Close
  • Latest News
  • Artificial Intelligence
  • Video
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
Read Down
Sign in
Close
Welcome!Log into your account
Forgot your password?
Read Down
Password recovery
Recover your password
Close
Search
Logo
Logo
  • Latest News
  • Artificial Intelligence
  • Video
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
More
    Home Applications
    • Applications
    • IT Management

    RFIDs Vertical Buildup Reflects Industry Challenges

    Written by

    Jacqueline Emigh
    Published August 26, 2004
    Share
    Facebook
    Twitter
    Linkedin

      eWEEK content and product recommendations are editorially independent. We may make money when you click on links to our partners. Learn More.

      RFID is just about the opposite of a monolithic entity, analysts agree. Although still emerging, the wireless technology already means something very different in the auto industry than in, lets say, pharmaceuticals.

      As this verticalization syndrome takes greater hold, more partnership opportunities will start unfolding for service companies—but only if they have what it takes.

      In a report released earlier this week, ABI Research honed in on how large consultancies are starting to pick their shots when it comes to RFID (radio frequency identification) specialization. Accenture, for example, has targeted pharmaceuticals for starters, while Deloitte Touche Tohmatsu is centering around transportation.

      Beyond this particular research report, its quite clear that vertical specialization is also a hallmark of the supply chain, a closely associated but older technology discipline. Supply chain verticalization is typically attributed mainly to “business processes.”

      To make a long story short, you use different business processes if youre building a car than if youre filling a doctors prescription. The materials youre handling are different, and so are manufacturing, distribution, transportation and lots of other processes.

      But ABI analyst Erik Michielsen told eWEEK.com in an interview that in RFID, differences in business processes are compounded by yet another set of factors: technical implementation issues that can vary markedly from one industry to the next.

      /zimages/6/28571.gifClick here to read about a $65 million e-pharmacy that uses RFID.

      Other analysts tend to concur. Also this week, two analyst organizations–The Meta Group and IHL Consulting Group–each released reports suggesting that RFID is taking off much faster in the pharmaceutical field than in consumer goods.

      In another interview, IHL president and founder Greg Buzek drew further distinctions between types of consumer goods: packaged foods, fresh foods, HBAs (health and beauty aids) and clothing, to name a few.

      “I dont see item-level tagging on the food side as happening for years, if ever,” Buzek said. “The tags will be too easily defeated by [distortion of RF waves] from liquid condensation or metal.”

      /zimages/6/28571.gifRead more here about the technical and practical difficulties retailers face in trying to implement self-service checkout systems.

      In comparison, item-level tagging might give high-end clothing stores some real ROI (return on investment). “If youre paying 20 cents per tag, you wont get much of a payback out of attaching a tag to a Schick razor,” Buzek said.

      “But if you attach a tag to a $500 black, size 8 dress, and you cant find the dress, youll be able to immediately know that it was left in the dressing room, or it got hung on the wrong rack,” he said. Indeed, some high-end design shops such as Prada are already implementing item-level RFID tagging.

      Bruce Hudson, an analyst at META, mentioned a couple of other consultancies that, like Accenture, are pursuing the pharmaceuticals space: Capgemini and Acsis, a vendor that sells both products and services into pharmaceuticals and several other verticals.

      As further evidence of verticalization, Hudson pointed out that manufacturers in the auto industry are starting to use RFID for tagging not only the engine, but each and every auto part.

      Many supply chain consultants, in fact, are starting to leverage vertical-specific knowledge already gained on the supply chain side as they migrate across to RFID, ABIs Michielsen said.

      /zimages/6/28571.gifMore retailers are considering RFID mandates. Click here to read more.

      As examples, Michielsen cited IGS, Computer Sciences Corp. and Northrop Grumman, all of which have done a considerable amount of supply chain consulting for the U.S. Department of Defense.

      “The more comfortable you are within those vertical silos, the better positioned you are,” Michielsen said, adding that after figuring out how to climb a vertical silo, a service firm often spreads out into related silos.

      Is there room in RFID for smaller consultants, too? While analysts said yes, they added that smaller companies also must be able to offer customers a needed mix of RFID skill sets and “domain knowledge” about processes, cultures and players within specific verticals.

      Xterprise is one example of a smaller startup thats successfully making the jump into RFID. Right now, Xterprise is drawing on its consumer goods supply chain background in helping several consumer goods distributors to comply with Wal-Marts RFID mandate.

      Xterprise CEO Dean Frew said he takes issue with some analysts perception that RFID is getting a faster start in pharmaceuticals than in consumer goods. But Frew is indeed convinced that RFID verticalization is under way.

      “RFID is more than just a tool that sits on your toolbelt,” Frew told eWEEK.com. “RFID is all about the context in which its being delivered.”

      /zimages/6/28571.gifCheck out eWEEK.coms Supply Chain Management & Logistics Center for the latest news and analysis of enterprise supply chains.

      Jacqueline Emigh
      Jacqueline Emigh

      Get the Free Newsletter!

      Subscribe to Daily Tech Insider for top news, trends & analysis

      Get the Free Newsletter!

      Subscribe to Daily Tech Insider for top news, trends & analysis

      MOST POPULAR ARTICLES

      Artificial Intelligence

      9 Best AI 3D Generators You Need...

      Sam Rinko - June 25, 2024 0
      AI 3D Generators are powerful tools for many different industries. Discover the best AI 3D Generators, and learn which is best for your specific use case.
      Read more
      Cloud

      RingCentral Expands Its Collaboration Platform

      Zeus Kerravala - November 22, 2023 0
      RingCentral adds AI-enabled contact center and hybrid event products to its suite of collaboration services.
      Read more
      Artificial Intelligence

      8 Best AI Data Analytics Software &...

      Aminu Abdullahi - January 18, 2024 0
      Learn the top AI data analytics software to use. Compare AI data analytics solutions & features to make the best choice for your business.
      Read more
      Latest News

      Zeus Kerravala on Networking: Multicloud, 5G, and...

      James Maguire - December 16, 2022 0
      I spoke with Zeus Kerravala, industry analyst at ZK Research, about the rapid changes in enterprise networking, as tech advances and digital transformation prompt...
      Read more
      Video

      Datadog President Amit Agarwal on Trends in...

      James Maguire - November 11, 2022 0
      I spoke with Amit Agarwal, President of Datadog, about infrastructure observability, from current trends to key challenges to the future of this rapidly growing...
      Read more
      Logo

      eWeek has the latest technology news and analysis, buying guides, and product reviews for IT professionals and technology buyers. The site’s focus is on innovative solutions and covering in-depth technical content. eWeek stays on the cutting edge of technology news and IT trends through interviews and expert analysis. Gain insight from top innovators and thought leaders in the fields of IT, business, enterprise software, startups, and more.

      Facebook
      Linkedin
      RSS
      Twitter
      Youtube

      Advertisers

      Advertise with TechnologyAdvice on eWeek and our other IT-focused platforms.

      Advertise with Us

      Menu

      • About eWeek
      • Subscribe to our Newsletter
      • Latest News

      Our Brands

      • Privacy Policy
      • Terms
      • About
      • Contact
      • Advertise
      • Sitemap
      • California – Do Not Sell My Information

      Property of TechnologyAdvice.
      © 2024 TechnologyAdvice. All Rights Reserved

      Advertiser Disclosure: Some of the products that appear on this site are from companies from which TechnologyAdvice receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. TechnologyAdvice does not include all companies or all types of products available in the marketplace.

      ×