RFID 1 RFID,Inc. 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 report. 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 business. 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). Criteria: 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 Sincerely, 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. Sincerely, 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.” I. PRELIMINARY PROVISIONS (1) Effective Date: This team operating agreement of Boundless Enterprise (BE), st 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 cycle. 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. II. MEMBERSHIP PROVISIONS (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: st 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- team) st November 21 , 2005-Formal report along with team evaluations due th 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. III. MEMBERSHIP CONTRIBUTIONS (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 member. RFID 7 IV. MEMBERSHIP WITHDRAWAL (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. V. DISSOLUTION PROVISIONS (1) Events That Trigger Dissolution of the Team: The following event shall trigger dissolution of the team: the end of the class VI. GENERAL PROVISIONS (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 faculty. (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. VII. SIGNATURES OF MEMBERS (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 inventory. 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 Bibliography Broersma, M. (2003). Defense department adopts rfid policy. Retrieved Nov. 09, 2005, from News.com website: http://news.com/2100-1008-5097050.html. http://www.epepic questions to rfid industry. (2004). Retrieved Nov. 10, 2005, from Epic.org Web site: http://www.epic.org/privacy/rfid/survey.html#wm. 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 Cnn.com Web site: http://www.cnn.com/2005/LAW/08/12/ramasastry.ids/index.html. Rfid. (2005). Retrieved Nov. 10, 2005, from Wikipedia.org Web site: http://en.wikipedia.org/wiki/RFID. RFID. A Brief Technology Analysis. (2004). Retrieved Nov. 15,2005, from ctonet.rorg web site: http://ctonet.org/documents/RFID_analysis.pdf RFID Gazette: Security. (2004). Retrieved Nov. 15,2005, from rfidgazette.org website: http://www.rfidgazette.org/security. 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 <http://www.ti.com/rfid/default.htm?DCMP=TIHomeTracking&HQS=Other+OT+ho me_tirfid>.