Gerhard Schedler President & CEO IDENTEC SOLUTIONS Crossing the Chasm Crossing the Chasm: Exploring the adoption of (active) RFID in different industries

2 AIDC Strategic RFID Workshop 2009 / © IDENTEC SOLUTIONS AG Crossing the Chasm The Chasm Crisis. Chasm Crisis (Moore, 1999) Organized by Visibility Delivered.

3 AIDC Strategic RFID Workshop 2009 / © IDENTEC SOLUTIONS AG Crossing the Chasm The Problem. Visibility Delivered. “The chasm is crossed when a technology becomes “mainstream.” A technology is “mainstream” when it is “everywhere”.

4 AIDC Strategic RFID Workshop 2009 / © IDENTEC SOLUTIONS AG SOFTWARE READER TRANSPONDER Typical OFFERING You can only manage, what you can measure. Crossing the Chasm RFID - The bottom line. RFID Systems deliver reliable, real time data that enable successful planning and control in many industries. RFID Visibility Delivered.

5 AIDC Strategic RFID Workshop 2009 / © IDENTEC SOLUTIONS AG Crossing the Chasm The Bowling Alley. Visibility Delivered.

AIDC Strategic RFID Workshop 2009 / © IDENTEC SOLUTIONS AG 6 GOVERNMENT Toll Collection Systems Toll Collection Systems Initial Situation  RFID-based tag and reader systems provide reliable and accurate wireless automatic vehicle identification Implementation  more than 10 Mio. RFID tags  more than readers operate on toll roads across the world  in use since around 20 years Customer BENEFITS  Increases customer convenience and safety with nonstop payment  Improves traffic flow  Reduces customer commute time  Reduces traffic congestion  Reduces need for new roads  Provides proven reliability and unparalleled accuracy Visibility Delivered.

AIDC Strategic RFID Workshop 2009 / © IDENTEC SOLUTIONS AG 7 GOVERNMENT DOD In Transit Visibility Network Tracking and identification of supplier parts Initial Situation  need for system that provides actionable information to commanders and logisticians across the armed forces  need of integration into DOD supply chain Implementation  more than 6 Mio. active tags  more than read/write sites across the world  in use since 1991 Customer BENEFITS  Find the last location of a specific asset  Track movement of unit’s equipment  Verify arrival of what was sent to the destination  Forecast workloads based on inbound shipments  Monitor container and air pallet shipments  Determine shipment contents Visibility Delivered.

8 AIDC Strategic RFID Workshop 2009 / © IDENTEC SOLUTIONS AG Tracking Cars during Production and Finishing Process Initial Situation  Cars get “lost” in the process  Cars are not delivered on time Implementation  Cars are temporarily equipped with tags  1000’s of readers at the Production Lines, Finishing and Distribution Areas Customer BENEFITS  Online availability of the status of each car  Avoidance of bottlenecks in the process  Increased process throughput  Improved process quality  Elimination of late deliveries  Elimination of delivery errors AUTOMOTIVE Work in Progress Visibility Delivered.

9 AIDC Strategic RFID Workshop 2009 / © IDENTEC SOLUTIONS AG Initial Situation  Large area with several gates, scale and inspection areas  Labor intensive access control  Lengthy procedures during check-in Implementation  ’s of Tags mounted at trucks and containers  1.000’s of Readers at the entry gates of ports, production plants and industrial parks Customer BENEFITS  Automated Access Control and registration  Automated Routing in FC  Fast processing of Priority Orders  Reduction of delivery errors  Better and faster process visibility  Increased vehicle lead time, increased productivity Tracking and Tracing of Vehicles/Containers TRANSPORTATION Gate Access Solutions Visibility Delivered.

AIDC Strategic RFID Workshop 2009 / © IDENTEC SOLUTIONS AG 10 Crossing the Chasm. Main (active) RFID Markets. Visibility Delivered. OIL, MININGCONSTRUCTION TRANSPORTATION MILITARY LOGISTICS VEHICLE TRACKINGAUTOMOTIVE SPORTS NEXT? COOL CHAINSEMICONDUCTOR HEALTHCARE PORTS

AIDC Strategic RFID Workshop 2009 / © IDENTEC SOLUTIONS AG 11 Visibility Delivered. Crossing the Chasm. RFID Adoption. RFID has already crossed the chasm in a lot of industries – but will never be “everywhere”, as everywhere “gets redefined” every day! “The chasm is crossed when a technology becomes mainstream.”  "RFID opportunities are broad in today's market. Virtually every economic sector and industry where data needs to be collected or objects need to be tracked holds the potential for RFID applications." (ABI Research, 2008) NEXT MARKET? A technology is “mainstream” when it is everywhere.  ABI Research show worldwide sales will reach $5.3 billion this year and that five high-profile segments of the industry - - item-level tagging, contactless payments, asset tracking, RTLS and cargo tracking - will experience growth of at least 25 percent through next year. (ABI Research, 2008 )

AIDC Strategic RFID Workshop 2009 / © IDENTEC SOLUTIONS AG 12 Thank you. Visit us at booth #: 1702! Gerhard Schedler President & CEO IDENTEC SOLUTIONS AG Millennium Park Lustenau / Austria