RFID: Cool Technology, Hot Debate

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RFIDCool Technology, Hot Debate

• Paul Zipkin
• Duke University
• Summer Workshop
• Chinese Academy of Sciences
• June 15, 2007

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Program

• Overview
• What is RFID?
• History
• Status
• Summary
• Benefits Applications
• Technology
• Competition
• Public perception
• Security

• Predictions
• Research issues
• More information

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RFIDWhat Is It?

• The technology that enables
• EZPass
• Key-less cars

from Alien Technology
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Physical Comparison
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History of Transactions Recording
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Impact of Bar Codes

• Huge reductions in transaction costs,
• gains in accuracy
• Altered map of industry
• FedEx
• E-commerce
• Will RFID have similar impacts?

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Status Summary

• Bright haze
• Lots of heat and sparks, but no clear outlines
• The internet of things
• Vision versus engineering
• Actual so far Some small applications
• Asset tracking, contact-less ID and payment
• Talk A huge range of possible applications
• Technology immature
• Many possible devices, different functions
  costs
• Rapid development, standards evolving

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Status Benefits

• A wide range of benefits is envisioned
• 1st order efficiency
• Faster, cheaper transactions
• 2nd order precision
• More accurate inventory counts
• Better security
• 3rd order new applications
• Intelligent milk
• Shopping in a store becomes like browsing the web
• Tracking, pop-ups,
• Verifying promotions

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Status Applications

• Logistics U.S. DoD and Wal-Mart mandates
• Also, Target, Marks Spencer,
• PG, Coca-Cola,
• Pharmaceuticals U.S. FDA, some states
• Many firms seeking to provide support
• TI, Accenture, IBM,
• Many smaller firms and startups
• Other firms are adopting it, if and when they
  must.
• Many dont see the business case.
• Asset tracking is robust
• The internet of expensive things

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Status Technology

• A young technology
• The basics are older, but large applications are
  new
• The market is immature sketchy price
  information, few brokers, etc.
• Several big users report good read rates, but
  others dont
• Several technologies, not one
• Passive and active (battery powered) tags
• Read only and read/write tags
• Short to long ranges, different frequencies
• Simple to complex functions
• Standards
• ANSI, ISO, EPCglobal
• gt 5-year effort, still ongoing

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Status Competition

• Bar-code technology continues to improve
• Other wireless technologies
• GPS, WiFi

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Status Public Perception

• Privacy advocates are alarmed and active.
• In 2006 California legislature forbids tracking
  people
• Governor Schwarzeneggar vetoes the bill
• Less enthusiasm and less worry outside the U.S.

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Security Risks

• Unauthorized readers
• Tracking customers, passport holders,
• Monitor inventory, sales
• Tags
• Counterfeit
• Damage
• A big effort is on to harden the technology

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Security Solutions

• Security enhancements
• Encryption
• Tamper resistance
• Kill switches
• All these are possible, but cost money
• So, higher cost, fewer applications,

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Predictions

• RFID will succeed in some applications, in due
  course.
• But bar codes will continue to be used widely.
• RFID will work best
• where 1st-order benefits (efficiencies) are
  substantial.
• Im dubious about 2nd order benefits (security).
• There will be some cool 3rd-order new
  applications.
• RD will lower costs.
• But security and reliability concerns will drive
  them up.

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Research Issues

• Empirical
• Performance of the hardware, software
• Market Adoption, prices
• Modeling
• Predicting system performance
• Inventory errors
• Tracing and tracking

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More Information

• Information portals
• http//www.rfidjournal.com/
• http//www.chinarfidnews.com/
• Newsletter
• http//www.rfidupdate.com/
• Articles
• Zipkin, P. 2006, The best things in life were
  free On the technology of transactions. Mfg
  Svc Ops Mgmt 8, 321-329.
• Lee, H. and Ö. Özer 2007, Unlocking the value of
  RFID. Prod Ops Mgmt 16, 40-64.