-
lead screening or diagnostic tests.
If a biosensor apparatus is built into these
biochips a further application might be to
measure the catalytic activity of various
enzymes. The ability to apply proteins and
peptides on a wide variety of chip substrates is
currently an area of intense research. The goal
is to be able to control the three-dimensional
patterning of these proteins on the chips
through either nano-patterning on single layers
or protein self-assembly.

The future will also see novel practical
extensions of biochip applications that enable
significant advances to occur without major
new technology engineering. For example, a
recent study described a novel practical system
that allowed high-throughput genotyping of
single nucleotide polymorphisms (SNPs) and
detection of mutations by allele-specific
extension on standard primer arrays. The assay
is simple and robust enough to enable an
increase in throughput of SNP typing in non-
clinical as well as in clinical labs, with significant
implications for areas such as
Finally, another development of protein
biochips involves the use of powerful detection
methodologies such as surface plasmon
resonance (SPR). A recent study describes the
use of SPR to detect the interaction between
autoantibodies and 2-glycoprotein I ( a2GPI)
immobilized on protein sensor chips, this
interaction being correlated with lupus. SPR
enabled the interaction to be detected at a very
low density of protein immobilization on the
chip, and this approach therefore has significant
potential for the future9.
As this fast-maturing field already boasts sales
of products, biochips are likely to have a
significant business future. We can expect that
advances in microfluidic biochip technology will
enable the miniaturization of devices that will
allow highly sensitive analysis of complex
biological interactions in real time.

These advances promise to transform genetic
diagnostics and drug screening because of their
reproducibility, low cost, and speed.
SWOT Analysis
The ability to detect multiple viral agents in
parallel e.g. differential diagnosis of agents from
other diseases that cause similar clinical
symptoms, or the recognition of complex
mixtures of agents.
Multiple application to all industry
Drive policy for diagnostics and disease
Epidemiological tracing
The material use on creating biochips is not
yet standardize.
Battery lifespan of a biochip are still limited.
Degradation of the insulator
Constantly biochips users must be checked to
ensure the correct data are being transmitted
to ensure the accuracy.
High-cost production

Private entities with extensive funds to funnel
resources for collaborative research to hasten
the development of the Biochip technology.
Community awareness to ensure that Biochips
can be the next standard practice for health
Government and corporate agencies to
explore usage for census, finance and social
security application to its citizens.
Military application to enable soldiers to be
properly monitor is health condition in the
battlefield and as well as to help soldiers to
cope up to any post-war traumatic problem.
Religious organization condemnation of
Biochip technology.
Privacy Issue
Monopolization of corporate entities that
would control Biochips production line.
Human rights

Education Application of Biochips
An injectable ID chip, also called a biochip
transponder, is an electronic device that is
inserted under the skin of an animal to provide
the animal with a unique identification number.
Injectable ID chips, which are less painful, faster
to implement, and more cost-effective than ear-
tags, brands, or tattoos, have been used to
identify livestock animals such as pigs, sheep,
cows, and horses for over a decade.
The "chip", which uses passive RFID technology,
is really a tissue-compatible glass tube that
contains a silicon computer chip laser-etched
with a unique alphanumeric identification code,
an antenna, and a capacitor. Once inserted
under an animal's skin (the chip comes pre-
packaged in a sterilized, disposable syringe), it
remains inactive until read by a compatible
scanner. The scanner works by sending a low
frequency radio signal to "wake up" the chip
and provide the chip with the power it needs to
send its unique identification code back to the
scanner. The alphanumeric code read by the
scanner is then compared to other codes in the
database in order to positively identify the
A prototype for the biochip transponder was
first introduced in 1979 by California inventor
Mike Beigel. By 1991, zoos around the world
began microchipping their animals and the
Congress of International Trade Endangered

Species, which has more than 100 member
countries, endorsed using implantable ID chips
for endangered species.
By the year 2,000 several U.S. cities included
microchipping as part of their mandatory pet

Cashless Transactions
Applied Digital Solutions, an American
company, announced a new syringe-injectable
microchip implant for humans, designed to be
used as a fraud-proof payment method for cash
and credit-card transactions.
The chip implant is being presented as an
advance over credit cards and smart cards,
which, absent biometrics and appropriate
safeguard technologies, are subject to theft,
resulting in identity fraud. The company will
have to compete, though, with organizations
using just a fingerprint scan for similar

Cashless payment systems are now part of a
larger technology development subset:
government identification experiments that
seek to combine cashless payment applications
with national ID information on media (such as
a smart card), which contain a whole host of
government, personal, employment and
commercial data and applications on a single,
contactless RFID chip.
In some scenarios, government-corporate
coalitions are advocating such a chip be used by
employees also to access entry to their
workplace and the company computer network,
reducing the cost outlay of the corporations for
individual ID cards.
Medical Research Applications
Stimulated by emerging tools and technologies,
DNA microarrays, often known as chips or
biochips, have moved far beyond the
They now offer applications in areas as diverse
as diagnostics, clinical profiling, and screening
genetically modified organisms.
DNA microarrays enable researchers to analyze
the expression of thousands of genes in a single
experiment under tightly controlled conditions.
First developed in the early 1990s, they initially
provided a powerful tool for scientists trying to
understand the fundamental aspects of cellular
function and the genetic causes of disease.

In recent years, DNA microarrays have moved
out of the research lab and into a wide variety
of practical applications. Siobhan Pickett,
Director if Genomic Systems for Molecular
Devices, said that they have seen the evolution
of microarrays from being primarily a gene
expression took to being used for many other
types of applications. They all expected that this
would happen eventually, because the
microarray technology is just a tool.
There's been an explosion of applications of
microarrays to comparative genomic
hybridization (CGH). Scientists would hybridize
DNA from two sources against metaphase
chromosomes. The mix is then hybridized
against a large panel of DNA probes to look for
regions of DNA gain or loss. Diagnostics has also
benefited from microarrays. The diagnostic
market is big and important for the biochip
DNA micro arraying has also started to move
into treatment technologies. "Clinical profiling is
coming along. There are a number of clinical
trials for the use of microarrays for prognosis or
therapeutic guidance. Affymetrix, the company
responsible for the first commercial DNA
microarrays, recently participated in a program
that identified the first gene linked to sudden
infant death syndrome. The company noted
that is just one example of how DNA analysis
microarrays are accelerating discovery and
bridging the gap between basic scientific
research and its impact on human health.

Clinical Trials of New Drugs
In addition, pharmaceutical firms have started
to use microarray data to determine the success
of clinical trials of new drugs. Beyond the clinic,
the technology is finding application in food
science and forensics. And basic research also
benefits from the technology. Scientists are
seeing a broad range of protein-based
applications, including research on protein-
protein interactions and antibody studies, that
use both DNA and protein microarrays.
Researchers are also using DNA microarrays to
study DNA-protein interactions.
Another key advance involves a new type of
microarray. Several companies, including
Affymetrix,Agilent Technologies, Applied
Biosystems, and NimbleGen, now produce DNA
microarrays that contain the entire human
genome on a single chip.

Cancer Research
Two decades of research has shown an
etiological relationship between certain human
papillomaviruses (HPVs) and many cases of
cervical cancer. Greiner Bio-One will introduce
its PapilloCheck DNA microarray that types 24
HPVs. The company says that it has much
greater resolution than the present test
systems. With the current tests, we can only
prove high risk or low risk. With the genotyping,
we can get the details.

The company plans to launch the system in
Europe, and in the United States once the U.S.
Food and Drug Administration approves it.
Affymetrix has contributed to an effort to
discover a mutation that had eluded
researchers for decades. Scientists at the
Translational Genomics Research Center and
the Clinic for Special Children used the
company's mapping 10K arrays to discover the
first gene linked to a form of sudden infant
death syndrome. The research team used the
arrays, each of which genotypes 10,000 single
nucleotide polymorphisms, to analyze the DNA
of just four infants and their family members.
Within five days the group identified the
mutation that had so tragically affected certain
Amish families.
Microarraying has also emerged in clinical trials.
In a recent phase 3 trial, expression profiles
helped researchers at Novartis Pharmaceuticals
to predict that the company's Gleevec drug had
a low probability of success in treating chronic
myelogenous leukemia. And in a phase 2 trial,
researchers at the Dana-Farber Cancer Research
Institute applying Affymetrix's GeneChip arrays
to myeloma patients treated with the
Millennium Pharmaceuticals drug Velcade
discovered a pattern of 30 genes that correlates
with response or lack of response to the

Food Safety
Eppendorf offers gene expression arrays, which
it calls DualChips, for several conditions,
including cancer, aging, and apoptosis. In
collaboration with European Union institutes,
the company is also developing a microarray
system for diagnosing the safety of foods, most
notably genetically modified organisms (GMOs).
It will contain the most important features of
the GMOs accepted in the European Union.

The evolution of biochips has opened new
vistas in the biological systems. In addition, all
other sciences are integrated which
cumulatively contribute for a big future of
biochip industry. The broad 'life science'
division has been witnessing a rapid growth and
technological improvements varying from
sector to sector since the past 3-5 years.
Accelerating growth rate exhibited by the
biochips industry, even during the recession
years, confirms the positive growth prospects
going ahead.
The field of drug discovery and development
research gets more glamorous with the
diagnostics and treatment at cellular level. DNA
biochips and lab-on-chips have created
revolution enabling the target validation.
Genome scan is very soon going to become an
ultimate weapon for diagnosis.

In no time all the information related to genes
will be sequenced, annotated and completed
along with the list of diseases which are
susceptible. Day to day the researchers are also
making an effort to develop medication to
control the various diseases, by using biochip
As the applications of biochips are wide both in
the research and clinical use, a wide potential
market is expected. The emergence of biochip
technology can be attributed to a decade which
has gradually developed into maturity. This
industry is expected to bring rapid and
significant changes in the life sciences and
medicine. Microarray technologies have a great
potential and is widely used in DNA and protein
Cost-Benefit Analysis
a. Cite Total Cost of Ownership (TCO) Capital
Investment, Hidden Costs
b.Cite Direct and Indirect/Strategic Benefits
c.Financial Analysis (ROI, Payback Period,
Return on Assets, Return on Equity, etc.

CBA, Financial Analysis and Trends
Research and Markets: Analysis of Global
Biochips Industry, 2012-2018

Global biochips market is forecasted to reach
US$11.4 billion by 2018 with a CAGR of 18.6%
during 2012-2018; the massive CAGR is
primarily supported by Asia-Pacific followed by
the European Union. Among the major industry
segments, biochips instruments are expected to
exert the highest support to the industry with a
CAGR of 20% globally.
The evolution of biochips has opened new
vistas in the biological systems. In addition, all
other sciences are integrated which
cumulatively contribute for a big future of
biochip industry. The broad life science' division
has been witnessing a rapid growth and
technological improvements varying from
sector to sector since the past 3-5 years.
Accelerating growth rate exhibited by the
biochips industry, even during the recession
years, confirms the positive growth prospects
going ahead. The field of drug discovery and
development research gets more glamorous
with the diagnostics and treatment at cellular
level. DNA biochips and lab-on-chips have
created revolution enabling the target
validation. Genome scan is very soon going to
become an ultimate weapon for diagnosis. In no
time all the information related to genes will be
sequenced, annotated and completed along
with the list of diseases which are susceptible.
Day to day the researchers are also making an
effort to develop medication to control the
various diseases, by using biochip technology.

As the applications of biochips are wide both in
the research and clinical use, a wide potential
market is expected. The emergence of biochip
technology can be attributed to a decade which
has gradually developed into maturity. This
industry is expected to bring rapid and
significant changes in the life sciences and
medicine. Microarray technologies have a great
potential and is widely used in DNA and protein
The report reviews the latest biochips market
trends with a perceptive attempt to disclose the
near-future growth prospects. An in-depth
analysis on a geographic basis provides strategic
business intelligence for life science sector
The study reveals profitable investment
strategies for pharmaceutical manufacturers,
biotechnology companies, laboratories,
Contract Research Organizations (CROs),
government organizations and many more in
preferred locations.
The report primarily focuses on:

Emerging Market Trends
Advancements in the Technological Space
Market Demand Of The Segments
Key Growth Areas and Market Size
Region-Wise Demand Factor
Key Competitors Edge
Investment Strategies

Estimates are based on online surveys using
customized questionnaires by our research
team. Besides information from government
databases, company websites, press releases &
published research reports are also used for
Estimates have incorporated recessionary
impact on the biochips industry.
The analysis primarily deals with products,
applications and technologies. Further, the
subdivided categories include:

-- DNA Biochips
-- Lab-on-Chips
-- Protein Biochips
-- Tissue Microarray
-- Others
--- Cell-on Chips
--- Organ-on-Chips
--- Human-on-Chips

--Gene Expression
--SNP Identification
--High Throughput Screening
- Biochip Related Products
- Instruments
- Reagents and Consumables
- Software
- Services

- Drug Discovery and Development
- Diagnostics and Treatment
- Research
- Forensic
- Other (Agriculture, Environmental Sensors,
Food Inspection)

For more information visit

About Research and Markets
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Analysis of Global Biochips Industry, 2012-2018
Global Market Watch
Global biochips market is forecasted to reach
US$11.4 billion by 2018 with a CAGR of 18.6%
during 2012-2018; the massive CAGR is
primarily supported by Asia-Pacific followed by
the European Union. Among the major industry
segments, biochips instruments are expected to
exert the highest support to the industry with a
CAGR of 20% globally. Microarrays segment
accounts for nearly 70% of the industry value
while services indicate lesser than 15% of the
market value. North America is expected to
maintain the highest market share for the
biochips industry by 2018; Asian economies are
expected to post a large CAGR of 19 percent
during 2012-2018. Higher growth rate favors
improved industry investments in Asia-Pacific
region in comparison with North America and
Europe, going ahead.
Seealso :

Biochips Market (DNA Microarrays, Lab-on-
Chip, Protein Microarrays, Tissue & Cell Arrays)
Trends & Global Forecast (2010-2015)
A biochip is defined as a collection of
miniaturized test sites (microarrays) arranged
on a solid platform that allows multiple tests to
be performed at the same time with increased
efficiency and higher speed. The global biochip
market is studied by the types and key
It was valued at $2.6 billion in 2010 and is
expected to reach $5.6 billion by 2015; growing
at a CAGR of 16.7%. This growth is attributed to
increasing applications in cancer diagnostics
and expression profiling, the boom in
personalized medicine, and government
DNA microarrays represent the largest segment
of this market and will continue to be the
largest contributor during the study period
However, this segment will be closely followed
by lab-on-chip (LOC) in the coming years due to
its wide applications and increased adoption by
various biotechnology, pharmaceutical
companies, and research laboratories.
The third largest segment protein microarrays
will be the fastest growing segment; forecasted
to grow at a CAGR of 19.9% during the study
period due to advances in the fields of genomics
and proteomics and improvements in the field
of recombinant proteins.

Reverse phase protein microarrays designed for
targeted therapies in cancer holds promise in
the global biochip market in the next 5-10
years. These microarrays provide increased
accuracy and enhanced efficacy for the
detection of rare molecules as compared to
existing microarray surfaces for cancer research
& diagnosis to help understand the proteins in
tumor cells. Thus, they have helped open the
avenues for personalized methods for cancer
The market of Asia will account for a bulk of the
future biochip market growth due to its high
growth potential and huge demand from
emerging economies such as India and China -
the large pool of heterogeneous patient
population, and increasing R&D investment in
these countries.
The top players in the biochip market such as
Affymetrix, Inc., Illumina, Inc., and Fluidigm
Corporation have relocated their manufacturing
base to Singapore to take advantage of the
benefits the country offers; coupled with rising
demand from neighboring countries of Asia.
The players also benefit from a well-established
semiconductor manufacturing base including
chip technologies. Singapore has made focused
efforts to attract life sciences corporates with
dedicated investments accounting for 3% of the
country's GDP. It came up with its R&D center -
Singapore's Biopolis R&D center in 2003-2004
and is home to the Genome Institute of

Scope of the Report
This research report categorizes the global
biochips market on the basis of applications,
types, and geography; forecasting revenues and
analyzing trends in each of the following
On the basis of applications:
DNA applications: Gene expression, SNP
genotyping, cancer diagnosis & treatment,
genomics, agricultural biotechnology, drug
discovery, and others.
Lab on chip applications: Drug discovery,
genomics, diagnostics, proteomics, IVD & POC,
high throughput screening, and others.
Protein microarray applications: Expression
profiling, proteomics, high throughput
screening, diagnostics, drug discovery, and
Other array applications: Expression profiling,
cancer diagnostics, toxicogenomics, genomics,
drug discovery, and others.
On the basis of types:
DNA microarrays, lab on chip, protein
microarrays, other arrays (cell arrays and tissue
On the basis of geography:
North America, Europe, Asia, and Rest of the

Each section will provide market data, market
drivers, trends and opportunities, top-selling
products, key players, and competitive outlook.
It will also provide market tables for covering
the sub-segments. In addition, the report will
throw light on more than 20 company profiles
covering all the sub-segments

Bringing Biomolecular Detection into the
Digital Age
Investment & Finance
In April 2009 AyoxxA secured 150 K US$ of
funding through a proof-of-concept grant from
the Singapore National Research Foundation
(NRF). Early in 2010 an additional 180 K US$
was awarded by the SMART Innovation Centre,
Singapore MIT Alliance for Research and
Technology under the Innovation Grant scheme
geared towards commercialization. A beta-
series AyoxxA Protein Chip I will be released for
evaluation by collaborators and limited users in
2011. Currently AyoxxA is seeking 1.6 Mil US$
funding in order to facilitate market entry of its
protein microarray biochip.

Biochips Market to Reach $9.6 Billion by
Monday, September 26, 2011 12:12
ROCKVILLE, MD(Marketwire Sep 26, 2011) has announced the
addition of the new market intelligence report
Global Biochip Markets: Microarrays and Lab-
on-a-Chip, to their collection of Biotechnology
market research. For more information, visit
Biochips have many applications today. In
addition to genetic applications, biochips are
being used in toxicological, protein, and
biochemical research. Biochips are also able to
rapidly detect chemical agents used in biological
warfare so that defensive measures can be
taken. With applications across many industries,
the biochip market will grow rapidly in the next
couple of years.
The global value of the overall biochips market,
by end use was $3.5 billion in the year 2010.
The size of the biochips market will increase
from $3.9 billion in 2011 to nearly $9.6 billion
by 2016, a compound annual growth rate
(CAGR) of 19.5%. Tools markets for biochips will
experience slowing growth due to maturation
of some market segments-including gene
expression analysis and single nucleotide
polymorphism (SNP) genotyping. This market
will grow at a CAGR of 8.4% from 2011 to 2016
and will reach to $2.7 billion.

The diagnostics market segment is set for high
growth. This market was around $1.05 billion in
2010 and is expected to reach $2 billion by
2011. The diagnostics market is forecasted to
grow at a CAGR of 28.2% and to reach $4.1
billion by 2016.
For more information, visit

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Read more at MarketWire
Global biochips market is forecasted to reach
US$11.4 billion by 2018 with a CAGR of 18.6%
during 2012-2018; the massive CAGR is
primarily supported by Asia-Pacific followed by
the European Union.

Among the major industry segments, biochips
instruments are expected to exert the highest
support to the industry with a CAGR of 20%
globally. Microarrays segment accounts for
nearly 70% of the industry value while services
indicate lesser than 15% of the market value.
North America is expected to maintain the
highest market share for the biochips industry
by 2018; Asian economies are expected to post
a large CAGR of 19 percent during 2012-2018.
Higher growth rate favors improved industry
investments in Asia-Pacific region in comparison
with North America and Europe, going ahead.
Complete Report Copy@
Global Biochips Market to Reach US$3.7 Billion
by 2015, According to a New Report by Global
Industry Analysts, Inc.
GIA announces the release of a comprehensive
global report on the Biochips market. The global
market for biochips is projected to reach US$3.7
billion by the year 2015, driven by expanding
application in the fields of life science research,
drug discovery, clinical and forensic testing, and
life science research.

Biochips Market in North America 2014-2018
TechNavio's analysts forecast the Biochips
market in North America to grow at a CAGR of
10.24 percent over the period 2013-2018. One
of the key factors contributing to this market
growth is the need for high-speed diagnosis.
The Biochips market in North America has also
been witnessing the increasing outsourcing
activities by drug manufacturers. However, the
high cost incurred in the implementation of
biochips could pose a challenge to the growth
of this market.
TechNavio's report, the Biochips Market in
North America 2014-2018, has been prepared
based on an in-depth market analysis with
inputs from industry experts. The report focuses
on North America; it also covers the Biochips
market landscape and its growth prospects in
the coming years. The report also includes a
discussion of the key vendors operating in this
Key vendors dominating this space are Abbott
Laboratories, Affymetrix Inc., Agilent
Technologies Inc., Becton, Dickinson and Co.,
bioMrieux S.A., BioRad Laboratories, Cepheid
Inc., Danaher Corp., GE Healthcare Ltd.,
Microarrays Inc., Qiagen N.V, Promega Corp.,
Illumina Inc., Life Technologies Corp., Roche
Holding AG, Perkin Elmer Inc., and Siemens
Healthcare Diagnostics.

Global Biochips Market 2012-2016
TechNavio's analysts forecast the Global
Biochips market to grow at a CAGR of 19.1
percent over the period 2012-2016. One of the
key factors contributing to this market growth is
the growing need for high speed diagnosis. The
Global Biochips market has also been
witnessing the high cost of deployment.
However, the increasing outsourcing activities
could pose a challenge to the growth of this
TechNavio's report, the Global Biochips market,
has been prepared based on an in-depth market
analysis with inputs from industry experts. The
report covers the Americas, and the EMEA and
APAC regions; it also covers the Global Biochips
market landscape and its growth prospects in
the coming years. The report also includes a
discussion of the key vendors operating in this
market. Key vendors dominating this space
include Affymetrix Inc., Illumina, Inc., GE
Healthcare Ltd. and Agilent Technologies Inc.
Other vendors mentioned in the report are Bio-
Rad Laboratories Inc., Biomrieux Sa, Caliper Life
Sciences Inc., Cephied Inc., Fluidigm Corp., Life
Technologies Corp., Cybrdi Inc., Gamida For Life
Group, Origene Technologies Inc., Perkinelmer
Inc., Roche Nimblegen Inc., Sigma Aldrich Corp,
Isu Abxis Co. Ltd, and Us Biomax Inc.

Biochip Forecast in Conclusion:
Global biochips market is forecasted to reach
US$11.4 billion by 2018 with a CAGR of 18.6%
during 2012-2018; the massive CAGR is
primarily supported by Asia-Pacific followed by
the European Union. Among the major industry
segments, biochips instruments are expected to
exert the highest support to the industry with a
CAGR of 20% globally. Microarrays segment
accounts for nearly 70% of the industry value
while services indicate lesser than 15% of the
market value. North America is expected to
maintain the highest market share for the
biochips industry by 2018; Asian economies are
expected to post a large CAGR of 19 percent
during 2012-2018. Higher growth rate favors
improved industry investments in Asia-Pacific
region in comparison with North America and
Europe, going ahead.
Ethical Implications
Ethical Implications of Biochips
In todays fast-paced world, where technology
reaches its icy fingers on human interaction and
permeates all things including but not limited to
established cultural and societal norms,
business standards, and ethics, it is not much of
a stretch to imagine that, advancements in
technology may in fact lead to chips that could
transmit vital information about a human
beingjust in the case of Biochips.

Privacy Concerns
Biochips, although helpful, has a slew of ethical
implications to be considered.
The most obvious being, the persons right to
privacy. Privacy can mean a whole battalion of
things, it can range from the being able to go
where one wants to go, to being able to see and
do what one wants to , to being free to act in
such a way as to make oneself happy.
In everyday life, privacy can simply be the
freedom to pursue happiness without
hindrance from any pesky sales agents
monitoring your every move, your every
purchase. Concerns about being able to do
what one wants to do, without having to
speculate if one is being monitored is one of the
main reasons why biochips are met with
skepticism by the public.
And in fact, that is probably the main reason
why biochips is not welcomed by the public
with open arms, instead it is met with dubious
thoughts. People are very protective of their
right to privacy.
A right that is protected not just by our
constitution, but by the constitution of most
every country. Yes, biochips have a myriad of
benefits in the field of health and government
authentication and what have you, but it also
goes against the grain of our very basic right to

Concerns against Coercion
Aside from privacy concerns one other ethical
dilemma is the possibility to be coerced in to
doing something one might not want to do.
Given that the advent of biochips is slowly
coming to the forerunner, more and more
individuals might be concerned about the
biochips ability to manipulate neuro-signals
and other bodily functions that might in the
end, make someone do something not out of
his own volition. Companies are adamant about
denying this from happening, but such a thing is
not outside the realm of possibility. Along with
any technological advancement, one has to take
it with a grain of salt, what can seem positive
and beneficial at first may in fact, lead to the
accrual of more negative implications than
positive. The biochip is a very powerful piece of
technological gadgetry that pushes the level of
human technological advancement to new
heights, given its magnitude of power and
possibility however, governments and citizens
themselves not to work more adamantly to
safeguard the rights that our predecessors have
worked hard to protectthe right to free will
and privacy.
Nation-Building Implications
Nation-building refers to the process of
constructing or structuring a national identity
using the power of the state. This process aims
at the unification of the people within the state
so that it remains politically stable and viable in
the long run.

Nation-building can involve the use of
propaganda or major infrastructure
development to foster social harmony and
economic growth. Nation-Building. (n.d).
Retrieved from
Biochips when handled responsibly can
contribute to nation-building but it is equally
important that a country be ready for it. At this
point, Philippines should focus its nation-
building efforts towards the basics of
infrastructure, education reform, healthcare,
and development of local communities. In the
light of technical versus adaptive change, and
taking healthcare as an example, Philippines
should address the unhealthy eating habits of
the Filipinos first thereby causing the lifestyle
diseases such as high blood and diabetes
instead of resorting to the benefits of biochips.
The government could also follow a centralized
system to hold identification, medical, and
other records of Filipinos that will eliminate the
need for building establishment and other
infrastructure as the process will now be
computerized. However, it will also mean loss
of jobs. At this point, it is more likely for the
Philippine to benefit from biochips as an
assembly hub rather than an actual user. In a
study entitled The Philippines electronics
industry by SEIPI President, Ernie Santiago, it
stated that the rate of Ph export rose from 3%
in 1970 to 61% in 2010, the biggest of all
industries. Also, 7 out of the worlds top 20
chipmakers are operating in the Philippines.

As the countrys IT sector strengthens, more
jobs will be provided and more businesses will
develop. This industry is also known to have
better compensation package compared to
other industries, with offices nationwide. IT
industry, Cebu Mitsumi for example, employs
20,000 people, the biggest in the Philippines.
Ultimately, this is an area the Philippines could
benefit from. With a labor force of 36million,
100,000 engineering and technical graduates
every year, and a cost competitive salary base,
the country can expect gainful employment and
economic development.
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