Finding the ROI Sweet Spot with RFID

Presented by: Tom Watson, AMI President & CEO

November 1, 2012

A recording with audio of this webinar is on our website.

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Tom Watson

President & CEO of Asset Management International

Tom Watson

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AMI – Product & Customers

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RFIDRadio Frequency Identification

Exploding in popularity

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Applications

What effect will it have on ITAM?

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Size and Cost

Costs and sizes are shrinking

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Poll #1:

What asset tracking technologies do you use today?- Manual- Barcode- Passive RFID- Active RFID

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RFID Tags – Passive vs. Active

Use both barcodes and RFID

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RFID Readers – Fixed Placement

Fixed readers

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RFID Readers – Hand-held

Portable readers

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Defining Requirements

Location Granularity = Cost

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Portal Readers

Portal readers work for data centers

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Rack Level Location Tracking

Less practical at rack level

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Case Study

Compared costs

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Baseline

Labor costs were estimated at$300K per year via barcode

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Active vs. Passive Implementation Costs

8xUsing Active RFID to rack level

8x or More!

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5

3-Year Total Cost (30K assets)

Active RFID w/Barcode

Passive RFID w/ Barcode

Barcode

Manual

Labor Tags Hardware Implementation

$0 $700,000 $1,400,000 $2,100,000 $2,800,000

TOTAL COST

TECH

NO

LOG

Y AP

PRO

ACH

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Three Year Cost Comparison

Active Model: $2,580,000

Passive Model: $580,000

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3-Year Return On Investment Sweet Spot

$4,000,000

$2,000,000

$0

$-2,000,000

$-4,000,000

Active RFID w/ Barcode Passive RFID w/ Barcode Barcode

Start 1 year 2 years 3 years 4 years 5 years

RETU

RN O

N IN

VEST

MEN

T (R

OI)

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Other Dividends

Lifecycle Speed and Accuracy

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Summary

• Lower initial cost• Fast return• Greater three-year savings

Passive RFID is the smart strategy right now.

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Questions?

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• Web: amitracks.com

• Phone: (877) 297-7618

• Presenter– Thomas Watson: tom.watson@amitracks.com– President & CEO, Co-founder

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