rfid

Copyright © 2007 Accenture All Rights Reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture.

An introduction to RFID and sensors

Guido SikkensTuesday 17-04-2007

Where’s my ball? I

should have

placed a RFID tag!

2Copyright © 2007 Accenture All Rights Reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture.

Agenda

Introduction to RFID

• Definitions

• Technology

• Barriers to use

• Applications and the business case

Questions

Million dollar question

• Come up with a positive business case for an application using RFID


First, some definitions….


What is RFID?

• Radio Frequency Identification (RFID) is an automated data capture technology that can be used to electronically identify, track, and store information contained on a tag that is attached to or embedded in an object, such as a product, case or pallet. - May 2005, US Government Accountability Office.

• Recently, Wal-Mart, Metro, Tesco and the US Department of Defense have recommended / mandated the use of RFID by their suppliers. This has sped uptake of the technology.

• Originally used within WWII to interrogate approaching planes to determine whether they were friend or foe.


What is Silent Commerce?

• Silent Commerce focuses on using advanced tagging, sensor and actuator technologies to make everyday objects intelligent and interactive. It’s called “silent” because objects communicate and conduct commerce without human interaction


Silent Commerce – The Four Components

Creating new business opportunities by making objects intelligent and interactive.

Integration of multiple technologies, concepts, and platforms.

‘Silent’ because objects communicate and transact commerce without human interaction.

Four innovative technologies are being tracked, with RFID most mature at this stage.

SensorsSensors detect physical phenomena (like shock, temperature, chemical changes, sound, light) and report back measurements.

DisplaysEmerging display technologies are allowing for dynamic displays to be integrated into packaging, fixtures or the products themselves

RFID (Radio Frequency Identification)silicon-based electronic identification tags, consisting of a tiny processor, memory, antenna.RFID tags can be read and written wirelessly and can be made cheap, without a battery.

ActuatorsActuators act on the physical world, based on either input from sensors or algorithms. Actuators include motors, control systems, interlocks, pumps and the like.


Now lets look under the covers of thetechnology a little…


The Basics of an RFID Capture System

Tags Host ComputerAntenna

Transponder device made of an electronic circuit (chip) and integrated antenna

RF used to transfer data between tag & antenna

Portable memory

Active or passive

Disposable or Reusable

Read-only or read/write

Packaged in a number of form factors to accommodate environment

Transmits RF command signal to tags

Provides energy via RF to passive tags

Reads returned RF signal from tag

Controls one or more Antennae

Controls tag reading process, guarding against collision, misreads.

Contains lowest level of business logic for tag types to read

Receives commands from application software

A device controlling PC, managing one or more readers.

Contains some application logic to control reader operation

Temporal storage of read data.

Link to the Enterprise and Business Applications.

Reader


The Tags

• They consist of a tiny processor, memory, and antenna. RFID tags can be read and written wirelessly. They vary in complexity and cost based upon frequency, memory, sensor integration, size, antenna, and power.

Chip-antenna bonding

Antenna

(copper,

aluminum,

… and now

electronic ink)RFID Chip


RFID Tag vs. Barcode

• Higher costs but dropping

• Uncertain “universality” of systems

• Tag reading currently too dependent on environmental conditions

• Tightly linked to the infrastructure

• Low Cost

• Widespread utilization

• Human readable

• Communicates through radio waves, line of sight not required

• RFID tags store significantly more information

• RFID is dynamic and information can be added or deleted at every step in the supply chain

• Increased functionality: covert and difficult to counterfeit

• Read multiple tags at once

RFID Bar Codes

• Transmission of data is performed optically--clear line of sight required.

• Information storage is limited

• Read only one tag at a time

• Read capability can be affected by dirt, water and scuffing.

• Reduced security


RFID – Passive v. Active tags

Passive TagsLess complex because reader provides the operating power. They can be packaged small, light, inexpensive (also called SmartLabels) and can last over 10 years.

But…

Range of transmission is relatively short and can require higher-powered readers.

Passive Tag Active Tag

Energy Source Induction Battery

Reading Distance <~1.5 meter ~5-100 meter

Memory 128b – 8K 64K- 228K

Life Time up to 10 years ~2-7 years

Technology Maturity Medium Low

Weight ~0,5-5 gram (excl. Package) ~50/ >200 gram

Cost ~$0.20 USD – $10 ~$20 – $70

Active TagsContaining on-board power source (e.g. a battery) they can transmit relatively long ranges, and have reduced power requirements for reader. Batteries can last generally from 2 to 7 years.

But…

Cost and size; Generally speaking, the more functionality, the more complex and bigger.


RFID Frequency Band Characteristics – Each Range Lends Itself to Different Applications

LF HF UHF MW

Band 132KHz 13.56MHz 315 MHz 418MHz 433MHz 868MHz 915MHz 2.4GHz

Frequency Range Detail

119-136KHz

72dBuA/m@10m

13.553-13.567 MHz42 dBuA/m

@10m

314.7-315 MHz

65 dBuV/m@10m

418.95-418.975 MHz

10mW ERP

433.050-434.790 MHz,

10%

10mW ERP

868-868.6 MHz

25mW ERP1%

902-928MHz

2400-2483.5MHz

Passive Tag Range

Very Shortinches

Very Short~1M

Very Short ~1M

Very Short ~1M

Very Short ~1M

Very Short ~1M

Short 1

3-5 MVery Short

<2M

Active Tag Range

Short Short Long 2 Long 2 Long 2 Long Long Long

Range adjustment

Very Good 3 Good Fair Fair Fair Poor Poor Poor

Propagation through materials

Excellent 3 Very Good Good 2 Good 2 Good 2 Fair Fair Poor

Transmission / Acquisition Speed

SLOW (10s of Tags / s) FAST (1000s of Tags / s)

1. 915 MHz is the only band that provides Short Range for passive tags (due to regulatory requirements)

2. Lower UHF bands (315, 418, 433 MHz) are the only bands that provide Long Range (with active tags), have Good propagation, and can use directional Antennas

3. 132 KHz is the only band with Very Good range adjustment and propagation characteristics


Sensor Telemetry – what it enables…

• It enables an increasingly more detailed and real time view into physical business events.

RFID TagRFID Tag

• “I’m here”

• “Here’s my name”

RFID Tagwith Sensor

RFID Tagwith Sensor



• “Here’s something about me”

EmbeddedComputer with Sensors

EmbeddedComputer with Sensors

• “Here is my location”


• “Here’s some things that have been happening to me”

• “Here’s some conclusions I’ve drawn and some business relevant insight”

Sensor with ContextSensor with Context



• “Here’s something about me”

• “Here’s what is happening around me”

• “Here’s what you need to know”


Barriers to use


Issues

• Signal reception is quite variable and difficult to tune• Performance… not a perfect process. Major airline & TSA encountered

between .5 and 4% no-read rates depending on reader / application.• Privacy Concerns, such as seen within recent California Legislation.

Blocking technology is an option (e.g., sticker that blocks transmission)• Health concerns, real or perceived• No global standard on allowed frequencies• Fragmented solutions market… tag companies, reader companies,

applications and middleware… integrators are needed!• Standards (e.g., data format and transmission, available frequency

ranges, and power at frequency) are different by industry and country. Makes it difficult for global and cross industry suppliers.

• Tag cost is still too high. $0.05 USD target necessary for passive tags at the item level.

• Cloning and Replay Security Issues


Applications and the Business Case


Sample Applications

• Deployed military cargo tracking• Library Books• Passports w/ embedded RFID• Drug distribution (expiration, tracking)• Drug dispensing (right patient, drug, and dosage)• Medical Record Tracking• Operating Room Equipment Configuration Validation• Border Crossing Inventory (People, Cargo)• Predictive Monitoring of maintainable parts• Track Prisoners• Track Weapons, Evidence• Environmental monitoring• Tolling


in delivery in production in distribution in storage

in disposal / recycling in use in retail in maintenance

in document managementin worker safety in access control in handling and storage

Sample Applications


FedEx Vehicle Access Control

• FedEx couriers use an automatic keyless entry and ignition system that has RFID transponders embedded within a velcro wristband. The system is being tested in 200 FedEx delivery vehicles.

• Each time a courier makes a delivery, he/she must spend time searching for keys or use them to lock/unlock multiple doors to their vehicle. If a courier misplaces his keys, he must wait for someone from a FedEx station to bring out a spare, and the vehicle must be re-keyed at a cost of more than $200 per incident.

• With RFID, FedEx delivery personnel are freed from the hassles of juggling their keys while carrying armloads of packages and are more productive along their routes. If a wristband is misplaced, its code can be purged from the system and a new code can be reprogrammed in a matter of seconds.


RFID ski pass

• In 1999, TI-RFid collaborated with the Austrian company TeamAxess to develop a hands-free access system for ski lifts based upon RFID. The system, used at ski resorts in Europe, allows for improved customer service, more efficient operations, increased sales and higher throughput of customers. Remote-operated gates detect a valid ski pass and open automatically.

• The credit-card sized ski pass fits easily into a jacket pocket and never has to be removed, helping skiers enjoy a hassle free trip to the slopes.


Questions?


OV card


Types of Business Cases

• Risk Mitigation - Low to no $$$ business case, but significant security or quality improvement

• Analytics for Future Re-engineering – Borrowing from a future business case

• Reduced Workforce – Efficiencies result in reduced labor requirement

• Shifted Workforce – People shifted to focus on higher value tasks

• Combination – Best kind of business case


Sample Business Case – Tough!

Fixed Start Cost

$1M Infrastructure$1M Systems

Files Cost

200 Admissions / dayX.20 Cent TagX365 Days / YearX5 Years

5 Year Model: Medical Records Tagging (U.S. Dollar)

Operations Cost

25% / Year of:- Infrastructure- Systems

$2M $2.35M $2.5M = $6.85M Cost

Transaction Minutes

200 Admissions / dayX365 Days / YearX10 Handles / FileX1 Minute / HandleX5 Years

2 Million Minutes(new time approaches 0)

Cost of a Minute

$25k Clerk Salary+$15k Benefits / Load/1780hrs Active Work / Yr*60 Minutes / Hr

35 Cents / Minute = $700K

CO

ST

BE

NE

FIT

Multiple OpportunitiesBusiness Transformation

Systems Integration


What makes it Compelling?

• RFID combined with other technology– ERP System - POS System

• Sensing RFID Tags– Temperature - Humidity -

Pressure

– Vibration / Jarring - Time - Light

– Location

• RFID Memory Options• Multi-faceted business case


What makes for a good opportunity?

• Barcode doesn’t work – Such as not secure enough or physical proximity is difficult• Pure counting or accounting process – these are cases where the cost of manual

counting/accounting, plus the speed of which that would be conducted, are often less than desirable or prohibitive (in this context, I define accounting = identification + counting)

• High cost of potential failure due to missing object – cost of potential failure far outweigh immediate cost of RFID solution. This applies even if the tagged product themselves are inexpensive. (example – production failure due to missing parts, escaped prisoner, etc)

• High cost of asset, large quantity of such assets and frequent movement of such assets – this relates to asset tracking where the cost of the missing asset could be high (example – weapons)

• Processes which require unique, accurate identification of an object - this applies in particular for cases where false identification of an object can be fatal (medication) or identification is human error prone

• Every opportunity and business case must be inspected to see if RFID and sensor use is at the core of return on investment. RFID and sensors should never be a technology searching for a business application.


A Point of View


• Generated revenues of $13.67B in fiscal year 2004

• Employ over 110,000 professionals, based in 110 offices in 48 countries

• We serve 84 of the Fortune Global 100, two-thirds of the Fortune Global 500 and government agencies in 26 countries

• Of our top 100 clients in fiscal 2004, 93 have been clients for at least five years and 73 have been clients for at least 10 years

Accenture Overview

Company Overview

Fortune magazine's "America's Most Admired Companies" 2005: For the second consecutive year, Accenture has been ranked number one in the "Computer & Data Services" industry category in Fortune magazine's list of America's Most Admired Companies. Companies are ranked on eight key reputation attributes: innovation, social responsibility, employee talent, management, investment value, use of assets, financial soundness and products/services. Accenture ranked first in its industry group in all eight attribute categories.

Tier 1 AccentureDeloitteIBM

Key Government Services include:• eGovernment• Customer Relationship Management• Outsourcing• Finance & Performance Management• Human Performance• Procurement Transformation• Strategy Development


A Long History of RFID Activities

• More than 8 years of hands-on RFID research

• International network of RFID experts

• Recognized by industry analysts and media as thought leader in RFID

• Involved in global standardization efforts (EPCglobal / Auto-ID, ETSI)

• Dedicated RFID centers envisioning and building business applications for all industries

• Built the 1st RFID Middleware platform.

• Extensive implementation experience through RFID client engagements and R&D applications

• Leading several RFID industry initiatives

“Accenture is in a truly unique position (relative to its consulting peers); its thought leadership role in RFID should strengthen. This is in part based on the company’s early experimentation with RFID (7+ years), but also its existing consulting / outsourcing relationships with many of the leading companies in key industries.”

“ACN Appears Well-Positioned For RFID And With A Pragmatic View Of The Wave” Analyst comment, Goldman & Sachs, March 2004.


Examples of Labs RFID Work & Clients

Supply Chain Visibility “Gas Cylinder Tracking”

Warehouse Operations

Law Enforcement & Toll Collection “Electronic Number Plates”

Container Tracking “Freight Tracking”

RFID Pharmaceuticals Jumpstart


Accenture Technology Labs

• Accenture’s technology R&D organization• Close to 20-year track record of turning technology

innovation into business results to help organizations achieve high performance

• 150 specialists in Chicago, Palo Alto, and Sophia Antipolis• Driving the “Sensor Revolution”

• Leveraging Ongoing R&D in─ RFID: 7+ years of experience─ Telematics: 4+ years of experience ─ Remote monitoring─ Sensors and sensor networks

• At the intersection of business and technology, independent and objective, surveying the technology horizon and inventing the next wave of cutting edge business solutions

Business TechnologyValue

forClients


Selected Accenture Silent Commerce Credentials

Pickberry Vineyards, California• Demonstrated the application of sensor

telemetry in a rugged, real-world environment

• Allowed Pickberry to improve its business performance by improving crop management, lowering costs while raising product quality

Medical Device Manufacturer• Accenture worked jointly with various

client research and development groups to generate designs for a patient data portal to improve patient care, lower patient support care costs, and creation of a new revenue stream

Large Chemical Company• Evaluated and implemented

an integrated RFID, GPS and sensor based solution that improved the in-transit visibility of railcars

European Union• Planned and implemented an RFID

tagging system for the tracking of livestock

• Created a single system for health, movement, payment and inspections

EPC Pharmaceutical Jumpstart• Led initiative with 14 major pharmaceutical

companies and 2 trade associations• Investigated the use of RFID in reverse

logistics, track and trace, and counterfeiting applications as well as in improving operational efficiencies

Silent Commerce Credentials

Silent Commerce Credentials

Major Logistics and Shipping Company• Implemented an intelligent Asset Tracking

System (IATS) software that facilitates real time monitoring of company assets and customer goods as they move through distribution and hub facilities


Accenture Government Point of View on RFID and Sensors

• 50% of “RFID” Projects WILL FAIL• In the end, after all the hype settles, RFID and Sensors are nothing more than

data acquisition…• … That said, RFID and Sensors provide the capability for agencies to reinvent

and streamline processes, and improve security.• RFID and Sensor projects require:

– Business Case Development - Site and Usage Survey– Tag Prototyping with anticipated process - RF Optimization and Engineering– Methodology - Project management– An Integrator (people, process, technology, and alliances)– A pragmatic approach

• RFID and Sensors should be used when:– The ROI is better than when barcodes or no auto-id technology is used– They are integrated into a larger system and process (ERP, POS)

• Consultants and clients must understand:– The different types of business cases, and how difficult it is to develop a pure RFID /

Sensor business case– RFID issues (Signal Read Interference, Standards, Privacy, Cost)


Accenture Government Point of View on RFID and Sensors

It is all about the business application, not the technology

RFID and Sensors, Installation and Tuning

Integration

Systems, Business Intelligence,BPM

Business Goals

Pro

cess Re

des

ign


List Business Processes

Identify RFID Opportunities

Conduct Detailed Analysis

Prioritize Opportunities

The 4 step idea generation & evaluation process begins with an understanding of the your business processes.

How to Get Started


RFID Strategy & Business Case

Build Pilot

Test &Refine Model

ExecutePilot

Scale andRealizeBenefits

Business Case & Value Management

Program & Change Management

Accenture RFID Solutions Delivery Methodology

Accenture’s approach to RFID utilizes Solution Delivery Methodology, tailored for each situation

Phase 1: 6 - 8 weeks

Preliminary Data Gathering & Project Preparation

Develop Value Hypothesis & Understand Current State

Evaluate Opportunities & Define RFID Solution

Develop Implementation Plan & Business Case

Phase 2: 20 - 25 weeks

Select, Scope & Estimate Pilot

Execute Pilot

Test & Refine Models

Scale and Realize BenefitsPhase 3: 10+ weeks

Leverage success and learning from pilot to deploy and scale RFID solution across the enterprise

Conduct RFID pilot design and implementation testsRefine business model as appropriate

Develop and build technical architectureDevelop and/or configure technical middlewareIntegrate RFID solution into enterpriseCreate RFID Data warehouse and data mining capability

Identify pilot candidate, determine the scope of the pilot/s and estimate the time, resource requirements, and cost to implement the pilot

Understand goals and requirements, define scope, develop qualitative and quantitative data collection strategies, and mobilize team

Conduct interviews, hold workshops, collect data, identify key business issues and define RFID opportunities

Determine required technologies and define costsDetermine financial and strategic benefits Prioritize RFID opportunities

Create business caseAssess implementation alternativesDefine implementation plan and benefits timing

rfid

Business

rfid passive

information rfid

rfid tags store

use of rfid

active tags passive

multiple tags

electronic ink rfid

electronic identification