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  1. 1. RFID and Competitive Advantage (continued) Vlad Krotov DISC 4397 – Section 12977 University of Houston Bauer College of Business Spring 2005 Source: Acccenture, 2002; RFID Journal, 2005
  2. 2. Administrative Issues <ul><li>Lab Assignment 1 </li></ul><ul><ul><li>Monday is your last chance </li></ul></ul><ul><li>CDs </li></ul><ul><ul><li>Microsoft Visual Studio 6.0 </li></ul></ul><ul><ul><li>TAVIS Concentrator LI is in! </li></ul></ul>
  3. 3. Administrative Issues <ul><li>APICS meeting on Feb 17 </li></ul><ul><ul><li>Topic : Discussion will focus on RFID. Building an adaptive manufacturing/distribution process that allows people to react to a changing business climate requires decision-makers to have detailed and timely information from many sources, including the data collection devices themselves </li></ul></ul><ul><ul><li>Presenter : Mike Nichols is the Manager of RFID Systems Consulting for Intermec Technologies. Mike has been working in the automatic identification and data capture industry since 1976. He has served in various maintenance, systems design, software development, sales support and management roles. </li></ul></ul><ul><ul><li>Place : Marriott Galleria, 1750 West Loop South, Houston, Texas 77027 USA (713) 960-0111 </li></ul></ul><ul><ul><li>Web Site : </li></ul></ul><ul><ul><li>Cost: $10-$15 </li></ul></ul><ul><ul><li>5:30 PM - Registration 6:00 PM - Dinner 7.00 PM - Speaker's Presentation </li></ul></ul>
  4. 4. Administrative Issues <ul><li>Guest Speaker: Mr. Mel Davis, ModusLink Corporation, Feb 23d </li></ul><ul><li>Please prepare for the presentation </li></ul><ul><ul><li>Browse the company’s web site: </li></ul></ul><ul><ul><li>Read the bio of Mr.Davis </li></ul></ul><ul><ul><li>Read the papers posted on our class web site </li></ul></ul><ul><ul><li>There will be a quiz! </li></ul></ul>
  5. 6. Purdue Pharma RFID Project Challenges <ul><li>Integrating hardware from Matrics and middleware from SAP </li></ul><ul><ul><li>Auto-ID Infrastructure (AII) by SAP </li></ul></ul><ul><ul><li>SCM application by SAP </li></ul></ul><ul><li>Defective RFID labels </li></ul><ul><ul><li>Automated process for detecting </li></ul></ul><ul><li>Usage of light sensors to activate readers </li></ul>
  6. 8. Competitive Advantage <ul><li>Cost leadership </li></ul><ul><li>Differentiation </li></ul><ul><li>Cost leadership + differentiation </li></ul>
  7. 9. Strategic Characteristic of RFID Technology <ul><li>Identification </li></ul><ul><li>Transaction Efficiency </li></ul><ul><li>Visibility </li></ul>
  8. 10. RFID in Freight Transportation
  9. 11. DoD
  10. 12. DoD Derives Value from RFID <ul><li>Improved asset visibility </li></ul><ul><li>More timely and accurate shipments through one of its freight consolidation centers </li></ul><ul><li>The DOD expects to be also able to pay suppliers more quickly </li></ul>
  11. 13. Source: Accenture, 2002
  12. 14. Source: Accenture, 2002
  13. 15. AIDC Freight
  14. 22. Challenges for Freight Transportation <ul><li>Existing identification Standards </li></ul><ul><li>Existing identification processes and infrastructure </li></ul><ul><li>Proliferation of RFID </li></ul>
  15. 23. RFID in Manufacturing
  16. 25. RFID in Auto industry
  17. 26. <ul><li>Ford puts RFID tags on each parts bin </li></ul><ul><li>Warehouse operators now know, in seconds, when supplies run low, and automatically deliver parts as needed to workers on the assembly line </li></ul><ul><li>Ford is also planning to use RFID sensors to transmit battery status of their forklifts </li></ul>Source: RFID Journal, CIO Insights, 2005
  18. 29. Applications of RFID in Automotive Industry
  19. 30. Source: RFID Journal, 2005
  20. 31. RFID Strategies <ul><li>Improve supply chain </li></ul><ul><li>Gain competitive advantage </li></ul><ul><li>Improve customer service </li></ul>Source: RFID Journal, 2005
  21. 32. RFID Project <ul><li>Develop a business case </li></ul><ul><ul><li>Identify the area where RFID can be applied </li></ul></ul><ul><ul><li>Select an RFID solution </li></ul></ul><ul><ul><li>Provide justification for the project </li></ul></ul><ul><li>Develop a detailed plan </li></ul><ul><li>Conduct proof of concept </li></ul><ul><li>Pilot an RFID solution </li></ul><ul><li>Implement RFID on a larger scale </li></ul>
  22. 33. 10 Questions to Ask RFID Vendors <ul><li>Which frequencies and standards do you support? </li></ul><ul><li>Do you do site inspections? </li></ul><ul><li>Can you back up your performance claims? </li></ul><ul><li>How will you help me protect my investment? </li></ul><ul><li>How will you help me minimize my maintenance costs? </li></ul>Source: RFID Journal, 2005
  23. 34. 10 Questions to Ask RFID Vendors <ul><li>5. Have you done any interoperability testing? </li></ul><ul><li>6. Do you offer middleware? </li></ul><ul><li>7. Do you have a partner who can integrate the readers with backend systems? </li></ul><ul><li>8. Will you work with me to customize tags if I need them? </li></ul><ul><li>9. Can you deliver the volumes I need? </li></ul>Source: RFID Journal, 2005
  24. 35. Conclusion <ul><li>Use RFID only if it intrinsic to your business </li></ul><ul><li>Align your strategy with the capabilities offered by the technology </li></ul>