RFID and the Internet of Things

Transcription

1 RFID and the Internet of Things 莊裕澤 Dept. of Information Management National Taiwan University Feb, /2/26 1

2 Outline Introduction EPC Global Network Security and Privacy Concerns Applications Supply Chain Management Logistics and Inventory Smart Campus Postal and Carrier Services Medicare EasyCard and NFC Case Study---Wal*Mart /2/26 2

3 RFID (Radio Frequency IDentification) An automatic identification method, relying on storing and remotely retrieving data using devices called RFID tags or transponders. RFID tags can be attached to or incorporated into a product, animal, or person for the purpose of identification using radio waves. Technology has been developed since World War II. The main driving force is Wal-Mart, which demanded its top 100 suppliers to apply RFID labels to all shipments starting Jan 無線射頻識別資料 /2/26 3

4 Basic Components Basic Components: Tag (Transponder): data carrier small paper-thin labels (tags) consisting of a small silicon chip (less than 2 mm sq) with an integrated antenna. Passive Active: use a tiny battery Reader (handhold or stationary) System software /2/26 4

5 Tag Basic types: active vs. passive Memory Size (16 bits kbytes +) Read-Only, Read/Write, or WORM Arbitration (Anti-collision) Ability to read/write one or more tags at a time Frequency : 125KHz GHz Physical Dimensions Thumbnail to Brick sizes Incorporated within packaging or the item As of 2006, Hitachi has developed a passive device of size 0.15x0.15mm (excluding the antenna), 7.5-micron-thick improved to 0.05 x 0.05 mm, Feb /2/26 5

6 Tag (contd.) Chipless RFID tags contain no chip or electronic circuit store information in the electromagnetic materials that comprise the tag. Lower cost Lower data capacity (32 bits to a few hundreds) Tags made of polymer semiconductors ( 聚合物半導體 ) are currently develpoed by Philips and PolyIC roll printable like a magazine /2/26 6

7 Tag Market Size Price ($0.50 to $150) reduced to 12.9 cents apiece by Alien Technology in Sep, 2005 now available in the 5-cent target from SmartCode in 2006 (in quantities of 100 million tags) Source: Auto ID Center / EPCglobal, 2006 /2/26 7

8 Tag Components Chip Antenna CPU CPU I/O I/O RAM ROM RAM ROM Radio Radio Tx/Rx Tx/Rx Pwr Supply /2/26 8

9 RFID Reader 高頻 固定式 Active 手持 Passive 式 低頻 /2/26 9

10 Coding System for Products Bar Code First patent in Commercial use first appears in 1966 not successful until the 1980s Universal Product Code (UPC) encodes 12 decimal digits cost about $0.005 to implement a barcode, compared to $ per passive RFID tag. Source: Wikipedia /2/26 10

11 Coding System for Products (contd.) 2D barcode, lots of variants, e.g., PDF417 the most common 2D barcode, originated by Symbol Technologies, now Public Domain. up to 1100 bytes or 1800 ASCII characters can be encoded Ps. New high-density 2D barcode can encode 440bytes/cm 2 MaxiCode created by United Parcel Service (UPS), now public domain PDF417 MaxiCode /2/26 11

12 Coding System for Products (contd.) QRCode (Quick Response Code) Developed by TOYOTA subsidiary Denso Wave for car parts management, now public domain. Capacity: 2,953 bytes (4,296 Alphanumeric char) designed to llow its contents to be decoded at high speed can encode a URL, text or a phone number de-facto standard for Japanese cell phones. allow eye-catching images of logos to be incorporated Source: /2/26 12

13 RFID v.s. Barcode 功能條碼 RFID 讀取數量條碼讀取時只能一次一個可同時讀取多個 RFID 標籤資料 遠距讀取讀條碼時需要光線 RFID 標籤不需要光線就可以讀取或更新 資料容量儲存資料的容量小儲存資料的容量大 讀寫能力條碼資料不可更新電子資料可以反覆被覆寫 (R/W) 讀取方便性 資料正確性 堅固性 條碼讀取時需清晰 條碼需要靠人工讀取, 所以有人為疏失的可能性 當條碼污穢或損壞將無法讀取, 即無耐久性 智慧型標籤可以很薄且如隱藏在包裝內仍然可以讀取資料 RFID 標籤可傳遞資料作為貨品與保全 RFID 標籤可在嚴酷 惡劣與骯髒的環境下仍然可讀取資料 高速讀取移動中讀取有所限制可進行高速動讀取 But RFID is not likely to replace barcode in the near future. /2/26 13

14 Evolution of RFID /2/26 14

15 Primary Frequency Ranges 125 KHz 133 KHz MHz 433 MHz 868 MHz 915 MHz 2.45 GHz 5.8 GHz LF HF UHF Microwave For each frequency, operating characteristics and regulations differ, making each frequency appropriate for particular applications As RFID matures, narrowly defined applications are moving toward specific frequencies standardization involves determining operating frequencies /2/26 15

16 Comparison (contd.) Frequency Regulation Range Data Speed Comments Animal identification and khz Basically unregulated 10 cm Low factory data collection systems MHz ISM band, differing Popular frequency for Low to power levels and duty < 1m I.C. Cards (Smart moderate cycle Cards), Libraries 433 MHz Container Security and Non-specific Short Tracking. Asset tracking Range Devices (SRD), m Moderate for U.S. DoD (Pallets) - Location Systems Active MHz ISM band, increasing MH (RTI), use in other regions, Moderate to 2 5 m AIAG B-11 (Tires), EPC, differing power levels high c, DoD Passive and duty cycle ISM band, differing 2.45 & 5.8 IEEE b, power levels and duty > 2 m High GHz Bluetooth, Cordless Tel cycle /2/26 16

17 Comparison (contd.) Lower frequencies have low energy, thus transmit data more slowly and range is limited. Tag antenna size is typically quite large. High frequencies have more energy and thus can be used for long range applications. A beam is involved, so it can be used for locating a smart label in three dimensions. High frequency beams are more easily stopped, however. /2/26 17

18 Some Facts about Supply Chain Tier-3 suppliers distributions S 1 Tier-2 R 1 W 1 S 1 Tier-1 warehouses retailers W 1 S 1 D 1 S 2 S 2 S 2 D 2 S 3 OEM W 2 D 3 W 3 R 2 $1 of Retail Sale S 3 S 3 Service Providers R 3 14 cents 9 cents 34 cents Inventory 11 cents Of $3.2 trillion of retail sales, $1.1 trillion are locked as channel inventory 8.2% of shoppers will fail to find their product in stock. Stock-out events represent 6.5% of all retail sales. Retailers will still suffer net lost sales of 3.1% (Source - U.S. Commerce Department, 2002) /2/26 18

19 Supply Chain is the Key Iusse Enterprises now compete on Supply Chains, not Manufacturing Prime goals: Reduce channel inventory, reduce stock-outs, optimize movement Reducing uncertainty in supply chain leads to better performance Integrate, t integrate t and dthen some more Start with demand and then link backwards Collaborate within your supply chain /2/26 19

20 Factors behind Inefficiency Demand Uncertainty Short Product Life Cycles Frequent Promotions Seasonality Increased Product Variety Growing Number of Categories Growing Number of SKU s ( Stock Keeping Units ) Global Sourcing Cycle Time Pressure /2/26 20

21 Managing the Supply Chain To control You must evolve in stages Delivery Speed Connectivity Delivery Cost Communication Quality Collaboration Visibility Optimization Execution Speed Without uniform product identification across the supply chain, it is not possible /2/26 21

22 EPCglobal Network EPCglobal Formed in October, 2003 as the successor organization to the MIT Auto-ID Center, the original creator of the EPC (Electronic Product Code) technology To support the EPC as a global standard to enable accurate information and visibility about products in the supply chain. To create both a world-wide standard for RFID and the use of the Internet to share data via the EPCglobal Network. Board Member Firms (see updated) Cisco, DHL, Gillette, Hewlett-Packard, Johnson & Johnson, Metro Group, Procter & Gamble, Wal*Mart, Lockheed Martin, Sony, Dow Chemicals, US DOD ISO Standards to -7 /2/26 22

23 Fundamental Elements of EPCglobal Network Electronic Product Code (EPC) ID System (EPC Tags and Readers) Object Name Service (ONS) A lookup service to link an EPC to corresponding page ( Object Home Page ) with the data about the object. Physical Markup Language (PML) A language, based on XML, to describe any physical object a.k.a. Product Markup Language g Savant software technology that acts as the central nervous system of the EPCglobal Network e.g., for object querying /2/26 23

24 EPC (Electronic Product Code) A numbering scheme to identify physical objects EPC-64 (64 bits) (used in previous generation) Type-I, Type II, Type III, EPC-96 (96 bits) (used in EPC Gen 2) EPC-64 Type I Element Header EPC Manager Object Class Serial Number Bits Range 4 2,097,152 13,172 16,777,216 Type/Version company IDs product IDs item IDs EPC-64 Type II Element Header EPC Manager Object Class Serial Number Bits Range 4 32, ,179,869,184 /2/26 24

25 EPC-96 EPC-96 Type I Element Header EPC Manager Object Class Serial Number Bits Range ,435,456 16,777,216 68,719,476,736 /2/26 25

26 Integration with GTIN (Global Trade Identification Number Information) An Example of How GTIN Integration Could Work With the EPC Illustrative Example (EAN-13): EAN Company Prefix Item Reference Check Digit ) > Remove Check Digit EPC: Header EPC Manager Number Object Class Number Serial Number GTIN UPC cannot tell which specific item of a product is. Why Wyssea is serial number important? potat? /2/26 26

27 EPC Tag Class Structure In EPC terminology, Class describes a tag s basic functionality. Generation refers to a tag specification's major release or version number. class V Wireless networked readers class IV Active tags class III Semi-passive tags class II Rewritable passive tags class I Write Once, Read Many (WORM) passive tags (96 bit min) class 0 Read only passive tags (64 bit) /2/26 27

28 EPC Gen2 EPC Gen2 (EPCglobal UHF Class-1 Generation-2 UHF RFID Protocol) A communication protocol for readers and tags designed to work internationally. Initiated October 2002 by MIT Auto-ID Center Specification Completed by EPC Global in 2004, adopted by ISO C in likely to form the backbone of passive RFID tag standards Speed (depends d on regulation, which h differs from area to area) Write: about 7 tags/sec (versus 4 in Gen 1) Read: about 1,000 tags/sec (versus 300) Security: 32bit password in the tag Under US regulations (FCC Part 15 (US): MHz), allows up to 20 readers to operate simultaneously. Under EU regulations (ETSI 208 (EU): MHz), allows up to 9 readers to operate simultaneously. Tags now available for 7 to 10 cents (2008). /2/26 28

29 EPC Information Services (EPCIS): Motivation What a local information system for RFID will do? How to promote this concept to global?? Why need to do so? DB DB reader reader reader tag tag tag tag tag tag /2/26 29

30 How does EPCIS Data Sharing work? Source: EPCglobal Today, trading partners know each other through pre-arrangement Future: discovery services to find partners /2/26 30

31 EPC Network /2/26 31

32 EPC Network: Illustration VeriSign is selected in 2004 to operate root directory EPC Network source: VeriSign Manufacturer Retailer The EPC Network has four key components: Root ONS (Object Naming Service) Local ONS EPC Information Service EPC Discovery Service /2/26 32

33 EPC Network Life Cycle EPC Network Manufacturer Retailer /2/26 33

34 EPC Network Life Cycle (contd.) EPC Network Electronic Product Code urn:epc:1: urn:epc:1: Syntax 4 th level 3 rd level 2 nd level Top level 1 Manufacturer Domain Name EPC ds vnds. verisign onsepc Retailer. com com 1. EPC lifecycle begins when a Manufacturer tags Manufacturer the product ID identifies supplier as Gillette Object (product) Class identifies as Mach 3 razor (12 pk) /2/26 34

35 EPC Network Life Cycle (contd.) EPC Network Manufacturer Retailer 1. EPC lifecycle begins when a Manufacturer tags the product 2. Manufacturer records product information (e.g., manufacture date, expiration date, location) into EPC Information Service 3. EPC Information Service registers EPC knowledge with EPC Registry /2/26 35

36 EPC Network Life Cycle (contd.) EPC Network 6 5 Manufacturer 4 Retailer 4. Manufacturer sends product to Retailer 5. Retailer records receipt of product into EPC IS 6. Retailer s EPC IS then registers product knowledge with EPC Discovery Service /2/26 36

37 EPC Network Life Cycle (contd.) EPC Network Retailer Application 8 7 Manufacturer Retailer 7. If Retailer requires product information, Root ONS is queried for location of Manufacturer s Local ONS 8. Manufacturer s Local ONS is queried for location of EPC-IS /2/26 37

38 Object Name Service Object Name (encoded by a tag) urn:epc:1: urn is part of URI (which includes also URL) urn:isbn: (for book naming system) urn:doi:10.555/music-pop-1234 (for Digital Object Identifier) Where is the IS for the object? ONS operates like Internet s Domain Name Service (DNS) take EPC code and returns the URL of the local EPC IS where all information about that object resides. /2/26 38

39 DNS Name Servers Provide name-to-address mapping service. Individual servers contain all of the information for large portions of the naming hierarchy. Very few servers need to be contacted when resolving a name Root server is replicated Root server Com Edu Net Gov Mil server server server server server IBM server Intel server ntu server Nsf server ib server im server ba server /2/26 39

40 EPC Network Life Cycle (contd.) EPC Network Retailer Application 9 Manufacturer Retailer 9. Retailer queries Manufacturer EPC IS for desired product information (e.g., manufacture date, expiration date, etc.) /2/26 40

41 EPC Network Life Cycle (contd.) EPC Network Retailer Application EPC Trust Services Manufacturer Retailer EPC Trust Services ensure the security of product data by managing access rights (authentication and authorization) to the EPC IS /2/26 41

42 EPC Network Life Cycle (contd.) Enterprise-wide Repository EPCIS EPCIS Capture EPCIS Query Trading partners Retail Store Dist Center Retail Store Rdr Mware App /2/26 42

43 EPCIS can work with any data carrier Product Identification may come in the form of: Passive RFID Tag UHF Gen 2, HF Barcodes Linear, Data Matrix Active RFID Tag Human Readable Number And more in the future! /2/26 43

44 EPC Events EPCIS standard defines 4 standard XML events: Object Event, Quantity Event, Aggregation g Event, Transaction Event. Events basically answer the following questions What EPC number (can leverage erage master data -GTIN) Manufacturing Data (lot, batch, expiration date) Transactional Data (PO, Shipment, Invoice) Where Location (can be fixed or moving leverage master data -GLN) When Event Time Record Time Why Business Process Step, e.g., Receiving, Shipping Product State, e.g., Saleable, Active, In Transit Current Conditions, e.g., Temperature /2/26 44

45 EPCIS Status 1.0 Specification was ratified in April 2007 Conducted successful Interoperability Event with 12 global participants in July 2006 Conformance Testing to begin in July 2007 Discovery Services & Subscriber Authentication to be implemented in 200? /2/26 45

46 EPCIS Vs. EDI EPCIS standard provides a way to share high volume, very fine grain information about material movement and status among cooperating partners. EPCIS does not address purchasing, forecasts, bidding, billing, etc. that are typically exchanged via EDI in a business transaction between two parties. /2/26 46

47 EPC Product/Solution Chain Strategy/ Consulting Hardware Middleware/ Device Mgmt Network Services Data Enterprise SynchronizationApplication & Data Integration Aggregation Business Applications System Integration and Solution Delivery Business Process Integration Best Practices Solution Framework Tags Readers Label Printers Savant Event Monitoring Device Health Root ONS Managed ONS Hosted EPCIS EPC Discovery Service EPC Trust Services Catalog Management UCCnet Global Registry ETL Services Legacy Application Integration Global Data Synchronization (GDS) ERP Warehouse Management Retail Management Distribution Management /2/26 47

48 Some Benefits of RFID Increasing Revenue and Market Share 29% increase in promotional execution Increase Revenue resulting in 20% - 60% increase in sales Sell Higher Margin Products 63% quicker elimination of out-of-stocks (shortage) Decrease Time-to-Market 30% reduction in stock-outs (lost sale) Attack New Markets Decreasing COGS & Operating Costs Accounts payable reduced from days minutes 100% data verification 10% reduction in manual orders 20% efficiency increase for Ballantine Produce savings of 25% Increasing Asset Utilization Pallet build reduced from 90 seconds 11 seconds 7.5% reduction in warehouse costs Reduce Inventory Reduce Logistics Expense Reduce Direct Materials Expense Reduce Indirect Materials Expense Increase Asset Utilization Reduce Procurement Expense Reduce Selling Expense Reduce R&D Expense 1-February 18, 2006: RFID Update - Recap of the RFID ROI Summit 2-ibid 3-January 2006: rfidwatch - transmissions from the RFID front lines 4-January 31, 2006: RFID Update: Gillette RFID Mastermind Shares Secrets 5-March 17, 2006, Baird Research 6- June 13, 2005: RFID & Wireless News: Ballantine Produce s RFID Vision 7-August 2005: World Trade Magazine - RFID: Taking Stock of the Wal-Mart Pilot : Proceedings of the 2005 Southern Association for Information Systems Conference /2/26 48

49 What s been happening 1,000 Wal-Mart stores will use EPC/RFID by June 2007, along with 600 of their largest supplier companies to track cartons & pallets 32% Reduction in out-of-stocks at the shelf 62% Reduction for faster moving items OOS (out-of-stock) for EPC tagged products replenished 3 x faster Manual orders reduced by 10%.. More to be followed in the case study. /2/26 49

50 What s been happening (contd.) Hi Heineken is using EPC/RFID to speed up customs processing by tracking 10 containers loaded with beer as they travel through Europe. Procter & Gamble saw a 20% uplift in sales in its first RFID-enabled new-product launch this year. /2/26 50

51 What s been happening (contd.) Mt Metro Group (the fourth largest retailer in the world) will roll out dock-door RFID receiving gates across 150 locations by mid Potential savings 8.5M Euro (in Germany) from RFID tagged pallets through goods exit gate. UK retailer Marks & Spencer has expanded its item- level RFID tagging trial to 53 locations and expects EPC/RFID to help them deliver 100% stock accuracy. /2/26 51

52 What s been happening (contd.) AT Kearney reported that retailers who introduced RFID received: Reduced inventory leading to a one-time cash savings estimated at 5% of total inventory. A reduction in out of stock items resulting in a recurring annual benefit of $700,000 per $1 billion in annual sales IDTechEx predict that the healthcare industry s demand for RFID will reach US $2.1 billion by Health Industry Insights has identified that the RFID market in Life Sciences will exceed $14 billion over the next 3 years. /2/26 52

53 Some Technology Issues /2/26 53

54 Singulation Protocols RFID reader can only communicate with one tag at a time If more than one tag responds simultaneously, conflicts may occur. Two approaches: Aloha based tag anti-collision protocols random back-off like Ethernet performance of up to 200 tags per second Tree walking performance of up to 1000 tags per second /2/26 54

55 Tree-Walking Singulation Protocols ` Running Time = k * num of tags being read /2/26 55

56 Privacy The simplest RFID tags will broadcast its ID to any nearby reader, and thus threatening privacy. /2/26 56

57 Possible Solutions kill tags (RFID zappers) deactivate tags before they are placed in the hands of consumers. disadvantages Faraday Cage a container made of metal mesh or foil that is impenetrable by radio signals (of certain frequencies) petty thieves are already known to use foil-lined bags in retail shops to circumvent shoplifting detection mechanisms Regulation RFID Bill of Rights --- Garfinkel the right of the consumer to know what items possess RFID tags right to have tags removed or deactivated upon purchase of these items the right of the consumer to access of the data associated with an RFID tag the right to access of services without t mandatory use of RFID tags the right to know to when, where, and why the data in RFID tags is accessed /2/26 57

58 Possible Solutions (contd.) Active Jamming actively broadcasts radio signals so as to block and/or disrupt the operation of any nearby RFID readers may be illegal! Smart Tag typically involve the use of cryptographic methods. exceptionally challenging to design, given the severe cost constraints on the basic RFID tag.! hash-lock re-encryption block-tags on tree-walking /2/26 58

59 Blocker tags on Tree-Walking zone with prefix By attaching a tag that t can respond with both 0 and 1 queries after some prefix is reached, the reader will read all tags with the same prefix. With prefix of 64 bits in a 96-bit tag, all 2 32 tag IDs will be read stall the reader in the zone return virtually no useful information to the reader /2/26 59

60 Applications: Logistics 倉儲管理與物流業 /2/26 60

61 Applications: Logistics in Taiwan 台灣中華貨櫃警衛室上海第四監管倉昆山飛力監管倉台灣中華貨櫃警衛室貨櫃進場 /2/26 Source: FY93RFID 物流追蹤應用輔導執行報告.pdf 61

62 Information Collected and Tracking /2/26 62

63 Tracking /2/26 63

64 Error Rate: preliminary experiment 2 個 ISO B(Transcore UHF) Tags/ 貨櫃 1 個 ISO B(Transcore UHF) Tags/ 貨櫃 ( 有效樣本 : 扣除電腦當機時 Tag 及運送過程中脫落之 Tag) Experiments were done in Current systems typically y have success rate over 90%. /2/26 64

65 Applications: Retailers /2/26 零售流通業 65

66 METRO Group's Future Store /2/26 66

67 Applications: Electronic Toll Collection (ETC) Source: Wikipedia 註 : 台灣 ETC( 遠通 ) 用紅外線系統 (>300Ghz), 而非微波 (5.8GHz) /2/26 67

68 Applications: Luggage Tracking /2/26 68

69 Applications: Library and Document Management /2/26 69

70 Applications: Security Access Control 門禁管制 /2/26 70

71 Applications: Passports Source: Countries include: US (2006), Japan (March 1, 2006), Pakistan, Norway (November 2005), Malaysia (early 2000), New Zealand (November 4, 2005), UK /2/26 71

72 Applications: Asset Tracking and Management /2/26 72

73 Applications: Vehicle Tracking /2/26 73

74 Applications: Tire Tracking Michelin's RFIDtag /2/26 74

75 Applications: Animal Tracking RFID NEEDLES /2/26 75

76 Applications: Human Implant In 2004, the Mexican Attorney General's office implanted 18 of its staff members with the Verichip to control access to a secure data room. /2/26 76

77 Applications: Healthcare Healthcare Management System: Equipment Tracking Patient Tracking Application Alerts Discharge Summary /2/26 77

78 Applications: Healthcare (contd.) Global market for RFID in healthcare by value system tag Applications: People Tagging (26%) Assets Tracking (26%) Pharmaceuticals (13%) Blood (4%) Other (41%) e.g., cards, badges, health records, payments, supply chain management) Source: IDTechEx /2/26 78

79 Applications: Healthcare (contd.) /2/26 79

80 Applications: Recycling Products /2/26 80

81 Applications: Cleaners & Laundry /2/26 81

82 Applications: Fashion & Clothing Smart Fitting Rooms /2/26 82

83 Applications: Smart Shelf /2/26 83

84 Smart Shelf (contd.) /2/26 84

85 Applications: Postal and Carrier Services Goal: Allow package sender and receiver to track a package IDTechEx expects portal and carrier services to be the potential RFID market next to retailers, about $3B in /2/26 85

86 Potential Global Market /2/26 86

87 Applications: Smart Campus ( 中央社記者陳妍君台北十八日電 ) 台北市政府編列新台幣兩千八百五十萬元預算, 明年三月起, 市立各級學校將全面換發與悠遊卡結合的數位學生證, 九月起更將把數位學生證運用於各校出入校園管理系統, 維護學生安全 ( ) 臺北市 校園 e 卡計畫 試辨學校 : 東門國小 出缺勤紀錄 學校圖書館借書 合作社購物 搭捷運 公車上下學 成本 : 一張 150 或 90 /2/26 87

88 Summary What is the key to RFID applications knowing the process! /2/26 88

89 RFID Market Projections In 2008 the value of the entire RFID market will be $5.29 B, up from $4.93B in 2007, which includes tags, readers and software/services for RFID cards, labels, fobs and all other form factors. The majority of this value comes from transportation and national ID. In 2008, 57.3% of the total market value for RFID will be spent on cards and associated infrastructure Source: IDTechEX, /2/26 89

90 RFID Market Projections (contd.) 2.16B tags will be sold in 2008 versus 1.74B in 2007 and 1.02B in Tag Revenue in 2008 Number of Tags Sold in 2007 Source: IDTechEX, /2/26 90

91 Survey by Marketstrat in 2004 RFID revenues reached $1.49 billion in % ($645 million) spent on active and passive tags 20% ($290 million) on readers 19% ($280 million) on services 9% on software and integrated circuits By applications 29% Supply Chain Management 20% Access Control 12% Asset Management 10% Point-of-Sale 8% Baggage Control and "Other" tied 6% Vehicle Identification 4% Animal Tracking 3% Tire Tracking expected to reach $2B in 2005 major application ABI forecasts revenues of RFID software and services to reach $3.1B in 2007 ( ) /2/26 91

92 More About 悠遊卡 情人節悠遊卡 悠遊卡手機 BenQ T80 /2/26 92

93 Technology NFC (Near Field Communication) ( 近距離無線通信技術 ) Contactless Smart Card based on RFID Short-range ( 20cm) high frequency (13.56MHz) wireless communication technology. Applications: Electronic ticketing Electronic money Travel cards Identity documents Mobile commerce Electronic keys... Variations: MiFARE (NXP, spin-off of Philips) Example: 悠遊卡 Memory: 1KB/4KB FeliCa (SONY) Example: 香港八達通 /2/26 93

94 悠遊卡系統 第一層 : 中央清算系統 (CCHS) 及發卡系統 (CIM) 第二層 : 運輸業者中央處理系統 (CPS) 第三層 : 場 站處理系統 (SPS) 第四層 : 驗票設備 (PAM GATE EQM.) Source: e-learning.trtc.com.tw/object/forum/ mrmma.doc /2/26 94

95 悠遊卡系統安全交易流程 發卡機使用 Master keya,master keyb 為每張卡產生不同的 keya 和 keyb 發卡系統 Key Management System 1. 相互驗證 2. 產生交易資料 交易資料 中央清算系統將交易資料用交易資料 MAC KMS 給的 Master MACing key 計算 MAC 後, 與傳送來 /2/26 的 MAC 值比對, 以驗證交易 95 資料沒有被修改過

96 Key 的種類 名稱 Master Key A*16 Master Key B*16 Master MACing key 用途 產生票卡與驗票設備間相互認證的 keya 和 keyb 產生每個驗票設備的交易驗證碼 (MAC) Master Diversify if key 產生多樣化基碼時使用 /2/26 96

97 設定每張票卡的 key 發卡機使用 Master keya, Master keyb, Master Diversify key 為每張卡產生不同的 keya 和 keyb /2/26 97

98 產生每個驗票機的 MACing key 使用 Master Diversify key 和 Master MACing key 產生不同的 MACing key 給不同的驗票設備使用 /2/26 98

99 悠遊卡的資料格式 0 卡片序號目錄服務指標 Key A / Key B 1 可使用 / 禁止使用 ( 黑名單 ) 有效期限 Key A / Key B 2 電子錢包 Key A / Key B 3 累積優惠點數閘門出站記錄 Key A / Key B 4 最近六筆交易記錄 Key A / Key B 5 捷運次系統應用資料 Key A / Key B 6 公車次系統應用資料 Key A / Key B 7 停車場次系統應用資料 Key A / Key B : : : 預留空間 15 目錄服務區 共同資料區 個別應用資料區 /2/26 99

100 單筆交易的處理 0 卡片序號目錄服務指標 Key A / Key B 1 可使用 / 禁止使用 ( 黑名單 ) 有效期限 Key A / Key B 2 電子錢包 Key A / Key B 3 累積優惠點數閘門出站記錄 Key A / Key B 4 最近六筆交易記錄 Key A / Key B 5 捷運次系統應用資料 Key A / Key B 6 公車次系統應用資料 Key A / Key B 7 停車場次系統應用資料 Key A / Key B : : : 15 讀卡機使用 Master keya 和 Master keyb 驗證交易票卡的 keya,keyb, 並產生交易資料 Key A / Key B 驗證 keya, keyb 讀卡機 Master key B Ke A / Ke B Key A: 讀取資料或扣款時用 Key B: 寫入資料或加值時用 預留空間 /2/ 悠遊卡

101 Sensor Networks Wireless sensor network technologies evolve quickly in recent years, possible applications include: military healthcare Environment Habitat Monitoring on Great Duck Island Energy efficiency is a major issue in wireless sensor networks /2/26 101

102 Case Study: Some background Founded in 1962 by Sam Walton Capital Value: $194.68B (.02.08) $199.52B ( ) World #1 retailer and grocery chain World #1 private employer Account for 7% and 21% of US consumers expenditures on retail goods and groceries, respectively. Would be China's sixth largest export country. (2005) 7,262 stores worldwide, with over 3,000 of them international (2008). Slogan: Wal-Mart. Always Low Prices. Always./ Save More. Smile More. /2/26 102

103 Wal-Mart: Financial Performance Some background Founded in 1962 Capital Value: $194.68B (.02.08) $199.52B ( ) Revenue: $ B (2008, end in Jan ) $374.52B (2007) $ B (2006) $ B (2005) Net income: $13.59 B (2008) $12.88 B (2007) $12.18 B (2006) $11.41 B (2005) Employees : 2.1M! (.02.01) 02 01) $1.8M ( ) 2007 我國對外貿易總值約 US$450B 中央政府總預算約 NT$1,600B. /2/26 103

104 Market Performance in the Financial Tsunami Wal-Mart Nasdaq Dow Jones S&P /2/26 104

105 Wal-Mart: Business Segments Source: /2/26 105

106 Wal-Mart: Financial Analysis Operating Margin of Wal-Mart in (fiscal year end in Jan. ): 5.78% Cf. Amazon (fiscal year end in Dec. 2008) : 4.12% Google: 30.43% Microsoft: 38.06% /2/26 106

107 WalMart s RFID Mandate First wave The company's top 100 suppliers are required to inject RFID into its supply chain by Jan A recent AMR survey showed Wal-Mart's top 100 suppliers had invested a combined $250 million on RFID systems, by Jan. 2005, Wal-Mart has installed RFID systems in 104 Wal-Mart stores, 35 Sam s clubs and three distribution centers. Second wave The next 200 suppliers will be the RFID compliant by January By Oct. 2005, Wal-Mart intends to be using RFID in 12 distribution Centers and 600 stores in the US For 2007, Wal-Mart expects the next wave of 300 suppliers to start shipping tagged cases and pallets by January RFID Forecasts in 2010 ranging from $1.5B to $30B, depending on sources and definition of RFID devices contactless smart cards? NFC cellphone readers? /2/26 107

108 WalMart s RFID Mandate (contd.) Some progress reported by Oct (source IDTechEx) By the end of February, Dillman explained that Wal-Mart stores using RFID have received 23,753 tagged pallets and 663,912 tagged cases and taken over 5 million tag reads Wal-Mart is making RFID data it reads available to suppliers within 30 minutes though its Retail Link extranet website About half of the top 100 suppliers decided that there was very little knowledge of RFID integration and choose to learn and setup the systems themselves rather than outsource it to consultants /2/26 108

109 WalMart s RFID Mandate (contd.) Some progress reported by Oct (source IDTechEx) At case level, read rates have exceeded 90% for cases on carts, 95% on conveyors in distribution centers and 98% in trash compactors in the back room of stores The biggest headache is reading RFID tags on individual cases on fully loaded pallets, with read rates averaging 66%. Wal-Mart suppliers are working out the best position of the tag on the case for maximum readability, which varies according to the contents of the case. /2/26 109

110 Recent News Sam's Club Tells Suppliers to Tag or Pay [ ] By Jan. 31, every full single-item item pallet shipped to its distribution center in DeSoto, Texas, or directly to one of its stores served by that DC, must bear an EPC Gen 2 RFID tag. Failing to comply will be charged a service fee, starting at $2 per untagged pallet on Feb. 1, and capping at $3 per pallet on Jan. 1,. [owned and operated by Wal-Mart] at] /2/26 110

111 Recent News (contd.) Wal-Mart's RFID revolution a tough sell. [NetworkWorld ] There were reports that early read rate accuracy was 60%, but now that is more like 90 to 99%. According to Pacific Coast Producers, out-of-stocks have been reduced by about 50%. According to Wal-Mart, RFID reduces out of stocks by 8% worldwide, and can re-supply three times faster. Perpetual inventory (consistency between book inventory and stock on hand) improves by 20%. Gartner analyst estimates that the cost to implement an RFID infrastructure for smaller companies is $100,000 to $300,000, and could hit $20M for a large manufacturer. P&G found a specific business application perfectly suited to an RFID-based inventory system keeping track of merchandise located in expensive, time- sensitive displays. 600 of Wal-Mart's 60,000 suppliers (plus 750 Sam's Club suppliers) have deployed RFID (but they account for 3/4 of the company's sales volume ). /2/26 111

112 Recent News (contd.) On Wal-Mart's end, RFID has been rolled out at 1,000 of the roughly 4,000 Wal-Mart and Sam's Club stores in US. Only 5 of its roughly 120 distribution centers outfitted for RFID (as opposed to 12 originally scheduled by 2006). Wal-Mart has shifted its RFID focus to in-store implementations. Wal-Mart plans to continue rolling out the technology at a rate of about 400 stores a year. The RFID revolution was going g to be more difficult and take longer than it originally announced. More news from RFID Gazette: /2/26 112

113 Strategic Implications of Wal-Mart's RFID Mandate Volume and Cost Volumes of RFID tags will surge 1 Billion tags per year for Wal-Mart's top 100 suppliers costs for tags (and RFID readers) will fall dramatically < 5 cents (Upstream) Supply Chain Extensions Ripple" effect accelerating the use of RFID into the supplier's own supply chain, and eventually in turn the supplier's own vendor supply chains (Downstream) Supply Chain Extension. managing inventory within the store shopping floor lower cost of tags will cause tags to be applied to individual items The allure of knowing how, when and from what shelf or end-cap goods were purchased and the spatial relationships to other purchases will drive demand for a new generation of merchandising strategies. /2/26 113

114 Strategic Implications of Wal-Mart's RFID Mandate (contd.) A potential boon for GIS providers end-to-end visibility of shipments Innovation integrate manufacturing/distribution center mapping with broader geographic fleet management tracking and routing-type mapping. enable new kinds of innovative applications and applicability to new markets In addition to what we have discussed, we look forward to more... /2/26 114

115 Developing an RFID strategy Strategic How can RFID enable our overall strategic vision? Should we be a leader or a fast follower? Which h trading partners should I pilot with and when? How will we operate in a world of dual processes? And for how long? Organizational What are the change management implications? What are the risks involved in an RFID implementation? Financial What is the expected return on our RFID investment? What specific RFID applications can drive value for us? What is a realistic adoption pattern/rate t of RFID and how will that impact my business case? Technological What are our technology requirements for an RFID implementation? What is the architecture that best delivers on my strategic technology plan? How will an RFID implementation impact our current applications? /2/26 source: EPCGlobal 115

116 Discussion 1 As we have discussed in the Strategic Implications of Wal- Mart's RFID Mandate, RFID may boost the use of Global Positioning System (GPS). Please elaborate this issue by discussing more about the applications of the combined use of the two technologies. /2/26 116

117 Discussion 2 Give some other RFID killer applications that are not discussed in the slides (but do not overlap with the previous question). If you have troubles in finding them, you may consult wikipedia ( ). Alternatively, you can look for RFID in food products and agricultural commodities, or in location-based services. /2/26 117