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Feature: RFID in 2004: The Year of Opportunity


Wal-Mart, the U.S. Department of Defense and the many Fortune 100 companies adopting RFID technology are serving the RFID industry a silver platter filled with a multi-billion dollar opportunity … and laden with its share of challenges as well.

These are bold and perhaps intimidating challenges that may tax the resources and vision of some companies, and may even spell failure for others. Certainly we’ve seen our share of hype about RFID, and some early deployments may fall short of the expectations set by people who don’t fully understand this technology’s capabilities.

But this is also a rare opportunity for our industry to show its value and worth, as it’s done in many new markets like contactless payments, by delivering unique solutions to unique business challenges.

James Crawford of Retail Forward once told me “RFID is the oldest emerging market” he’d ever seen. Many companies have failed to survive waiting for the RFID market to mature. Others have carved out a niche and have delivered on the promises of this technology. Today, the market for RFID is about to make an unprecedented surge into a mainstream technology. It’s not emerging anymore – the pace is accelerating rapidly.

All RFID-related companies have a tremendous opportunity for growth in 2004. VARs and systems integrators can deliver new solutions to their customers. Software providers can shine as they face the challenge of harnessing RFID to create new value and functionality for their business solutions. Consulting firms have a chance to introduce their customers to RFID and assist in streamlining business processes.

And for end users, from C-level executives to inventory control managers, logistics managers and others – everybody has a chance to be a hero for implementing a successful RFID application. Consumers can adopt a new technology that can make their lives more convenient, less stressful and more secure. And finally, there are the RFID hardware suppliers – the chip makers, the tag makers, manufacturers of readers, antennas, POS terminals, and even shelving manufacturers - we are all challenged with refining the technology and delivering on the promise. Everywhere you look, opportunity abounds.

But yes, RFID can also be viewed in a light other than one of great promise and opportunity. There is a debate as to whether RFID is a “disruptive” technology. Of course it’s disruptive. But through this disruption, RFID also enables new ideas and unique solutions. We move from “knowing” about the technology to “understanding” the technology.

When I first started working on computers, I certainly considered it a “disruptive” technology (in fact I wanted to throw it away). We just had our growing pains to go through together. It took the computer industry quite a while to mature into adulthood. It will take some time for the RFID market to grow into adulthood.

The entire RFID industry owes a standing ovation to Wal-Mart and the DOD and many other companies embracing this technology. We should thank them for having the confidence in RFID to make a commitment. For us as an industry, it’s tremendously invigorating but it’s also time to work together to get the remaining standards issues resolved. It’s time to alleviate concerns. It’s time for this adolescent industry to grow into adulthood. 2004 is going to be a memorable year for the world of RFID. So, let’s get to work – there’s plenty of opportunity to go around.

By Bill Allen, Marketing Communications Manager, TI-RFid Systems

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Chipco International Bets on RFID Casino Gaming Chips

Smart Chip Chipco International Corporation of Raymond, Maine is betting that casinos worldwide will embrace the benefits of RFID as the company rolls out its newest casino chips embedded with TI-RFid’s new 22mm Tag-it™ smart label inlay.

According to CEO John Kendall, casinos want RFID to track players’ bets -- to make sure they’re placed honestly -- as well as to identify high rollers and those who are losing a lot of money. Casinos can then instantly offer “comps” or complimentary food, drink or hotel stays to ensure repeat business and a positive entertainment experience. Right now, the identification process is done manually by a pit boss, but it’s not always accurate.

Also, preventing employee theft of chips is a high priority, particularly outside the U.S. Although the staff wears uniforms without pockets, they still find ways to sneak chips in their mouths, shoes and in the cuffs of their shirts. In addition to a camera at the staff door, which records the person’s image, by placing an RF antenna around the door, for example, the stolen chips could instantly be read and linked to the perpetrator.

Casinos can also use RFID technology to automate and streamline cash out functions. By outfitting gaming tables with an RFID antCasino Smart Chip enna that reads chips as they are dropped into bins, casinos know instantly what they’ve won that day.

Kendall says the gaming market has long understood the promise of RFID. With the introduction of TI’s smart labels with its etched antenna and circular design as well as volume manufacturing processes, tag prices well below $1.00 are attracting customers. All bets are on that casinos will be putting RFID chips into play in the near future. For more information on Chipco International, please visit www.chipco.com or call 1-207-655-4455.

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TI Forms Strategic Alliance With PSA Security Network

Continuing its growth in the security market, TI-RFid has formed a strategic alliance with PSA Security Network, the world’s largest electronic cooperative, to resell its 13.56 MHz, ISO 15693-compliant RFID badges and readers for access control applications. These products are available in a variety of form factors including cards, keyfobs and labels, as well as wall-plate, mullion, long-range and keypad options for readers.

“Our alliance will create many new business opportunities for advanced RFID-based security and access control systems through PSA’s well-established member network,” said Perry Garvis, business development manager for access control and security products, Texas Instruments RFid Systems.

In order to become one of PSA’s approved vendors, manufacturers such as TI must prove that they are established companies with proven and tested products along with quality customer service and technical support.

“RFID has become one of the hot new technologies in the industry. Both PSA and Texas Instruments will benefit from increased sales and greater visibility to our member companies,” explained Bill Bozeman, CPP, PSA president and CEO.

For further information on PSA Security Network, call 800-525-9422 or visit the company’s Web site at www.psasecurity.com.

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Got Questions About EPC? Get Answers at TI’s EPC Boot Camp

Consumer goods manufacturers, distributors, retailers, software solution providers and other executives looking to gain new insight into the Electronic Product Code (EPC) standards and what these RFID developments mean for their businesses, should attend TI’s upcoming EPC Boot Camp. This one-day program will be held February 12, 2004 at the Marriott Dallas/Fort Worth Airport South in Dallas, Texas, and is designed to give executives the RFID technology and business case basics to help make decisions about deploying EPC-compliant solutions within their enterprise.

The EPC Boot Camp will feature a full day of sessions in which participants will learn about the basics of RFID technology, its applications, what’s behind the new EPC standards, and how to integrate EPC into existing infrastructure.

For additional information about TI’s EPC Boot Camp, contact Shorecliff Communications at 1-800-608-9641, or visit http://www.shorecliffcommunications.com/rfidepc/default.asp?showid=RA07&info=812

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TI-RFid Sponsors 2nd Annual RFID World Conference & Expo

TI-RFid Systems has again signed to be the Signature Sponsor of the 2nd Annual RFID World Conference & Expo, following a highly successful first year drawing more than 500 attendees, exhibitors, and conference presenters. This year, this event that focuses exclusively on RFID technology and applications, will take place April 21-22, 2004 in Denver, Colorado.

The RFID World Conference & Expo, hosted by Shorecliff Communications, is a high profile networking, educational, and technology event that offers hands-on demonstrations of next generation RFID solutions across a broad array of industry applications. RFID World 2004 spotlights solutions for supply chain systems and asset tracking, retail information systems, library and catalog, and access control and security applications, as well as workshops focusing on healthcare and healthcare materials management, industrial automation, cashless transactions and payment systems, and patron management. This event is the perfect forum for RFID partners and providers to initiate proactive planning and improve trading partner relationships with buyers from key industry segments such as supply chain and logistics, retail, smart labels and more.

For more information on RFID World 2004 and for registration details, contact Shorecliff Communications at 800-608-9641 or visit http://www.shorecliffcommunications.com/rfid04/default.asp?showid=R003&info=645
Register on or before February 22, 2004 and receive a 50 percent discount from the regular registration fee. Team discounts are also available for 3 or more attendees from the same company.

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Partner Profile: X-ident technology GmbH


Website www.iq-paper.com
Contact

Martin Vincenz, Vice President of Marketing
martin.vincenz@x-ident.com
+49 2421 597-561

Brief Company Description X-ident technology GmbH, of Dueren, Germany, is an ISO 9000:2001 certified manufacturer of RFID labels, tickets and tags for the automatic identification and tracking of objects and for access control systems. Products are marketed under the brand name IQ-Paper®, with a current production capacity of more than 150 million units per year. X-ident began in the mid 1990s as a small working group and has since grown to become a worldwide operating company of the Austrian Trierenberg group, a producer of special papers with an annual turnover of more than 500 million Euros. X-ident has offices in Germany, the UK, Belgium, Italy, Sweden, India, Singapore, and the United States, and additional reseller and system integrator partners in other countries.
Major Markets Served Logistics (multiple use boxes/pallets), Libraries, Access Control, Asset & Document Tracking, Security Applications (Biometrics & Encryption), Airline Baggage Handling, Customer Loyalty Programs


1) What primary opportunities do you see for RFID today?

X-ident LabelThere are market opportunities today for passive RFID technology in the low-frequency, high-frequency and ultra-high frequency bands. Although the market for low frequency systems (<134kHz) is mature, we still see the potential for growth. There is a large opportunity for high frequency (13.56 MHz) technology for the tracking of goods, and we expect customers to see a significant return on investment, saving time and reducing error rates in their logistic and supply chain processes. Due to the high-profile and well-publicized EPC initiatives with Wal-Mart and the DoD, many may think that ultra-high frequency is the future of RFID. We see opportunities for both HF and UHF solutions, depending on the application and the problems companies are looking to solve. The market is moving faster than in years before and early adopters - retailers such as Wal-Mart, Tesco, Marks & Spencer and Metro AG -- will help to encourage and facilitate the growth of the RFID market in the next two years.

2) Please provide examples of real-world applications that you have worked with customers to implement. (Note: make sure we can discuss these applications publicly.)

As a label converter, we’re kind of a “hidden gem” within RFID-based solutions. We work with technology providers, like TI, as well as system integrators that provide turnkey solutions to end customers. In order to offer the right tag for each solution, we have to understand the specifics of the application, as well as electronics and chemistry. For example, a very different converting process is required if a label must stick on a multiple use, plastic box that is washed with chemical detergents every week, versus a label that will be used on a library book.

During the past two years, we have converted approximately 6 million TI-RFid inlays into 18 different products for 15 end customers. Our tags were used to track high-quality leather products from an Italian manufacturer and to provide access control for a bank. They also helped track printer cassettes in the US and books in Indian and European libraries, and secured R&D laboratories and their assets in India. A significant number of our RFX-identID tags were embedded into plastic trays currently being used by UK-based retailer Marks & Spencer to track chilled food in its supply chain. These examples demonstrate our flexible product development, high quality mass production capability, and our ability to deliver 100% functional products to our customers.

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Further Questions?
Contact our TI-RFid Systems Product Information Center at 1-888-937-6536 or click here and a customer service representative will be in contact with you.


TI Events


NRF-Retail's Big Show 2004
January 11 - 13, 2004
New York, NY USA

Transponder Road Show
January 21, 2004
InterContinental Wien
Vienna, Austria

Tracabilite
Salon-Congress-Forum

January 27- 30, 2004
Paris, France

WINCOR World 2004
Trade Fair and Symposium for Banking and Retail

February 3 - 5, 2004
Fair Ground Welle
Paderborn, Germany


EPC Boot Camp
February 12, 2004
Dallas, TX USA

Transponder Road Show
March 2, 2004
Dorint Kongress Hote
Cologne, Germany

Smart Labels USA
March 16 - 19, 2004
Boston, MA USA

RFID Journal Live
March 29 - 31, 2004
Chicago, IL USA

RFID World
April 21 - 22, 2004
Denver, CO USA