Rfid for Retailers Project Report

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					                            RFID 1


      Prepared for

 Professor Ralph Walker
Kennesaw State University
   1000 Chastain Road
Kennesaw, GA 30144-5591

       Prepared by

      Ryan Bennett
     Andrew Hardel
     Jeremy Merrick
       Grady Pfahl
       Justin Scott

   November 21, 2005
                                              RFID 2

                          TABLE OF CONTENTS

Cover Page                                         1
Table of Contents                                  2
Letter of Authorization                            3
Letter of Transmittal                              4
Operating Agreement                                5
Formal Report                                      8
Works Cited                                       18
                                                                                                              RFID 3

                                                               July 25, 2011

BISM 2100 Students,

The purpose of this assignment is to integrate the material you have learned about Business Information Systems into a
coordinated report and presentation and to allow students to focus on an emerging technology.

You are being asked to perform a detailed analysis of RFID (Radio Frequency Identifictation). This is a formal report
and must follow the format provided in Chapter 9 – Thill/Bovee (2005). The formal report, at a minimum, should
include information on:

         Introduction to RFID – What is it? What will it do? How will it affect the business as we know it today?
         The background of RFID – What problem is it trying to solve? Who is pushing for RFID?
         Issues related to RFID implementation – What does this mean for today’s business? For Customers?
         Specific issues related to RFID – Security? Cost? Privacy?
         Competitive assessment – Who is at the forefront of this emerging technology?
         Recommendations – What are the potential uses for our company?

The information contained in your presentation will be used as a training tool for Information Technology Students and
Staff. You will therefore want to present a carefully researched, thoughtfully written, and comprehensive formal

Use a FORMAL REPORT structure for the report. Be creative and complete in your analyses and presentation. You
should gather and include any analyses necessary to appropriately convey an understanding of RFID and its impact on

Use both commercial and academic resources (Minimum of 5 each). Where appropriate, you should incorporate charts,
graphs, or other visual aids to illustrate the facts you present both in your report and PowerPoint presentation. Use an
internal attribution style. (APA)

Written Report:
Your managerial report must be submitted through WEBCT. (Each student must submit a copy of his or her team’s
output through WebCT).

A comprehensive formal report employing employing effective business writing techniques                  30 points
(Chapter 5, Thill/Bovee, 2005)
Thorough research of sources – academic and commercial                                                   10 points
Attributions and Citations done properly                                                                 10 points
Operating Agreement included AFTER the Letter of Transmittal                                             10 points
Detailed analysis covering requirements stated above                                                     30 points
Well developed recommendations                                                                           10 points


                                                               Ralph G. Walker
                                                               Professor, BISM 2100

                           1000 CHASTAIN ROAD • KENNESAW, GEORGIA • 30144
                                   PHONE: 770-423-6120 • FAX: 770-423-6601
                                                                                 RFID 4

October 31st, 2005

Professor Ralph Walker

Kennesaw State University

1000 Chastain Road

Kennesaw, GA 30144-5591

Dear Professor Walker,

RFID, Inc. has completed the formal report as you requested. Inside, please find a
detailed summary and analysis of Radio Frequency Identification tagging and its effect
on the way business is evolving.

This report condenses the available information on RFID technology and gives an
outlook on how exactly the future of business is dependent upon the implementation and
usage of this technology.


Ryan Bennett, Formal Report Writer
                                                                                      RFID 5

                                     RFID, Inc.
                                   Jeremy Merrick
                                     Grady Pfall
                                    Ryan Bennett
                                   Andrew Hardel
                                     Justin Scott
                                    Team Motto:
               “Individuals accomplish tasks, teams achieve goals.”

     (1) Effective Date: This team operating agreement of Boundless Enterprise (BE),
            effective October 31 , 20005, is adopted by the members whose signatures
            appear at the end of this agreement.
     (2) Formation: This team was formed by the select group of courageous students of
            BISM 2100.
     (3) Name: The formal name of this team is RFID, Inc. and the team shall conduct all
            business under this name as a whole, not as individuals.
     (4) Purposes: The specific team‟s purpose and activities contemplated by the
            founders consist of the following: to analyze Radio Frequency Identification
            Tagging and to explore ways it helps to improve the evolution of the business
           It is understood that the foregoing statement of purposes shall not serve as a
           limitation on the abilities of this team.
     (5) Duration of the Team: The duration of this team shall be till death do us part until
           the end of the Fall Semester of 2005.

     (1) Non-liability of Members: No member of this team shall be solely or personally
           liable for any team expenses.
     (2) Reimbursement for Organizational Costs: the team shall reimburse Members for
           expenses agreed upon by all the members of the group. Costs not agreed
           upon by the group as a whole are not subject to reimbursement.
     (3) Management: The elected Team Captain of RFID, Inc. is Jeremy Merrick. He
           shall preside over the meetings, send out the email reminders, and delegate
           the tasks of the group, in addition to helping with any tasks he himself has
           personal experience with (such as the video editing).
     (4) Membership Voting: Each member shall vote on any matter submitted to the
           membership for approval. We will govern by consensus.
     (5) Members‟ Meetings: Any member may call a meeting by communicating his or
           her wish to schedule a meeting to all other members. Such notification may be
           electronic (e-mail), in person or by telephone to meet at a mutually acceptable
           time and place.
                                                                                           RFID 6

                   If all members cannot attend a meeting, it shall be postponed to a date and
                   time when all members can attend, unless all members who do not attend have
                   agreed in via email to the holding of the meeting without them.
                   All members are expected to arrive at meetings on time and prepared to
                   discuss the work at hand. Meetings and discussions should foster sharing of
                   ideas, creativity as well as constructive not destructive feedback.
                   If any single team member continually does not show up to meetings he is
                   subject to forfeiture of his or her grade at the discretion of the team and team
                   leader ad mentioned above.
                   Written minutes of the discussions, proposals, key topics, and decisions
                   presented at a members‟ meeting, shall be recorded by one (or more) of the
                   members designated at the meeting.
                   Predetermined Mandatory Meeting Schedule:
                   October 31 , 2005- Discuss and form a workable operating Agreement
                   November 7th, 2005-Delegate and begin tasks immediately
                   November 14th, 2005-Reference List and web page evaluations due (inter-
                   November 21 , 2005-Formal report along with team evaluations due
                   November 28 , 2005-last meeting to finalize watch finalized video before it‟s
                   December 2 Due date.
              *Meetings can be changed due to the holidays and the availability of team members.

              (7) Other Business by Members: Each member shall agree not to bring in conflicting
                    material (say from another class or from work) if such activities would compete
                    with this team‟s goals, mission, etc. or would diminish the member‟s ability to
                    provide maximum effort and performance in managing the team.

              (1)    Expected Contributions:

                    I. Strategic Planner: Jeremy Merrick

                    II. Web Master: Andrew Hardel

                    III. Lead Researcher: Justin Scott

                    IV. Presentation Technologist: Grady Pfahl

                     V. Formal Report Writer: Ryan Bennett

        (2) Additional Contributions by Members: The members may agree, from time to time by
unanimous consensus, to require additional contributions by the members, on or by a mutually
agreeable date.

              (3) Failure to Meet the Time Deadline for Expected Contributions :
                     If a member fails to meet a required deadline within the time agreed, the remaining members may, b
                                                                                         RFID 7


            (1) A member may not withdraw from this team unless there is some serious event
                  that limits them from participating in the class. There must be documentation
                  and approval from the team captain as well as the professor well in advance of
                  any due dates for a withdrawal to take place.

           (1) Events That Trigger Dissolution of the Team: The following event shall trigger
                 dissolution of the team: the end of the class

           (1) Records: The Team shall make provisions to keep most of its documents saved
                 on hard disk or in email to avoid any loss of work due to power failure or the
                 classic „the dog ate my homework‟ excuses.
           (2) Mediation and Arbitration of Disputes Among Members: In any dispute over the
                 provisions of this operating agreement and in other disputes among the
                 members, if the members cannot resolve the dispute to their mutual
                 satisfaction, the matter shall be submitted to mediation with the GBA 6100
           (3) Entire Agreement: This operating agreement represents the entire agreement
                 among the members of this team, and it shall not be amended, modified or
                 replaced except by a written instrument executed by all the parties to this
                 agreement who are current members of this team.


           (1) Execution of Agreement: In witness whereof, the members of this team sign and
               adopt this agreement as the operating agreement of this Team.

August 25, 2001

Signature:____________________________________________               Jeremy Merrick

Signature:____________________________________________               Grady Pfhal

Signature:____________________________________________               Andrew Hardel

Signature:____________________________________________               Justin Scott

Signature:____________________________________________               Ryan Bennett
                                                                                     RFID 8

                                         RFID, Inc.

       RFID tags have been around since the mid 1940’s when Harry Stockman

published his landmark research paper entitled "Communication by Means of Reflected

Power." While it wasn’t as advanced as it is today, the concept was born out of this

paper. After more than three decades of research and development, we now have the

system of Radio Frequency Identification Tagging, commonly referred to as RFID. The

basic function of RFID is to improve supply chain management for companies around the

world. As supply chain management improves, so will profitability and product flow in

the market, thus leading to cheaper products more readily available to a waiting consumer

marketplace. RFID also seeks to solve several other problems: quicker electronic

payments in the supermarket, long range control of vehicles, tracking of inmates on

parole, as well as others. The main purpose of RFID is to allow for more efficient

tracking and unloading of an item or person (RFID, 2005).

       RFID accomplishes this goal by allowing for drastically less unload times

between trucks and freighters. Instead of having to scan each individual item as it is

pulled off of a truck or out of it’s freight pallets, a system equipped with RFID can just

move the entire pallet past one point and the computers will read what the contents of

each of the boxes is. By doing this, freight can be moved and unloaded much more

accurately and efficiently allowing for less human error in the check in process.

       The two main companies or entities driving this technology into the mainstream

market place are Wal-Mart and the Department of Defense, along with Texas Instruments

which is the primary producer of the devices.(Broersma, 2003) Wal-Mart has
                                                                                    RFID 9

implemented a mandate with all of it’s vendors to include RFID tagging in their

shipments or risk losing their lucrative contracts with the company. While this has taken

some time, it has slowly begun the process of changing the overall marketplace, because

a vendor that does business with Wal-Mart likely does business with its competitions and

as such the practice has begun to spread through the retail industry. (http://www.epEPIC

questions to RFID Industry, 2004)

       Texas Instruments, the company that industry leader in RFID, currently has

produced close to 500 million of the tags. (TI-RFid™ and your EPC Supply Chain, 2005)

The tags have applications in everything from calculators to cars to military equipment.

The Department of Defense (DOD) is currently using the tags in a variety of ways, from

everything of long distance control of military vehicles to bagging and tagging freight to

be shipped around the world.

       “Automatic identification and data capture”, it’s a concept that nearly everybody

is familiar with but very few have heard of. It is the idea that a person or company can

gain information about an item involving very little or even no human interaction with

the item. An extremely common example of this is the bar code. They are on nearly every

item bought in stores today. Bar codes have been extremely successful to date as a means

of convenient data capture. However, as technology tends to do, they are quickly

becoming outdated as they do not meet certain needs.

       Bar codes must be able to be clearly visible for a computer to be able to read

them. This means that they must not be written on in any way and no packaging material,

such as labels, may cover them. Users also may not change the data contained on a bar

code once it is printed. These fundamental problems in automatic identification and data
                                                                                       RFID 10

capture are all satisfied by RFID. Similarly to the way bar code technology uses a

scanner, RFID uses an “interrogator” to read data on RFID tags. However, there is no

lens or scanning element involved with RFID. Because RFID can be used without any

direct line of sight, the signal must be sent electronically. In the most common form of

RFID this is accomplished by the interrogator sending a constant signal, or “request” for

information via a radio signal. A tag designed to tune into the corresponding frequency is

able to detect, or “hear” this request. Once a tag hears this request, it is able to use the

signal sent out by the interrogator to generate a small amount of power that is needed to

simply reflect back this same radio frequency, only with it is sent that tag’s specific

information (Ramasastry 2005).

        The interrogator then is able to hear the tag’s response and automatically capture

that information reflected with the frequency. The interrogator is most often connected to

a computer where the information is sent and processed by various programs that are able

to manipulate it to fit the company’s needs.

        The most obvious application for RFID is that of tracking purposes. RFID tags are

relatively cheap to fabricate and distribute as they often contain only a small mount of

metal embedded into a label or packaging material. This opens up an entire realm of

possibilities of quick, easy, tracking options.

        What RFID inc. is proposing is that organizations such as The American Red

Cross and Lifesouth use RFID in the tracking process of blood donations. The American

Red Cross alone is involved with more than six million individual blood donations each

year. RFID would allow them to quickly and efficiently process and track each of these

donations with virtually no excess effort by volunteer workers.
                                                                                    RFID 11

       The American Red Cross already has a system in place to gather information

about donors. Right now, a donor sits down with a worker and answers a series of

questions. Through this, the worker gains vital information regarding the validity of the

blood, the type of blood, and the donor’s personal information should the Red Cross need

to further contact him. Utilizing this technology would involve nothing more than the

worker printing out a label containing an RFID tag with information specific to that

donor and his blood. The label could be applied to the bag used to contain the donor’s

blood and from that point the Red Cross can track that blood in and out of every truck,

warehouse, and testing facility. Also, because that blood’s information has been entered

into the computer, the Red Cross can now use that system to track their exact inventory

of blood, how much of each type of blood they have, and which locations need more of

what blood. This facilitates disaster relief efforts exponentially in that the exact amount

of each type of blood needed in any given area can be easily tracked down and shipped

from multiple locations in a matter of minutes, saving lives.

       For businesses today RFID is growing rapidly. Almost every business today is

incorporating RFID into their product. RFID is making safer ways of transportation and

communication from having trucks tagged to using smart keys for some cars. With RFID

businesses can help prevent the loss of money and the loss of time.

       There are issues to think about when RFID tags are being used. There is a

possibility of cloning an RFID tag. This is extremely dangerous because there are many

ways this could effect a business. One way is car theft. If one were to clone a tag for a

lexus he or she could then find the person that purchased that particular car and steal it.

The person doing the cloning could also steal many other cars as well. Another way this
                                                                                    RFID 12

cloning could effect a business is credit cards. The magnetic strips using RFID could

also be clones. This could result in much higher cases of credit card theft. Cloning RFID

tags is a main concern within everyone using RFID tags.

       There are a few ways to use defense against the RFID cloning. One way is to

limit the range of the RFID scanning. This will lesson the chances of someone trying to

clone the RFID. Another useful way businesses can prevent cloning is Cryptography.

This allows tag information to never be sent over an insecure channel between the tag

and the reader. Where technology advances, there will always be people learning the

new ways as well.

       RFID tags have some regulations, just like any other technology device. In

Europe RFID tags are not allowed to be thrown away. This disrupts recycling. There are

frequencies that are confidential and are not to be used while using RFID tags.

Businesses must learn of the frequencies and regulations before using their tags.

        Though there are few regulations and theft concerns for RFID tags. Most of all

the tags do help businesses more than anything. As far as theft goes, there has been more

stuff saved than stolen. There has been more products found than lost and there has been

more beer kegs returned to their vendors safely.

       One would love to order something and then always know where it was not matter

what time of the day. Well using RFID customers can track down their order to the exact

location. People can also buy a car and have it protected using RFID tags. This would

protect if from being stolen and check where the car could be at all times. IT is also great

to pay for speedy gas with your fast gas card at the gas station. These are all good

reasons for having RFID tags, but there should also be a concern for RFID tags.
                                                                                     RFID 13

       There are some main privacy concerns regarding RFID. One of the concerns is

that if a purchaser buys something he or she may not be aware that there is an RFID tag

and they may not be able to remove it. This is definitely a privacy factor because if one

buys something, they should definitely have all of the rights to the product. Another

privacy concern is that the tag could be read from a far away distance without the

individual even knowing. Also if a tagged item is paid for using a credit card, then the

magnet with the information in the credit card could be recorded onto the RFID, which

could be monitored from wherever the tag came from. These are most definitely

important issues regarding RFID tags.

       Tag security and privacy is a priority issue related to RFID systems. In fact, 42

percent of google searches on “RFID” include the word privacy (RFID, Gazette 2004).

The problem is that the RFID tags can sometimes contain personal information. For

example, if a man had bought a book, a watch, and a radio all containing RFID tags, then

anyone with a RFID reader would be able to see what the man was carrying. This

presents a problem, especially when RFID readers get into the wrong hands like robbers.

Some organizations have began to alert consumers of possible threats to their privacy.

One of the most active of these has been CASPIAN, Consumers Against Supermarket

Privacy Invasion and Numbers (McGinity, 2004). These organizations feel that a tagged

product will be tracked as it exits the store or library, but will be read again throughout

the product’s lifetime. Anyone with a reader could see what a passing consumer bought

and determine where their clothes came from, how much they spent on it, and what book

titles are in their briefcase. Although this idea is only conceptual right now, it is much

more problematic that it first appears.
                                                                                     RFID 14

       There are a few different approaches being looked at as solutions to the security

and privacy issues of RFID tags. One approach is to cover the tags with foil. This would

decrease the distance the RFID tags would read back to a reader. Another talked about

option is to completely do away with RFID tags. Although this would do away with the

problem, RFID tags can be very beneficial if used correctly. The third and most

beneficial solution is called the “blocker tag”. The blocker tag simulates all combinations

of serial numbers, which causes the reader to go haywire. The blocker tags could be

placed over the original tags after the purchase of an item.

       The introduction of RFID systems will cost companies millions of dollars.

Specific costs for the systems include tags, readers, tag printers, middleware, IT

infrastructure, consulting, R&D, changes to internal business systems, training, third

party licensing, facilities changes, and labor (Shutzberg, 2004). The investments in RFID

systems by companies are driven by the demands of customers, while the hope that the

system will reduce costs down the road must be taken as a matter of faith. However, most

RFID experts believe the technology will accomplish much more in terms of efficiency

and cost savings than was achieved with the Universal Product Code (UPC) nearly 20

years ago.

       It is estimated that the RFID industry earned $300 million in 2004 and they

project a growth to $28 billion by 2009 (TechWeb, 2005). There are two big reasons for

the expected expansion. The first is the adoption by major retailers like Wal-Mart and

government agencies like the Department of Defense. The second is the reduction in the

price of tags, readers, and IT systems required to deploy RFID. Currently, tags cost

anywhere from fifteen cents to one hundred dollars. Many companies look forward to a
                                                                                       RFID 15

drop in the tag price to five cents or less. The higher priced tags are usually much more

complicated and used on higher priced items.

       Due to the potential of this technology, there has been a huge emergence of RFID

specialty companies and the development of RFID practices within many market-leading

companies (Tech Web News, 2005). The different parts that go into the complete RFID

systems include; chips, inserts, printers, tags, antenna, readers, data aggregation,

middleware, directory services, and consulting. Chips are the most basic part of the

RFID systems. The leading chip manufacturers right now are IBM, Hitachi, Philips,

AMI, TagSys, RFSaw, and Charterate. The leaders for the inserts in the chips are

International Paper, MeadWestvaco, Texas Instruments, Avery Dennison, SmartTag,

Rafsec, Power Paper, and LabID. The next part of creating the RFID systems is the

making of the printers to create the tagging. The main companies for printers are Zebra,

Printronix, Alien tech, Intermec, and Toshiba. The most inflated section of specialty

companies are the actual tag manufacturers. There are dozens of companies already in

this field. Some of the leading producers are Alien Tech, Matrics, Intermec, Philips, TI,

SAMSys, MeadWestvaco, Flint Ink, Hitachi, Siemens, Power Paper, Avery

Dennison, TagSys, RFSaw, Savi, Rafsec, FlexChip, Omron, iPico, Identec, Amatech,

Tyco, Wavetrend, and LadID. Antenna leading producers include Flint Ink, Avery

Dennison, Moore, EMS, and Omron. The second most inflated section of specialty

companies is the RFID readers. There is still much room for improvement in the readers

that can help with accuracy and price, which leaves room for more companies. As of

now, some of the leading RFID reader manufacturers are Alien Tech, Intermec, Matrics,

Symbol, TI, SAMSys, Hitachi,Checkpoint, Savi, TagSys, Rafsec, Wavetrend, Feig,
                                                                                  RFID 16

Omron, Tyco, Moba, Siemens, InKode, Amatech, Identec, and iPico. The data

aggregation, consulting, and the middlware sections of RFID are mostly controlled by

IBM. Even though the competition right now for RFID is limited it has the possibility to

develop into one of the most highly competitive markets in the near future.

       Radio Frequency Identification deals with storing and remotely retrieving data

using devices called RFID tags. Attaching tags to the blood enables the recipient to keep

track of the blood type and the amount of reserve kept in inventory. It does this by using

the antenna on the tag to enable it to receive and respond to radio-frequency queries from

an RFID transceiver. This technology can be used to help productivity in industry via the

saving of profit, non-need for stocking warehousing, and time saving knowledge for


       Profit, being what every company or private business tries to gain more of, can be

increased through the use of RFID tags. Due to the relative inexpensive cost to

manufacture and use these tags, a company could tag all of their products and eliminate

the problem of lost merchandise that could be thrown out accidentally or misplaced. This

works by the placing of the transceivers in every exit of the building to alert management

if a product is taken out of place. With this system, a company could save thousands in

write-offs every year.

       On the other end of the spectrum, a company could eliminate the whole need for

storing product in warehouse thus saving even more profit. Through the use of RFID, a

company could keep almost perfect track of what is in stock and what needs to be

restocked. An example of this is already in use; Wal-Mart is known for their method of

ordering what products are in need of restocking and for their absence of warehouse
                                                                                 RFID 17

stock, thus saving millions in profit.

       If inventory is a must have for a company, RFID tags could enable the business to

save valuable company time by obscuring the need of checking in merchandise manually

while providing for an increase in productive work. As stated earlier, the tags would be

automatically read when first brought into the warehouse or stocking room and the

information would be sent straight into a database. This database can be easily accessed

by management when the need to check for inventory or if the right and specific amount

of merchandise was received.

       As you can clearly see, the future use of our business procedures could greatly

increase profit and save valuable company time for many types of industries. If used in an

effective way, a company can maximize on lost profits and produce greater revenue. All

of this is achieved via the addition of RFID tags to there production methods. The future

of RFID tags looks bright and many more technological uses for them are sure to be

developed as technology improves.
                                                                                RFID 18


Broersma, M. (2003). Defense department adopts rfid policy. Retrieved Nov. 09, 2005,
from website:

http://www.epepic questions to rfid industry. (2004). Retrieved Nov.
10, 2005, from Web site:

McGinty, M. (January 2004). “RFID: Is this game of tag fair?” Communications of the
ACM. ACM: New York.

Ramasastry, A. (2005). Why the 'real id' act is a
mess. Retrieved Nov. 14, 2005, from Web site:

Rfid. (2005). Retrieved Nov. 10, 2005, from Web site:

RFID. A Brief Technology Analysis. (2004). Retrieved Nov. 15,2005, from
ctonet.rorg web site:

RFID Gazette: Security. (2004). Retrieved Nov. 15,2005, from website:

Shutzberg, L. (October 2004). “Radio Frequency Identification (RFID) in the consumer
goods supply chain”. Industry White Paper. Rock-Tenn Company.

Tech Web News. (January 2005). “Sales of RFID tags forecast to rise quickly”.
Information Week.

"TI-RFid™ and your EPC Supply Chain." Technology For Innovators. 2005.
Texas Instruments. 10 Nov. 2005

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