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Sloan Information Period (SIP) RF.450Information Infrastructure Needed for Effective
Utilization of RFID AutoID technologies
Part 1 – RFID Technology & Application Areas
Subject RF.450 @ E51-145 on Monday , Oct 24, 2005 at 2:30-5:30 PM
Abstract:This is an exploratory research SIP activity. A high degree of
interaction and student participation and discussion is expected.
In order to maximize the effective use of RFID, existing intra- and inter-organizational business processes must be re-thought and re-structured, and an appropriate Information Technology (IT) infrastructure must be established both across organizations and between organizations.
Prof Stuart Madnick, <[email protected]>, Room: E53-321, Ext: 3-6671.[Revised 10-23-2005. Latest version in http://web.mit.edu/smadnick/www/SIP2005/ ]
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General OutlineIn this SIP activity we will discuss:• What is the RFID technology?• What are the possible/claimed benefits of RFID?• What are existing or likely information
infrastructure deficiencies,- Especially in the areas of information exchange and data standards?
• What are some IT research directions to address these problems?
Advertisement: If you like this material, consider these courses for Spring 2006:15.578 – GLOBAL INFORMATION SYSTEMS:
COMMUNICATIONS & CONNECTIVITY AMONG INFORMATION (Tues & Thurs, 10-11:30; E51-376 – Primarily for Sloan MBA’s)
15.565 / ESD.565 – INTEGRATING INFORMATION SYSTEMS: TECHNOLOGY, STRATEGY, AND ORGANIZATIONAL FACTORS(Tues & Thurs, 10-11:30, E51-376 – Similar, but more technical)
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Some RFID HypeRFID AutoID technology has received considerable media
attention, innovation ideas, and controversy. For example:
"Study shows RFID benefits for retailers. Retailers can expect extensive inventory and labor cost savings from the adoption of radio frequency identification (RFID) technology, but some consumer product manufacturers will face higher costs and delayed benefits from adopting the technology. That is the conclusion of a new report on RFID and the Electronic Product Code (EPC) from global management consulting firm AT Kearney." ( from http://logistics.about.com/b/a/042898.htm )
"Dvorak Slams RFID. It's bad news, claims John Dvorak. Those tiny radio transmitters that promise convenience and flexibility are just another path toward big brother domination.And it's going to get a lot worse. ( from http://ct.eletters.whatsnewnow.com/rd/cts?d=181-480-1-278-107259-23183-0-0-0-1 )
"A Manufacturer of soft drinks can identify with the click of a button how many containers of its soda cans are likely to reach their expiration date in the next few days and where they are located at various grocery outlets. ( from CACM, August 2005, p. 103 )
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What have you heard?Unusual or Intriguing Applications?• Bank of Nagoya installing RFID-based document
management system • Automatically scan you when you entered
classroom – so no need to sign “sign-in”sheet
•••••
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The Hype Cycle
Visibility
Time
Technology Trigger
Peak of Inflated Expectations
Trough ofDisillusionment
Slope ofEnlightenment
Plateau ofProductivity
Source: Jackie Fenn, Gartner Group
RFID Today! (?)
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Some Sources Used for Background Materials (found with assistance of H. Zhu)
• http://wwwx.cs.unc.edu/~sparkst/mobile/rfid/RFID.ppt• http://www.scansource.com/downloads/RFIDWebinar1.ppt• http://www.public.iastate.edu/~ext4mjm/MIS435/RFID-
Pres.ppt• http://www.scansource.com/intermec/2004_webinars/Webi
nar_RFID_July_04.ppt• http://www.fiatech.org/Presentations/texasinstruments.ppt• http://cosmos.kaist.ac.kr/cs492a/midterm2/RFID.ppt• http://www.masoftware.org/download/05-20%20Linster.ppt• http://www.progress.com/progress/exchange/post_2004/te
chnical_sessions/b1200.ppt• http://www.dodait.com/rfid/SummitApr04/Day1/05-
RFID%20Primer-Kimball-DOD%20RFID%20Industry%20Summit%2029Apr%2004-V2.ppt (DoD slides)
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OutlineBackground (2:35-3:55)• Introduction• RFID Technology
– Comparison with Bar Codes– Example Applications
• Focus on Supply Chain– EPC Tag and EPC Global
• ROI Issues & Challenges• MIT Auto-ID Center Some of Sloan’s Research issues (4:05-5:25)• RFID IT Infrastructure • Challenges to “Data Synchronization”• Role of MIT’s Context Mediation Technology in
addressing the “Data Synchronization” challenge• Discussion
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What is Radio Frequency Identification (RFID)?
Substrate
Tag IC
Antenna
Die attach
- Can be Passive or Active- Can be Read-only or Read-Write
5
9
Some Claimed Advantages of RFID vs. Barcode
• No requirement for line-of-sight• Many tags can be read at the same time• High memory capacity if needed• Dynamic information carrier (read/write)• Robust and reliable• Performs in rugged, harsh environment• Cheaper in long term• No human intervention• Reader virtually maintenance free
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RFID Technology Primer
Adapted fromDan Kimball, DoD Logistics AIT Office
April 7, 2004
PART 1a
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Pre-50’s 1950’s 1960’s 1970’s 1980’s 1990’s 2000’s
RFID TIMELINE
• 1926: Baird’sradio object
detectionpatent
• 1935: Watson-Watt’s radar
patent
• WW II: Radar refined
• 1st Toll Collection System - Norway
• Texas, Georgia /Oklahoma Tolls
• Wide-scale USRoll-out
• LASL spins-off IDX & Amtech • 1984: IDX/Allen
Bradley installGM System
• Vast number of companies enter RFID marketplace
• 1977: Electroniclicense plate formotor vehicles
• 1979: RFID animal
implants
• 1975 LASLreleases
research topublic sector
• 1991: AARstandard
• 1994: AllUS railcars
outfitted
• MIT Auto-IDCenter formation• EPC™ introduced
• National & internationalstandards emerge
• 2004: TREAD
•EPCglobalformed 2003
• 1997:US Army rolls out TC-
AIMS II
• 2003: RFID prominent inIraqi Freedom
• Smart shelves
• Multiple early
adopter installations
• 1952: Vernon“Application of the Microwave
Homodyne”
• Harris patent: “Radio transmissionsystems withmodulatablepassiveresponder”
• Harrington“Active & Loaded Scatterers”
Adapted from Interaction Design Institute RFID Project Presentation - 2002
• 1966: Sensor-matic & Check-
point EAS
• Over 350 direct - reference patents
• 1948: HarryStockman -
CommunicationsBy Means of
Reflected Power
• Fairchild, RCA& Raytheon
initiate pgms
• 2005: Walmartinitial deadline• 1969: Mario
Cardullo RFIDconcept
• 1973: Cardullopatent
RFID: The History
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Technical Aspects of RFIDTag Power SourceTag ComponentsRead - Read/WriteAnti-CollisionWho talks first?Protocol
Ultimate focus of this SIP activity
Standards? The RFID industry suffered from a proliferation of standards, according to Sue Hutchinson, director of product management for EPCglobal. EPCglobal had two GEN-1 standards, while ISO had two UHF air interface standards. (December 17, 2004)
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13
RFID Tags Come in Different Forms – Can be attached to almost anything
Class V tags Readers. Can power other Class I, II and III tags;
Communicate with Classes IV and V.
Class IV tags: Active tags with
broad-band peer-to-peer communication
Class III tags:semi-passive RFID tags
Class II tags: passive tags with additional
functionality
Class 0/Class I:read-only passive tags
• Tags can be attached to almost anything:
– pallets or cases of product
– vehicles– company assets or
personnel– items such as apparel,
luggage– people, livestock, pets– high value electronics
e.g., computers, TVs• Many applications
Primary focus
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Tag Types: Active
Active:Standard: None, Mainly Manufacturers Proprietary Systems/ProtocolsRange: Generally 300 Feet or lessBattery powered / limited lifeUsed Predominantly in Transportation Systems (rail, toll systems, trucking, container). Characteristics: Tag with Internal Power Cell Mounted to Item or container/pallet/box, Interrogator Queries Tags, Uploads/Downloads Data. Does not transmit all of the time. Data Capacity Varies.
RF & Digital RF & Digital CircuitryCircuitry
RFantenna
BatteryBattery
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Tag Types: Passive
Passive:Standard: None/many, Mainly Manufacturers Proprietary Systems/Protocols (uses back scatter technology)Range: Typically Measured in “Inches”, Working Toward “Meters” (dependant system layout, interference, etc.) Used Predominantly in Retail Systems and Transportation Systems. Characteristics: Small Tag Loaded with License Plate DataTypically Mounted to End Item, Reader Captures Data as Item Moves Through Choke Point (door, pathway, frame, etc.). Data Capacity Limited.
RF antenna(power source)
Memory(EEPROM)
Digital Logic Digital Logic & Control& Control
16
Tag Types: Semi-Active
Semi-Active or Battery Assisted PassiveOn-board battery power source
Uses Passive Technology (no transmitter)Greater range but higher cost (less than active)Requires less power from readerFinite lifeCan use thin batteries (little change to form factor)
RFantenna
Memory(EEPROM)
Digital Logic Digital Logic & Control& Control
BatteryBattery
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Tag Types - Read vs Read/WriteRead Only:
Information can only be read from an RFID device –programmed at manufacture
User ProgrammableWORM - Write Once Read Many - Ability to initialize an RFID device outside of the RFID manufacturer’s facility after manufacture
Read/Write:Information can be read from or written to an RFID transponder during the time it is presented to a reader/writerTypically asymmetric read and write operating range
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Technical ConsiderationsAnticollision
Ability to communicate with several transponders simultaneouslyImportant in longer range readersMust be implemented in the silicon of the RFID device
Who Talks FirstTag Talks First (TTF)
After the tag is energized, it sends out a signal that says “I am here”
Reader Talks First (RTF)As reader sends out energization signal it says “who is there”
ProblemsWith TTF you can get tag pollution but slower total read timeCompatibility issues?
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Protocol
The method used to talk to a tag
Modulation method
Error correction
Anti-collision technique
Message format
Commands
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Low Frequency (125 – 134 kHz)Used in Access control, livestock, race timing, pallet tracking, automotive immobilizers, wireless commerce
High Frequency (13.56 mHz) – Smart LabelsUsed in supply chain, wireless commerce, ticketing, product authentication
Ultra-High Frequency – UHF (900+ mHz)Emerging technology, applications still in development
Microwave (2.45 gHz)Still highly experimental, chipless technology
RFID Operating Frequencies
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21
Worldwide Regulatory Environment
?
1000
50
4WEIRP
902-928
ArgentinaBrazil Peru
varied16161210150Channels#
.5 – 4WEIRP
4WEIRP
4WEIRP
4WEIRP
2WERP
.5WERP
4WEIRP
Power
?-50dBc-50dBc
-54dBc-63dBc+
-63dBc+-50dBcOOBspurious
varied100040010002002001000Class 0Rate
864-929spotty
918-926910-914
950-956
866-868
869.5902-928Bandsize
NewZealand
AustraliaKorea(new)
Japan(new)
Europe(future)
Europe(current)
NorthAmerica
No Global Solution – Standards are a Challenge
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Frequency Selection IssuesDesired Pattern
Required Range
Tag-to-Tag Spacing
Data Rate
Size Requirements
Power Requirements
Interference Issues
Noise Environment
Cost / Performance Tradeoffs
12
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• Read distance requirements• Long read range• Short read range
• Frequency• All frequencies have their pros and cons
• ISO standards• Proprietary or standards-based
• Government regulations• Varies from country to country
RFID System Considerations
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• Multiple Tag Reading in Same Field• Anti-collision
• Sensitivity to Orientation• A single orientation or omni-directional
• Hardware Set-up• Environment can affect performance• Tag Sensitivity to Metallic environments
RFID System Considerations
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• Stationary or handheld
• Weather-proof or industrialized
• Typical read ranges vary from a few centimeters to a few meters
• Read Range is dependent upon:
• Broadcast signal strength
• Size of broadcast antenna
• Size of transponder antenna
• The environment – Metallic, Liquid
• Multi-frequency readers
Reader Characteristics
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How compare to 2D barcodes
NO – new labelYes –Read/Write
Change Information?
$0.05 or less$0.40 - $1.00 (in millions)
Cost (today)
Low to MediumHighSecurity
Low to mediumLow to highCapacity
RequiredNot requiredLine of sight
2D BarcodeRFID Tag
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27
Barcode Examples – Many types
Maxi-codeUPC A
Code 49Codablock PDF 417
QR Code Data Matrix
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Current Technology: Bar-coding
• UPC A code– 18 digit alphanumeric code used for identifying
flow of package and billing information– Large database used to support this system – 18
terabytes• Maxi-code
– Determined by the locations of bars around a central dot
– Contains information for the destination address of the package as well as weight and size specs.
– requires special equipment and a stable environment free from movement to obtain a read of the information
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29
RFID vs. Bar-coding• Bar-coding Disadvantages
– Code must be clearly readable• free from dirt, smudging or other damage• This is problem with the constant movement of
packages– Code must be in a position that can be easily read by
a scanning device • Optical lasers are usually used for scanning
– Code must be within a short distance to be read• Typically within 3 feet
– Only one code can be scanned at a time– Codes must be a reasonable distance apart
• The use of RFID can eliminate many of the problems associated with bar-coding technology.
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The Future? -- A Hybrid WorldTraditional bar codes
Will remain the dominant auto ID technology for the foreseeable future
Lowest cost, broadest applicability, huge infrastructure investment
2D bar codesWill be increasingly adopted for value added applications
Portable data files, supplementary retail coding etc.
RFIDWill be increasingly adopted where non-line of sight, read/write, multiple detection offers real advantages
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31
Implementations of RFID
• Retail is the current driving force– Wal-Mart– Target
• Others– Department of Defense– UPS– Other logistics firms
32
Things to consider• Price of tags
– Currently about 10 to 50 cents each– If just $0.01, $250,000,000 to tag every P&G product– Chicken and Egg
• Uses– Wal-Mart will be collecting existing data– Many possibilities
• Technology matures– Cheaper and standards
• Privacy (e.g., “RFID chips in world soccer tournament tickets questioned”)– All 2.9 million tickets for FIFA World Cup soccer
tournament in Germany include an RFID smart tag
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RFID in Action …
Buy Burgers at McDonald’s
Pay for Gas at Exxon/Mobil with Speedpass
Check out library books with 3M system
Race timing at most major Marathons
Get a Coke from a vending machine at the Olympics
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Toll tags, parking lot access
Event access, ticketing Anti-theft for automobiles
Building access control, security
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35
Product authentication
Chip wafer Manufacturing
Warehouse, supply chain, logistics
Livestock, asset tracking
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Electronic Article Surveillance (EAS)Electronic Article Surveillance (EAS)
Already existsRFID technology detects if an item is removed from a
store without tag being deactivatedAmorphous magnetic stripsDestructible tuned circuits
But - Existing technology cannot uniquely identify goodsNew RFID technology provides significant features:
Able to write SKU number into transponderAutomatic inventory with a hand held reader
Anti-collision mandatory for this featureCash registers can automatically ring up merchandise
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"A Manufacturer of soft drinks can identify with the click of a button how many containers of its soda cans are likely to reach their expiration date in the next few days and where they are located at various grocery outlets.”
( from CACM, August 2005, p. 103 )
• How easy / realistic is this?• What infrastructure must exist?
RFID – Supply Chain PerspectiveAdapted from im jae hyoun
PART 1b
38
how it works…
Adding Identity to Products
Coke
20
39
how it works…
Adding Identity to Cases:Assembly lineapplications
40
how it works…
Reading Tags:
Portal applications:Shipping validation &Confirm routing
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41
how it works…
-Savant(middleware software forEPC)
-ONS(ObjectNamingService)
-PML(PhysicalMarkupLanguage)
42
how it works…
Efficiency in Distribution
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43
how it works…
Efficiency in Inventory
44
how it works…
Overstocking andOut of Stock Eliminated
23
45
how it works…
Consumer Convenience
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Some Serious Challenges & limitations…materials and effect on signal
AbsorptionDetuning (dielectric)Reflection
Human body / animals
Complex effects (lenses, filters)Reflection
Groups of cans
ReflectionMetals
Detuning (dielectric)Plastics
Absorption Conductive liquids (shampoo)
Absorption (moisture)Detuning (dielectric)
Cardboard
Effect(s) on RF signalMaterial
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47
Supply Chain Reality
It is happening …
48
Flow of Goods
EPC Data Management Infrastructure(Private/public)
RFID in the Supply Chain
Supplier
VMI
Contract
Manuf.
DistributionC
enter
Retail
SC Visibility & Event Management
SC Leader ERP
Who controls?
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49
Understanding RFID’s Potential
Customer
Returns Hub
Supplier VMI/Inbound Hub
Manufacturing DC/Outbound Hub
Reseller/ Distributor
Repair CenterWarranty/Services Revenue
Sample Supply Chain
Out of StockRevenue Collection
Brand Protection
Comp. Inv. Visib. FGI Inv. Visib.
CounterfittingBOM TrackingLot Tracking
Shrinkage
Chargeback
Planning & Synchronization
Shipment VisibilityOperating and Handling Cost
50
Making a Case for RFID - ROIAdapted fromGreg DixonChief Technology OfficerScanSource
PART 1c
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51
Why do people buy RFID?• Traditional Reasons:
– Reduction of direct labor (80%)• Hand-held reader vs. Fixed reader
– Protection and tracking of assets• Animals – Inventory – Tires – Access Control - etc.
– Cost Structure reduction• Out of stock - 7.8% – “walk aways”
– Only technology that will work• When bar codes don’t work
– (dirty / line of sight)
• New Reason:– Mandated
52
RFID Timeline (goals)RFID Invented
First UPC bar code
48 - 74 - 79 - 84 - 95 - 99 - 03- 1/04- 4/04- 7/04- 1/05- 6/05- 10/05- 07 - 09 - 13
Livestock RFID
GM RFID
ISO RFID Standards
EPCGlobal started @ MIT
Wal*Mart and DoD announce RFID plans
Wal*Mart pilots begin
Wal*Mart implements 8 suppliers / 21 products
EPCGlobal establishes Gen 2 specs
Wal*Mart deadline to top 134
Wal*Mart 6 DCs and 250 stores
Wal*Mart 13 DCs and 600 stores
All Wal*Mart and DoD suppli
RFID pervasive
in supply chain
Item class
tagging
Today
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53
Companies under RFID mandate0 60,000
Wal*Mart / DoD Sunrise date2007
Today
Com
pani
es
Time
Technology Adoption Life Cycle
20,40020,400
9,600
54
Two primary concerns for Supply Chain users:
• Concern #1: Return on Investment - ROI
LaborVisibility
SupplyVisibility
DecisionVisibility
DemandVisibility
FewerFaster
More Accurate
Where is the Inventory?
What areCustomers
buying?
What do customers
want?
Reduction in costs > RFID technology investment = +ROI
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55
• Concern #1: ROI – Easier said than done
Tag and Ship - no data integration
Tag and Ship - with data integration
Limited Mfg Adoption - no data integration
Full Corp. Adoption - with data integration
Limited Mfg Adoption - with data integration
“Slap & Ship” = pure costMay be the majority
Link to trading partners
Reduces some real costs
Reduces more real costs
Maximizes cost reduction
Step
s to
ROI
Inve
sted
$$
incr
ease
sPo
tent
ial R
OI i
ncre
ases
Note importance of data integration (addressed in part 2)• Challenging within a large company• Very challenging between/among multiple companies
56
60,000mandatedsuppliers
Two primary concerns for Supply Chain users:
• Concern #2: PartnershipsLet’s do the math
• One of the largest RFID S.I. (“handle maybe 100”)
• <100 RFID Vendors & S.I.s * - 100 x 50 = 5,000 • Must mobilize >1000 new RFID Solution Providers
just to meet the demand for partnerships* RFID Journal
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Winners & Losers ?
• AT Kearney study• Retailers benefits
– Reduce inventory by 5%– Reduce store & warehouse expenses by
7.5%– Reduce “out of stock” $700,000 per $1B
• Manufacturers costs– High impact (expensive) v. low impact (cheap)– Low impact: $155M in capital costs
(assuming $.15/tag, 10 year horizon, 12% cost of capital
58
What about “closed loop” & Enterprise applications?
• RFID technologies have been available for a decade
• For many applications the tag cost was too high
• Supply Chain volume reduce tag costs• All those applications are still waiting for
an RFID solution
30
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Edge ServerEdge Server
ERP CRM
Middleware
LightStack
SensorsRFIDReader/encoder
Bar code Scanner
Scale
MessageBoard
Read Failure
PLCPrinter/encoder
Enterprise Level Applications
Re-define the “Edge”of an enterprise
60
OutlineBackground (2:35-3:55)• Introduction• RFID Technology
– Comparison with Bar Codes– Example Applications
• Focus on Supply Chain– EPC Tag and EPC Global
• ROI Issues & Challenges• MIT Auto-ID Center Some of Sloan’s Research issues (4:05-5:25)• RFID IT Infrastructure • Challenges to “Data Synchronization”• Role of MIT’s Context Mediation Technology in
addressing the “Data Synchronization” challenge• Discussion