The Business of RFID Worldwide.

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Lucy Hampton
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1 The Business of RFID Worldwide

2 Why RFID & RTLS Technologies in the Transit & Rail Industry? Their Use, Adoption, Implementation, & Benefits

3 Presentation Outline About The International RFID Business Assoc. What is RFID & RTLS How are these technologies Different? Business Drivers and Opportunities Industry Examples

4 The International RFID Business Association (RFIDba) A Global Trade Association Dedicated to Your Success with RFID! Founded in April 2004, Launched Sept.2004 Founded by Academicians, RFID Subject Matter Experts and End users Not-for-Profit Educational focus End-User Driven Vendor Neutral Frequency & Technology agnostic all RFID & RTLS technologies Holistic approach to RFID, RTLS, AIDC, Sensors and Wireless technologies Implementation Vertical Industry Consortia

Work Methods Process People - Updated Policy - Business Education - Technical Training RFID deployed with inadequate organizational preparedness - Redefined Work Roles - Revised Work Process -

5 Technology Process People Business Process Driven Performance Improvement Will Your RFID Project Be Successful? EFFECTIVE CHANGE Business Skills & Standards - Inadequate Policy & Procedures - Lack of Education - Inappropriate Training Work Methods - Incorrect Work Process - Misaligned Worker Roles - Incorrect Work Methods Process People - Updated Policy - Business Education - Technical Training RFID deployed with inadequate organizational preparedness - Redefined Work Roles - Revised Work Process - Revised Procedures Automation - System/Network Limitations - Lack of Integration - Inadequate Data Management Technology - Updated Systems & Network People, Process & Technology out of - Integration alignment. - New RFID Technology Longford Consulting Group RFID Applied to Existing Environment RFID Applied to Revised Environment

6 Technology Process People Will Your RFID Project Be Successful? Business Process Driven Performance Improvement EFFECTIVE CHANGE Business Skills & Standards Inadequate Policy & Procedures Lack of Education Inappropriate Training Work Methods Incorrect Work Process Misaligned Worker Roles Incorrect Work Methods Automation System/Network Limitations Lack of Integration Inadequate Data Management Process People RFID deployed as part of a Holistic, comprehensive program of change management & end-user education People, Process & Technology are Aligned Technology - Updated Policy - Business Education - Technical Training - Redefined Work Roles - Revised Work Process - Revised Procedures - Updated Systems & Network - Integration - New RFID Technology Source: Longford Consulting Group gford Consulting Group RFID Applied to Existing Environment RFID Applied to Revised Environment

7 What is RFID? A Wireless Barcode Radio Frequency Identification A method of uniquely identifying items using radio waves A reader communicates with a tag Used to determine Item-Location-Time This Item was at This Location at This Time Reader Who Are You? I am 35S4U96XE

8 The Basic RFID Tag Antenna IC Connection between IC and Antenna Substrate on which the Antenna Resides

9 Types of RFID Tags Aprox. $5 - $200 Cost $$$ Passive Read and Write No battery - powered by RF field Longer life span Least functionality Least expensive Active- 315/433 MHz, 25 to 700 ft. range Battery powered Limited life span Most costly Most functionality/performance Optional: Sensors Semi-Passive Battery assisted - battery used to run the chip's circuitry, but communicate by drawing power from the reader Better read range than passive Hybrid functionality (some sensor) Mid range price Aprox. $.25 - $1.00

10 AN RFID SYSTEM RFID systems use RF (electromagnetic waves) to send energy to an RFID tag (transponder), which in turn emits a unique identification code back to a reader (Data collection device or Interrogator) linked to an IT system. RFID systems effectively utilize two separate antennas - one on the tag, and one on the reader - to accomplish the task of data transfer by radio signals back to the data management system. Collected data from the tag can be sent either directly to a host computer through standard interfaces, or it can be stored in a portable reader and up-loaded later to a computer for data processing.

11 Passive RFID Tag-1 Host Antenna RF Module Reader Tag/Antenna Host Server/Software Printer/encoder or Q-Service

12 Passive RFID Tag- 2 Antenna Microchip Inlay RFID Tag RFID Tag: Consists of a silicon microchip attached to an antenna and mounted on a plastic or other thin film substrate Packaged in a way that it can be applied to an object

13 Active RFID Technology Battery powered tags read up to feet Placed on all High Value Assets Re-usable Tag (Potential Variables $10- $150) 433 MHz, infrastructure, and more Greater granularity = greater investment

14 RTLS Real Time Location System An RTLS tag has a unique identity (Serial Number, MAC address) which allows real time, physical positioning. Positioning is typically by triangulation of the tag within an antenna/sensor infrastructure (think indoor GPS). RTLS can be RFID or other technologies such as : 1) UWB Ultra Wide Band 2) Zigbee 3) Wi-Fi 4) Infrared 5) Ultrasound

15 ASSET TRACKING OF HIGH VALUE EQUIPMENT AND TOOLS VIA RTLS

16 Ultra Wide Band RTLS Tag on Amtrak locomotive

17 SUPPLY CHAIN VISIBILITY REAL TIME TRACK AND TRACE - FARM TO FORK, PRODUCT RECALL ACTIONABLE REAL TIME DATA for rapid business decisions BRAND PROTECTION - e-pedigree /Serialization PORTABLE DATABASE READ & WRITE CAPABILITIES ACCOUNTABILITY, SAFETY MRO & CRM LOCATION BASED AND SOCIAL NETWORKING FOR A GREENER WORLD - RE-CYCLING & WASTE MANAGEMENT QUALITY CONTROL WHY RFID / RTLS?

18 RFID,RTLS & Wireless Networks Access Point Network Category 5/6 Cable Fork Lift Mounted Reader/Antenna Host Computer / Database RFID Tag

19 RFID & RTLS is Different: Part I Dynamic, Real Time Visibility of Buses and Locomotives- not static Read and Write Capabilities 100% Accurate Pervasive Smart Sensory enhanced Physical item to IT Link An extension of your IT network Minimizes manual labor Eliminates data entry errors

20 RFID & RTLS is Different: Part II Links the Digital to the Physical This bottle contains this contents is spoiled Locating and Locations Finding things in REAL time Warehouses, depots, Intermodal yards, etc. Tracking Objects in Motion Goods, conveyances, Work Orders, etc. Handling Choke Point Issues Things Go Wrong Here Environmental Conditions Light, vibration, temperature, moisture, etc. Automatic Routing and Data Flow Chain of custody tracking, object pedigree, etc. Nested Visibility

300 +, Passive 30 Small to Large Data Size Read/Write Always serialized (except EAS) I/O to the world (sensors, computers) Strong Authentication possible (access control,

21 RFID Vs. Barcodes Electronic Device Uses RF Waves RFID Sensitive to EMI, metal, and water Non Line-of-Sight No labor required for read Can be hidden, protected Simultaneous Read Range: Active 300 +, Passive 30 Small to Large Data Size Read/Write Always serialized (except EAS) I/O to the world (sensors, computers) Strong Authentication possible (access control, non-duplication) Printed Symbol Uses Light Barcode Not sensitive to EMI, metal, water Line-of-Sight Required Reading requires labor, except on conveyor w/ reliable label positioning Subject to dirt, abrasion, etc. One-at-a-time Range: 35 if large, 2 if small Small to Medium (2D barcode) Data Size Read-only Usually not serialized No I/O No Authentication, except encryption

22 In Operation Today Transit Yards for Bus and Rail, Intermodal transportation Maintenance MRO, Operations, Scheduling Employee safety in the Rail Yards Security (Containers, Building Access) Defense (e.g. DoD Total Asset Visibility) Manufacturing (Routing, Control, Quality) Warranty, Service and Support Sensing (Cold Chain, etc.) Warehouse/Inventory Store Operations (Promotion Execution) Financial (Smart Cards) Asset Tracking Recyclable containers/pallets, Equipment Brand Protection / Anti-counterfeiting Visibility of the Supply Chain, Global Trace and Track Smart Secure Trade Lanes/Operation Safe Harbor Health Care Patient Safety (SARS, H1, AIDS, etc.)

23 Conclusions RFID & RTLS Technologies serve a REAL need in today's Transit and Rail industries RFID & RTLS solutions are broad RFID has a proven history of value Business processes need to be thought through before implementing either RFID or RTLS or Both RFID & RTLS education is a must

24 THANK YOU! A GLOBAL TRADE ASSOCIATION DEDICATED TO YOUR SUCCESS WITH RFID & RTLS hpappas@rfidba.org

28 RFIDba CONSORTIA RFID in Healthcare Consortium RFID in Tires Consortium RFID in Construction Consortium RFID in Retail and Specialty Retail Consortium Animal RFID Consortium RTLS Users Alliance Under Development (UD) RFID in Pharmaceuticals Consortium (UD) RFID in Cold and Cryogenics Supply Chain Con. (UD) More under development

29 The RFIDba Philosophy: Take a Holistic, Systems, Approach to RFID/RTLS EDUCATION, EDUCATION, AND MORE EDUCATION ERP, MRP & WMS Software Middleware Wireless- Bluetooth, Zigbee, Wi-Fi, Wi-Max, Satellite, Cellular AIDC Sensors GPS Biometrics RTLS, Rubee, UWB, BAP, Smart cards

RFID: Part I Types of Tags Aprox. $5 - $200 Cost $$$ Aprox. $.25 - $1.

range Battery powered Limited life span Most costly Most functionality/performance

circuitry, but communicate by drawing power from the reader Better read range than

30 RFID: Part I Types of Tags Aprox. $5 - $200 Cost $$$ Aprox. $.25 - $1.00 Active- 315/433 MHz, 25 to 700 ft. range Battery powered Limited life span Most costly Most functionality/performance Optional: Sensors Semi-Passive Battery assisted - battery used to run the chip's circuitry, but communicate by drawing power from the reader Better read range than passive Hybrid functionality (some sensor) Mid range price Passive Read and Write No battery - powered by RF field Longer life span Least functionality Least expensive

31 RFID: Part II Antennas & Readers Antennas- A device for sending and/or receiving electromagnetic waves Fixed Readers - An electronic device that can act as both reader and programmer for an RF tag at a distance from it, specifically, while the tag remains attached to the object it identifies Mobile Readers portable, wireless readers operating with Bluetooth or X

Readers An RFID Tag picks up signals from and sends signals to a Reader Air Interface Protocol Handheld RFID Tag Antenna Reader Reader A device used to communicate with RFID tags Readers types:

32 Readers An RFID Tag picks up signals from and sends signals to a Reader Air Interface Protocol Handheld RFID Tag Antenna Reader Reader A device used to communicate with RFID tags Readers types: handheld, vehicle mounted, fixed, etc. Attaches to an antenna on one side and to a network/system on the other Fixed Air Interface Protocol The rules set that governs how tags and readers communicate

33 Readers and Antenna Portals Typical configuration of a reader and multiple antenna Antenna Tcan be linear or circular y p Configuration i for maximizing c tag reads a Typically l angled toward receiving area Reader turned on by motion detectors

34 RFID: Part III - Software Middleware- software that connects readers with ERP and legacy systems. This software sits between the RFID reader and conventional middleware. Middleware facilitates communication between the enterprise systems and a variety of automatic identification devices RFID readers and bar code scanners. In the short term, companies will need to implement middleware architecture for successful RFID operations.

35 EPC = Electronic Product Code A Global Network The Internet of Things : REAL Time Visibility via the Internet Where was the product produced and by whom? Where is the product right now? Where is the product going? How many are in the warehouse and how many on the shelf? Who bought the product? (For Pharmaceutical or Food supply re-calls)

36 Enterprise Applications Enterprise Applications ERP WMS TMS etc. RFID Tag Antenna Reader Middleware System Readers are usually linked to systems running enterprise applications The data collected from a tag is sent to an enterprise application for processing; data may also be sent back to tag to be written to its microchip Data collected from a tag can also be stored in a portable reader and uploaded later for processing

37 Warehouse RFID Touchpoints RFID Tags & Reader/Writers Access Points Fixed/Vehicle Mounted Network & Device Management Bar Code Printers w/rfid Tag Interrogators \ Hand-held Computers Back Office PocketPC and Tablet XP Computers With WWAN, WLAN, Bluetooth and GPS Solutions

38 Convergence of Forces Internet Adoption Critical Mass Wireless Infrastructure Critical Mass Smallsmartfast Device Size/Cost/ Intelligence Critical Mass

39 Applications with an ROI: Access Controls Anti-theft retail & automotive Asset tracking- High value, Re-useable totes Shipping containers, Inventory Payment toll road collection, gas payment, parking, micro payments Supply chain Mgmt. Track and Trace Books, Apparel,Food Pharmaceuticals Parts tracking, pets,prisoners, patients

40 Challenges to Adoption Manufacturing Capacity issues (will be solved over time) ISO vs. EPC vs. Industry vs. Global Standards and mandates Compliance mandates vs. ROI Integration with ERP & WMS systems Global interoperability and integration Packaging lessons are beginning Some legacy apps not RFID ready- can they scale Understanding the People and Business process Privacy concerns for item-level tagging

41 In Summary: As in any new technology, Education is important! The Technology is changing rapidly Select the technology that meets your needs Follow the development of Standards as they are evolving Make sure your business processes are in order before you start Outline the objectives clearly and set attainable timelines Do an RFID site survey of your facility before you start Have all the stakeholders on the same wavelength, including management,before you start ROI is a function of problem definition and execution RFID is a complementary technology to your existing system Take a Holistic approach to the implementation

42 IS RFID IN YOUR FUTURE - THE RFID WORLD - IN TEN YEARS HOME GATEWAYS TO THE WORLD VIA INTERNET 2 CABLE, SATELLITE, WIRELESS THE INTERNET OF SMART THINGS UBIQUITOUS SENSING NETWORKS M- RETAILING & SHOPPING VIA NFC DEVICES DUMB EQUIPMENT WILL BECOME SMART MACHINERY WITH RSW A GLOBAL NETWORK OF VENDOR, PARTNER, TRADING PORTALS FLEXIBLE / PRINTABLE/CHIPLESS NANO ELECTRONICS

47 The International RFID Business Association Mission Statement 1) To provide vendor neutral, University level, HIGH Quality, educational programs in RFID, RTLS, AIDC, Sensors, and wireless technologies to the end user community around the world in specific vertical industries. 2) To deliver these programs through partnerships with academia, the RFID industry, end users, and government. 3) To provide its members with valued-added business services that help in the successful implementation of RFID technologies. 4) To foster programs that help educate government officials on RFID technologies for the formation of sound public policies on privacy, security, workforce training, certification and international trade.

48 RFID: Part I Active Tags: operate with a battery in the 315/433 MHz, 25 to 700 ft. range Passive tags: No battery, Read, and R/W LF,HF,UHF,Microwave,Ultra wide Band Semi-Passive Tags: Semi-passive tags use a battery to run the chip's circuitry, but communicate by drawing power from the reader

49 The International RFID Business Association RFIDba s Education Reference Model TM Curriculum Map * Copyright & Trademark of RFIDba

50 SUPPLY CHAIN VISIBILITY REAL TIME TRACK AND TRACE - FARM TO FORK, PRODUCT RECALL ACTIONABLE REAL TIME DATA for rapid business decisions BRAND PROTECTION - e-pedigree /Serialization PORTABLE DATABASE READ & WRITE CAPABILITIES ACCOUNTABILITY, SAFETY MRO & CRM LOCATION BASED AND SOCIAL NETWORKING FOR A GREENER WORLD - RE-CYCLING & WASTE MANAGEMENT QUALITY CONTROL WHY RFID / RTLS?

Conclusions RFID supplies a need in today's

both locally and globally for solution success

51 Conclusions RFID supplies a need in today's global business RFID solutions are broad RFID in many industries has a history of value Business processes need to be thought through both locally and globally for solution success RFID knowledge is not pervasive thorough education is a must

52 A STRATEGIC ALLIANCE DEDICATED TO THE SUCCESSFUL ADOPTION AND IMPLEMENTATION OF RFID, RTLS, SENSORS, and WIRELESS TECHNOLOGIES THROUGH HIGH QUALITY, VENDOR NEUTRAL, EDUCATIONAL PROGRAMS AND VALUE-ADDED BUSINESS SERVICES

53 Challenges to Adoption Manufacturing Capacity issues (will be solved over time) ISO vs. EPC vs. Industry vs. Global Standards and mandates Compliance mandates vs. ROI Integration with ERP & WMS systems Global interoperability and integration Packaging lessons are beginning Some legacy apps not RFID ready- can they scale Understanding the People and Business process Privacy concerns for item-level tagging

54 Nested Visibility- (Parent/child)

55 The International RFID Business Association On the Go, around the world, Delivering, University Level, High Quality, Relevant, Industry specific, educational programs to End users at conferences and trade shows in co-operation with major universities in: Australia Brazil Canada China Europe India Malaysia Mexico & Caribbean Middle East Singapore UK USA

56 History of RFID: Greeks- magnetite Ben Franklin- 18 th century-electricity Michael Faraday-1846 EME Marconi-1896 radio waves Friend or Foe WW II Harry Stockman RFID lab experiments RFID field trials very early adopters commercial applications, electronic toll collections MIT Auto-ID labs, EPC Standards mandates,supply chain apps.

57 RFIDba CONSORTIA RFID in Healthcare Consortium RFID in Tires Consortium RFID in Construction Consortium RFID in Retail and Specialty Retail Consortium Animal RFID Consortium RTLS Users Alliance Under Development (UD) RFID in Pharmaceuticals Consortium (UD) RFID in Cold and Cryogenics Supply Chain Con. (UD) More under development

58 The International RFID Business Association DELIVERING: QUALITY,VENDOR NEUTRAL EDUCATIONAL PROGRAMS TO THE END USER COMMUNITY ON RFID AND RTLS on

59 TYPES OF RFID & RTLS TAGS Passive tags: No battery, Read, and R/W LF, HF,UHF, Microwave Active Tags: operate with a battery in the 315/433 MHz, 25 to 700 ft. range RTLS Real Time Location Systems- UWB, ZIGBEE, Wi-Fi Technologies Semi-Passive Tags: Semi-passive tags use a battery to run the chip's circuitry, but communicate by drawing power from the reader

60 AN RFID SYSTEM RFID systems use RF (electromagnetic waves) to send energy to an RFID tag (transponder), which in turn emits a unique identification code back to a reader (Data collection device or Interrogator) linked to an IT system. RFID systems effectively utilize two separate antennas - one on the tag, and one on the reader - to accomplish the task of data transfer by radio signals back to the data management system. Collected data from the tag can be sent either directly to a host computer through standard interfaces, or it can be stored in a portable reader and up-loaded later to a computer for data processing.

Module 7 Evaluation and Selection

Module 7 Evaluation and Selection RFID systems can be made up of many different components, standards and differing RFID technology; any combination of which can have different performance, cost and implementation