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Radio Frequency ID

Radio Frequency ID. Presentation By: Group 3 Nikki Baker Lauren Bright Julie Kim Kristin Harbin Jessica Tipp. Introduction. How many people have a car…. RFID is everywhere!. Objectives. What is RFID History How RFID works Case Studies Walmart GoSt.Louis Healthcare Animals

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Radio Frequency ID

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  1. Radio Frequency ID Presentation By: Group 3 Nikki Baker Lauren Bright Julie Kim Kristin Harbin Jessica Tipp

  2. Introduction How many people have a car…

  3. RFID is everywhere!

  4. Objectives • What is RFID • History • How RFID works • Case Studies • Walmart • GoSt.Louis • Healthcare • Animals • Issues and Concerns • Future Trends

  5. Overview • http://www.youtube.com/watch?v=9Om7TtgNlwM (time: 1:50-4:11) • http://www.youtube.com/watch?v=9Om7TtgNlwM (time: 1:50-4:11)

  6. Brief History • Radar discovered in 1935 • 1950-1960 Companies began to use for security purposes • 1970s - First patent for an active RFID tag, Gov’t began to use to track nuclear materials, Agriculture began to use to track cows • Today it is used all over the place http://www.rfidjournal.com/article/view/1338/1

  7. How RFID works • Divided into four parts • A scanning antenna • Puts out radio-frequency signals • Provides a means of communicating with the RFID tag • It provides the RFID tag with energy to communicate • A transceiver -reader • A transponder - the RFID tag • A writer http://www.technovelgy.com/ct/Technology-Article.asp?ArtNum=2

  8. Parts of RFID • http://www.aimglobal.org/services/RFIDSpotlight.asp (middle of video)

  9. How RFID Works RFID Tag (Transponder) Scanning Antenna Writer Transceiver http://www.technovelgy.com/ct/Technology-Article.asp?ArtNum=2

  10. Types of RFID Tags http://www.technovelgy.com/ct/Technology-Article.asp?ArtNum=47, www.rfidhut.com/pages/How-much-does-RFID-Cost.html

  11. Tag Frequency http://www.rfidradio.com/?p=16, www.barcoding.com/rfid/private/barcoding-inc-RFID-Report.pdf

  12. Cost of RFID • Global • RFID spending including all hardware, systems and integration is estimated to have reached $4.96 billion worldwide in 20071 • RFID Systems • UHF Readers cost between $500-$2000 • A low frequency reader can be under $100 • Antennas cost $250 and up • Tags cost anywhere from less than $1 to $50 • Many more administrative and setup costs2 1) http://www.rfidjournal.com/faq/20, viewed March 23, 2009 2) Hasselbacher, N. (2008). “RFID: It’s all in the numbers,” Converting Magazine, Vol. 26, Iss. 12, pg. 38.

  13. Began in 1962 in Rogers, Arkansas • Low-Cost Focus • Employs more than 2 million associates worldwide • 1.4 million in the U.S. • Serve more than 100 million customers per year http://walmartstores.com/AboutUs, viewed April 8, 2009

  14. RFID at Wal-Mart 1) Krotov, V. (2008), “RFID as a Disruptive Innovation,” Journal of Theoretical and Applied Electronic Commerce Research, Vol.3, Iss.2, pg. 44, 16 pgs. 2) Gaudin, S. (2008), “Some suppliers gain from failed Wal-Mart RFID edict,” Computerworld. • June 2003 • Wal-Mart announced that its suppliers would have to RFID tag crates and pallets as an improvement over barcodes1 • Top 100 suppliers were supposed to comply by January 20052 • Wal-Mart was the first major retailer to demand suppliers use RFID, though the technology is 50 years old2

  15. Benefits of RFID for Wal-Mart 1) Krotov, V. (2008), “RFID as a Disruptive Innovation,” Journal of Theoretical and Applied Electronic Commerce Research, Vol. 3, Iss.2, pg. 44, 16 pgs. 2) Hardgrave, B.; Langford, S.; Waller, M.; and Miller, Rl (2008), “Measuring the Impact of RFID on Out of Stocks at Wal-Mart,” MIS Quarterly Executive, Vol. 7, No. 4, pgs. 181-192. • Save billions of dollars in supply chain efficiency1 • Reduce out of stock items • Average U.S. out-of-stock rate: 8% • Estimated potential lost sales from out of stock items • 3.4% for retailers • 2.6% for suppliers2

  16. Out of Stock Causes Hardgrave, B.; Langford, S.; Waller, M.; and Miller, Rl (2008), “Measuring the Impact of RFID on Out of Stocks at Wal-Mart,” MIS Quarterly Executive, Vol. 7, No. 4, pgs. 181-192.

  17. Out of Stock Consumer Responses Hardgrave, B.; Langford, S.; Waller, M.; and Miller, Rl (2008), “Measuring the Impact of RFID on Out of Stocks at Wal-Mart,” MIS Quarterly Executive, Vol. 7, No. 4, pgs. 181-192.

  18. RFID and Out-Of-Stocks • University of Minnesota Study • 24 Wal-Mart stores • 12 RFID enabled • 12 Control stores • Watched improvements over 29 weeks • Concluded that RFID is responsible for 21% improvement in out-of-stocks Hardgrave, B.; Langford, S.; Waller, M.; and Miller, Rl (2008), “Measuring the Impact of RFID on Out of Stocks at Wal-Mart,” MIS Quarterly Executive, Vol. 7, No. 4, pgs. 181-192.

  19. Daisy Brand Dairy Products 1) Gaudin, S. (2008), “Some Suppliers Gain from Failed Wal-Mart RFID edict,” Computerworld, www.computerworld.com, viewed February 25, 2009 2) Weier, M. (2008), “Wal-Mart Gets Tough on RFID,” InformationWeek, http://www.informationweek.com/story/showArticle.jhtml?articleID=205900561, viewed February 25, 2009. Fully compliant with Wal-Mart’s mandate Extended RFID into other parts of their business process as well Claim that RFID cut in half the time to load delivery trucks1 Knows when pallets arrive at Wal-Mart and when they are unloaded Can tell if promotions take place as planned2

  20. Texas Instruments Inc. • Fully implemented Wal-Mart’s mandate • Only uses the technology on shipments going to Wal-Mart • Reduces their hardware investment • Compliant for under half a million dollars Gaudin, S. (2008), “Some Suppliers Gain from Failed Wal-Mart RFID edict,” Computerworld, www.computerworld.com, viewed February 25, 2009.

  21. Problems with Implementation • Wal-Mart has had difficulty getting suppliers to implement RFID • The price is large enough that suppliers are taking their chances with being non-compliant • $15,000-$20,000 just for tags, readers, and middleware for a small supplier • They also have to pay for training and handling the new RFID information Gaudin, S. (2008), “Some Suppliers Gain from Failed Wal-Mart RFID edict,” Computerworld, www.computerworld.com, viewed February 25, 2009.

  22. Wal-Mart is Tired of Suppliers Not Taking Them Seriously 1) Gaudin, S. (2008), “Some Suppliers Gain from Failed Wal-Mart RFID edict,” Computerworld, www.computerworld.com, viewed February 25, 2009. 2) Weier, M. (2008), “Wal-Mart Gets Tough on RFID,” InformationWeek, http://www.informationweek.com/story/showArticle.jhtml?articleID=205900561, viewed February 25, 2009. 3) Wailgum, T. (2008), “Wal-Mart is Dead Serious About RFID,” CIO, http://www.cio.com/article/print/173702, viewed February 25, 2009. • January 2008 • Announced that suppliers will be charged a $2 fee for each pallet shipped to the Sam’s Club distribution center in DeSoto, Texas without an RFID tag1 • Sam’s will then affix a tag to the pallet2 • These tags cost suppliers $.10-.25 per tag • The fee will escalate along with the length of non-compliance, up to $3 per tag3

  23. New Developments 1) http://www.rfidnews.org/2008/11/06/walmart-to-require-rfid-tagging-from-chinese-suppliers, viewed February 25, 2009. 2) Hardgrave, B.; Langford, S.; Waller, M.; and Miller, Rl (2008), “Measuring the Impact of RFID on Out of Stocks at Wal-Mart,” MIS Quarterly Executive, Vol. 7, No. 4, pgs. 181-192. • January 2009 • Wal-Mart requires Chinese suppliers to use RFID tagging to label shipments • Wal-Mart has 1,000 Chinese suppliers • Because of recent safety concerns, these Chinese suppliers are required to include information such as their name and factory info, as well as any subcontractors involved in production1 • 2009 • RFID tags on individual selling units in Sam’s Club2

  24. GoStLouisExecutive Director: Nancy Lieberman • Non-profit organization, encourages individuals and families in the region to adopt a healthy lifestyle by getting fit, staying active, and eating a nutritional diet year round • Founded in 2000 • In 2008 had 18,000 participants • Uses RFID technology for its timing of races www.gostlouis.org, viewed March 20, 2009 and Interview of Nancy Lieberman

  25. ChronotrackPartner: Bob Finnegan • Business started in August 2008 • Has vast knowledge of RFID technology and used this knowledge to create a new way to time races. • Innovated the D-Tag Interview by Bob Finnegan

  26. D-Tag • Updates race HF chip technology • Uses a disposable UHF tag • Cost and time savings • Only costs 15 cents • First time that GoStLouis used this technology • http://www.youtube.com/watch?v=IB02LEqQkLU http://www.chronotrack.com/home/,, viewed March 20, 2009 and interview by Bob Finnegan

  27. Chronotrack • In 2009 will be the number 1 timing system in US. • Future of Chronotrack - working on Triathlons and other uses but we will have to see what they do. Interview by Bob Finnegan

  28. RFID in Healthcare

  29. Main uses of RFID in Healthcare Real Time Locating Systems (RTLS) • Patient tagging • Locating staff, visitors, and assets Error Prevention • Theft prevention and cost control • Pharmaceuticals anti-counterfeiting • Recording procedures (e.g. for defense of lawsuits) • Drug trials compliance • Patient compliance (e.g. taking drugs) • Track and trace most medicines, consumables, and assets http://www.idtechex.com/research/articles/rapid_adoption_of_rfid_in_healthcare_00000470.asp

  30. “An exploratory study of radio frequency identification (RFID) adoption in the healthcare industry.” The Global market for RFID tags and systems in healthcare in 2006 was $90 million Estimated to steadily increase to $2.1 billion by 2016 Problems leading to marginal adoption: high implementation and operation costs lack of standardization unawareness of importance Lee, C., Shim, J. “An exploratory study of radio frequency identification (RFID) adoption in the healthcare industry.” European Journal of Information Systems: Including a Special Section on Healthcare Information, Vol.16, Iss.6, pg.712-724.

  31. RFID Adoption in Healthcare Web-based survey administered to “decision makers” at 865 US hospitals 126/865 completed surveys 56/126 of the respondents were CIOS Lee, C., Shim, J. “An exploratory study of radio frequency identification (RFID) adoption in the healthcare industry.” European Journal of Information Systems: Including a Special Section on Healthcare Information, Vol.16, Iss.6, pg.712-724.

  32. RFID Adoption in Healthcare Factors studied Technology push Perceived benefits Vendor pressure Need pull Performance gap Market uncertainty Presence of champions Lee, C., Shim, J. “An exploratory study of radio frequency identification (RFID) adoption in the healthcare industry.” European Journal of Information Systems: Including a Special Section on Healthcare Information, Vol.16, Iss.6, pg.712-724.

  33. RFID Adoption in Healthcare Results: Presence of champions- most critical factor in adoption of RFID Performance gaps from existing systems influence RFID adoption Technology knowledge- significant moderator of adoption Organizations may adopt RFID during market uncertainty Financial resources- non-determinant of RFID adoption Perceived benefits of RFID- important driving factor RFID is not expected to reduce overhead costs Vendor pressure does not lead to RFID adoption unless marketed to top managers RFID is in an early adoption stage Lee, C., Shim, J. “An exploratory study of radio frequency identification (RFID) adoption in the healthcare industry.” European Journal of Information Systems: Including a Special Section on Healthcare Information, Vol.16, Iss.6, pg.712-724.

  34. “Key drivers for the continued use of RFID technology in the emergency room” ABI research forecasted that in 2007 revenue in RFID software and services would decrease to $3.1 billion, 15% decrease from 2006 Demand for RFID technology in healthcare has not been very strong Expectation-confirmation model (ECM) theory to assert that improving users’ experience with IT can enhance satisfaction and lead to continued usage Survey given to 85 caregivers who worked in the ER in 5 hospitals in Taiwan Chen, C., Wu, J., Sheng Su, Y., Yang, S. “Key drivers for the continued use of RFID technology in the emergency room.” Management Research News, Vol.31, Iss.4, pg. 273-288.

  35. RFID Adoption in Healthcare • Benefits of RFID in hospitals: • Automated admitting • Reduction in medical errors • More efficient screening and treating processes • When RFID is implemented • Patients can be tracked from time they enter the hospital to the time they leave • Wristbands are scanned and all medications can be tracked • Entrance/exit to specific area can be monitored Chen, C., Wu, J., Sheng Su, Y., Yang, S. “Key drivers for the continued use of RFID technology in the emergency room.” Management Research News, Vol.31, Iss.4, pg. 273-288.

  36. Results • When the following objectives are met an experience with RFID can improve caregiver satisfaction levels • Caregivers must perceive RFID to be useful • RFID must have good interoperability • RFID must provide some relative advantage • Improved satisfaction leads to continued use Chen, C., Wu, J., Sheng Su, Y., Yang, S. “Key drivers for the continued use of RFID technology in the emergency room.” Management Research News, Vol.31, Iss.4, pg. 273-288.

  37. RFID and Animals Livestock tracking- cattle, pigs, and sheep Used for animal health and wellness, tracking and tracing, and carcass-quality information National Animal Identification System (NAIS) proposed by the USDA in 2003 Producer participation is voluntary except in MI where cattle have to be tagged in hopes to eradicate bovine tuberculosis http:www.rfidjournal.com/article.view/3725/2, viewed April 2, 2009

  38. RFID and Animals In 2007 World RFID spending on farming and animals was $233 million. In 2017 it is estimated to reach $2.93 billion China is the largest RFID market largely due to animal population Asian countries are developing new high frequency tags with 50-400% greater read range. http:www.rfidjournal.com/article.view/3725/2, viewed April 2, 2009

  39. RFID and Animals Current tags used Passive tags, low frequency, with a coil antenna Can withstand water and damage Must be located within a few inches of the reader so producers have to force animals through checkpoints Impossible to read the tags in large numbers simultaneously New tag just released Feb. 2, 2009 RFID vendor Digital Angel Battery-powered r.Tag Can be read up to 100 ft away and reader can read up to 310 tags at once Weatherproof Costs about $3.50/tag http:www.rfidjournal.com/article.view/4581/1, viewed April 2, 2009

  40. RFID and Animals Humane Society of the US has long been the biggest user of RFID microchips, it tags and scans thousands of animals per year Problems occur because the various tags used operate at different frequencies Pets are sometimes euthanized before being identified due to this problem http:www.rfidjournal.com/article.view/1976/1, viewed April 2, 2009

  41. Issues Research study found that only 13.7% of respondents knew about RFID technology1 Another study done in 2005 found that approximately 75% of consumers interviewed had no idea what RFID was2 Often times, consumers are not even aware they are being “tracked” by RFID devices At the very least, consumers need a basic idea of what RFID is and does2 • Razzouk, N., Seitz, V., and Nicolaou, M. (Spring 2008), “Consumer Concerns Regarding RFID Privacy: An Empirical Study”, Journal of Global Business and Technology. Vol. 4, Iss.1; pg. 69, 10 pgs • Glasser, D., Goodman, K., and Einspruch, N. “Chips, Tags and Scanners: Ethical Challenges for Radio Frequency Identification”

  42. Tracking With RFID, anything can be tracked Consumer Purchases Spending habits and preferences Currency Chips embedded into credit cards People Hospital patients, equipment State drivers license, passports Willey, Lorrie. (2007), “RFID and Consumer Privacy: Let the Buyer Beware!”, Journal of Legal, Ethical and Regulatory Issues, Vol. 10, Iss. 2; pg. 25, 13 pgs.

  43. Privacy • What defines privacy? • Laws will keep changing as society keeps changing • Why do we care as managers? • Violating privacy of consumers leads to distrust • Benefits of having consumer information leads to competitive advantage and market share • Viagra • Cheese • Consumers benefit from the conveniences from better CRM Razzouk, N., Seitz, V., and Nicolaou, M. (Spring 2008), “Consumer Concerns Regarding RFID Privacy: An Empirical Study”, Journal of Global Business and Technology. Vol. 4, Iss.1; pg. 69, 10 pgs Chopra, S. and Sodhi, M. (2007), “In Search of RFID’s Sweet Spot”, Wall Street Journal/MIT Sloan. <http://sloanreview.mit.edu/business-insight/articles/2007/1/4913/in-search-of-rfids-sweet-spot/> http://sickfacebook.com/images/facebook_privacy.gif

  44. Main Concerns Physical Border security? Bodily harm? Tumors? Problems in Hospitals Malfunctions in equipments False alarms Landro, Laura. (2008), “The Informed Patient: The Hospital Is Watching You”, Wall Street Journal. (Eastern Edition), Nov 12, 2008. pg D.1.

  45. State Licenses & Passport Cards Enhanced Driver’s Licenses Available in Washington since Jan. 2008 and in NY since Sept. 2008 Other border states – MI, VT, AZ, intend to offer them as well Naone, Erica. (2009), “RFID’s Security Problem”,Technology Review. Jan/Feb 2009, Vol. 112, Iss.1; pg 72, 3 pgs.

  46. State Licenses & Passport Cards Cards use electronic product code (EPC) tag, much like bar codes. Tags are inexpensive and under ideal conditions can be read from about 150 feet away. Identification cards can be read at longer range than many other RFID tags and people are more likely to carry them at all times. If you can get identification numbers out of the cards, then its relatively easy to counterfeit them, by loading a stolen ID number onto a blank, off-the-shelf chip. Naone, Erica. (2009), “RFID’s Security Problem”,Technology Review. Jan/Feb 2009, Vol. 112, Iss.1; pg 72, 3 pgs.

  47. State Licenses & Passports EPC tags can be disabled when a reader issues a “kill” command. Could cause disruption if someone killed a large number of cards in a group. Attacker could also use this tactic to harass individuals since a killed card is likely to draw suspicion. Naone, Erica. (2009), “RFID’s Security Problem”,Technology Review. Jan/Feb 2009, Vol. 112, Iss.1; pg 72, 3 pgs.

  48. Consumer Privacy CASPIN and American Express In 2005, AmEx filed an application with the US Patent Office for a new “Method and system for facilitating a shopping experience” – in other words, would monitor the shopping patterns of its users with respect to time, and location within a store Razzouk, N., Seitz, V., and Nicolaou, M. (Spring 2008), “Consumer Concerns Regarding RFID Privacy: An Empirical Study”, Journal of Global Business and Technology. Vol. 4, Iss.1; pg. 69, 10 pgs.

  49. Consumer Privacy Broken Arrow Affair Wal-Mart in Broken Arrow, OK and Procter & Gamble in Cincinnati, OH - 750 miles away from each other Wal-Mart placed technology in stores so that researchers from P&G could detect when Max Factor Lipfinity lipsticks were removed from the shelves Once taken from the shelf, a video monitor evaluated how consumers handled the product without their knowledge Hildner, Laura. (year unknown) “Defusing the Threat of RFID: Protecting Consumer Privacy Through Technology-Specific Legislation at the State Level”, Harvard Civil Rights-Civil Liberties Law Review,Vol. 41; pg. 133, 44 pgs.

  50. Consumer Privacy Concerns: Increased threat of identity theft, and lack of safeguards to protect people’s identities. According to Cohen, “the average American is in at least 50 databases… and that’s just counting commercial databases” Razzouk, N., Seitz, V., and Nicolaou, M. (Spring 2008), “Consumer Concerns Regarding RFID Privacy: An Empirical Study”, Journal of Global Business and Technology. Vol. 4, Iss.1; pg. 69, 10 pgs.

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