Finding ROI with RFID
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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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The use of RFID technology in the field of IT asset management is growing quickly. But with that growth have come important questions about its application, accuracy and – perhaps most of all – its cost effectiveness. This Webinar will show you how get value from RFID without breaking the bank.
Transcript of Finding ROI with RFID
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.
© 2012 AMI 2
Tom Watson
President & CEO of Asset Management International
Tom Watson
© 2012 AMI 3
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: [email protected]– President & CEO, Co-founder
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