The Advocate: RFID is crossing the chasm now, and will get to mainstream over next year or two! Joe White, COO What does it mean to “Cross the Chasm”? Technology must be proven and no longer in question Early Adopters have achieved their vision delivering clear ROI’s Application must be well defined and products fit their needs Solution must be easy to integrate Early Majority wants to enhance their existing processes with the technology (different than the Early Adopters who are often willing to build the solution ground up) Technology must be considered ‘industry standard’ Where are we now? - Technology Adoption Lifecycle The characteristics of market adoption The Early Market The Mainstream Market Small Scale Pilots & Migration to Gen 2 • Metro • Hong Kong Airport • McCarran Airport • Purdue Pharmaceutical • Abercrombie & Fitch 1•stSam’s Generation Club Technology • Boeing •• MIT Labs Airbus •• Wal-mart Impinj • Gillette • P&G • Alien • Matrics Now Expanded Rollouts & Certain Apps move to Mainstream • Metro • Sam’s Club • American Apparel • Boeing • Airbus • DISA • Wal-Mart Expansion •NASA Kennedy Space Center • Falabella • Willis Lifestyles •……….. The Chasm Innovators Early Adopters Gen 1 Gen 2 Early Majority Class 3 - BAP Late Majority Laggards Gen 3 In fact the list of adopters is long…… Supply Chain Retail • • • • • • • • • • • American Apparel Falabella Jones Apparel Group Kimberly-Clark Liverpool New Balance Staples Walgreens Wills Lifestyle • • • • • • • • • • • Energy/ Utilities • • • • • • • Aker Yards Duferco Qatar Gas Sempra Energy Tejas Tubular Tenaris Vale Inco Daimler Trucks Dairy Farmers of America Exel H & M Bay Inc. IGPS KPN Lexar Megatrux Inc. Raytheon UPS Van Ness YCH Yodabashi IT Asset Management • • • Top 3 Financial Services Co. Top 5 Financial Service Co. Top 5 Healthcare Services Co. Aviation / Baggage Tracking Asset Management • • • • • • • • • • • • • • • • • • • • Aker Yards Alameda County AMT – Montreal Transit Authority ATI – Wah Chang Canadian Rail Correos Cost Plus World Market Crown FEMA Howard County, MD Kimberly Clark Kraft Madison Abstract San Bernardino Cty, CA Shoppers Drug Mart Sun Microsystems SVG U.S. Courts • • • Boeing British Airports Authority Hong Kong International Airport Lufthansa McCarran International Airport Food / Cold Chain • • • • Dole Hawaii Dept. of Agriculture Ingersoll Rand Kroger Manufacturing • • • • • Dow Corning Endwave Handleman Company Mitsubishi Electric Volkswagen Where are we now? - Technology Adoption Lifecycle The characteristics of market adoption The Early Market The Mainstream Market Applications will cross one at a time! • Asset Tracking • Retail Item Level – Fashion • Asset Tracking • Supply Chain • Cold Chain/ Perishables • Aviation MRO & Baggage Handling Now What will be first??? The Chasm Innovators Early Adopters Gen 1 Gen 2 Early Majority Class 3 - BAP Late Majority Laggards Gen 3 The Signs of Broad Industry Adoption RFID Technology is going away in favor of RFID Solutions/ Applications How far does the tag read? How many Tags per second? Does Gen 2 work? Stand alone technology is going away in favor of RFID embedded Introduction of Gen 2 silicon (Stable standard!) Generic RFID Readers are being replaced with Application Specific form factors ‘fixed readers’ vs. forklift, in-store retail, POS, warehouse, etc Clear ROI in focused applications RFID Item Level in Retail Fashion (Apparel, Footwear, and Jewelry) Asset Tracking (IT, Oil & Gas, Reusable Containers, etc) Closed loop systems IT driven RFID initiatives to validate technology is moving to Store Operations driven and implementations based upon business value. Customers are planning chain wide rollouts!!!!! Supply Chain Management Asset Management 2009 and Beyond Retail Item Level Visibility Cold Chain - Perishables Aviation/Baggage Tracking Leading Markets/Apps Transp. & Logist. Manuf. Here and Now Govt. Aggressive Growth in Defined Markets Retail “The Advocate: RFID is crossing the chasm now, and will get to mainstream over next year or two!” Questions