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When Will the Press Wake Up?

Posted By Mark Roberti, 04.24.2009 2 Comments

Another real possibility is that RFID is just too complicated. Journalists like simple stories. The simple Internet story was that businesses would cut out the middlemen and sell tons of goods online at lower costs, and with higher profits. But that part of the Internet hype turned out to be mostly untrue—only a small portion of global retail sales is conducted online, and there are still plenty of people who shop in stores.

RFID's story was also simple, in the beginning, when it was hinged to EPC technology and Wal-Mart: Things would be connected to the Internet via radio tags, it was said, enabling them to be tracked efficiently through the global supply chain. Unfortunately, the idea that RFID could track assets, reduce counterfeiting, improve customer service, enhance patient safety, improve inventory tracking, safeguard the food supply and so forth is just too complex to make a succinct storyline the business media can run with.

Moreover, Katherine Albrecht, founder of Consumers Against Supermarket Privacy Invasion and Numbering (CASPIAN), has told a simple and compelling—albeit untrue—story to the media: that RFID will be used to track everything people do, and to usher in an error of Big Brother-like oppression (see Spychips Revisited and Be Wary of Religious Opposition to RFID). This, it seems, has been deemed more likely to sell magazines and newspapers than "RFID can dramatically improve efficiencies across many industries and many areas of a company's operations."

There's also the cynic in me who believes the business press was prepared to swallow anything Wall Street analysts fed them about the Internet, and that those analysts had a vested interest in hyping the 'Net because their companies were getting rich taking dot.coms public. If those same analysts saw an opportunity to hype RFID for the same reason, the business press would suddenly begin writing articles about how RFID is going to usher in the "wireless economy." (I'm not suggesting I want to see Wall Street hyping RFID, mind you.)

The truth is that all of these factors have probably contributed to RFID's low standing with the business press, and I guess that's OK. Those attending RFID Journal LIVE! this week, and who read our Web site daily, know the technology delivers value. RFID adoption is spreading on the basis of its merits, without coverage in the mainstream business press. And eventually, the folks at Business Week, Fortune and Forbes will catch up with the news they're supposed to be reporting.

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.

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

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