The Advocate: RFID is crossing the chasm now, and will get to mainstream over next year or

two!

Joe White, COO

What does it mean to “Cross the Chasm”?

Technology must be proven and no longer in question

Early Adopters have achieved their vision delivering clear ROI’s

Application must be well defined and products fit their needs

Solution must be easy to integrate

Early Majority wants to enhance their existing processes with the technology (different than the Early Adopters who are often willing to build the solution ground up)

Technology must be considered ‘industry standard’

The Early Market

The Mainstream Market

Innovators Early Adopters Early Majority Late Majority Laggards

The Chasm

Where are we now? - Technology Adoption LifecycleThe characteristics of market adoption

Now

Small Scale Pilots & Migration to Gen 2• Metro• Hong Kong Airport• McCarran Airport • Purdue Pharmaceutical• Abercrombie & Fitch• Sam’s Club• Boeing• Airbus• Impinj

Gen 1 Gen 2

Expanded Rollouts & Certain Apps move to Mainstream• Metro• Sam’s Club• American Apparel• Boeing• Airbus• DISA• Wal-Mart Expansion•NASA Kennedy Space Center• Falabella• Willis Lifestyles•………..

1st Generation Technology• MIT Labs• Wal-mart• Gillette• P&G• Alien• Matrics

Class 3 - BAP Gen 3

In fact the list of adopters is long……

Manufacturing

SupplyChain

Energy/Utilities

Food / ColdChain

AssetManagement

• American Apparel• Falabella• Jones Apparel Group• Kimberly-Clark• Liverpool• New Balance• Staples• Walgreens• Wills Lifestyle

• Aker Yards• Alameda County• AMT – Montreal Transit

Authority• ATI – Wah Chang• Canadian Rail• Correos• Cost Plus World Market• Crown• FEMA• Howard County, MD• Kimberly Clark• Kraft• Madison Abstract• San Bernardino Cty, CA• Shoppers Drug Mart• Sun Microsystems• SVG• U.S. Courts

• Dole• Hawaii Dept. of

Agriculture• Ingersoll Rand• Kroger

• Dow Corning• Endwave• Handleman Company• Mitsubishi Electric• Volkswagen

• Daimler Trucks• Dairy Farmers of

America• Exel• H & M Bay Inc.• IGPS• KPN• Lexar• Megatrux Inc.• Raytheon• UPS• Van Ness• YCH• Yodabashi

• Top 3 Financial Services Co.• Top 5 Financial Service Co.• Top 5 Healthcare Services

Co.

• Aker Yards• Duferco• Qatar Gas• Sempra Energy• Tejas Tubular• Tenaris• Vale Inco

• Boeing• British Airports

Authority• Hong Kong International

Airport• Lufthansa• McCarran International

Airport

RetailAviation /Baggage Tracking

IT Asset Management

The Early Market

The Mainstream Market

Innovators Early Adopters Early Majority Late Majority Laggards

The Chasm

Where are we now? - Technology Adoption LifecycleThe characteristics of market adoption

Now

Gen 1 Gen 2

Applications will cross one at a time!• Asset Tracking• Retail Item Level – Fashion• Asset Tracking• Supply Chain• Cold Chain/ Perishables• Aviation MRO & Baggage Handling

What will be first???

Class 3 - BAP Gen 3

The Signs of Broad Industry Adoption

RFID Technology is going away in favor of RFID Solutions/ Applications How far does the tag read? How many Tags per second? Does Gen 2 work?

Stand alone technology is going away in favor of RFID embedded Introduction of Gen 2 silicon (Stable standard!)

Generic RFID Readers are being replaced with Application Specific form factors ‘fixed readers’ vs. forklift, in-store retail, POS, warehouse, etc

Clear ROI in focused applications RFID Item Level in Retail Fashion (Apparel, Footwear, and Jewelry) Asset Tracking (IT, Oil & Gas, Reusable Containers, etc) Closed loop systems

IT driven RFID initiatives to validate technology is moving to Store Operations driven and implementations based upon business value.

Customers are planning chain wide rollouts!!!!!

“The Advocate: RFID is crossing the chasm now, and will get to mainstream over next year or two!”

Re

tail

Asset Management

Here and Now

2009 and Beyond

Aggressive Growth in Defined Markets

Tra

ns

p.

& L

og

ist.

Go

vt.

Ma

nu

f.

Retail Item Level Visibility

Supply Chain Management

Cold Chain - Perishables

Aviation/Baggage Tracking

Leading Markets/Apps

Questions