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Sloan Information Period (SIP) RF.450Information Infrastructure Needed for Effective

Utilization of RFID AutoID technologies

Part 1 – RFID Technology & Application Areas

Subject RF.450 @ E51-145 on Monday , Oct 24, 2005 at 2:30-5:30 PM

Abstract:        This is an exploratory research SIP activity.  A high degree of interaction and student participation and discussion is expected.       

       In order to maximize the effective use of RFID, existing intra- and inter-organizational business processes must be re-thought and re-structured, and an appropriate Information Technology (IT) infrastructure must be established both across organizations and between organizations.

Prof Stuart Madnick, <smadnick@mit.edu>, Room: E53-321, Ext: 3-6671.[Revised 10-23-2005. Latest version in http://web.mit.edu/smadnick/www/SIP2005/ ]

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General OutlineIn this SIP activity we will discuss:

• What is the RFID technology?

• What are the possible/claimed benefits of RFID?• What are existing or likely information infrastructure

deficiencies,- Especially in the areas of information exchange and data standards?

• What are some IT research directions to address these problems?Advertisement: If you like this material, consider these courses for Spring 2006:

15.578 – GLOBAL INFORMATION SYSTEMS: COMMUNICATIONS & CONNECTIVITY AMONG INFORMATION (Tues & Thurs, 10-11:30; E51-376 – Primarily for Sloan MBA’s)

15.565 / ESD.565 – INTEGRATING INFORMATION SYSTEMS: TECHNOLOGY, STRATEGY, AND ORGANIZATIONAL FACTORS(Tues & Thurs, 10-11:30, E51-376 – Similar, but more technical)

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Some RFID HypeRFID AutoID technology has received considerable media attention,

innovation ideas, and controversy.  For example:

"Study shows RFID benefits for retailers. Retailers can expect extensive inventory and labor cost savings from the adoption of radio frequency identification (RFID) technology, but some consumer product manufacturers will face higher costs and delayed benefits from adopting the technology. That is the conclusion of a new report on RFID and the Electronic Product Code (EPC) from global management consulting firm AT Kearney." ( from http://logistics.about.com/b/a/042898.htm )

"Dvorak Slams RFID. It's bad news, claims John Dvorak. Those tiny radio transmitters that promise convenience and flexibility are just another path toward big brother domination. And it's going to get a lot worse. ( from http://ct.eletters.whatsnewnow.com/rd/cts?d=181-480-1-278-107259-23183-0-0-0-1 )

"A Manufacturer of soft drinks can identify with the click of a button how many containers of its soda cans are likely to reach their expiration date in the next few days and where they are located at various grocery outlets. ( from CACM, August 2005, p. 103 )

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What have you heard?Unusual or Intriguing Applications?

• Bank of Nagoya installing RFID-based document management system

• Automatically scan you when you entered classroom – so no need to sign “sign-in” sheet

• • • • •

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The Hype Cycle

Visibility

Time

Technology Trigger

Peak of Inflated

Expectations

Trough ofDisillusionment

Slope ofEnlightenment

Plateau ofProductivity

Source: Jackie Fenn, Gartner Group

RFID Today! (?)

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Some Sources Used for Background Materials (found with assistance of H. Zhu)

• http://wwwx.cs.unc.edu/~sparkst/mobile/rfid/RFID.ppt• http://www.scansource.com/downloads/RFIDWebinar1.ppt• http://www.public.iastate.edu/~ext4mjm/MIS435/RFID-Pre

s.ppt• http://www.scansource.com/intermec/2004_webinars/

Webinar_RFID_July_04.ppt• http://www.fiatech.org/Presentations/texasinstruments.ppt• http://cosmos.kaist.ac.kr/cs492a/midterm2/RFID.ppt• http://www.masoftware.org/download/05-20%20Linster.ppt• http://www.progress.com/progress/exchange/post_2004/

technical_sessions/b1200.ppt• http://www.dodait.com/rfid/SummitApr04/Day1/05-RFID

%20Primer-Kimball-DOD%20RFID%20Industry%20Summit%2029Apr%2004-V2.ppt (DoD slides)

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OutlineBackground (2:35-3:55)• Introduction• RFID Technology

– Comparison with Bar Codes– Example Applications

• Focus on Supply Chain– EPC Tag and EPC Global

• ROI Issues & Challenges• MIT Auto-ID Center Some of Sloan’s Research issues (4:05-5:25)• RFID IT Infrastructure • Challenges to “Data Synchronization”• Role of MIT’s Context Mediation Technology in

addressing the “Data Synchronization” challenge• Discussion

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What is Radio Frequency Identification (RFID)?

Substrate

Tag IC

Antenna

Die attach

- Can be Passive or Active- Can be Read-only or Read-Write

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Some Claimed Advantages of RFID vs. Barcode

• No requirement for line-of-sight• Many tags can be read at the same time• High memory capacity if needed• Dynamic information carrier (read/write)• Robust and reliable• Performs in rugged, harsh environment• Cheaper in long term• No human intervention• Reader virtually maintenance free

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RFID Technology Primer

Adapted fromDan Kimball, DoD Logistics AIT Office

April 7, 2004

PART 1a

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Pre-50’s 1950’s 1960’s 1970’s 1980’s 1990’s 2000’s

RFID TIMELINE

• 1926: Baird’sradio object

detectionpatent

• 1935: Watson-

Watt’s radarpatent

• WW II: Radar refined

• 1st Toll Collection System - Norway

• Texas, Georgia / Oklahoma Tolls

• Wide-scale US Roll-out

• LASL spins-off IDX & Amtech • 1984: IDX/Allen

Bradley install GM System

• Vast number of companies enter RFID marketplace

• 1977: Electronic license plate for

motor vehicles

• 1979: RFID animal

implants

• 1975 LASL releases

research to public sector

• 1991: AAR standard

• 1994: All US railcars

outfitted

• MIT Auto-IDCenter formation • EPC™ introduced • National & international

standards emerge

• 2004: TREAD

•EPCglobal formed 2003

• 1997:US Army rolls out TC-

AIMS II

• 2003: RFID prominent in

Iraqi Freedom

• Smart shelves

• Multiple early

adopter installations

• 1952: Vernon“Application of the Microwave Homodyne”

• Harris patent: “Radio transmissionsystems withmodulatablepassiveresponder”

• Harrington “Active & Loaded Scatterers”

Adapted from Interaction Design Institute RFID Project Presentation - 2002

• 1966: Sensor- matic & Check-

point EAS

• Over 350 direct - reference patents

• 1948: Harry Stockman -

Communications By Means of

Reflected Power

• Fairchild, RCA & Raytheon

initiate pgms

• 2005: Walmartinitial deadline• 1969: Mario

Cardullo RFIDconcept

• 1973: Cardullopatent

RFID: The History

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Technical Aspects of RFID Tag Power Source Tag Components Read - Read/Write Anti-Collision Who talks first? Protocol

Ultimate focus of this SIP activity

Standards? The RFID industry suffered from a proliferation of standards, according to Sue Hutchinson, director of product management for EPCglobal. EPCglobal had two GEN-1 standards, while ISO had two UHF air interface standards. (December 17, 2004)

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RFID Tags Come in Different Forms – Can be attached to almost anything

Class V tags Readers. Can power other Class I, II and III tags;

Communicate with Classes IV and V.

Class IV tags: Active tags with

broad-band peer-to-peer communication

Class III tags:semi-passive RFID tags

Class II tags: passive tags with additional

functionality

Class 0/Class I:read-only passive tags

• Tags can be attached to almost anything:

– pallets or cases of product

– vehicles– company assets or

personnel– items such as apparel,

luggage– people, livestock, pets– high value electronics

e.g., computers, TVs• Many applicationsPrimary focus

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Tag Types: Active

Active: Standard: None, Mainly Manufacturers Proprietary Systems/Protocols Range: Generally 300 Feet or less Battery powered / limited life Used Predominantly in Transportation Systems (rail, toll systems,

trucking, container). Characteristics: Tag with Internal Power Cell Mounted to Item or

container/pallet/box, Interrogator Queries Tags, Uploads/Downloads Data. Does not transmit all of the time. Data Capacity Varies.

RF & RF & Digital Digital

CircuitryCircuitryRF

antenna

BatteBatteryry

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Tag Types: Passive

Passive: Standard: None/many, Mainly Manufacturers Proprietary

Systems/Protocols (uses back scatter technology) Range: Typically Measured in “Inches”, Working Toward “Meters”

(dependant system layout, interference, etc.) Used Predominantly in Retail Systems and Transportation Systems. Characteristics: Small Tag Loaded with License Plate Data Typically Mounted to End Item, Reader Captures Data as Item Moves

Through Choke Point (door, pathway, frame, etc.). Data Capacity Limited.

RF antenna(power source)

Memory(EEPROM)

Digital Logic Digital Logic & Control& Control

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Tag Types: Semi-Active

Semi-Active or Battery Assisted Passive On-board battery power source

Uses Passive Technology (no transmitter) Greater range but higher cost (less than active) Requires less power from reader Finite life Can use thin batteries (little change to form factor)

RFantenn

a

Memory(EEPROM)

Digital Logic Digital Logic & Control& Control

BatterBatteryy

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Tag Types - Read vs Read/Write Read Only:

Information can only be read from an RFID device – programmed at manufacture

User Programmable WORM - Write Once Read Many - Ability to initialize

an RFID device outside of the RFID manufacturer’s facility after manufacture

Read/Write: Information can be read from or written to an RFID

transponder during the time it is presented to a reader/writer

Typically asymmetric read and write operating range

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Technical Considerations Anticollision

Ability to communicate with several transponders simultaneously Important in longer range readers Must be implemented in the silicon of the RFID device

Who Talks First Tag Talks First (TTF)

After the tag is energized, it sends out a signal that says “I am here” Reader Talks First (RTF)

As reader sends out energization signal it says “who is there” Problems

With TTF you can get tag pollution but slower total read timeCompatibility issues?

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Protocol

The method used to talk to a tag

Modulation method

Error correction

Anti-collision technique

Message format

Commands

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Low Frequency (125 – 134 kHz)Used in Access control, livestock, race timing, pallet tracking, automotive immobilizers, wireless commerce

High Frequency (13.56 mHz) – Smart LabelsUsed in supply chain, wireless commerce, ticketing, product authentication

Ultra-High Frequency – UHF (900+ mHz)Emerging technology, applications still in development

Microwave (2.45 gHz)Still highly experimental, chipless technology

RFID Operating Frequencies

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Worldwide Regulatory EnvironmentNorth

AmericaEurope(current)

Europe(future)

Japan(new)

Korea(new)

Australia ArgentinaBrazil Peru

NewZealand

Bandsize

902-928 869.5 866-868

950-956 910-914

918-926 902-928 864-929spotty

Power 4WEIRP

.5WERP

2WERP

4WEIRP

4WEIRP

4WEIRP

4WEIRP

.5 – 4WEIRP

Channels#

50 1 10 12 16 16 50 varied

Class 0Rate

1000 200 200 1000 400 1000 1000 varied

OOBspurious

-50dBc -63dBc+ -63dBc+

-54dBc -50dBc

-50dBc ? ?

No Global Solution – Standards are a Challenge

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Frequency Selection Issues Desired Pattern Required Range Tag-to-Tag Spacing Data Rate Size Requirements Power Requirements Interference Issues Noise Environment Cost / Performance Tradeoffs

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• Read distance requirements• Long read range

• Short read range

• Frequency• All frequencies have their pros and cons

• ISO standards• Proprietary or standards-based

• Government regulations• Varies from country to country

RFID System Considerations

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• Multiple Tag Reading in Same Field• Anti-collision

• Sensitivity to Orientation• A single orientation or omni-directional

• Hardware Set-up• Environment can affect performance• Tag Sensitivity to Metallic environments

RFID System Considerations

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• Stationary or handheld

• Weather-proof or industrialized

• Typical read ranges vary from a few centimeters to a few meters

• Read Range is dependent upon:

• Broadcast signal strength

• Size of broadcast antenna

• Size of transponder antenna

• The environment – Metallic, Liquid

• Multi-frequency readers

Reader Characteristics

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How compare to 2D barcodes

RFID Tag 2D Barcode

Line of sight Not required Required

Capacity Low to high Low to medium

Security High Low to Medium

Change Information?

Yes – Read/Write

NO – new label

Cost (today) $0.40 - $1.00 (in millions)

$0.05 or less

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Barcode Examples – Many types

Maxi-code

UPC A

Code 49Codablock

PDF 417

QR Code Data Matrix

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Current Technology: Bar-coding• UPC A code

– 18 digit alphanumeric code used for identifying flow of package and billing information

– Large database used to support this system – 18 terabytes

• Maxi-code– Determined by the locations of bars around a

central dot– Contains information for the destination address of

the package as well as weight and size specs.– requires special equipment and a stable

environment free from movement to obtain a read of the information

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RFID vs. Bar-coding• Bar-coding Disadvantages

– Code must be clearly readable• free from dirt, smudging or other damage• This is problem with the constant movement of

packages– Code must be in a position that can be easily read by

a scanning device • Optical lasers are usually used for scanning

– Code must be within a short distance to be read• Typically within 3 feet

– Only one code can be scanned at a time– Codes must be a reasonable distance apart

• The use of RFID can eliminate many of the problems associated with bar-coding technology.

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The Future? -- A Hybrid World Traditional bar codes

Will remain the dominant auto ID technology for the foreseeable future Lowest cost, broadest applicability, huge

infrastructure investment 2D bar codes

Will be increasingly adopted for value added applicationsPortable data files, supplementary retail coding etc.

RFID Will be increasingly adopted where non-line of sight,

read/write, multiple detection offers real advantages

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Implementations of RFID

• Retail is the current driving force– Wal-Mart– Target

• Others– Department of Defense– UPS– Other logistics firms

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Things to consider• Price of tags

– Currently about 10 to 50 cents each– If just $0.01, $250,000,000 to tag every P&G product– Chicken and Egg

• Uses– Wal-Mart will be collecting existing data– Many possibilities

• Technology matures– Cheaper and standards

• Privacy (e.g., “RFID chips in world soccer tournament tickets questioned”)– All 2.9 million tickets for FIFA World Cup soccer

tournament in Germany include an RFID smart tag

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RFID in Action …

Buy Burgers at McDonald’s

Pay for Gas at Exxon/Mobil with Speedpass

Check out library books with 3M system

Race timing at most major Marathons

Get a Coke from a vending machine at the Olympics

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Toll tags, parking lot access

Event access, ticketing Anti-theft for automobiles

Building access control, security

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Product authentication

Chip wafer Manufacturing

Warehouse, supply chain, logistics

Livestock, asset tracking

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Electronic Article Surveillance (EAS)Electronic Article Surveillance (EAS) Already exists RFID technology detects if an item is removed from a store without tag being deactivated

Amorphous magnetic strips Destructible tuned circuits

But - Existing technology cannot uniquely identify goods New RFID technology provides significant features:

Able to write SKU number into transponder Automatic inventory with a hand held reader

Anti-collision mandatory for this feature Cash registers can automatically ring up merchandise

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"A Manufacturer of soft drinks can identify with the click of a button how many containers of its soda cans are likely to reach their expiration date in the next few days and where they are located at various grocery outlets.”

( from CACM, August 2005, p. 103 )

• How easy / realistic is this?• What infrastructure must exist?

RFID – Supply Chain Perspective

Adapted from im jae hyoun

PART 1b

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how it works…

Adding Identity to Products

Coke

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how it works…

Adding Identity to Cases:Assembly lineapplications

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how it works…

Reading Tags:

Portal applications:Shipping validation &Confirm routing

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how it works…

-Savant(middleware software forEPC)

-ONS(ObjectNamingService)

-PML(PhysicalMarkupLanguage)

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how it works…

Efficiency in Distribution

43

how it works…

Efficiency in Inventory

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how it works…

Overstocking andOut of Stock Eliminated

45

how it works…

Consumer Convenience

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Some Serious Challenges & limitations… materials and effect on signal

Material Effect(s) on RF signalCardboard Absorption (moisture)

Detuning (dielectric)

Conductive liquids (shampoo) Absorption

Plastics Detuning (dielectric)

Metals Reflection

Groups of cans Complex effects (lenses, filters)Reflection

Human body / animals AbsorptionDetuning (dielectric)Reflection

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Supply Chain Reality

It is happening …

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Flow of Goods

EPC Data Management Infrastructure(Private/public)

RFID in the Supply Chain

Supplier

VMI

ContractM

anuf.

DistributionC

enter

Retail

SC Visibility & Event Management

SC Leader ERP

Who controls?

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Understanding RFID’s Potential

Customer

Returns Hub

Supplier VMI/Inbound Hub

Manufacturing DC/Outbound Hub

Reseller/ Distributo

r

Repair CenterWarranty/Services Revenue

Sample Supply Chain

Out of StockRevenue Collection

Brand Protection

Comp. Inv. Visib. FGI Inv. Visib.

CounterfittingBOM TrackingLot Tracking

Shrinkage

Chargeback

Planning & Synchronization

Shipment VisibilityOperating and Handling Cost

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Making a Case for RFID - ROIAdapted fromGreg DixonChief Technology OfficerScanSource

PART 1c

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Why do people buy RFID?• Traditional Reasons:

– Reduction of direct labor (80%)• Hand-held reader vs. Fixed reader

– Protection and tracking of assets• Animals – Inventory – Tires – Access Control - etc.

– Cost Structure reduction• Out of stock - 7.8% – “walk aways”

– Only technology that will work• When bar codes don’t work

– (dirty / line of sight)

• New Reason:– Mandated

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RFID Timeline (goals)RFID Invented

First UPC bar code

48 - 74 - 79 - 84 - 95 - 99 - 03- 1/04- 4/04- 7/04- 1/05- 6/05- 10/05- 07 - 09 - 13

Livestock RFID

GM RFID

ISO RFID Standards

EPCGlobal started @ MIT

Wal*Mart and DoD announce RFID plans

Wal*Mart pilots begin

Wal*Mart implements 8 suppliers / 21 products

EPCGlobal establishes Gen 2 specs

Wal*Mart deadline to top 134

Wal*Mart 6 DCs and 250 stores

Wal*Mart 13 DCs and 600 stores

All Wal*Mart and DoD suppliers

RFID pervasive

in supply chain

Item class

tagging

Today

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Companies under RFID mandate0 60,000

Wal*Mart / DoD Sunrise date2007

Today

Com

pani

es

Time

Technology Adoption Life Cycle

20,40020,400

9,600

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Two primary concerns for Supply Chain users:

• Concern #1: Return on Investment - ROI

LaborVisibility

SupplyVisibility

DecisionVisibility

DemandVisibility

FewerFaster

More Accurate

Where is the Inventory?

What areCustomers buying?

What do customers

want?

Reduction in costs > RFID technology investment = +ROI

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• Concern #1: ROI – Easier said than done

Tag and Ship - no data integration

Tag and Ship - with data integration

Limited Mfg Adoption - no data integration

Full Corp. Adoption - with data integration

Limited Mfg Adoption - with data integration

“Slap & Ship” = pure cost May be the majority

Link to trading partners

Reduces some real costs

Reduces more real costs

Maximizes cost reduction

Step

s to R

OI

Inve

sted

$$

incr

ease

sPo

tent

ial R

OI i

ncre

ases

Note importance of data integration (addressed in part 2)• Challenging within a large company• Very challenging between/among multiple companies

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60,000mandatedsuppliers

Two primary concerns for Supply Chain users:

• Concern #2: Partnerships Let’s do the math

• One of the largest RFID S.I. (“handle maybe 100”)

• <100 RFID Vendors & S.I.s * - 100 x 50 = 5,000 • Must mobilize >1000 new RFID Solution Providers

just to meet the demand for partnerships

* RFID Journal

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Winners & Losers ?

• AT Kearney study• Retailers benefits

– Reduce inventory by 5%– Reduce store & warehouse expenses by 7.5%– Reduce “out of stock” $700,000 per $1B

• Manufacturers costs– High impact (expensive) v. low impact (cheap)– Low impact: $155M in capital costs

(assuming $.15/tag, 10 year horizon, 12% cost of capital

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What about “closed loop” & Enterprise applications?

• RFID technologies have been available for a decade

• For many applications the tag cost was too high

• Supply Chain volume reduce tag costs• All those applications are still waiting for

an RFID solution

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Edge ServerEdge Server

ERP CRM

Middleware

LightStack

SensorsRFIDReader/encoder

Bar code Scanner

Scale

MessageBoard

Read Failure

PLCPrinter/encoder

Enterprise Level Applications

Re-define the “Edge”of an enterprise

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OutlineBackground (2:35-3:55)• Introduction• RFID Technology

– Comparison with Bar Codes– Example Applications

• Focus on Supply Chain– EPC Tag and EPC Global

• ROI Issues & Challenges• MIT Auto-ID Center Some of Sloan’s Research issues (4:05-5:25)• RFID IT Infrastructure • Challenges to “Data Synchronization”• Role of MIT’s Context Mediation Technology in

addressing the “Data Synchronization” challenge• Discussion