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When Will the Press Wake Up?
2 CommentsApr. 24, 2009—When I first heard about the Internet in 1992, I became excited about its potential and switched the focus of my journalism career from business reporting to business technology, covering the 'Net as it evolved. It took seven years from when I first heard the term for the mainstream business media to begin widely reporting on the Internet, and then it was hailed as a technology that would transform businesses and create a "new economy." As a result, Internet companies went public without so much as a business plan, soaring to ridiculous heights on the stock market.
In 2000, when I was covering how companies were using the Internet to better manage their supply chains, I learned about something called radio frequency identification. Nine years later, RFID deployments have spread to every corner of the world, and to every known industry. Unlike the Internet in the early days, however, RFID has delivered real benefits to many companies. This week, at RFID Journal LIVE! 2009, more than 50 companies will present case studies illustrating how they are employing RFID to improve the way they do business. And yet, the technology continues to get little play in the mainstream business media, and I can't quite figure out why.
There could be several explanations for this. The technology was oversold in 2003 and 2004, based on the concept of using Electronic Product Codes (EPCs) to track boxes through the global supply chain. Few retailers have joined Wal-Mart and Metro in deploying the technology, so to the mainstream media, it might appear that RFID has fizzled.
An article published in the Wall Street Journal in 2007 erroneously suggested exactly that, in fact (see Don't Let Misperceptions of RFID Become Reality and Wal-Mart, Suppliers Affirm RFID Benefits). What the media is missing is that all forms of RFID—high-frequency, ultrahigh-frequency, active and so forth—are delivering value in myriad closed-loop applications.
It could be that CIOs and the media have become far more skeptical regarding the technology's transformative powers. The Internet was heavily hyped, so many companies invested heavily in it. Remember when Jack Welch was saying he would turn General Electric into the world's greatest dot.com? In the end, the Internet proved far more powerful than even the most aggressive hype artists could have ever imagined—but given the amount of money wasted on Internet technologies, CIOs don't wants to bet their careers by claiming RFID is the next transformative technology.
In 2000, when I was covering how companies were using the Internet to better manage their supply chains, I learned about something called radio frequency identification. Nine years later, RFID deployments have spread to every corner of the world, and to every known industry. Unlike the Internet in the early days, however, RFID has delivered real benefits to many companies. This week, at RFID Journal LIVE! 2009, more than 50 companies will present case studies illustrating how they are employing RFID to improve the way they do business. And yet, the technology continues to get little play in the mainstream business media, and I can't quite figure out why.
There could be several explanations for this. The technology was oversold in 2003 and 2004, based on the concept of using Electronic Product Codes (EPCs) to track boxes through the global supply chain. Few retailers have joined Wal-Mart and Metro in deploying the technology, so to the mainstream media, it might appear that RFID has fizzled.
An article published in the Wall Street Journal in 2007 erroneously suggested exactly that, in fact (see Don't Let Misperceptions of RFID Become Reality and Wal-Mart, Suppliers Affirm RFID Benefits). What the media is missing is that all forms of RFID—high-frequency, ultrahigh-frequency, active and so forth—are delivering value in myriad closed-loop applications.
It could be that CIOs and the media have become far more skeptical regarding the technology's transformative powers. The Internet was heavily hyped, so many companies invested heavily in it. Remember when Jack Welch was saying he would turn General Electric into the world's greatest dot.com? In the end, the Internet proved far more powerful than even the most aggressive hype artists could have ever imagined—but given the amount of money wasted on Internet technologies, CIOs don't wants to bet their careers by claiming RFID is the next transformative technology.
READERS' COMMENTS
RFID Business Development Manager
I have been involved with RFID since 1999. And one of the first places I thought the technology would be used was in our schools. It could be used in the library, yearly inventory of all assets and on tracking students in and out of classes (but where was the ROI). And, how about tracking the children on and off buses? That might have eliminated the stories we have seen on TV or read in the newspaper of a child left on the business because they had fallen asleep on their way home and the bus drive didn’t see them. Having chaperoned many band trips either for contests or football games over the span of 15 years (my wife and I have 4 children) loading and unloading the buses would have been much easier. Student check in is a horror, yelling out names only to get no answer or worse getting several responses. Keeping track of these young people during contest, games and traveling is a big concern. Many years back we left a student behind because he forgot to go back to the bus. Two hours later mom and dad wanted to know what happened to Bill. It is only important when looking for students but not when they are all accounted for. There is no ROI for success here. We now see school libraries using RFID. We also have seen several tests on inventory tracking at schools. I have even read about a school in the Chicago area using the technology to track students leaving campus for lunch. Do I want privacy or do I want to have a secure feeling that I know where my child is? Being involved with RFID all these years I know that privacy is not going to be an issue no matter what Albrecht thinks. But wouldn’t it be nice to know that your student did go to Algebra or that she skipped a class. I also think of all the parents that were going crazy not knowing if their children were safe during those tragic events at the high schools. RFID compliance opportunities have slowed down the progress due to strategy changes are Wal-Mart, Sam’s Club and Pharma (e-pedigree). We should ask the pharmaceutical companies how many dollars they budget for loses due to counterfeiting, diversion and legal expenses? What is their cost on recalls and reverse logistics? Then you have companies like Target, Best Buy and I am sure there are others that don’t get any kind of media coverage or don’t want any. Regardless of the business strategy taken by these RFID market leaders, suppliers have taken their focus away from RFID. And, there are other industries that don’t have any standards at all either with bar codes or RFID (medical device manufacturers). Blame it on the economy or compliance slow down there is a let’s wait attitude. The delay will cause many to re-think RFID. Some even think that RFID is going away (or they wish it was going away). Another application that could save millions of dollars but isn’t really being mentioned is the sports memorabilia market. There are some pockets of RFID usage but no standards have been developed by the leagues. I don’t think the leagues have any idea of the technology, if they do they aren’t talking. You would think after losing millions of dollars in counterfeited goods they would want to put a stop to this. Maybe they are making too much money to be concerned with losing a couple of hundred million dollars a year. We should ask them how many dollars they have lost to counterfeiting, or if they know. I don’t think the mainstream business press understands how technology works in applications. Too much detail is required to inform the reader and no one wants to read dry material with no drama, sex or scandal. And, as soon as they read it cost more than $0.05 everyone would say it is too expensive. And they won’t stop to figure out how it might benefit them. Improved efficiencies, reduction in shrink, reduction in lost billable hours and accurate inventories are not dramatic enough today. RFID is a positive subject that focuses on protecting your investments and keeping your company in the black. You can say I think this way after 9 years in the business. I think I am sold on it.
Posted By: Joe Jiner 5/15/09 at 4:34 PM
New to RFID
I'm new to the RFID technology as far as implementation in my own company. I have to say that I really enjoyed this blog and the comment from Joe Jiner. It seems there is still much to learn. I just completed an online training course at http://cscmp.org/events/educational/rfid-web-training.asp. I found it very helpful...so if anyone is in my boat and is thinking about implementing or has already implemented, this course is good.
Posted By: 5/26/09 at 8:42 AM