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Insider's BLOG from the RFID Experts

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The hidden costs of RFID software

  
  
  
  

The easily identifiable costs of an RFID deployment are the hardware and software elements – namely, the RFID readers, antennas, portals, tags, RFID middleware and RFID edgeware. However, a savvy end user will pay close attention to the hidden costs of RFID integration too.

Integration encompasses physical integration of the readpoints and portals to the existing workflows and environments, network integration of the RFID devices with the existing infrastructure, the RFID data integration with enterprise systems such as execution systems, ERP systems, EAI platforms and other business applications, and co-existence of RFID devices with the existing RF systems in the facility. The RFID readpoints and portals should be installed such that they are seamless to the movement of people and tracked objects and adhere to the constraints imposed by the customer policies.

For example, hospitals are extremely sensitive to dust containment and any obstructions to flow of the patients and clinical team. Likewise, the tagging process (commissioning and decommissioning) of tracked objects needs to be as painless as possible. Think about when a patient gets discharged from a hospital, there should be no additional workflows required to retrieving the tag from the patient this is one additoanl cost not often factored in - either the process of gettting tags back or the cost of a tag leaving (especially if it is a $60-70 active tag!).

The RFID devices have to coexist with other network attached devices, be deployed and configured in a plug-and-play manner, and be managed as any other network devices familiar to the IT team. The overall solution needs to be flexible such it can adapt to the available bandwidth and connectivity of the link from RFID devices to the network. For example, again think about in a hospital, the RFID devices would need to be a good network citizen when they are on the WiFi to relay the tag data events – use the network sparingly only when necessary. The RFID data typically gets synthesized with other business data and logic in the software system that in turn control and operate local ancillary devices such as audio/visual alarm indicators, doors, conveyors, diverters etc. This requires integration with backend application systems and also integration with other software systems such as building access control, etc. Examples of such integration include protecting flight-risk patients in a hospital, routing baggages on airport conveyor belts, etc. Many people end up having to upgrade a WiFi network with an RFID deployment - another hidden cost.

Interestingly enough, the integration costs can quickly become the dominant cost both in terms of dollars and resources if the system hardware and software solutions are not designed properly and the project not managed professionally. And more importantly, the integration if not done properly can manifest in higher operational costs and ultimately making the system unusable.

Keep in mind, one of the important goals of the overall RFID solution has to be to simplify and streamline the integration of the RFID acquisition systems with the existing infrastructure, processes and applications – thus resulting in a robust, manageable production-scale deployment with compelling value propositions across a broad range of verticals and processes. Looking for other folks who have had expereince or reading online case studies will help you avoid some of the hidden costs and plan to win!

http://odintechnologies.com/rfid-software-easytaphttp://odintechnologies.com/rfid-software-easytap

Comments

RFID as a technology offers many promising benefits. Unfortunately, it is being held hostage by the existing business systems to which you suggest integration. These systems lack the ability to make use of the data in a meaningful way (no serialized inventory tracking at a carton, let alone each level). To my estimates, RFID could help a CPG company save over $2.31 per case if utilized throughout the lifecycle of the product v. tagged and shipped at the end. So all they can see is a cost....the benefit to them is blocked. 
 
 
 
Integration is a huge expense AND risk that most companies will avoid like the plague. The fact that the existing business systems (ERP, Best of Breed, etc.) don't track inventory at the appropriate level doesn't have to be an impediment any longer. Solutions exist that can insulate the ERP/BoB from the data shock yet still provide the benefits to the customer. Then the cost of RFID comes down even more as the integration costs (easily 7 - 8 times that of the "hardware) are mitigated and the disruption to business is eliminated. 
 
 
 
It is unfortunate that it has taken so many years for RFID to achieve its current level. With new solutions the speed of adoption and use may finally accelerate and achieve the vision everyone pursued so hard in the early part of this century.
Posted @ Wednesday, January 05, 2011 10:58 AM by Steve Christensen
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