RFID as an enabler of the ubiquitous
Luigi Battezzati Ph.D.
Visiting Professor di Operations al Politecnico di Milano
Osservatorio sulle applicazioni del RFID del Politecnico di Milano
Geneve, Avril, 6th 2005
Features
Features and
and Trends
Trends
Impacts
Impacts on
on
Computers
Computers
and
and people
people
Innovation
Innovation Process
Process
and
and Barriers
Barriers
Luigi Battezzati 2005
- Osservatorio sulle applicazioni del RFID in Italia -
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RFID technologies are ready for changing the world
• Identify individual items
• Line of sight not required
• Store and modify information on transponder
• Stable in variety of conditions
• Read through most non-metals
• RFID transponder costs are dramatically reducing
• Evolution of different types of transponder: active
passive, intelligent….
Luigi Battezzati 2005
- Osservatorio sulle applicazioni del RFID in Italia -
3
RFID is a building block of Distributed Intelligence
1853
1913
1969
2025
2061
Computer
Distributed
Nanotech
Intelligence
2081
Rapid
Adoption
Railway
Textile
1800
1771
1853
1825
1913
1886
Industrial Revolution
Auto
1969
1939
2005
1977
2025
1997
Introduction
of
Technology
Information Evolution
Source: Norman Poire MIT
Luigi Battezzati 2005
- Osservatorio sulle applicazioni del RFID in Italia -
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Features
Features and
and Trends
Trends
Impacts
Impacts on
on
Computers
Computers
and
and people
people
Innovation
Innovation Process
Process
and
and Barriers
Barriers
Luigi Battezzati 2005
- Osservatorio sulle applicazioni del RFID in Italia -
5
Basically RFID changes material flows but it can impact on the information
flows also: the MIS architectures could became really distributed and…
‰
“Old”centralized
‹
‹
‹
‰
MIS architectures
Item identification coupled with object (ex bar code)
Information in Database of MIS coupled with item identification
MIS reliability is necessary for capturing the data changes
“New “Distributed MIS Architectures
Item identification and real time transactions on the object (ex RFID
transponder with memory)
‹ Information in Database of MIS up dated when it's possible and useful
‹ Data communication and data base reliability is not necessary for capturing
the data changes
‹
…so you can saving money and improving MIS reliability in
the same time
Luigi Battezzati 2005
- Osservatorio sulle applicazioni del RFID in Italia -
6
Human RFID interaction is not natural but it could be
helped by a tool friendly for everybody: the mobile phone
Mobile
Phone
Network
Interphace
SMS
Tag RF-ID
Tag RF-ID
Tag RF-ID
RFID
Reader
Tag RF-ID
Luigi Battezzati 2005
- Osservatorio sulle applicazioni del RFID in Italia -
7
Luigi Battezzati 2005
- Osservatorio sulle applicazioni del RFID in Italia -
8
Features
Features and
and Trends
Trends
Impacts
Impacts on
on
Computers
Computers
and
and people
people
Innovation
Innovation Process
Process
and
and Barriers
Barriers
Luigi Battezzati 2005
- Osservatorio sulle applicazioni del RFID in Italia -
9
But the new technology adoption is not automatic….
New Technology
Legitimisation and
Competition
Social Issues and Inn.
Keys to success?
All Adopt the Same Tech.
Loss of Competitive Adv.
Institutionalisation of
New Technology Fad
Technology
Bandwagon
Luigi Battezzati 2005
- Osservatorio sulle applicazioni del RFID in Italia -
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..due to structural and infrastructural barriers:
infrastructural constraints, internal and external pressures*
Constraints of RFID
RFID adoption
External pressure
• Multiple Retailers:
e.g. Wal-Mart
• Competitors
• Legislation: Food Safety
RFID
Performance
Supply Chain Efficiency gains
• Acceleration of product flows
• Option for item level tagging
• Better return flow
• Improvement of data quality
• Increased information accuracy
• Better forecasting and planning
Better consumer offering,
customer service
and promotion
• Less delivery disputes
• Better management of
perishable items
•instantaneous instore promotion
• Lower cost data acquisition
• Smart Appliances
• Lack of standardization
• High cost (RFID, integration,
switching, etc.)
• Critical mass of adoption
• Perceived privacy and health
problems
• Legal issues
• Change management / Lack of
sponsorship
• Skills shortage
• Possible Technology failure
• Partners unwilling to share data
• Possible Sabotage
Cost reduction
• Labor reduction or invest to
perform high value adding activity
• Better perishable management
• Better stock and WIP
management
Transformation of business processes from a central/global frame
work to a distributed world
*Source: Battezzati, Piccirillo Tamminen, Insead, Euroma2004
Luigi Battezzati 2005
- Osservatorio sulle applicazioni del RFID in Italia -
11
Conclusions
•
RFID is not plug and play technology.
•
It’s not about collecting data, it’s about making use of the new
information.
•
It’s about fundamental business change, not about automating
existing processes.
•
Change will be difficult to manage top-down. Innovation spawns
from inside each individual organisation from bottom up.
•
Entrepreneurial organisations should be set up to innovate with
RFID within a larger organisation. Organisational learning will be
crucial to facilitate knowledge diffusion and innovation.
•
Social implications of technology such as privacy concerns and
staff resistance due to deskilling should not be underestimated..
Luigi Battezzati 2005
- Osservatorio sulle applicazioni del RFID in Italia -
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