Good Strategy for a Bad Economy

I'm not talking about using just one frequency and one protocol for all applications. That's unlikely to work, any more than deploying one type of computer for every use in your company would. I'm referring to the building of an infrastructure that might include active and passive systems, ultrahigh-frequency (UHF) and high-frequency (HF), with each type of RFID system delivering more than one benefit. And all of these systems would be integrated on the back end so data could be used regardless of which system it came from.

As an industry, we have not done a very good job of promoting RFID as infrastructure. But it's important to think of the technology in this way if you want to maximize your long-term ROI, keep your total cost of ownership low and get the most benefits from using RFID. I recommend companies develop an RFID strategy that supports their overall corporate strategy.

If you are the low-cost producer in your industry, you need to develop an RFID infrastructure that will let you take as much cost out of your processes as possible. And if you are a high-end clothing retailer, you should develop an infrastructure that will allow you to continually improve your customers' shopping experience. Putting each new application into this strategic framework will enable companies to choose the right RFID and back-end systems for the long term.

So by all means, continue searching for small projects that can save your company money now—but don't lose sight of the bigger picture. In seizing those short-term opportunities, make sure you're building an infrastructure that you can add to over time, and that you gain additional benefits from. That way, by the time the next economic downturn comes along, you'll have a strategic edge on your competitors, ensuring that the impact of that downturn will be a lot harder on them than on you.

Mark Roberti is the founder and editor of RFID Journal. If you would like to comment on this article, click on the link below. To read more of Mark's opinions, visit the RFID Journal Blog or click here.