RFID: Radio Frequency Identification
A Look Into The Future
"RFID holds a great deal of promise, and could help redeem traditional enterprise software, but there's also human nature involved and ultimately humans could be a barrier to RFID."
—Navi Radjou, Forrester Research
"RFID can be big brother if the manufacturers and stores that use it want it to be...The technology is here. It's up to the various players to form the business practices surrounding it."
—Kevin Beaver , Principle Logic LLC
Background:
Radio frequency identification (RFID) is a method of remotely storing and retrieving data using devices called RFID tags. These tags are small objects, attached into a product, that contain antennae which enable them to receive and respond to radio-frequency queries from an RFID transceiver. Thus, tags can be read from a distance, not requiring direct line of sight like barcodes. RFID tags are divided into two subgroups: passive and active. Passive tags simply use the electromagnetic waves received during the communication to run its process of sending information back to the reader. Active tags don't rely on the signal for power; instead a battery runs the chip's circuitry. Active tags are therefore much larger, more expensive, but able to transmit from further distances. Active tags can get as small as the size of a coin, cost around $1.00, and transmit up to 100 meters, while passive tags can be as small as 0.4 mm x 0.4 mm, cost $0.40, and transmit from 10 mm to 5 meters. Experts estimate that in order for the technology to be worthwhile, passive tags must cost around $0.10. [1] Passive tagging is the more feasible of the two due to its cheaper price and longer lifetime.
Cost isn't the only thing preventing mass acceptance of RFID, however. Standards haven't been fully implemented to govern the use of RFID. Radio frequency ranges have been set up, but the U.S. often operates on a range different from the rest of the world. [2] The ranges are: low frequency tags (between 125 to 134 kilohertz), high frequency tags (13.56 megahertz), ultra-high frequency tags (868 to 956 megahertz), and microwave tags (2.45 gigahertz). [1] With such ranges for low and ultra-high frequency tags, the technology isn't yet usable cross-corporation, which might be a good thing. Such implementation requires a closed-loop system. For example, Company A puts an RFID tag on a product, but it can’t be read by Company B unless they both use the same RFID system from the same vendor operating on the same frequency. [2] As you can imagine, it's hard to implement such a plan, but Wal-Mart is trying. However, what would happen if anyone could take a reader to a Wal-Mart and read the tags if they have it on the right frequency? Competitors could easily track what's leaving the shelves at Wal-Mart and adjust their own prices and products in order to compete.
Present:
RFID is currently used for a broad array of purposes. Some current uses include:
The main uses are building access control, toll payment, and pallet tracking. The RFID technology allows a badge to be read, thus allowing access to buildings. This use is growing rapidly and will only continue to grow. UNC currently uses this method to allow its students access to the dorms they live in. EZ Pass allows for vehicles to quickly pass through tolls on a pre-paid account. Problems have resulted with the tags continuing to allow access even after their expiration. I wouldn't be surprised to see a method created that will wipe the tags upon their expiration to allay this problem. Pallet tracking is probably the most profitable (or potentially profitable) of all the current uses. Corporations can save millions in logistics through the minimization of human capital since all the individual products can be scanned and accepted at once.
On November 19, 2004, the FDA approved RFID for patient identification within surgery. The tag stores information like patient name, surgeon, procedure, etc. [3] Obviously this can cut down on medical mal-practice suits helping both patients and hospitals. This plan could ultimately save all Americans on healthcare costs since they ultimately pay the mal-practice settlements.
RFID is obviously a controversial topic with some substantial fears. Privacy is a major concern; people are concerned with companies tracking their buying habits and being unaware of their tags being scanned. However, profits always have a way of overruling any concerns. Wal-Mart is a chief example as it has become the pioneering icon of RFID technology. Wal-Mart is forcing its top 100 suppliers to implement RFID by January at no additional cost so the chain can monitor its inventory and stocked items. 98 will make the deadline, while 2 have received extensions for extenuating circumstances. [4] With the information retrieved, the retail chain can more precisely match inventories to customer demand, avoiding the cost of carrying too much of less-popular products while increasing revenue by having high-demand items more reliably in stock. Consumers' fear of being tracked is a concern. However such fears can easily be allayed through the installation of a system that will wipe the tags upon their departure from the store. Thus far, people have been unable to restore the wiped tags making such a solution plausible.
Some fears are completely unproven and media-driven. Forbes claims that with RFID, anyone can take a tag reader, scan a product's tag into the reader, and then replace the information on that tag with information from the reader. [5] This statement is just ridiculous. First of all, one would have to know the frequency the tag is transmitting at. This is becoming easier to figure out with the regulation of RFID to standard frequencies. However, it also implies that the tag is read/write. A company with any sense would simply implement a read only tag to prevent such attacks. Problem solved, but that wouldn't make a very good article, would it?
Future:
RFID is such an intriguing concept to businesses because it can cut inventory and supply chain costs through its implementation. The ultimate goal is for RFID to replace barcodes. RFID allows for individual product identification, not for product line identification like barcodes. If this takes place, individual products can be read letting stores locate those items if needed. Stores can also track when items leave the store allowing them to easily replace items when one is purchased. One example of such a use is in a grocery store. The store can identify individual foods that are going to spoil, allowing it to locate the items and either put them on sale or dispose of them. Furthermore, shipments can be easily and quickly sorted and accepted by the receivables department. With the reader, products can be received without even opening the pallet cutting logistical needs. Obviously RFID is a great tool for the supply chain and companies wishing to better track their products and inventory. As a result, I don't see it disappearing. I think it will definitely become a requirement for all suppliers to use RFID tags when the tags become affordable in the very near term.
I don't foresee a Road Beacon System being installed anytime. In this system, tags would be installed in the road with readers in cars. The readers could receive information ranging from speed limit to position information. [1] This proposed method is simply way too costly and an inefficient use of government funding.
I will guarantee that Wal-Mart will crush its RFID opponents and successfully implement the tagging of every product within 5 years as costs come down. Wal-Mart has a larger economy than most countries in the world and with that comes power. As a result, the U.S. government will do whatever it can to aid Wal-Mart in its endeavors without regard to privacy concerns. In the very-long term (20 years), I wouldn't be surprised to see Wal-Mart or another retailer install sensors with the RFID tags in order to track conditions. One example of sensors in use is to monitor food temperature during foods' shipment in order to prevent spoilage.
I can foresee there being a problem with reading tags with an external reader due to the standardization of RFID technology. Steps will have to be taken to counter such problems, and my solution is to use a form of encryption. If the tags send their messages in an encrypted format, only the authorized reader will be able to decipher the signal. Such a method is years away, but I believe this method will have to be used before tags are widely used in retail chains to track inner-store inventory.
In closing, I believe RFID has a very bright future. Out of a possible 5 stars, I'd give its future 4.5. I don't foresee the privacy concerns being a large enough issue to halt RFID's wide-spread acceptance after cost and standardization issues become solved in the coming years.
Bibliography:
[1] Wikipedia. RFID. 2004. 1 Dec. 2004 <http://en.wikipedia.org/wiki/RFID>.
[2] RFID Journal. Frequently Asked Questions. 2004. 1 Dec. 2004 <http://www.rfidjournal.com/article/articleview/207>.
[3] The Wall Street Journal. FDA Approves Radio Chip for Use in Surgery Patients. 19 Nov. 2004. 1 Dec. 2004 <http://online.wsj.com>.
[4] Warren, Susan. Suppliers Struggle with Wal-Mart ID-tag Plan. 18 Nov. 2004. 1 Dec. 2004 <http://online.wsj.com>.
[5] Hesseldahl, Arik. A Hacker's Guide to RFID. 29 July 2004. 1 Dec. 2004 <http://www.forbes.com/home/commerce/2004/07/29/cx_ah_0729rfid.html>.
