November 23, 2006

Does Wal-Mart Have Scale Advantages For RFID?

Imagine you are in a group of tired, chained beasts pulling a wagon and being whipped if you stop. That's what I imagine some suppliers to Wal-Mart, the US DoD (Dept of Defense), and other influential organizations may feel regarding RFID mandates. The latter organizations are seeing (or claiming) a high ROI (return on investment) on RFID implementation, the suppliers they have mandated to join the RFID club have not seen similar returns.

It's easy to say suppliers see no incentive for implementing the technology, but no doubt some of them feel that they might as well go out of business if they don't accomodate retail giants such as Wal-Mart. Wal-Mart has also indicated that, aside from helping prepare their suppliers to be compliant, companies have to find their own ROI in RFID. Which I think might be part of the problem of adoption.

As I haven't seen the balance sheets for any of these companies, I'm hypothesizing. Wal-Mart may have an "economies of scale" advantage over their suppliers in terms of cost of radio frequency technology. Though I'll admit I'm not sure whether Wal-Mart sources RFID technology for their suppliers, but I doubt it. That would mean, then, that suppliers pay higher prices for the same technology and likely cannot have the same type of ROI.

Even if Wal-Mart had a "Sam's Club" for RF tech for their suppliers, the latter are still at a disadvantage because implementing radio frequency technology cuts into heavily into the bottom line of smallest suppliers, who are already supply on slim margins for the bargain atmosphere of Wal-Mart. Where's the ROI in this scenario? Such a cost means bottlenecks in implementation.

November 05, 2006

RFID Roundup - Sun Nov 5/06

RFID In Europe: Mood For EPC + Gen2 UHF Tech Improving
New UHF readers that work with new ETSI radio frequency regulations means that European companies are now more interested in EPCglobal's EPC (Electronic Product Code) RFID standard. Since the Gen 2 UHF protocol was introduced, ETSI has relaxed their regulations a bit to provide a wider frequency spectrum, amongst other things. And as a few companies rollout projects, those create interest in other companies. [via RFID Journal]

Another RFID Company Lays Off Staff
A Spychips article suggests that no one is "buying" Checkpoint Systems' plan to put RFID chips in clothing and shoes, and as a result of low systems sales, they are laying off people. They are still planning to sell their products including library inventory-management systems. Late last year, Checkpoint's BCS (Bar Code Systems) businesses were acquired by SATO.

Military + Aerospace RFID Use Growing
ABI Research has a new report on the military and aerospace use of RFID, a market that is expected to reach US$2B by 2011. Part of this market will be due to RF tech use in maintenance and repair applications. [ABI Research via EE Times]

November 02, 2006

RFID + Govt: Please Tell Us What We Want To Hear

Stop me if this sounds familiar. According to Wired, the US DHS (Dept of Homeland Security) requested a study on RFID privacy issues from an outside privacy and security committee. When the committee concluded that chips not be used in any documents that served as identification, especially if the chips could be read from a distance, the study got stuck in draft mode. It wasn't what the DHS and other government agencies wanted to hear, but they could at least pretend due diligence. (Though a DHS spokesman indicates that the draft report is on their website.)

And as you probably already know, e-Passports and other border-crossing documents and id cards that use radio frequency technology are already being issued. This is despite evidence from security experts from the USA and Europe showing that e-Passport data can be skimmed from a distance with unauthorized readers and potentially used for malicious purposes - sometimes after the data has been cloned onto another chip.

The US State Dept plans to issue ID cards for American citizens visiting Canada, Mexico, and Bermuda that can be read at 20 feet. That gives an area of Pi x 20 x 20 =~ 120 square feet within which an authorized reader can skim data.

All these sub-initiatives, such as PASS and WHTI, are all related to the REAL-ID act. If the government is going to press on with their initiatives, in the face of evidence of security flaws and privacy risks, then you should do what I've recommended before: invest in the appropriate RFID companies. Instead of complaining about it and then doing nothing, if you're concerned, go out and get voting shares of a few select companies. RF tech use is only going to increase, and that includes government use, good or bad.

October 24, 2006

Hot RFID Career Opportunities

With a predicted shortage in skilled workers for the RFID industry, the number of study programs in colleges and universities are growing. There are also companies like OTA Training, who offer both in-person workshops and classes, as well as e-learning programs. Then there's RFID Recruiters, a company that finds and places business and technical professionals with RFID knowledge/ skills.

They list some of the hot areas for career opportunties on their getting started page: supply chain project management, sales management, RFID tag product management/ marketing, tag design management, middleware business development, channel managers, pharmaceutical smart label sales, print-and-apply technicians. In their actual opportunities listings page, there are over 50 (at the time of writing) executive, sales and technical positions listed.

RFID Recruiters also suggests there will be a growing need for scientists and technicians, since there will be a need to design and test all the new RFID tags with sensor abilities - temperature, humidity, shock and vibration, light. And since the tags of the future will be "very small computers that happen to have a built-in wireless networking capability", there's a need for people with computer networking architecture and management skills. (A geeky aside: Star Trek-like "sensor" mesh networks might even be built in the future, with such RFID tags as the core component. And it'll take some incredible neural network programming skills to have them function correctly.)

Essentially, the whole RFID industry is waiting to boom. All it needs are more skilled workers. To those interested, RFID Recruiters suggests studying the Wal-Mart and DoD mandates, their suppliers, and the equipment/ middleware/ software providers to those suppliers - since Wal-Mart and DoD are driving some of the largest RFID projects.

October 22, 2006

RFID Roundup - Sunday Oct 22/06

Bell Canada Sponsors RFID Journal LIVE! Canada
Bell Canada has agreed to be the for the first annual RFID Journal LIVE! Canada conference and exhibition. The event takes place November 8-9, 2006, in Toronto, Canada. The event features a number of highly-placed executives from various large Canadian retailers and other businesses.

US Dept of Defense Sets The Tone For RFID
With the US DoD just completing their RFID network last month, it's expected that more supply chains will follow suit. New software and hardware products [Extreme RFID] are coming out in anticipation of the need. The US Military also has spent the most [Circuit Asssembly] on active RFID projects this year: US$425M. This includes a number of niches and related technologies including ZigBee, UWB, and RTLS.

GBP 800M For Tech For British Biometric ID Cards
It's expected that the technology for the British biometric national ID card will cost GBP 800Mln, with a total cost of the program around GBP $5.4 Bln. [via VNU Net]

October 04, 2006

DOD RFID Deployment: First Phase

ODIN Technologies is just completing the first of two phases of the RFID infrastructure for the DoD (Dept of Defense). This phase includes the deployment of 19 bases containing 69 facilities. ODIN Technologies was selected because of their 100% read rate for their RFID tags. DoD criteria indicate the ability to read either Gen 1 or Gen 2 tags. [via RFID Update] Earlier this year, ODIN Technologies was ranked as number two in the top ten RFID providers list, according to a survey conducted by RFID Update. Last year, they were granted an experimental license by the US FCC to test RFID devices using frequencies prohibited in North America but which are used in a number of European and Asian countries.

October 02, 2006

I Am Not A Number - Battery-Powered, RFID-Implanted Human?

In the Sep/Oct 2006 print issue of RFID Journal, Kevin Ashton, co-founder of the Auto-ID Center and author of an upcoming RFID book, has a fascinating "final word" article called The Fear Factor. It reveals some suprising information that I was unaware of, regarding the implanting of RFID chips into humans. For example, Scott McNealy, former CEO of the giant Sun Microsystems (probably best known for their computers and their Java programming language, which powers 3.5 billion devices worldwide), once apparently said something to the effect that after a baby is born, their bottom should be slapped and an RFID chip implanted in their neck/ shoulders, and that that was not Big Brother, just Dad.

Wow. I don't even know how to respond to this. Gloat? See, I told you so?  Satisfaction? Well, this is just proof that there are people who want to do this despicable act, using radio frequency technology in ways it wasn't intended. (Other than Scott Silverman, CEO of VeriChip Corp's parent company.)

Granted, there are already people who have been microchipped, most willingly or even voluntarily. But Ashton's article says that RFID embedded in flesh will have a short read range, and will not even providing the tracking ability that McNealy and others are talking about. Unless active RFID tags are used, but they would require battery changes every few years. Imagine that, he says, having to be cut open to have batteries replaced.

Now what kind of a cyborg would you be if that was the case? But seriously, as I'm sure I've said even 15+ years ago, when I only knew a very little about RFID, imbedding chips into our bodies is not going to stop kidnapping. Which is what Ashton says as well. But most interesting of all is his premise that maybe human beings have a primal fear of surveillance. If that's true, then it just may be why there is such resistance to VeriChip and similar "implant us all" ideas. Let's just hope that resistance is not futile.

September 29, 2006

Why Promote RFID?

No doubt the above question has been asked many times by many people: why promote a technology that we've done without for so long, and that seems to scare a lot of people? Do we really need it? Is there a political agenda? Something else? Mark Roberti, founder and editor of RFID Journal weighs on why he promotes RFID, and highlights some of the abuse he takes because of it, mostly by email.

His main statement that seems to get a lot of not so delightful email is his belief that consumer concerns of a future Big Brother-like society based on RFID is overblown. His other statement that gets negative response is in saying that some people - namely Katherine Albrecht, founder of CASPIAN - are hyping the concerns for their own agendas, some of which may be religious. On the other hand, there are respected doctors, like Dr. John Halamka, CIO of Harvard Medical School, who willingly allowed himself to be implanted with an RFID chip to prove a point as well as to get a perspective for standards and privacy.

Roberti points out that he has often brought up legitimate privacy and security issues related to RFID, at the RFID Journal website, and thus feels he has not downplayed the concerns. But he believes that the industry would suffer greatly were any company, particularly retailers, were found to be abusing privacy rights. His own business, the magazine, would suffer as well.

While that may be true - and note that this is the first time I am disagreeing with him - that stance in itself is hardly proof that RFID is not being abused or that will not be abused. VeriChip Corp. wants to implant RFID chips into people and has even recommended it for US soliders, the terminally ill, migrant/ visiting workers, etc. I've been writing about privacy and technologies like RFID and smartcards since 1991. Rational, professional, well-respected - and somewhat powerful - people in the know have indicated to me that there has been agenda to tag humans for at least 20 years, emanating from a group in - of all places - California - a state that recently has had a lot of discussions in state Senate about RFID, and have decided to encrypt RFID data on smart id cards.

I like to live by the principle of Occam's Razor. It's something I've learned to do over time. But both my logic and intuition tell me that there really are people who want to tag all of us, though not necessarily for control purposes, just commerce. My science background says that it's possible, and my imagination unfortunately agrees. (There's a saying someone taught me a long time ago: If something is possible, it's probably, given enough time. If something is probably, it's likely, given enough time.)

Think of the fortune you would make if you were one of a handful of companies who could concoct "legitimate" ways of persuading, forcing or even scaring people - all of humanity - into being tagged. And while these people may not want to control you per se, there are others without the means of implementation who might just want to use the technology that way. These two groups are not necessarily mutually exclusive, but probably are. And of course there's the rest, who break down to into several other groups, non of which have negative intentions for RFID.

I'm a middle grounder. I think that RF technology is brilliant, with loads of incredible applications that improve efficiency and potentially reduce operating costs for businesses. But I also think that we have a Pandora's box here, and not because of any religious affiliation. I do not want that box opened, but I also don't want radio frequency technology to go away. Thus, my own purpose for promoting the technology is to make people aware of the parameters, to point out that if there is a conspiracy, there is likely more than one, with different, maybe even cross purposes. But mostly, I'm writing to promote all the good, positive, useful applications of RFID. And there really are a lot of them.

September 27, 2006

Canada-US Border ID Decisions Delayed

American legislators are proposing that a deadline for Canadians and Americans to get e-passports to pass through the US border (from Canada) be delayed by a year and a half. The current deadline is January 2008. The proposed deadline is June 2009. Both countries are already suffering marked decreases in bordertowns all across the Canada-US border, supposedly due to the hassle of security checks. Canadian politicians are calling the delay (if it passes, I guess) a victory for Canada, but that's probably the wrong way to look at it. Free Trade and tourism kind of get shackled, so both countries stand to lose.

The Canadian government is looking for an alternative to the e-passport, including the North American biometric id card, dubbed the PASS card. This card would have an RFID tag to store personal and biometric data on the smart id card. This is suggested as an alternative to passports because the Canadian passport authority would not be able to handle the sudden demand for passports if the existing deadline is maintained.

Even if the delay goes through and the biometric card is used, it only applies to physical border crossings. Canadians and Americans landing in American airports will still have to produce one of the new e-passports. All of this is part of the WHTI (Western Hemisphere Travel Initiative), signed into being by President Bush a few years ago.  The US DHS has been testing RFID across the border since last year.

September 25, 2006

VeriChip VeriTrace RFID System

VeriChip's VeriTrace tracking system is now being used in the Florida Emergency Mortuary Operations Response System (FEMORS) as well as Hawaii's Dept. of Health. The VeriTrace system was used to help identify and track the bodies of victims after Hurrican Katrina. VeriTrace consists of implantable RFID tags, a Bluetooth-based wireless handheld reader, an RFID- and GPS-enabled Ricoh digital camera, and a web-enabled database for data and image collection. [More RFID via RFID Blog] I'll have to admit that it's quite a sophisticated system.

VeriChip has been a controversial company, promoting their implantable RFID chips for use in US soldiers, immigrants/ guest workers, and the chronically ill - basically, it appears, people who may feel they have little choice about being implanted. While there has been resistance to VeriChip and implantable RFID chips in general, the company is said to hold high favor with the Bush administration.