RFID Technology

Slide 1: Keeping pace with RFID Ashish Siva David T Erik Grenoble Graduate School of Business – MIB21A

Slide 2: RFID Technology What is RFID ? • Radio Frequency Identification • A micro-chip in a label used to transmit data when the label is exposed to radio waves

Slide 3: RFID Basics What are the main components ? Integrated chip • RFID Tags • RFID Reader – Antena and transceiver(reader) • Host Computer • Major players: IBM, Texas Instruments

Slide 4: RFID Basics How it works ? Antenna Active Passive

Slide 5: Decades of RFID Decade Event 1940 - 1950 Radar refined and used, major World War II development effort. RFID invented in 1948. 1950 - 1960 Early explorations of RFID technology, laboratory experiments. 1960 - 1970 Development of the theory of RFID. Start of applications field trials. 1970 - 1980 Explosion of RFID development. Tests of RFID accelerate. Very early adopter implementations of RFID. 1980 - 1990 Commercial applications of RFID enter mainstream. 1990 – 2006 Emergence of standards. RFID widely deployed. RFID becomes a part of everyday life.

Slide 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 This video is available at: www.towers.fr/essays

Slide 7: RFID in Retail Supply Chain Retail Supply chain process Supplier Manufacturing Retailer/ Retailer store Distributor/ Distribution Consumer

Slide 8: RFID in Retail Supply Chain Automate the Supply chain process RFID TAG Reader

Slide 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

Slide 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

Slide 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)

Slide 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 This video is available at: www.towers.fr/essays

Slide 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

Slide 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 This video is available at: www.towers.fr/essays

Slide 15: Effect on consumers Other RFID uses with implants • 67 hospitals using RFID human implant • Night club admission

Slide 16: Effect on consumers Consumer awareness low 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

Slide 17: Effect on Management decisions What will be the effect on management decisions?

Slide 18: Opportunities • Time Being able to respond more quickly Taking quicker decisions • Feedback Minimize human factor • Savings Streamlining orgs Long term savings

Slide 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

Slide 20: Effects on different levels of Management •General effects Training, faster decision making •Middle Management Job cuts •Higher/Executive Management Understanding (better)

Slide 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