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Disappointed in RFID Adoption?
The industry needs to look beyond price and fix these other issues.
Jul 05, 2015—
It has been commonly believed, and widely repeated, that the barrier to passive ultrahigh-frequency (UHF) RFID adoption is the cost of the tags. Deeper investigation and critical thinking indicates that while price is a contributing factor in certain applications, there are other problems that the industry must address in order to accelerate the technology's adoption. I believe that there are four challenges limiting RFID adoption: tag cost, industry fragmentation and segmentation, the cost of software infrastructure replacement, and the technology's environmental dependence.
Cost of Tags
If tag cost were the only factor limiting adoption, we would have seen widespread deployment of RFID in closed-loop applications years ago. Since this clearly isn't the case, the argument that price is the problem breaks down. Although price certainly matters in the wide array of existing open-loop applications, ignoring the other issues has been a significant factor limiting RFID's adoption.
Industry Fragmentation and Segmentation
Industry segmentation refers to the wide array of suppliers required to pull together a complete solution. Customers typically find their way to the suppliers of tags and readers, but tags and readers alone do not solve customer problems. A complete RFID solution requires design, readers, antennas, tags, brackets or enclosures, cabling, RFID middleware, application software, software-integration services, installation services and training.
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