introduction to rfid- types, historical and challenges

MGW 3381 The State of Technology- RFID

Radio Frequency Identification- The Technology

In an organization there has always been a need to identify “things” which could be from

documents, products, people, inventory level, etc. In rapid changing environment, managers

need this sort of information to make quick and accurate decision. One such evolving

technology that can aid is RFID (Radio Frequency Identification), which “is an electronic method

of transmitting data over radio frequency waves” (Puffebbarger E., 2008). It’s similar to bar code

system however “RFID uses radio frequency whereas bar code uses line-of-sight to

communicate” (Puffebbarger E., 2008). It is a technology with a growing market, ongoing

advancement and practical application of auto platform identification in areas such as supply

chain management, hospitals, transportation, product tracking and much more.

There are three major components in RFID; the tag, antenna and the reader. The tag is

“embedded with a silicon microchip to store data with the size similar to a grain of rice”

(Puffebbarger E., 2008). Most tags contain at least two parts (Aspen Publishers, 2009):

1) Integrated circuit for storing and processing information.

2) An antenna that receives and transmits the signal.

RFID tags are mainly categorized into two groups, the active (UHF), passive (HF) and

assisted passive. Active tags are ultra high frequency that uses battery to power the microchips

which allow it to transmit, process and store data internally (Puffebbarger E., 2008). Passive tag

which has no power source and only store very limited information. It is activated when passed

through a magnetic field from the reader. The third is the battery assisted passive, which require

an external source to wake up but have significant higher forward link capability providing great

read range. RFID tags are inserted with unique electronic product code (EPC) as to provide

data such as product information, location, quantity etc. It has many shapes form and sizes

depending on its application practicality. The reader is the system that is use to receive/ transmit

data to be process by using a computer software. “It sends a signal that activates or ‘wakes up’

a corresponding RFID tag which transmit the unique EPC code” (Puffebbarger E., 2008).

The history of radio frequency engineering marvel can be traced way back “in 1864

where Clerk Maxwell predicted the existence of electromagnetic waves, of which microwaves

2 Managing Information System


are a part, through Maxwell’s equations” (Wyld, 2006). The creation of radar was the idea to

apply radio frequency to reflect waves from objects (Wyld, 2006). The practical application were

during ‘The Great Wars’ “when the British used the IFF (Identify Friend or Foe) system to

identify enemy air crafts on the coast” (Wyld, 2006). The modern father of RFID was Charles

Walton when he patents the use of RFID in 1973. His idea was rejected by General-Motors but

was bought by the lock-making firm Schlage to make electronic-locks. In 1990’s Dr Sanjay

Sarma of MIT was a major contributer towrds the developments in the RFID area while he was

working on how to have a robot to recognize and respond to the enviroment. It was not until a

decade later when RFID is widely used and demanded by organizations.

The initial application of RFID is used in the agricultural sector to track live stock.

However with recent development on the size, shape and storage capacity, its application has

widened. RFID wristbands are now used in hospitals as a medium to check patients whether

they are in the correct operation (Martin, 2005), their prescribe medication and medical history.

“Every year in the U.S. approximately 100,000 people die from medical errors, with 7,000 dying

just due to drug interactions arising out of the over 3 billion prescriptions dispensed annually”

(Schoenberger, 2003). In the education sector, libraries are also common user of RFID tags as

they place it in the book to control the flow of books or other learning material. RFID readers are

place at exits to eliminate theft issue even if the book is inside the bag and assist librarians in

shelving process. In United States, “a district school in Rhode Island has announced a pilot

program to monitor student movements by means of radio frequency identification (RFID) chips

implanted in their schoolbags” (Gutierrez, 2008) It can locate student’s whereabouts within the

school compound, their daily activity, attendance to help in ensuring security and discipline of

students. Therefore the application of RFID is boundaryless and there are many oppurtunities to

add such value.

Alien Technology Corporation

Alien Technology Corporation (ATC) is one of many leading companies in creating and

manufacturing the UHF Radio Frequency Identification (RFID) products and technology. ATC

was established in 1994 and located in Morgan Hill California. They produce RFID tags, readers

and provide professional services to assist their customer in business problems, improving

productivity & improve supply chain system Alien Technology caters customers from small



retailers to large scale manufacturers, transportation, cargo and other industries. In 2003, they

receive their largest order of 500 million tags low cost tags from Gillette which was to support

their supply chain management and retail stores. By using RFID it over right the use of the

existing barcode which stores more data and reduce the number of counterfeit of Gillette’s

product line (RFID Journal, 2003).

ATC’s ultimate aim in the RFID business is “to produce RFID tags in high volume and at

a low cost” (Alien Technology Corporation, 2010) . By using the latest Generation 2 standard

tags the company now offers superior read range software to benefit their customers to take full

advantage of their RFID system. In addition the United States government has accredited their

products as “Qualified Anti- Terrorism Technologies under the Support Anti-terrorism by

Fostering Effective Technologies (SAFETY) Act of 2002 for airports baggage and cargo

handling systems” (Alien Technology Corporation, 2010). According to a research the difference

between Alien Technology and its competitor are due to their technology wise based on the

extreme small RFID form, unique antennas and their worldwide band without jeopardizing the

durability or transmission range (Grackin, 2007). This are some reasons why ATC has remain

relevant in the RFID business market.

Wal-Mart Corporation

One of the major drivers behind the RFID early adoption and implementation was large

retailers such as Wal-Mart “whereby in 2003 they announced a three year technological

compliance plan for its top 300 suppliers” (Spivey, Walker, & Wilson, 2004). Wal-Mart is the

world largest chain of grocery retailer that sells millions of product ranging from furniture’s,

groceries, books, movies, electronic, jewelries etc. They are able to provide all these services

due to their “legendary” supply chain management which is their key success factor (KSF) in the

retail business (ASA Research, 2009). Therefore by adopting RFID technology, this will

significantly improve control over their supply chain management to meet customer demands.

By implementing RFID tags at pallet and case level, Wal-Mart will be able to “identify

and track the products as it arrives at their warehouses until shelving at the giant retailer” (RFID

Journal, 2005). Their aim is to reduce out-of-stocks by providing visibility into the location of

goods with RFID tags. In addition it also helps Wal-Mart suppliers to improve their visibility of

product, automated order fulfillment, improved inventory management and product delivery.



Companies such as Conair admitted that by using this system it had showed immediate benefits

as mentioned above (Fifer, 2009). Thus by being one of the early adopters, Wal-Mart has set a

standard for others maintain lower inventory level and still meet their customer demands.

Touch’ n Go Sdn Bhd

Touch’ n Go Sdn Bhd (TNG) is an active user of RFID technology in Malaysia, by

providing smart cards to ease expressway toll payments. Initially, their services are limited to

major expressways such as PLUS and Metramac, however it is now available for all major

expressways in Malaysia. Touch n Go card is a passive RFID that “uses a contactless smart-

card technology that enhance the efficiency of paying low value but high frequency transaction

that acts as an e-wallet.” (TouchnGo , 2010).

There are many benefit that users will get by using Touch’ n Go. Firstly they save their

time by not queuing at toll exits in the same time saving their fuel and reduce traffic congestion

at toll exits. Secondly, they can make payments for goods or services at selected car parks,

public transportation, petrol kiosk, fast food and etc to. Thirdly, Touch’ n Go is easy to reload at

almost all petrol kiosk, ATM, and toll exits. Some Touch’ n Go card are auto debit when the

amount runs low. Thus, these are values that TNG delivers by using RFID technology

Advantages of RFID

There are two key advantages which RFID can deliver to an organization that it replaces

barcode system and improve supply chain variability.

The barcodes system has been used for many years in nearly all the industry. The

benefit is that RFID can help the manufacturers to change it production processes beyond what

they can achieved than using the bar code system (Hozak, 2008). RFID tags can store more

data than the barcode. This is due to the structure that can only identify the product and its

manufacturer (Wyld, 2006). It can’t notify information such as the production date, packaging

date or travelling time because the data that can be stored are limited. RFID uses radio waves



to read information and does not require line-of-sight reading like the barcode. The information

on the item is obtained manually when the action of scanning the bar code label with a reader.

However RFID can read through materials that can be read almost instantaneously even within

the pallet of mixed product. It actually read one product at a time but it reads so fast, it’s almost

unnoticeable. Barcodes are prone to environmental exposure such as extreme heat, chemical

reaction, scratch, dirt, rain, etc that made them unreadable. RFID tags are protected by plastic

sealed and could eliminate environmental hazards.

RFID can significantly improve supply chain variability and improving service quality. It

has improved the ability to match product demands and supply, improve productivity, shelf

product availability, reduce error reductions, product traceability, more control over stock and

able to see real time supply chain performance. A research conducted by Angeles R., in 2005

on Great Rootbeer, Inc on how they improve their supply chain from RFID tags. They “tagged

every root beer can that is made with a unique electronic product code” (Angeles, 2005).

Therefore they can track these cans once they exit the docking area. This information will be

passed on to their system for inventory update, sends a message to the retailers and

acknowledge the freight forwarding company on the location delivery. During the journey to the

retail stores, the system will be able to track where exactly the truck is located (Angeles, 2005).

As it enters the retail outlet, it will be marked as goods received and payments transactions are

made. When a customer buys a can of root beer the tag will than send a signal to the system for

inventory update and Great Rootbeer will produce them. Furthermore, once the root beer cans

are disposed and sent to recycle centers, more RFID readers at these center’s will sort this cans

and be sent back to Great Rootbeer for reuse (Angeles, 2005).

Limitations of RFID

Cost has been the most cited main problem in many organizations to adopt RFID

system. If contrast the “barcode cost just half a cent each, while RFID tags cost more than 5

cents” (Shih, 2009). The author argued, as a result, a significant portion of Wal-Mart’s suppliers

rejected its mandate to adopt the newer technology (Shih, 2009). In another study they discover

that each RFID tags cost 20 cents or more depending on type and feature” (Puffebbarger E.,

2008). While RFID tags still cost 5 times than barcodes it becomes challenging for smaller

organization to adopt RFID system. These include start up costs, training employees,



restructuring the IT system and educate their customers. Barcode is remains relevant and

popular thus many organization feels that they do not need the features offer in RFID tags

especially small organization. Furthermore “RFID systems are very complex to design and

implement” (Puffebbarger E., 2008).

Security is another area that limits the adoption of RFID. There are risks of private

information getting stolen from the tags. Since that most tags are passive it could be open to

attack by perpetrator from a safe distance. Other “security issue includes, ghost tags, physical

attacks, spoofing, and denial of Service (DOS)” (Puffebbarger E., 2008). Any of these attacks

can seriously hurt the company productivity. For example, if a person modifies the contents of

delivery location, the product will then be send to the wrong place. According to Puffebbarger

E., RFID security is vulnerable because most of the data are stored in plain-text or unencrypted.

He added that encryptions require more space, increased processing time and a larger chip

which need larger tags (Puffebbarger E., 2008). RFID tags listen and respond to a signal no

matter where it comes from or to who is being sent. A firm in Netherlands successfully

decrypted a RFID passport within two hours with a very predictable algorithm and able to

access all the information the passport holds (White, 2006). Therefore the level of security in a

RFID tags are low and need to be improved.

Conclusion

In conclusion, RFID have an impact on business information system. Its wide

application, aggressive development and relatively low cost, is an option for organization to

utilize this technology to achieve competitive advantage. However, organization must first

identify whether there is a need to adapt RFID. Several industries such as supply chain,

hospitals, education, transportation and banks have started adopting RFID. There will be

undoubtedly a transformation on RFID, how fast it will move, what cost will it take and benefit

that it will bring remains to be seen. RFID is the future power of auto identification.



Manual Word Count (2168 words)

BibliographyAlien Technology Corporation. (2010). Alien Technology- Products. Retrieved March 25, 2010, from Alien Technology: http://www.alientechnology.com/products/index.php

Angeles, R. (2005). RFID Technologies: Supply Chain Applications and Implementation Issues. Infomation System Management , 51-65.

ASA Research. (2009). Wal-Mart Sets the Standard for Supply Chain Automation. Retrieved March 26, 2010, from http://www.asaresearch.com/ecommerce/supplychain.htm

Fifer, M. (2009). Walmart Using RFID Tags to Improve Logistics. Retrieved March 26, 2010, from Ezine Article's: http://ezinearticles.com/?Walmart-Using-RFID-Tags-to-Improve-Logistics&id=3006800

Grackin, A. (2007). RFID Checklist: RFID Markets and Solutions for 2008. Cambridge, MA: Chain Link Research.

Gutierrez, D. (2008). Natural News. Retrieved March 26, 2010, from Natural News Website: http://www.naturalnews.com/023445.html

Hozak, K. &. (2008). RFID as an enabler of improved manufacturing performance. Decision Sciences , 859-881.

Martin, Z. (2005). RFID tags help identify patients before surgery. Journal of Health Data Management , 14-22.

Puffebbarger E., T. F. (2008). RFID: New Technology on the Horizons for IT Majors. International Journal of Business Data Communication and Networking , Volume 4 Issue 2.

RFID Journal. (2003). Gillette Confirms RFID Purchase. Retrieved March 25, 2010, from http://www.rfidjournal.com/article/view/258/1/1

RFID Journal. (2005). Wal-Mart Begins RFID Process Changes. Retrieved March 26, 2010, from RFID Journal: http://www.rfidjournal.com/article/view/1385

Roberti, M. (2009, June 29). Bar-Code Technology Is Not Cheaper Than RFID. Retrieved April 1, 2010, from RFID Journal: http://www.rfidjournal.com/article/view/5005

Schoenberger, R. (2003). "Radio Rx". Forbes , 126-172.

Shih, G. (2009). Game Changer in Retailing, Bar Code Is 35. Retrieved April 1, 2010, from The New York Times: http://www.nytimes.com/2009/06/26/technology/26barcode.html?_r=2&amp;ref=business



Spivey, C., Walker, J., & Wilson, C. (2004). RFID at What Cost? What Walmart Compliance Really Means . Forrester Research Inc.

TouchnGo . (2010). Welcome to Touch' n Go. Retrieved March 27, 2010, from http://www.touchngo.com.my/WhatSTAG_tech.html

White, D. (2006). Global RFID passport encryption standard cracked in 2 hours. Retrieved March 29, 2010, from Mobile Mag: http://www.mobilemag.com/content/100/102/C6340

Wyld, D. (2006). RFID 101: the next big thing for management. Management Research News , 154-173.



Appendix A

RFID integrated circuit, memory and the antenna



Appendix B

Overview:RFID data transmitting, processing and storing

Diagram 1: RFID system


introduction to rfid- types, historical and challenges

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