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  1. 1. An introduction to RFID and sensors Guido Sikkens Tuesday 17-04-2007 Where’s my ball? I should have placed a RFID tag!
  2. 2. Agenda <ul><li>Introduction to RFID </li></ul><ul><li>Definitions </li></ul><ul><li>Technology </li></ul><ul><li>Barriers to use </li></ul><ul><li>Applications and the business case </li></ul><ul><li>Questions </li></ul><ul><li>Million dollar question </li></ul><ul><li>Come up with a positive business case for an application using RFID </li></ul>
  3. 3. First, some definitions….
  4. 4. What is RFID? <ul><li>R adio F requency Id entification (RFID) is an automated data capture technology that can be used to electronically identify, track, and store information contained on a tag that is attached to or embedded in an object, such as a product, case or pallet. - May 2005, US Government Accountability Office. </li></ul><ul><li>Recently, Wal-Mart, Metro, Tesco and the US Department of Defense have recommended / mandated the use of RFID by their suppliers. This has sped uptake of the technology. </li></ul><ul><li>Originally used within WWII to interrogate approaching planes to determine whether they were friend or foe. </li></ul>
  5. 5. What is Silent Commerce? <ul><li>Silent Commerce focuses on using advanced tagging, sensor and actuator technologies to make everyday objects intelligent and interactive. It’s called “silent” because objects communicate and conduct commerce without human interaction </li></ul>
  6. 6. Silent Commerce – The Four Components Creating new business opportunities by making objects intelligent and interactive. Integration of multiple technologies, concepts, and platforms. ‘ Silent ’ because objects communicate and transact commerce without human interaction. Four innovative technologies are being tracked, with RFID most mature at this stage. Sensors Sensors detect physical phenomena (like shock, temperature, chemical changes, sound, light) and report back measurements. Displays Emerging display technologies are allowing for dynamic displays to be integrated into packaging, fixtures or the products themselves RFID (Radio Frequency Identification) silicon-based electronic identification tags, consisting of a tiny processor, memory, antenna. RFID tags can be read and written wirelessly and can be made cheap, without a battery. Actuators Actuators act on the physical world, based on either input from sensors or algorithms . Actuators include motors, control systems, interlocks, pumps and the like.
  7. 7. Now lets look under the covers of the technology a little…
  8. 8. The Basics of an RFID Capture System Tags Host Computer Antenna <ul><li>Transponder device made of an electronic circuit (chip) and integrated antenna </li></ul><ul><li>RF used to transfer data between tag & antenna </li></ul><ul><li>Portable memory </li></ul><ul><li>Active or passive </li></ul><ul><li>Disposable or Reusable </li></ul><ul><li>Read-only or read/write </li></ul><ul><li>Packaged in a number of form factors to accommodate environment </li></ul><ul><li>Transmits RF command signal to tags </li></ul><ul><li>Provides energy via RF to passive tags </li></ul><ul><li>Reads returned RF signal from tag </li></ul><ul><li>Controls one or more Antennae </li></ul><ul><li>Controls tag reading process, guarding against collision, misreads. </li></ul><ul><li>Contains lowest level of business logic for tag types to read </li></ul><ul><li>Receives commands from application software </li></ul><ul><li>A device controlling PC, managing one or more readers. </li></ul><ul><li>Contains some application logic to control reader operation </li></ul><ul><li>Temporal storage of read data. </li></ul><ul><li>Link to the Enterprise and Business Applications. </li></ul>Reader
  9. 9. The Tags <ul><li>They consist of a tiny processor, memory, and antenna. RFID tags can be read and written wirelessly. They vary in complexity and cost based upon frequency, memory, sensor integration, size, antenna, and power. </li></ul>Chip-antenna bonding Antenna (copper, aluminum, … and now electronic ink) RFID Chip
  10. 10. RFID Tag vs. Barcode <ul><li>Higher costs but dropping </li></ul><ul><li>Uncertain “universality” of systems </li></ul><ul><li>Tag reading currently too dependent on environmental conditions </li></ul><ul><li>Tightly linked to the infrastructure </li></ul><ul><li>Low Cost </li></ul><ul><li>Widespread utilization </li></ul><ul><li>Human readable </li></ul><ul><li>Communicates through radio waves, line of sight not required </li></ul><ul><li>RFID tags store significantly more information </li></ul><ul><li>RFID is dynamic and information can be added or deleted at every step in the supply chain </li></ul><ul><li>Increased functionality: covert and difficult to counterfeit </li></ul><ul><li>Read multiple tags at once </li></ul>RFID Bar Codes <ul><li>Transmission of data is performed optically--clear line of sight required. </li></ul><ul><li>Information storage is limited </li></ul><ul><li>Read only one tag at a time </li></ul><ul><li>Read capability can be affected by dirt, water and scuffing. </li></ul><ul><li>Reduced security </li></ul>
  11. 11. RFID – Passive v. Active tags <ul><li>Passive Tags </li></ul><ul><li>Less complex because reader provides the operating power. They can be packaged small , light , inexpensive (also called SmartLabels ) and can last over 10 years . </li></ul><ul><li>But… </li></ul><ul><li>Range of transmission is relatively short and can require higher-powered readers . </li></ul>Active Tags Containing on-board power source (e.g. a battery) they can transmit relatively long ranges , and have reduced power requirements for reader. Batteries can last generally from 2 to 7 years . But… Cost and size; Generally speaking, the more functionality, the more complex and bigger. 64K- 228K 128b – 8K Memory Low Medium Technology Maturity ~ $ 20 – $ 70 ~$0.20 USD – $ 10 Cost ~50 / > 200 gram ~0,5-5 gram (excl. Package) Weight ~2-7 years up t o 10 years Life Time ~5-100 meter <~1.5 meter Reading Distance Battery Induction Energy Source Active Tag Passive Tag
  12. 12. RFID Frequency Band Characteristics – Each Range Lends Itself to Different Applications 1. 915 MHz is the only band that provides Short Range for passive tags (due to regulatory requirements) 2. Lower UHF bands (315, 418, 433 MHz) are the only bands that provide Long Range (with active tags), have Good propagation, and can use directional Antennas 3. 132 KHz is the only band with Very Good range adjustment and propagation characteristics MW UHF HF LF SLOW (10s of Tags / s)        FAST (1000s of Tags / s) Transmission / Acquisition Speed Poor Fair Fair Good 2 Good 2 Good 2 Very Good Excellent 3 Propagation through materials Fair Long 2 Very Short ~1M 314.7- 315 MHz 65 dBuV/m @10m 315 MHz Poor Poor Poor Fair Fair Good Very Good 3 Range adjustment Long Long Long Long 2 Long 2 Short Short Active Tag Range 2400- 2483.5 MHz 902-928 MHz 868- 868.6 MHz 25mW ERP 1% 433.050- 434.790 MHz, 10% 10mW ERP 418.95- 418.975 MHz 10mW ERP 13.553- 13.567 MHz 42 dBuA/m @10m 119-136 KHz 72dBuA/m @10m Frequency Range Detail Very Short <2M Short 1 3-5 M Very Short ~1M Very Short ~1M Very Short ~1M Very Short ~1M Very Short inches Passive Tag Range 2.4GHz 915MHz 868MHz 433MHz 418MHz 13.56MHz 132KHz Band
  13. 13. Sensor Telemetry – what it enables… <ul><li>It enables an increasingly more detailed and real time view into physical business events. </li></ul>Sensor with Context <ul><li>“ I’m here” </li></ul><ul><li>“ Here’s my name” </li></ul><ul><li>“ Here’s something about me” </li></ul><ul><li>“ Here’s what is happening around me” </li></ul><ul><li>“ Here’s what you need to know” </li></ul>RFID Tag <ul><li>“ I’m here” </li></ul><ul><li>“ Here’s my name” </li></ul>RFID Tag with Sensor <ul><li>“ I’m here” </li></ul><ul><li>“ Here’s my name” </li></ul><ul><li>“ Here’s something about me” </li></ul>Embedded Computer with Sensors <ul><li>“ Here is my location” </li></ul><ul><li>“ Here’s my name” </li></ul><ul><li>“ Here’s some things that have been happening to me” </li></ul><ul><li>“ Here’s some conclusions I’ve drawn and some business relevant insight” </li></ul>
  14. 14. Barriers to use
  15. 15. Issues <ul><li>Signal reception is quite variable and difficult to tune </li></ul><ul><li>Performance… not a perfect process. Major airline & TSA encountered between .5 and 4% no-read rates depending on reader / application. </li></ul><ul><li>Privacy Concerns, such as seen within recent California Legislation. Blocking technology is an option (e.g., sticker that blocks transmission) </li></ul><ul><li>Health concerns, real or perceived </li></ul><ul><li>No global standard on allowed frequencies </li></ul><ul><li>Fragmented solutions market… tag companies, reader companies, applications and middleware… integrators are needed! </li></ul><ul><li>Standards (e.g., data format and transmission, available frequency ranges, and power at frequency) are different by industry and country. Makes it difficult for global and cross industry suppliers. </li></ul><ul><li>Tag cost is still too high. $0.05 USD target necessary for passive tags at the item level. </li></ul><ul><li>Cloning and Replay Security Issues </li></ul>
  16. 16. Applications and the Business Case
  17. 17. Sample Applications <ul><li>Deployed military cargo tracking </li></ul><ul><li>Library Books </li></ul><ul><li>Passports w/ embedded RFID </li></ul><ul><li>Drug distribution (expiration, tracking) </li></ul><ul><li>Drug dispensing (right patient, drug, and dosage) </li></ul><ul><li>Medical Record Tracking </li></ul><ul><li>Operating Room Equipment Configuration Validation </li></ul><ul><li>Border Crossing Inventory (People, Cargo) </li></ul><ul><li>Predictive Monitoring of maintainable parts </li></ul><ul><li>Track Prisoners </li></ul><ul><li>Track Weapons, Evidence </li></ul><ul><li>Environmental monitoring </li></ul><ul><li>Tolling </li></ul>
  18. 18. Sample Applications in delivery in production in distribution in storage in disposal / recycling in use in retail in maintenance in document management in worker safety in access control in handling and storage
  19. 19. FedEx Vehicle Access Control <ul><li>FedEx couriers use an automatic keyless entry and ignition system that has RFID transponders embedded within a velcro wristband. The system is being tested in 200 FedEx delivery vehicles. </li></ul><ul><li>Each time a courier makes a delivery, he/she must spend time searching for keys or use them to lock/unlock multiple doors to their vehicle. If a courier misplaces his keys , he must wait for someone from a FedEx station to bring out a spare, and the vehicle must be re-keyed at a cost of more than $200 per incident . </li></ul><ul><li>With RFID , FedEx delivery personnel are freed from the hassles of juggling their keys while carrying armloads of packages and are more productive along their routes. If a wristband is misplaced , its code can be purged from the system and a new code can be reprogrammed in a matter of seconds . </li></ul>
  20. 20. RFID ski pass <ul><li>In 1999 , TI-RFid collaborated with the Austrian company TeamAxess to develop a hands-free access system for ski lifts based upon RFID. The system, used at ski resorts in Europe, allows for improved customer service, more efficient operations, increased sales and higher throughput of customers. Remote-operated gates detect a valid ski pass and open automatically . </li></ul><ul><li>The credit-card sized ski pass fits easily into a jacket pocket and never has to be removed, helping skiers enjoy a hassle free trip to the slopes. </li></ul>
  21. 21. Questions?
  22. 22. OV card
  23. 23. Types of Business Cases <ul><li>Risk Mitigation - Low to no $$$ business case, but significant security or quality improvement </li></ul><ul><li>Analytics for Future Re-engineering – Borrowing from a future business case </li></ul><ul><li>Reduced Workforce – Efficiencies result in reduced labor requirement </li></ul><ul><li>Shifted Workforce – People shifted to focus on higher value tasks </li></ul><ul><li>Combination – Best kind of business case </li></ul>
  24. 24. Sample Business Case – Tough! Fixed Start Cost $1M Infrastructure $1M Systems Files Cost 200 Admissions / day X .20 Cent Tag X 365 Days / Year X 5 Years 5 Year Model: Medical Records Tagging (U.S. Dollar) Operations Cost 25% / Year of: - Infrastructure - Systems $2M $2.35M $2.5M = $6.85M Cost Transaction Minutes 200 Admissions / day X 365 Days / Year X 10 Handles / File X 1 Minute / Handle X 5 Years 2 Million Minutes (new time approaches 0) Cost of a Minute $25k Clerk Salary + $15k Benefits / Load / 1780hrs Active Work / Yr * 60 Minutes / Hr 35 Cents / Minute = $700K COST BENEFIT Multiple Opportunities Business Transformation Systems Integration
  25. 25. What makes it Compelling? <ul><li>RFID combined with other technology </li></ul><ul><ul><li>ERP System - POS System </li></ul></ul><ul><li>Sensing RFID Tags </li></ul><ul><ul><li>Temperature - Humidity - Pressure </li></ul></ul><ul><ul><li>Vibration / Jarring - Time - Light </li></ul></ul><ul><ul><li>Location </li></ul></ul><ul><li>RFID Memory Options </li></ul><ul><li>Multi-faceted business case </li></ul>
  26. 26. What makes for a good opportunity? <ul><li>Barcode doesn’t work – Such as not secure enough or physical proximity is difficult </li></ul><ul><li>Pure counting or accounting process – these are cases where the cost of manual counting/accounting, plus the speed of which that would be conducted, are often less than desirable or prohibitive (in this context, I define accounting = identification + counting) </li></ul><ul><li>High cost of potential failure due to missing object – cost of potential failure far outweigh immediate cost of RFID solution. This applies even if the tagged product themselves are inexpensive. (example – production failure due to missing parts, escaped prisoner, etc) </li></ul><ul><li>High cost of asset, large quantity of such assets and frequent movement of such assets – this relates to asset tracking where the cost of the missing asset could be high (example – weapons) </li></ul><ul><li>Processes which require unique, accurate identification of an object -  this applies in particular for cases where false identification of an object can be fatal (medication) or identification is human error prone </li></ul><ul><li>Every opportunity and business case must be inspected to see if RFID and sensor use is at the core of return on investment. RFID and sensors should never be a technology searching for a business application. </li></ul>
  27. 27. A Point of View
  28. 28. Company Overview <ul><li>Generated revenues of $13.67B in fiscal year 2004 </li></ul><ul><li>Employ over 110,000 professionals, based in 110 offices in 48 countries </li></ul><ul><li>We serve 84 of the Fortune Global 100, two-thirds of the Fortune Global 500 and government agencies in 26 countries </li></ul><ul><li>Of our top 100 clients in fiscal 2004, 93 have been clients for at least five years and 73 have been clients for at least 10 years </li></ul>Accenture Overview Fortune magazine's &quot;America's Most Admired Companies&quot; 2005 : For the second consecutive year, Accenture has been ranked number one in the &quot;Computer & Data Services&quot; industry category in Fortune magazine's list of America's Most Admired Companies. Companies are ranked on eight key reputation attributes: innovation, social responsibility, employee talent, management, investment value, use of assets, financial soundness and products/services. Accenture ranked first in its industry group in all eight attribute categories. Tier 1 Accenture Deloitte IBM <ul><li>Key Government Services include: </li></ul><ul><ul><li>eGovernment </li></ul></ul><ul><ul><li>Customer Relationship Management </li></ul></ul><ul><ul><li>Outsourcing </li></ul></ul><ul><ul><li>Finance & Performance Management </li></ul></ul><ul><ul><li>Human Performance </li></ul></ul><ul><ul><li>Procurement Transformation </li></ul></ul><ul><ul><li>Strategy Development </li></ul></ul>
  29. 29. A Long History of RFID Activities <ul><li>More than 8 years of hands-on RFID research </li></ul><ul><li>International network of RFID experts </li></ul><ul><li>Recognized by industry analysts and media as thought leader in RFID </li></ul><ul><li>Involved in global standardization efforts (EPCglobal / Auto-ID, ETSI) </li></ul><ul><li>Dedicated RFID centers envisioning and building business applications for all industries </li></ul><ul><li>Built the 1 st RFID Middleware platform. </li></ul><ul><li>Extensive implementation experience through RFID client engagements and R&D applications </li></ul><ul><li>Leading several RFID industry initiatives </li></ul>“ Accenture is in a truly unique position (relative to its consulting peers); its thought leadership role in RFID should strengthen. This is in part based on the company’s early experimentation with RFID (7+ years) , but also its existing consulting / outsourcing relationships with many of the leading companies in key industries.” “ ACN Appears Well-Positioned For RFID And With A Pragmatic View Of The Wave” Analyst comment, Goldman & Sachs, March 2004 .
  30. 30. Examples of Labs RFID Work & Clients Supply Chain Visibility “Gas Cylinder Tracking” Warehouse Operations Law Enforcement & Toll Collection “Electronic Number Plates” Container Tracking “Freight Tracking” RFID Pharmaceuticals Jumpstart
  31. 31. Accenture Technology Labs <ul><li>Accenture’s technology R&D organization </li></ul><ul><li>Close to 20-year track record of turning technology innovation into business results to help organizations achieve high performance </li></ul><ul><li>150 specialists in Chicago, Palo Alto, and Sophia Antipolis </li></ul><ul><li>Driving the “Sensor Revolution” </li></ul><ul><ul><li>Leveraging Ongoing R&D in </li></ul></ul><ul><ul><ul><li>RFID: 7+ years of experience </li></ul></ul></ul><ul><ul><ul><li>Telematics: 4+ years of experience </li></ul></ul></ul><ul><ul><ul><li>Remote monitoring </li></ul></ul></ul><ul><ul><ul><li>Sensors and sensor networks </li></ul></ul></ul><ul><li>At the intersection of business and technology , independent and objective, surveying the technology horizon and inventing the next wave of cutting edge business solutions </li></ul>Business Technology Value for Clients
  32. 32. Selected Accenture Silent Commerce Credentials <ul><ul><li>Pickberry Vineyards, California </li></ul></ul><ul><ul><li>Demonstrated the application of sensor telemetry in a rugged, real-world environment </li></ul></ul><ul><ul><li>Allowed Pickberry to improve its business performance by improving crop management, lowering costs while raising product quality </li></ul></ul><ul><li>Medical Device Manufacturer </li></ul><ul><li>Accenture worked jointly with various client research and development groups to generate designs for a patient data portal to improve patient care, lower patient support care costs, and creation of a new revenue stream </li></ul><ul><ul><li>Large Chemical Company </li></ul></ul><ul><ul><li>Evaluated and implemented an integrated RFID, GPS and sensor based solution that improved the in-transit visibility of railcars </li></ul></ul><ul><li>European Union </li></ul><ul><li>Planned and implemented an RFID tagging system for the tracking of livestock </li></ul><ul><li>Created a single system for health, movement, payment and inspections </li></ul><ul><ul><li>EPC Pharmaceutical Jumpstart </li></ul></ul><ul><ul><li>Led initiative with 14 major pharmaceutical companies and 2 trade associations </li></ul></ul><ul><ul><li>Investigated the use of RFID in reverse logistics, track and trace, and counterfeiting applications as well as in improving operational efficiencies </li></ul></ul>Silent Commerce Credentials <ul><li>Major Logistics and Shipping Company </li></ul><ul><li>Implemented an intelligent Asset Tracking System (IATS) software that facilitates real time monitoring of company assets and customer goods as they move through distribution and hub facilities </li></ul>
  33. 33. Accenture Government Point of View on RFID and Sensors <ul><li>50% of “RFID” Projects WILL FAIL </li></ul><ul><li>In the end, after all the hype settles, RFID and Sensors are nothing more than data acquisition… </li></ul><ul><li>… That said, RFID and Sensors provide the capability for agencies to reinvent and streamline processes, and improve security. </li></ul><ul><li>RFID and Sensor projects require: </li></ul><ul><ul><li>Business Case Development - Site and Usage Survey </li></ul></ul><ul><ul><li>Tag Prototyping with anticipated process - RF Optimization and Engineering </li></ul></ul><ul><ul><li>Methodology - Project management </li></ul></ul><ul><ul><li>An Integrator (people, process, technology, and alliances) </li></ul></ul><ul><ul><li>A pragmatic approach </li></ul></ul><ul><li>RFID and Sensors should be used when: </li></ul><ul><ul><li>The ROI is better than when barcodes or no auto-id technology is used </li></ul></ul><ul><ul><li>They are integrated into a larger system and process (ERP, POS) </li></ul></ul><ul><li>Consultants and clients must understand: </li></ul><ul><ul><li>The different types of business cases, and how difficult it is to develop a pure RFID / Sensor business case </li></ul></ul><ul><ul><li>RFID issues (Signal Read Interference, Standards, Privacy, Cost) </li></ul></ul>
  34. 34. Accenture Government Point of View on RFID and Sensors <ul><li>It is all about the business application, not the technology </li></ul>RFID and Sensors, Installation and Tuning Integration Systems, Business Intelligence, BPM Business Goals Process Redesign
  35. 35. How to Get Started List Business Processes Identify RFID Opportunities Conduct Detailed Analysis Prioritize Opportunities The 4 step idea generation & evaluation process begins with an understanding of the your business processes.
  36. 36. Accenture’s approach to RFID utilizes Solution Delivery Methodology, tailored for each situation RFID Strategy & Business Case Build Pilot Test &Refine Model Execute Pilot Scale and Realize Benefits Business Case & Value Management Program & Change Management Accenture RFID Solutions Delivery Methodology Phase 1: 6 - 8 weeks Preliminary Data Gathering & Project Preparation Develop Value Hypothesis & Understand Current State Evaluate Opportunities & Define RFID Solution Develop Implementation Plan & Business Case Phase 2: 20 - 25 weeks Select, Scope & Estimate Pilot Execute Pilot Test & Refine Models Scale and Realize Benefits Phase 3: 10+ weeks Leverage success and learning from pilot to deploy and scale RFID solution across the enterprise Conduct RFID pilot design and implementation tests Refine business model as appropriate Develop and build technical architecture Develop and/or configure technical middleware Integrate RFID solution into enterprise Create RFID Data warehouse and data mining capability Identify pilot candidate, determine the scope of the pilot/s and estimate the time, resource requirements, and cost to implement the pilot Understand goals and requirements, define scope, develop qualitative and quantitative data collection strategies, and mobilize team Conduct interviews, hold workshops, collect data, identify key business issues and define RFID opportunities Determine required technologies and define costs Determine financial and strategic benefits Prioritize RFID opportunities Create business case Assess implementation alternatives Define implementation plan and benefits timing