Leveraging EPC and RFID for Business Advancement

1. EPC Advanced Business Aspects Training

2. Chapter 1Introduction

3. Introduction Chapter 1: Introduction Chapter 2: The Global Vision Chapter 3: Benefits of EPC/RFID Chapter 4: EPC/RFID Deployment Chapter 5: Examples of Applications Chapter 6: The Consumer

4. Chapter 2The Global Vision

5. The Internet of Things The Internet (of information) expands to the real world: an Internet of Things emerges

6. The Internet of Things

7. Internet is an island Today’s Internet is an island in the gulf of physical objects: only connected through human (manual) inputs

8. Benefits of the Internet of Things • Status (capture & report) • Diagnostics (troubleshoot) • Upgrades (augment performance) • Control/Automation (device cooperation) • Profiling/Behaviour Tracking (performance) • Replenishment/commerce (consumption) • Location Mapping and Logistics (sales)

9. Over 100 trillion items per year 10000 bio 6.5 bio 2 bio 1 bio

10. The size of the future market

11. The size of the future market • Available at • www.bridge-project.eu

12. We only can manage what we can measure. Information systems & the Internet Cost of data entry Barcode Keyboard Punch card UbiComp-Technologies Manual measuring Machine sensing Physical world

13. No measures means potential business problems Average OOS level in retail industry: 8.3% Average shrinkage rate for supermarkets/grocery in US: 1.5% of sales Average deduction level for inaccurate invoices: 9.9% of annual invoiced sales in US Cost of unsellable food and grocery products in US: 1% of sales Product counterfeiting is estimated to account for between 5 and 7% of world trade Source: C. Tellkamp, E. Fleisch, Auto-ID Lab St. Gallen

14. Recent advances in miniaturization, sensor & communication technology, and new materials drive for a new computing paradigm (4) Smart Things (3) Mobiles / Smart Cards (2) PCs Miniaturization and cost reduction (1) Mainframe Time

15. The most widely deployed Technology: RFID

16. Leveraging RFID in retail Source: C. Tellkamp, HSG; Gartner

17. The opportunities are multi-fold: Linking Information Trust Search & Find

18. The correct medication to the right patient

19. Smart T-Shirts

20. Anti-counterfeiting solutions are under study

21. STOLPAN Project ProductInfo • Project Goals: • EPC and NFC compatible mobile phones • EPC based product information • EPC based product authentication • NFC based loyalty programs • EPC triggered mobile advertisement • NFC based self check out and mobile payment Middleware Retail Back-Office Solution Middleware Middleware Middleware Loyalty program Credit Card

22. New items are tagged everyday…

23. … for various purposes

24. RFID enables new business models Risk-based-pricing Source: Courtesy of F. Mattern, ETH Zürich

25. Technology that reaches the consumer

26. Summary

27. Chapter 3Benefits of EPC / RFID

28. What are standards?

29. Why do we have Standards? OK? OK? OK? OK?

30. Benefits of using standards

31. Benefits of Global Standards Reduce costs Speeds customer acceptance Encourage innovation Reduce complexity

32. Global Standards & Competitive Advantage TDMA CDMA PCS GSM Standards allow technology providers to focus on innovation, not translation and intermediation

33. The role of EPCglobal standards Encourage Technology Innovation Foster competition Guaranteeing Interoperability Common Protocols for exchanging information Role of Global Standards

34. The benefits of EPCglobal standards Encourage Technology Innovation Foster competition Guaranteeing Interoperability Common Protocols for exchanging information Benefits of Global Standards Lower Costs of products and implementation Smooth integration with existing infrastructure Lower Cost of Changes

35. Overview of RFID benefits RFID is a tool allowing Increased Visibility Best business decisions Analysis application Fully automated data capture

36. RFID vs Barcodes Attributes EPC / RFID Bar Code Data transmission Electromagnetic / Wireless Optical Reading capability Non-line of sight Line of sight Tag reading Multiple One by one Reading speed 500 / minutes 80 / minutes Moving object reading Yes No Data modification Read & write Write once, read many Data volume 1 bit ~ 16 Mbytes < 100 bytes Access security High Little but possible Anti-collision Possible Not possible Benefits of EPC / RFID over Bar Codes:

37. Complying with mandates

38. ALE and EPCIS provide increased visibility electric eye pallet conveyor R R EnterpriseApp “at time T, the association of the following case tags to the following pallet tag was created at palletizer #3, to fulfill order #1234” Data CenterEnvironment EPCIS EdgeEnvironment PalletizerCapture App “between the time the case crossed the two beams at location L, the tag X was read with temperature T” ALE Filtering & Collection Reader Protocol (LLRP) Reader Reader

39. Supply Chain Visibility

40. Inventory Visibility

41. Chain of Custody visibility

42. Visibility of maintenance

43. Visibility of counterfeit products

44. Visibility is only the starting point Trend Analysis Problem Identification ALE EPCIS EPC Readings Operational Performance Management of Solutions Providers

45. Benefits for the producer Visibility of Production Processes Quick reconciliation of shipments Just-in-time production and delivery

46. Benefits for the seller Reduced safety stocks Availability of products Reduced theft Speedy check outs Improved after sales

47. Customer satisfaction Where is my product? Data flow Data flow Your product was last seen in Store #23, at 10am Tuesday, during receiving

48. Summary

49. Back-up Slides

50. Calculating ROI for implementing EPC / RFID The checklist below summarizes some of the key financial items incurred in EPC / RFID implementations Understanding the Financial Aspects • One time set up cost: • RFID reader • Middleware • RFID printers • Networking & cabling •        Enterprise system integration • Consulting • Training • PC Recurring cost: RFID tags Maintenance cost for hardware & software Training BACKUP SLIDE