RFID

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RF-ID M2M

• Glen Allmendinger
• Harbor Research, Inc.

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Technological Convergence Drives Big Opportunities
Pervasive Internet Ubiquitous Information,
Communications, Control Computing
Inform (Content)
Interactive Media Complex Multimedia
Television Voice Video Broadcast
Motion Picture Voice Video Broadcast
Radio Voice Broadcast
Print Text Graphics
Broadband High Bandwidth Transmission
Communicate
Digital Complex Voice Data
Wireless Simple Voice
Unit Volume
Highly Distributed Control Networked Home,
Business Industry
Data LAN / Internetworking
Voice Wireline Voice
Control
Distributed Control Networked Manufacturing
Systems
Info Appliances Information Utility
Centralized Control Programmable Control
Relay / E-M Fixed Control
Compute
Client / Server Cooperative Computing
Micros Networked PCs
Minis Distributed Computing
Mainframes Batch Timesharing
Time
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Sensors Will Play An Important Role In A Mobile
World
Smart Community
Healthcare
Banking / Financial
Government
Smart Workplace
Smart Home
Office / Factory
Home
Server Farms
Transportation
Data Ware-housing
Retail
Education
Internet WANs/LANs Multi-media Broadband
Satellite RF Cellular Mobile Fiber Cable
Communications Network
Major Opportunity Areas

• Emergency Response Repair
• Safety and Security

• Remote Customer Service
• Info Entertainment

• Intelligent Transportation
• Supply-Chain Logistics

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Defining The Pervasive Internet Opportunity All
Devices Wired Wireless
Intelligent Device Hierarchy
Potential
Mobile info appliances
1.5 billion
Mobile phones, PDAs, scanners, Web Tablets, GPS,
etc.
Human-centric
Static info appliances
PCs, servers, etc.
500 million
Vehicle cargo containers, tankers, supply chain
assets (SKU)s
350 million
Mobile devices
375 million
Medical Device, HVAC, industrial machinery,
distributed generation
Static devices
500 million
Industrial controllers, appliance controllers
Controllers
Device-centric
Accelerometers, pressure gauges, flow, position,
speed, temp biosensors, etc.
750 million
Smart sensors
35 billion
8-, 16-, 32-, 64-bit chips, etc.
Microprocessors Microcontrollers
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Intelligent Device Networking Solutions Are
Complex
SIGNALSmart Category
What Is It?
Examples
Network Services
Complete End-To-End Solution
Connectivity
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Basics - What Is An RFID Tag?
Reader languages
Computer
Memory
Radio Signal
Radio
Power
RFID Tag
A tag that stores information and exchanges it
by radio signal
Reader speaks to tag
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RFID in the Retail Supply Chain
Regional DC
Manufacturing Plant
Manufacturer adds Symbol EPC-compliant RFID tags
to products
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Items are loaded into EPC tagged cases and
pallets
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Retail Store
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Symbol readers above the shipping doors read each
pallet, case and item as it leaves the plant
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• Manufacturers pallets arrive at DC
• Items are automatically received and uploaded to
  the WMS.
• Product is picked and shipped
• Benefits include
• Increased accuracy
• Higher throughput
• Reduced labor expense

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• Delivery arrives at store
• Inventory is automatically received and updated
• Network of Symbol readers in backroom and store
  ensure that product movement is tracked
• Benefits include
• Improved shelf availability
• Efficient promotion management

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Demand from a Variety of Markets

• Retail
• EPC pallet- and case-level tagging mandates
  (passive)
• Target, Best Buy, Albertsons, Tesco,
  Meeting-Metro
• Consumer packaged goods (CPG)
• Supply chain compliance
• Federal government
• Homeland security, Department of Commerce,
  Department of Defense
• Requires top 2,500 of 17,000 suppliers to comply
  beginning January 2005

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Demand from a Variety of Markets

• Manufacturing pharmaceutical/life sciences
• Recommends track and trace applications for
  supply chain
• Aviation/transportation
• Parts tracking and sorting
• Baggage sortation and rotation

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Market Projections Point At Broad Adoption
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RFID Market Explosion
1 Trillion Tags (3)

• Demand Projected To Reach 20 Billion Tags By 2008
  !

PROJECTED
400 Billion
80 Billion (2)

• Sanjay Sarma (former head, research, Auto-ID
  Center
• IDTechEx Ltd, Smart Labels Analyst
• (3) Incucomm, RFIDEPC Changes Everything, Oct.
  2004

20 Billion (3)
6.3 Billion (2)
100 Million (3)
US Retail RFID Spending (IDC)
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
2014 2015
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Why Is All This Important For M2M, Sensor
Networks, etc.?

• RFID Networks will provide 24/7 visibility to
  tagged assets
• Key assets and products will be identifiable via
  RFID tags
• Existing infrastructure of networked RFID readers
  provides real time visibility
• Interface to 802.11/802.15 networks to move the
  data
• Sensor Extensions to RFID tags are here today
• Temp sensors from KSW, Alien
• Active and Semi-Active tags provide a natural
  extension for many types of sensors
• Temperature loggers
• Bio sensors
• Chemical sensors
• Accelerometers

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Emerging Applications Of Wireless Sensors
CONSUMER ELECTRONICS
BUILDING AUTOMATION
security HVAC AMR lighting control access control
TV VCR DVD/CD remote
PC PERIPHERALS
PERSONAL CARE
patient monitoring fitness monitoring
mouse keyboard joystick
Wireless Control
RESIDENTIAL/ LIGHT COMMERCIAL CONTROL
INDUSTRIAL CONTROL
security HVAC lighting control access
control lawn garden irrigation
asset mgt process control environmental energy
mgt
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Key Sensor Network Challenges

• Data Standards to communicate the sensor
  information
• RF Interference management
• Interoperability/Internetworking solutions

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RF ID And Related Sensors / Devices Are Part Of
The Larger Eco-System
Software Vendors
Reader Tag Development Mfg
Symbol Checkpoint Alien Tech. Markem Symbol
Standards Orgs.
ISO EPCglobal
SAP Siebel i2 Manugistics
Reference Designs
ThingMagic (Auto-ID Ctr.)
RFID Services (in-house or outsourced)
Gillette PG Walmart UPS CHEP J.D. Edwards
Accenture IBM Global Svcs. KPMG Checkpoint BoozAll
enHamilton Compuware Expanets Reynolds Reynolds
SIs VARs
Store Operations
Mfg.
Warehouse
Transport
Cross-boundary activities
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What Are The Key Adoption Forces
Business Model uncertainty
Overall Demand For Device Networking
Factors Contributing To Demand
..
Competition for customer attention becomes
digitized
Devices enable inexpensive lifestyle
enhancements
Safety and security concerns encourage
optimization
Interactions and optimization between humans and
devices
Remote monitoring, location/presence
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Vast Profits from Value-Add, Not From Devices
Transition point
Networked Marketplace
Non-Networked marketplace
The device becomes secondary to the value it
brings to the customer. Services become the
means to cultivate an ongoing customer
relationship.
Level of device-performance required by users
Unfilled needs
Time
Non-networked Products Profits come from the
product / device
Networked Products Profits come from
consumables, services, and content
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What Is The Value-Add Opportunity And Impact
Networked Product Business Model
Value-Added Services
Value in services will grow significantly
Product-Driven Business Model
Device Applications
Product Services
Sys Integration
Device Middleware
Software
System Products
Competitive advantage from proprietary,
limited-use products will diminish
Products
Value Stack
Systemic Products
Nearly ubiquitous networked embedded intelligence
will capture more value
Embedded Platforms
Electronics
Time
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Pervasive Internet Technologies Drive New Value
High
Totally Outsourced Solution
Degree of Outsourcing / Value-Added
Decision Support (Can include real time or
expert system)
Data Analysis and Tooling
Information Collection and Exception Reporting
Infrastructure to Enable Service (Pay per
transaction)
Low
Energy Services
Regulatory Services
Asset Mgmt Services
Info / IT Services
Facilities Management
S/W Support Development
System/Network Integration
Change Management
Help Desk Services
Training / Consulting
Administrative Tasks
Dispatch / Maintenance
Type of Recurring Service
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Adoption Business Mode
Level of Enterprise Integration
Model One Simple, Remote Device Management Build
sensors and connectivity into products
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