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  • Good evening everyone. I hope everyone is eager and ready to learn all about the wonderful world of RFID technology! Today with my colleges’ Anat, Priya and Ge, we will be talking to you about RFID technology and its surrounding networks, and marketing implications.
  • Make you familiar with the technology First, I will speak to you about the Producer Network related to RFID and more specifically Supply Chain Management Then, Anat will present some interesting topics related to the surrounding User and Complementary Networks Finally, I will provide some input as to the marketing implications that RFID has. Sound good? OK, lets begin.
  • What makes up an RFID system? [ask class, wait for a reply] RFID technology automates item identification through the use of three major components: transponders (tags), readers and middleware (Discuss 3 components on the slide)
  • Now I will brief you on the architecture that drives the system. (Discuss the process illustrated on the slide) Next we will look at the Producer Network that is involved with RFID
  • Next we will look at the Tags in a bit more detail.
  • So, does anyone know what is meant by ACTIVE and PASSIVE tags? (discuss the 2 types as listed on the slide) Active These components make the tag larger than passive tags. Some active tags are the size of a brick. Active tags can have an effective range of 100+ feet (33+m). Passive Depending on frequency and reader radiated power, passive tags can have an effective range of up to 30 feet (10m).
  • Within the producer network, lies SCM. Does everyone know what SCM is? It is the design and management of seamless, value-added processes across organizational boundaries to meet the real needs of the end customer. The development and integration of people and technological resources are critical to successful supply chain integration. The application of RFID technology on the supply chain network clearly represents Castell’s theory of the informational mode of development, in that the benefits of RFID technology as an enabler exemplify that the focus of the network has gone from one of traditional production to that of managing information. The use of RFID technology was limited for over a decade because of the high unit cost of the tags and other obstacles pertinent in a supply chain. Information management has been, for many years, extremely labour intensive, therefore leading to high costs and high overhead. However, due to the decreasing cost of RFID components and supply chain infrastructure, this phenomenon is exponentially expanding.
  • RFID technology along with the IT revolution has made knowledge work more productive through automation . Through the creation of this essentially new language , non-living animate objects can communicate with each other seamlessly, minimizing human interaction. This language enables rich, relevant and timely information to flow through the entire supply chain community, and in turn allows for increased productivity levels for all users integrated within the entire business process network.
  • Prior to the RFID networks, methods of communication between two companies regarding product shipments, was through a phone, fax, or email, which were slow and inaccurate. With the RDID network, companies can identify products throughout the supply chain and can share information about the location of goods with each other. The potential efficiencies are enormous. Reduce inventories while ensuring product is always in the right place at the right time. Furthermore, as humans would not have to scan the tags, labour costs and errors would also be greatly reduced. The final goal is to ultimately flip the supply chain around. Today, companies make goods based on a monthly forecast and then they push the goods out into the supply chain and expect that the goods will sell. If demand is greater than the forecast, then sales are lost. If the demand is smaller than the forecast than there is excess inventory forcing retailers to sell at a discount or loss. It is much more efficient to pull goods through the supply chain based on real-time demand. This technology enables that vision.
  • Some key marketing implications through this new data knowledge are; the ability of retailers to understand and predict consumer behaviour ; to determine net profit of merchandise; and to evaluate the effectiveness of promotional campaigns across multiple channels. As retailers are armed with these insights, they can now formulate and implement business strategies, create performance metrics across the organization, and improve customer service while maximizing profitability. Marketers can also use the detailed and timely information to forecast demand and supply requirements for business partners at accuracy levels never seen before. This because the scope of marketing is limited by the speed with which information, messages, and products/services can be transported. As RFID now transports the information and messages at network speeds , there is microscopic visibility and flexibility over the products and services that can be transposed into marketing theories. Ultimately, marketers can optimize resources, minimize expenses, and increase the bottom line.
  • Thank you Questions?
  • RFID TECHNOLOGY By: Sunil Patel

    1. 2. RFID TECHNOLOGY By: Sunil Patel Anat Krikunets Ge Qu Priya Pathmanathan
    2. 3. Agenda <ul><li>Intro to RFID Technology </li></ul><ul><li>Producer Network (SCM) </li></ul><ul><li>User Network </li></ul><ul><li>Complementary Networks </li></ul><ul><li>Marketing Implications </li></ul>
    3. 4. RFID technology automates item identification through the use of three major components: transponders (tags), readers and middleware What Makes Up an RFID system? <ul><li>The middleware component is the complex part of RFID implementations </li></ul><ul><li>The raw data is captured and interpreted into “events” that are relevant to the higher-level applications, such as ERP or CRM systems </li></ul><ul><li>Readers emit radio waves to query tags within range </li></ul><ul><li>Receive the radio waves returned by the tags, and convert them into a form that can be processed by a computer system </li></ul><ul><li>“ Tag” or “transponder” is the generic term for a radio frequency identification device. </li></ul><ul><li>RFID tags are made up of a microchip attached to an antenna </li></ul><ul><li>These tags can be extremely small, about three times the width of a human hair. </li></ul>Middleware Readers Tags
    4. 5. Architecture of RFID Tags <ul><li>The basic integration architecture of an RFID system involves: </li></ul><ul><li>Tags </li></ul><ul><li>Readers </li></ul><ul><li>A “ local server ”, which aggregates and interprets data. This component implements logic to make sense out of the large number of events generated by readers. </li></ul><ul><li>An “ integration server ”, which makes RFID events available to the appropriate application. </li></ul>Source: Forrester Research, Inc.
    5. 6. Components of RFID Tags
    6. 7. Types of RFID Tags <ul><li>RFID systems can use: </li></ul><ul><li>ACTIVE </li></ul><ul><li>battery-powered </li></ul><ul><li>Or </li></ul><ul><li>PASSIVE </li></ul><ul><li>reader-powered tags </li></ul>Active transponders include an internal power source and transmitter from read / write capabilities. Active tags can also perform additional functions, such as monitor temperature, humidity, shock/vibration, and report that information to the reader, along with identity data. Examples : EZPass car toll system Active RFID Tags Passive transponders reflect energy radiated by a reader, meaning they get their power from the RF waves striking them. They have no internal power source of their own. They cost less because they don’t require batteries. Example : ExxonMobil Speedpass Passive RFID Tags
    7. 8. RFID Producer Network (SCM) <ul><li>Supply Chain Management </li></ul><ul><li>Castell’s theory of Information Mode of development: benefit is that the SCN has moved from traditional production to info management </li></ul><ul><li>Information Management is exponentially expanding </li></ul>
    8. 9. RFID Producer Network (SCM) <ul><li>RFID & the IT revolution has made knowledge work more productive through automation </li></ul><ul><li>Creation of a “New Language” </li></ul><ul><li>Rich, Relevant, and Timely Information </li></ul>
    9. 10. RFID Producer Network (SCM) <ul><li>Benefits of RFID </li></ul><ul><li>Enable Supply Chain Visibility </li></ul><ul><li>Reduce Inventory Levels </li></ul><ul><li>Eliminate Human Errors </li></ul><ul><li>Demand-Pull rather than Supply-Push </li></ul>
    10. 11. User Networks -Retailers <ul><li>New business practice: Using RFID Technology to become cost efficient. </li></ul><ul><li>Currently being used “passive” or “fixed-location” readers: ability to scan tags up to 15 feet away. </li></ul><ul><li>Issues: </li></ul><ul><ul><li>Poor accuracy of the reader. </li></ul></ul><ul><ul><ul><li>Causes Data synchronization, and packaging. </li></ul></ul></ul><ul><ul><li>Many consumer groups feel that RFID tags will infringe on consumer privacy. </li></ul></ul><ul><li>Conclusion: Retailers should focus on marketing the RFID tags as non-threatening products that could eventually pass on saving to consumers. </li></ul>
    11. 12. Case Study – Wal-Mart <ul><li>Wal-Mart is taking a very strong initiative to adapt the RFID technology. </li></ul><ul><li>Information Flow –improved efficiencies. </li></ul><ul><li>Suppliers are volunteering to adapt to the technology </li></ul>
    12. 13. User Networks <ul><li>Product Diversion </li></ul><ul><li>Supplier WM / Replenishment </li></ul><ul><li>Production Planning </li></ul><ul><li>DC / Goods Receipt </li></ul><ul><li>Put-Away </li></ul><ul><li>Inventory Controls / Storage </li></ul><ul><li>Real-Time ATP Inventory </li></ul><ul><li>Case Theft </li></ul><ul><li>Reduced Out Of Stock </li></ul><ul><li>Demand Planning </li></ul><ul><li>Supply Planning </li></ul><ul><li>Pick, Pack and Ship </li></ul><ul><li>Physical Counts and Reconciliation </li></ul><ul><li>Cycle Counts </li></ul><ul><li>Consign / Hold and X-Doc Inventory </li></ul><ul><li>Store Level Promotions and Pricing </li></ul><ul><li>Unit / Item Theft </li></ul><ul><li>Pay-On-Scan </li></ul><ul><li>Consumer Understanding </li></ul><ul><li>Product R&D </li></ul><ul><li>WIP Inventory </li></ul><ul><li>Routing </li></ul><ul><li>Assembly </li></ul><ul><li>Aging / Quality Control </li></ul><ul><li>MRP </li></ul><ul><li>Capacity Planning </li></ul><ul><li>Product Assortments </li></ul><ul><li>Targeted Product Recall Process </li></ul><ul><li>Manufacturing, Warranty and Repair Tracking </li></ul><ul><li>Anti-Counterfeiting </li></ul>Pallet Tagging Case Tagging Item Tagging BENEFITS 6 months TIME 5+ years Low High
    13. 14. Complementary Networks <ul><li>Three key challenges lay ahead for both CGM and Retailer </li></ul><ul><ul><li>a) Date Standardization </li></ul></ul><ul><ul><li>b) Data Facilitation. </li></ul></ul><ul><ul><li>c) Extracting Meaningful Information. </li></ul></ul><ul><li>EPCglobal – leading an organization to ensure standardization of the EPC. </li></ul><ul><ul><li>increased efficiency and accuracy through automation </li></ul></ul><ul><ul><li>increased tracking and security through improved visibility </li></ul></ul><ul><ul><li>better collaboration by providing a globally standard framework for product information exchange </li></ul></ul>
    14. 15. Complementary Networks <ul><li>System integrators: </li></ul><ul><ul><li>specialize in automatic data collection projects. </li></ul></ul><ul><ul><li>These firms now exist, due to the inabilities of companies to handle the data </li></ul></ul><ul><li>3. Industry Intelligence </li></ul><ul><ul><li>Interpretations of Data </li></ul></ul><ul><li>Business Models: </li></ul><ul><ul><ul><ul><li>A. software solution </li></ul></ul></ul></ul><ul><ul><ul><ul><li>B. analysis-based with data-warehouse capabilities. </li></ul></ul></ul></ul><ul><ul><ul><ul><li>C. consulting based integration with data warehousing, and data capturing solutions. </li></ul></ul></ul></ul>
    15. 16. RFID Marketing Implications <ul><li>Better understanding of its business environment </li></ul><ul><li>Facilitates reactions to changes in the market </li></ul><ul><li>Forecasting demand and supply figures </li></ul><ul><li>Scope of marketing limited by speed of info flow </li></ul><ul><li>RFID enables info to flow at network speeds </li></ul>
    16. 17. Summary <ul><li>Background RFID Technology </li></ul><ul><li>Producer Network – Supply Chain Network </li></ul><ul><li>User Network </li></ul><ul><li>Complementary Networks </li></ul><ul><li>Impacts to the Marketing Sector </li></ul>
    17. 18. QUESTIONS?
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