VDC Research: RFID, Barcode, Retail Automation & Self-Service Market Blog

Zebra's New MotionWorks Sports Solution Aims to Change the RTLS Game

Earlier this week Zebra Technologies announced the release of MotionWorks Sports Solution, a RTLS solution specifically designed for sports. Using ultra wide band (UWB) RTLS receivers placed around stadiums, active RFID tags are placed in players’ jerseys in order to keep accurate track of player movement within inches. This solution is able to provide objective data, such as speed, location and movement direction and process the data for tangible uses. MotionWorks promises to lead to not only a new age of advanced sports analytics, but also enhancements to broadcasts, player safety and a broad array of coaching benefits. It is also fun to think about how fantasy sports leagues (i.e., football) could forever be changed if this solution were to be widely deployed within a professional sport. Zebra has already had successfully implemented this solution with soccer and football teams, and strongly believes it can help teams, players and business partners in all sports. Game on!

 3M Narrows Passive UHF RFID Application Focus to AVI, EVR and ITS

In September of 2012, 3M acquired Federal Signals Technologies (FSTech) from Federal Signal Corporations. FSTech competed in electronic toll collection (ETC) and automatic vehicle identification (AVI) markets through its subsidiary Sirit, a passive UHF solutions provider specializing in readers. With the acquisition, 3M aimed to increase its overall RFID presence, augmenting its strong position in the high frequency (HF)-focused e-ID (i.e., e-passport) market. Sirit’s high-performance readers were also being used by customers in supply chain environments for work-in-process, asset management, item-level and other applications.

In a letter addressing 3M customers, the company announced the narrowing of their RFID practice to eliminate supply chain technology production and focus exclusively on parking and tolling applications in the transportation market, including Automated Vehicle Identification (AVI), Electronic Vehicle Registration (EVR), and Intelligent Transportation Systems (ITS) applications. Sirit, which leveraged reader technology from peers such as Motorola, was no longer a competitor in industrial sectors.  

The timing of this announcement was interesting because it was weeks before a patent lawsuit was settled between Neology (a subsidiary of SMARTRAC) and 3M over ISO 18000-6C technology made by Sirit (acquired by 3M as part of the September 2012 deal with FSTech). The settlement allows SMARTRAC, Neology, and 3M access to the others’ RFID technology in the transportation market and includes an undisclosed payment by 3M.

18000-6C technology is the hottest new technology in the automatic tolling and electronic vehicle registration (EVR) sectors because of its long range, lower costs and high performance versus alternative solutions. However, deployments to date have been largely limited to new installations where toll roads and existing infrastructure are not present (i.e., Brazil).

SML Group Acquires Software Provider Xterprise

Many experts in the RFID space have been expecting intense consolidation in the space for some time, but to no avail. We have seen pockets of activity over the years, but not enough to significantly impact the competitive landscape and value chain. In the past, I have referred to the RFID software space as one area where hardware manufacturers and solutions providers could augment and enhance their RFID offerings and value add to customers and partners, especially in key verticals.  It appears that SML Group, an apparel branding and packaging group based in China, agrees with me.

SML announced that they have acquired the majority share of Xterprise, an RFID software solution company based in Texas. Xterprise is an experienced leader in the RFID retail supply chain space, with American Apparel serving as a fully-deployed, standout item-level tagging customer. SML has left Xterprises’ operations completely intact, but will now offer Xterprises’ full suite of RFID Clarity solutions in addition to their current packages. Both companies seem excited about the new potential markets allowed by the merger. President of Xterprise, Dean Frew, stated, “We are thrilled to join the SML team and what that will mean to delivering impactful RFID Item-level solutions to customers around the globe.” This acquirement increases SML’s presence and power in the Americas, a key to their global expansion strategy (the majority of their customers are Asian based retail companies) and enables the company to deliver end-to-end solutions throughout the apparel supply chain from the point of manufacture to the retail store floor.  

Recap of VDC's AutoID Team's Q2 Blogs: Did You Miss Any?

If you missed any blog posts from Q2, here is a recap, including hyperlinks and core AutoID technology focus for each posting. 

A Preview of our Handheld Barcode Scanner Report

AutoID Focus: Barcode

The recent trends in the barcode industry continued in 2012. What is the state of the handheld barcode market? This article looks at the state of the barcode industry and provides insight into key trends and competitive dynamics for the handheld scanner market.

Cognex watching Microscan’s products like a “Hawk”; files IP infringement claim

AutoID Focus: Barcode

In April, Cognex filed a lawsuit against competitor Microscan’s Mobile Hawk product for patent infringement: Microscan is refuting the claim of infringement alleging it is original technology.   

How does Legislation Impact Barcode Technology Adoption?

AutoID Focus: Barcode 

Many governments have looked towards barcode technology to enhance traceability of highly counterfeited products (pharmaceuticals, food, etc.). Legislation usually takes time for implementation, however. How does legislation impact barcode adoption?  

Embedded Sensing & M2M Enable Advanced Efficient Agriculture with RFID

AutoID Focus: RFID

A new product from RFMicron, the Magnus chip, allows for upgrades in typical passive RFID technology. These upgrades enhance performance and adjust performance for given levels of moisture. One particular industry this could help is agriculture. Learn more by reading this post.

What is Shaking Up the Barcode Technology Market?

AutoID Focus: Barcode

2012 was interesting year for many markets, including the barcode market. Beyond economic stagnation and volatility, there are three other factors that contributed to the performance in the barcode technology market.

TEKLYNX International Partners with VDC Research on Recent Channel Leadership Workshops

AutoID Focus: Barcode

In mid May, TEKLYNX partnered with VDC, CEO Focus, and Felton Consulting, to present two separate channel leadership workshops. These workshops offered a valuable opportunity for executive-to-executive interactions. Well over 100 attendees participated in the two live events.

Is this the end of barcode labels as we know it?

AutoID Focus: Barcode

Many technologies are changing the traditional look of black and white barcodes. Two such relevant technologies are colored barcodes and watermarks (invisible barcodes). Do these technologies prove to be the demise for barcodes or are they merely complements?

The Power of Datalogic's Magellan 9800i - Now Available

AutoID Focus: Barcode

Growth in the barcode industry has continued, anchored by the need for camera based imagers. Datalogic, this June, released a game changer for the retail industry in the multi-plane camera based scanner-scale, the Magellan 9800i, specifically for checkout.

What You See is Just Not What You Eat Anymore

AutoID Focus: Barcode

In China, many wealthy people have looked towards international sources for their cuisine. Why? Because there have been several counterfeiting scandals over the past few years. Barcode and other AutoID technology can bring asset tracking capabilities to China.

VDC's AutoID & Data Capture Practice's Summer Intern Gets Enamored by RFID

AutoID Focus: RFID

Several factors of everyday life are often misunderstood or generally ignored. VDC’s AutoID & Data Capture Practice's summer intern’s baptism into the world of AutoID, especially RFID, was eye opening and empowering. 

The Magic of Macy’s Omni-Channel Retailing Strategy Becoming More Potent with RFID

AutoID Focus: RFID

Omni-channel retail is an ideal in which all channels of a retailer are seamlessly integrated such that information is shared in real time. Macy’s has implemented RFID at the item-level for apparel and moving toward tagging other items with the goal of enabling omni-channel retailing.

The RFID Application Invasion Marches on

AutoID Focus: RFID

Friedrich Dick (a German cutlery company), Fleye (an action sports filming company), and the government of Taipei are all using RFID in creative ways. As RFID becomes more affordable and accessible, a higher number of companies and organizations are looking to implement RFID as solutions.

DC Velocity Talks Item-Level RFID and Distribution Centers with VDC’s Mike Liard

AutoID Focus: RFID

DC Velocity magazine sought thought leadership from several RFID experts on the impact that item-level RFID tagging will have on distribution centers. Mike Liard, of VDC, helped DC Velocity on both an article and a webcast concerning this issue.

DC Velocity Talks Item-Level RFID and Distribution Centers with VDC’s Mike Liard

More and more companies are turning to item-level RFID tagging to boost inventory accuracy throughout the supply chain. So, DC VELOCITY magazine asks: How will this affect distribution centers? To find out, Susan Lacefield, Associate Managing Editor of the publication, sought insights from industry experts.

To support an article published on May 14^th, Susan conducted interviews with me and others such as Avery Dennison’s Mark Hill and Intermec’s Kurt Mensch and Bruce Stubbs to discuss the progression of RFID at the item-level and the technology’s impact on distribution centers. She produced an excellent piece for DC VELOCITY and her interest in the topic was evident when we spoke.

In fact, Susan wanted to provide DC VELOCITY’s readership and audience with a deeper analysis of the subject, so she asked me to participate in a webcast to discuss how DCs can take advantage of RFID. Susan moderated a webcast on June 27^th, asking me a series of questions focused on item-level tagging and the current and future role of RFID in distribution center operations.  We had approximately 50 people attend the 45-minute webcast, with many attendees submitting questions that I was able to address at the end.

I would like to personally thank Susan Lacefield and DC VELOCITY for asking me to participate in the article and webcast.  I believe that as RFID adoption at the item level increases within the retail sector, it is critical to provide more education and awareness of the technology’s influence on supply chain and distribution center operations. Based on her great article and our webcast, I think Susan agrees.   

The RFID Application Invasion Marches On

The potential uses of RFID are limitless. As prices of RFID tags and readers decrease, some RFID applications continue to strengthen this view of boundlessness. Perusing through articles of recent RFID deployments, three stood out for their creativity: Taipei’s use of RFID to rid the streets of manhole covers; Fleye’s use of RFID to capture extreme sports video footage; and Friedrich Dick’s Knifeinspector solution to track and manage knives and other meat cutting equipment while enabling worker accountability and compliance with hygienic standards.

RFID Has Got You Covered

Motorized scooters are a widely used means of transportation in Taipei, Taiwan. In order to protect the riders of motorized scooters, other vehicles and bicycles, Taipei has undergone a massive project to replace all metal manhole covers with driver-friendly concrete slabs. A key component to this project is the ability to locate the concrete slabs when access is needed. To solve this problem Taipei looked to RFID. Using passive Ultra High Frequency (UHF) RFID tags and handheld readers, Taipei has devised a plan to be able to find these slabs when needed and protect the safety of the public.  So far, approximately 35,000 of Taipei's 175,000 manholes now have buried RFID-enabled covers.  The major challenge from a performance perspective has been the weather whereas reading tags on rainy days, when the road surface is wet, has proven difficult. As a result, workers typically do so only on dry days. While much progress has been made since 2009 when the program formally launched, we expect the road ahead for nation-wide deployment of this solution will be long (pun intended)

RFID Puts Sports in Motion

Many ski resorts, and action sports facilities, have mechanisms to take pictures of guests mid activity. Cam Miner, founder of Fleye, was not satisfied with simple still images. Miner established Fleye in order to provide action sports athletes the ability to view footage of their performances. In order to accomplish such a difficult task Miner looked to RFID. Using RFID-enabled wristbands for athletes (the type of RFID used depends on the necessary read range for the sport) the participants can tap wristbands on conveniently located readers to trigger motion activated cameras to begin filming. The footage is then sent, via Wi-Fi or Ethernet connectivity, to Fleye’s database and then is uploaded to Fleye’s website where users can view footage of themselves. Sports are not the only target of this solution as amusement parks, concerts and other participatory events are being targeted.  In a connected world supported by the rise social media and networking, RFID is gaining traction.  Additionally, Fleye is attempting to develop relationships with potential content sponsors, such as energy drink and automotive companies, camera equipment providers or other firms whose brand could be advertised using the video solution.

RFID Cuts through Knife Hygiene and Asset Visibility Issues for Meat Processors  

Many professional kitchens and processing plants have hundreds of knives and dozens of employees. The high throughput of the kitchen area leads to a high possibility of cross-contamination, a potentially life-threatening problem. In addition, the knives and cutting devices must be frequently replaced and sharpened daily. German cutlery manufacturer Friedrich Dick developed a solution, known as Knifeinspector, to solve the hygienic concern as well as asset and process management challenge.  Knifeinspector, using passive RFID, assigns each employee to a knife. Each time an employee enters a new area they must scan their knife to readers: the employee is only allowed into the area if the knife is registered clean in the system. The system is scalable and can support multiple applications and value propositions. Dick is integrating RFID tags in a wide range of the company's meat-processing products, including boning knives, sharpening steels, sharpening devices, chain-mail gloves and knife baskets. The system has yet to be fully deployed, but the installation has begun at a large meat processing plant in Germany. 

(A special thank you to Nicholas Reposa for his significant contributions to this posting. Mr. Reposa is currently a Researcher in VDC’s AutoID & Data Capture practice.)

The Magic of Macy’s Omni-Channel Retailing Strategy Becoming More Potent with RFID

In the world we live in today, having options is everything. When someone mulls over a purchase, two common considerations are: when do I need this by and where can I get it? In this day and age, if the answer to the former is “not for some time,” then online research or purchases are common.  If, however, the answer is “as soon as possible” or “tomorrow,” brick-and-mortar stores are still the choice. Either answer prompts the significant follow up question, “where can I make my purchase?” Research, typically online or in a catalog, occurs until the informed consumer finds the product he or she wants.

So, what if the consumer needs her product immediately and recognizes the product is on a retailer’s website and she heads to the store only to discover it to be out-of-stock? Is there an in-store kiosk available from which a shopper can order the product from another store and have it deliver to her local store or doorstep? In addition, consumers are increasingly “buying with a click” or simply buying on a whim; therefore, retailers need a strong online and mobile presence to service these consumers, especially in today’s connected world. By not having inventory available in store or affording customers alternative purchasing option, a retailer may not only miss out on a sale, but may also endanger that customer’s loyalty or brand perception.

How are retailers able to avoid lost sales, disappointed customers or diminished loyalty? The answer is omni-channel retailing. Omni-channel retail is a concept of interconnectedness. A retailer needs to combine all the heterogeneous parts of the supply chain, into one smooth, completely connected framework.  Put another way, omni-channel retailing means connected customers can shop for and purchase the same items across many channels.

Many retailers have embraced omni-channel retailing and its advantages, but unlike most other retailers, Macy’s has a not-so-secret weapon in RFID technology which affords more accurate, real-time inventory visibility. As highlighted during its recent investor meeting, Macy’s is enhancing its omni-channel retail strategy by broadening its overall RFID strategy. While the technology is already deployed in US stores (select apparel items and display shoes are tagged), the company is expanding store-based fulfillment to 500 locations and working with 50% of its suppliers to stock RFID-tagged goods for improved inventory counts.

RFID tagging has been so successful that Macy’s CEO Terry Lundgren expects it to reduce the need for distribution centers whereas stores will serve as distribution centers and closest-to-the-customer fulfillment locations.  RFID will play an essential role in achieving the vision of omni-channel retail by ensuring that merchandise is replenished in a timely manner and regular automated cycle counts on inventory are enabled. VDC believes item-level RFID will continue to elevate and evolve the omni-channel retail concept and the technology will play a transformational role in the omni-channel retailing experience.

(A special thank you to Nicholas Reposa for his significant contributions to this posting. Mr. Reposa is currently a Researcher in VDC’s AutoID & Data Capture practice.)

VDC's AutoID & Data Capture Practice's Summer Intern Gets Enamored by RFID

As my academic year was coming to close at Boston College this spring, I began to look for a summer internship focused on technology market research and consulting. After noticing a posting by VDC Research that had these keywords, I eagerly applied.  Eager to impress in my interview with the VP of AutoID & Data Capture, I ventured towards Wikipedia to help me understand what AIDC meant and what I was getting myself into. I was instantly overwhelmed by all the acronyms appearing on the page: I thought, what are RFID, RTLS, NFC, 2D, etc.?  So, I read and prepared for the interview. I secured the internship and was eager to start.

I headed into my first day thinking about all of the technologies to which I would be exposed. After all, AutoID & Data Capture encompasses many disparate technologies.  I received a crash course in AutoID from the practice’s VP. But, after the first day, I was immediately intrigued by RFID. I went home to my roommates that night and explained to them how their EZ-Passes and Charlie Cards worked. I felt enlightened understanding this technology and the applications it enables – many of which I’ve taken for granted for so long in my day-to-day life.

Having worked for VDC for nearly a month now, I’m enamored by the world of RFID. The numerous, often innovative applications of RFID, ranging from enabling automatic filming of action sports, to enabling self-serve beer and wine taps, and even the creation of “Real World Mario Kart”, make RFID technology compelling. Now I find myself going on Facebook just so that I can post cool articles about RFID on my friends’ walls. A multitude of exciting uses, combined with the cost saving benefits and value propositions RFID offers to many industries, will keep me intrigued by RFID for some time.   

(This blog post was written by Nicholas Reposa. He is currently a Researcher in VDC’s AutoID & Data Capture practice.)

TEKLYNX International Partners with VDC Research on Recent Channel Leadership Workshops

TEKLYNX International recently conducted two live exclusive workshops for resellers, partnering
with VDC Research Group, CEO Focus and Felton Consulting for the events. The virtual workshops were designed for executive-to-executive dialogue on topics to help better position TEKLYNX’s reseller partners and their AIDC business for continued growth and success. These workshops also served as a fitting platform for TEKLYNX to unveil its new Strategic Partner Program.

Thefirst live “Channel Leadership: Fast Lane to Success” workshop was held Thursday, May 16^th and drewover 85 attendees. It was an outstanding turnout and a highly successful event.  And, due to a high level of demand, TEKLYNX invested in a second workshop that took place Wednesday, May 22^nd that netted roughly 40 attendees.    

Through the workshop attendees engaged in discussions around:

- The past, present and future of the AIDC industry – to ensure attendees’ businesses align with future AIDC customer/user trends to avoid falling behind.

- Best-in-class business strategies and processes.

- Tools to leverage to grow, track and manage resellers’ businesses.

- Tips to stay competitive and relevant through the right product mix, competencies and partners.

VDC Research was very excited to be a part of this workshop to discuss how the AIDC market has evolved in terms of product development as well as end user adoption and reseller evolution. First, VDC took a look at end user AIDC product adoption trends. We then walked attendees through reseller trends and market dynamics – past, present and future.

During the workshops, the best way for us to depict the evolution of the AIDC market was through a bell curve, starting with the early innovators and moving through to new innovation. In the book Crossing the Chasm, the author proposes a “Technology Adoption Lifecycle,” represented by a bell-shaped curve which describes the chronology of when companies adopt technologies. Our curve was an adaptation and was shaped to reflect key points in time against user demand and end user classification types spanning the innovators in the 1970s through various end user adoption groups to the new innovation or innovators being seen today and in the future. We repeated the bell curve exercise for the reseller community, highlighting key moments in the storied history of AIDC.

The importance was to communicate how end user needs have changed with their demand over time and how those needs have impacted AIDC market and solution development, especially among the reseller community.   

Attendee feedback was extremely positive and stellar questions were posed throughout the workshops.

A special thank you to Laura Henderson, General Manager at TEKLYNX, and her highly dedicated team for inviting VDC Research to participate in and contribute to both workshops.

If you were unable to attend either workshop, please contact the TEKLYNX Partner Manager at 414-837-4768 for more information.

Embedded Sensing & M2M Enable Advanced Efficient Agriculture with RFID

The VDC team received a very interesting briefing from RFMicron (Austin, Texas) on an IC component aimed at solving a problem seen with passive RFID tags. In addition to increasing the performance of the RFID tag, the new chip (called Magnus) actually allows the tag to perform additional functions and, as a result, we believe that this product has many potential M2M applications.

Here is a bit of background. Passive RFID tags do not contain any power source of their own. When stimulated by the correct RF signal, they chirp back data that is stored on or measured by the tag at that moment. Because a passive RFID tag is essentially using the received energy to transmit the return signal the tuning between the tag electronics and antenna have to be near perfect. One thing that can interfere with a passive RFID tag’s performance is moisture. The new Magnus chip enables the passive RFID tag to adjust for moisture to maintain optimal operation. That, by itself, is significant because it allows objects that are in sub-optimal conditions (e.g. wet) to be monitored wirelessly at greater distances. As a result M2M applications could be deployed over extremely long periods of time without needing any power source on the individual assets. What made this new component really interesting is that moisture data from the component could be transmitted by the tag along with the stored ID number. In our opinion, passive RFID tags with this component could be a key piece in an M2M optimized agricultural operation. Here is how it would work:

VDC’s View of M2M Enabled Agriculture using Passive RFID Moisture Detection

1.)    During planting process, the farm equipment inserts the RFID tags at given intervals along with the seeds. The embedded computer on the farm equipment logs and transmits the tag’s ID number and GPS location data to the cloud.

2.)    As farm equipment pass over the fields, the RFID reader scans the sensors and the embedded computer collects the data. This allows for the creation of a economical irrigation plan. VDC pictures this as being similar to ink-jet printers in precision as opposed to pumping water and spraying for fixed intervals.

3.)    Data from the moisture sensors can be retained in the cloud to confirm that optimal irrigation was maintained.

4.)    At harvest time, data on crop yields and quality are collected and sent to the cloud.

5.)    The cloud stored data can be used for many purposes that benefit several agricultural stakeholders including:

• The farmer can optimize future crops from the lessons learned from the current one.
• The aggregated data on crop yields can be sold to the investment community for analysis and pricing of agriculture-based financial instruments.
• In the event of a crop failure, the insurance industry can verify that the farmer had followed reasonable practices before making the payout.

6.)    At the end of the process, the farmer tills over the field without having to worry about recovering sensors or their connectivity infrastructure.

What happens to the RFID tags after that?  We have to assume that most of the tags would survive for several years but they would no longer have precise location or soil depth. Although, it is possible that the tags could be recovered for future use, the cost of doing so would likely exceed their cost of approximately $1 per unit. In future growing seasons, any data received from RFID tags deployed with earlier crops would be ignored.

The connected-farm is only one of many possible M2M applications for passive RFID sensor tags. For example, the moisture detecting RFID tags could be installed inside tanks at regular intervals to detect liquid levels.  Other physical properties such as pressure or temperature could be included to increase functionality. The M2M possibilities are endless.

The AutoID & Data Capture team would like to thank David Laing from VDC's Embedded Hardware team for authoring this blog post.