By Mark Roberti
Dec. 1, 2005—When I first visited the
Auto-ID Center at the
Massachusetts Institute of Technology (MIT) in June 2001, I was working for
The Industry Standard, the now-defunct dot-com magazine. I was looking into a then-obscure technology called
radio frequency identification, which had some potential to help companies improve the quality of data they were putting into their supply chain systems by automating the scanning process. When I left MIT at the end of the day, my head was buzzing—
RFID's potential was far greater than I'd ever imagined.
Kevin Ashton, then the executive director of the Auto-ID Center, spelled out a vision for the "Internet of Things." RFID tags with unique Electronic Product Codes would be placed on individual products and linked to product data in Internet databases. Information about each item could be shared securely with supply chain partners around the globe. I
saw it as a way for companies to transform the way they manufacture, transport and sell goods.
Today, we stand on the cusp of seeing that vision become a reality. As we show in our cover story,
Leveraging the Internet of Things, the standards for sharing
EPC data over what's now called the
EPCglobal Network are coming together. The retail/consumer packaged goods industry has agreed on a standardized format for sharing data, and
Wal-Mart,
Target and 13 manufacturers have begun sharing EPC data in a field trial. The
MIT Auto-ID Lab, the successor to the Auto-ID Center, is building a software simulation to learn how the network should be designed so it works efficiently with millions of companies sharing data on billions of products (see
Cache Is King). And software companies are developing applications that take advantage of the ability to interpret EPC reads at different points in the supply chain to better manage many different business processes.
Before companies can take advantage of the
EPCglobal Network, they need to understand the business case for new RFID-enabled applications—those used within a company's own four walls or that involve sharing data with a supply chain partner. Our list of best practices will help ensure any company's success (see
Plan an RFID Field Trial That Delivers).
Semiconductor companies aren't using EPC technology within their fabrication plants, but this issue's case study reveals how
IBM is using
low-frequency RFID to almost completely automate the manufacturing of microchips (see
Ultimate Control). No doubt, other industries will want to reap the benefits of RFID-enabled manufacturing, which include the ability to control every aspect of production, speed products to market and improve customer service.
Our
Vertical Focus shows that not everyone is jumping on the RFID bandwagon. Online retailers see plenty of potential benefits but only when tagging gets to the item level. That will take a few years. Still, when I look back at my first trip to MIT, I'm awed by just how far the technology has come in such a short time.
Mark Roberti
Founder and Editor