))) RFID Pundits Agree –
The Time for RFID is Now

))) DALLAS, TX (June 2, 2003)

Industry analysts squared off in a debate at the recent RFID World conference in Fort Lauderdale, Florida, on the hype versus reality of the low-cost, high-volume RFID tag, but ultimately agreed that the issue is not the cost of the chip but rather the business value and opportunities created by the technology. “My advice is to stop worrying about the penny tag – it’s simply not relevant,” implored James Crawford, VP of Retail Forward. “Rather than waiting for tag prices to drop,” manufacturers and retailers alike should focus on developing the business rules for collaboration and the use of real-time data in supply chain and inventory management.

In his presentation “The Truth About Low-Cost RFID in Retail,” Crawford indicated that in item-level retail tracking, data infrastructure is “the missing link” between RFID hardware and enterprise applications, such as enterprise resource planning. He argued, “The infrastructure between the readers and enterprise applications must handle an immense amount of data,” noting that if the world’s largest retailer were to tag at the item level, more that 7 million terabytes of data would be created in a single day – more than what can be handled by networks today. Crawford sees this data management issue as the greatest challenge to overcome for item-level RFID tagging, rather than current tag costs. However, he reiterated, “Current thinking about the penny tag blinds retailers and manufacturers to the real, tangible benefits of nearer-term RFID solutions.”

Crawford’s sentiments were echoed by his counterpart in the RFID World Crossfire Presentation, Jim Ferguson, VP of U.S. Business Development for Innovision Research & Technology. “There are a wealth of opportunities out there [for RFID],” Ferguson said. “You need senior level commitment because it’s a major strategic move to adopt RFID,” he continued. Ferguson also indicated that companies should not think solely about the cost of an RFID solution, but instead should consider RFID as a component of a broader technology investment and solution. Most importantly, he urged companies to work directly with potential customer’s senior management to determine if there is a technology path and a cost-point for an RFID-based solution. “It’s not the cost of the chip, it’s the value brought back,” said Ferguson.

System developers, vendors, and end-users may have come to RFID World with a “wait-and-see” attitude, but the general feeling at the show was quite the opposite. In his keynote speech “Get Ready, Get Going: Making the Business Case for RFID,” David Slinger, VP of Texas Instruments noted that real ROI is not measured against a return on the expense and investment – instead it should be measured against how fast a company gains strategic or competitive value. The key areas of real ROI for RFID, according to Slinger, include reducing risk, recapturing time and building productivity, harnessing information and gaining that competitive edge.

Central to Slinger’s message, and an overarching theme of the conference, was that RFID is the core enabling technology that is changing the way companies do business, creating new markets (such as wireless payments), and providing business and revenue opportunities today. More than 500 participants attended the first annual RFID World Conference & Exhibition, May 13-14, 2003 at the Fort Lauderdale Convention Center in Ft. Lauderdale, Florida. RFID World 2004 will be held in Dallas, Texas in April.