RFID powerpoint presentation

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  • 1. Keeping pace with RFID Ashish Siva David T Erik Grenoble Graduate School of Business – MIB21A
  • 2. RFID Technology What is RFID ?
    • R adio F requency Id entification
    • A micro-chip in a label used to transmit data when the label is exposed to radio waves
  • 3. RFID Basics What are the main components ?
    • RFID Tags
    • RFID Reader – Antena and transceiver(reader)
    • Host Computer
    • Major players: IBM, Texas Instruments
    Integrated chip
  • 4. RFID Basics How it works ? Antenna Passive Active
  • 5. Decades of RFID Emergence of standards. RFID widely deployed. RFID becomes a part of everyday life. 1990 – 2006 Commercial applications of RFID enter mainstream. 1980 - 1990 Explosion of RFID development. Tests of RFID accelerate. Very early adopter implementations of RFID. 1970 - 1980 Development of the theory of RFID. Start of applications field trials. 1960 - 1970 Early explorations of RFID technology, laboratory experiments. 1950 - 1960 Radar refined and used, major World War II development effort. RFID invented in 1948. 1940 - 1950 Event Decade
  • 6. RFID in Retail Supply Chain Video from IBM which demonstrates how RFID technology is helping the supply chain become more efficent through shipment tracking. 30 seconds
  • 7. RFID in Retail Supply Chain Retail Supply chain process Supplier Manufacturing Retailer/ Distributor/ Distribution Retailer store Consumer
  • 8. RFID in Retail Supply Chain Automate the Supply chain process RFID TAG Reader
  • 9. RFID in Retail Supply Chain Benefits at a glance
    • Decrease in lost stock
    • Faster locating stock
    • Lower labour requirement
    • Reduction of out-of-stock
    • Low safety stock level
    • Facilitation of JIT
  • 10. RFID in Retail Supply Chain Benefits at a glance
    • Benefits for Retailers
      • 5 – 8 % improvement in shelf stock rate
      • 5 – 10 % lower inventory levels
      • 3 – 4 % lower logistic costs
      • 2 – 10 % higher sales due to lower out of stocks
    • Benefits for Manufacturers
      • 5 – 30 % lower inventory levels
      • 2 – 13 % lower warehouse and transportation costs
      • 10 – 50 % reduction in lead-time (facilitates JIT)
      • 1 – 5 % higher sales due to lower out of stocks
  • 11. Effect on consumers In the future all items will be tagged
    • Food shopping example:
    • RFID enabled shopping carts
    • Fewer empty shelves
    • No queues
    • RFID fridge of the future
    • Personal shopping cart (as in Germany)
  • 12. Effect on consumers A video advertisment from IBM which shows how IBM believe RFID labelling in supermarkets will change the shopping experience. 30 seconds
  • 13. Effect on consumers RFID will be used for tracking
    • Border crossing
    • Pay as you go car insurance
    • Baggage tracking at airports
    • Child tracking – Verichip
  • 14. Effect on consumers A short clip from CNN showing how Verichip technology of implanting humans with RFID tags is currently being trialed in some US hospitals. 20 seconds
  • 15. Effect on consumers Other RFID uses with implants
    • 67 hospitals using RFID human implant
    • Night club admission
  • 16. Effect on consumers Retailers dream, libertarians nightmare “ How would you like it if, for instance, one day you realized your underwear was reporting on your whereabouts?” California State Senator, 2003. RFID labelled as SPYCHIP by some Consumer awareness low
  • 17. Effect on Management decisions What will be the effect on management decisions?
  • 18. Opportunities
    • Time
      • Being able to respond more quickly
      • Taking quicker decisions
    • Feedback
      • Minimize human factor
    • Savings
      • Streamlining orgs
      • Long term savings
  • 19. Implications
    • Will require faster responses!
      • Competition on new terms
    • Cost
      • Adapt existing systems and buying new ones
        • Software
        • Hardware
      • Train people
    • System failure
      • What to do?
    • Personal Integrity
      • Ethical? Customers & Personnel
      • Laws: labeling of goods carrying chips
  • 20. Effects on different levels of Management
    • General effects
      • Training, faster decision making
    • Middle Management
      • Job cuts
    • Higher/Executive Management
      • Understanding (better)
  • 21. References and recommended reading Publications A Workshop Report from the Staff of the Federal Trade Commission. 2005. Radio Frequency Identification: Applications and Implications for Consumers. Diane Publishing. Finkenzeller, K. 2005. Second Edition. RFID Handbook: Fundamentals and Applications in Contactless Smart Cards and Identification. John Wiley & Sons Inc. Glover, B. and Bhatt, H. 2006. RFID Essentials. O'Reilly Media Inc. Practel, Inc. 2004. RFID Report: A New Horizon for Accountable Society. Information Gatekeepers, Inc. Shepard, S. 2005. RFID: radio frequency identification. McGraw-Hill. Websites en.wikipedia.org/wiki/RFID www.rfidjournal.com/ www.rfid-weblog.com www.spychips.com www.verichipcorp.com www.wethepeoplewillnotbechipped.com