By John Edwards

Feb. 21, 2011—Most companies considering deployment of radio frequency identification systems today are focused on basic visibility: the "what," "when" and "where" of pallets, cases and items. But early adopters are learning that RFID also adds the "why" and "how" to the information pool, transforming the technology from a relatively simple tracking and tracing tool into a powerful knowledge-gathering resource. As RFID vendors and adopters continue to stretch the visibility envelope by designing and deploying ever more innovative systems, they're discovering the technology's value as an increasingly steady and reliable source of high-quality business data.


RFID's ability to deliver intelligence directly from the source is what makes it a particularly valuable knowledge-gathering tool, as well as a good investment. "There is such a thing as too much data, but there's no such thing as too much good data," says Russell Klein, a vice president at Boston-based Aberdeen Group, a technology market research firm. "You can spend $5 million upgrading your ERP [enterprise resource planning] system, but that doesn't give you better information."

Companies that fail to perceive the value of RFID business intelligence risk falling behind the competition, says John Ryan, administrator of the Hawaii Department of Agriculture's quality assurance division, which is evaluating whether RFID-generated environment intelligence can be used to optimize produce transport. "The ones that are successful and stay ahead of the game are the ones that don't wait for the hammer to come and hit them on the head," he says. "They're the ones who are curious about the technologies that are available."