Keeping pace with RFID

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Keeping pace with RFID

• Ashish
• Siva
• David T
• Erik

Grenoble Graduate School of Business MIB21A
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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

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RFID Basics

• What are the main components ?

• RFID Tags
• RFID Reader Antena and transceiver(reader)
• Host Computer
• Major players IBM, Texas Instruments

Integrated chip
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RFID Basics

• How it works ?

Antenna
Passive
Active
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Decades of RFID
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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
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RFID in Retail Supply Chain

• Retail Supply chain process

Supplier
Manufacturing
Retailer/ Distributor/ Distribution
Retailer store
Consumer
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RFID in Retail Supply Chain

• Automate the Supply chain process

RFID TAG
Reader
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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

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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
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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)

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Effect on consumers
A video advertisment from IBM which shows how IBM
believe RFID labelling in supermarkets will
change the shopping experience.
30 seconds
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Effect on consumers

• RFID will be used for tracking

• Border crossing
• Pay as you go car insurance
• Baggage tracking at airports
• Child tracking Verichip

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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
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Effect on consumers

• Other RFID uses with implants

• 67 hospitals using RFID human implant
• Night club admission

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Effect on consumers
Consumer awareness low

• 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
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Effect on Management decisions
What will be the effect on management decisions?
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Opportunities

• Time
• Being able to respond more quickly
• Taking quicker decisions
• Feedback
• Minimize human factor
• Savings
• Streamlining orgs
• Long term savings

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Implications

• Will require faster responses!
• Competition on new terms
• Cost
• Adapt existing systems and buying new ones
• Software
• Hardware
• Train people
• System failure
• What to do?
• Personal Integrity
• Ethical? Customers Personnel
• Laws labeling of goods carrying chips

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Effects on different levels of Management

• General effects
• Training, faster decision making
• Middle Management
• Job cuts
• Higher/Executive Management
• Understanding (better)

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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/ ww
w.rfid-weblog.com www.spychips.com www.verichipcor
p.com www.wethepeoplewillnotbechipped.com