17/05/2007 Unisys Technology Forum 2007 Page 1
From Black Jack to Business: RFID in the enterprise
RFID Research Group (NZ)
Featuring:
♥ ♦ ♠ ♣
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Place your bets please… … and placed them you have!
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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: $135670
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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.
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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
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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
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RFID 101: overview
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RFID 101: why not barcode?
• 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
• Low Cost • Widespread utilization • Can contain human readable label.
• Data transmission is performed opticallyclear 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.
Bar Codes
• Higher cost (expected to drop quickly)
• Specifications and standards not universal (yet)
• Tag (passive) reading dependent on environmental conditions.
RFID
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RFID 101: industry
• Around since 1920 – 1960. Used to identify friendly aircraft in WW2. First patent on modern ancestor to current tech in 1973. – 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.
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RFID 101: tag types
E.g. item level tracking of pharmaceuticals
E.g. cold chain mgmt (temperature logging)
E.g. asset tracking
• No battery in tag • Data capability more
limited • Powered by reader • Shorter range
(depends on frequency)
• Memory can support read/write functions
• Cheapest
• Uses battery to stay primed to allow quicker response and increased functionality
• Smaller batteries than active (portable)
• Longer range and sensing capability
• More expensive
• 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
Passive Tags SemiPassive Tags SemiActive Tags
Hybrid Tags
Active Tags
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What about securing what you can see?
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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
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So why RFID for TrackJack?
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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?
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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?
Location
Specificity
State
Compliance
Integrity
Authenticity
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So why RFID for the enterprise?
• Timely fulfilment, perfect availability, nearreal time visibility and physical control.
• Positive product identity, item/SKU management.
• Appropriate handling and storage, environmental monitoring along the supply chain.
• Automated chainofcustody record, ease of documentation of regulatory compliance.
• Tamperevidence at carton/bulk level, reduced shrinkage/loss, location monitoring.
• EPCbased mass serialisation.
Location
Specificity
State
Compliance
Integrity
Authenticity
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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
Electronic Weigh Scales Reader
Computer controlled drafting
Data logger with remote access
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Applications: supply chain
• ‘First mile’ – Lower inventory (530%) (lead times, supply variability) – Reduced 3 rd party transport costs (up to 20%) – Reduced obsolete/expired/unsaleable items
• ‘Last mile’ – Increased sales (0.52%) (outofstocks, visibility) – Warehouse labour savings (3540%)
• Retail ‘last mile’ – Reduced outofstocks (WalMart: 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, anticounterfeiting, reduced diversion/theft
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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 – RFIDenabled machines/objects will communicate more often than people causing increased demand (incl. wireless)
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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
• Realtime, no more man hours for checking, increased availability through preventive maintenance
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RFID ROI: Best practice
From Aberdeen research (Sept. 2006):
• Start early
• Understand your objectives
• Pick the right partners (Unisys recommends Unisys)
• Don’t ‘selfintegrate’ (Unisys recommends Unisys)
• Run a pilot (Unisys recommends Unisys)
• Test ‘whatifs’
• Look beyond compliance
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RFID ROI: Survey Greatest Risks of Achieving Positive ROI
15%
15%
18%
20%
22%
27%
35%
42%
43%
0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%
Infrastructure won’t support it
Unsuitable operating environment
Low priority project
Faltering management support
No organisation consensus
Lack of team expertise
Selected wrong business cases
Investment underestimated
Instability of technology
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RFID ROI: Survey Where will the ShortTerm ROI Be Found?
6%
12%
16%
17%
17%
34%
0% 5% 10% 15% 20% 25% 30% 35% 40%
More easily managed exceptions
Minimised inventory shrinkage
Improved business intelligence
Improved worker productivity
Increased value of products or services
Improved process efficiency
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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.
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Questions (& answers hopefully)
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