IBM RFID Solutions




IBM RFID Briefing


Naresh Malik
Associate Partner
nmalik@us.ibm.com

June 2005




               ...
IBM RFID Solutions


Contents

    What is RFID and why now?

    Market status and Examples of RFID

    The vision for R...
IBM RFID Solutions


What is RFID?

    Identifies an object or person using radio frequency transmission
    Programmable...
IBM RFID Solutions


What’s the RFID Advantage over Barcodes?


                             Barcode / UPC                ...
IBM RFID Solutions


Key Benefits of RFID

    Key Benefits
      Collects accurate information quickly
      Automates an...
IBM RFID Solutions


Reading Tags – Passive Tags


                           RFID
                          READER
      ...
IBM RFID Solutions


Reading Tags – Active Tags


                            RFID
                           READER
     ...
IBM RFID Solutions


RFID Systems—Three Main Components

    The Tag
        Passive tag
        Active tag
        Semi-p...
IBM RFID Solutions


Tag Types

       Class                        Type                                  Comments

      ...
IBM RFID Solutions


Tag Readability Depends on Physics and the Environment

     Frequency            Characteristics    ...
IBM RFID Solutions


RFID is not New - What Makes RFID Relevant Now?
       New Technology
        – Anti-collision algori...
IBM RFID Solutions


Electronic Product Code (ePC)

                       The ePC can catalog over 1.3 x 1016 discrete it...
IBM RFID Solutions


 The EPC Vision is Real-time Tracking of Inventory
                                                  ...
IBM RFID Solutions


     Key Market Drivers are Catalysts for RFID Adoption

       Regulation
       – TREAD Act to impr...
IBM RFID Solutions


Current Market Status of RFID

     Compliance mandates by Wal-Mart, DoD, Target, Albertson and Metro...
IBM RFID Solutions


The RFID Applications can be Clustered into Five Areas
                                Leverage RFID ...
IBM RFID Solutions


The Healthcare Industry: Opportunities for RFID

     Improving patient throughput, asset utilization...
IBM RFID Solutions

     The Pharma Industry also has Mandates to Reduce
     Counterfeiting and Distribution Costs

     ...
IBM RFID Solutions


Examples of RFID Applications
     Supply Chain
       3rd party JIT order fulfillment for surgical o...
IBM RFID Solutions


Surgical Site Identification – SURGICHIP




     http://www.surgichip.com FDA Approved 2004
20      ...
IBM RFID Solutions


Asset Tracking Using Active RFID

 “Tag” attaches to asset with very
 high strength adhesive, and
 ta...
IBM RFID Solutions


The Challenges between Reality and Vision

     Physics of tags and readers is an art rather than a s...
IBM RFID Solutions


Our Point of View

     RFID will be a powerful enabling technology that, when coupled with process
 ...
IBM RFID Solutions




24                        © 2003 IBM Corporation
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IBM RFID Briefing

  1. 1. IBM RFID Solutions IBM RFID Briefing Naresh Malik Associate Partner nmalik@us.ibm.com June 2005 © 2005 IBM Corporation
  2. 2. IBM RFID Solutions Contents What is RFID and why now? Market status and Examples of RFID The vision for RFID, its Benefits and Current Challenges Steps to Implementing RFID Other Applications of RFID 2 © 2003 IBM Corporation
  3. 3. IBM RFID Solutions What is RFID? Identifies an object or person using radio frequency transmission Programmable to receive, store, transmit data, such as serial numbers, place of assembly, or personal information such as healthcare records RFID READER Intermec UAP-2100 RFID TAG 3 © 2003 IBM Corporation
  4. 4. IBM RFID Solutions What’s the RFID Advantage over Barcodes? Barcode / UPC RFID Tag Ability to read one tag at a time Ability to read multiple tags simultaneously (no Efficiency (line of sight required) line of sight required) Dependability Labels easily damaged Tags less susceptible to damage Limited amount of data can be Significantly higher data capacity to capture Data Capacity assigned detailed information about product Potential for read/write capability, tags reusable Flexibility Static information Dynamic data access in business applications Source: IBM Business Consulting Services analysis, EPCglobal 4 © 2003 IBM Corporation
  5. 5. IBM RFID Solutions Key Benefits of RFID Key Benefits Collects accurate information quickly Automates and speeds processes Greatly increases visibility through supply chain Reduces inventory loss and shrinkage Improves productivity RFID READER Intermec UAP-2100 RFID TAG 5 © 2003 IBM Corporation
  6. 6. IBM RFID Solutions Reading Tags – Passive Tags RFID READER Intermec UAP-2100 RFID TAG The reader calls out with a radio wave that looks for a tag. RFID READER Intermec UAP-2100 RFID TAG The tag sends back data to uniquely identify the object. 6 © 2003 IBM Corporation
  7. 7. IBM RFID Solutions Reading Tags – Active Tags RFID READER Intermec UAP-2100 RFID TAG The reader listens for a radio wave emitted from a tag. RFID READER Intermec UAP-2100 RFID TAG The reader requests the tag to send back data to uniquely identify the object. 7 © 2003 IBM Corporation
  8. 8. IBM RFID Solutions RFID Systems—Three Main Components The Tag Passive tag Active tag Semi-passive tag The Reader Fixed Portable The Middleware To communicate between readers and business applications, ERP systems To manage readers and other devices Can also manage barcode or other data 8 © 2003 IBM Corporation
  9. 9. IBM RFID Solutions Tag Types Class Type Comments Class 0 Read only passive identity tags “Read-only” passive identity tags Write once read many times Gen 1.0 Class I Write once passive identity tags Gen 2.0 are interoperable Class II Passive tags with added functionality, Can monitor temperature, pressure, e.g. memory or encryption vibrations Semi-passive RFID tags Class III Battery Assisted – reader activates, Longer read range than passive battery powers Active tags – communicate with Very long read range >300’ Class IV readers and other tags on the same frequency band. Battery powered Essentially ‘readers’ – can power Class V class I, II and III tags, as well as, communicating with class IV and with each other 9 © 2003 IBM Corporation
  10. 10. IBM RFID Solutions Tag Readability Depends on Physics and the Environment Frequency Characteristics Applications Read Range - up to 18" Access control Good Penetration in Moisture Smart cards 125 kHz Slow Data Rates (LF) Costly Tags Patient ID bands No Anticollision – single tag reads Drug labeling Read Range up to 3' Access control Good Penetration in Moisture Smart cards 13.56 Mhz Poor Performance near Metals Lab specimen tracking (HF) Many Standards in Financial Market Supply chain item ID Anticollision (10-40 tags / sec) Read Ranges up to 15' Real Time Location 850 - 950 MHz Fast Data Rates Tracking Pallet & cases (UHF) Good Performance near Metals Anticollision (50 tags / sec) Read Range up to 3' Metal mount Good Performance in Metal Label insert Environments 2.45 GHz Hardened tag format Poor Performance in Moisture Fast Data Rate – anticollision 50 tags/s Reusable form factor 10 © 2003 IBM Corporation
  11. 11. IBM RFID Solutions RFID is not New - What Makes RFID Relevant Now? New Technology – Anti-collision algorithms – Multiple frequencies – Small chips - silicon core of a radio tag is now <0.4mm – Tags can be purchased for less than $0.25 in quantity – Antenna can be printed on product’s packaging – Readers on a single chip New Standards – Auto-ID Center migration to EPCglobal (Auto ID/UCC/EAN) – Assign each object a unique identifier (ID) – Data network to “Identify any object anywhere anytime automatically” – Over 100 CPG/Retail companies collaborating to create interoperable standards – Global standards for Radio Frequency Identifications (RFID) New Economics – High quantity/low price spiral – New applications & decisions based on visibility into supply chain – Cost: A few cents per tag (the bottom line) RFID is small enough, fast enough, and cheap enough to do real work with today 11 © 2003 IBM Corporation
  12. 12. IBM RFID Solutions Electronic Product Code (ePC) The ePC can catalog over 1.3 x 1016 discrete items annually (about the number of grains of rice consumed globally each year) 21.203D2A9.16E8B8.719BAE03C Header General Mgr General Mgr Object Class Object Class Serial Number Serial Number Header 28 bits 24 bits 36 bits 8 bits 8 bits 28 bits 24 bits 36 bits (>268 Million) (>16 Million) (>68 Billion) (>268 Million) (>16 Million) (>68 Billion) The “Header” defines The “General Manager The “Object Class” is The “Serial Number” is the overall length, Number” identifies used by an ePC unique within each identity type, and essentially a company, managing entity to object class. The structure of the ePC manager or identify a class or managing entity is tag encoding, organization; that is an “type” of thing. Object responsible for Classes could include assigning unique – including a filter value, entity responsible for case stock keeping if any. maintaining the non-repeating serial units of consumer- numbers in subsequent packaged goods and numbers for every fields – Object Class component parts in an instance within each and Serial Number. assembly. object class code. ePC is flexible enough to capture identification information at any level and is supported by current standards bodies like UCCnet and EAN Source: EPCglobal – EPC Tag Data Standards Version 1.1 Revision 1.23 12 © 2003 IBM Corporation
  13. 13. IBM RFID Solutions The EPC Vision is Real-time Tracking of Inventory ePC Information 3 ePC Information Query on an ePC Tag Service (PML/ONS) ePC Information ePC Information ePC Information 2 2 ePC Information ePC Information EDI Transactions Distributor, EDI Transactions Manufacturer 3PL, Retailer/ Contract Customer Manufacturer 1 1 1 Physical Product Flow Physical Product Flow Trading Partner to Trading 1 Internal ePC Network 2 Partner ePC Network 3 Industry-wide ePC Network Key Question: When will companies move from step 2 to step 3? 13 © 2003 IBM Corporation
  14. 14. IBM RFID Solutions Key Market Drivers are Catalysts for RFID Adoption Regulation – TREAD Act to improve tire safety – FDA focus to reduce counterfeiting of pharmaceuticals Cost Savings & Productivity from accurate near real time data capture – CPG compliance to retailers & DoD for supply chain applications – Tracking and location (railcars, spare parts for repairs, etc.) – Increasingly ‘work in process’ management Safety & security – Higher accountability for hazardous materials, chemicals, gases – Theft of high value items – DoD (asset location, tamper proofing) 14 © 2003 IBM Corporation
  15. 15. IBM RFID Solutions Current Market Status of RFID Compliance mandates by Wal-Mart, DoD, Target, Albertson and Metro– targeted from January to April 2005 with aim to reduce out of stocks Other retailers are active but no public mandates – Home Depot, Lowes – Best Buy – Sears/Kmart Most current are pilots within 4 walls Careful investments due to small perceived ROI in short term Hesitancy to scale solutions too quickly due to immature technology Standards for readers, tags and data sharing still being formed Foresee 3-7 year time frame for full scale implementations with data sharing across partners 15 © 2003 IBM Corporation
  16. 16. IBM RFID Solutions The RFID Applications can be Clustered into Five Areas Leverage RFID technologies to transform supply chains by providing end-to-end visibility of goods and enabling improved inventory management. Supply Chain Includes: Supply Chain Mgmt using RFID for Warehousing, pallet/goods tracking, Inventory Management Tracking, Track & Trace, Sensor/ sensing applications and counterfeiting. Apply RFID technologies to the in process manufacturing processes to enable effective Work In inventory tracking and management, product line efficiencies, and JIT manufacturing advantages. Process Includes: Automation of assembly, Component production, Production of vehicles. Manufacturing Optimize use of physical assets that are needed to make, and to deliver products and services to customers - knowing where an item/ vehicle is on route, and also tracking of depreciating good – tools, HW, equipment, leased items. Can involve RTLS. Asset Includes: Equipment tracking, Fleet management, Vehicle maintenance management, Track & Management Trace, Military and defense tracking, Spare parts tracking, PCs and tolls Monitor the movement and use of valuable equipment and personal resources. Includes: Access control and tracking, Animal tracking, Automobile ignition security, Security & Baggage handling systems, Inventory control, Parking lot security and access, Shoplifting Access Control prevention, electronic article surveillance, Vehicle security. Monitoring peoples movements, personal security, convenience and Point of sale applications. Consumer Includes: Personal identification and authentication, personal security and safety, Patient ID Applications and tracking, Maintaining shelf stock, Innovative payments, Return management,.. 16 © 2003 IBM Corporation
  17. 17. IBM RFID Solutions The Healthcare Industry: Opportunities for RFID Improving patient throughput, asset utilization and cost of labor – “[Hospitals] cannot find 15-20% of the devices they own.” Arthur Gasch, Medical Strategy Planning – Surgical equipment & devices not matched to patient schedule Improving quality of care and patient safety – Adverse Drug Events (ADE) on the rise – Data records for equipment maintenance – Matching of patient data records to diagnosis and treatment (CPOE) Goals are already identified, eg. JCAHO 2004 National Patient Safety Goals – Goal 1: Improve the accuracy of patient identification. – Goal 3: Improve the safety of using high-alert medications. – Goal 4: Eliminate wrong-site, wrong-patient and wrong-procedure surgery 17 © 2003 IBM Corporation
  18. 18. IBM RFID Solutions The Pharma Industry also has Mandates to Reduce Counterfeiting and Distribution Costs Item level EPC Tagging – Wal-Mart CII Initiative – FDA Recommendation – Purdue pilot – 2004 – Pfizer and GSK – 2005 EPCglobal Healthcare Workgroup (UCCnet and EAN) – Standards – ePedigree Paper Pedigree Required for all Wholesale drugs in FL 7-1-06 – Other States Following: CA, NV, GA 18 © 2003 IBM Corporation
  19. 19. IBM RFID Solutions Examples of RFID Applications Supply Chain 3rd party JIT order fulfillment for surgical operations Smart Shelves Consumable inventory management Tracking devices with field sales reps Tracking specimens Tracking leased equipment and repairs Safe and secure management of drugs and Product recall and lifecycle management medications Meds Administration Clinician scans ID badge to authenticate and access information and clinical data. Caregiver scans the patient’s wristband to validate id and review current orders. Bar-coded medications can be scanned to verify that patient, medication, dose, and timing are consistent and accurate. Clinician reviews the input to confirm and sends info directly to the patient’s medical record. Asset Tracking Patient Safety and Security “Tag” attaches to asset with very high Passive Patient ID Bands strength adhesive, and tamper-proof Active Patient ID Bands detection switch. Implantable RFID device RTLS Associate mothers and new borns Facilities secure access for infirm or cognitively deficient 19 © 2003 IBM Corporation
  20. 20. IBM RFID Solutions Surgical Site Identification – SURGICHIP http://www.surgichip.com FDA Approved 2004 20 © 2003 IBM Corporation
  21. 21. IBM RFID Solutions Asset Tracking Using Active RFID “Tag” attaches to asset with very high strength adhesive, and tamper-proof detection switch. Baxter’s medication delivery pump using Sovereign’s Tracking System The software generates a geo-referenced map or floor plan of the tracked area. The assets are then placed on the floor plan in real-time with an average resolution of five to ten feet, depending on vendor technology and infrastructure. 21 © 2003 IBM Corporation
  22. 22. IBM RFID Solutions The Challenges between Reality and Vision Physics of tags and readers is an art rather than a science Ability of IT to integrate potentially large data volumes and scale solutions for data sharing Reluctance to invest due to immature technology and uncertain ROI Managing impact on organization, people and processes since technology is only the enabler 22 © 2003 IBM Corporation
  23. 23. IBM RFID Solutions Our Point of View RFID will be a powerful enabling technology that, when coupled with process change, will transform supply chain operations Companies should take an incremental approach to adopting the technology - standards & technology capabilities will evolve over time Componentized solutions, that are designed for scale and future growth, should be considered Healthcare, medical devices and pharmaceuticals is particularly appealing for RFID because the ‘high value’ of items, inventory, safety justifies the investments more easily than supply chain applications 23 © 2003 IBM Corporation
  24. 24. IBM RFID Solutions 24 © 2003 IBM Corporation
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