IEN: What are the major concerns facing RFID, and how can they be addressed?
Allen: Confusing and exaggerated claims about RFID and its capabilities and the slow pace at which the industry has adopted standards are two major concerns that may be affecting the rate of RFID adoption and implementation. One misconception is that one type of RFID technology will work for all applications. Even with standards-based tags and readers, there is no one-size-fits-all approach. Those looking to implement RFID should seek educational opportunities to learn about the advantages of RFID, laws of physics in this area, as well as the physical requirements of an application, including factors such as read range and any potential environmental interference issues.
On the technology side, some environmental conditions do pose challenges for LF, HF, and UHF RFID technology, such as metallic or liquid environments; however, these challenges are not insurmountable. We''ve already encountered these issues with the earlier iterations of the technology (LF and HF), and have very savvy engineers who have found ways to overcome these challenges. Such is the case with any technology solution -- you must test it, try it again and again, and then prove its viability in the field.
IEN: What innovations are in store in the next 12 months in tags, antennae, applicators/printers, readers, and software?
Allen: The RFID landscape is evolving at an extremely rapid pace -- from new standards and technology advancements to an increasing number of pilots and high profile, end-user applications. The industry is moving away from point solutions using proprietary technology to integrated solutions based on open standards. Software and hardware providers as well as systems integrators are beginning to work more closely together to implement enterprise-level solutions. Other trends include innovations in manufacturing that are producing new products and driving prices down. All of this is good news as RFID gains a stronger foothold in new supply chain, asset management, and point-of-sale applications. Industry analyst firms are predicting that RFID will be a $3 billion market globally by 2008.
IEN: How close to implementation are global standards?
Allen: Due to the demand created by high-volume customers such as Wal-Mart, Target, and the Dept of Defense, the RFID community is working to fast-track the development and adoption of EPC standards. According to a timeline published by EPCglobal, the organization expects to ratify the EPC standard by Q3 2004. However, many companies are currently investigating RFID technology for its advantages and already have pilots underway in 2004. Many industries, from consumer packaged goods to industrial laundry and beyond, are finding that RFID is a powerful tool for supply chain management, helping to improve efficiency and increase visibility of goods as they are moved throughout the system. We''re seeing companies taking a phased approach, initially implementing RFID solutions on a case and pallet level, then 3-5 years down the road, expanding rollouts to goods at the item level.
IEN: How can sensitive data be protected in light of privacy and security issues?
Allen: Even prior to the announcements made by Wal-Mart and the DoD, TI has been involved in educating its partners and customers about what RFID technology can and cannot do. Many of the concerns that have been raised thus far have not accurately represented the technology''s capabilities. TI is strongly committed to addressing these concerns through our involvement with the Association for Automatic Identification and Mobility (AIM). AIM''s privacy committee recently distributed an RFID primer on privacy and is working to make sure companies and consumers have a realistic understanding about the technology and its benefits. We are also discussing some of the technology-related solutions that may help to ease consumer concerns, such as implementing a disabling command, which would make the tags unreadable once the items have been purchased.
Consumers do have concerns about the privacy and use of their personal information. They may not, however, be aware that there are federal guidelines already in place that address many of these concerns. For example, all U.S. federal agencies must follow the Federal Code of Fair Information Practices, a set of five principles guiding the use and dissemination of private information. Additional federal legislation in this area includes the Privacy Act (1974), the Electronic Communications Privacy Act (1986), the Telecommunications Act (1996), Health Insurance Portability and Accountability Act (1996), and the Financial Modernization Act (Gramm-Leach-Bliley Act -- 2000), among others.
We''re seeing much of these concerns raised for applications in the retail sector. It is important to note that retailers are already restricted in the sale or distribution of consumer information, and that secure computer systems and data encryption schemes are already in place for the electronic transfer of private data. Perhaps most importantly, retailers will not use technologies that their customers find offensive or invasive. Through a dialogue between the legislative community, privacy groups, retailers, and RFID manufacturers, boundaries for the use of data captured using RFID will be established.