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  • VICS/AAFA Item-Level RFID TECHNOLOGY UPDATE January 15, 2008 RICK BAUER 1 ©2008 Voluntary Interindustry Commerce Solutions (VICS) Association www.vics.org
  • 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
  • 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
  • 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
  • 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
  • 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
  • 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
  • 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
  • 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
  • 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
  • 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
  • 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
  • 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
  • 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
  • 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
  • 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
  • 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