Jan 01, 2004According to a recent Accenture study, companies with the best growth in earnings reinvest up to 10 percent more of their IT budgets on upgrading to newer technologies than does the average company.
One area of technology innovation in which savvy companies are investing is Silent Commerce. This refers to business benefits derived from new types of applications that can track and monitor objects remotely, without people being involved. It is enabled by emerging tagging and tracking technologies, such as radio-frequency identification, combined with continuous Internet connectivity.
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Accenture’s Silent Commerce solutions provide smart, proven approaches for transforming back-office business processes and customer support and service activities. Accenture collaborates with customers to identify innovative solutions with the highest potential for payoff for their specific situations.
These technologies don’t have to be new or bleeding edge. Basic Silent Commerce applications have been quietly permeating our daily routines over the past few years. If you have a commuter pass that enables you to drive through freeway tollbooths and be billed later, you are using Silent Commerce. Every time you step across an anti-theft threshold in a store doorway, you are experiencing a simple form of Silent Commerce.
Many private- and public-sector companies are already starting to use more advanced Silent Commerce solutions to create new value for customers, transform supply chains, improve the efficiency and performance of existing operations, and save money. Here are some examples.
Transforming the supply chain
Accenture worked with a leading manufacturer of construction equipment to maximize the utilization of its dealers’ rental fleets. To streamline the process of checking rental equipment in and out, the solution connects inventory, service and delivery functions seamlessly in real time, anywhere rental store assets are deployed.
The system uses handheld computers, RFID transponders and next-generation dispatch and routing applications. All pieces of inventory are tagged with RFID transponders. Dealer yard employees have been given personal digital assistants (PDAs) that feature an RFID reader and WiFi (wireless fidelity) card. Employees conduct inventory in real time and are automatically alerted via their PDAs when new inventory enters the yard.
Delivery staff also use PDAs. The devices provide electronic maps and real-time routing. They also serve as sign-off sheets for customers and have a camera component so that the delivery person can capture images of any damage when picking up equipment. Dealers are now able to track equipment more efficiently and serve customers better. Improving operations
A large tobacco manufacturer is using Silent Commerce for lot tracking to get ahead of strict U.S. Food and Drug Administration regulatory measures. Accenture recommended that the company start by piloting the use of RFID in its plants to track the filling of reusable containers with cut tobacco, subsequent movement of the containers, and re-introduction of the containers into the manufacturing process to feed the production of finished goods.
RFID is used to automate the process of capturing batch production information for lot tracking. This eliminates the manual scanning typically required with a bar code solution. Through the use of container and location-based RFID tags interacting with readers on material-handling equipment, Silent Commerce ensures enhanced quality and control over the manufacturing process by preventing the introduction of incorrect material.
The manufacturer implemented the solution following a successful pilot. The company now has an accurate and comprehensive product genealogy to meet future regulatory requirements — a factor vital to its continued survival and future as a top industry player.
Saving money
Star City Casino in Sydney, Australia, manages a wardrobe inventory numbering 80,000 uniforms valued at approximately US$1.8 million. The casino found a groundbreaking answer to its laundry-tracking problem by embedding RFID tags in the waistband, shirttail or collar of each uniform. Working closely with Star City management, Accenture designed and delivered a first-ever wardrobe control system, which tracks uniforms from point of issue to cleaning machines via strategically placed readers.
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detect RFID tags within 10 to 30 centimeters, enable Star City to achieve further savings in annual labor costs formerly associated with more manually intensive bar codes.
This Silent Commerce solution ensures an accurate inventory of all 80,000 garments at all times. “The wardrobe management system demonstrates the versatility of Silent Commerce,” says Star City’s CIO. “By automating a labor-intensive manual process, we cleaned up in the savings department with fewer purchases, reduced labor costs, and fewer lost garments.”
A measured start
Several advancements in the Silent Commerce arena are going to make it easier for companies to take advantage of it. Improvements in manufacturing technology and the increased scale of adoption are going to drive down the cost of RFID tags, and Electronic Product Codes (EPCs) will become a reality.
With a dedicated Silent Commerce Center to conduct research and create business applications related to intelligent objects, Accenture is the best placed partner to help companies grasp and adopt Silent Commerce. It is a sponsor and active member of EPCglobal, which is charged with establishing and supporting the EPC Network as the global standard. It also supported the Auto-ID Center, which developed the EPC and related technologies.
Monitoring Silent Commerce vendors, products and trends for more than seven years, Accenture used its insight to design a structured methodology to help you get started. Here’s how you can get onboard.
Step 1
Targeting value: Accenture provides tools and expertise to help you identify where Silent Commerce can benefit your entire value chain, estimate the implementation costs and calculate your return on investment. Accenture has already performed this exercise for several of the leading retail companies in Europe and the United States.
Step 2
Building pilots: Using capabilities acquired by developing a Silent Commerce infrastructure, Accenture can rapidly evaluate middleware solutions and build customizable pilot applications to test and refine hypotheses about costs, potential benefits and changes to work processes after implementation. Accenture has found that when conducted early, pilots offer companies insight into issues such as categories most frequently out of stock or ways of improving specific operations and processes. Accenture is currently conducting pilots for several clients that also identify requirements for integrating Silent Commerce technologies with legacy applications and processes.
Step 3
Scaling the deployment: Following a successful pilot, Accenture helps you scale the deployment of the application across your entire organization, and if appropriate, extend it to key buyers or suppliers. Most supply chain initiatives will be implemented within the next two years as technical and business uncertainties surrounding the widespread deployment of Silent Commerce technologies are resolved.
Act now
The Silent Commerce revolution is underway. To enhance business performance, companies should act now to achieve competitive superiority based on technology innovation. Accenture is a pioneering force in Silent Commerce. The company is breaking new ground with original RFID-based solutions. It is collaborating with influential organizations to establish affordable, global standards, and it continues to investigate the business impact of next-generation technologies.
Accenture’s Silent Commerce practice combines RFID research, development capabilities and deep vertical-industry expertise to help companies grasp the full potential of Silent Commerce, act on it methodically, and maximize their return on investment.
Through our broader technology capabilities — including enterprise integration, SAP implementation and infrastructure services around the world — Accenture leverages its entire organization to deliver comprehensive end-to-end RFID solutions that enhance the business performance of its clients and achieve bankable results. For more information, and to read numerous Accenture white papers and business cases prepared for a wide range of Silent Commerce applications, visit Accenture’s Web site: http://www.accenture.com/silentcommerce