RFID powerpoint presentation

Keeping pace with RFID

Ashish

Siva

David T

Erik

Grenoble Graduate School of Business – MIB21A

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

RFID BasicsWhat are the main components ?

• RFID Tags

• RFID Reader – Antena and transceiver(reader)

• Host Computer

• Major players: IBM, Texas Instruments

Integrated chip

RFID Basics

How it works ?

Antenna

PassiveActive

Decades of RFIDDecade Event

1940 - 1950 Radar refined and used, major World War IIdevelopment effort. RFID invented in 1948.

1950 - 1960 Early explorations of RFID technology, laboratoryexperiments.

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.

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

RFID in Retail Supply Chain

Retail Supply chain process

Supplier Manufacturing Retailer/

Distributor/

Distribution

Retailer store

Consumer

RFID in Retail Supply ChainAutomate the Supply chain process

RFID TAG

Reader

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

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

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)

Effect on consumers

A video advertisment from IBM which shows how IBM believe RFID labelling in supermarkets will change the shopping experience.

30 seconds

Effect on consumers

RFID will be used for tracking

• Border crossing

• Pay as you go car insurance

• Baggage tracking at airports

• Child tracking – Verichip

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

Effect on consumers

Other RFID uses with implants

• 67 hospitals using RFID human implant

• Night club admission

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

Effect on Management decisions

What will be the effect on management decisions?

Opportunities

• TimeBeing able to respond more quickly

Taking quicker decisions

• FeedbackMinimize human factor

• SavingsStreamlining orgs

Long term savings

Implications• Will require faster responses!

Competition on new terms

• CostAdapt existing systems and buying new ones

SoftwareHardware

Train people

• System failureWhat to do?

• Personal IntegrityEthical? Customers & PersonnelLaws: labeling of goods carrying chips

Effects on different levels of Management

•General effectsTraining, faster decision making

•Middle ManagementJob cuts

•Higher/Executive ManagementUnderstanding (better)

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