Radio Frequency Identification Austin Rutkowski Naomi Shaw Jenelle Meeker Maggie Kwong

Agenda Introduction & Overview – Austin Introduction & Overview – Austin Supply Chain Management Uses – Jenelle Supply Chain Management Uses – Jenelle Other Current Uses – Maggie Other Current Uses – Maggie Future Uses, Issues & Conclusions – Naomi Future Uses, Issues & Conclusions – Naomi

RFID in Use—Hollywood Style Courtesy of Paramount Pictures

History of RFID IFF transponder invented by the British IFF transponder invented by the British Léon Theremin invented an espionage tool for the Soviet government Léon Theremin invented an espionage tool for the Soviet governmentLéon ThereminLéon Theremin Mario Cardullo holds the patent for the first RFID—a passive radio transponder with memory Mario Cardullo holds the patent for the first RFID—a passive radio transponder with memory

What Exactly is RFID? Radio Frequency Identification (RFID) is an automatic identification method Radio Frequency Identification (RFID) is an automatic identification method automatic identification automatic identification Relies on storing and remotely retrieving data using tags or transponders Relies on storing and remotely retrieving data using tags or transponderstransponders An RFID tag is a small object that can be attached to or incorporated into: An RFID tag is a small object that can be attached to or incorporated into: products products animals animals people people

Types of RFID Tags Passive RFID tags have no internal power supply Passive RFID tags have no internal power supply Semi-passive RFID tags have a small battery Semi-passive RFID tags have a small battery Active RFID tags have their own internal power source Active RFID tags have their own internal power source

Passive RFID Tags Response is more than an ID number / UPC Response is more than an ID number / UPC Can contain nonvolatile EEPROM for storing data Can contain nonvolatile EEPROM for storing dataEEPROM Lack of an onboard power supply means that the device can be quite small Lack of an onboard power supply means that the device can be quite small The minute electrical current induced in the antenna by the incoming radio frequency signal provides just enough power for the tag activate and transmit a response The minute electrical current induced in the antenna by the incoming radio frequency signal provides just enough power for the tag activate and transmit a response Least expensive RFID tag Least expensive RFID tag

Semi-Passive RFID Tags Faster because they do not waste time collecting power to transmit a response Faster because they do not waste time collecting power to transmit a response Batteries make it difficult to place permanently Batteries make it difficult to place permanently Much larger than passive tags Much larger than passive tags

Active RFID Tags Active tags typically much more reliable Active tags typically much more reliable More powerful and can function against the elements and interference such as radiation, water, electric shock, et cetera More powerful and can function against the elements and interference such as radiation, water, electric shock, et cetera Battery life lasts about years Battery life lasts about years About the size of a coin About the size of a coin

RFID and Supply Chain Management Two values for inventory systems: Provides visibility of inventory throughout supply chain Provides visibility of inventory throughout supply chain Simplifies the acquisition process and helps to prevent or reduce human errors Simplifies the acquisition process and helps to prevent or reduce human errors

Wal-Mart Top 100 suppliers required to apply RFID labels to all shipments Top 100 suppliers required to apply RFID labels to all shipments “Smart Shelves” and automatic, hands-free management “Smart Shelves” and automatic, hands-free management Benefit for retailers and suppliers Benefit for retailers and suppliers Obstacles in applying the technology Obstacles in applying the technology RFID!

Department of Defense Mandate for RFID tracking Mandate for RFID tracking Goals Goals Improve forecasting through better visibility Improve forecasting through better visibility Increase accuracy of data and shipments Increase accuracy of data and shipments 3G tag - Combining RFID with GPS and satellite communications 3G tag - Combining RFID with GPS and satellite communications

Effects on AIS / Accounting Shift in inventory costing method used Shift in inventory costing method used Auditing the effectiveness of RFID related controls Auditing the effectiveness of RFID related controls Influx of data produced in RFID system Influx of data produced in RFID system RFID in practice RFID in practice RFID in practice RFID in practiceAICPA:

Pet Identification How does it work? How does it work? Benefits Benefits Cost Cost Data update required Data update required Lack of RFID pet tag standards Lack of RFID pet tag standards

Livestock Livestock How does it work? How does it work? Uses Uses Feeding Feeding Disease control Disease control Breeding Breeding Endangered Species Endangered Species Uses Uses Prevention of poaching / exporting Prevention of poaching / exporting Tracking population level Tracking population level Animal Identification

Passport Identification U. S. – RFID passports will be issued in October 2006 U. S. – RFID passports will be issued in October 2006 Pros Pros Convenient Convenient Difficult to fabricate Difficult to fabricate Cons Cons Privacy issues Privacy issues Security concern Security concern Already in use in some countries Already in use in some countries

Automatic Payment Methods RFID-based automatic toll payment Contactless payment card – pass credit card with imbedded chip near terminal Cash free / Wireless payment – no card or signature required

Future & Innovative Uses Smartkey-style office “security” Smartkey-style office “security” Remote vehicle start Remote vehicle start Already in use by Toyota Prius Already in use by Toyota Prius Fully automated stores Fully automated stores Traffic control Traffic control Medical records Medical records Food expiry dates Food expiry dates Driver licenses Driver licenses Human implants Human implants RFID “toys” RFID “toys”

Emergent Business Models Manufacturing and provision Manufacturing and provision Manufacturing and provision Manufacturing and provision Supply chain management Supply chain management Recycling and reclamation Recycling and reclamation Recycling and reclamation Recycling and reclamation Data warehousing / management Data warehousing / management Litigation / regulation Litigation / regulation RFID Manufacturing Process (

Controversy & Issues Ethics Ethics Legality Legality Vulnerability Vulnerability Environmental health effects Environmental health effects Reliability Reliability A plot to track our every move??? A plot to track our every move??? A plot to track our every move??? A plot to track our every move???

Factors to Consider for Accounting and Business in General Controversy, arguments against use Controversy, arguments against use Technical / architectural challenges Technical / architectural challenges Trend in specific industries for use of RFID Trend in specific industries for use of RFID Function and span of RFID Function and span of RFID

Resources Utilized Wikipedia: Wikipedia: Design of a RFID case-based resource management system for warehouse operations. By: Chow, Harry K.H.; Choy, King Lun; Lee, W.B.; Lau, K.C.. Expert Systems with Applications, May2006, Vol. 30 Issue 4, p , 16p. Design of a RFID case-based resource management system for warehouse operations. By: Chow, Harry K.H.; Choy, King Lun; Lee, W.B.; Lau, K.C.. Expert Systems with Applications, May2006, Vol. 30 Issue 4, p , 16p. Design of a RFID case-based resource management system for warehouse operations. Design of a RFID case-based resource management system for warehouse operations. Explosive RFID-tag growth projected in next 5 years. Control Engineering, Apr2006, Vol. 53 Issue 4, p28-28, 1/3p. Explosive RFID-tag growth projected in next 5 years. Control Engineering, Apr2006, Vol. 53 Issue 4, p28-28, 1/3p. Explosive RFID-tag growth projected in next 5 years. Explosive RFID-tag growth projected in next 5 years. Graafstra, Amel. (2006) How to Create RFID Access for Your Front Door; Extreme Tech: Build it, Tweak it, Know it; Available: Graafstra, Amel. (2006) How to Create RFID Access for Your Front Door; Extreme Tech: Build it, Tweak it, Know it; Available: Kirk, Jeremy. (2006) RFID tags vulnerable to viruses, study says; Computer World; Available: Kirk, Jeremy. (2006) RFID tags vulnerable to viruses, study says; Computer World; Available: Newitz, Annalee. (2006)The RFID Hacking Underground; Wired; Available: Newitz, Annalee. (2006)The RFID Hacking Underground; Wired; Available: RFID. (2006) Definition of RFID Wikipedia, the Free Encyclopedia; Available: RFID. (2006) Definition of RFID Wikipedia, the Free Encyclopedia; Available: RFID Privacy Issues and News. (2006) RFID 1984; Available: RFID Privacy Issues and News. (2006) RFID 1984; Available: ID renders bar codes obsolete. By: Honaman, J. Craig. H&HN: Hospitals & Health Networks, Apr2006, Vol. 80 Issue 4, p14-14, 1/5p. ID renders bar codes obsolete. By: Honaman, J. Craig. H&HN: Hospitals & Health Networks, Apr2006, Vol. 80 Issue 4, p14-14, 1/5p. ID renders bar codes obsolete. ID renders bar codes obsolete. RFID Security Worries Need a Reality Check. Computerworld, 5/1/2006, Vol. 40 Issue 18, p34- 34, 3/4p. RFID Security Worries Need a Reality Check. Computerworld, 5/1/2006, Vol. 40 Issue 18, p34- 34, 3/4p. RFID Security Worries Need a Reality Check. RFID Security Worries Need a Reality Check. Risks of RFID. Communications of the ACM, May2006, Vol. 49 Issue 5, p , 1p. Risks of RFID. Communications of the ACM, May2006, Vol. 49 Issue 5, p , 1p. Risks of RFID. Risks of RFID. Tuning in to RFID. By: Borck, James R.. InfoWorld, 4/17/2006, Vol. 28 Issue 16, p31-36, 5p. Tuning in to RFID. By: Borck, James R.. InfoWorld, 4/17/2006, Vol. 28 Issue 16, p31-36, 5p. Tuning in to RFID. Tuning in to RFID. World’s First Mobile RFID Tag Encoder. (2006) ADASA RFID Innovation; Available: World’s First Mobile RFID Tag Encoder. (2006) ADASA RFID Innovation; Available:

Thank you! We now welcome questions from the audience.