Mixing RFID in the Auto-ID Blender

By Chris Hook

I return to the RSS thread for a moment. Consider that, potentially, the use of RSS bar codes on fresh-food items sold to consumers could have a profound impact on the ability to achieve traceability "from farm to customer" in complying with food-safety requirements. In terms of transformation, this would just be the tip of the iceberg when you take into account the need to rethink how metadata is described, stored and shared. On reflection, isn't this form of potentially disruptive (or enabling) technology exactly what companies are examining for item identification and traceability in the pharmaceutical supply chain? Another caution, then, is to watch for "parallel disruptors"—that is, solutions created to serve the needs of one industry that can be adapted, sometimes rapidly, to serve similar needs in another.

Perhaps there's more to this illustration that's worth exploring. We see the humble bar code being augmented in its utility, leveraging existing data-capture infrastructure by carrying additional data useful to trading partners. We now see relatively inexpensive RFID tags with embedded sensors able to log temperature or other environmental parameters, and otherwise doing things bar codes can't. This, of course, is with a keen eye toward leveraging deployed data-capture infrastructure where appropriate; sharing additional data in a well-defined, standardized manner; and identifying opportunities to change business processes.

I see more disruption on the horizon. Perhaps, to some expert practitioners, what I'm about to describe is already near and present in their thinking, because they have delved more deeply into the topic. Enabled by the availability of standards-compliant, high-performance, cost-effective passive RFID systems, companies are examining and starting to appreciate the benefits of item-level tagging. Certain consumer goods, such as prerecorded DVDs and CDs, are already being considered appropriate for item-level tagging. Deployments of item-level tagging systems, which might include smart shelves, will result in numerous business-process changes concerned with, for example, replenishment operations and the handling of goods returned for credit. Each item will be uniquely identifiable and, therefore, traceable at key points of visibility along the supply chain.

As it was with bar codes replacing price stickers, so it will be that passive RFID will replace bar codes in certain applications. The natural and predictable migration from one form of identification and data-capture solution to another will be based on its ability to handle the task more effectively and efficiently—and, thus, to improve business processes.

As such, I recommend you keep an open mind as you postulate how a business problem may be solved, or a business process transformed, or a new revenue opportunity created, all through the use of auto-ID and data-capture systems. It is important not to immediately jump to conclusions regarding which technology to apply, and to maintain a focus on the disruptive nature of new technologies. Consider what the technology-enabled evolution or transformation will mean to your business, and be sure that the solutions developed and deployed are adaptable to meet future needs.

Chris Hook has over 20 years' experience in the creation and application of RFID and automatic data-capture systems. He currently works in Deloitte Consulting's Technology Advisory Services group, delivering professional services concerned with technology innovation—in particular, the application of wireless sense-and-respond systems that enable business process transformation. Chris sits on the advisory board of the University of Arkansas RFID Research Center, of which Deloitte Consulting is a strategic sponsor.