RFIDRFIDRRadio adio FFrequency requency

IDIDentificationentification

By Özcan TunalılarBy Özcan Tunalılar

2727thth March 2008 March 2008

What is RFID?What is RFID?

►Latest phase of the miniaturization of Latest phase of the miniaturization of computers (mini-processors)computers (mini-processors)

►Have two types of units: RFID Have two types of units: RFID transponders (tag) and RFID readerstransponders (tag) and RFID readers

►Transponder does NOT need any Transponder does NOT need any additional batteryadditional battery

►Limited amount of processing and Limited amount of processing and storage capacitystorage capacity

►Yet, can be effected by metal/waterYet, can be effected by metal/water

Types of RFID (Battery-Types of RFID (Battery-based)based)

► PassivePassive Activated when reader is Activated when reader is

near (10cm-3m)near (10cm-3m) Latest (unveiled): Latest (unveiled):

0.04mm-0.04mm0.04mm-0.04mm► Semi-passiveSemi-passive

more distance sensibilitymore distance sensibility better battery lifebetter battery life both act like active and both act like active and

passivepassive► ActiveActive

has its own power supplyhas its own power supply most distance sensibility most distance sensibility

(up to 500m)(up to 500m)

What are the ABILITIES?What are the ABILITIES?

►Tracking (Location)Tracking (Location)► Identification (Label)Identification (Label)►Keep Track of Data (Information)Keep Track of Data (Information)

What can RFID be used for?What can RFID be used for?

►supply chain managementsupply chain management►automated paymentautomated payment►physical access controlphysical access control►all kinds of personal and consumer all kinds of personal and consumer

goodsgoods►their pets and livestocktheir pets and livestock

How does it work?How does it work?

Cost Analysis (Pacific Cycle)Cost Analysis (Pacific Cycle)

► Initiation by Wal-Mart (supplier for Wal-Initiation by Wal-Mart (supplier for Wal-Mart)Mart)

►Logistics of supply-chain (bikes especially)Logistics of supply-chain (bikes especially)►Ability to track where the product is and Ability to track where the product is and

inventory conditioninventory condition►Many firms and outsourcing included (Like Many firms and outsourcing included (Like

Zebra, Symbol, SAP and Peak Tech.)Zebra, Symbol, SAP and Peak Tech.) Hardware (tags, readers)Hardware (tags, readers) Software (connected to database system)Software (connected to database system)

Cost Analysis (Pacific Cycle) Cost Analysis (Pacific Cycle) cont.dcont.d

► Zebra Solutions (zebra.com)Zebra Solutions (zebra.com) needs: “Tags, printer/encoders, readers, needs: “Tags, printer/encoders, readers,

middleware, and professional services”middleware, and professional services” additional needs: “investment in back-office, additional needs: “investment in back-office,

manufacturing, or WMS systems to use RFID data”manufacturing, or WMS systems to use RFID data”

► May take up to May take up to $9 million$9 million on RFID on RFID ““Depending on the size of the firm’s Depending on the size of the firm’s distribution distribution

networknetwork and and volumevolume.”.”

►““Worth it” (Very optimistic Worth it” (Very optimistic view)view)

Views on Cost (R.O.I.)Views on Cost (R.O.I.)

► Industryweek magazineIndustryweek magazine“Experience proves that typical MHE “Experience proves that typical MHE (Material Handling Equipment) improvement (Material Handling Equipment) improvement projects show a positive ROI of between one projects show a positive ROI of between one and three years.”and three years.”

► Forbes magazineForbes magazine“Unfortunately for manufacturer and “Unfortunately for manufacturer and distributors selling to large retailers, RFID distributors selling to large retailers, RFID has has a much lower return on investmenta much lower return on investment for for them than for their retail customers “them than for their retail customers “

Views on Cost (R.O.I.)Views on Cost (R.O.I.)

► AMR Research Group (Boston)AMR Research Group (Boston)“Use of such technology “Use of such technology based on pallet and case based on pallet and case taggingtagging will not generate revenue to add appreciably will not generate revenue to add appreciably to the bottom line. This means that with today's to the bottom line. This means that with today's technology--and today's costs--technology--and today's costs--RFID is not RFID is not economically justified for retailerseconomically justified for retailers.“.“

► Sara Lee Corp. CIO George Chappelle (another Wal-Sara Lee Corp. CIO George Chappelle (another Wal-Mart supplier)Mart supplier)“Radio Frequency identification (RFID) supply chain “Radio Frequency identification (RFID) supply chain technology isn't mature enough to deliver benefits to technology isn't mature enough to deliver benefits to consumer product manufacturers.”consumer product manufacturers.” Cost issueCost issue TrainingTraining Eventually tech. will make it availableEventually tech. will make it available

Why Worries in Public?Why Worries in Public?

►PrivacyPrivacy►SecuritySecurity

Why Worries: PrivacyWhy Worries: Privacy

► ““a society in which an individual’s privacy is a society in which an individual’s privacy is compromised at every turn by the remotely compromised at every turn by the remotely readable objects they carry”readable objects they carry”

► Identity theft (in Legal documents like Identity theft (in Legal documents like Driver’s License and IDs)Driver’s License and IDs)

► Legislation against RFID, Legislation against RFID, not YETnot YET Permanently disabling the tagPermanently disabling the tag More security both on backoffice and readersMore security both on backoffice and readers

► All these means COST for the developing All these means COST for the developing industryindustry

Why Worries: “Spychips”Why Worries: “Spychips”

► Every object can be recorded, stored and Every object can be recorded, stored and reaccessed by “reaccessed by “someone who has the ability someone who has the ability to do soto do so””

► BIG BROTHER (1984 of George Orwell)BIG BROTHER (1984 of George Orwell) Not the companies but the state can watch over Not the companies but the state can watch over

youyou Ease of discrimination and force on district Ease of discrimination and force on district

groups of peoplegroups of people► Information about you: What you buy, where Information about you: What you buy, where

you buy and maybe, why you buyyou buy and maybe, why you buy► FINAL STAGE: HUMAN CHIPPINGFINAL STAGE: HUMAN CHIPPING

implantable RFID chipimplantable RFID chip

Why Worries: SecurityWhy Worries: Security

► UndetectableUndetectable As a bearer, you would NOT knowAs a bearer, you would NOT know

► Readers are getting cheaperReaders are getting cheaper Anyone would be able to detect who is carrying Anyone would be able to detect who is carrying

whatwhat► The ease of hacking operationsThe ease of hacking operations

Stealing information of tagsStealing information of tags Changing information of tags***Changing information of tags*** Tracking against will of the bearerTracking against will of the bearer

► If government’s use this technologyIf government’s use this technology ID and Passport theft will be a major issueID and Passport theft will be a major issue

What to do?What to do?

► InvestmentInvestment On development (for businesses)On development (for businesses) On security demand (for public)On security demand (for public)

►Detailed and reasonable legislationDetailed and reasonable legislation

Thank You for Your Thank You for Your PatiencePatience