Asset management

							RF-ID
Technology Overview
   Electronic labeling system
   Consists of tag (transponder) and
    reader (transceiver/decoder)
   Can read from and write to tag
   Tags can be active or passive and have
    varying range (1-30m), data capacity
    (3-128 bits), data speed, costs ($0.25-
    $1), etc.
Market Overview
   Value Chain
       IP (Tag HW, Reader HW, Protocols, SW)
       Manufacturing (Tag HW, Reader HW)
       Data Management SW
       Implementation
   Total Market $1B in 2000, 25% growth
Applications
   Transportation/logistics      Electronic article
   Manufacturing/                 surveillance
    processing                    Asset management
   Security                      Fleet management
   Animal tagging
                                  Access control
   Waste Management
                                  Traffic safety
   Time/attendance
                                   enforcement
   Postal tracking
                                  Document management
   Airline baggage
   Road tolls                    Etc.
Players
   Chipmakers (TI RFID Systems, Philips)
   System components
   RF Systems (Checkpoint, Sensormatic,
    Intermec)
   Software
   Packaging
   Distribution/Integration
Standards
   Two major standards
       GTAG—on a roll, backed by major players,
        primarily for consumer markets
       MH10.8.4—dependent on Intermec,
        primarily for industrial markets
       May become compatible
   Others still being developed
Business Idea
   Need unique technology that outperforms in
    at least one dimension
       Performance (Range, Capacity, Speed, “Tag
        Intelligence”, Power [if active])
       Cost (Tag manufacturing cost vs. performance)
   Could be for application/environment with
    very unique demands?
   No simple niches to fill without new
    technology
Alternatives
   Better tag/reader performance
   Smart reader integration (Palm etc.)
   Better (cheaper) manufacturing process
   Better SW integration/service delivery
   Standard-agnostic possible?
   Specifically for… ?
Choice
   CheapChip
       Sacrifice range, speed, intelligence
       Maintain capacity, read-write
       Minimize cost of production
   Own manufacturing IP and Tag production
   Standard protocol
   Contract Reader and Software production
   Partner with integrators
Pain
   Keeping track of every part and every
    product in a build-to-order system
   Understanding an item’s history in
    quality control systems
   Doing it cheaply without disturbing the
    process
   Integrate all the information to a
    picture of the whole system
Value Triangle
   Customers: Logistics and manufacturing
    companies
   Product: Cheap tags
   Application: Store and communicate up-
    to-date information at a cost of 5c.
Value Proposition
   Benefits of RFID assumed clear
   The tag cost is 1/10 of current best
    practice
   Assuming tags are ½ of total cost, it
    cuts costs in half
Claim
   For the logistics or manufacturing
    company Who needs to track and
    understand its flow of work-in-process
    and finished goods, The CheapChip is a
    RFID chip that costs below 5c. Unlike
    existing RFID chips, Our Product
    makes a complete inventory tracking
    system cost-effective.
12 rules 1-6
1. OK: Total market $3B in 2005.
2. So-so: ½ for simple short-range, ½ for
   tags -> $½-1 B .
3. OK: Cheap and smooth logistics.
4. So-so: All are trying, but we
   supposedly made it.
5. Not OK: TI, Philips
6. OK: Proprietary technology
12 rules 1-6
7. OK:    Sure.
8. OK:    Can’t see why not .
9. OK:    Of course.
10. OK:   Trying.
11. OK:   Not on this planet/
12. OK:   Again, trying…
Cost/Benefit
   Cut cost in half
   No loss in performance for automated
    logistics/manufacturing processes
    where reader distance is short and one
    item is read at a time.
Competitors and Partners
   Competitors
       TI
       Philips
       Matrics
   Potential Partners
       TI
       Philips
       Intermec
       SAP