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Starting Small with RFID Technology

Monday, September 03, 2007

by Adi Tedjasaputra

RFID technology has been called and associated with many things: Barcode on Steroids, Next-generation Barcode Technology, The Internet of Things, Big Brother and even Spy Chips. No matter what people say, when RFID project proposals come to the hands of Chief Financial Officers or Finance Directors, RFID will just become the same thing: TECHNOLOGY, with a potential to bring benefits and also costs to organisations. Starting Small with RFID will help decision makers to justify the cost of RFID investment, while still providing an opportunity for organisations to see the real benefits of RFID.

Most organisations contemplating to embark on RFID initiatives will face a challenge to bring most benefits of the technology, while mitigating the costs and risks associated with it. Think Big, Start Smart and Scale Up with Agility is the key strategy for any successful RFID initiative. Using the strategy, decision makers can harness the potential benefit of RFID technology, justify the cost of investment, while still maintaining the flexibility for changes throughout their business process optimization, thus lowering the risks.

One of the key components in the Agile RFID strategy is Start Small. Here are a few tips to Start Small with RFID:

1. Focus on Existing Infrastructure

Reusing the existing infrastructure can deliver benefits at minimum cost in RFID implementation. However, this aspect is often neglected due to the lack of knowledge in the integration capability and capacity between the existing infrastructure and the new RFID infrastructure. By identifying one or more application areas where you can still use the existing infrastructure, you have reduced the time and cost for RFID infrastructure integration, which usually represents the largest cost component. For example, if you want to use RFID technology to enhance the convenience of access to a room or building, you may want to make sure that the new RFID infrastructure can easily be integrated with your existing access control and security systems. If you plan to print smart labels and currently have barcode printers, contact your barcode printer vendors and ask for upgrade options and plans, before buying some new RFID printers.

2. Focus on Scale
Focus on Scale.

Large projects are prone to delay and failure. Whenever possible, break up a large RFID project initiative into some smaller RFID projects. Identify which small project will deliver the most impact for your organisation at the shortest time frame with the least investment. For example, automatic stock counting in a warehouse using RFID technology usually takes shorter time to implement than real-time asset location tracking, but the value delivered by the stock counting application is significant and less costly than the asset location tracking. By executing your plan properly and showing the benefits of RFID technology through your successful small project, it will be easier to convince your Chief Financial Officer or Finance Director about the value of RFID technology.

3. Focus on RFID Core Values
Focus on Core Values.

Understanding the power of RFID technology and its limitations is the key to stay focus on RFID core values. Unrealistic expectations from RFID technology are not only misleading, but also reducing the possibility of unleashing its vast potential. In addition, as any other technology, RFID also has its limitations. For example, the use of RFID technology for real-time asset tracking in asset management over continents will require an integration with other technology, such as Global Positioning Satellite (GPS). Focusing the use of RFID technology for real-time asset tracking in a limited area such as warehouse usually delivers more value than real-time tracking over a great distance.

The writer is the Founder of RFID Asia - The Prominent RFID Community in Asia.

Reference

Tedjasaputra, Adi (2005). RFID Phased Approach Needs Improvement. RFID Asia. Retrieved on September 3, 2007.

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Labels: business, project, rfid, security, technology, tracking