R.F.I.D.Radio Frequency Identification DeviceJune 22, 2005

Megan FalzoneHenry HagopianRina RubEric Schaeffer

Presentation Agenda

Definition and Technology Overview

Benefits to Implementation

Barriers to Adoption

RFID Applications

Current

Future

Overview

RFID – Radio Frequency Identification

Means of storing and retrieving data

What does it do? Sends information via an electromagnetic transmission to

an RF compatible circuit

Components Reader with an Antenna

RFID Tag

RFID Tags Tags

Active Tags

Passive Tags

Non-battery (Pure Passive)

Battery (Semi-Passive)

Memory Type Read / Write

Memory can be read, stored, and revised Higher cost

Read Only Programmed at factory Lower cost

History Scientific Community

1948 - RFID theory invented in a paper entitled “Communication by Means of Reflected Power” in 1948

Government Involvement 1975 - Los Alamos Scientific Laboratories (LASL)

Releases research to public Publishes “Short Range Radio-Telemetry for Electronic Identification Using

Modulated Backscatter”

Commercial Involvement 1991 - Texas Instruments subsidiary TIRIS develops and markets RFID

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2003 2004 2005 2006 2007 2008

$ in Billions

RFID Technology Spending on the Rise

Source: ABI Research

Technological Benefits

Advanced Monitoring

Data Advantages

Re-writeable Tags

Withstand Harsh Conditions

Direct Line-of-Sight Not Required

Flexible Read Range

Multiple Simultaneous Reads

RFID—Why Not?

Implementation: From Barcodes to RFID Cost Prohibitive and Labor Intensive

Incompatibility 11-digit barcode vs. 13-digit RFID tag

Requires Evaluation of IT Infrastructure Capacity to handle and store terabytes of data?

RFID—Why Not?

Privacy Concerns

Client Identification and Tracking

Other Nefarious Uses

RFDump

RFID—Why Not? Lack of Regulation and Standardization

Need for Standard Frequency Defines tag and reader relationship Impacts transmission range and speed

Multiple Global Groups = Multiple Conflicting

Standards

GM Case

EPCGlobal

Gen2 EPCGlobal: Mission: Set Global

Standard for Electronic Product Codes/RFID

Standard for Passive Tag Recently Sent to ISO for Review

Consumer Privacy Guidelines

RFID in Action Today Contactless Payment Systems

ExxonMobil Speedpass First introduced by Mobil in 1997

(and Exxon-branded service stations in 2001) Speedpass uses RFID reader located in the pump to talk to a

small transponder device. Example of a passive tag - programmed with a unique code Simple and convenient for the customer

Point device at the reader and credit card is automatically charged.

More than 6 million active Speedpass devices in the US

RFID in Action TodayElectronic Toll Collection

MTA Fast Lane (E-ZPass System) Auto Transponder -Example of an Active tag

Tag communicates vehicle identification and classification within milliseconds

266,000 drivers - almost half of the Turnpike's toll transactions - use FAST LANE each day.

More than 700,000 vehicles currently have FAST LANE transponders.

E-ZPass System on the Route 95 Corridor Maine to Maryland

Leading the RFID Charge with Suppliers

10,000 Suppliers

43,000 Suppliers

Leading the RFID Charge with Suppliers

June 2003 - Ultimatum to 100 largest suppliers

By April 2005 – 23,000 pallets tagged by suppliers

Currently using passive tags – need to be scanned

Six million reads in a month

Improving the retailer’s ability to track inventory

RFID currently installed in 104 stores and 36 Sam’s Club’s

Plans to have in 600 stores and 12 distribution centers by year-end.

Wal-Mart’s next 200 suppliers have to start tagging by 2006.

The Future of RFID

“For the life of me, I cannot understand why terrorists have not attacked our food supply, because it is so easy to do.”

Tommy Thompson, Former Health and Human Services Secretary December, 2004.

RFID and the Nation’s Food Supply Opportunities for Foul Play Exist in the Food Chain

Public Health Security and Bioterrorism Preparedness and Response Act of 2002 “Track and Trace”

4-8 hours to provide access to FDA if threat exists

“Track and Trace” rules are primary reason for implementing RFID

Information associated with RFID tags would be very beneficial in the product-recall process.

The recent Mad Cow scare is driving the cattle industry to adopt RFID

Calling Dr. RFID

Patient Identification Jacobi Medical Center (NY) and Saarbrucken Hospital (Germany) Outfitted over 1,200 patients with RFID wristband Allows Doctors instant access medical history with a wireless PDA

Prevention of Surgical Mix-ups Five to Eight wrong-site surgeries per month in the US New RFID technology approved by the FDA in Nov. 2004 Surgichip is a 2-by-1 inch RFID encoded tag Tags are read by OR staff to confirm patient procedure

Big Brother’s Passport to Pry

US State Dept. plan to have US Passport embedded with a passive RFID chip by the end of 2005

A target in your pocket? Early tests showed chip may be read from yards away May identify US citizens abroad Vulnerable to identity theft at home

Public Outcry - comment period ended in April 2005

Feds now “taking a very serious look” at a privacy solution

Conclusions Widespread RFID solutions are on the horizon

Well beyond inventory management

The most important technological development for retailers since the barcode

A $7 Billion global RFID market by 2008

Many challenges still exist

Privacy issues raised by consumer groups

Tags are still relatively expensive compared to barcodes

High up-front costs – software, hardware, data storage, security solutions, and technology implementation