RFID as an enabler of the ubiquitous

Transcription

1 RFID as an enabler of the ubiquitous Luigi Battezzati Ph.D. Visiting Professor di Operations al Politecnico di Milano Osservatorio sulle applicazioni del RFID del Politecnico di Milano Geneve, Avril, 6th 2005

2 Features and Trends Impacts on Computers and people Innovation Process and Barriers 2

3 RFID technologies are ready for changing the world Identify individual items Line of sight not required Store and modify information on transponder Stable in variety of conditions Read through most non-metals RFID transponder costs are dramatically reducing Evolution of different types of transponder: active passive, intelligent. 3

4 RFID is a building block of Distributed Intelligence Rapid Adoption Textile Railway Auto Computer Distributed Intelligence Nanotech Introduction of Technology Industrial Revolution Information Evolution Source: Norman Poire MIT 4

5 Features and Trends Impacts on Computers and people Innovation Process and Barriers 5

6 Basically RFID changes material flows but it can impact on the information flows also: the MIS architectures could became really distributed and Old centralized MIS architectures Item identification coupled with object (ex bar code) Information in Database of MIS coupled with item identification MIS reliability is necessary for capturing the data changes New Distributed MIS Architectures Item identification and real time transactions on the object (ex RFID transponder with memory) Information in Database of MIS up dated when it's possible and useful Data communication and data base reliability is not necessary for capturing the data changes so you can saving money and improving MIS reliability in the same time 6

7 Human RFID interaction is not natural but it could be helped by a tool friendly for everybody: the mobile phone Mobile Phone Network Interphace Tag RF-ID SMS Tag RF-ID Tag RF-ID RFID Reader Tag RF-ID 7

8 8

9 Features and Trends Impacts on Computers and people Innovation Process and Barriers 9

10 But the new technology adoption is not automatic. New Technology Legitimisation and Competition Institutionalisation of New Technology Fad Social Issues and Inn. Keys to success? All Adopt the Same Tech. Loss of Competitive Adv. Technology Bandwagon 10

11 ..due to structural and infrastructural barriers: infrastructural constraints, internal and external pressures* Constraints of RFID External pressure Multiple Retailers: e.g. Wal-Mart Competitors Legislation: Food Safety RFID adoption RFID Performance Lack of standardization High cost (RFID, integration, switching, etc.) Critical mass of adoption Perceived privacy and health problems Legal issues Change management / Lack of sponsorship Skills shortage Possible Technology failure Partners unwilling to share data Possible Sabotage Supply Chain Efficiency gains Acceleration of product flows Option for item level tagging Better return flow Improvement of data quality Increased information accuracy Better forecasting and planning Better consumer offering, customer service and promotion Less delivery disputes Better management of perishable items instantaneous instore promotion Lower cost data acquisition Smart Appliances Cost reduction Labor reduction or invest to perform high value adding activity Better perishable management Better stock and WIP management Transformation of business processes from a central/global frame work to a distributed world *Source: Battezzati, Piccirillo Tamminen, Insead, Euroma

12 Conclusions RFID is not plug and play technology. It s not about collecting data, it s about making use of the new information. It s about fundamental business change, not about automating existing processes. Change will be difficult to manage top-down. Innovation spawns from inside each individual organisation from bottom up. Entrepreneurial organisations should be set up to innovate with RFID within a larger organisation. Organisational learning will be crucial to facilitate knowledge diffusion and innovation. Social implications of technology such as privacy concerns and staff resistance due to deskilling should not be underestimated.. 12