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  1. 1. VICS/AAFA Item-Level RFID TECHNOLOGY UPDATE January 15, 2008 RICK BAUER 1 ©2008 Voluntary Interindustry Commerce Solutions (VICS) Association www.vics.org
  2. 2. RFID Value Chain IC Inlays Printers/ Integration- (RFID Chips) Tags Readers Software Antenna Encoders Services 2 ©2008 Voluntary Interindustry Commerce Solutions (VICS) Association www.vics.org
  3. 3. IC (RFID Chips) RFID CHIP DEVELOPMENTS • RECENT IMPROVEMENTS – IMPROVEMENT IN CHIP SENSITIVITY DOUBLING OF READ RANGE – 40% REDUCTION IN CHIP SIZE – ADDITIONAL MEMORY SIZE FROM 128 BITS TO 512 BITS – INTERFERENCE IMPROVEMENTS IN CHIP LOGIC – HIGHER QUALITY YIELD BASED ON STABLE DESIGNS • 2008 EXPECTATIONS – IMPROVED CHIP SENSITIVITY OF 10-20% – EAS FEATURE ENHANCEMENT – EXPANDED MEMORY UP TO 64KB • NET IMPACT – LOWER COST, IMPROVED READ RANGE, HIGHER QUALITY & MORE APPLICATION USE FOR ITEM MARKING 3 ©2008 Voluntary Interindustry Commerce Solutions (VICS) Association www.vics.org
  4. 4. RFID Value Chain IC Inlays Printers/ Integration- (RFID Chips) Tags Readers Software Antenna Encoders Services 4 ©2008 Voluntary Interindustry Commerce Solutions (VICS) Association www.vics.org
  5. 5. Inlays Antenna INLAY DEVELOPMENTS • RECENT IMPROVEMENTS – NEW METHODS OF ANTENNA PRODUCTION INSTEAD OF METAL ETCHING – COPPER DEPOSITION & ALUMINUM DIECUTTING – IMPROVED METHODS OF ATTACHING CHIPS – GLOBAL ANTENNA DESIGNS – ANTENNA DESIGNS WITH NEAR FIELD ELEMENTS • 2008 EXPECTATIONS – SMALLER HIGH PERFORMANCE INLAY DESIGNS – MORE CHIP MANUFACTURERES ENTERING MARKET • NET IMPACT – REDUCED SIZE HIGHER PERFORMANCE INLAYS FOR ITEM MARKING WITH EXPECTED COST IMPROVEMENT 5 ©2008 Voluntary Interindustry Commerce Solutions (VICS) Association www.vics.org
  6. 6. RFID Value Chain IC Inlays Printers/ Integration- (RFID Chips) Antenna Tags Encoders Readers Software Services 6 ©2008 Voluntary Interindustry Commerce Solutions (VICS) Association www.vics.org
  7. 7. Tags TAG & LABEL DEVELOPMENTS • RECENT IMPROVEMENTS – HIGHER SPEED CONVERSION EQUIPMENT – READER TEST EQUIPMENT CAPABLE OF HIGHER SPEED TESTING – HIGH PERFORMANCE HARD TAGS FOR ITEM ASSET AND METAL APPLICATIONS • 2008 EXPECTATIONS – INCREASED PRODUCTION GLOBALLY • NET IMPACT – HIGHER VOLUME & STANDARDIZATION WILL IMPROVE COST 7 ©2008 Voluntary Interindustry Commerce Solutions (VICS) Association www.vics.org
  8. 8. RFID Value Chain IC Inlays Printers/ Integration- (RFID Chips) Tags Readers Software Antenna Encoders Services 8 ©2008 Voluntary Interindustry Commerce Solutions (VICS) Association www.vics.org
  9. 9. Printers/ Encoders PRINTER/ENCODER DEVELOPMENTS • RECENT IMPROVEMENTS – STANDARDS FOR PROGRAMMING ADDITIONAL CHIP MEMORY – IMPROVEMENT IN ENCODING RELIABILITY • 2008 EXPECTATIONS – SMALLER MOBILE PRINTERS BASED ON NEW SMALL READER DEVELOPMENT • NET IMPACT – IMPROVED RELIABILITY OF OPERATION AND FLEXIBILITY FOR ITEM MARKING APPLICATIONS 9 ©2008 Voluntary Interindustry Commerce Solutions (VICS) Association www.vics.org
  10. 10. RFID Value Chain IC Inlays Printers/ Integration- (RFID Chips) Tags Readers Software Antenna Encoders Services 10 ©2008 Voluntary Interindustry Commerce Solutions (VICS) Association www.vics.org
  11. 11. Readers READER DEVELOPMENTS • RECENT IMPROVEMENTS – SINGLE CHIP READER RELEASE (Intel) ENABLING MOBILE APPLICATIONS – STANDARDIZEDREADER PROTOCAL (LLRP) – DENSE READER MODE CAPABILITY IMPROVING CONTROL IN MARGINAL PERFORMANCE ZONES (EUROPE) – DIRECTIONALITY READS USING SOFTWARE READER CONTROL • 2008 EXPECTATIONS – EXPANSION OF MOBILE OFFERINGS WITH HIGHER PERFORMANCE – POWER OVER ETHERNET FOR READERS – HIGHER PERFORMANCE ANTENNA DESIGNS (NEAR/FAR FIELD) • NET IMPACT – IMPROVED SMALL READER PERFORMANCE, REDUCED COST 11 ©2008 Voluntary Interindustry Commerce Solutions (VICS) Association www.vics.org
  12. 12. RFID Value Chain IC Inlays Printers/ Integration- (RFID Chips) Antenna Tags Encoders Readers Software Services 12 ©2008 Voluntary Interindustry Commerce Solutions (VICS) Association www.vics.org
  13. 13. Software SOFTWARE DEVELOPMENTS • RECENT IMPROVEMENTS – MICROSOFT BIZTALK RELASE OF IMBEDDED RFID SUPPORT – CONFIGURABLE SOFTWARE SYSTEMS TO CONTROL RFID DEVICES INDIVIDUALLY – INCREASED ASSET TRACKING PROGRAMS SUPPORTING QUICK ROI – CUSTOMIZED APPLICATIONS FOCUSED ON SPECIFIC SOLUTIONS • 2008 EXPECTATIONS – MORE SIMPLIFIED SOFTWARE TO ASSIST QUICK PILOTS & ADOPTION • NET IMPACT – SIGNIFICANT IMPROVEMENT IN FLEXIBILITY AND SPEED OF ADOPTION 13 ©2008 Voluntary Interindustry Commerce Solutions (VICS) Association www.vics.org
  14. 14. RFID Value Chain IC Inlays Printers/ Integration- (RFID Chips) Tags Readers Software Antenna Encoders Services 14 ©2008 Voluntary Interindustry Commerce Solutions (VICS) Association www.vics.org
  15. 15. Integration- Services INTEGRATION & SERVICES DEVELOPMENTS • RECENT IMPROVEMENTS – ITEM SPECIFIC CUSTOMER INTERFACE ENHANCEMENTS • CUSTOMER EXPERIENCE MAGIC MIRROR • INTERACTIVE KIOSKS • LOYALTY PROGAMS – DIAGNOSTIC TOOLS TO IMPROVE RELIABILITY OF SITE IMPLEMENTATION – INCREASE IN CERTIFIED GLOBAL LABORATORIES • 2008 EXPECTATIONS – PACKAGED CONFIGURABLE INTEGRATIONS SYSTEMS OF RFID COMPONENTS • NET IMPACT – FASTER, MORE RELIABLE LOWER COST IMPLEMENTATIONS WITH ENHANCED CUSTOMER EXPERIENCE 15 ©2008 Voluntary Interindustry Commerce Solutions (VICS) Association www.vics.org
  16. 16. SUMMARY • 2007 KEY YEAR OF SIGNIFICANT TECHNOLOGY IMPROVEMENT • TECHNOLOGY IS STABLE AND READY FOR WIDE SCALE DEPLOYMENT • READER COST & PERFORMANCE IMPROVEMENTS EXPECTED IN 2008 • REAL ROI OPPORTUNITY EXISTS IN ALL LEVELS OF ITEM IMPLEMENTATION OF THE TEHNOLOGY 16 ©2008 Voluntary Interindustry Commerce Solutions (VICS) Association www.vics.org
  17. 17. Contact information Rick Bauer Director, RFID Global Program Development Avery Dennison Retail Information Services 170 Monarch Lane Miamisburg, OH 45432 Tel: 937-865-2031 E-Mail: rick.bauer@paxar.com BOOTH #435 17 ©2008 Voluntary Interindustry Commerce Solutions (VICS) Association www.vics.org
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