RFID Is Not What It Used To Be

For the past seven years, I've advised VARs and integrators to learn more about RFID and become certified to sell whatever RFID products best fit their businesses. I still encourage VARs to do that, but the RFID industry and its opportunities are constantly evolving. Today you need to understand much more than the basics such as the differences between tag frequencies or how to design a slap-and-ship application. You need to think about enterprise-wide RFID deployments and additional business operations savings. You need to use data analytics to discern additional value from the gobs of information churned out by an RFID system. (Are there departments beyond the warehouse that would find that data helpful?) You should understand how to integrate an RFID system with wireless networks, real-time location services, and sensors for video surveillance, access control, and motion detection. Remember, it's not just about mandates and supply chain applications anymore; you need to be creative with RFID to earn the big bucks. For instance, in this supplement, Supply Chain/POS (point of sale) Editor Mike Monocello writes about Rush Tracking Systems, an integrator that has designed and installed at least 30 RFID systems for clients in industries ranging from consumer goods to transportation/logistics. In 2006 Rush Tracking Systems achieved 250% revenue growth by implementing RFID solutions that went beyond slap-and-ship applications.

The shift in demand for more complicated and integrated RFID systems means you may need to reconsider the products and — more importantly — the services you offer. According to the 2006 RFID Business Planning Service research report from Venture Development Corp. (VDC), end users want a single solution provider for their RFID hardware, software, and service. And don't expect those customers to be uneducated on the technology. On the contrary, VDC reports that most end users already understand the more-complicated RFID system components such as middleware. Thus, if you don't have the expertise for a total solution, consider partnering with an ISV (independent software vendor) or another VAR or integrator. That's what American Barcode and RFID Inc. did recently (see article in March 2007 Business Solutions). The VAR partnered with ISV epcSolutions, Inc. and four other software and hardware companies to develop the TetraGate solution. TetraGate is an access control-related application designed to prevent "tailgating," or when one person follows closely behind another at a door or access point. The second person is using the credential (i.e. access card) of the first person to gain access. TetraGate combines RFID badges and readers with facial recognition software to allow a person to pass through a door only if their badge matches their facial image on file. 

I predict creative, new RFID-related solutions like TetraGate will become more common in the next few years. End users in every industry will begin to view RFID as an affordable technology for improving some existing process or system. They will already know that RFID can solve a particular problem, even though they may not understand how it will do so. That part is up to you.