Microsoft RFID Industry Focus

1. Microsoft RFID Industry Focus

2. Microsoft RFID Vision Deliver low cost, innovative, standards-based RFID systems that are easy to deploy and manage • Create an ecosystem for scalable, deployable, lowest cost business solutions powered by RFID • Deliver Microsoft Platform to enable business applications • Lowest TCO • Inclusive (RFID, Barcodes, EPC, GTIN, etc.) • Hardware agnostic • Scalable, Deployable, Extensible • Develop business solutions for SMB • Support and participate in standards development and deployment • EPC Global (UCC, EAN) • Others (ISO, AIAG…)

3. Requirements of the Platform • Comprehensive, extensible programming model and tools • Easy to deploy and manage • Secure – by default • Reliable – available, fault-tolerant • Scalable – up and out • Rich, consistent user experience (IT Pro, Developer, Business User) • Componentized functionality but “better together” • Integration with existing systems

4. RFID Strategy • Partner driven strategy for enterprise customers • Provide the base platform: Windows Server, SQL Server, BizTalk Server, XML WebServices, WinCE & XPe • RFID enable Platform for partners to develop business solutions • RFID enable Microsoft Business Solutions for SMB RFID Engagement • RFID deployments at major retailers • Engaged in many pilots with partners • EPC Global Membership • RFID Partner Council • Architectural guidance for ITPros and Business Architects RFID Views • RFID compliance is an increasing priority for Enterprise customers • Businesses are looking for complete RFID enabled solutions • Partners are looking for an enabling platform • Item level adoption • Standardization and privacy concerns must be addressed to facilitate rapid adoption Microsoft & RFID

5. RFID Vertical Industry Solutions

6. Pallet & Case Level • Most of the early adoption • Product visibility across the supply chain • Smarter operations, operational efficiencies • Inventory reduction • Product availability in stores, backrooms, DCs Item level scenarios • Product availability on the store shelf • Item level inventory visibility at the store level • Smarter Shopping, customer convenience • Customer service, service errors (pharmacies) RFID in Retail

7. RFID in Retail – innovation at the edge of the enterprise – The Future Store Store • ePOS • Self Checkout • Unattended Checkout • Electronic Signage • Digital Assistants • Smart Shelves • Cross-Channel integration • RFID Consumers Merchandise Supply Chain Core Operations • ERP • Merchandising Systems • Inventory Management • Promotions Management • Traditional Replenishment Systems • Human Resource Systems • Labor Management • Enterprise Data Warehousing • Multi-Channel Shopping (shop online/buy offline) • Assisted Shopping • Personal Digital Assistants • Mobile/Wireless-Enabled • Closed Loop Systems for Synchronizing Supply and Demand • Information Transparency Across Trading Partners • RFID

8. Clinical Development Clinical trials and materials management Avoiding medical errors Dosing and protocol compliance Forms completion / data integration Lab sample tracking Medical device status, management, data interchange (“life of a device”) Public Product Use Dosing compliance Labeling Dosing information/reference Product history/genealogy Improper importing/exporting Sales & Marketing Anti-theft and shrinkage management Product tracking and distribution compliance Anti-counterfeit and fraud detection Shipping and inventory management Regulatory compliance Manufacturing & Supply Chain Shipping and inventory management Product recall Improper importing/exporting Manufacturing execution/efficiency Quality management Maintenance management RFID in Life Sciences

9. Business Benefits • Ability to identify individual bottles, containers of Rx • Remotely track movement and location of drugs • Provide assurance that the ID on the Rx has not bee forged • Reduce gray market sales • Increase efficiency of clinical trial by reducing start up delays, reduce trial errors and trial dropouts EPC Drivers • Rx counterfeit – 88% seized Rx are not approved US use • 40% Rx made in Mexico, Argentina, Colombia, India, China, may be counterfeit • Inventory management • Regulatory compliance • Product return, recalls RFID in Pharmaceutical Industry

10. Technology Arena Showcase Arena RFIDCenter ofExcellence RFID Roundtable Arenas of Excellence

11. Showcase Arena Manufacturing Distribution Retail Consumer Efficient use of capital Cycle time, Labor cost reductions Out of stock / Inventory Mgmt Convenience • Embedded tracking • Location tracking • Condition • Raw material / goods receiving • VMI • Fixed Asset Management • Tools, Shelf Mgmt • Receiving, Put away • Pick, Pack, Trace • Asset management • Warehouse management • Smart shelves • Fork lifts • Back room receiving • Product Availability • Smart Shelves • Product information • Planogram planning • Assortment • Automatic payments • Loyalty cards • Returns • Warranties • After sales • Home appliances • Assisted living • Asset management • Insurance • Recycling RFID Showcase Arena • Full-scale supply chain scenarios • Manufacturing – Raw material goods receiving, WIP replenishment • Distribution – Warehouse Management, pick, pack, trace and putaway • Retail – Smart Shelves, POS, loyalty cards, planogram compliance • Consumer– Returns and warranties, recycling and disposal

12. New TechnologyConcepts Tags andReaders RFID Server andInfrastructure Interface and Deployment • Tag IDs and numbering • Air protocols • Advanced Tag Capabilities • Software APIs • Security • Interoperation across vendors • Compliance with standards • Interference and noise • Singulation • Device driver development • Event data conditioning • Reader management • Architecture standardization • API definition and refinement • Needs analysis • Privacy RFID Technology Arena • Research and technology development • Bring components and people together • Develop shared understanding of issues Technology Arena Research Hardware Platforms Applications

13. Shared Vision Empowerment Through Knowledge Action in Partnership • General areas of technology • Special topics of focused interest • Whitepapers • Draft standards proposals • Scenario planning • Symposia • Formal courses and hands-on workshops • Self-study materials • Speakers’ bureau • Outreach to industry and consumers • Rants and Raves • Review standards proposals • Partnership in standards bodies • Planning for the Center of Excellence RFID Roundtable • Partners in Thought Leadership • Partners in Technology • Partners in Business RFID Roundtable Working Groups Education Community

14. TAP & EAP here in Taiwan • Technical Alliance Program (TAP) and Early Adopter Programs (EAP) • A coordinate group of programs to offer a wide range of services to our Customers and Partners. • Working on Hardware and Hardware interface solutions. • Integrated Software solutions. • Bridging these two realms together. • Full support from Corporate product teams for these programs here in Taiwan.

15. Conclusion: Microsoft’s Value Add • Provides Flexible RFID Platform • Provide linked solutions between existing systems and RFID • Modify existing system to an RFID Enabled one. • Extensive Partner Network • Fast Time-To-Market Solutions • Real-World Experience

16. © 2003 Microsoft Corporation. All rights reserved. This presentation is for informational purposes only. Microsoft makes no warranties, express or implied, in this summary.