Featuring: From Black Jack to Business: RFID in the enterprise

Transcription

1 Featuring: From Black Jack to Business: RFID in the enterprise RFID Research Group (NZ) Unisys Technology Forum /05/2007 Page 1

2 Place your bets please and placed them you have! Unisys Technology Forum /05/2007 Page 2

3 Final results Most money won: Kevin, ASB ($8990 by $5190) House is up: $17160 Players: 64 Players who lost everything: 26 Number of games yesterday: 79 Total bets placed yesterday: $ Unisys Technology Forum /05/2007 Page 3

4 Why are we (and you) here? Regardless of the hype, RFID technology is becoming a permanent part of the IT landscape worldwide. Market estimates vary widely. ABI Research: US$3.1b IDTechEx: US$2.7b to US$12.35b (2016). At minimum, we can conclude it isn t going away and will continue to provide unique solutions. Unisys Technology Forum /05/2007 Page 4

5 Why are we (and you) here? Limited uptake in NZ; this is likely a temporary situation. Price falling Widespread industry adoption Demands for traceability Higher performance tech Industry standards Today: Technology primer Key value propositions Common and industry specific applications Lessons learnt Unisys Technology Forum /05/2007 Page 5

6 Why are we (and you) here? Unisys has a great deal of experience in track and trace solutions (not limited to RFID driven), including: World s largest RFID network for US military Tracking pharmaceutical pedigrees Processing 35% of world s cargo Strategic partnerships with industry leaders Unisys Technology Forum /05/2007 Page 6

7 RFID 101: overview Unisys Technology Forum /05/2007 Page 7

8 RFID 101: why not barcode? Bar Codes Low Cost Widespread utilization Can contain human readable label. Data transmission is performed optically clear line of sight required Information storage is limited Only one tag can be read at a time Read capability can be affected by dirt, water and scratches. RFID Line of sight not required Can store significantly more information ID the exact item Increased functionality: covert and difficult to counterfeit Automated process less manual Higher cost (expected to drop quickly) Specifications and standards not universal (yet) Tag (passive) reading dependent on environmental conditions. Unisys Technology Forum /05/2007 Page 8

9 RFID 101: industry Around since Used to identify friendly aircraft in WW2. First patent on modern ancestor to current tech in To start of 2006, 2.4 billion tags sold. During 2005, 600 million tags sold. Standards by EPCglobal (Gen2 in Dec 2004 now adopted by ISO). First step to total supply chain visibility. For now, only simple tags covered. Unisys is a member of the group. Unisys Technology Forum /05/2007 Page 9

10 RFID 101: tag types Active Tags Battery powered Longest range Can sense physical conditions (e.g. temperature, humidity, vibration) Large memory supports read/write functions For some vendors, tags can communicate with one another Most expensive E.g. asset tracking Semi Passive Tags Semi Active Tags Hybrid Tags Uses battery to stay primed to allow quicker response and increased functionality Smaller batteries than active (portable) Longer range and sensing capability More expensive E.g. cold chain mgmt (temperature logging) Passive Tags No battery in tag Data capability more limited Powered by reader Shorter range (depends on frequency) Memory can support read/write functions Cheapest E.g. item level tracking of pharmaceuticals Unisys Technology Forum /05/2007 Page 10

11 What about securing what you can see? Unisys Technology Forum /05/2007 Page 11

12 RFID 101: Privacy/Security Privacy issues: Scanned through materials/items/packaging Read at a small distance with no overt physical action Data collected can be held by multiple parties Tags can be active outside of monitoring environment Covert behaviour and activity profiling Security responses (from NIST): Isolate RFID databases with firewalls from external Encrypt RFID tags/signals Strong user authentication Shield tags/antennas to restrict access Audit/log/time stamp Dispose/recycle tags Unisys Technology Forum /05/2007 Page 12

13 So why RFID for TrackJack? Unisys Technology Forum /05/2007 Page 13

14 Unisys Technology Forum /05/2007 Page 14

15 So why RFID for TrackJack? Where are the cards now? Which ace of spades is in play? What happened in the last game? Did anyone add a bet/card? Move a bet/card? Are any of the cards fake? Unisys Technology Forum /05/2007 Page 15

16 So why RFID for TrackJack? Where are the cards now? Location Which ace of spades is in play? Specificity What happened in the last game? State Compliance Did anyone add a bet/card? Move a bet/card? Integrity Are any of the cards fake? Authenticity Unisys Technology Forum /05/2007 Page 16

17 So why RFID for the enterprise? Location Timely fulfilment, perfect availability, near real time visibility and physical control. Specificity Positive product identity, item/sku management. Appropriate handling and storage, environmental monitoring along the supply chain. State Automated chain of custody record, ease of documentation of regulatory compliance. Compliance Tamper evidence at carton/bulk level, reduced shrinkage/loss, location monitoring. Integrity EPC based mass serialisation. Authenticity Unisys Technology Forum /05/2007 Page 17

18 Applications: asset tracking Air Canada reduced $2m pa stock loss by 80% Sheep (e.g. Canada) Large no. of items (10k pp) Individual sheep info stored Process automation Cattle (e.g. Australia) People Staff working with SARS Prison inmates Visitors to museum Secure room access Documents Computercontrolled drafting Electronic Weigh Scales Reader Data logger with remote access Unisys Technology Forum /05/2007 Page 18

19 Applications: supply chain First mile Lower inventory (5 30%) (lead times, supply variability) Reduced 3 rd party transport costs (up to 20%) Reduced obsolete/expired/unsaleable items Last mile Increased sales (0.5 2%) (out of stocks, visibility) Warehouse labour savings (35 40%) Retail last mile Reduced out of stocks (Wal Mart: 16% reduction) Reduced shrinkage/theft, receiving labour (up to 50%) Reduced delivery lead times (lower safety stock levels) Security Pedigree to track all info about drug as it moves from place to place Safety, anti counterfeiting, reduced diversion/theft Unisys Technology Forum /05/2007 Page 19

20 Applications: financial/comms Customer cards and books Payments: Exxon/Mobil SpeedPass Tim s presentation: Smartcards Currency High value paper notes (serial code, place of origin, denomination to defeat counterfeiting/money laundering) Bonds transaction history, documents Telecommunications RFID enabled machines/objects will communicate more often than people causing increased demand (incl. wireless) Unisys Technology Forum /05/2007 Page 20

21 Applications: out of the box FlyToGet: Norwegian railway Enormous time checking structural integrity of wheels Active RFID tags on each wheel + GPS for location + GPRS for data transmission Real time, no more man hours for checking, increased availability through preventive maintenance Unisys Technology Forum /05/2007 Page 21

22 RFID ROI: Best practice From Aberdeen research (Sept. 2006): Start early Understand your objectives Pick the right partners (Unisys recommends Unisys) Don t self integrate (Unisys recommends Unisys) Run a pilot (Unisys recommends Unisys) Test what ifs Look beyond compliance Unisys Technology Forum /05/2007 Page 22

23 RFID ROI: Survey Greatest Risks of Achieving Positive ROI Instability of technology 43% Investment underestimated 42% Selected wrong business cases 35% Lack of team expertise 27% No organisation consensus 22% Faltering management support 20% Low priority project 18% Unsuitable operating environment 15% Infrastructure won t support it 15% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% Unisys Technology Forum /05/2007 Page 23

24 RFID ROI: Survey Where will the Short Term ROI Be Found? Improved process efficiency 34% Increased value of products or services 17% Improved worker productivity 17% Improved business intelligence 16% Minimised inventory shrinkage 12% More easily managed exceptions 6% 0% 5% 10% 15% 20% 25% 30% 35% 40% Unisys Technology Forum /05/2007 Page 24

25 Final thoughts TrackJack is visible: are you? RFID is ready Already proven in many areas Application selection is critical Allows us to do things we ve never been able to do before Come play in the next break or talk with us about where RFID could benefit your organisation. Unisys Technology Forum /05/2007 Page 25

26 Questions (& answers hopefully) Unisys Technology Forum /05/2007 Page 26

27 Unisys Technology Forum /05/2007 Page 27