EPCglobal Update Academic Alliance, MIT, Boston Bernie Hogan 23 January 2006 A look into the past…. INSERT GRAPHIC SQUARE HERE Evolution to EPCglobal From New Technology to Business Standards Auto-ID Center Research and Initial Technology Development (tags, readers) Auto-ID Inc. UCC/EAN Joint Venture Focused on Standards 2004 and Beyond EAN.UCC: Global Standards Development and Governance Auto-ID Labs Focused on Continuing Research Research Slide 3 © 2006 EPCGlobal Commercialization INSERT GRAPHIC SQUARE HERE Future of Auto ID Center • Phase I research reaching conclusion • Time to hand off Version 1.0 to the commercial arm • Only through real implementation will we be able to identify and correct systems issues • Only through mass adoption will we gain the benefits the system offers • Only through implementation we will define the needs for new research • UCC and EAN are our selected commercialization partners Slide 4 © 2006 EPCGlobal INSERT GRAPHIC SQUARE HERE UCC and EAN • Uniform Code Council (UCC) was among the founding sponsors of the Auto ID Center • The EAN.UCC System provides a global language of business for over one million companies in over 140 countries around the world • UCC and EAN have an unmatched track record in the development and implementation of open, global standards • UCC and EAN are uniquely positioned to move EPC research into real world implementation on a global basis Slide 5 © 2006 EPCGlobal INSERT GRAPHIC SQUARE HERE Roles and Responsibility MIT • Research, grad and undergraduate education • Development of new technology • Publish to maintain awareness • Outreach to other universities and research institutions • Government / other funding Slide 6 © 2006 EPCGlobal UCC and EAN • Administration of the system • Commercialization and implementation of EPC • Manage IP • Marketing and communication • Standards development • Training and education INSERT GRAPHIC SQUARE HERE • 2003 Projections Auto ID Inc. must have the following cumulative number of users: – – – – – – Slide 7 © 2006 EPCGlobal 2004 20 2005 40 2006 80 2007 160 2008 320 400 each year thereafter Where we are today….. INSERT GRAPHIC SQUARE HERE EAN is now GS1 Single global organization A product portfolio for today’s business needs and for the future Slide 9 © 2006 EPCGlobal INSERT GRAPHIC SQUARE HERE GS1: a diversified portfolio • GS1 has a full portfolio of products and solutions Global standards for automatic identification Rapid and accurate item, asset or location identification Global standards for electronic business messaging Rapid, efficient & accurate business data exchange The environment for global data synchronisation Standardised, reliable data for effective business transactions Global standards for RFID-based identification More accurate, immediate and cost effective visibility of information Slide 10 © 2006 EPCGlobal INSERT GRAPHIC SQUARE HERE EPCglobal Purpose •Take a global leadership role in developing and promoting multi-industry, user driven standards for collaborative commerce utilising the EPC •To deliver added value to our customers and stakeholders through our activities •Drive the global, multi-industry adoption of EPC via the GS1 Member Organizations Slide 11 © 2006 EPCGlobal INSERT GRAPHIC SQUARE HERE Expanded statement of purpose To act as the trusted authority on technical standards relating to the use of the EPC To effectively manage public policy issues that are relevant to use of EPC Slide 12 © 2006 EPCGlobal INSERT GRAPHIC SQUARE HERE Membership across the world Total # Members % Total Asia 148 20% North America 451 62% Europe 110 15% 8 1% 16 2% 733 100% ME & Africa Latin America Total • Slide 13 © 2006 EPCGlobal Each organization joins once in the location of the head office INSERT GRAPHIC SQUARE HERE Significant growth in all regions • EPC global is only two years old! Jun 2004 Asia Dec 2005 % Increase 21 148 705% 132 451 342% 36 110 306% ME & Africa 2 8 400% Latin America 0 16 - 191 733 384% North America Europe Total • Note: End 2004 = 391 Slide 14 © 2006 EPCGlobal INSERT GRAPHIC SQUARE HERE End users now 53% of total membership 800 700 600 500 400 300 200 100 0 Jun '04 Sep '04 Jan '05 End User Slide 15 © 2006 EPCGlobal Mar '05 Jun '05 Solution Providers Sep '05 Dec '05 Total INSERT GRAPHIC SQUARE HERE Membership growth in all sectors US example • Momentum is developing rapidly in new sectors Consumer Goods 71 Food & Beverage 48 Healthcare & Life Sciences 39 Footwear and Apparel 23 Technology 19 Hardlines 16 Industrial 12 Retail 6 Logistics Slide 16 © 2006 EPCGlobal 5 Aerospace 3 Automotive 3 Chemical 3 Example shows split of EPCglobal US end user membership INSERT GRAPHIC SQUARE HERE EPCglobal Organization EPCglobal Board of Governors GS1 Architectural Review Committee Business Steering Committee Technology Steering Committee Business Action Group - CP Software Action Group Work Groups Work Groups Business Action Group - HLS W ork Groups Business Action Group - TLS Work Groups Slide 17 © 2006 EPCGlobal President, EPCglobal Hardware Action Group Work Groups GS1 US Staff Auto-ID Labs Public Policy Steering Committee Virtual organization > 1500 people Adoption programs – Europe, Asia New action groups – Aerospace , Food & Beverage, Automotive, Apparel INSERT GRAPHIC SQUARE HERE Overview of Standards in Progress, January 2006 Business Requirements Data Exchange (Supports Track & Trace) Internal Systems (Supports Inventory Mgmt, Shipping, Receiving) Object Exchange (Tags /Readers) Development FMCG Data Exchange Prototyping Business/ Technical Approval Board Ratification Certification 5 EPCIS 1.0 ONS 1.0 Drug Pedigree Security X.509 5 ALE 1.0 Tag Data Translation 1.0 Reader Management 1.0 Reader Operations (Protocol 1.2 & ALE 1.1) TDS & TDT Reader Protocol 1.1 5 Item Level Tagging Tag Data Standard v1.1 Tag Data Standard v1.3 Applied Tag Performance 5 - Gen2 - GEN2 Tags & Readers Industry Alignment Reduced Complexity Lower Cost Slide 18 © 2006 EPCGlobal INSERT GRAPHIC SQUARE HERE EPCglobal Board of Governors EPCglobal Board of Governors President, EPCglobal (1) Member Organizations (3) Latin America Europe Far East CPG Mftg and Retail (4) Gillette (Board Chairman) Metro Procter & Gamble Wal*Mart Trans/Logistics (1) DHL Healthcare (2) MIT (1) Consumer Electronics (1) Technology (2) Sony HP Cisco Aerospace (1) Public Sector (1) Lockheed Martin Slide 19 © 2006 EPCGlobal J&J Novartis DoD INSERT GRAPHIC SQUARE HERE EPCglobal research partners – Auto ID Labs • Cambridge - UK • MIT – USA • Adelaide - Australia • St. Gallen – Switzerland • Fudan – China • Keio – Japan • ICU – South Korea Slide 20 © 2006 EPCGlobal INSERT GRAPHIC SQUARE HERE Auto ID Labs Relationship • New organizational structure and leadership for Auto ID Labs • Stronger linkage to Auto ID labs and research planning through: – Sanjay Sarma (MIT) member of Architectural Review Committee (ARC), member of EPCglobal Board of Governors – John Williams (MIT) member of ARC – Elgar Fleisch (St. Gallen) member of BSC (Business Steering Committee) Slide 21 © 2006 EPCGlobal Looking into the future….. INSERT GRAPHIC SQUARE HERE Challenges and Opportunities going forward… • Business Justification – ROI – Use cases • Information Sharing – – – – • • • • • • Proprietary solutions Legacy constraints Lack of trust Existing revenue models for information Alternative Technologies Security Sensors Active Tags Intellectual Property Public Policy Slide 23 © 2006 EPCGlobal INSERT GRAPHIC SQUARE HERE In summary… • EPCglobal community…..from hope to hype to implementation. – The EPCglobal community grows stronger every day – Life is becoming more complex…. but this is a good sign! – Physics and standards challenges are being overcome – Prices are going down – The benefits of “visibility” are starting to be realised – The community has moved decisively from preparation to implementation The The race race for for business business benefits benefits and and competitive competitive advantage advantage is is on!! on!! Slide 24 © 2006 EPCGlobal