R adio F requency Id entification

1. RFID Radio Frequency Identification Austin Rutkowski Naomi Shaw Jenelle Meeker Maggie Kwong

2. Agenda • Introduction & Overview – Austin • Supply Chain Management Uses – Jenelle • Other Current Uses – Maggie • Future Uses, Issues & Conclusions – Naomi

3. RFID in Use—Hollywood Style Courtesy of Paramount Pictures

4. History of RFID • 1939 - IFF transponder invented by the British • 1945 - Léon Theremin invented an espionage tool for the Soviet government • 1973 - Mario Cardullo holds the patent for the first RFID—a passive radio transponder with memory

5. What Exactly is RFID? • Radio Frequency Identification (RFID) is an automatic identification method • Relies on storing and remotely retrieving data using tags or transponders • An RFID tag is a small object that can be attached to or incorporated into: • products • animals • people

6. Types of RFID Tags • Passive RFID tags have no internal power supply • Semi-passive RFID tags have a small battery • Active RFID tags have their own internal power source

7. Passive RFID Tags • Response is more than an ID number / UPC • Can contain nonvolatile EEPROM for storing data • Lack of an onboard power supply means that the device can be quite small • The minute electrical current induced in the antenna by the incoming radio frequency signal provides just enough power for the tag activate and transmit a response • Least expensive RFID tag

8. Semi-Passive RFID Tags • Faster because they do not waste time collecting power to transmit a response • Batteries make it difficult to place permanently • Much larger than passive tags www.wikipedia.org

9. Active RFID Tags • Active tags typically much more reliable • More powerful and can function against the elements and interference such as radiation, water, electric shock, et cetera • Battery life lasts about 10-15 years • About the size of a coin

10. RFID and Supply Chain Management Two values for inventory systems: • Provides visibility of inventory throughout supply chain • Simplifies the acquisition process and helps to prevent or reduce human errors www.googleimages.com

11. Wal-Mart • Top 100 suppliers required to apply RFID labels to all shipments • “Smart Shelves” and automatic, hands-free management • Benefit for retailers and suppliers • Obstacles in applying the technology RFID!

12. Department of Defense • Mandate for RFID tracking • Goals • Improve forecasting through better visibility • Increase accuracy of data and shipments • 3G tag - Combining RFID with GPS and satellite communications

13. Effects on AIS / Accounting • Shift in inventory costing method used • Auditing the effectiveness of RFID related controls • Influx of data produced in RFID system • RFID in practice AICPA: http://www.aicpa.org/pubs/jofa/nov2004/davis.htm

14. Pet Identification • How does it work? • Benefits • Cost • Data update required • Lack of RFID pet tag standards www.rfidnews.org/new

15. www.rfidjournal.com Animal Identification • Livestock • How does it work? • Uses • Feeding • Disease control • Breeding • Endangered Species • Uses • Prevention of poaching / exporting • Tracking population level www.juicycoppertoes.com

16. Passport Identification • U. S. – RFID passports will be issued in October 2006 • Pros • Convenient • Difficult to fabricate • Cons • Privacy issues • Security concern • Already in use in some countries www.engadget.com

17. www.gilbarco.com Automatic Payment Methods • RFID-based automatic toll payment • Contactless payment card – pass credit card with imbedded chip near terminal • Cash free / Wireless payment – no card or signature required www.wikipedia.org

18. Future & Innovative Uses • Smartkey-style office “security” • Remote vehicle start • Already in use by Toyota Prius • Fully automated stores • Traffic control • Medical records • Food expiry dates • Driver licenses • Human implants • RFID “toys” www.google/images.com http://en.wikipedia.org/wiki/RFID

19. Emergent Business Models • Manufacturing and provision • Supply chain management • Recycling and reclamation • Data warehousing / management • Litigation / regulation RFID Manufacturing Process (www.stanford.edu/organicelectronicslab)

20. Controversy & Issues • Ethics • Legality • Vulnerability • Environmental health effects • Reliability • A plot to track our every move???

21. Factors to Consider for Accounting and Business in General • Controversy, arguments against use • Technical / architectural challenges • Trend in specific industries for use of RFID • Function and span of RFID

22. Resources Utilized • Wikipedia: http://en.wikipedia.org/wiki/RFID • Design of a RFID case-based resource management system for warehouse operations.   By: Chow, Harry K.H.; Choy, King Lun; Lee, W.B.; Lau, K.C.. Expert Systems with Applications, May2006, Vol. 30 Issue 4, p561-576, 16p. • Explosive RFID-tag growth projected in next 5 years.   Control Engineering, Apr2006, Vol. 53 Issue 4, p28-28, 1/3p. • Graafstra, Amel. (2006) How to Create RFID Access for Your Front Door; Extreme Tech: Build it, Tweak it, Know it; Available: http://www.extremetech.com/article2/0,1697,1938953,00.asp • Kirk, Jeremy. (2006) RFID tags vulnerable to viruses, study says; Computer World; Available:http://www.computerworld.com/mobiletopics/mobile/story/0,10801,109560,00.html • Newitz, Annalee. (2006)The RFID Hacking Underground; Wired; Available: http://www.wired.com/wired/archive/14.05/rfid.html. • RFID. (2006) Definition of RFID Wikipedia, the Free Encyclopedia; Available: http://en.wikipedia.org/wiki/RFID. • RFID Privacy Issues and News. (2006) RFID 1984; Available: http://www.spychips.com/. • ID renders bar codes obsolete.   By: Honaman, J. Craig. H&HN: Hospitals & Health Networks, Apr2006, Vol. 80 Issue 4, p14-14, 1/5p. • RFID Security Worries Need a Reality Check.Computerworld, 5/1/2006, Vol. 40 Issue 18, p34-34, 3/4p. • Risks of RFID.Communications of the ACM, May2006, Vol. 49 Issue 5, p136-136, 1p. • Tuning in to RFID.   By: Borck, James R.. InfoWorld, 4/17/2006, Vol. 28 Issue 16, p31-36, 5p. • World’s First Mobile RFID Tag Encoder. (2006) ADASA RFID Innovation; Available: http://www.adasainc.com/index.html.

23. Thank you! We now welcome questions from the audience.