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RADIO FREQUENCY IDENTIFICATION

F. I. D. R. RADIO FREQUENCY IDENTIFICATION. Presented by: Allison Tippett Charlotte Claeys Donald Sengur Teresa Fong Tolu Gamu. F. I. D. R. WHAT YOU WILL LEARN AFTER THIS CLASS:. 1) WHY IS RFID IMPORTANT?. 2) WHAT IS RFID?. 3) BUSINESS APPLICATIONS. 4) POTENTIAL CHALLENGES TO MANAGE.

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RADIO FREQUENCY IDENTIFICATION

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  1. F I D R RADIO FREQUENCY IDENTIFICATION Presented by:Allison TippettCharlotte ClaeysDonald SengurTeresa FongTolu Gamu

  2. F I D R WHAT YOU WILL LEARN AFTER THIS CLASS: 1) WHY IS RFID IMPORTANT? 2) WHAT IS RFID? 3) BUSINESS APPLICATIONS 4) POTENTIAL CHALLENGES TO MANAGE 5) MANAGERIAL IMPLICATION 6) THE FUTURE OF RFID Tu

  3. F I D R WHY IS RFID IMPORTANT? Tu

  4. F I D R PROMISED BUSINESS BENEFITS • RFID is a rapidly evolving technology that can dramatically improve operational efficiencies and customer service; • RFID will fundamentally transform the way information about products, equipment, animals and even people is gathered and analyzed in real time, providing new business opportunities across all industries. Tu Alan D. Smith (2005),“Exploring radio frequency identification technology and its impact on business systems,”Information Management & Computer Security, Vol. 13, No. 1

  5. F I D R TOP 10 LEADING COUNTRIES ADOPTING RFID BY NUMBER OF PROJECTS IN 2006 Te http://www.idtechex.com/research/articles/review_of_rfid_in_2007_00000799.asp, viewed October 24 2008

  6. F I D R SIZE OF MARKET - APPLICATION Anonymous (2008),“RFID Market Projections 2008 to 2018,” IDTechEx Te

  7. F I D R SIZE OF MARKET - REVENUE Anonymous (2008), “RFID Market Projections 2008 to 2018,” IDTechEx Te

  8. F I D R FORECAST OF GLOBAL SALES OF RFID TAGS Anonymous (2008), “RFID Market Projections 2008 to 2018,” IDTechEx Te

  9. F I D R TECHNOLOGY Tu

  10. F I D R WHAT IS RFID? • Radio Frequency Identification describes technologies that use radio waves to mechanically recognize people or objects. http://en.wikipedia.org/wiki/RFID, viewed October 24, 2008 Tu

  11. F I D R HISTORY OF RFID • “RFID was founded in 1946, by the Soviet Union, which retransmitted incident radio waves with audio information;” • “The device was a passive listening device not an identification tag as it has been attributed as a predecessor to RFID technology.” http://en.wikipedia.org/wiki/RFID, viewed October 24, 2008 Tu

  12. F I D R FOUNDER OF RFID • Mario Cardullo is the father of RFID; • He was the corporate planning officer to the chairman of the Communications Satellite Corporation (Comsat); • After leaving Comsat, he put together a business proposal to develop the EKG terminal and his new idea, the RFID tag. Many people were interested in his ideas and gave him the necessary funds. With these funds he started the company ComServ; • Mario Cardullo received the first patent for a read-write RFID tag a passive radio transponder with memory. ,http://en.wikipedia.org/wiki/RFID, viewed October 24, 2008 Tu

  13. F I D R TIMELINE OF RFID Directly quoted, http://ieeexplore.ieee.org/iel5/45/33027/01549751.pdf, viewed October 24 2008 Tu

  14. F I D R RFID VS BARCODE A

  15. F I D R PARTS OF RFID TECHNOLOGY D

  16. F I D R PARTS OF RFID TECHNOLOGY • RFID tags: • Passive: • requires no interior power source; • only active when a reader is nearby to power them; • Active, or semi-passive (also known as battery-assisted): • requires power source, usually a small battery; • RFID can hold up to 10Kbits of data. ,http://en.wikipedia.org/wiki/RFID, viewed October 24, 2008 D

  17. F I D R PARTS OF RFID TECHNOLOGY • Reader: • Read all the tags within reach in sequence; • Active tags send signals to readers; • Readers send signal to passive tags and read the data broadcast by the tags; • Writer: • A reader/writer could read and write information on reusable tags. ,http://en.wikipedia.org/wiki/RFID, viewed October 24, 2008 D

  18. F I D R PARTS OF RFID TECHNOLOGY • Antennas: • Placed on the tags; • To emit and receive the signals from the readers. ,http://en.wikipedia.org/wiki/RFID, viewed October 24, 2008 D

  19. F I D R HOW PARTS WORK TOGETHER • WMS: Warehouse Management System • OMS: Order Management System • TMS: Transportation Management System • SCM: Supply Chain Management • CRM: Customer Relationship Management • SRM: Supplier Relationship Management

  20. F I D R HOW PARTS WORK TOGETHER D

  21. F I D R BUSINESSAPPLICATION- CASE STUDY: A

  22. F I D R RFID IMPLEMENTATION HISTORY • April 30, 2004 • pilot testing; • 8 manufacturing participants; • 28 volunteers; • January 2005 • Mandate: top 100 suppliers. A Anonymous (2004), “Wal-Mart’s January Deadline,” Greenhouse Grower, Vol. 22, No. 10, pg. 34; John S. McClenahen (2005), “Wal-Mart’s Big Gamble,” Industry Week/IW,Vol. 254, No. 4, pp. 42-49.

  23. F I D R RFID EXPANSION • June 2005: • another 200 suppliers joined the effort; • End of 2006: • All domestic suppliers participated; • 2006: • Expected international roll out. A Carol Sliwa (2004), “Wal-Mart Revises ‘05 RFID Expectations,” Computerworld, Vol. 38, No. 21, pg. 14

  24. F I D R WAL-MART’S ROI • Will not disclose any information on how much money is being saved using RFID; • According to an estimate published in Fortune Magazine, Wal-Mart will receive a return of 21.5% on capital with the use of RFID. A Christine Y. Chen (2004), “Wal-Mart Drives a New Tech Boom,” Fortune, Vol. 149, No. 13, pg. 202

  25. F I D R SUPPLIERS’ ROI • Short-term • the cost of RFID overshadows any trickle-down effect received through increased sales; • Long-term • increased visibility of the supply chain will help suppliers better production scheduling and inventory management. A John S. McClenahen (2005), “Wal-Mart’s Big Gamble,” Industry Week/IW, Vol. 254, No. 4, pp. 42-49; David Blanchard (2008), “Wal-Mart Lays Down the law on RFID,” Industry Week/IW, Vol. 257, No. 5, pp. 72-74.

  26. F I D R SUPPLIERS’ INCENTIVE • Do not want to lose Wal-Mart as a distributor because of it’s size, power, and reach. A John S. McClenahen (2005), “Wal-Mart’s Big Gamble,” Industry Week/IW, Vol. 254, No. 4, pp. 42-49

  27. F I D R RFID RESEARCH • Wal-Mart sponsored research at the University of Arkansas; • Purpose: to validate the usefulness and effectiveness of RFID technology. Te David Blanchard (2008), “Wal-Mart Lays Down the law on RFID,” Industry Week/IW, Vol. 257, No. 5, pp. 72-74

  28. F I D R RESEARCH ANALYSIS • “Analysis at the university’s RFID Research Center indicates in test scores that an automated RFID-enabled inventory system improves accuracy by 13%;” • This finding is important because inventory inaccuracy can lead to a 10% loss of profit; • With reports of inventory inaccuracy being as high as 65%, the 13% improvement rate demonstrates how RFID can significantly improve this problem. Te Directly Sourced: David Blanchard (2008), “Wal-Mart Lays Down the law on RFID,” Industry Week/IW, Vol. 257, No. 5, pp. 72-74

  29. F I D R KEY ISSUES FOR SUPPLIERS • Cost; • Standards; • Technology infrastructure. A

  30. F I D R KEY ISSUES - COST • Wal-Mart pushes the cost of RFID onto its suppliers; • AMR Research estimated that the Wal-Mart suppliers as a whole have spent over $250 million on RFID technology and implementation; • Factors affecting cost are the number of tags needed, complexity of tags, types of products, and the distribution environment. A John S. McClenahen (2005), “Wal-Mart’s Big Gamble,” Industry Week/IW, Vol. 254, No. 4, pp. 42-49

  31. F I D R KEY ISSUES - COST Cost of Implementation: A Directly Sourced: John S. McClenahen (2005), “Wal-Mart’s Big Gamble,” Industry Week/IW, Vol. 254, No. 4, pp. 42-49

  32. F I D R KEY ISSUES - STANDARD • There are several RFID tag classes and there has not been an official standard which complicates the application and use of RFID. A http://knowledge.wharton.upenn.edu/article.cfm?articleid=1005, viewed October 8, 2008

  33. F I D R KEY ISSUES - TECHNOLOGY INFRASTRUCTURE • Suppliers are realizing that the information being collected through RFID cannot be stored or used properly with existing databases; • Updates are needed to filter information especially in areas of business intelligence tools, data mining, & the use of standard data definitions across the corporation; • The biggest obstacle of making RFID work is the managing of information. A http://knowledge.wharton.upenn.edu/article.cfm?articleid=1005, viewed October 8, 2008

  34. F I D R SCENARIO OF RFID IMPLEMENTATION “A case of product leaves the manufacturer and is tracked and instantly routed when it reaches a Wal-Mart distribution center. There’s no need to rip open a case and inspect the contents because the RFID reader has already identified the item. At the store, the goods are monitored in real-time so there’s no need for inventory. When the shelves are empty, RFID readers alert workers to restock shelves. If Wal-Mart’s inventory is depleted, a replenishment message is automatically sent to the supplier.” C http://knowledge.wharton.upenn.edu/article.cfm?articleid=1005, viewed October 8, 2008

  35. F I D R INDUSTRY IMPACT • Many companies are worried about being left behind; • Target, Albertson’s, and Walgreens have all started pilot programs and implementation. C Christine Y. Chen (2004), “Wal-Mart Drives a New Tech Boom,” Fortune, Vol. 149, No. 13, pg. 202

  36. F I D R OTHER BUSINESS APPLICATIONS Te

  37. F I D R CONTACTLESS SMART CARDS • Largest RFID by far and business is booming; • Over 800 millions tags sold in 2007; • Identification cards that do not need to make contact with the reader to be read, or swiped in a special slot; • Applications: building access, biometrics, parking, cashless vending/payment, time and attendance, loyalty programs, etc; • Available in: plastic cards, key fobs, watches, documents, mobile phones. Te David C. Wyld (2006), “RFID 101: the next big thing for management,” Management Research News, Vol. 29, No. 4; Anonymous (2008), “Strong growth of RFID smart cards/ payment key fob,” IDTechEx.

  38. F I D R CONTACTLESS SMART PAYMENT MasterCard Paypass • “Tap n’ Go;” • As of Nov 2007, over 20 million MasterCard PayPass cards and devices issued globally; • Approximately 80,000 merchant locations around the world: McDonald's, 7-Eleven, CVS, Duane Reade, Sheetz and Regal Entertainment Group. Te Anonymous (2007), “MasterCard Says 20 Million PayPass Contactless Cards Issued,” Contactless Payment Systems, Dec 10; http://www.mastercard.com/us/personal/en/aboutourcards/paypass/, viewed October 24, 2008.

  39. F I D R CONTACTLESS SMART PHONE McDonald’s & SK Telecom • Shinchon branch near Yonsei University, Western Seoul, Korea; • First world “Touch Order” menu at a restaurant; • How it works: • Customer downloads “Order” program to their mobile phones; • RFID reader and menu at each table; • Customer plug the reader into their mobile phones and point at food items; • Bill is charged through the mobile phone; • When meal is ready, short message is sent to the phone so customer can pick up at the designated counter. Te Gautam (2007), “Avoid long queues for ordering your favorite burger with RFID,” Contactless Payment Systems, Sep 12

  40. F I D R CONTACTLESS SMART TICKET 2008 Beijing Olympics Games • Prevent counterfeiting: • Ticket: Embedded 13.56-MHz chip stores a unique serial number to ensure authenticity; • RFID readers that control doors and cameras throughout the facilities. Te Laurie Sullivan (2006), “Olympics technology: RFID’s the ticket for secure games,” EE Times, Aug 4

  41. F I D R SUPPLY CHAIN MANAGEMENT A

  42. F I D R SUPPLY CHAIN MANAGEMENT • U.S. Department of Defense: • Mandate RFID for the military’s worldwide supply chain; • Applied to cases, pallets, packages of supplies; • Anything from uniforms to motor oil. A Elizabeth Wasserman (2007), “RFID Takes Root in Washington,” RFID Journal, May/June; Anonymous (2003), “Military Edict: Use RFID by 2005,” RFID Journal, Oct 3.

  43. F I D R SUPPLY CHAIN MANAGEMENT • Shipping: • Combined with environmental sensors to monitor temperature, light, humidity, shock, positioning, etc. A David C. Wyld (2006), “RFID 101: the next big thing for management,” Management Research News, Vol. 29, No. 4; http://www.freshpatents.com/Container-security-seal-with-destructible-rfid-tag-dt20080522ptan20080117058.php, viewed October 28, 2008

  44. F I D R RETAIL C Anonymous (2008), “Real-World RFID in Retail: ‘Custom-Tailored’ Solutions Deliver Benefits to Apparel Retailers,” Aberdeen Group Systems

  45. F I D R RETAIL • Nokia Retail Store, Arraya Center, Kuwait • http://www.youtube.com/watch?v=LZylfbdu_1k C

  46. F I D R ASSET TRACKING & AUTO ID • Asset Tracking: • Instantly determine the general location of tagged assets; • Auto ID: • Identify items and gather data on objects, humans, or animals without human intervention of data entry. Te David C. Wyld (2006), “RFID 101: the next big thing for management,” Management Research News, Vol. 29, No. 4

  47. F I D R ASSET TRACKING & AUTO ID • Auto ID: • Animals, Food, & Farming • Livestock disease control; • Improve traceability; • Condition monitoring; • Crime reduction. Te Elizabeth Wasserman (2007), “RFID Takes Root in Washington,” RFID Journal, May/June; http://www.electrocom.com.au/rfid_animalid.htm, viewed October 28, 2008

  48. F I D R ASSET TRACKING & AUTO ID • Auto ID: • Identification and Access control • Employee ID badges; • E-passports. Te Elizabeth Wasserman (2007), “RFID Takes Root in Washington,” RFID Journal, May/June

  49. F I D R HEALTH CARE • In 2006, the healthcare industry spent $90 million on RFID. It is expected that cost of RFID will increase to $2.1 billion by the year 2016. Tu http://www.rfidhealthcare.com, viewed October 24, 2008

  50. F I D R HEALTH CARE • Asset Management: • Locate movable assets. Tu http://www.rfidhealthcare.com, viewed October 24, 2008

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