RFID current applications and potential economic benefits (IBM)

OECD ICCP Foresight Forum on RFID Applications

and Public Policy Considerations

RFID current applications and potential
economic benefits
Naji Najjar
Director, Wireless Broadband & Sensing Solutions
IBM South West Europe

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OECD Forum on RFID Applications and Public Policy Considerations

IBM is involved in many aspects of RFID
ƒ Many patents and years of research in RFID technology
ƒ RFID used at Fishkill semiconductor & Dublin manufacturing
plant, piloted in Montpellier plant and others..
ƒ Member of EPCglobalTM and facilitator of “knowledge transfer”
process
ƒ New WebSphere RFID middleware platform to support device
and server solutions based on open & reliable architecture
ƒ Sensor and Actuator Solutions emerging business unit in place
- leading RFID initiatives for IBM
ƒ Consulting partner for leading industry players

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OECD Forum on RFID Applications and Public Policy Considerations

Sensors like RFID link the “field” – or physical world -- with
the enterprise/organization and its applications
Sensors are devices that measure real world
conditions – like temperature, flow or position.
Actuators are devices that take actions in the
real world – like valves, thermostats, or robots.

Securely connecting the physical environment to the IT technology infrastructure to help
organizations aggregate, analyze and act upon data and dynamically adjust operations
in response to changes in their business
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OECD Forum on RFID Applications and Public Policy Considerations

RFID enables on demand business/organization:
A convergence point between new business /operating models & technologies

RFID creates the ability to

identify, aggregate and
track information about
objects through the value
chain, from the
manufacturer to the
consumer
RFID makes the supply
chain visible, efficient, and
collaborative.

…this provides businesses the ability
to develop integrated end-to-end
processes across their company and
with key partners, suppliers &
customers
…positioning them to respond with
speed to customer demand, market
opportunity or external threats

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OECD Forum on RFID Applications and Public Policy Considerations

RFID can be applied to five market spaces
Leverage RFID technologies to transform supply chains by providing end-to-end

visibility of goods and enabling improved inventory management.
Supply Chain
Management

Work In
Process
Manufacturing
(WIP)

Asset
Management

Includes: Supply Chain Mgmt using RFID for Warehousing, pallet/goods tracking,
Inventory Tracking, Track & Trace, Sensor/ sensing applications. Also covers
RFID impact of counterfeiting and fraud.
Apply RFID technologies to the in process manufacturing processes to enable
effective inventory tracking and management, product line efficiencies, and JIT
manufacturing advantages.
Includes: Automation of assembly, Component production, Production of vehicles.
Companies have physical assets (plants, truck fleets, PCs etc) that are needed to
make, and to deliver products and services to customers - knowing where an
item/ vehicle is on route, and also tracking of depreciating good – tools, HW,
equipment, leased items.
Includes: Equipment tracking, Fleet management, Vehicle maintenance
management, Track & Trace, Military and defense tracking.
Monitor the movement and use of valuable equipment and personal resources.

Security &
Access Control

Includes: Access control and tracking, Animal tracking, Automobile ignition
security, Baggage handling systems, Inventory control, Parking lot security and
access, Shoplifting prevention, electronic article surveillance, Vehicle security,
Sensor/ sensing applications.

Monitoring peoples movements, personal security, convenience and Point of sale
applications.
Consumer
Includes: Personal identification and authentication, personal security and safety,
Applications
Patient ID and tracking, Maintaining shelf stock, Innovative payments, Return
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Wireless Broadband & Sensing
Solutions Purchase maintenance..
management,
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OECD Forum on RFID Applications and Public Policy Considerations

Parcels Transportation in France: Sernam
ƒ Innovation seen as critical to the success of Sernam.
ƒ Need a solution allowing contact-less tracking of parcels & pallets at
different points of the logistics chain

Challenge

ƒ Sernam selects IBM as its RFID partner to develop, test, demonstrate &
deploy an industrial RFID solution to support Sernam needs in the trace
& track of its parcels along the full supply chain.

ƒ Solution implemented successfully and currently used for Sernam night
delivery operations

Solution

Benefits

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ƒ Optimization in the transportation activities & assets
ƒ Reduction in costs: loss of parcels, conflicts, labour
ƒ Enhanced customer services

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OECD Forum on RFID Applications and Public Policy Considerations

Fresh Produce Tracking in Australia: Moraitis Fresh
Moraitis Fresh, a family owned company
with the objective of providing customers
with the very best in quality service, is
now Australia's leading fresh produce
company with a presence in all major
growing districts & retail markets
throughout Australia

Benefits

• Improved ability to track volumes and types of
produce, enabling better supply forecasting to
retailers
• Increased throughput, resulting in improved
volumes or decreased packing times

Business Challenge
To stay ahead of its competition, Moraitis
needed to introduce operational efficiencies,
reduce operational overhead and scale its
business in a sustainable manner.
IBM designed and implemented an
application using RFID technology to track
produce throughout the entire production
process and enabling up to nine personnel
to pack produce simultaneously.

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OECD Forum on RFID Applications and Public Policy Considerations

Manufacturing Work-In Process in USA: IBM
Fishkill Plant
IBM has been using RFID technology in production since
June 2002 as a part of the $2.5B fully automated

300 mm chip fabrication system in Fishkill.

ƒ Silicium wafers moved automatically from one
tool to the other are carried in RFID-tagged
containers.
ƒ RFID tag is read at each step of
manufacturing process to track and validate
work-in-progress.
RFID tagged containers
ƒ Full integration with back-office

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OECD Forum on RFID Applications and Public Policy Considerations

Manufacturing Logistics : Philips Semiconductors
Philips Semiconductors, headquartered in ,
The Netherlands, is one of the world's top
semiconductor suppliers with the goal to be
the leading provider of semiconductor-based
solutions for connected consumer and
communications applications.

Benefits
• increased inventory turns,

• improved stacked lead time
• enhanced warehouse efficiency &
delivery reliability
• improved customer service

Business Challenge
Philips with IBM, as its solutions partner,
wanted to demonstrate how RFID can be swiftly
integrated with legacy systems and operational
practices to enhance productivity and efficiency.
The Philips Asian RFID project covers the
tagging and tracing of wafer cases and carton
packages for flows of goods between its
manufacturing facility in Kaoshiung, Taiwan and
its Asia Pacific distribution center in Hong Kong.

9

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OECD Forum on RFID Applications and Public Policy Considerations

Medical Waste Tracking in Japan: Kureha Kankyo
Kureha Environmental Engineering
Co, a leading waste management
company in Japan, will begin
verification tests on traceability of

medical waste using RFID tags.

Benefits
• Improved tracking of medical waste
• Prevention of illegal waste disposal
• Greater public safety and security

Business Challenge
Kureha wants to prevent illegal waste disposal
by creating a traceability system for medical
waste with a number of different hospitals and
transportation companies in Japan.
Containers will be equipped with RFID tags, and
signal-reading antennas will be installed at IBM’s
RFID Solution Centre to investigate signal
sensitivity and read-out precision parameters,
enabling the evaluation of issues, such as
optimum RFID tag mounting methods and an
analysis of the influence of obstacles.
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OECD Forum on RFID Applications and Public Policy Considerations

Security & Access Control : Finnair
Challenge

ƒ Finnair was actively seeking a solution to help employees meet the challenge of increased
passenger volumes on their day to day operations.
ƒ Finnair is currently using phone based check in/out solution where employees need to call a
certain number to check in/out from the duty. With this solution employees need to type in the
personal identification number each time they arrive or leave from the work place. The existing
solution has had some technical challenges which has frustrated employees.

Solution

ƒ The Solution is based on an RFID tag which holds the employees personal identification number.
ƒ The RFID reader is attached to an Intel based kiosk with a touch screen. The employees operate
the system by touching the buttons on the screen which eliminates the need for typing in any
information to check in/out.
ƒ The RFID kiosk is communicating with an RFID server using WebServices. The RFID server is
running at the top of WebSphere Application server providing the scalability and availability
required by the solution. The RFID server is integrated with the existing RTC system where actual
work optimization is performed.

Benefits

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ƒFixed location based (RFID) check in/out operation
ƒBecause the identification number is stored on the RFID tag employees can check in/out from the
duty by just waving the tag near to the RFID reader without remembering and typing in the
identification number.
ƒFast and easy to use.
ƒUsing the Kiosk the first Assignment can be delivered at the time the employee checks in
ƒThe solution should also provide efficient information channel to employees checking in to the

duty. This allows employees to get the latest information of the situation on the airport right
away when they sign in.

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OECD Forum on RFID Applications and Public Policy Considerations

Security & supply chain optimization: Joint IBM/Maersk initiative
to develop a solution to provide real time visibility on containers
and goods transported
Implications to the stakeholders

Law/rule compliance challenges
(= Security & Liability)

Business
•
•
•
•

Business Model / Business Case
Aligned Processes
Standards
Certificate Authority

Logical

Manufacturer
Distributor

Freight
Forwarder

Port Authority “A”
Custom

Ocean Carrier

Port Authority “B”
Custom

Distribution
Centre

• Data Aggregation
• Systems Communication
• Data Management

Physical

Supply Chain Performance Challenges
(= Efficiency)

• Container Security
• Container Identification
• Data Capture

Actual solutions on the market are addressing some
of these implications but none of them are covering
the entire supply chain
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OECD Forum on RFID Applications and Public Policy Considerations

Patient Flow Management in Emergency Unit ½
Joint Prototype IBM- Nice CHU

Presented during
the 34th Congress
of the International
Hospital Federation
Nice 20-22
September 2005.
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Traceability

Patient path
Optimization

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OECD Forum on RFID Applications and Public Policy Considerations

RFID for Patient Flow Management in Emergency Unit 2/2
ƒ RFID Technology
Linking 2 worlds:

antenna
chip

physical objects D IT world
RFID Technology

ƒ Location & Identification
Patients
IT equipment

ƒ Goals
Optimize patient path
Traceability

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OECD Forum on RFID Applications and Public Policy Considerations

RFID: Economic benefits & ROI opportunity
ƒ Real reduction in errors via automation – reduction in mis-shipments, lost
inventory, and errors in redundant data reads
ƒ Real gains in productivity by better managing the use of skilled resources
through automation
ƒ Industry recognized qualitative impacts which returns improved customer
service, lessened warrantee handling,
ƒ Visibility on supply chain vs estimates
ƒ Driving regulatory impacts through compliance activities to meet
governmental regulations: safety, security, environment,..
ƒ Fraud detection
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Wireless Broadband & Sensing Solutions

Automation drives operational
efficiencies that return economic
benefits
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OECD Forum on RFID Applications and Public Policy Considerations

Successful RFID initiatives require focus in three key areas:

Business
Strategy

Business
Process &
Applications

Technical
Solution
Design
RFID
Enablement

Communication
& Connectivity

Process Transformation

Pilot,
Implementation,
& Management

Integration
Platform

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Business Case

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Technology and
Infrastructure

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OECD Forum on RFID Applications and Public Policy Considerations

Key Messages

Reader
Antenna

ƒ IBM believes RFID is here to stay. It should be viewed as part
of a broader strategy
…momentum is building around the globe

Tag

ƒ RFID can enhance productivity, safety and enterprise/economy
competitive positions
...governments & public organizations have a role to play & stimulate
ƒ To maximize benefits, RFID technology alone is not enough.
……processes would require changes
ƒ Open Standards, open & reliable solutions are key
… how can we imagine, otherwise, linking the diversity of the physical
world with enterprises/organizations & their IT systems?
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Intermec
UAP-2100


OECD Forum on RFID Applications and Public Policy Considerations

Thank You

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