rfid_09 stefan_therond_accenture.ppt
TRANSCRIPT
1 RFID and Telecommunication Services
25th May 2004DATA BASE forum
© Accenture 2004. All Rights Reserved.
SESSION 1State of the art and Market Trends
Stefan Therond
Accenture Technology Labs
Silent Commerce Lab Director
2 RFID and Telecommunication Services
25th May 2004DATA BASE forum
© Accenture 2004. All Rights Reserved.
Popular misconceptions about RFID…
RFID has been around for many years and is widely used in specialised/close loops applications.
RFID is not to be confused with RF (i.e. Wireless LANs) already used the Retail supply chain.
RFID is not a plug & play technology.
“One frequency fits all” is a myth.
Technology is evolving but physics has limitations.
RFID is tested now for open supply chain applications and deployments will be going on for multiple years.
Supermarket self-checkout is probably 10-20 years away from us, if it ever happens.
RFID does not solve data inconsistency within and across enterprises. The key is to identify which data are important for which application.
Management of this new physical infrastructure has been underestimated.
And remember: it is all about people
3 RFID and Telecommunication Services
25th May 2004DATA BASE forum
© Accenture 2004. All Rights Reserved.
It is not only about the tags…
Tags
Read Points
Installation & Tuning
Middleware
Software Integration
Change Management
Product & Process Changes
…even at 5 cents each…
4 RFID and Telecommunication Services
25th May 2004DATA BASE forum
© Accenture 2004. All Rights Reserved.
RFIDconcerns
Practical implications of RFID
Many clients are still in a “wait and see” mode
Concern about ROI (‘just another technology wave’)
IT budget restrictions & high infrastructure/solution costs
Not always a clear business case within the enterprise
Uncertainty around standards
Difficult to achieve competitive advantage through technology alone
What do I need to do to comply? What are the mandate requirements? What will this cost me? How much can I charge to the organization driving the mandate?
What do I do first? Second? And how can I take a phased approach?
What needs to change in my existing systems and business processes to integrate RFID?
How long will it take to make that happen? Will I be ready in time?
What else will be required in the future? What other retailers will soon require RFID?
And most importantly, how can I leverage the technology for my own benefit? What is the business case?
Concerns about the practical implications of this new technology have left many companies wondering what to do next
5 RFID and Telecommunication Services
25th May 2004DATA BASE forum
© Accenture 2004. All Rights Reserved.
RFID can be used at various tagging levels
NonResaleable
Management
Consumer
SupplyChain
Management
Level of Tagging / Time
Cu
mu
lati
ve V
alu
e
Customer insight Shelf availability Self checkout Innovative payment mechanism Return management Maintenance
Track & Trace Inventory management Asset management
Quality Control Distribution Productivity Track & Trace Inventory management Asset management Shelf maintenance High value goods management
Truck/Asset Tote/PackagePallet/Case
6 RFID and Telecommunication Services
25th May 2004DATA BASE forum
© Accenture 2004. All Rights Reserved.
Look for Burning Platforms…
ShrinkEnhanced check of products at receiving and exit bays
CounterfeitingFull tracking of goods from plant to client. Also applies to grey market
Regulatory RequirementsFull tracking of goods from raw materials to shipment. Genealogy.
QualityBatch tracking in manufacturing, inventory & fulfilment operations tracking
Stock-Outs
Excess Inventory
Enhanced inventory visibility, due to improved entry / exit checks, and “permanent” physical counting
Today’s most Common drivers of value are…
7 RFID and Telecommunication Services
25th May 2004DATA BASE forum
© Accenture 2004. All Rights Reserved.
A roadmap for suppliers
Understand the Opportunity
What are the benefits of this new technology?
What is the opportunity for supply chain improvement?
What is the retailer’s contribution to revenue and profitability?
Can this be a competitive advantage?
What is the typical investment required?
What are the time constraints?
What are the budget constraints?
How does this fit in with other business and IT change initiatives?
Does this constitute a “burning platform?”
Is there consensus throughout the organization?
What technology components will be utilized?
What vendors will be utilized? Where will the pilot be
executed? How will the technology be
implemented?
What business capabilities offer the most value?
What business capabilities will be pursued?
What parts of the business will be affected?
In what sequence will the business capabilities be pursued
What is the business case for building the new capabilities?
How will the benefits be measured?
Create an Agenda Begin building Capabilities
Formulate a Strategy
A successful RFID program begins with a clear understanding of how to proceed…
8 RFID and Telecommunication Services
25th May 2004DATA BASE forum
© Accenture 2004. All Rights Reserved.
Enhanced ROI using groundbreaking RFID industry solutions
EPC Pharma Jumpstart
EPC Electronics Jumpstart
• A consortium of manufacturers, distributors and retailers across the pharmaceutical industry
• Working together to prove the business value of Electronic Product Code (EPC) and radio frequency identification (RFID) within the supply chain
• Focus on the following areas:– Safe and secure supply chain– Returns management– Operational efficiencies– Establish standard industry operating models for
each of these areas and encourage EPC usage throughout the pharmaceutical industry
• Abbott Laboratories• Procter & Gamble• Johnson & Johnson• Cardinal Health• McKesson• Rite Aid• CVS Pharmacy
• Abbott Laboratories• Procter & Gamble• Johnson & Johnson• Cardinal Health• McKesson• Rite Aid• CVS Pharmacy
• Leverage approach successfully used in Pharmaceutical
• Prove out RFID business value in an end-to-end supply chain context
• Jumpstart RFID uptake and help establish the industry operating model
• Accelerate the technology learning curve for all participants
• Harness the momentum currently developing individually at companies
• Dell• Sony• HP• Flextronics• Haier• Best Buy• Circuit City• Wal-Mart• UPS• Nokia
• Dell• Sony• HP• Flextronics• Haier• Best Buy• Circuit City• Wal-Mart• UPS• Nokia
Participants
Potential Participants
9 RFID and Telecommunication Services
25th May 2004DATA BASE forum
© Accenture 2004. All Rights Reserved.
Is RFID mature to fit the retailers mandate?
Standards Partial worldwide data standards Country-specific frequencies
allocation
Market HW & SW Vendor market is
fragmented Value chain collaboration
Technology Performance & robustness HW & SW costs Data synchronisation &
integration
People Afraid to change work habits and
re-focusing on mainstream tasks Privacy and Trust
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RFID and Telecommunication Services25th May 2004
DATA BASE forum
© Accenture 2004. All Rights Reserved.
Putting it all together requires a wide range of expertise…
Solution Delivery Accelerator
Speeds up the delivery of RFID solutions
S&BC
Build
Test& Refine
Execute
Pilot
Scale and
Realize
BenefitsS&BC
Build
Test& Refine
Execute Pilot
Scale andRealizeBenefitsMethodology
Vendor Alliances Accenture
Technology Labs
Technology and Vendor Selection
Tool
Reference Architecture
Enterpriseintegration
Accelerator
Cost/Benefit Estimator
AssetsTools
Methods
Procurement Service
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RFID and Telecommunication Services25th May 2004
DATA BASE forum
© Accenture 2004. All Rights Reserved.
…bringing a phased approach throughout the implementation cycle
RFID Strategy & Business Case
Build Pilot
Test &Refine Model
ExecutePilot
Scale andRealizeBenefits
Business Case & Value Management
Program & Change Management
RFID Strategy & Business Case
Build Pilot
Test &Refine Model
ExecutePilot
Build Pilot
Test &Refine Model
ExecutePilot
Scale andRealizeBenefits
Business Case & Value Management
Program & Change Management
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RFID and Telecommunication Services25th May 2004
DATA BASE forum
© Accenture 2004. All Rights Reserved.
The Wal-Mart Mandate - A Retailer Plan for Action
Jan 2005 – All cases/pallets shipped to 3 DC (Texas) and the 150 associated Stores
Scanning at 5 Places… DC: receiving & shipping dock Store: receiving dock, backroom to store and trash compactor
# 1 Goal is store backroom inventory visibility Inventory Management Visibility to Suppliers Inventory shrink Asset tracking
The pace of domestic expansion dependent on progress and technology evolution and is expected to be announced in the summer.
Tagging individual items 10 to 15 years away.
This is only the beginning of the journey…
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RFID and Telecommunication Services25th May 2004
DATA BASE forum
© Accenture 2004. All Rights Reserved.
Accenture provides a “One-stop shop” solution
Accenture
Third-Party
Consulting
IT
Software
Hardware
Infrastructure RFID
Middleware RFID
Selection
Installation & Adaptation
Installation
Deployment
Execute
Strategy, Processes, Organization, IT
Architecture Selection
DeploymentAdaptation & Integration
PMO
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RFID and Telecommunication Services25th May 2004
DATA BASE forum
© Accenture 2004. All Rights Reserved.
Some take away
It works There is no simple recipe book. But it is not “black art” either.
Understand business benefits
Gain top management support
Manage expectations Technology is evolving / physics has limitations ‘Hype curve’ position is extremely high
Start now and use a phased approach
Focus on 4 KEY components Data collection / physics Data management / architecture Business process ROI capture
And remember: it is all about people
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RFID and Telecommunication Services25th May 2004
DATA BASE forum
© Accenture 2004. All Rights Reserved.
Conclusion
Visit our web site at…
… http://www.accenture.com/SilentCommerce