Will Atlas Shrug?

So what happens when these early adopters shrug and say, "We're not prepared to do all of the work so others can benefit?" I don't know the answer. Because of the enormous value of employing RFID and sharing data using EPC standards, the technology could catch on over time, and everyone could wind up benefiting. Or, perhaps things will begin to fracture, and even though a lot of companies have adopted EPC RFID, the efficiencies of using a common standard might never be achieved.

I think we're at a crossroads, and I worry about the latter scenario unfolding, because it would be a lost opportunity of enormous proportions. Imagine if the Internet had evolved differently, with one HTML standard utilized by companies in the chemical industry, another used by those in the retail industry and yet another employed by the electronics sector. Firms conducting business with several industries would have had to purchase special browsers to share information with partners in each sector. Consumers wouldn't bother, so they wouldn't be able to gain information about these various companies.

The missed opportunity will be even greater if companies do not rally around a single set of RFID data-sharing standards. That's because radio frequency identification enables you to collect an enormous amount of information at a very low cost, after the initial infrastructure investment. And huge efficiencies will be possible once the infrastructure is in place and companies can begin sharing information, both internally and with customers and partners, in a standard format.

At present, Wal-Mart suppliers can visit Wal-Mart's Retail Link extranet (thanks to global HTML standards) and download information regarding sales of their products. EPCglobal standards allow for a much greater level of visibility, as well as the ability to share the data automatically. It's the difference between going to a partner's Web site, downloading information, analyzing that data and determining that store No. 123 has an out-of-stock situation, and getting an automated message that just says: "If you don't ship more product direct to store No. 123 by tomorrow, you're popular product will be out of stock."

ThyssenKrupp has the right vision—for the steel industry and for every other sector as well. There are a few other ThyssenKrupps in the world, but here's my concern: that after repeated efforts to engage customers and competitors to develop standards that would benefit everyone in their industry, they might get no response, shrug it off and decide to seek out other ways to improve the way they do business. And if that happens, who could blame them?

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.