RFID R adio F requency ID entification

1. RFIDRadio Frequency IDentification By Özcan Tunalılar 27th March 2008

2. What is RFID? • Latest phase of the miniaturization of computers (mini-processors) • Have two types of units: RFID transponders (tag) and RFID readers • Transponder does NOT need any additional battery • Limited amount of processing and storage capacity • Yet, can be effected by metal/water

3. Types of RFID (Battery-based) • Passive • Activated when reader is near (10cm-3m) • Latest (unveiled): 0.04mm-0.04mm • Semi-passive • more distance sensibility • better battery life • both act like active and passive • Active • has its own power supply • most distance sensibility (up to 500m)

4. What are the ABILITIES? • Tracking (Location) • Identification (Label) • Keep Track of Data (Information)

5. What can RFID be used for? • supply chain management • automated payment • physical access control • all kinds of personal and consumer goods • their pets and livestock

6. How does it work?

7. Cost Analysis (Pacific Cycle) • Initiation by Wal-Mart (supplier for Wal-Mart) • Logistics of supply-chain (bikes especially) • Ability to track where the product is and inventory condition • Many firms and outsourcing included (Like Zebra, Symbol, SAP and Peak Tech.) • Hardware (tags, readers) • Software (connected to database system)

8. Cost Analysis (Pacific Cycle) cont.d • Zebra Solutions (zebra.com) • needs: “Tags, printer/encoders, readers, middleware, and professional services” • additional needs: “investment in back-office, manufacturing, or WMS systems to use RFID data” • May take up to $9 million on RFID • “Depending on the size of the firm’s distribution network and volume.” • “Worth it” (Very optimistic view)

9. Views on Cost (R.O.I.) • Industryweek magazine“Experience proves that typical MHE (Material Handling Equipment) improvement projects show a positive ROI of between one and three years.” • Forbes magazine“Unfortunately for manufacturer and distributors selling to large retailers, RFID has a much lower return on investment for them than for their retail customers “

10. Views on Cost (R.O.I.) • AMR Research Group (Boston)“Use of such technology based on pallet and case tagging will not generate revenue to add appreciably to the bottom line. This means that with today's technology--and today's costs--RFID is not economically justified for retailers.“ • Sara Lee Corp. CIO George Chappelle (another Wal-Mart supplier)“Radio Frequency identification (RFID) supply chain technology isn't mature enough to deliver benefits to consumer product manufacturers.” • Cost issue • Training • Eventually tech. will make it available

11. Why Worries in Public? • Privacy • Security

12. Why Worries: Privacy • “a society in which an individual’s privacy is compromised at every turn by the remotely readable objects they carry” • Identity theft (in Legal documents like Driver’s License and IDs) • Legislation against RFID, not YET • Permanently disabling the tag • More security both on backoffice and readers • All these means COST for the developing industry

13. Why Worries: “Spychips” • Every object can be recorded, stored and reaccessed by “someone who has the ability to do so” • BIG BROTHER (1984 of George Orwell) • Not the companies but the state can watch over you • Ease of discrimination and force on district groups of people • Information about you: What you buy, where you buy and maybe, why you buy • FINAL STAGE: HUMAN CHIPPING • implantable RFID chip

14. Why Worries: Security • Undetectable • As a bearer, you would NOT know • Readers are getting cheaper • Anyone would be able to detect who is carrying what • The ease of hacking operations • Stealing information of tags • Changing information of tags*** • Tracking against will of the bearer • If government’s use this technology • ID and Passport theft will be a major issue

15. What to do? • Investment • On development (for businesses) • On security demand (for public) • Detailed and reasonable legislation

16. Thank You for Your Patience