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Nov/Dec 2006

Nov/Dec 2006

"Future Hot Technologies"


 
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Using Sensor-Based Networks to Manage and Track Assets and Supply Chains

By Eric Shepcaro

It's not probable that irreplaceable documents and artifacts could simply vanish. Or maybe it is.

According to NASA, that's what happened to 700 priceless archival boxes that included items from the Apollo lunar missions and man's first moonwalk. Sometime between the 1970s and 2006, they disappeared without a trace.

With billions of items transferred daily, stories like this are surprisingly common. Improving supply chain management and efficiency are therefore priorities for many organizations.

Networking technologies are poised to deliver dramatic improvements. Radio Frequency Identification (RFID) lets businesses and government agencies track the whereabouts of documents and other assets, increases supply chain visibility, better manages inventory, and enhances cargo security. As networks migrate to Internet Protocol (IP) platforms, physical objects will be networked and better managed.

The two greatest challenges to RFID readiness and deployment have primarily been:

  • Lack of trusted end-to-end, fully tested and working solutions; and
  • Storage and protection of increased data generated by RFID in the network

These concerns are fading fast.

Service providers and manufacturers are bringing to market scalable solutions that provide real opportunities for industries from aerospace to finance to utilities. At the same time, IP-enabled devices are quickly emerging, allowing users to leverage investments in wired and wireless IP networks. As these devices move into the mainstream, the potential of RFID will become reality.

RFID transactions, by sheer scale alone, could alter the design of future IP networks. In fact, Forrester Research has noted that sensors and appliances will overtake client computer numbers by 2008.

Additionally, hosted utility solutions have simultaneously enabled greater, more secure storage of data. Businesses without the capability or desire to maintain the massive storage requirements of RFID transactions will have affordable, quality hosted solutions available to them. Broad availability of pay-per-use hosted solutions on the horizon further expands the opportunity to manage RFID networking.

RFID offers new personalization and security opportunities in the financial industry, such as:

  • Tracking and staging financial instruments to allow faster counting and real-time reporting of location
  • Tagging of ATM cards of high-value clients to allow personal greetings or customization each time they enter a local office or branch
  • Ability to use ATM, debit or charge cards for mobile payments
  • Earlier identification and discovery of stolen cards

Additionally, RFID presents opportunities to better manage assets in a crisis. Product recalls today greatly depend on the ability of companies to reach end users through media announcements or outreach to customer lists generated by voluntary user registration. RFID helps a business to locate a particular batch of its product manufactured on a specific date in an individual factory. With information about where a product is at any given moment - on a freighter, in a distribution center or on grocery shelves in two states - the ability to target recall communications becomes more precise, more accurate and less risky to the company and consumer.

With all these applications, RFID represents a potentially massive global market. In fact, IDC has noted the RFID and related services market is growing at 38 percent annually and is expected to reach $2 billion by 2008.

Clearly RFID presents great opportunity for businesses, network companies, and service providers alike.

Eric Shepcaro is senior vice president - Business Development, AT&T, Inc. and oversees the RFID trials underway at AT&T (www.business.att.com). For more information, please contact Anthony Ferrera at 908-234-3382 or via email at aferrera@att.com.



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